0001964333-24-000079 | 10-K | XBRL Viewer | Burke Herbert Financial Services Corp

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Defined Benefit Pension Plan - Schedule of Plan’s Status and Related Disclosures (Details) - Pension Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Changes in benefit obligation:
Benefit obligation at beginning of year	$ 30,225	$ 42,297
Service cost	469	786	$ 998
Interest cost	1,471	1,141	1,042
Actuarial (gain) loss	775	(12,549)
Distributions	(1,440)	(1,450)
Benefit obligation at end of year	31,500	30,225	42,297
Change in plan assets:
Fair value of plan assets at beginning of year	31,968	46,017
Actual return on plan assets	2,653	(12,599)
Employer contribution	0	0
Distributions	(1,440)	(1,450)
Fair value of plan assets at end of year	33,181	31,968	46,017
Funded status recognized as accrued pension cost	1,681	1,743
Amounts recognized in accumulated other comprehensive (income) loss:
Net loss	7,273	8,901
Deferred income tax benefit	(1,527)	(1,869)
Total amount recognized	5,746	7,032
Accumulated benefit obligation	29,372	28,184
Revision of Prior Period, Adjustment
Change in plan assets:
Fair value of plan assets at beginning of year	$ 0	0
Fair value of plan assets at end of year		$ 0	$ 0

Leased Property - Schedule of Components of Total Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Finance lease cost
Right-of-use asset amortization	$ 244	$ 204	$ 207
Interest expense	86	63	39
Operating lease cost	3,210	2,495	2,517
Total lease cost	$ 3,540	$ 2,762	$ 2,763

Parent Company Financial Information - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets
Other assets	$ 83,544	$ 97,083
Total Assets	3,617,579	3,562,898
Liabilities
Total Liabilities	3,302,829	3,289,445
Total Shareholders' Equity	314,750	273,453	$ 389,627	$ 384,877
Total Liabilities and Shareholders' Equity	3,617,579	3,562,898
Burke & Herbert Financial Services Corp.
Assets
Cash	284	2,000
Investment in subsidiary	313,364	271,757
Other assets	1,653	209
Total Assets	315,301	273,966
Liabilities
Other Liabilities	551	513
Total Liabilities	551	513
Total Shareholders' Equity	314,750	273,453
Total Liabilities and Shareholders' Equity	$ 315,301	$ 273,966

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

The components of applicable income tax expense (benefit) for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, were as follows (in thousands):


	2023		2022		2021
Current Expense:
Federal	$	3,592	$	5,501	$	5,564
State	230		1,388		372
	$	3,822	$	6,889	$	5,936

Deferred Expense:
Federal	$	(1,422)	$	1,318	$	(1,401)
State	(31)		79		(258)
	$	(1,453)	$	1,397	$	(1,659)

Total	$	2,369	$	8,286	$	4,277

Deferred income taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and net operating losses and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and net operating loss carry-forwards and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deferred tax assets.

The Company follows accounting guidance related to accounting for uncertainty in income taxes. Under the “more likely than not” threshold guidelines, the Company’s uncertain tax position reserve was $167 thousand and $291 thousand as of December 31, 2023, and December 31, 2022, respectively. The Company’s policy is to account for interest and penalties as a component of income tax expense. The Company is no longer subject to examination by federal, state, and local taxing authorities for years before January 1, 2020.

The following reconciles the amount of reported income tax expense in the financial statements to taxes that would be computed by applying the federal statutory tax rates to income before taxes (in thousands):


	2023		2022		2021
Expected taxes using statutory rates	$	5,263	$	10,983	$	8,493
Benefit of tax-exempt municipal interest income, net of non-deductible interest	(363)		(1,694)		(1,993)
Nontaxable income from company-owned life insurance	(604)		(570)		(502)
Low income tax credits, net of amortization	(1,840)		(1,840)		(1,843)
State taxes, net of federal benefit	157		1,159		294
Merger-related	382		—		—
Other adjustment, net	(626)		248		(172)
Total	$	2,369	$	8,286	$	4,277

Deferred income taxes reflect the impact of “temporary differences” between amounts of assets and liabilities for financial reporting purposes and such amounts as measured for tax purposes. Deferred tax assets and liabilities represent the future tax return consequences of temporary differences, which will either be taxable or deductible when the related assets and liabilities are recovered or settled.

The net deferred tax amounts in the accompanying Consolidated Balance Sheets include the following components (in thousands):


	2023		2022
Deferred tax assets:
Provision for credit losses	$	5,600	$	4,597
Lease liability	2,008		2,259
Compensation and other accruals	2,011		1,847
Partnership investments	2,264		1,982
Unrealized losses on securities available-for-sale	26,069		34,789
Tax credit carryforward	8,690		7,634
Unrealized losses on interest rate swaps	—		422
Total deferred tax asset	$	46,642	$	53,530

Deferred tax liabilities:
Tax over book depreciation	$	(2,073)	$	(1,618)
Pension accrual	(434)		(456)
Unrealized gains on interest rate swaps	(85)		—
Right of use asset	(1,906)		(2,158)
Total deferred tax liability	$	(4,498)	$	(4,232)

Net deferred tax asset	$	42,144	$	49,298

- 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.

+ References

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+ Details

Allowance for Credit Losses - Schedule of Activity in the ACL, Including the Impact of the Adoption of CECL (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	$ 21,039	$ 31,709	$ 32,697
Provision for (recapture of) credit losses	235	(7,466)	(1,002)
Charge-offs	(194)	(3,450)	(242)
Recoveries	96	246	256
Balance, end of period	25,301	21,039	31,709
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	4,125
Balance, end of period		4,125
Commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	15,477	25,112	23,356
Provision for (recapture of) credit losses	2,432	(6,391)	1,870
Charge-offs	0	(3,282)	(127)
Recoveries	38	38	13
Balance, end of period	20,633	15,477	25,112
Commercial real estate \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	2,686
Balance, end of period		2,686
Owner-occupied commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	635	611	1,196
Provision for (recapture of) credit losses	154	24	(602)
Charge-offs	0	0	0
Recoveries	0	0	17
Balance, end of period	783	635	611
Owner-occupied commercial real estate \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	(6)
Balance, end of period		(6)
Acquisition, construction & development
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	2,082	2,189	3,075
Provision for (recapture of) credit losses	(1,074)	(107)	(886)
Charge-offs	0	0	0
Recoveries	0	0	0
Balance, end of period	368	2,082	2,189
Acquisition, construction & development \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	(640)
Balance, end of period		(640)
Commercial & industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	438	165	73
Provision for (recapture of) credit losses	(1)	293	72
Charge-offs	(29)	(20)	0
Recoveries	0	0	20
Balance, end of period	645	438	165
Commercial & industrial \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	237
Balance, end of period		237
Single family residential
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	2,379	2,434	3,757
Provision for (recapture of) credit losses	(1,295)	(239)	(1,490)
Charge-offs	0	0	(16)
Recoveries	52	184	183
Balance, end of period	2,797	2,379	2,434
Single family residential \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	1,661
Balance, end of period		1,661
Consumer non-real estate and other
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	28	18	60
Provision for (recapture of) credit losses	19	134	34
Charge-offs	(165)	(148)	(99)
Recoveries	6	24	23
Balance, end of period	75	28	18
Consumer non-real estate and other \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	187
Balance, end of period		187
Unallocated
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	0	1,180	1,180
Provision for (recapture of) credit losses	0	(1,180)	0
Charge-offs	0	0	0
Recoveries	0	0	0
Balance, end of period	0	0	$ 1,180
Unallocated \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance, prior to adoption of CECL	$ 0
Balance, end of period		$ 0

Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. ASC 606 is applicable to non-interest revenue streams, such as trust and wealth management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions.

The following table presents the components of non-interest income for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 (in thousands):


	2023		2022		2021
Service charges and fees(1)
Debit card fees	$	4,175	$	4,454	$	4,413
Deposit related fees	2,409		2,308		1,792
Other fees	86		93		123
Fiduciary and wealth management(1)
Trust fees	3,074		3,176		3,297
Advisory fees	1,866		1,575		1,342
Other fees	414		558		523
Net gains (losses) on securities(2)	(112)		(454)		(4)
Income from life insurance(2)	2,844		2,656		2,325
Other non-interest income(1)
FHLB dividend(2)	643		484		409
Merchant & credit card fees	748		801		730
Safety deposit fees	359		394		411
Servicing release premium	138		58		1,303
Wire fees	350		358		372
Customer loan swap fees	414		—		—
Other non-interest(3)	544		626		215
Total non-interest income	$	17,952	$	17,087	$	17,251

__________________

(1)Income within the scope of ASC 606 - Revenue Recognition

(2)Income excluded from the scope of ASC 606 - Revenue Recognition

(3)Includes income that arises from the Company electing the FVO as stated that is not within the scope of ASC 606.

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

Income from fiduciary & wealth management activities

Fiduciary and wealth management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied at a point in time (i.e., as incurred), and that allows the Company to recognize the related revenue associated with that transaction. Payment is received shortly after services are rendered.

Annuity and insurance income primarily consists of commissions received on annuity product sales. The Company acts as an intermediary between the Company’s customer and the insurance carrier. The Company’s performance obligation is generally satisfied upon the issuance of the annuity policy. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. The Company does not earn a significant amount of trailer fees on annuity sales. The majority of the trailer fees relates to variable annuity products and are calculated based on a percentage of market value at period end. Revenue is not recognized until the annuity’s market value can be determined.

Other non-interest income consists of other recurring revenue streams, such as commissions from sales of mutual funds and other investments, investment advisor fees from the Company’s wealth management product,

safety deposit box rental fees, and other miscellaneous revenue streams. Commissions from the sale of mutual funds and other investments are payable on the trade date and are received in the following month, which is when the Company has satisfied its performance obligation. The Company also receives periodic service fees (i.e., trailers) from mutual fund companies typically based on a percentage of net asset value. Trailer revenue is recorded over time, usually monthly or quarterly, as net asset value is determined. Investment advisor fees from the wealth management product are earned over time and based on an annual percentage rate of the net asset value. The investment advisor fees are charged to the customer’s account in advance on the first month of the quarter, and the revenue is recognized over the following three-month period.

Service charges and fees

Service charges and fees on deposit accounts consist of monthly service fees, check orders, and other deposit account related fees. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied at a point in time, and the related revenue recognized. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.

Debit card fees and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. Merchant services income mainly consists of fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation is largely satisfied, and the related revenue is recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.

Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation.

- 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
-Topic 606
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+ Details

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	173
Auditor Name	Crowe LLP
Auditor Location	Washington, D.C.

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net Income	$ 22,692	$ 44,013	$ 36,165
Unrealized gains (losses) on securities:
Unrealized gain (loss) arising during period, net of tax of $(8,697) for 2023, $38,333 for 2022, and $4,236 for 2021	32,718	(144,209)	(15,933)
Reclassification adjustment for loss (gain) on securities, net of tax of $(24) for 2023, $(95) for 2022, and ($1) for 2021	88	359	3
Reclassification adjustment for loss (gain) on fair value hedge, net of tax of $(215) for 2023, $— for 2022, and $— for 2021	810	0	0
Defined benefit pension plans:
Changes in pension plan benefits, net of tax of $(342) for 2023, $263 for 2022, and ($81) for 2021	1,286	(1,011)	305
Unrealized gain (loss) on cash flow hedge
Unrealized holding gain (loss) on cash flow hedge, net of tax of $75 for 2023, $457 for 2022, and $— for 2021	(283)	(1,721)	0
Reclassification adjustment for losses (gains) included in net income, net of tax of ($367) for 2023, $(35) for 2022, and $— for 2021	1,382	132	0
Total other comprehensive income (loss)	36,001	(146,450)	(15,625)
Comprehensive income (loss)	$ 58,693	$ (102,437)	$ 20,540

Leased Property (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of Components of Lease Income

The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the year ending (in thousands):


	2023		2022		2021
Operating lease income	$	2,301	$	1,309	$	181
Total lease income	$	2,301	$	1,309	$	181

Schedule of Maturities of Operating Lease Receivables

The remaining maturities of operating lease receivables as of December 31, 2023, are as follows (in thousands):


	Operating Leases
2024	$	2,302
2025	2,265
2026	1,657
2027	1,356
2028	1,333
Thereafter	2,450
Total lease receivables	$	11,363

Schedule of Right-of-Use Assets and Liabilities by Lease Type

Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands):


	Balance Sheet Classification	2023		2022
Right-of-use assets:
Operating leases	Other assets	$	5,110	$	7,255
Finance leases	Other assets	3,590		2,620
Total right-of-use assets		$	8,700	$	9,875
Lease liabilities:
Operating leases	Other liabilities	$	5,327	$	7,592
Finance Leases	Other liabilities	3,840		2,745
Total lease liabilities		$	9,167	$	10,337

Schedule of Components of Total Lease Cost and Additional Information on Leases

The components of total lease cost were as follows for the period ending (in thousands):


	2023		2022		2021
Finance lease cost
Right-of-use asset amortization	$	244	$	204	$	207
Interest expense	86		63		39
Operating lease cost	3,210		2,495		2,517
Total lease cost	$	3,540	$	2,762	$	2,763

The following table presents additional information about the Company’s leases as of December 31, 2023, and December 31, 2022.


Supplemental lease information (dollars in thousands)	2023			2022
Finance lease weighted average remaining lease term (years)	12.66			12.76
Finance lease weighted average discount rate	2.96		%	2.22		%
Operating lease weighted average remaining lease term (years)	3.71			3.26
Operating lease weighted average discount rate	3.33		%	3.19		%

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,330		$	2,557
Operating cash flows from finance leases	86			63
Financing cash flows from finance leases	119			152
Right-of-use assets obtained in exchange for new finance lease liabilities	1,214			—
Right-of-use assets obtained in exchange for new operating lease liabilities	—			1,558

Schedule of Undiscounted Lease Payments for Finance Leases

The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2023, are as follows (in thousands):


	Operating Leases		Finance Leases
2024	$	2,418	$	327
2025	1,075		334
2026	622		341
2027	572		347
2028	548		354
Thereafter	475		2,993
Total undiscounted lease payments	5,710		4,696
Less: discount	(383)		(856)
Net lease liabilities	$	5,327	$	3,840

Schedule of Undiscounted Lease Payments for Operating Leases

The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2023, are as follows (in thousands):


	Operating Leases		Finance Leases
2024	$	2,418	$	327
2025	1,075		334
2026	622		341
2027	572		347
2028	548		354
Thereafter	475		2,993
Total undiscounted lease payments	5,710		4,696
Less: discount	(383)		(856)
Net lease liabilities	$	5,327	$	3,840

Defined Benefit Pension Plan - Schedule of Estimated Future Benefit Payments (Details) - Pension Plan $ in Thousands	Dec. 31, 2023 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2024	$ 1,421
2025	1,406
2026	1,452
2027	1,536
2028	1,691
Following 5 years	$ 9,413

Defined Benefit Pension Plan

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Defined Benefit Pension Plan

The Company provides pension benefits for eligible employees through a defined benefit pension plan. Employees hired prior to June 1, 2005 participate in the retirement plan on a non-contributing basis and were fully vested after five years of service.

The following tables set forth the Plan’s status and related disclosures (in thousands):


	2023		2022
Changes in benefit obligation:
Benefit obligation at beginning of year	$	30,225	$	42,297
Service cost	469		786
Interest cost	1,471		1,141
Actuarial (gain) loss	775		(12,549)
Distributions	(1,440)		(1,450)
Benefit obligation at end of year	$	31,500	$	30,225

Change in plan assets:
Fair value of plan assets at beginning of year	$	31,968	$	46,017
Adjustment to beginning of year fair value	—		—
Actual return on plan assets	2,653		(12,599)
Employer contribution	—		—
Distributions	(1,440)		(1,450)
Fair value of plan assets at end of year	$	33,181	$	31,968

Funded status recognized as accrued pension cost	$	1,681	$	1,743

Amounts recognized in accumulated other comprehensive (income) loss:
Net loss	$	7,273	$	8,901
Deferred income tax benefit	(1,527)		(1,869)
Total amount recognized	$	5,746	$	7,032

Accumulated benefit obligation	$	29,372	$	28,184

At December 31, 2023, December 31, 2022, and December 31, 2021, the assumptions used to determine the pension benefit obligation were as follows:


	2023		2022		2021
Discount rate	4.80	%	5.00	%	2.76	%
Rate of compensation increase	3.00		3.00		3.50

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


	2023		2022		2021
Components of net periodic pension cost:
Service cost	$	469	$	786	$	998
Interest cost	1,471		1,141		1,042
Expected return on plan assets	(879)		(1,539)		(1,612)
Amortization of prior service costs	—		—		—
Amortization of net loss	630		309		393
Net periodic pension costs	$	1,691	$	697	$	821

Other changes recognized in other comprehensive (income) loss
Net loss	$	(998)	$	1,589	$	7
Amortization of net loss	(630)		(309)		(393)
Deferred tax expense (benefit)	342		(269)		81
Total recognized in accumulated other comprehensive (income) loss	$	(1,286)	$	1,011	$	(305)

Total recognized in net periodic pension costs and other comprehensive loss	$	405	$	1,708	$	516

For the years ended December 31, 2023, December 31, 2022, and December 31, 2021, the assumptions used to determine net periodic pension cost were as follows:


	2023		2022		2021
Discount rate	4.80	%	5.00	%	2.76	%
Expected long-term rate of return on plan assets	3.75		3.75		3.75
Annual salary increase	3.00		3.00		3.50

The expected long-term return on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the long-term capital market assumptions. The overall return for each asset class was developed by combining a long-term inflation component and the associated expected real rates. The development of the capital market assumptions utilized a variety of methodologies, including, but not limited to, historical analysis, stock valuation models, such as dividend discount models, and earnings yield models, expected economic growth outlook, and market yields analysis.

The Company’s pension plan asset allocations at December 31, 2023, and December 31, 2022, were as follows:


	2023		2022
Equity securities	9.6	%	10.0	%
Debt securities & cash equivalents	90.4	%	90.0	%
Total	100.0	%	100.0	%

As of December 31, 2023, and December 31, 2022, the fair value of plan assets was as follows (in thousands):


	December 31, 2023
	Fair Value Measurements Using
	Level 1		Level 2		Level 3		Assets at Fair Value
Cash and cash equivalents	$	122	$	—	$	—	$	122
Equity securities	—		3,209		—		3,209
Debt securities	—		29,859		—		29,859
Total pension assets	$	122	$	33,068	$	—	$	33,190


	December 31, 2022
	Fair Value Measurements Using
	Level 1		Level 2		Level 3		Assets at Fair Value
Cash and cash equivalents	$	102	$	—	$	—	$	102
Equity securities	—		3,181		—		3,181
Debt securities	—		28,749		—		28,749
Total pension assets	$	102	$	31,930	$	—	$	32,032

Assets are valued using a combination of methods including quoted prices for similar assets in active or non-active markets.

The fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return. Investments are selected by officers experienced in financial matters and risk management, and implementation of approved investment strategies is monitored on a regular basis. Both actively and passively managed investment strategies are considered, and funds are allocated across asset classes to develop an efficient investment structure.

It is the responsibility of the trustee to consider costs in administering the portfolio, while maintaining high quality investments. Costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs, and other administrative costs which may be charged to the trust.

The Company does not expect to contribute to its pension plan in 2024.

Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands):


Years ending December 31,
2024	$	1,421
2025	1,406
2026	1,452
2027	1,536
2028	1,691
Following 5 years	$	9,413

Other Post-Retirement Plans

Investment and Savings Plan

The Company has an investment and savings plan for its employees. In the month following date of hire, an employee is eligible to participate in the investment and savings plan if they are at least 18 years old. A participant may elect to defer up to 90% of their annual compensation, not to exceed limitations established by the Internal Revenue Code. On behalf of each participant who makes the election, the Company contributes an amount up to

3.5% of the amount contributed by the participant. The Company’s contributions in 2023, 2022, and 2021 totaled $1.04 million, $1.02 million, and $1.02 million, respectively, which were included within pensions and other employee benefits on the Consolidated Statements of Income.

Other Retirement Plans

The Company has a deferred compensation plan for some of its directors and senior officers that provides benefits payable at age 65. The deferred compensation is to be paid to the individual or beneficiary over a period of 15 years. Amounts deferred are invested in increasing whole life insurance policies on the participants’ lives with the Company as owner and beneficiary. Amounts recognized for the increase in the cash surrender value of the policies are offset against the expense. The Company recognized net income of $33 thousand in 2023, $61 thousand in 2022, and $57 thousand in 2021, related to this deferred compensation plan.

In 2010, the Company adopted a Supplemental Executive Retirement Plan for a number of its executive officers. The plan is intended to be unfunded and maintained primarily for the purpose of providing deferred compensation to its participants. The benefits of the plan vest incrementally based on years of service. Plan expenses for the years ending December 31, 2023, December 31, 2022, and December 31, 2021, amounted to $522 thousand, $290 thousand, and $459 thousand, respectively.

In 2021, the Company formed a new deferred compensation plan (2021 Deferred Compensation Plan) for current directors and senior officers. The plan is funded with director fees and salary reductions which are placed in a trust account invested by the Company. The trust investments consist of equity investments, fixed income investments, and cash. The trust account balance totaled $818 thousand and $496 thousand at December 31, 2023, and December 31, 2022, respectively. This balance is included within other assets and is directly offset within other liabilities. Amounts contributed to the trust and recorded as expense for the Company totaled $341 thousand and $212 thousand, respectively, in 2023 and 2022.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
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-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Income Taxes - Schedule of Statutory Tax Rates to Income Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Expected taxes using statutory rates	$ 5,263	$ 10,983	$ 8,493
Benefit of tax-exempt municipal interest income, net of non-deductible interest	(363)	(1,694)	(1,993)
Nontaxable income from company-owned life insurance	(604)	(570)	(502)
Low income tax credits, net of amortization	(1,840)	(1,840)	(1,843)
State taxes, net of federal benefit	157	1,159	294
Merger-related	382	0	0
Other adjustment, net	(626)	248	(172)
Total	$ 2,369	$ 8,286	$ 4,277

- Definition

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

+ References + Details

Commitments and Contingencies - Schedule of Contractual Amounts of the Company’s Financial Instruments Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Commitments to extend credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 278,923	$ 291,265
Commercial letters of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 10,718	$ 8,539

Loans - Schedule of Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	$ 2,087,756	$ 1,887,221
Allowance for credit losses	(25,301)	(21,039)	$ (31,709)	$ (32,697)
Loans, net	2,062,455	1,866,182
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	1,309,084	1,109,315
Allowance for credit losses	(20,633)	(15,477)	(25,112)	(23,356)
Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	131,381	127,114
Allowance for credit losses	(783)	(635)	(611)	(1,196)
Acquisition, construction & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	49,091	94,450
Allowance for credit losses	(368)	(2,082)	(2,189)	(3,075)
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	67,847	53,514
Allowance for credit losses	(645)	(438)	(165)	(73)
Single family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	527,980	499,362
Allowance for credit losses	(2,797)	(2,379)	(2,434)	(3,757)
Consumer non-real estate and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	2,373	3,466
Allowance for credit losses	$ (75)	$ (28)	$ (18)	$ (60)

Other Post-Retirement Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Deferral percent of compensation	90.00%
Percent of employer contribution	3.50%
Plan cost	$ 1,040	$ 1,020	$ 1,020
Other Postretirement Benefits Plan \| Deferred Compensation Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Payment period	15 years
Net periodic pension costs	$ (33)	(61)	(57)
Net periodic pension costs (credit)	(33)	(61)	(57)
Other Postretirement Benefits Plan \| Two Thousand Twenty One Deferred Compensation Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic pension costs	341	212
Pension plan assets	818	496
Net periodic pension costs (credit)	341	212
Supplemental Employee Retirement Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan cost	$ 522	$ 290	$ 459

Securities - Schedule of Gross Realized Gains, Realized Losses, and Proceeds from the Sales of Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Gross realized gains	$ 772	$ 1,512	$ 0
Gross realized losses	(884)	(1,966)	(4)
Proceeds from sales of securities	$ 77,780	$ 195,907	$ 700

Consolidated Statements of Changes in Shareholders’ Equity (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Statement of Stockholders' Equity [Abstract]
Cash dividends, paid and accrued	$ 15,747
Dividends accrued on share based compensation	$ 551

Earnings Per Share - Schedule of Weighted Average Number of Shares Used in Computing Earnings Per Share and the Effect of Weighted Average Number of Shares Dilutive Potential Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Net income	$ 22,692	$ 44,013	$ 36,165
Weighted average number of shares (in shares)	7,428,042	7,425,088	7,424,405
Options effect of dilutive shares (in shares)	78,813	42,629	5,659
Weighted average dilutive shares (in shares)	7,506,855	7,467,717	7,430,064
Basic EPS (in usd per share)	$ 3.05	$ 5.93	$ 4.87
Diluted EPS (in usd per share)	$ 3.02	$ 5.89	$ 4.87

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
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-Name Accounting Standards Codification
-Section 55
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482635/260-10-55-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Name Accounting Standards Codification
-Section 65
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
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-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
-Paragraph 2
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/exampleRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-7

+ Details

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

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-Topic 260
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- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Contractual Amounts of the Company’s Financial Instruments Outstanding

A summary of the contractual amounts of the Company’s financial instruments outstanding at December 31, 2023, and December 31, 2022, is as follows (in thousands):


	2023		2022
Commitments to extend credit	$	278,923	$	291,265
Commercial letters of credit	10,718		8,539

Parent Company Financial Information (Tables)

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Balance Sheet

The following tables summarize condensed financial statements for Burke & Herbert Financial Services Corp., which commenced operations as a holding company on October 1, 2022, as of and for the years ended December 31, 2023, and December 31, 2022 (in thousands):


Parent Company Only Condensed Balance Sheet	2023		2022
Assets
Cash	$	284	$	2,000
Investment in subsidiary	313,364		271,757
Other assets	1,653		209
Total Assets	$	315,301	$	273,966

Liabilities
Other liabilities	$	551	$	513
Total Liabilities	551		513

Total Shareholders’ Equity	314,750		273,453
Total Liabilities and Shareholders’ Equity	$	315,301	$	273,966

Schedule of Condensed Statement of Income


Parent Company Only Condensed Statement of Income	2023		2022
Income
Dividends from bank subsidiary	$	18,997	$	5,936
Total Income	18,997		5,936

Expense
Salaries and employee benefit	2,052		426
Other operating expenses	4,826		568
Total Expense	6,878		994

Income (loss) before income tax benefit and equity in undistributed income of subsidiaries	12,119		4,942
Income tax benefit	1,445		209
Income (loss) before equity in undistributed income of subsidiaries	13,564		5,151
Equity in undistributed earnings of subsidiary	9,128		38,862
Net Income	$	22,692	$	44,013

Schedule of Condensed Statement of Cash Flows


Parent Company Only Condensed Statement of Cash Flows	2023		2022
Cash Flows from Operating Activities
Net income	$	22,692	$	44,013
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries	(9,128)		(38,862)
Share-based compensation	2,464		481
Deferred income taxes	(539)		(105)
Net change in other assets	(899)		513
Net change in other liabilities	(906)		(104)
Net cash flows provided by operating activities	$	13,684	$	5,936

Cash Flows from Investing Activities	—		—

Net cash (used in) provided by investing activities	$	—	$	—

Cash Flows from Financing Activities
Proceeds from employee stock purchase program	206		—
Dividends paid	(15,747)		(3,936)
Treasury stock transactions	141		—

Net cash (used in) financing activities	$	(15,400)	$	(3,936)

Increase in cash and cash equivalents	$	(1,716)	$	2,000

Cash and cash equivalents
Beginning of the year	$	2,000	$	—
End of the year	284		2,000

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net income	$ 22,692	$ 44,013	$ 36,165

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Common Stock Transactions	12 Months Ended
Common Stock Transactions	Dec. 31, 2023
Equity [Abstract]
Common Stock Transactions	Common Stock Transactions In 2023, the Company reissued 2,950 shares of treasury stock to satisfy the vesting of RSUs. No other purchase or sale of the Company’s Common Stock occurred in 2023. On November 15, 2022, the Company effected a forty-for-one stock split of its Common Stock by issuing thirty-nine additional shares of Common Stock for each outstanding share of Common Stock of record as of November 9, 2022. All share and earnings per share information have been retroactively adjusted to reflect the stock split within the financial statements and notes to the financial statements. In 2022, the Company reissued 2,000 shares of treasury stock to satisfy the vesting of RSUs. No other purchase or sale of the Company’s Common Stock occurred in 2022. In 2021, the Company purchased shares of its own Common Stock on the open market in arms-length transactions. It acquired 90,040 shares at an aggregate cost of $4.4 million at prices ranging from $45.25 to $50.00 per share. Additionally, in early August 2021, the Company sold 64,000 shares to certain of its directors, pursuant to a private placement exemption from registration for aggregate consideration of $3.2 million and reissued 1,720 shares of treasury stock to satisfy the vesting of RSUs. During 2023, 2022, and 2021, the Company declared and paid cash dividends of $2.12, $2.12, and $2.00 per share, respectively.

- Definition

The entire disclosure for equity.

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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Leased Property - Narrative (Details) $ in Thousands	3 Months Ended	12 Months Ended
Leased Property - Narrative (Details) $ in Thousands	Dec. 31, 2022 USD ($) building	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) building	Dec. 31, 2021 USD ($)
Lessor, Lease, Description [Line Items]
Number of buildings sold \| building	2		2
Sale leaseback transaction, lease terms	one year
Operating lease expense		$ 655
Realized gain on sale of property	$ 3,700	$ (37)	$ 4,533	$ 1,063
Minimum
Lessor, Lease, Description [Line Items]
Operating lease term, lessor		2 years
Lease term, lessee		1 year
Maximum
Lessor, Lease, Description [Line Items]
Operating lease term, lessor		12 years
Lease term, lessee		15 years

Fair Value Measurements - Schedule of Quantitative Information of Level 3 Fair Value Measurements for Assets Measured at Fair Value on a Non-Recurring Basis (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, fair value		$ 9,069
Level 3 \| Nonrecurring \| Income, Market, & Discounted cash flow analysis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, fair value	$ 3,417	$ 2,496
Level 3 \| Nonrecurring \| Income, Market, & Discounted cash flow analysis \| Minimum \| External appraised values; management assumptions regarding market trends, market rate for borrower, or other relevant factors
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input	0.036	0.045
Level 3 \| Nonrecurring \| Income, Market, & Discounted cash flow analysis \| Maximum \| External appraised values; management assumptions regarding market trends, market rate for borrower, or other relevant factors
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input	0.09	0.06
Level 3 \| Nonrecurring \| Income, Market, & Discounted cash flow analysis \| Weighted Average \| External appraised values; management assumptions regarding market trends, market rate for borrower, or other relevant factors
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input	0.054	0.052

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Schedule of Premises and Equipment

Premises and equipment are included in the Balance Sheet at December 31, 2023, and December 31, 2022, were as follows (in thousands):


	2023		2022
Cost:
Land	$	14,626	$	14,626
Premises	64,181		56,999
Furniture and equipment	17,505		18,705
	96,312		90,330

Less:
Accumulated depreciation	(35,184)		(37,160)

Total	$	61,128	$	53,170

Commitments and Contingencies - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Allowance for credit losses on off-balance sheet credit exposure	$ 254,000	$ 0
Unfunded Loan Commitment
Derivatives, Fair Value [Line Items]
Recapture of credit losses on unfunded commitments	21,000
Interest Rate Lock Commitments
Derivatives, Fair Value [Line Items]
Net gains (losses) relating to the free-standing derivative instruments	8,000	(13,000)	$ 13,000
Derivative asset, notional amount	$ 3,400,000	$ 0	$ 926,000

Allowance for Credit Losses - Schedule of Collateral-Dependent Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment		$ 2,735
Related Allowance		239
Recorded Investment		6,335
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment		331
Related Allowance		41
Recorded Investment		0
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment		1,397
Related Allowance		102
Recorded Investment		1,184
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment		0
Related Allowance		0
Recorded Investment		0
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment		0
Related Allowance		0
Recorded Investment		0
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment		1,007
Related Allowance		96
Recorded Investment		5,151
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment		0
Related Allowance		0
Recorded Investment		$ 0
Collateral Pledged
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment	$ 0
Related Allowance	0
Recorded Investment	3,744
Amortized Cost	3,744
Collateral Pledged \| Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment	0
Related Allowance	0
Recorded Investment	0
Amortized Cost	0
Collateral Pledged \| Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment	0
Related Allowance	0
Recorded Investment	1,000
Amortized Cost	1,000
Collateral Pledged \| Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment	0
Related Allowance	0
Recorded Investment	0
Amortized Cost	0
Collateral Pledged \| Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment	0
Related Allowance	0
Recorded Investment	0
Amortized Cost	0
Collateral Pledged \| Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment	0
Related Allowance	0
Recorded Investment	2,744
Amortized Cost	2,744
Collateral Pledged \| Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment	0
Related Allowance	0
Recorded Investment	0
Amortized Cost	$ 0

Leased Property - Schedule of Maturities of Operating Lease Receivables (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Leases [Abstract]
2024	$ 2,302
2025	2,265
2026	1,657
2027	1,356
2028	1,333
Thereafter	2,450
Total lease receivables	$ 11,363

Defined Benefit Pension Plan - Schedule of Assumptions Used to Determine Pension Benefit Obligation (Details) - Pension Plan	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.80%	5.00%	2.76%
Rate of compensation increase	3.00%	3.00%	3.50%

Qualified Affordable Housing Project and Historic Tax Investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Investments in qualified affordable housing projects	$ 18.0	$ 23.5
Investments in qualified affordable housing projects, unfunded commitments	0.7	0.8
Investments in qualified affordable housing projects, amortization expense	5.6	6.1	$ 6.8
Qualified for the proportional amortization method, amount	3.1	3.6	4.1
Noninterest Expense
Schedule of Equity Method Investments [Line Items]
Investments in qualified affordable housing projects, amortization expense	$ 2.5	$ 2.5	$ 2.7

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Interest rate lock commitments

Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are defined as derivatives under GAAP. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the fair value option (“FVO”) on both the best-efforts forward commitments and the consumer mortgage loans held-for-sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. Interest Rate lock commitments are not designated as hedging instruments, and therefore, changes in the fair value of these free-standing derivative instruments are reported as non-interest income.

The net gains (losses) relating to the free-standing derivative instruments (interest rate lock commitments) were $8 thousand, $(13) thousand, and $13 thousand, at December 31, 2023, December 31, 2022, and December 31, 2021, respectively. The notional amount of the mortgage loan pipeline that resulted in an interest rate lock commitments at December 31, 2023, December 31, 2022, and December 31, 2021, was $3.4 million, zero, and

$926 thousand, respectively. Interest Rate lock commitments are not designated as hedging instruments, and therefore changes in the fair value of these free-standing derivative instruments are reported as non-interest income.

Credit extension commitments

The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk, and liquidity risk. These financial instruments include commitments to extend credit (e.g. revolving lines of credit) and commercial letters of credit.

Many of our lending relationships contain both funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility. Since many of our commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.

A summary of the contractual amounts of the Company’s financial instruments outstanding at December 31, 2023, and December 31, 2022, is as follows (in thousands):


	2023		2022
Commitments to extend credit	$	278,923	$	291,265
Commercial letters of credit	10,718		8,539

Commitments to extend credit and commercial letters of credit both include exposure to some credit loss in the event of non-performance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Consolidated Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company.

Allowance for credit losses - off-balance-sheet credit exposures

The Company recorded a recapture of credit losses on unfunded commitments of $21 thousand for the year ended December 31, 2023. The ACL on off-balance-sheet credit exposures totaled $254 thousand at December 31, 2023, and is included in accrued interest and other liabilities on the accompanying Consolidated Balance Sheets.

Litigation

The Company is a party to litigation, claims, and proceedings arising in the normal course of business that are ordinary and routine to the nature of the Company’s business and operations. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from any currently pending or threatened litigation, claims, or proceedings will not be material to the Company’s financial position.

Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 2,872	$ 3,053	$ 3,205
Gain (loss) on sold premises	$ 0	$ 4,500	$ 1,100

Fair Value Measurements - Schedule of Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 0	$ 0
Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	286	290
Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	1,315	1,295
Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Single family residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	1,816	911
Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0
Level 1 \| Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 1 \| Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 1 \| Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 1 \| Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 1 \| Single family residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 1 \| Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0
Level 2 \| Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 2 \| Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 2 \| Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 2 \| Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 2 \| Single family residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 2 \| Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0
Level 3 \| Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	286	290
Level 3 \| Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	1,315	1,295
Level 3 \| Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 3 \| Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	0
Level 3 \| Single family residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	1,816	911
Level 3 \| Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 0	$ 0

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash Flows from Operating Activities
Net Income	$ 22,692	$ 44,013	$ 36,165
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets	2,872	3,053	3,205
Amortization of housing tax credits	5,591	6,147	6,778
Realized loss on sales of available-for-sale securities	112	454	4
Provision for (recapture of) credit losses	214	(7,466)	(1,002)
Income from company-owned life insurance	(2,844)	(2,656)	(2,325)
Deferred tax expense (benefit)	(1,453)	1,397	(1,659)
(Gain) loss on disposal of fixed assets	37	(4,533)	(1,063)
Accretion of securities	(1,615)	(1,622)	(1,380)
Amortization of securities	9,161	11,117	9,870
Share-based compensation expense	2,464	2,000	283
Repayment of operating lease liabilities	(3,137)	(2,330)	(2,076)
(Gain) on loans held-for-sale	(138)	(58)	(194)
Proceeds from sales of loans held-for-sale	14,205	9,585	50,194
Change in fair value of loans held-for-sale	(28)	23	(23)
Originations of loans held-for-sale	(15,536)	(2,300)	(42,969)
(Increase) in accrued interest receivable	(414)	(228)	(1,469)
Decrease in other assets	3,851	501	2,581
Increase in accrued interest payable and other liabilities	6,475	3,960	32
Net cash flows provided by operating activities	42,509	61,057	54,952
Cash Flows from Investing Activities
Proceeds from maturities, prepayments, and calls of securities available-for-sale, net	112,025	213,596	194,578
Proceeds from sales of securities available-for-sale, net	77,780	195,907	700
Purchases of securities available-for-sale, net	(33,221)	(367,615)	(669,951)
Sales of restricted stock	29,880	22,718	1,988
Purchases of restricted stock	(19,402)	(27,081)	(1,875)
Proceeds from sales of property and equipment	3,383	8,260	2,561
Purchases of property and equipment, net of disposals	(14,249)	(23,075)	(1,083)
Proceeds from company-owned life insurance	1,171	1,231	240
(Increase) decrease in loans made to customers, net	(200,535)	(151,352)	88,716
Net cash flows (used in) investing activities	(43,168)	(127,411)	(384,126)
Cash Flows from Financing Activities
Net increase (decrease) in non-interest-bearing accounts	(130,372)	29,845	78,838
Net increase (decrease) in interest-bearing accounts	211,853	(42,862)	65,133
Increase (decrease) in other short-term borrowings	(71,100)	68,100	50,000
Repayment of finance lease liabilities	(119)	(152)	(152)
Proceeds from employee stock purchase program	206	0	0
Cash dividends paid	(15,747)	(15,742)	(14,871)
Treasury stock transactions	141	97	(1,115)
Net cash flows provided by (used in) financing activities	(5,138)	39,286	177,833
(Decrease) in cash and cash equivalents	(5,797)	(27,068)	(151,341)
Beginning of year	50,295	77,363	228,704
End of year	44,498	50,295	77,363
Cash payments for:
Interest paid to depositors	37,573	3,411	2,856
Interest paid on other borrowed funds	7,975	4,324	1,430
Interest paid on finance lease	86	63	39
Income taxes	1,570	950	1,347
Change in unrealized gains on available-for-sale securities	41,415	(182,088)	(20,165)
Change in pension plan benefits	1,628	(1,280)	386
Lease liability arising from obtaining right-of-use assets	1,214	1,558	2,221
Premises & equipment transferred to property held-for-sale	0	3,449	2,697
Transfers from portfolio loans to loans held-for-sale	0	19,594	0
Financing of sale from loans held-for-sale	$ 0	$ 9,000	$ 0

Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 96,312	$ 90,330
Accumulated depreciation	(35,184)	(37,160)
Total	61,128	53,170
Land
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	14,626	14,626
Premises
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	64,181	56,999
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 17,505	$ 18,705

Securities (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Carrying Amount of Securities and Expected Maturity for Contractual Maturities

The carrying amount of securities and their approximate fair values at December 31, 2023, and December 31, 2022, are summarized as follows (in thousands):


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	197,026	$	—	$	17,955	$	179,071
Obligations of states and municipalities	535,229		21		72,047		463,203
Residential mortgage backed — agency	47,074		—		4,836		42,238
Residential mortgage backed — non-agency	284,826		17		18,812		266,031
Commercial mortgage backed — agency	36,151		28		1,294		34,885
Commercial mortgage backed — non-agency	183,454		—		6,393		177,061
Asset-backed	79,315		23		1,402		77,936
Other	9,500		—		1,486		8,014
Total	$	1,372,575	$	89	$	124,225	$	1,248,439


	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	198,154	$	—	$	23,161	$	174,993
Obligations of states and municipalities	550,590		12		96,695		453,907
Residential mortgage backed — agency	57,883		14		4,836		53,061
Residential mortgage backed — non-agency	365,983		2		26,690		339,295
Commercial mortgage backed — agency	61,810		75		1,952		59,933
Commercial mortgage backed — non-agency	191,709		10		8,420		183,299
Asset-backed	101,791		49		3,214		98,626
Other	9,500		—		857		8,643
Total	$	1,537,420	$	162	$	165,825	$	1,371,757

Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties).


	December 31, 2023
	Amortized Cost
	One Year or Less		One to Five Years		Five to Ten Years		After Ten Years		Total
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	29,894	$	141,775	$	25,357	$	—	$	197,026
Obligations of states and municipalities	—		25,891		359,940		149,398		535,229
Residential mortgage backed - agency	42		11,078		35,954		—		47,074
Residential mortgage backed - non-agency	91,412		91,836		92,752		8,826		284,826
Commercial mortgage backed - agency	134		23,713		12,304		—		36,151
Commercial mortgage backed - non-agency	44,762		133,553		5,139		—		183,454
Asset-backed	8,445		34,470		36,400		—		79,315
Other	—		—		9,500		—		9,500
Total	$	174,689	$	462,316	$	577,346	$	158,224	$	1,372,575


	December 31, 2023
	Fair Value
	One Year or Less		One to Five Years		Five to Ten Years		After Ten Years		Total
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	29,588	$	127,212	$	22,271	$	—	$	179,071
Obligations of states and municipalities	—		24,269		321,827		117,107		463,203
Residential mortgage backed - agency	42		10,656		31,540		—		42,238
Residential mortgage backed - non-agency	89,310		87,333		81,304		8,084		266,031
Commercial mortgage backed - agency	134		22,941		11,810		—		34,885
Commercial mortgage backed - non-agency	43,898		128,962		4,201		—		177,061
Asset-backed	8,349		34,129		35,458		—		77,936
Other	—		—		8,014		—		8,014
Total	$	171,321	$	435,502	$	516,425	$	125,191	$	1,248,439

Schedule of Gross Realized Gains, Realized Losses, and Proceeds from the Sales of Securities

The gross realized gains, realized losses, and proceeds from the sales of securities for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, were as follows (in thousands):


	2023		2022		2021
Gross realized gains	$	772	$	1,512	$	—
Gross realized losses	(884)		(1,966)		(4)
Proceeds from sales of securities	77,780		195,907		700

Schedule of Available-for-Sale Securities in a Continuous Unrealized Loss Position

Available-for-sale securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands):


	December 31, 2023
	Less Than Twelve Months				More Than Twelve Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Total Unrealized Losses
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	—	$	—	$	179,071	$	17,955	$	17,955
Obligations of states and municipalities	501		14		458,113		72,033		72,047
Residential mortgage backed - agency	36		—		42,203		4,836		4,836
Residential mortgage backed - non-agency	632		2		263,184		18,810		18,812
Commercial mortgage backed - agency	—		—		34,080		1,294		1,294
Commercial mortgage backed - non-agency	23,437		254		153,625		6,139		6,393
Asset-backed	3,721		9		56,106		1,393		1,402
Other	—		—		8,014		1,486		1,486
Total	$	28,327	$	279	$	1,194,396	$	123,946	$	124,225


	December 31, 2022
	Less Than Twelve Months				More Than Twelve Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Total Unrealized Losses
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	28,399	$	1,131	$	146,594	$	22,030	$	23,161
Obligations of states and municipalities	128,373		12,378		320,287		84,317		96,695
Residential mortgage backed - agency	7,258		26		41,975		4,810		4,836
Residential mortgage backed - non-agency	204,866		11,822		134,056		14,868		26,690
Commercial mortgage backed - agency	23,026		562		34,847		1,390		1,952
Commercial mortgage backed - non-agency	144,193		6,171		23,374		2,249		8,420
Asset-backed	43,472		815		50,088		2,399		3,214
Other	6,877		623		1,766		234		857
Total	$	586,464	$	33,528	$	752,987	$	132,297	$	165,825

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Defined Benefit Pension Plan - Schedule of Fair Value of Plan Assets (Details) - Pension Plan - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	$ 33,181	$ 31,968	$ 46,017
Recurring
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	33,190	32,032
Recurring \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	122	102
Recurring \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	33,068	31,930
Recurring \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	122	102
Recurring \| Cash and cash equivalents \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	122	102
Recurring \| Cash and cash equivalents \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring \| Cash and cash equivalents \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	3,209	3,181
Recurring \| Equity securities \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring \| Equity securities \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	3,209	3,181
Recurring \| Equity securities \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring \| Debt securities & cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	29,859	28,749
Recurring \| Debt securities & cash equivalents \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring \| Debt securities & cash equivalents \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	29,859	28,749
Recurring \| Debt securities & cash equivalents \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	$ 0	$ 0

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax

The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2023, December 31, 2022, and December 31, 2021 (in thousands):


	December 31, 2023
	Gains and Losses on Cash Flow Hedges		Unrealized Gains and Losses on Available-for-Sale Securities		Defined Benefit Pension Items		Accumulated Other Comprehensive Income
Beginning Balance	$	(1,589)	$	(130,875)	$	(7,031)	$	(139,495)
Net unrealized gains (losses)	(283)		32,718		—		32,435
Less: net realized (gains) losses reclassified to earnings	1,382		898		—		2,280
Net change in pension plan benefits	—		—		1,286		1,286
Ending Balance	$	(490)	$	(97,259)	$	(5,745)	$	(103,494)

	December 31, 2022
	Gains and Losses on Cash Flow Hedges		Unrealized Gains and Losses on Available-for-Sale Securities		Defined Benefit Pension Items		Accumulated Other Comprehensive Income
Beginning Balance	$	—	$	12,975	$	(6,020)	$	6,955
Net unrealized gains (losses)	(1,721)		(144,209)		—		(145,930)
Less: net realized (gains) losses reclassified to earnings	132		359		—		491
Net change in pension plan benefits	—		—		(1,011)		(1,011)
Ending Balance	$	(1,589)	$	(130,875)	$	(7,031)	$	(139,495)

	December 31, 2021
	Gains and Losses on Cash Flow Hedges		Unrealized Gains and Losses on Available-for-Sale Securities		Defined Benefit Pension Items		Accumulated Other Comprehensive Income
Beginning Balance	$	—	$	28,905	$	(6,325)	$	22,580
Net unrealized gains (losses)	—		(15,933)		—		(15,933)
Less: net realized (gains) losses reclassified to earnings	—		3		—		3
Net change in pension plan benefits	—		—		305		305
Ending Balance	$	—	$	12,975	$	(6,020)	$	6,955

Schedule of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss)

The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ending December 31, 2023, December 31, 2022, and December 31, 2021 (in thousands).


Details about Accumulated Other Comprehensive Income Components	Amount Reclassified From Accumulated Other Comprehensive Income						Affected Line Item in the Statements of Income
	2023		2022		2021
Cash flow hedges:
Interest rate contracts	$	(1,749)	$	(167)	$	—	Interest income
Tax effect	367		35		—		Income tax expense (benefit)
Net of Tax	$	(1,382)	$	(132)	$	—

Available-for-sale securities:
Realized gains (losses) on securities	$	(112)	$	(454)	$	(4)	Net gains/(losses) on securities
Realized gains (losses) on basis adjustment for fair value hedges	(1,025)		—		—		Interest income
Tax effect	239		95		1		Income tax expense (benefit)
Net of Tax	$	(898)	$	(359)	$	(3)

Defined benefit pension plan:
Amortization of actuarial gain / (loss)	$	(1,628)	$	1,280	$	(386)	Pension and other employee benefits
Tax effect	342		(269)		81		Income tax expense (benefit)
Net of Tax	$	(1,286)	$	1,011	$	(305)

Total reclassifications, net of tax	$	(3,566)	$	520	$	(308)	Net income

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

The components of applicable income tax expense (benefit) for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, were as follows (in thousands):


	2023		2022		2021
Current Expense:
Federal	$	3,592	$	5,501	$	5,564
State	230		1,388		372
	$	3,822	$	6,889	$	5,936

Deferred Expense:
Federal	$	(1,422)	$	1,318	$	(1,401)
State	(31)		79		(258)
	$	(1,453)	$	1,397	$	(1,659)

Total	$	2,369	$	8,286	$	4,277

Schedule of Statutory Tax Rates to Income Before Taxes


	2023		2022		2021
Expected taxes using statutory rates	$	5,263	$	10,983	$	8,493
Benefit of tax-exempt municipal interest income, net of non-deductible interest	(363)		(1,694)		(1,993)
Nontaxable income from company-owned life insurance	(604)		(570)		(502)
Low income tax credits, net of amortization	(1,840)		(1,840)		(1,843)
State taxes, net of federal benefit	157		1,159		294
Merger-related	382		—		—
Other adjustment, net	(626)		248		(172)
Total	$	2,369	$	8,286	$	4,277

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax amounts in the accompanying Consolidated Balance Sheets include the following components (in thousands):


	2023		2022
Deferred tax assets:
Provision for credit losses	$	5,600	$	4,597
Lease liability	2,008		2,259
Compensation and other accruals	2,011		1,847
Partnership investments	2,264		1,982
Unrealized losses on securities available-for-sale	26,069		34,789
Tax credit carryforward	8,690		7,634
Unrealized losses on interest rate swaps	—		422
Total deferred tax asset	$	46,642	$	53,530

Deferred tax liabilities:
Tax over book depreciation	$	(2,073)	$	(1,618)
Pension accrual	(434)		(456)
Unrealized gains on interest rate swaps	(85)		—
Right of use asset	(1,906)		(2,158)
Total deferred tax liability	$	(4,498)	$	(4,232)

Net deferred tax asset	$	42,144	$	49,298

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):


	Fair Value Measurements at December 31, 2023 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets
Investment Securities
U.S. Treasuries and government agencies	$	179,071	$	—	$	—	$	179,071
Obligations of state and municipalities	—		463,203		—		463,203
Residential mortgage backed - agency	—		42,238		—		42,238
Residential mortgage backed - non-agency	—		266,031		—		266,031
Commercial mortgage backed - agency	—		34,885		—		34,885
Commercial mortgage backed - non-agency	—		177,061		—		177,061
Asset backed	—		77,936		—		77,936
Other	—		8,014		—		8,014
Total investment securities available-for-sale	$	179,071	$	1,069,368	$	—	$	1,248,439

Loans held-for-sale, at fair value	$	—	$	1,497	$	—	$	1,497

Derivatives	$	—	$	1,063	$	—	$	1,063

Financial liabilities
Derivatives	$	—	$	2,045	$	—	$	2,045


	Fair Value Measurements at December 31, 2022 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets
Investment Securities
U.S. Treasuries and government agencies	$	174,993	$	—	$	—	$	174,993
Obligations of state and municipalities	—		453,907		—		453,907
Residential mortgage backed - agency	—		53,061		—		53,061
Residential mortgage backed - non-agency	—		339,295		—		339,295
Commercial mortgage backed - agency	—		59,933		—		59,933
Commercial mortgage backed - non-agency	—		183,299		—		183,299
Asset backed	—		98,626		—		98,626
Other	—		8,643		—		8,643
Total investment securities available-for-sale	$	174,993	$	1,196,764	$	—	$	1,371,757

Loans held-for-sale, at fair value	$	—	$	—	$	—	$	—

Derivatives	$	—	$	1,311	$	—	$	1,311

Financial liabilities
Derivatives	$	—	$	3,565	$	—	$	3,565

Schedule of Assets Measured at Fair Value on a Nonrecurring Basis

Assets that were measured at fair value on a non-recurring basis during the period are summarized below (in thousands):


	Fair Value Measurements at December 31, 2023 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Impaired Loans:
Commercial real estate	$	—	$	—	$	286	$	286
Owner-occupied commercial real estate	—		—		1,315		1,315
Acquisition, construction & development	—		—		—		—
Commercial & industrial	—		—		—		—
Single family residential	—		—		1,816		1,816
Consumer non-real estate and other	—		—		—		—
Other real estate owned	—		—		—		—


	Fair Value Measurements at December 31, 2022 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Impaired Loans:
Commercial real estate	$	—	$	—	$	290	$	290
Owner-occupied commercial real estate	—		—		1,295		1,295
Acquisition, construction & development	—		—		—		—
Commercial & industrial	—		—		—		—
Single family residential	—		—		911		911
Consumer non-real estate and other	—		—		—		—
Other real estate owned	—		—		—		—

Schedule of Quantitative Information of Level 3 Fair Value Measurements for Assets Measured at Fair Value on a Non-Recurring Basis

The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at December 31, 2023, and December 31, 2022 (in thousands except for percentages):

Description

Fair Value

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

December 31, 2023

Individually evaluated loans

3,417

Income, Market, & Discounted cash flow analysis

External appraised values; management assumptions regarding market trends, market rate for borrower, or other relevant factors

3.6% - 9%

5.4%

December 31, 2022

Individually evaluated loans

2,496

Income, Market, & Discounted cash flow analysis

External appraised values; management assumptions regarding market trends, market rate for borrower, or other relevant factors

4.5% - 6%

5.2%

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value

The carrying amounts and estimated fair values of financial instruments not carried at fair value, at December 31, 2023, and December 31, 2022, were as follows (in thousands):


			Fair Value Measurements at December 31, 2023 Using:
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)		Total
Financial Assets
Cash and due from banks	$	8,896	$	8,896	$	—	$	—	$	8,896
Interest-bearing deposits with banks	35,602		35,602		—		—		35,602
Loans, net	2,062,455		—		—		1,897,459		1,897,459
Accrued interest	15,895		—		15,895		—		15,895

Financial liabilities
Non-interest-bearing	$	830,320	$	—	$	830,320	$	—	$	830,320
Interest-bearing	2,171,561		—		2,167,218		—		2,167,218
Other borrowed funds	272,000		—		271,716		—		271,716
Accrued interest	8,954		—		8,954		—		8,954


			Fair Value Measurements at December 31, 2022 Using:
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)		Total
Financial Assets
Cash and due from banks	$	9,124	$	9,124	$	—	$	—	$	9,124
Interest-bearing deposits with banks	41,171		41,171		—		—		41,171
Loans, net	1,866,182		—		—		1,768,903		1,768,903
Accrued interest	15,481		—		15,481		—		15,481

Financial liabilities
Non-interest-bearing	$	960,692	$	—	$	960,692	$	—	$	960,692
Interest-bearing	1,959,708		—		1,951,227		—		1,951,227
Other borrowed funds	343,100		—		342,904		—		342,904
Accrued interest	1,452		—		1,452		—		1,452

Derivatives

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Cash flow hedges of interest rate risk

The Company’s objectives in using interest rate derivatives are to add stability to net interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Other interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2023, such derivatives were used to hedge the variable cash flows associated with variable-rate debt and assets.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest expense or interest income in the same period(s) during which the hedged transaction affects earnings. During 2024, the Company estimates that an additional $0.6 million will be reclassified as a reduction to interest income, and an additional $1.2 million will be reclassified as a reduction to interest expense.

The Company is hedging its exposure to the variability in future cash flow for forecasted transactions over a maximum period of 4 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments).

Derivatives not designated as hedges

The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Consolidated Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties.

The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of December 31, 2023, and December 31, 2022 (in thousands):


	December 31, 2023
	Balance Sheet Location	Notional Amount		Fair Value
Derivatives designated as hedges:
Interest rate swaps related to cash flow hedges	Other assets	$	100,000	$	65
Interest rate swaps related to cash flow hedges	Other liabilities	150,000		1,047

Derivatives not designated as hedges:
Interest rate swaps related to customer loans	Other assets	$	72,572	$	998
Interest rate swaps related to customer loans	Other liabilities	72,572		998


	December 31, 2022
	Balance Sheet Location	Notional Amount		Fair Value
Derivatives designated as hedges:
Interest rate swaps related to cash flow hedges	Other liabilities	$	50,000	$	2,254

Derivatives not designated as hedges:
Interest rate swaps related to customer loans	Other assets	$	34,674	$	1,311
Interest rate swaps related to customer loans	Other liabilities	34,674		1,311

The table below presents the effect of cash flow hedge accounting on AOCI for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 (in thousands):


	December 31, 2023							December 31, 2023
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative		Amount of Gain or (Loss) Recognized in OCI Included Component		Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Reclassified from AOCI into Income	Amount of Gain or (Loss) Reclassified from AOCI into Income		Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component		Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component
Interest Rate Products	$	(329)	$	(329)	$	—	Interest Income	$	(1,749)	$	(1,749)	$	—
Interest Rate Products	(29)		(29)		—		Interest Expense	—		—		—
Total	$	(358)	$	(358)	$	—		$	(1,749)	$	(1,749)	$	—


	December 31, 2022							December 31, 2022
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative		Amount of Gain or (Loss) Recognized in OCI Included Component		Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Reclassified from AOCI into Income	Amount of Gain or (Loss) Reclassified from AOCI into Income		Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component		Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component
Interest Rate Products	$	(2,178)	$	(2,178)	$	—	Interest Income	$	(167)	$	(167)	$	—
Total	$	(2,178)	$	(2,178)	$	—		$	(167)	$	(167)	$	—

December 31, 2021

Derivatives in Cash Flow Hedging Relationships

Amount of Gain or (Loss) Recognized in OCI on Derivative

Amount of Gain or (Loss) Recognized in OCI Included Component

Amount of Gain or (Loss) Recognized in OCI Excluded Component

Location of Gain or (Loss) Reclassified from AOCI into Income

Amount of Gain or (Loss) Reclassified from AOCI into Income

Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component

Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component

Interest Rate Products

—

Interest Income

—

Total

—

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of December 31, 2023, and December 31, 2022 (in thousands).


	Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	December 31, 2023				December 31, 2022				December 31, 2021
	Interest Income		Interest Expense		Interest Income		Interest Expense		Interest Income		Interest Expense
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	$	(895)	$	—	$	(167)	$	—	$	—	$	—
The effects of fair value and cash flow hedging:
Gain or (loss) on fair value hedging relationships in Subtopic 815-20
Interest contracts
Hedging items(1)	$	(1,025)	—		—		—		—		—
Derivatives designated as hedging instruments	1,879		—		—		—		—		—
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
Interest contracts
Amount of gain or (loss) reclassified from AOCI into income	$	(1,749)	—		$	(167)	—		—		—
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	—		—		—		—		—		—
Amount of Gain or (Loss) Reclassified from AOCI into Income - Included Component	(1,749)		—		(167)		—		—		—
Amount of Gain or (Loss) Reclassified from AOCI into Income - Excluded Component	—		—		—		—		—		—

(1) The Company voluntarily discontinued a fair value hedging relationship and these amounts include the gain or (loss) and the hedging adjustment on a voluntary discontinued hedging relationship. The Company has allocated the basis adjustment to the remaining individual assets in the closed portfolio and will amortize the basis adjustment over a period consistent with the amortization of other discounts or premiums on the hedged assets.

Credit-risk-related Contingent Features

As of December 31, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for non-performance risk related to these agreements, was $982 thousand. As of December 31, 2023, the Company has posted the full amount of collateral related to these agreements.

Earnings Per Share - Narrative (Details) - shares	12 Months Ended
Earnings Per Share - Narrative (Details) - shares	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Stock awards antidilutive (in shares)	503	0	462

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 2,369	$ 8,286	$ 4,277
Uncertain tax positions	$ 167	$ 291

- Definition

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

+ References + Details

Securities - Narrative (Details)	12 Months Ended
Securities - Narrative (Details)	Dec. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 1,372,575,000	$ 1,537,420,000
Fair value	1,248,439,000	1,371,757,000
Realized tax benefit (provision) gain (loss)	$ 23,500	95,300	$ 800
Securities unrealized loss \| security	392
Cumulative OTTI		0
OTTI charges in earnings		0
Restricted stock, at cost	$ 5,964,000	16,443,000
Federal Home Loan Bank Certificates and Obligations (FHLB)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Restricted stock, at cost	5,900,000	16,400,000
Community Bankers' Bank
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Restricted stock, at cost	50,000	50,000
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	197,026,000	198,154,000
Fair value	$ 179,071,000	174,993,000
Securities in unrealized loss positions \| security	12
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 47,074,000	57,883,000
Fair value	$ 42,238,000	53,061,000
Securities in unrealized loss positions \| security	16
Commercial Mortgage Backed – Agency Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions \| security	15
State and Municipal Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions \| security	201
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 284,826,000	365,983,000
Fair value	$ 266,031,000	339,295,000
Securities in unrealized loss positions \| security	90
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 183,454,000	191,709,000
Fair value	$ 177,061,000	183,299,000
Securities in unrealized loss positions \| security	33
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 79,315,000	101,791,000
Fair value	$ 77,936,000	98,626,000
Securities in unrealized loss positions \| security	22
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 9,500,000	9,500,000
Fair value	$ 8,014,000	8,643,000
Securities in unrealized loss positions \| security	3
Asset Pledged as Collateral
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 826,500,000	637,100,000
Fair value	$ 742,500,000	$ 552,500,000

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) arising during period, tax expense (benefit)	$ (8,697)	$ 38,333	$ 4,236
Reclassification adjustment for loss (gain) on securities, tax	(24)	(95)	(1)
Reclassification adjustment for loss (gain) on a fair value hedge, tax	(215)	0	0
Changes in pension plan benefits, tax	(342)	263	(81)
Unrealized holding gain (loss) on cash flow hedge, tax	75	457	0
Reclassification adjustment for losses (gains) included in net income, tax	$ (367)	$ (35)	$ 0

Derivatives - Schedule of Derivative Financial Instruments in Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other assets \| Derivatives not designated as hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 72,572	$ 34,674
Derivative asset, fair value	998	1,311
Other assets \| Cash Flow Hedging \| Derivatives designated as hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	100,000
Derivative asset, fair value	65
Other liabilities \| Derivatives not designated as hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	72,572	34,674
Derivative liability, fair value	998	1,311
Other liabilities \| Cash Flow Hedging \| Derivatives designated as hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	150,000	50,000
Derivative liability, fair value	$ 1,047	$ 2,254

Advances and Other Borrowings (Tables)

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Schedule of Contractual Maturities of Debt

The contractual maturities of these borrowings as of December 31, 2023, are as follows (in thousands):


Due in 2024	$	272
Due in 2025	—
Total	$	272

Advances and Other Borrowings - Schedule of Contractual Maturities of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Total	$ 272,000	$ 343,100
Short-Term Debt
Short-Term Debt [Line Items]
Due in 2024	272
Due in 2025	0
Total	$ 272

Other Operating Expense (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Other Operating Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other Income and Expenses [Abstract]
FDIC & other regulatory assessment		$ 1,957	$ 958	$ 920
Historic tax credit amortization		2,526	2,526	2,717
IT related		2,058	1,980	1,306
Consultant fees		3,082	1,708	1,548
Network expense		1,810	1,693	1,592
Directors' fees		1,918	1,941	1,093
Audit expense		1,124	705	302
Legal expense		2,245	986	275
Virginia franchise tax		2,601	2,492	2,366
Marketing expense		672	1,295	1,086
Debit card expenses		776	596	795
(Gain)/loss on sale of buildings	$ (3,700)	37	(4,533)	(1,063)
Other		5,177	5,072	4,832
Total		25,983	$ 17,419	$ 17,769
Merger-related expenses		$ 3,000

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Restricted Stock Unit (RSU) Awards

The following is a summary of all the Company’s RSU awards issued under both the 2019 SIP and 2023 SIP:


Non-vested Shares	Shares	Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2023	122,440	$	48.00
Granted	25,705	67.02
Vested	(4,560)	54.07
Forfeited	—	—
Non-vested at December 31, 2023	143,585	$	51.21

Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Financial Services, Banking and Thrift [Abstract]
2024	$ 384,207
2025	140,532
2026	83,546
2027	49,354
2028	78,420
Total	$ 736,059

Other Operating Expense (Tables)

12 Months Ended

Dec. 31, 2023

Other Income and Expenses [Abstract]

Schedule of Other Operating Expense

Other operating expense from the Statements of Income for years ended December 31, 2023, December 31, 2022, and December 31, 2021, is as follows (in thousands):


	2023		2022		2021
FDIC & other regulatory assessment	$	1,957	$	958	$	920
Historic tax credit amortization	2,526		2,526		2,717
IT related	2,058		1,980		1,306
Consultant fees	3,082		1,708		1,548
Network expense	1,810		1,693		1,592
Directors' fees	1,918		1,941		1,093
Audit expense	1,124		705		302
Legal expense	2,245		986		275
Virginia franchise tax	2,601		2,492		2,366
Marketing expense	672		1,295		1,086
Debit card expenses	776		596		795
(Gain)/loss on sale of buildings	37		(4,533)		(1,063)
Other	5,177		5,072		4,832
Total	$	25,983	$	17,419	$	17,769

Parent Company Financial Information - Schedule of Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash Flows from Operating Activities
Net Income		$ 22,692	$ 44,013	$ 36,165
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation		2,464	2,000	283
Deferred income taxes		(1,453)	1,397	(1,659)
Net change in other assets		3,851	501	2,581
Net cash flows provided by operating activities		42,509	61,057	54,952
Cash Flows from Investing Activities
Net cash flows (used in) investing activities		(43,168)	(127,411)	(384,126)
Cash Flows from Financing Activities
Proceeds from employee stock purchase program		206	0	0
Dividends paid		(15,747)	(15,742)	(14,871)
Net cash flows provided by (used in) financing activities		(5,138)	39,286	177,833
(Decrease) in cash and cash equivalents		(5,797)	(27,068)	(151,341)
Beginning of year		50,295	77,363	228,704
End of year	$ 50,295	44,498	50,295	$ 77,363
Burke & Herbert Financial Services Corp.
Cash Flows from Operating Activities
Net Income	44,013	22,692
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries	(38,862)	(9,128)
Share-based compensation	481	2,464
Deferred income taxes	(105)	(539)
Net change in other assets	513	(899)
Net change in other liabilities	(104)	(906)
Net cash flows provided by operating activities	5,936	13,684
Cash Flows from Investing Activities
Net cash flows (used in) investing activities	0	0
Cash Flows from Financing Activities
Proceeds from employee stock purchase program	0	206
Dividends paid	(3,936)	(15,747)
Treasury stock transactions	0	141
Net cash flows provided by (used in) financing activities	(3,936)	(15,400)
(Decrease) in cash and cash equivalents	2,000	(1,716)
Beginning of year	0	2,000
End of year	$ 2,000	$ 284	$ 2,000

Nature of Business Activities and Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Nature of Business Activities and Significant Accounting Policies

Nature of operations and principles of consolidation

The consolidated financial statements include Burke & Herbert Financial Services Corp. (“Burke & Herbert”) and its wholly-owned subsidiary Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation.

Burke & Herbert Financial Services Corp. was organized as a Virginia corporation on September 14, 2022, to serve as the holding company for the Bank. Burke & Herbert commenced operations as a bank holding company on October 1, 2022, following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of Burke & Herbert. In September 2023, Burke & Herbert elected to be a financial holding company. As a financial holding company, Burke & Herbert is subject to regulation and supervision by the Federal Reserve. Burke & Herbert has no material operations and owns 100% of the Bank. The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “Virginia BFI”).

The Bank’s primary market area includes northern Virginia, and it has 23 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate.

Pending Merger with Summit Financial Group, Inc.

On August 24, 2023, the Company and Summit Financial Group, Inc. (“Summit”), entered into an Agreement and Plan of Reorganization and Plan of Merger (the “merger agreement”) pursuant to which Summit will merge with and into Burke & Herbert, with Burke & Herbert as the continuing corporation (the “merger”). Immediately following the merger, Summit Community Bank, Inc., a West Virginia banking corporation (“SCB”) and a wholly-owned direct subsidiary of Summit, will merge with and into the Bank, with the Bank as the continuing bank (the “bank merger,” and together with the merger, the “mergers”). In the merger, Summit shareholders will receive 0.5043 shares of Burke & Herbert common stock for each share of Summit common stock they own (the “exchange ratio”), subject to the payment of cash in lieu of fractional shares. In addition, each share of Summit series 2021 preferred stock issued and outstanding immediately prior to the effective time of the merger will be converted into the right to receive one share of a newly created series of Burke & Herbert preferred stock having rights, preferences, privileges, and voting powers and limitations and restrictions thereof that are not materially less or more favorable to the holders of the Summit series 2021 preferred stock.

On December 6th, the requisite approvals of the Company’s and Summit’s stockholders were received, and the completion of the merger remains subject to the receipt of all required regulatory approvals and the fulfillment of other customary closing conditions.

Subsequent events

The Company has evaluated subsequent events for recognition and disclosure through March 22, 2024, which is the date the financial statements were available to be issued.

Use of estimates

To prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management makes estimates and assumptions based on available information that affects the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the

reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash, cash equivalents, and cash flows

For purposes of reporting cash flows, cash and cash equivalents include cash on hand and amounts due from banks, including cash items in process of clearing with maturities fewer than 90 days. Cash flows from customer loans, federal funds purchased, securities sold under agreements to repurchase, and deposits are reported on a net basis.

Restriction on cash

No reserve balances were required at December 31, 2023, and December 31, 2022. There was no reserve requirement with the Federal Reserve as of December 31, 2023, or December 31, 2022.

Debt securities

Management determines the appropriate classification of debt securities at the time of purchase. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are reported at cost, adjusted for amortization of premiums and accretion of discounts. Debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available-for-sale and are reported at fair value. Unrealized gains and losses on investments classified as available-for-sale have been accounted for as a separate component of accumulated other comprehensive income or loss, net of the related deferred tax effect.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are recognized in interest income over the terms of the securities. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

A debt security is placed on non-accrual status at the time any principal or interest payments become more than 90 days delinquent. Interest accrued but not received for a security placed on non-accrual is reversed against interest income.

Allowance for credit losses (“ACL”) - available-for-sale debt securities

Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income.

For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit

loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income.

Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on AFS debt securities totaled $7.5 million at December 31, 2023, and is excluded from the estimate of credit losses.

Equity securities

Equity securities are carried at fair value with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical, or a similar, investment.

Due to the nature of, and restrictions placed upon, certain equity securities have been classified as restricted stock and are carried at cost. These equity securities are not subject to the classifications above.

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.

Loans held-for-sale

Loans held-for-sale are those loans the Company has the intent to sell in the foreseeable future. The Company has elected to use the fair value accounting option (“FVO”) for loans held-for-sale. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the fair value of the loans. All sales are made without recourse and are sold with servicing released.

Mortgage banking derivatives

The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (interest rate lock commitments). Interest rate lock commitments on mortgage loans to be held-for-sale are accounted for as free-standing derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 90 days. The Company protects itself from changes in interest rates through the use of best-efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to significant losses, nor will it realize significant gains related to rate lock commitments due to changes in interest rates. The Company has elected to use the FVO for best effort forward sales commitments.

Derivatives

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as respective fair values changes. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives not designated or that do not qualify for hedge accounting are reported currently in earnings as non-interest income.

Accrued settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Accrued settlements on derivatives not designated or that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still probable of occurring, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings.

The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All of the contracts to which the Company is a party settle monthly or quarterly. In addition, the Company obtains collateral above certain thresholds of the fair value of its derivatives for each dealer counterparty based upon their credit standing and the Company has netting agreements with the dealers with which it does business.

Loans

Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances, adjusted for partial charge-offs, the allowance for credit losses, and any deferred fees and costs on originated loans. Accrued interest receivable totaled $8.8 million on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct original costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

For all loan portfolio segments, the accrual of interest income is discontinued at the time the loan becomes 90 days delinquent, unless the loan is well-secured and in process of collection. Loans also are placed on non-accrual if collection of principal or interest is considered impaired. Past-due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest income accrued, but not received, for loans placed on non-accrual is reversed against interest income. Interest income 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. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, a history of on-time payments has again been established, and future payments are reasonably assured.

Concentration of credit risk

Substantially all of the Company’s loans and commitments have been granted to customers in the Company’s market area; therefore, the Company’s exposure to credit risk is significantly affected by changes in the market area’s economy. Our customers are general depositors of the Company from the same market area. Some investments in state and municipal securities also involve governmental entities within the Company’s market area. The distribution of commitments to extend credit approximates the distribution of loans outstanding.

Allowance for credit losses - loans

The allowance for credit losses, in management’s judgement, reflects expected credit losses in the loan portfolio as of the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income.

The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio.

The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, the ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates.

Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Qualitative risk factors considered by management include the following:

•Nature and volume of loans;

•Concentrations of credit; and

•Delinquency trends.

Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A

specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan.

Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments.

Allowance for credit losses - off-balance sheet credit exposures

On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets.

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 up to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method (or accelerated) method with useful lives ranging from 3 to 10 years. Maintenance and repairs are charged to expense as incurred and major improvements are capitalized.

Company-owned life insurance

The Company has purchased life insurance policies on certain employees. Company-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.

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.

Other real estate owned (OREO)

Assets acquired through foreclosure or other proceedings are initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost. After foreclosure, valuations periodically are performed by management and the foreclosed assets held-for-sale are carried at the lower of cost or fair value less estimated costs of disposal. Any write-down to fair value at the time of transfer to foreclosed assets is charged

to the allowance for credit losses. All subsequent gains on sale, losses on sale, and additional write-downs are included in net gains/(losses) on other real estate owned. Revenue and expenses from the operations of foreclosed assets are included in other non-interest income and other operating expenses.

Income taxes

The Company accounts for income taxes in accordance with income tax accounting guidance. The Company has adopted the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions.

The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially, and subsequently, measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

Pension plan

The Company has a non-contributory defined benefit pension plan that was frozen to new participants on June 1, 2005. The Company’s funding policy for the defined benefit plan is to make annual contributions to the Plan in amounts that are determined based on actuarial valuations and recommendations and which meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974.

Authoritative accounting literature requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income. The funded status of a benefit plan will be measured as the difference between plan assets at fair value and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation. For any other postretirement plan, the benefit obligation is the accumulated postretirement benefit obligation. Authoritative accounting literature also requires an employer to measure the funded status of a plan as of the date of its year-end balance sheet. The guidance also requires additional disclosure in the notes to financial statements about certain effects on net periodic benefit cost for the next fiscal year that arises from delayed recognition of the gains or losses, prior service costs or credits, and a transition asset or obligation.

401(k) plan & other plans

The Company also has a defined contribution plan (The Investment and Savings Plan) with a salary deferral provision, which covers all employees in the month following their date of hire if they have reached the age of 18. The 401(k) expense is the amount of the matching contributions. For the deferred compensation and supplemental retirement plan, the expense allocates the benefits over the 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. The Company’s capital structure includes a share-based incentive plan, and an employee stock purchase plan, which may be dilutive to earnings per share (“EPS”). Diluted EPS is calculated by assuming dilution of common shares and adjusting common shares for compensation cost attributable to the share-based compensation plan and employee stock purchase plan. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements.

Trust assets and fees

Assets of the trust department, other than trust cash on deposit at the Company, are not included in these financial statements because they are not assets of the Company. Trust fees are recognized in income using the accrual method.

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 that there are currently any such matters that will have a material effect on the financial statements.

Comprehensive income (loss)

Comprehensive income (loss) consists of net income and other comprehensive income (loss), net of tax. Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, unrealized gains and losses on cash flow hedges, and changes in the funded status of the pension plan, which are also recognized as separate components of equity.

Leases

Leases are classified as operating or finance leases at the lease commencement date. The Company leases certain locations for its operations. The Company records leases on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any impairment of the right-of-use asset. The discount rate used in determining the lease liability is based upon incremental borrowing rates the Company could obtain for similar loans as of the date of commencement or renewal. The Company does not record short-term leases with an initial lease term of one year or less on the consolidated balance sheets.

At lease inception, the Company determines the lease term by considering the non-cancelable lease term and all optional renewal periods that the Company is reasonably certain to renew. The lease term is also used to calculate straight-line lease expense. Leasehold improvements are amortized over the shorter of the useful life and the estimated lease term. The Company’s leases do not contain residual value guarantees or material variable lease payments that will impact the Company’s ability to pay dividends or cause the Company to incur additional material expenses.

Operating lease expense consists of a single lease cost allocated over the remaining lease term on a straight-line basis, variable lease expense, and any impairment of the right-of-use asset. Lease expense is included in occupancy expense on the Company’s consolidated statements of income. The Company’s variable lease expense includes rent escalators that are based on market conditions defined in the lease agreements. The amortization of the right-of-use asset arising from finance leases is expensed through occupancy expense and the interest on the related lease liability is expensed through other interest expense on the Company’s consolidated statements of income.

Fair value of financial instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions. 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 the estimates.

Share-based compensation

Compensation cost is recognized for restricted stock units (“RSUs”) issued to employees, based on the fair value of these awards at the date of grant. The Company RSUs awards are all classified as equity under U.S. GAAP. 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 for all share-based compensation plans.

Operating segment reporting

The Company operates in one segment – Community Banking and the financial performance of this one segment is used to make resource allocations and performance decisions. While the chief decision-maker monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Individual operating results are not reviewed by senior management to make resource allocation or performance decisions. Therefore, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

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 shareholder’s equity.

Adoption of New Accounting Standards

On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”), as amended, which replaces the incurred loss methodology with an expected credit loss methodology that is referred to as the current expected credit loss methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts, including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected.

In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not that they will be required to sell.

The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods

beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP.

The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the ACL is presented at the loan segment level (in thousands):


	January 1, 2023
	Reserves under Incurred Loss Model		Reserves under CECL Model		Impact of CECL Adoption
Financial Assets:
Commercial real estate	$	15,477	$	18,163	$	2,686
Owner-occupied commercial real estate	635		629		(6)
Acquisition, construction & development	2,082		1,442		(640)
Commercial & industrial	438		675		237
Single family residential (1-4 units)	2,379		4,040		1,661
Consumer non-real estate and other	28		215		187
Unallocated reserve	0		0		0
Allowance for credit losses on loans	$	21,039	$	25,164	$	4,125
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure	$	—	$	275	$	275

The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption.

The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which generally occurs when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest.

On January 1, 2023, the Company adopted Accounting Standard Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 addresses areas identified by the FASB as part of its implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors that have adopted the CECL model and enhance the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require that the Company disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the standard prospectively, and it did not have a material impact on the financial statements.

In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815), Fair Value Hedging - Portfolio Layer Method. ASU 2022-01 clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets and is intended to better align hedge accounting with an organization’s risk management strategies. In 2017, FASB issued ASU 2017-12 to better align the economic results of risk management activities with hedge accounting. One of the major provisions of that standard was the addition of the last-of-layer hedging method. For a closed portfolio of fixed-rate-prepayable financial assets of one or more beneficial interests secured by a portfolio of prepayable financial instruments, such as mortgages or mortgage-backed securities, the last-of-layer method allows an entity to hedge its exposure to fair value changes due to the changes in interest rates for a portion of the portfolio that is not expected to be affected by prepayments, defaults, and other events affecting

the timing and amount of cash flows. ASU 2022-01 renames that method the portfolio layer method. ASU 2022-01 was effective January 1, 2023.

Newly Issued not yet Adopted Accounting Standards

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. We do not expect the adoption of ASU 2023-06 to have a material impact on our consolidated financial statements.

In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. These amendments permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The ASU is effective for public business entities for fiscal years beginning after December 15, 2024, including interim periods with those fiscal years. Early adoption is permitted for all entities in any interim period. The amendments in this ASU must be applied on either a modified retrospective or a retrospective basis (except for LIHTC investments not accounted for using the proportional amortization method). A reporting entity that has LIHTC investments that are no longer permitted to use (1) the cost method guidance in paragraph 323-740-25-2A, (2) the equity method example in paragraphs 323-740-55-8 through 55-9, or (3) the delayed equity contribution guidance in paragraphs 323-740-25-3 must either use its general transition method (modified retrospective or retrospective) or apply a prospective approach. We do not expect the adoption of ASU 2023-02 to have a material impact on our consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurements (Topic 820): Fair Value Measurements of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments also require some additional disclosures for equity securities that are subject to contractual sale restrictions. The amendments in this ASU are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. The amendments in this ASU should be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. We do not expect the adoption of ASU 2022-03 to have a material impact on our consolidated financial statements.

Earnings Per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The Company uses the treasury stock method as described by ASC 260 - Earnings Per Share for each dilutive instrument when computing diluted earnings per share.

The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders.


	2023		2022		2021
Net income (in thousands)	$	22,692	$	44,013	$	36,165

Weighted average number of shares	7,428,042		7,425,088		7,424,405
Options effect of dilutive shares	78,813		42,629		5,659
Weighted average dilutive shares	7,506,855		7,467,717		7,430,064

Basic EPS	$	3.05	$	5.93	$	4.87
Diluted EPS	3.02		5.89		4.87

Stock awards equivalent to 503, zero, and 462 shares of Common Stock were not considered in computing diluted earnings per common share for 2023, 2022, and 2021, respectively, because they were antidilutive.

Qualified Affordable Housing Project and Historic Tax Investments	12 Months Ended
	Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Qualified Affordable Housing Project and Historic Tax Investments	Qualified Affordable Housing Project and Historic Tax Investments The Company invests in qualified affordable housing projects. At December 31, 2023, and December 31, 2022, the balance of the investment for qualified affordable housing projects was $18.0 million and $23.5 million, respectively. These balances are reflected in the other assets line on the Consolidated Balance Sheets. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $0.7 million and $0.8 million at December 31, 2023, and December 31, 2022, respectively. The Company expects to fulfill the majority of these commitments by 2024. During the year ended December 31, 2023, December 31, 2022, and December 31, 2021, the Company recognized amortization expense of $5.6 million, $6.1 million, and $6.8 million, respectively, which $3.1 million, $3.6 million, and $4.1 million, respectively, qualified for the proportional amortization method and was included in income tax expense on the Consolidated Statements of Income. During the year ended December 31, 2023, December 31, 2022, and December 31, 2021, $2.5 million, $2.5 million, and $2.7 million, respectively, was included in other non-interest expense on the Consolidated Statements of Income related to historic tax credit investments that do not qualify for the proportional amortization method.

Derivatives - Schedule of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (“AOCI”) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) recognized in OCI on derivative and in OCI included component	$ (358)	$ (2,178)	$ 0
Amount of gain or (loss) reclassified from AOCI into income and income included component	(1,749)	(167)	0
Amount of Gain or (Loss) Recognized in OCI Excluded Component	0	0	0
Interest Rate Products \| Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) recognized in OCI on derivative and in OCI included component	(329)	(2,178)	0
Amount of gain or (loss) reclassified from AOCI into income and income included component	(1,749)	(167)	0
Amount of Gain or (Loss) Recognized in OCI Excluded Component	0	0	0
Interest Rate Products \| Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) recognized in OCI on derivative and in OCI included component	(29)
Amount of gain or (loss) reclassified from AOCI into income and income included component	0	$ 0	$ 0
Amount of Gain or (Loss) Recognized in OCI Excluded Component	$ 0

Common Stock Transactions (Details) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Nov. 15, 2022 shares	Aug. 31, 2021 USD ($) shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares
Class of Stock [Line Items]
Treasury stock reissued (in shares)			2,950	2,000
Stockholders' equity note, stock split, conversion ratio	40
Additional shares of common stock (in shares)	39
Treasury stock, shares acquired (in shares)					90,040
Treasury stock value acquired \| $					$ 4,400
Aggregate cost \| $			$ 141	$ 97	$ 1,115
Common stock, dividends, per share, declared (in usd per share) \| $ / shares			$ 2.12	$ 2.12	$ 2.00
Restricted Stock Units (RSUs)
Class of Stock [Line Items]
Treasury stock reissued (in shares)		1,720
Director
Class of Stock [Line Items]
Treasury stock reissued (in shares)		64,000
Aggregate cost \| $		$ 3,200
Minimum
Class of Stock [Line Items]
Shares acquired (in dollars per share) \| $ / shares					45.25
Maximum
Class of Stock [Line Items]
Shares acquired (in dollars per share) \| $ / shares					$ 50.00

Defined Benefit Pension Plan (Tables)

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Schedule of Plan’s Status and Related Disclosures and Assumptions Used to Determine Pension Benefit Obligation

The following tables set forth the Plan’s status and related disclosures (in thousands):


	2023		2022
Changes in benefit obligation:
Benefit obligation at beginning of year	$	30,225	$	42,297
Service cost	469		786
Interest cost	1,471		1,141
Actuarial (gain) loss	775		(12,549)
Distributions	(1,440)		(1,450)
Benefit obligation at end of year	$	31,500	$	30,225

Change in plan assets:
Fair value of plan assets at beginning of year	$	31,968	$	46,017
Adjustment to beginning of year fair value	—		—
Actual return on plan assets	2,653		(12,599)
Employer contribution	—		—
Distributions	(1,440)		(1,450)
Fair value of plan assets at end of year	$	33,181	$	31,968

Funded status recognized as accrued pension cost	$	1,681	$	1,743

Amounts recognized in accumulated other comprehensive (income) loss:
Net loss	$	7,273	$	8,901
Deferred income tax benefit	(1,527)		(1,869)
Total amount recognized	$	5,746	$	7,032

Accumulated benefit obligation	$	29,372	$	28,184

At December 31, 2023, December 31, 2022, and December 31, 2021, the assumptions used to determine the pension benefit obligation were as follows:


	2023		2022		2021
Discount rate	4.80	%	5.00	%	2.76	%
Rate of compensation increase	3.00		3.00		3.50

Schedule of Components of Net Periodic Benefit Cost

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


	2023		2022		2021
Components of net periodic pension cost:
Service cost	$	469	$	786	$	998
Interest cost	1,471		1,141		1,042
Expected return on plan assets	(879)		(1,539)		(1,612)
Amortization of prior service costs	—		—		—
Amortization of net loss	630		309		393
Net periodic pension costs	$	1,691	$	697	$	821

Other changes recognized in other comprehensive (income) loss
Net loss	$	(998)	$	1,589	$	7
Amortization of net loss	(630)		(309)		(393)
Deferred tax expense (benefit)	342		(269)		81
Total recognized in accumulated other comprehensive (income) loss	$	(1,286)	$	1,011	$	(305)

Total recognized in net periodic pension costs and other comprehensive loss	$	405	$	1,708	$	516

Schedule of Other Amounts Recognized in Other Comprehensive Income

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


	2023		2022		2021
Components of net periodic pension cost:
Service cost	$	469	$	786	$	998
Interest cost	1,471		1,141		1,042
Expected return on plan assets	(879)		(1,539)		(1,612)
Amortization of prior service costs	—		—		—
Amortization of net loss	630		309		393
Net periodic pension costs	$	1,691	$	697	$	821

Other changes recognized in other comprehensive (income) loss
Net loss	$	(998)	$	1,589	$	7
Amortization of net loss	(630)		(309)		(393)
Deferred tax expense (benefit)	342		(269)		81
Total recognized in accumulated other comprehensive (income) loss	$	(1,286)	$	1,011	$	(305)

Total recognized in net periodic pension costs and other comprehensive loss	$	405	$	1,708	$	516

Schedule of Assumptions Used to Determine Net Periodic Pension Cost

For the years ended December 31, 2023, December 31, 2022, and December 31, 2021, the assumptions used to determine net periodic pension cost were as follows:


	2023		2022		2021
Discount rate	4.80	%	5.00	%	2.76	%
Expected long-term rate of return on plan assets	3.75		3.75		3.75
Annual salary increase	3.00		3.00		3.50

Schedule of Pension Plan Asset Allocations

The Company’s pension plan asset allocations at December 31, 2023, and December 31, 2022, were as follows:


	2023		2022
Equity securities	9.6	%	10.0	%
Debt securities & cash equivalents	90.4	%	90.0	%
Total	100.0	%	100.0	%

Schedule of Fair Value of Plan Assets

As of December 31, 2023, and December 31, 2022, the fair value of plan assets was as follows (in thousands):


	December 31, 2023
	Fair Value Measurements Using
	Level 1		Level 2		Level 3		Assets at Fair Value
Cash and cash equivalents	$	122	$	—	$	—	$	122
Equity securities	—		3,209		—		3,209
Debt securities	—		29,859		—		29,859
Total pension assets	$	122	$	33,068	$	—	$	33,190


	December 31, 2022
	Fair Value Measurements Using
	Level 1		Level 2		Level 3		Assets at Fair Value
Cash and cash equivalents	$	102	$	—	$	—	$	102
Equity securities	—		3,181		—		3,181
Debt securities	—		28,749		—		28,749
Total pension assets	$	102	$	31,930	$	—	$	32,032

Schedule of Estimated Future Benefit Payments

Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands):


Years ending December 31,
2024	$	1,421
2025	1,406
2026	1,452
2027	1,536
2028	1,691
Following 5 years	$	9,413

Share-Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards, subject to approval. Total compensation expense that has been charged against income for the share-based awards granted was $2.4 million, $2.0 million, and $283 thousand for 2023, 2022, and 2021, respectively. The total income tax benefit was $506 thousand, $421 thousand, and $59 thousand for 2023, 2022, and 2021, respectively.

2019 Stock Incentive Plan

In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2019 SIP authorized 240,000 units to be issued and the Company has a practice of using shares held as treasury stock to satisfy these awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards.

Under the 2019 SIP, the Company has issued restricted stock unit (“RSU”) awards that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 25,705, 13,160, and 106,040 shares were issued in 2023, 2022, and 2021, respectively.

For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three to five years.

The Board, from time to time, approves performance-based RSU awards that may be earned between a three to five year performance period. Whether units are earned at the end of the performance period will be determined based on the achievement of a market capitalization target over the performance period. If the condition is not achieved, the grant recipient will receive 50% of the units upon fulfilling the required service time. If the performance condition is achieved, the grant recipient will receive 100% of the units granted. The market capitalization target will be determined by the Board.

The fair value for performance-based RSU awards was determined by using a Monte Carlo simulation analysis to estimate the achievement of the market capitalization target determined by the Board. The Monte Carlo simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts.

2023 Stock Incentive Plan

In 2023, a new stock incentive plan (“2023 SIP”) was approved by the Board of directors and shareholders. Upon the plan’s shareholder approval date of March 30, 2023, no further share-based awards will be issued under the 2019 SIP. The plan provides for the issuance of share-based awards to directors and employees of the Company. The 2023 SIP authorized the issuance of 250,000 shares, subject to an annual increase in available shares. As of December 31, 2023, one share-based award of 1,000 shares has been issued under the 2023 SIP.

The following is a summary of all the Company’s RSU awards issued under both the 2019 SIP and 2023 SIP:


Non-vested Shares	Shares	Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2023	122,440	$	48.00
Granted	25,705	67.02
Vested	(4,560)	54.07
Forfeited	—	—
Non-vested at December 31, 2023	143,585	$	51.21

As of December 31, 2023, there was $2.9 million of total unrecognized compensation costs related to non-vested shares granted under the 2019 SIP and 2023 SIP. The cost is expected to be recognized over a weighted average period of 1.44 years. There were 89,135 shares remaining to be issued from the 2019 SIP which were rolled into the 2023 SIP as of the approval date of the 2023 SIP at March 30, 2023.

2023 Employee Stock Purchase Plan

In 2023, a new employee stock purchase plan (“2023 ESPP”) was approved by the Board of directors and shareholders. Upon the plan’s shareholder approval date of March 30, 2023, the 2023 ESPP reserved 250,000 shares of common stock for issuance to employees. Whole shares are sold to participants in the plan at 85% of the lower of the stock price at the beginning or end of each semi-annual offering period that began on September 1, 2023. Eligible employees may purchase shares in an amount that does not exceed the lesser of the IRS limit of $25,000 or 15% of their annual salary. At December 31, 2023, no shares have been purchased. The Company recognized $64 thousand of expense captured in salaries and wages line item on the Consolidated Statements of Income for the year ended December 31, 2023.

Advances and Other Borrowings

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Advances and Other Borrowings

The Company had borrowings of $272.0 million and $343.1 million at December 31, 2023, and December 31, 2022, respectively. At December 31, 2023, the interest rate on this debt ranged from 4.38% to 5.57%. At December 31, 2022, the interest rate on this debt ranged from 4.13% to 4.57%. The weighted average interest rate at December 31, 2023, and December 31, 2022, was 4.75% and 4.42%, respectively. The average balance outstanding during 2023 and 2022 was $293.9 million and $269.5 million, respectively. The Company has a finance lease liability that is not included in these balances - See Note 11 — Leased Property for a discussion of this liability that is included in the accrued interest and other liabilities line in the Consolidated Balance Sheets. The Company’s short-term borrowings from time to time may consist of advances from the FHLB of Atlanta, unsecured lines from Correspondent Banks, and secured lines from the Federal Reserve Discount Window.

The Company has available lines of credit with the FHLB of Atlanta and unsecured federal funds lines of credit from correspondent banking relationships. Through these sources, the Company has unused borrowing capacity of $987.0 million as of December 31, 2023. The advances on credit lines are secured by both securities and loans. The lendable collateral value of securities and loans pledged against available lines of credit as of December 31, 2023, and December 31, 2022, was $797.8 million and $698.1 million, respectively. As of December 31, 2023, all of the Company’s borrowings will mature within one calendar year.

The contractual maturities of these borrowings as of December 31, 2023, are as follows (in thousands):


Due in 2024	$	272
Due in 2025	—
Total	$	272

- 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://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Nature of Business Activities and Significant Accounting Policies - Narrative (Details)		12 Months Ended
	Aug. 24, 2023 shares	Dec. 31, 2023 USD ($) branch segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of branches \| branch		23
Reserve balance requirements		$ 0	$ 0
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]		Accrued interest receivable
Accrued interest receivable on available-for-sale debt securities		$ 7,500,000
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]		Accrued interest receivable
Accrued interest receivable on loans		$ 8,800,000
Number of operating segment \| segment		1
Number of reportable segment \| segment		1
Allowance for credit losses on loans		$ 25,301,000	21,039,000	$ 31,709,000	$ 32,697,000
Decrease in retained earnings, net of deferred taxes		$ (427,333,000)	(424,391,000)
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans			4,125,000
Credit losses on unfunded commitments			274,800
Decrease in retained earnings, net of deferred taxes			$ 3,400,000
Summit Financial Group, Inc
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Common stock portion, number of Burke & Herbert stock for each share of Summit common stock converted (in shares) \| shares	0.5043
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Term of issuance of loan commitment		15 days
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Term of issuance of loan commitment		90 days
Building and Building Improvements
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life		40 years
Furniture and Fixtures \| Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life		3 years
Furniture and Fixtures \| Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life		10 years
Burke & Herbert Bank & Trust Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Subsidiary, ownership percentage, parent		100.00%

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest income
Loans, including fees	$ 101,800	$ 73,640	$ 73,170
Taxable securities	37,179	29,616	17,537
Tax-exempt securities	5,615	8,940	9,907
Other interest income	2,302	437	206
Total interest income	146,896	112,633	100,820
Interest expense
Deposits	39,195	3,742	2,746
Borrowed funds	13,856	5,136	1,432
Other interest expense	86	63	39
Total interest expense	53,137	8,941	4,217
Net interest income	93,759	103,692	96,603
Credit loss expense - loans and available-for-sale securities	235	(7,466)	(1,002)
Credit loss expense - off-balance sheet credit exposures	(21)	0	0
Total provision for (recapture of) credit losses	214	(7,466)	(1,002)
Net interest income after credit loss expense	93,545	111,158	97,605
Non-interest income
Net gains (losses) on securities	(112)	(454)	(4)
Income from company-owned life insurance	2,844	2,656	2,325
Other non-interest income	3,196	2,721	3,440
Total non-interest income	17,952	17,087	17,251
Non-interest expense
Salaries and wages	39,247	39,438	37,099
Pensions and other employee benefits	9,401	7,700	7,621
Occupancy	6,035	5,621	6,444
Equipment rentals, depreciation and maintenance	5,770	5,768	5,481
Other operating	25,983	17,419	17,769
Total non-interest expense	86,436	75,946	74,414
Income before income taxes	25,061	52,299	40,442
Income tax expense	2,369	8,286	4,277
Net income	$ 22,692	$ 44,013	$ 36,165
Earnings per common share:
Basic (in usd per share)	$ 3.05	$ 5.93	$ 4.87
Diluted (in usd per share)	$ 3.02	$ 5.89	$ 4.87
Fiduciary and wealth management
Non-interest income
Revenue from contract with customer	$ 5,354	$ 5,309	$ 5,162
Service charges and fees
Non-interest income
Revenue from contract with customer	$ 6,670	$ 6,855	$ 6,328

Derivatives - Schedule of Effect of the Company’s Derivative Financial Instruments on the Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) reclassified from AOCI into income and income included component	$ (1,749)	$ (167)	$ 0
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	(895)	(167)	0
Interest Income \| Interest contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedging items	(1,025)	0	0
Derivatives designated as hedging instruments	1,879	0	0
Amount of gain or (loss) reclassified from AOCI into income and income included component	(1,749)	(167)	0
Amount of Gain or (Loss) Reclassified from AOCI into Income - Excluded Component	0	0	0
Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	0	0	0
Interest Expense \| Interest contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedging items	0	0	0
Derivatives designated as hedging instruments	0	0	0
Amount of gain or (loss) reclassified from AOCI into income and income included component	0	0	0
Amount of Gain or (Loss) Reclassified from AOCI into Income - Excluded Component	$ 0	$ 0	$ 0

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares Used in Computing Earnings Per Share and the Effect of Weighted Average Number of Shares Dilutive Potential Common Stock


	2023		2022		2021
Net income (in thousands)	$	22,692	$	44,013	$	36,165

Weighted average number of shares	7,428,042		7,425,088		7,424,405
Options effect of dilutive shares	78,813		42,629		5,659
Weighted average dilutive shares	7,506,855		7,467,717		7,430,064

Basic EPS	$	3.05	$	5.93	$	4.87
Diluted EPS	3.02		5.89		4.87

Defined Benefit Pension Plan - Schedule of Assumptions Used to Determine Net Periodic Pension Cost (Details) - Pension Plan	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.80%	5.00%	2.76%
Expected long-term rate of return on plan assets	3.75%	3.75%	3.75%
Annual salary increase	3.00%	3.00%	3.50%

Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

Credit Loss [Abstract]

Schedule of Activity in the ACL, Including the Impact of the Adoption of CECL

The following tables present the activity in the ACL, including the impact of the adoption of CECL, for the year ended December 31, 2023, and the activity for the allowance for loan losses for the years ended December 31, 2022, and December 31, 2021 (in thousands).


	Commercial real estate		Owner-occupied commercial real estate		Acquisition, construction & development		Commercial & industrial		Single family residential (1-4 units)		Consumer non-real estate and other		Unallocated		Total
December 31, 2023
Beginning balance, prior to adoption of CECL	$	15,477	$	635	$	2,082	$	438	$	2,379	$	28	$	—	$	21,039
Impact of adoption CECL	2,686		(6)		(640)		237		1,661		187		—		4,125
Provision for (recapture of) credit losses	2,432		154		(1,074)		(1)		(1,295)		19		—		235
Charge-offs	—		—		—		(29)		—		(165)		—		(194)
Recoveries	38		—		—		—		52		6		—		96
Balance, end of period	$	20,633	$	783	$	368	$	645	$	2,797	$	75	$	—	$	25,301

	Commercial real estate		Owner-occupied commercial real estate		Acquisition, construction & development		Commercial & industrial		Single family residential (1-4 units)		Consumer non-real estate and other		Unallocated		Total
December 31, 2022
Balance, beginning of period	$	25,112	$	611	$	2,189	$	165	$	2,434	$	18	$	1,180	$	31,709
Provision for (recapture of) loan losses	(6,391)		24		(107)		293		(239)		134		(1,180)		(7,466)
Charge-offs	(3,282)		—		—		(20)		—		(148)		—		(3,450)
Recoveries	38		—		—		—		184		24		—		246
Balance, end of period	$	15,477	$	635	$	2,082	$	438	$	2,379	$	28	$	—	$	21,039

	Commercial real estate		Owner-occupied commercial real estate		Acquisition, construction & development		Commercial & industrial		Single family residential (1-4 units)		Consumer non-real estate and other		Unallocated		Total
December 31, 2021
Balance, beginning of period	$	23,356	$	1,196	$	3,075	$	73	$	3,757	$	60	$	1,180	$	32,697
Provision for (recapture of) loan losses	1,870		(602)		(886)		72		(1,490)		34		—		(1,002)
Charge-offs	(127)		—		—		—		(16)		(99)		—		(242)
Recoveries	13		17		—		20		183		23		—		256
Balance, end of period	$	25,112	$	611	$	2,189	$	165	$	2,434	$	18	$	1,180	$	31,709

Schedule of Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method

The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment

and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands).


	Commercial real estate		Owner-occupied commercial real estate		Acquisition, construction & development		Commercial & industrial		Single family residential (1-4 units)		Consumer non-real estate and other		Unallocated		Total
December 31, 2022
Allowance for loan losses
Individually evaluated for impairment	$	41	$	102	$	—	$	—	$	96	$	—	$	—	$	239
Collectively evaluated for impairment	15,436		533		2,082		438		2,283		28		—		20,800
Total ending allowance balance	$	15,477	$	635	$	2,082	$	438	$	2,379	$	28	$	—	$	21,039

Loan balance:
Individually evaluated for impairment	$	331	$	2,580	$	—	$	—	$	6,158	$	—	$	—	$	9,069
Collectively evaluated for impairment	1,108,984		124,534		94,450		53,514		493,204		3,466		—		1,878,152
Total ending loan balance	$	1,109,315	$	127,114	$	94,450	$	53,514	$	499,362	$	3,466	$	—	$	1,887,221

The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022 (in thousands).


	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized (1)
December 31, 2022
With no related allowance recorded:
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Owner-occupied commercial real estate	1,184		1,394		—		1,291		97
Acquisition, construction & development	—		—		—		—		—
Commercial & industrial	—		—		—		—		—
Single family residential (1-4 units)	5,151		5,576		—		5,131		213
Consumer non-real estate and other	—		—		—		—		—
Subtotal	$	6,335	$	6,970	$	—	$	6,422	$	310

With an allowance recorded:
Commercial real estate	$	331	$	331	$	41	$	350	$	23
Owner-occupied commercial real estate	1,397		1,397		102		1,420		74
Acquisition, construction & development	—		—		—		—		—
Commercial & industrial	—		—		—		—		—
Single family residential (1-4 units)	1,007		1,141		96		1,033		57
Consumer non-real estate and other	—		—		—		—		—
Subtotal	$	2,735	$	2,869	$	239	$	2,803	$	154

(1)Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022.

The following tables present information about collateral-dependent loans that were individually evaluated for purposes of determining the ACL as of December 31, 2023 (in thousands).


	Collateral Dependent Loans
	With Allowance				With No Related Allowance		Total
	Amortized Cost		Related Allowance		Amortized Cost		Amortized Cost		Related Allowance
December 31, 2023
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Owner-occupied commercial real estate	—		—		1,000		1,000		—
Acquisition, construction & development	—		—		—		—		—
Commercial & industrial	—		—		—		—		—
Single family residential (1-4 units)	—		—		2,744		2,744		—
Consumer non-real estate and other	—		—		—		—		—
Total	$	—	$	—	$	3,744	$	3,744	$	—

Schedule of Aging and Nonaccrual Loans of the Recorded Investment in Past Due Loans

The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of December 31, 2023, and December 31, 2022, by portfolio segment (in thousands).


	December 31, 2023
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total Past Due		Current Loans		Total Loans		90 Days Past Due & Still Accruing		Non-accrual loans
Commercial real estate	$	10,496	$	—	$	—	$	10,496	$	1,298,588	$	1,309,084	$	—	$	—
Owner-occupied commercial real estate	—		—		790		790		130,591		131,381		—		1,000
Acquisition, construction & development	—		—		—		—		49,091		49,091		—		—
Commercial & industrial	195		364		—		559		67,288		67,847		—		—
Single family residential (1-4 units)	1,657		289		1,532		3,478		524,502		527,980		—		2,744
Consumer non-real estate and other	3		—		—		3		2,370		2,373		—		—
Total	$	12,351	$	653	$	2,322	$	15,326	$	2,072,430	$	2,087,756	$	—	$	3,744

	December 31, 2022
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total Past Due		Current Loans		Total Loans		90 Days Past Due & Still Accruing		Non-accrual loans
Commercial real estate	$	—	$	—	$	—	$	—	$	1,109,315	$	1,109,315	$	—	$	—
Owner-occupied commercial real estate	—		—		—		—		127,114		127,114		—		1,184
Acquisition, construction & development	—		—		—		—		94,450		94,450		—		—
Commercial & industrial	—		—		—		—		53,514		53,514		—		—
Single family residential (1-4 units)	1,403		154		546		2,103		497,259		499,362		—		4,313
Consumer non-real estate and other	—		4		—		4		3,462		3,466		—		—
Total	$	1,403	$	158	$	546	$	2,107	$	1,885,114	$	1,887,221	$	—	$	5,497

Schedule of Loans by Credit Quality Indicators

The following table presents the amortized cost basis of the loan portfolio by year of origination, loan class, and credit quality, as of December 31, 2023 (in thousands).


	Term Loans
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial real estate
Pass	$	195,857	$	261,817	$	166,253	$	22,791	$	75,170	$	416,774	$	36,761	$	1,175,423
Special Mention	—		12,235		35,449		—		4,876		—		—		52,560
Substandard	—		15,420		12,847		—		2,209		50,625		—		81,101
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	195,857	$	289,472	$	214,549	$	22,791	$	82,255	$	467,399	$	36,761	$	1,309,084

Year to date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Owner-occupied commercial real estate
Pass	$	9,309	$	31,725	$	11,229	$	14,103	$	10,279	$	43,616	$	6,184	$	126,445
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		532		—		—		—		4,404		—		4,936
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	9,309	$	32,257	$	11,229	$	14,103	$	10,279	$	48,020	$	6,184	$	131,381

Year to date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Acquisition, construction & development
Pass	$	8,535	$	24,286	$	13,698	$	—	$	728	$	241	$	1,603	$	49,091
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	8,535	$	24,286	$	13,698	$	—	$	728	$	241	$	1,603	$	49,091

Year to date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial & industrial
Pass	$	29,111	$	15,204	$	4,344	$	162	$	15	$	1,335	$	16,854	$	67,025
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		822		—		—		—		—		822
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	29,111	$	15,204	$	5,166	$	162	$	15	$	1,335	$	16,854	$	67,847

Year to date gross charge-offs	$	—	$	—	$	—	$	29	$	—	$	—	$	—	$	29


Single family residential (1-4 units)
Pass	$	78,222	$	122,067	$	60,202	$	32,158	$	40,938	$	137,376	$	54,273	$	525,236
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		291		243		—		2,171		39		2,744
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	78,222	$	122,067	$	60,493	$	32,401	$	40,938	$	139,547	$	54,312	$	527,980

Year to date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer non-real estate and other
Pass	$	334	$	150	$	43	$	151	$	386	$	325	$	984	$	2,373
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	334	$	150	$	43	$	151	$	386	$	325	$	984	$	2,373

Year to date gross charge-offs	$	—	$	165	$	—	$	—	$	—	$	—	$	—	$	165

Totals	$	321,368	$	483,436	$	305,178	$	69,608	$	134,601	$	656,867	$	116,698	$	2,087,756

The value of outstanding loans by credit quality indicators as of December 31, 2022, were as follows (in thousands):


	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2022
Commercial real estate	$	1,011,025	$	62,907	$	35,383	$	—	$	—	$	1,109,315
Owner-occupied commercial real estate	121,621		1,963		3,530		—		—		127,114
Acquisition, construction & development	68,220		836		25,394		—		—		94,450
Commercial & industrial	53,273		—		241		—		—		53,514
Single family residential (1-4 units)	494,994		55		4,313		—		—		499,362
Consumer non-real estate and other	3,466		—		—		—		—		3,466
Total	$	1,752,599	$	65,761	$	68,861	$	—	$	—	$	1,887,221

Other Operating Expense

12 Months Ended

Dec. 31, 2023

Other Income and Expenses [Abstract]

Other Operating Expense

Other operating expense from the Statements of Income for years ended December 31, 2023, December 31, 2022, and December 31, 2021, is as follows (in thousands):


	2023		2022		2021
FDIC & other regulatory assessment	$	1,957	$	958	$	920
Historic tax credit amortization	2,526		2,526		2,717
IT related	2,058		1,980		1,306
Consultant fees	3,082		1,708		1,548
Network expense	1,810		1,693		1,592
Directors' fees	1,918		1,941		1,093
Audit expense	1,124		705		302
Legal expense	2,245		986		275
Virginia franchise tax	2,601		2,492		2,366
Marketing expense	672		1,295		1,086
Debit card expenses	776		596		795
(Gain)/loss on sale of buildings	37		(4,533)		(1,063)
Other	5,177		5,072		4,832
Total	$	25,983	$	17,419	$	17,769

The Company incurred merger-related expenses of $3.0 million for the year ended December 31, 2023. The substantial majority of the merger-related expenses are included in the consultant fees and legal expense line items detailed in other operating expenses.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)


	December 31, 2023
	Gains and Losses on Cash Flow Hedges		Unrealized Gains and Losses on Available-for-Sale Securities		Defined Benefit Pension Items		Accumulated Other Comprehensive Income
Beginning Balance	$	(1,589)	$	(130,875)	$	(7,031)	$	(139,495)
Net unrealized gains (losses)	(283)		32,718		—		32,435
Less: net realized (gains) losses reclassified to earnings	1,382		898		—		2,280
Net change in pension plan benefits	—		—		1,286		1,286
Ending Balance	$	(490)	$	(97,259)	$	(5,745)	$	(103,494)

	December 31, 2022
	Gains and Losses on Cash Flow Hedges		Unrealized Gains and Losses on Available-for-Sale Securities		Defined Benefit Pension Items		Accumulated Other Comprehensive Income
Beginning Balance	$	—	$	12,975	$	(6,020)	$	6,955
Net unrealized gains (losses)	(1,721)		(144,209)		—		(145,930)
Less: net realized (gains) losses reclassified to earnings	132		359		—		491
Net change in pension plan benefits	—		—		(1,011)		(1,011)
Ending Balance	$	(1,589)	$	(130,875)	$	(7,031)	$	(139,495)

	December 31, 2021
	Gains and Losses on Cash Flow Hedges		Unrealized Gains and Losses on Available-for-Sale Securities		Defined Benefit Pension Items		Accumulated Other Comprehensive Income
Beginning Balance	$	—	$	28,905	$	(6,325)	$	22,580
Net unrealized gains (losses)	—		(15,933)		—		(15,933)
Less: net realized (gains) losses reclassified to earnings	—		3		—		3
Net change in pension plan benefits	—		—		305		305
Ending Balance	$	—	$	12,975	$	(6,020)	$	6,955


Details about Accumulated Other Comprehensive Income Components	Amount Reclassified From Accumulated Other Comprehensive Income						Affected Line Item in the Statements of Income
	2023		2022		2021
Cash flow hedges:
Interest rate contracts	$	(1,749)	$	(167)	$	—	Interest income
Tax effect	367		35		—		Income tax expense (benefit)
Net of Tax	$	(1,382)	$	(132)	$	—

Available-for-sale securities:
Realized gains (losses) on securities	$	(112)	$	(454)	$	(4)	Net gains/(losses) on securities
Realized gains (losses) on basis adjustment for fair value hedges	(1,025)		—		—		Interest income
Tax effect	239		95		1		Income tax expense (benefit)
Net of Tax	$	(898)	$	(359)	$	(3)

Defined benefit pension plan:
Amortization of actuarial gain / (loss)	$	(1,628)	$	1,280	$	(386)	Pension and other employee benefits
Tax effect	342		(269)		81		Income tax expense (benefit)
Net of Tax	$	(1,286)	$	1,011	$	(305)

Total reclassifications, net of tax	$	(3,566)	$	520	$	(308)	Net income

Note: The Defined benefit pension plan items are included in the computation of net periodic pension cost. See Note 9 — Defined Benefit Pension Plan, for additional information.

Consolidated Statements of Changes in Shareholders’ Equity - USD ($)
$ in Thousands

Total

Cumulative Effect, Period of Adoption, Adjustment

Common Stock

Paid-in Capital

Retained Earnings

Cumulative Effect, Period of Adoption, Adjustment

Comprehensive Income (Loss)

Treasury Stock

Beginning balance (in shares) at Dec. 31, 2020

7,448,080

Beginning Balance at Dec. 31, 2020

$ 384,877

$ 4,000

$ 10,178

$ 374,826

$ 22,580

$ (26,707)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net Income

36,165

Other comprehensive income (loss)

(15,625)

(Purchase) sale of treasury stock, net (in shares)

24,320

(Purchase) sale of treasury stock, net

1,115

Cash dividends, declared

(14,871)

Share-based compensation expense, net

196

Ending balance (in shares) at Dec. 31, 2021

7,423,760

Ending Balance at Dec. 31, 2021

389,627

$ 4,000

10,374

396,120

6,955

(27,822)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net Income

44,013

Other comprehensive income (loss)

$ (146,450)

(146,450)

(Purchase) sale of treasury stock, net (in shares)

2,000

(Purchase) sale of treasury stock, net

$ 97

Cash dividends, declared

(15,742)

Share-based compensation expense, net

$ 1,908

1,908

Ending balance (in shares) at Dec. 31, 2022

7,425,760

Ending Balance at Dec. 31, 2022

$ 273,453

$ (3,439)

$ 4,000

12,282

424,391

$ (3,439)

(139,495)

(27,725)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Accounting Standards Update [Extensible Enumeration]

Accounting Standards Update 2016-13 [Member]

Net Income

$ 22,692

22,692

Other comprehensive income (loss)

$ 36,001

36,001

(Purchase) sale of treasury stock, net (in shares)

2,950

(Purchase) sale of treasury stock, net

$ 141

141

Cash dividends, declared

^[1]

(16,298)

Share-based compensation expense, net

$ 2,200

2,213

(13)

Ending balance (in shares) at Dec. 31, 2023

7,428,710

Ending Balance at Dec. 31, 2023

$ 314,750

$ 4,000

$ 14,495

$ 427,333

$ (103,494)

$ (27,584)

[1]	(1) Cash dividends, paid and accrued for the year ending December 31, 2023, include dividends paid of $15,747 thousand and $551 thousand of dividends accrued on share-based compensation but unpaid as of December 31, 2023.

Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financial assets
Cash and due from banks	$ 8,896	$ 9,124
Carrying Amount
Financial assets
Cash and due from banks	8,896	9,124
Loans, net	2,062,455	1,866,182
Accrued interest	15,895	15,481
Financial liabilities
Other borrowed funds	272,000	343,100
Accrued interest	8,954	1,452
Carrying Amount \| Non-interest-bearing
Financial liabilities
Deposit liabilities	830,320	960,692
Carrying Amount \| Interest-bearing
Financial liabilities
Deposit liabilities	2,171,561	1,959,708
Carrying Amount \| Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	35,602	41,171
Fair Value Amount
Financial assets
Cash and due from banks	8,896	9,124
Loans, net	1,897,459	1,768,903
Accrued interest	15,895	15,481
Financial liabilities
Other borrowed funds	271,716	342,904
Accrued interest	8,954	1,452
Fair Value Amount \| Non-interest-bearing
Financial liabilities
Deposit liabilities	830,320	960,692
Fair Value Amount \| Interest-bearing
Financial liabilities
Deposit liabilities	2,167,218	1,951,227
Fair Value Amount \| Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	35,602	41,171
Level 1 \| Fair Value Amount
Financial assets
Cash and due from banks	8,896	9,124
Loans, net	0	0
Accrued interest	0	0
Financial liabilities
Other borrowed funds	0	0
Accrued interest	0	0
Level 1 \| Fair Value Amount \| Non-interest-bearing
Financial liabilities
Deposit liabilities	0	0
Level 1 \| Fair Value Amount \| Interest-bearing
Financial liabilities
Deposit liabilities	0	0
Level 1 \| Fair Value Amount \| Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	35,602	41,171
Level 2 \| Fair Value Amount
Financial assets
Cash and due from banks	0	0
Loans, net	0	0
Accrued interest	15,895	15,481
Financial liabilities
Other borrowed funds	271,716	342,904
Accrued interest	8,954	1,452
Level 2 \| Fair Value Amount \| Non-interest-bearing
Financial liabilities
Deposit liabilities	830,320	960,692
Level 2 \| Fair Value Amount \| Interest-bearing
Financial liabilities
Deposit liabilities	2,167,218	1,951,227
Level 2 \| Fair Value Amount \| Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	0	0
Level 3 \| Fair Value Amount
Financial assets
Cash and due from banks	0	0
Loans, net	1,897,459	1,768,903
Accrued interest	0	0
Financial liabilities
Other borrowed funds	0	0
Accrued interest	0	0
Level 3 \| Fair Value Amount \| Non-interest-bearing
Financial liabilities
Deposit liabilities	0	0
Level 3 \| Fair Value Amount \| Interest-bearing
Financial liabilities
Deposit liabilities	0	0
Level 3 \| Fair Value Amount \| Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	$ 0	$ 0

Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 273,453	$ 389,627	$ 384,877
Net unrealized gains (losses)	32,435	(145,930)	(15,933)
Less: net realized (gains) losses reclassified to earnings	2,280	491	3
Net change in pension plan benefits	1,286	(1,011)	305
Ending Balance	314,750	273,453	389,627
Gains and Losses on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(1,589)	0	0
Net unrealized gains (losses)	(283)	(1,721)	0
Less: net realized (gains) losses reclassified to earnings	1,382	132	0
Net change in pension plan benefits	0	0	0
Ending Balance	(490)	(1,589)	0
Unrealized Gains and Losses on Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(130,875)	12,975	28,905
Net unrealized gains (losses)	32,718	(144,209)	(15,933)
Less: net realized (gains) losses reclassified to earnings	898	359	3
Net change in pension plan benefits	0	0	0
Ending Balance	(97,259)	(130,875)	12,975
Defined Benefit Pension Items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(7,031)	(6,020)	(6,325)
Net unrealized gains (losses)	0	0	0
Less: net realized (gains) losses reclassified to earnings	0	0	0
Net change in pension plan benefits	1,286	(1,011)	305
Ending Balance	(5,745)	(7,031)	(6,020)
Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(139,495)	6,955	22,580
Ending Balance	$ (103,494)	$ (139,495)	$ 6,955

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-12

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(19))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.6-05(4))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(4)(b))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(6))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(7))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 14: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480418/310-10-S99-2

+ Details

Nature of Business Activities and Significant Accounting Policies - Schedule of Impact of Adoption of CECL (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financial Assets:
Allowance for credit losses on loans	$ 25,301	$ 21,039	$ 31,709	$ 32,697
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure	254	0
Reserves under CECL Model
Financial Assets:
Allowance for credit losses on loans		25,164
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure		275
Impact of CECL Adoption
Financial Assets:
Allowance for credit losses on loans		4,125
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure		275
Commercial real estate
Financial Assets:
Allowance for credit losses on loans	20,633	15,477	25,112	23,356
Commercial real estate \| Reserves under CECL Model
Financial Assets:
Allowance for credit losses on loans		18,163
Commercial real estate \| Impact of CECL Adoption
Financial Assets:
Allowance for credit losses on loans		2,686
Owner-occupied commercial real estate
Financial Assets:
Allowance for credit losses on loans	783	635	611	1,196
Owner-occupied commercial real estate \| Reserves under CECL Model
Financial Assets:
Allowance for credit losses on loans		629
Owner-occupied commercial real estate \| Impact of CECL Adoption
Financial Assets:
Allowance for credit losses on loans		(6)
Acquisition, construction & development
Financial Assets:
Allowance for credit losses on loans	368	2,082	2,189	3,075
Acquisition, construction & development \| Reserves under CECL Model
Financial Assets:
Allowance for credit losses on loans		1,442
Acquisition, construction & development \| Impact of CECL Adoption
Financial Assets:
Allowance for credit losses on loans		(640)
Commercial & industrial
Financial Assets:
Allowance for credit losses on loans	645	438	165	73
Commercial & industrial \| Reserves under CECL Model
Financial Assets:
Allowance for credit losses on loans		675
Commercial & industrial \| Impact of CECL Adoption
Financial Assets:
Allowance for credit losses on loans		237
Single family residential (1-4 units)
Financial Assets:
Allowance for credit losses on loans	2,797	2,379	2,434	3,757
Single family residential (1-4 units) \| Reserves under CECL Model
Financial Assets:
Allowance for credit losses on loans		4,040
Single family residential (1-4 units) \| Impact of CECL Adoption
Financial Assets:
Allowance for credit losses on loans		1,661
Consumer non-real estate and other
Financial Assets:
Allowance for credit losses on loans	75	28	18	60
Consumer non-real estate and other \| Reserves under CECL Model
Financial Assets:
Allowance for credit losses on loans		215
Consumer non-real estate and other \| Impact of CECL Adoption
Financial Assets:
Allowance for credit losses on loans		187
Unallocated
Financial Assets:
Allowance for credit losses on loans	$ 0	0	$ 1,180	$ 1,180
Unallocated \| Reserves under CECL Model
Financial Assets:
Allowance for credit losses on loans		0
Unallocated \| Impact of CECL Adoption
Financial Assets:
Allowance for credit losses on loans		$ 0

Parent Company Financial Information

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Parent Company Financial Information


Parent Company Only Condensed Balance Sheet	2023		2022
Assets
Cash	$	284	$	2,000
Investment in subsidiary	313,364		271,757
Other assets	1,653		209
Total Assets	$	315,301	$	273,966

Liabilities
Other liabilities	$	551	$	513
Total Liabilities	551		513

Total Shareholders’ Equity	314,750		273,453
Total Liabilities and Shareholders’ Equity	$	315,301	$	273,966


Parent Company Only Condensed Statement of Income	2023		2022
Income
Dividends from bank subsidiary	$	18,997	$	5,936
Total Income	18,997		5,936

Expense
Salaries and employee benefit	2,052		426
Other operating expenses	4,826		568
Total Expense	6,878		994

Income (loss) before income tax benefit and equity in undistributed income of subsidiaries	12,119		4,942
Income tax benefit	1,445		209
Income (loss) before equity in undistributed income of subsidiaries	13,564		5,151
Equity in undistributed earnings of subsidiary	9,128		38,862
Net Income	$	22,692	$	44,013


Parent Company Only Condensed Statement of Cash Flows	2023		2022
Cash Flows from Operating Activities
Net income	$	22,692	$	44,013
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries	(9,128)		(38,862)
Share-based compensation	2,464		481
Deferred income taxes	(539)		(105)
Net change in other assets	(899)		513
Net change in other liabilities	(906)		(104)
Net cash flows provided by operating activities	$	13,684	$	5,936

Cash Flows from Investing Activities	—		—

Net cash (used in) provided by investing activities	$	—	$	—

Cash Flows from Financing Activities
Proceeds from employee stock purchase program	206		—
Dividends paid	(15,747)		(3,936)
Treasury stock transactions	141		—

Net cash (used in) financing activities	$	(15,400)	$	(3,936)

Increase in cash and cash equivalents	$	(1,716)	$	2,000

Cash and cash equivalents
Beginning of the year	$	2,000	$	—
End of the year	284		2,000

Defined Benefit Pension Plan - Schedule of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other changes recognized in other comprehensive (income) loss
Deferred tax expense (benefit)	$ 342	$ (263)	$ 81
Total recognized in accumulated other comprehensive (income) loss	(1,286)	1,011	(305)
Pension Plan
Components of net periodic pension cost:
Service cost	469	786	998
Interest cost	1,471	1,141	1,042
Expected return on plan assets	(879)	(1,539)	(1,612)
Amortization of prior service costs	0	0	0
Amortization of net loss	630	309	393
Net periodic pension costs	1,691	697	821
Other changes recognized in other comprehensive (income) loss
Net loss	(998)	1,589	7
Amortization of net loss	(630)	(309)	(393)
Deferred tax expense (benefit)	342	(269)	81
Total recognized in accumulated other comprehensive (income) loss	(1,286)	1,011	(305)
Total recognized in net periodic pension costs and other comprehensive loss	$ 405	$ 1,708	$ 516

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financial assets
Fair Value	$ 1,248,439	$ 1,371,757
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Fair Value
Financial liabilities
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Fair Value
Recurring
Financial assets
Fair Value	$ 1,248,439	$ 1,371,757
Loans held-for-sale, at fair value	1,497	0
Derivatives	1,063	1,311
Financial liabilities
Derivatives	2,045	3,565
Level 1 \| Recurring
Financial assets
Fair Value	179,071	174,993
Loans held-for-sale, at fair value	0	0
Derivatives	0	0
Financial liabilities
Derivatives	0	0
Level 2 \| Recurring
Financial assets
Fair Value	1,069,368	1,196,764
Loans held-for-sale, at fair value	1,497	0
Derivatives	1,063	1,311
Financial liabilities
Derivatives	2,045	3,565
Level 3 \| Recurring
Financial assets
Fair Value	0	0
Loans held-for-sale, at fair value	0	0
Derivatives	0	0
Financial liabilities
Derivatives	0	0
U.S. Treasuries and government agencies
Financial assets
Fair Value	179,071	174,993
U.S. Treasuries and government agencies \| Recurring
Financial assets
Fair Value	179,071	174,993
U.S. Treasuries and government agencies \| Level 1 \| Recurring
Financial assets
Fair Value	179,071	174,993
U.S. Treasuries and government agencies \| Level 2 \| Recurring
Financial assets
Fair Value	0	0
U.S. Treasuries and government agencies \| Level 3 \| Recurring
Financial assets
Fair Value	0	0
Obligations of states and municipalities
Financial assets
Fair Value	463,203	453,907
Obligations of states and municipalities \| Recurring
Financial assets
Fair Value	463,203	453,907
Obligations of states and municipalities \| Level 1 \| Recurring
Financial assets
Fair Value	0	0
Obligations of states and municipalities \| Level 2 \| Recurring
Financial assets
Fair Value	463,203	453,907
Obligations of states and municipalities \| Level 3 \| Recurring
Financial assets
Fair Value	0	0
Residential mortgage backed - agency
Financial assets
Fair Value	42,238	53,061
Residential mortgage backed - agency \| Recurring
Financial assets
Fair Value	42,238	53,061
Residential mortgage backed - agency \| Level 1 \| Recurring
Financial assets
Fair Value	0	0
Residential mortgage backed - agency \| Level 2 \| Recurring
Financial assets
Fair Value	42,238	53,061
Residential mortgage backed - agency \| Level 3 \| Recurring
Financial assets
Fair Value	0	0
Residential mortgage backed - non-agency
Financial assets
Fair Value	266,031	339,295
Residential mortgage backed - non-agency \| Recurring
Financial assets
Fair Value	266,031	339,295
Residential mortgage backed - non-agency \| Level 1 \| Recurring
Financial assets
Fair Value	0	0
Residential mortgage backed - non-agency \| Level 2 \| Recurring
Financial assets
Fair Value	266,031	339,295
Residential mortgage backed - non-agency \| Level 3 \| Recurring
Financial assets
Fair Value	0	0
Commercial mortgage backed - agency
Financial assets
Fair Value	34,885	59,933
Commercial mortgage backed - agency \| Recurring
Financial assets
Fair Value	34,885	59,933
Commercial mortgage backed - agency \| Level 1 \| Recurring
Financial assets
Fair Value	0	0
Commercial mortgage backed - agency \| Level 2 \| Recurring
Financial assets
Fair Value	34,885	59,933
Commercial mortgage backed - agency \| Level 3 \| Recurring
Financial assets
Fair Value	0	0
Commercial mortgage backed - non-agency
Financial assets
Fair Value	177,061	183,299
Commercial mortgage backed - non-agency \| Recurring
Financial assets
Fair Value	177,061	183,299
Commercial mortgage backed - non-agency \| Level 1 \| Recurring
Financial assets
Fair Value	0	0
Commercial mortgage backed - non-agency \| Level 2 \| Recurring
Financial assets
Fair Value	177,061	183,299
Commercial mortgage backed - non-agency \| Level 3 \| Recurring
Financial assets
Fair Value	0	0
Asset-backed
Financial assets
Fair Value	77,936	98,626
Asset-backed \| Recurring
Financial assets
Fair Value	77,936	98,626
Asset-backed \| Level 1 \| Recurring
Financial assets
Fair Value	0	0
Asset-backed \| Level 2 \| Recurring
Financial assets
Fair Value	77,936	98,626
Asset-backed \| Level 3 \| Recurring
Financial assets
Fair Value	0	0
Other
Financial assets
Fair Value	8,014	8,643
Other \| Recurring
Financial assets
Fair Value	8,014	8,643
Other \| Level 1 \| Recurring
Financial assets
Fair Value	0	0
Other \| Level 2 \| Recurring
Financial assets
Fair Value	8,014	8,643
Other \| Level 3 \| Recurring
Financial assets
Fair Value	$ 0	$ 0

Leased Property

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leased Property

Lessor Arrangements

The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options.

The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the year ending (in thousands):


	2023		2022		2021
Operating lease income	$	2,301	$	1,309	$	181
Total lease income	$	2,301	$	1,309	$	181

The remaining maturities of operating lease receivables as of December 31, 2023, are as follows (in thousands):


	Operating Leases
2024	$	2,302
2025	2,265
2026	1,657
2027	1,356
2028	1,333
Thereafter	2,450
Total lease receivables	$	11,363

Lessee Arrangements

The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to around fifteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.

Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets.

In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and resulted in $655 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million that was recognized in the fourth quarter of 2022.

Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands):


	Balance Sheet Classification	2023		2022
Right-of-use assets:
Operating leases	Other assets	$	5,110	$	7,255
Finance leases	Other assets	3,590		2,620
Total right-of-use assets		$	8,700	$	9,875
Lease liabilities:
Operating leases	Other liabilities	$	5,327	$	7,592
Finance Leases	Other liabilities	3,840		2,745
Total lease liabilities		$	9,167	$	10,337

The components of total lease cost were as follows for the period ending (in thousands):


	2023		2022		2021
Finance lease cost
Right-of-use asset amortization	$	244	$	204	$	207
Interest expense	86		63		39
Operating lease cost	3,210		2,495		2,517
Total lease cost	$	3,540	$	2,762	$	2,763

The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2023, are as follows (in thousands):


	Operating Leases		Finance Leases
2024	$	2,418	$	327
2025	1,075		334
2026	622		341
2027	572		347
2028	548		354
Thereafter	475		2,993
Total undiscounted lease payments	5,710		4,696
Less: discount	(383)		(856)
Net lease liabilities	$	5,327	$	3,840

The following table presents additional information about the Company’s leases as of December 31, 2023, and December 31, 2022.


Supplemental lease information (dollars in thousands)	2023			2022
Finance lease weighted average remaining lease term (years)	12.66			12.76
Finance lease weighted average discount rate	2.96		%	2.22		%
Operating lease weighted average remaining lease term (years)	3.71			3.26
Operating lease weighted average discount rate	3.33		%	3.19		%

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,330		$	2,557
Operating cash flows from finance leases	86			63
Financing cash flows from finance leases	119			152
Right-of-use assets obtained in exchange for new finance lease liabilities	1,214			—
Right-of-use assets obtained in exchange for new operating lease liabilities	—			1,558

Leased Property

Lessor Arrangements

The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the year ending (in thousands):


	2023		2022		2021
Operating lease income	$	2,301	$	1,309	$	181
Total lease income	$	2,301	$	1,309	$	181

The remaining maturities of operating lease receivables as of December 31, 2023, are as follows (in thousands):


	Operating Leases
2024	$	2,302
2025	2,265
2026	1,657
2027	1,356
2028	1,333
Thereafter	2,450
Total lease receivables	$	11,363

Lessee Arrangements

Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands):


	Balance Sheet Classification	2023		2022
Right-of-use assets:
Operating leases	Other assets	$	5,110	$	7,255
Finance leases	Other assets	3,590		2,620
Total right-of-use assets		$	8,700	$	9,875
Lease liabilities:
Operating leases	Other liabilities	$	5,327	$	7,592
Finance Leases	Other liabilities	3,840		2,745
Total lease liabilities		$	9,167	$	10,337

The components of total lease cost were as follows for the period ending (in thousands):


	2023		2022		2021
Finance lease cost
Right-of-use asset amortization	$	244	$	204	$	207
Interest expense	86		63		39
Operating lease cost	3,210		2,495		2,517
Total lease cost	$	3,540	$	2,762	$	2,763

The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2023, are as follows (in thousands):


	Operating Leases		Finance Leases
2024	$	2,418	$	327
2025	1,075		334
2026	622		341
2027	572		347
2028	548		354
Thereafter	475		2,993
Total undiscounted lease payments	5,710		4,696
Less: discount	(383)		(856)
Net lease liabilities	$	5,327	$	3,840

The following table presents additional information about the Company’s leases as of December 31, 2023, and December 31, 2022.


Supplemental lease information (dollars in thousands)	2023			2022
Finance lease weighted average remaining lease term (years)	12.66			12.76
Finance lease weighted average discount rate	2.96		%	2.22		%
Operating lease weighted average remaining lease term (years)	3.71			3.26
Operating lease weighted average discount rate	3.33		%	3.19		%

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,330		$	2,557
Operating cash flows from finance leases	86			63
Financing cash flows from finance leases	119			152
Right-of-use assets obtained in exchange for new finance lease liabilities	1,214			—
Right-of-use assets obtained in exchange for new operating lease liabilities	—			1,558

Leased Property

Lessor Arrangements

The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the year ending (in thousands):


	2023		2022		2021
Operating lease income	$	2,301	$	1,309	$	181
Total lease income	$	2,301	$	1,309	$	181

The remaining maturities of operating lease receivables as of December 31, 2023, are as follows (in thousands):


	Operating Leases
2024	$	2,302
2025	2,265
2026	1,657
2027	1,356
2028	1,333
Thereafter	2,450
Total lease receivables	$	11,363

Lessee Arrangements

Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands):


	Balance Sheet Classification	2023		2022
Right-of-use assets:
Operating leases	Other assets	$	5,110	$	7,255
Finance leases	Other assets	3,590		2,620
Total right-of-use assets		$	8,700	$	9,875
Lease liabilities:
Operating leases	Other liabilities	$	5,327	$	7,592
Finance Leases	Other liabilities	3,840		2,745
Total lease liabilities		$	9,167	$	10,337

The components of total lease cost were as follows for the period ending (in thousands):


	2023		2022		2021
Finance lease cost
Right-of-use asset amortization	$	244	$	204	$	207
Interest expense	86		63		39
Operating lease cost	3,210		2,495		2,517
Total lease cost	$	3,540	$	2,762	$	2,763

The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2023, are as follows (in thousands):


	Operating Leases		Finance Leases
2024	$	2,418	$	327
2025	1,075		334
2026	622		341
2027	572		347
2028	548		354
Thereafter	475		2,993
Total undiscounted lease payments	5,710		4,696
Less: discount	(383)		(856)
Net lease liabilities	$	5,327	$	3,840

The following table presents additional information about the Company’s leases as of December 31, 2023, and December 31, 2022.


Supplemental lease information (dollars in thousands)	2023			2022
Finance lease weighted average remaining lease term (years)	12.66			12.76
Finance lease weighted average discount rate	2.96		%	2.22		%
Operating lease weighted average remaining lease term (years)	3.71			3.26
Operating lease weighted average discount rate	3.33		%	3.19		%

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,330		$	2,557
Operating cash flows from finance leases	86			63
Financing cash flows from finance leases	119			152
Right-of-use assets obtained in exchange for new finance lease liabilities	1,214			—
Right-of-use assets obtained in exchange for new operating lease liabilities	—			1,558

Other Post-Retirement Plans

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Other Post-Retirement Plans

Investment and Savings Plan

Other Retirement Plans

- Definition

The entire disclosure for retirement benefits.

+ References

+ Details

Defined Benefit Pension Plan - Schedule of Pension Plan Asset Allocations (Details) - Pension Plan	Dec. 31, 2023	Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Plan asset allocations percentage	100.00%	100.00%
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset allocations percentage	9.60%	10.00%
Debt securities & cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Plan asset allocations percentage	90.40%	90.00%

Allowance for Credit Losses - Schedule of Aging and Nonaccrual Loans of the Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	$ 2,087,756	$ 1,887,221
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	3,744	5,497
Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	15,326	2,107
30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	12,351	1,403
60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	653	158
90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	2,322	546
Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	2,072,430	1,885,114
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	1,309,084	1,109,315
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	0	0
Commercial real estate \| Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	10,496	0
Commercial real estate \| 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	10,496	0
Commercial real estate \| 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Commercial real estate \| 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Commercial real estate \| Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	1,298,588	1,109,315
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	131,381	127,114
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	1,000	1,184
Owner-occupied commercial real estate \| Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	790	0
Owner-occupied commercial real estate \| 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Owner-occupied commercial real estate \| 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Owner-occupied commercial real estate \| 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	790	0
Owner-occupied commercial real estate \| Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	130,591	127,114
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	49,091	94,450
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	0	0
Acquisition, construction & development \| Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Acquisition, construction & development \| 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Acquisition, construction & development \| 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Acquisition, construction & development \| 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Acquisition, construction & development \| Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	49,091	94,450
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	67,847	53,514
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	0	0
Commercial & industrial \| Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	559	0
Commercial & industrial \| 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	195	0
Commercial & industrial \| 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	364	0
Commercial & industrial \| 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Commercial & industrial \| Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	67,288	53,514
Single family residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	527,980	499,362
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	2,744	4,313
Single family residential \| Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	3,478	2,103
Single family residential \| 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	1,657	1,403
Single family residential \| 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	289	154
Single family residential \| 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	1,532	546
Single family residential \| Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	524,502	497,259
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	2,373	3,466
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	0	0
Consumer non-real estate and other \| Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	3	4
Consumer non-real estate and other \| 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	3	0
Consumer non-real estate and other \| 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	4
Consumer non-real estate and other \| 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	0	0
Consumer non-real estate and other \| Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Loans	$ 2,370	$ 3,462

Allowance for Credit Losses - Schedule of Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allowance for loan losses
Individually evaluated for impairment		$ 239
Collectively evaluated for impairment		20,800
Total ending allowance balance	$ 25,301	21,039	$ 31,709	$ 32,697
Loan balance:
Individually evaluated for impairment		9,069
Collectively evaluated for impairment		1,878,152
Total	2,087,756	1,887,221
Commercial real estate
Allowance for loan losses
Individually evaluated for impairment		41
Collectively evaluated for impairment		15,436
Total ending allowance balance	20,633	15,477	25,112	23,356
Loan balance:
Individually evaluated for impairment		331
Collectively evaluated for impairment		1,108,984
Total	1,309,084	1,109,315
Owner-occupied commercial real estate
Allowance for loan losses
Individually evaluated for impairment		102
Collectively evaluated for impairment		533
Total ending allowance balance	783	635	611	1,196
Loan balance:
Individually evaluated for impairment		2,580
Collectively evaluated for impairment		124,534
Total	131,381	127,114
Acquisition, construction & development
Allowance for loan losses
Individually evaluated for impairment		0
Collectively evaluated for impairment		2,082
Total ending allowance balance	368	2,082	2,189	3,075
Loan balance:
Individually evaluated for impairment		0
Collectively evaluated for impairment		94,450
Total	49,091	94,450
Commercial & industrial
Allowance for loan losses
Individually evaluated for impairment		0
Collectively evaluated for impairment		438
Total ending allowance balance	645	438	165	73
Loan balance:
Individually evaluated for impairment		0
Collectively evaluated for impairment		53,514
Total	67,847	53,514
Single family residential
Allowance for loan losses
Individually evaluated for impairment		96
Collectively evaluated for impairment		2,283
Total ending allowance balance	2,797	2,379	2,434	3,757
Loan balance:
Individually evaluated for impairment		6,158
Collectively evaluated for impairment		493,204
Total	527,980	499,362
Consumer non-real estate and other
Allowance for loan losses
Individually evaluated for impairment		0
Collectively evaluated for impairment		28
Total ending allowance balance	75	28	18	60
Loan balance:
Individually evaluated for impairment		0
Collectively evaluated for impairment		3,466
Total	2,373	3,466
Unallocated
Allowance for loan losses
Individually evaluated for impairment		0
Collectively evaluated for impairment		0
Total ending allowance balance	$ 0	0	$ 1,180	$ 1,180
Loan balance:
Individually evaluated for impairment		0
Collectively evaluated for impairment		0
Total		$ 0

Deposits - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deposit Liability [Line Items]
Time deposits, at or above FDIC insurance limit	$ 92,300	$ 32,600
Brokered time deposits	389,000	100,300
Time deposits, individual retirement account	28,500	36,900
Deposit liabilities reclassified as loans receivable	110	503
Certificate Of Deposit Account Registry Service (CDARS)
Deposit Liability [Line Items]
Interest bearing deposit, certificates of deposits	$ 24,200	$ 11,700

Loans - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized loan fee	$ 3,500	$ 3,300
Loans, net	2,062,455	1,866,182
Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	$ 3,000	$ 7,900

Leased Property - Schedule of Components of Lease Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other operating
Operating lease income	$ 2,301	$ 1,309	$ 181
Total lease income	$ 2,301	$ 1,309	$ 181

Share-Based Compensation - Narrative (Details) $ in Thousands		12 Months Ended
	Mar. 30, 2023 shares	Dec. 31, 2023 USD ($) award shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2019 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation cost for awards granted \| $		$ 2,400	$ 2,000	$ 283
Total income tax benefit \| $		506	$ 421	$ 59
2023 Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares reserved for issuance (in shares)	250,000
Eligible employees, subscription rate (as a percent)	15.00%
ESPP recognized expense \| $		$ 64
Restricted Stock Units (RSUs) \| Minimum \| Time-based RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		3 years
Restricted Stock Units (RSUs) \| Minimum \| Performance-based RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		3 years
Vesting percentage		50.00%
Restricted Stock Units (RSUs) \| Maximum \| Time-based RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		5 years
Restricted Stock Units (RSUs) \| Maximum \| Performance-based RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		5 years
Vesting percentage		100.00%
Restricted Stock Units (RSUs) \| 2019 and 2023 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation costs \| $		$ 2,900
Average period for cost to be recognized		1 year 5 months 8 days
Number of shares remaining to be issued (in shares)		89,135
Restricted Stock Units (RSUs) \| 2019 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized to be issued (in shares)					240,000
Shares issued during period (in shares)		25,705	13,160	106,040
Restricted Stock Units (RSUs) \| 2023 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized to be issued (in shares)		250,000
Shares issued during period (in shares)		1,000
Number of share-based awards \| award		1
Employee Stock \| 2023 Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Purchase price of common stock (as a percent)	85.00%

Cover - USD ($)

12 Months Ended

Dec. 31, 2023

Mar. 21, 2024

Jun. 30, 2023

Cover [Abstract]

Document Type

10-K

Document Annual Report

true

Document Period End Date

Dec. 31, 2023

Current Fiscal Year End Date

--12-31

Document Transition Report

false

Entity File Number

001-41633

Entity Registrant Name

Burke & Herbert Financial Services Corp.

Entity Incorporation, State or Country Code

Entity Tax Identification Number

92-0289417

Entity Address, Address Line One

100 S. Fairfax Street

Entity Address, City or Town

Alexandria

Entity Address, State or Province

Entity Address, Postal Zip Code

22314

City Area Code

703

Local Phone Number

666-3555

Title of 12(b) Security

Common Stock, par value $0.50 per share

Trading Symbol

BHRB

Security Exchange Name

NASDAQ

Entity Well-known Seasoned Issuer

Entity Voluntary Filers

Entity Current Reporting Status

Yes

Entity Interactive Data Current

Yes

Entity Filer Category

Non-accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

true

Entity Ex Transition Period

false

ICFR Auditor Attestation Flag

false

Document Financial Statement Error Correction Flag

false

Entity Shell Company

false

Entity Public Float

$ 408,054,000

Entity Common Stock, Shares Outstanding

7,440,025

Documents Incorporated by Reference


Document			Part of Form 10-K into which document is incorporated
Portions of the Registrant’s Proxy Statement for the Annual Meeting of Shareholders expected to be held on July 15, 2024			Part III - Items 10, 11, 12, 13 and 14

Amendment Flag

false

Entity Central Index Key

0001964333

Document Fiscal Year Focus

2023

Document Fiscal Period Focus

Nature of Business Activities and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Schedule of Impact of Adoption of CECL


	January 1, 2023
	Reserves under Incurred Loss Model		Reserves under CECL Model		Impact of CECL Adoption
Financial Assets:
Commercial real estate	$	15,477	$	18,163	$	2,686
Owner-occupied commercial real estate	635		629		(6)
Acquisition, construction & development	2,082		1,442		(640)
Commercial & industrial	438		675		237
Single family residential (1-4 units)	2,379		4,040		1,661
Consumer non-real estate and other	28		215		187
Unallocated reserve	0		0		0
Allowance for credit losses on loans	$	21,039	$	25,164	$	4,125
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure	$	—	$	275	$	275

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 8,896	$ 9,124
Interest-bearing deposits with banks	35,602	41,171
Cash and cash equivalents	44,498	50,295
Securities available-for-sale, at fair value	1,248,439	1,371,757
Restricted stock, at cost	5,964	16,443
Loans held-for-sale, at fair value	1,497	0
Loans	2,087,756	1,887,221
Allowance for credit losses	(25,301)	(21,039)
Net loans	2,062,455	1,866,182
Premises and equipment, net	61,128	53,170
Accrued interest receivable	15,895	15,481
Company-owned life insurance	94,159	92,487
Other assets	83,544	97,083
Total Assets	3,617,579	3,562,898
Liabilities
Non-interest-bearing deposits	830,320	960,692
Interest-bearing deposits	2,171,561	1,959,708
Total deposits	3,001,881	2,920,400
Borrowed funds	272,000	343,100
Accrued interest and other liabilities	28,948	25,945
Total Liabilities	3,302,829	3,289,445
Commitments and contingent liabilities (see Note 14)
Shareholders’ Equity
Preferred Stock, $1.00 par value per share; 2,000,000 shares authorized; no shares issued or outstanding	0	0
Common Stock, $0.50 par value; 20,000,000 shares authorized and 8,000,000 issued at December 31, 2023, and December 31, 2022; 7,428,710 shares outstanding at December 31, 2023, and 7,425,760 shares outstanding at December 31, 2022	4,000	4,000
Additional paid-in capital	14,495	12,282
Retained earnings	427,333	424,391
Accumulated other comprehensive income (loss)	(103,494)	(139,495)
Treasury stock 571,290 shares, at cost, at December 31, 2023, and 574,240 shares, at cost, at December 31, 2022	(27,584)	(27,725)
Total Shareholders' Equity	314,750	273,453
Total Liabilities and Shareholders' Equity	$ 3,617,579	$ 3,562,898

Deposits (Tables)

12 Months Ended

Dec. 31, 2023

Financial Services, Banking and Thrift [Abstract]

Schedule of Maturities of Time Deposits

At December 31, 2023, the scheduled maturities of time deposits, including brokered time deposits, for the next five years were as follows (in thousands):


Years ending December 31,
2024	$	384,207
2025	140,532
2026	83,546
2027	49,354
2028	78,420
Total	$	736,059

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, authorized (in shares)	2,000,000	2,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value per share (in dollars per share)	$ 0.50	$ 0.50
Common stock, authorized (in shares)	20,000,000	20,000,000
Common stock, issued (in shares)	8,000,000	8,000,000
Common stock, outstanding (in shares)	7,428,710	7,425,760
Treasury stock, shares (in shares)	571,290	574,240

Derivatives - Narrative (Details)	12 Months Ended
Derivatives - Narrative (Details)	Dec. 31, 2023 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair value of interest rate swaps	$ 0
Fair value of liabilities	982,000
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash flow hedge gain (loss) to be reclassified within 12 months	600,000
Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash flow hedge gain (loss) to be reclassified within 12 months	$ 1,200,000

Allowance for Credit Losses - Schedule of Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	$ 321,368
2022	483,436
2021	305,178
2020	69,608
2019	134,601
Prior	656,867
Revolving Loans	116,698
Total	2,087,756	$ 1,887,221
Year to date gross charge-offs
Total	194	3,450	$ 242
Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Total		1,752,599
Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Total		65,761
Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Total		68,861
Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Total		0
Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Total		0
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	195,857
2022	289,472
2021	214,549
2020	22,791
2019	82,255
Prior	467,399
Revolving Loans	36,761
Total	1,309,084	1,109,315
Year to date gross charge-offs
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	3,282	127
Commercial real estate \| Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	195,857
2022	261,817
2021	166,253
2020	22,791
2019	75,170
Prior	416,774
Revolving Loans	36,761
Total	1,175,423	1,011,025
Commercial real estate \| Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	12,235
2021	35,449
2020	0
2019	4,876
Prior	0
Revolving Loans	0
Total	52,560	62,907
Commercial real estate \| Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	15,420
2021	12,847
2020	0
2019	2,209
Prior	50,625
Revolving Loans	0
Total	81,101	35,383
Commercial real estate \| Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Commercial real estate \| Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	9,309
2022	32,257
2021	11,229
2020	14,103
2019	10,279
Prior	48,020
Revolving Loans	6,184
Total	131,381	127,114
Year to date gross charge-offs
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0	0
Owner-occupied commercial real estate \| Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	9,309
2022	31,725
2021	11,229
2020	14,103
2019	10,279
Prior	43,616
Revolving Loans	6,184
Total	126,445	121,621
Owner-occupied commercial real estate \| Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	1,963
Owner-occupied commercial real estate \| Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	532
2021	0
2020	0
2019	0
Prior	4,404
Revolving Loans	0
Total	4,936	3,530
Owner-occupied commercial real estate \| Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Owner-occupied commercial real estate \| Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	8,535
2022	24,286
2021	13,698
2020	0
2019	728
Prior	241
Revolving Loans	1,603
Total	49,091	94,450
Year to date gross charge-offs
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0	0
Acquisition, construction & development \| Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	8,535
2022	24,286
2021	13,698
2020	0
2019	728
Prior	241
Revolving Loans	1,603
Total	49,091	68,220
Acquisition, construction & development \| Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	836
Acquisition, construction & development \| Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	25,394
Acquisition, construction & development \| Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Acquisition, construction & development \| Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	29,111
2022	15,204
2021	5,166
2020	162
2019	15
Prior	1,335
Revolving Loans	16,854
Total	67,847	53,514
Year to date gross charge-offs
2023	0
2022	0
2021	0
2020	29
2019	0
Prior	0
Revolving Loans	0
Total	29	20	0
Commercial & industrial \| Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	29,111
2022	15,204
2021	4,344
2020	162
2019	15
Prior	1,335
Revolving Loans	16,854
Total	67,025	53,273
Commercial & industrial \| Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Commercial & industrial \| Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	822
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	822	241
Commercial & industrial \| Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Commercial & industrial \| Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Single family residential
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	78,222
2022	122,067
2021	60,493
2020	32,401
2019	40,938
Prior	139,547
Revolving Loans	54,312
Total	527,980	499,362
Year to date gross charge-offs
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0	16
Single family residential \| Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	78,222
2022	122,067
2021	60,202
2020	32,158
2019	40,938
Prior	137,376
Revolving Loans	54,273
Total	525,236	494,994
Single family residential \| Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	55
Single family residential \| Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	291
2020	243
2019	0
Prior	2,171
Revolving Loans	39
Total	2,744	4,313
Single family residential \| Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Single family residential \| Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	334
2022	150
2021	43
2020	151
2019	386
Prior	325
Revolving Loans	984
Total	2,373	3,466
Year to date gross charge-offs
2023	0
2022	165
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	165	148	$ 99
Consumer non-real estate and other \| Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	334
2022	150
2021	43
2020	151
2019	386
Prior	325
Revolving Loans	984
Total	2,373	3,466
Consumer non-real estate and other \| Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Consumer non-real estate and other \| Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Consumer non-real estate and other \| Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Consumer non-real estate and other \| Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	$ 0	$ 0

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Provision for credit losses	$ 5,600	$ 4,597
Lease liability	2,008	2,259
Compensation and other accruals	2,011	1,847
Partnership investments	2,264	1,982
Unrealized losses on securities available-for-sale	26,069	34,789
Tax credit carryforward	8,690	7,634
Unrealized losses on interest rate swaps	0	422
Total deferred tax asset	46,642	53,530
Deferred tax liabilities:
Tax over book depreciation	(2,073)	(1,618)
Pension accrual	(434)	(456)
Unrealized gains on interest rate swaps	(85)	0
Right of use asset	(1,906)	(2,158)
Total deferred tax liability	(4,498)	(4,232)
Net deferred tax asset	$ 42,144	$ 49,298

Derivatives (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Financial Instruments in Balance Sheet


	December 31, 2023
	Balance Sheet Location	Notional Amount		Fair Value
Derivatives designated as hedges:
Interest rate swaps related to cash flow hedges	Other assets	$	100,000	$	65
Interest rate swaps related to cash flow hedges	Other liabilities	150,000		1,047

Derivatives not designated as hedges:
Interest rate swaps related to customer loans	Other assets	$	72,572	$	998
Interest rate swaps related to customer loans	Other liabilities	72,572		998


	December 31, 2022
	Balance Sheet Location	Notional Amount		Fair Value
Derivatives designated as hedges:
Interest rate swaps related to cash flow hedges	Other liabilities	$	50,000	$	2,254

Derivatives not designated as hedges:
Interest rate swaps related to customer loans	Other assets	$	34,674	$	1,311
Interest rate swaps related to customer loans	Other liabilities	34,674		1,311

Schedule of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (“AOCI”)

The table below presents the effect of cash flow hedge accounting on AOCI for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 (in thousands):


	December 31, 2023							December 31, 2023
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative		Amount of Gain or (Loss) Recognized in OCI Included Component		Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Reclassified from AOCI into Income	Amount of Gain or (Loss) Reclassified from AOCI into Income		Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component		Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component
Interest Rate Products	$	(329)	$	(329)	$	—	Interest Income	$	(1,749)	$	(1,749)	$	—
Interest Rate Products	(29)		(29)		—		Interest Expense	—		—		—
Total	$	(358)	$	(358)	$	—		$	(1,749)	$	(1,749)	$	—


	December 31, 2022							December 31, 2022
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative		Amount of Gain or (Loss) Recognized in OCI Included Component		Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Reclassified from AOCI into Income	Amount of Gain or (Loss) Reclassified from AOCI into Income		Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component		Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component
Interest Rate Products	$	(2,178)	$	(2,178)	$	—	Interest Income	$	(167)	$	(167)	$	—
Total	$	(2,178)	$	(2,178)	$	—		$	(167)	$	(167)	$	—

December 31, 2021

Derivatives in Cash Flow Hedging Relationships

Amount of Gain or (Loss) Recognized in OCI on Derivative

Amount of Gain or (Loss) Recognized in OCI Included Component

Amount of Gain or (Loss) Recognized in OCI Excluded Component

Location of Gain or (Loss) Reclassified from AOCI into Income

Amount of Gain or (Loss) Reclassified from AOCI into Income

Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component

Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component

Interest Rate Products

—

Interest Income

—

Total

—

Schedule of Effect of the Company’s Derivative Financial Instruments on the Statements of Income

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of December 31, 2023, and December 31, 2022 (in thousands).


	Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	December 31, 2023				December 31, 2022				December 31, 2021
	Interest Income		Interest Expense		Interest Income		Interest Expense		Interest Income		Interest Expense
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	$	(895)	$	—	$	(167)	$	—	$	—	$	—
The effects of fair value and cash flow hedging:
Gain or (loss) on fair value hedging relationships in Subtopic 815-20
Interest contracts
Hedging items(1)	$	(1,025)	—		—		—		—		—
Derivatives designated as hedging instruments	1,879		—		—		—		—		—
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
Interest contracts
Amount of gain or (loss) reclassified from AOCI into income	$	(1,749)	—		$	(167)	—		—		—
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	—		—		—		—		—		—
Amount of Gain or (Loss) Reclassified from AOCI into Income - Included Component	(1,749)		—		(167)		—		—		—
Amount of Gain or (Loss) Reclassified from AOCI into Income - Excluded Component	—		—		—		—		—		—

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details

Allowance for Credit Losses - Schedule of Information Related to Impaired Loans by Portfolio Segment (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
With no related allowance recorded:
Recorded Investment	$ 6,335
Unpaid Principal Balance	6,970
Average Recorded Investment	6,422
Interest Income Recognized	310
With an allowance recorded:
Recorded Investment	2,735
Unpaid Principal Balance	2,869
Related Allowance	239
Average Recorded Investment	2,803
Interest Income Recognized	154
Commercial real estate
With no related allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Average Recorded Investment	0
Interest Income Recognized	0
With an allowance recorded:
Recorded Investment	331
Unpaid Principal Balance	331
Related Allowance	41
Average Recorded Investment	350
Interest Income Recognized	23
Owner-occupied commercial real estate
With no related allowance recorded:
Recorded Investment	1,184
Unpaid Principal Balance	1,394
Average Recorded Investment	1,291
Interest Income Recognized	97
With an allowance recorded:
Recorded Investment	1,397
Unpaid Principal Balance	1,397
Related Allowance	102
Average Recorded Investment	1,420
Interest Income Recognized	74
Acquisition, construction & development
With no related allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Average Recorded Investment	0
Interest Income Recognized	0
With an allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Commercial & industrial
With no related allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Average Recorded Investment	0
Interest Income Recognized	0
With an allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Single family residential
With no related allowance recorded:
Recorded Investment	5,151
Unpaid Principal Balance	5,576
Average Recorded Investment	5,131
Interest Income Recognized	213
With an allowance recorded:
Recorded Investment	1,007
Unpaid Principal Balance	1,141
Related Allowance	96
Average Recorded Investment	1,033
Interest Income Recognized	57
Consumer non-real estate and other
With no related allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Average Recorded Investment	0
Interest Income Recognized	0
With an allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	$ 0

Securities

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Securities

The carrying amount of securities and their approximate fair values at December 31, 2023, and December 31, 2022, are summarized as follows (in thousands):


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	197,026	$	—	$	17,955	$	179,071
Obligations of states and municipalities	535,229		21		72,047		463,203
Residential mortgage backed — agency	47,074		—		4,836		42,238
Residential mortgage backed — non-agency	284,826		17		18,812		266,031
Commercial mortgage backed — agency	36,151		28		1,294		34,885
Commercial mortgage backed — non-agency	183,454		—		6,393		177,061
Asset-backed	79,315		23		1,402		77,936
Other	9,500		—		1,486		8,014
Total	$	1,372,575	$	89	$	124,225	$	1,248,439


	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	198,154	$	—	$	23,161	$	174,993
Obligations of states and municipalities	550,590		12		96,695		453,907
Residential mortgage backed — agency	57,883		14		4,836		53,061
Residential mortgage backed — non-agency	365,983		2		26,690		339,295
Commercial mortgage backed — agency	61,810		75		1,952		59,933
Commercial mortgage backed — non-agency	191,709		10		8,420		183,299
Asset-backed	101,791		49		3,214		98,626
Other	9,500		—		857		8,643
Total	$	1,537,420	$	162	$	165,825	$	1,371,757

At December 31, 2023, and December 31, 2022, securities with amortized costs of $826.5 million and $637.1 million, respectively, and with estimated fair values of $742.5 million and $552.5 million, respectively, were pledged to collateralize whole-sale funding, secure public deposits, and for other purposes required or permitted by law.

The gross realized gains, realized losses, and proceeds from the sales of securities for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, were as follows (in thousands):


	2023		2022		2021
Gross realized gains	$	772	$	1,512	$	—
Gross realized losses	(884)		(1,966)		(4)
Proceeds from sales of securities	77,780		195,907		700

The tax benefit (provision) related to these net realized gains and losses for 2023, 2022, and 2021 was $23.5 thousand, $95.3 thousand, and $0.8 thousand, respectively.

The maturities of securities available-for-sale at December 31, 2023, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed.

Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties).


	December 31, 2023
	Amortized Cost
	One Year or Less		One to Five Years		Five to Ten Years		After Ten Years		Total
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	29,894	$	141,775	$	25,357	$	—	$	197,026
Obligations of states and municipalities	—		25,891		359,940		149,398		535,229
Residential mortgage backed - agency	42		11,078		35,954		—		47,074
Residential mortgage backed - non-agency	91,412		91,836		92,752		8,826		284,826
Commercial mortgage backed - agency	134		23,713		12,304		—		36,151
Commercial mortgage backed - non-agency	44,762		133,553		5,139		—		183,454
Asset-backed	8,445		34,470		36,400		—		79,315
Other	—		—		9,500		—		9,500
Total	$	174,689	$	462,316	$	577,346	$	158,224	$	1,372,575


	December 31, 2023
	Fair Value
	One Year or Less		One to Five Years		Five to Ten Years		After Ten Years		Total
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	29,588	$	127,212	$	22,271	$	—	$	179,071
Obligations of states and municipalities	—		24,269		321,827		117,107		463,203
Residential mortgage backed - agency	42		10,656		31,540		—		42,238
Residential mortgage backed - non-agency	89,310		87,333		81,304		8,084		266,031
Commercial mortgage backed - agency	134		22,941		11,810		—		34,885
Commercial mortgage backed - non-agency	43,898		128,962		4,201		—		177,061
Asset-backed	8,349		34,129		35,458		—		77,936
Other	—		—		8,014		—		8,014
Total	$	171,321	$	435,502	$	516,425	$	125,191	$	1,248,439

At year-end 2023 and 2022, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity.

The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023, and December 31, 2022.

Available-for-sale securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands):


	December 31, 2023
	Less Than Twelve Months				More Than Twelve Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Total Unrealized Losses
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	—	$	—	$	179,071	$	17,955	$	17,955
Obligations of states and municipalities	501		14		458,113		72,033		72,047
Residential mortgage backed - agency	36		—		42,203		4,836		4,836
Residential mortgage backed - non-agency	632		2		263,184		18,810		18,812
Commercial mortgage backed - agency	—		—		34,080		1,294		1,294
Commercial mortgage backed - non-agency	23,437		254		153,625		6,139		6,393
Asset-backed	3,721		9		56,106		1,393		1,402
Other	—		—		8,014		1,486		1,486
Total	$	28,327	$	279	$	1,194,396	$	123,946	$	124,225


	December 31, 2022
	Less Than Twelve Months				More Than Twelve Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Total Unrealized Losses
Securities Available-for-Sale
U.S. Treasuries and government agencies	$	28,399	$	1,131	$	146,594	$	22,030	$	23,161
Obligations of states and municipalities	128,373		12,378		320,287		84,317		96,695
Residential mortgage backed - agency	7,258		26		41,975		4,810		4,836
Residential mortgage backed - non-agency	204,866		11,822		134,056		14,868		26,690
Commercial mortgage backed - agency	23,026		562		34,847		1,390		1,952
Commercial mortgage backed - non-agency	144,193		6,171		23,374		2,249		8,420
Asset-backed	43,472		815		50,088		2,399		3,214
Other	6,877		623		1,766		234		857
Total	$	586,464	$	33,528	$	752,987	$	132,297	$	165,825

The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying

collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor.

This includes, but is not limited to, an evaluation of the type of security, length of time, and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the CECL standard, and declines due to non-credit factors are recorded in accumulated other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, in the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment (“OTTI”) approach.

The Company did not record an ACL on the AFS securities at December 31, 2023. The Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 392 securities in an unrealized loss position as of December 31, 2023. The Company has evaluated AFS securities in an unrealized loss position for credit-related impairment at December 31, 2023, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on AFS securities at December 31, 2023.

On January 1, 2023, the Company adopted the CECL methodology as required under ASC 326. Under the CECL methodology an ACL is required for impaired available-for-sale securities. As of the previous two year ends, the Company was relying on ASC 320-10 which required the Company to assess if OTTI existed with respect to its security portfolio. As of December 31, 2022, the Company had no cumulative OTTI. There were no OTTI charges in earnings as a result of credit losses on investments in the years ended December 31, 2022, or December 31, 2021.

Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities

At December 31, 2023, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 16 Residential Mortgage Backed – Agency securities, and 15 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2023.

Securities of U.S. States and Municipalities

At December 31, 2023, the unrealized losses associated with 201 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These investments are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2023.

Residential & Commercial Mortgage Backed – Non-Agency Securities

At December 31, 2023, the unrealized losses associated with 90 Residential Mortgage Backed – Non-Agency securities and 33 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2023.

Asset-Backed Securities

At December 31, 2023, the unrealized losses associated with 22 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2023.

Other Securities

At December 31, 2023, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments are underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2023.

Restricted stock, at cost

The Company’s investment in FHLB stock totaled $5.9 million and $16.4 million at December 31, 2023, and 2022, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be impaired at December 31, 2023, and no impairment has been recognized. FHLB stock is included in a separate line item, Restricted stock, at cost on the Consolidated Balance Sheets and is not part of the Company’s AFS investment securities portfolio. The Company’s Restricted stock line item on the Consolidated Balance Sheets also includes an investment in Community Bankers’ Bank, totaling $50 thousand at both December 31, 2023, and December 31, 2022, which is carried at cost and is not impaired at December 31, 2023.

Leased Property - Schedule of Undiscounted Lease Payments for Finance and Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Operating Lease, Liability [Abstract]
2024	$ 2,418
2025	1,075
2026	622
2027	572
2028	548
Thereafter	475
Total undiscounted lease payments	5,710
Less: discount	(383)
Operating leases	5,327	$ 7,592
Finance Lease, Liability [Abstract]
2024	327
2025	334
2026	341
2027	347
2028	354
Thereafter	2,993
Total undiscounted lease payments	4,696
Less: discount	(856)
Finance Leases	$ 3,840	$ 2,745

Transactions with Related Parties (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Aggregate Loan Balances with Related Parties

Aggregate loan balances with related parties were as follows (in thousands):


	2023
Balance, beginning	$	96,397
New loans	32,055
Repayments	(4,038)
Balance, ending	$	124,414

Securities - Schedule of Available-for-Sale Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less Than Twelve Months, Fair Value	$ 28,327	$ 586,464
AFS, Less Than Twelve Months, Gross Unrealized Losses	279	33,528
AFS, More Than Twelve Months, Fair Value	1,194,396	752,987
AFS, More Than Twelve Months, Gross Unrealized Losses	123,946	132,297
Total Unrealized Losses	124,225	165,825
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less Than Twelve Months, Fair Value	0	28,399
AFS, Less Than Twelve Months, Gross Unrealized Losses	0	1,131
AFS, More Than Twelve Months, Fair Value	179,071	146,594
AFS, More Than Twelve Months, Gross Unrealized Losses	17,955	22,030
Total Unrealized Losses	17,955	23,161
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less Than Twelve Months, Fair Value	501	128,373
AFS, Less Than Twelve Months, Gross Unrealized Losses	14	12,378
AFS, More Than Twelve Months, Fair Value	458,113	320,287
AFS, More Than Twelve Months, Gross Unrealized Losses	72,033	84,317
Total Unrealized Losses	72,047	96,695
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less Than Twelve Months, Fair Value	36	7,258
AFS, Less Than Twelve Months, Gross Unrealized Losses	0	26
AFS, More Than Twelve Months, Fair Value	42,203	41,975
AFS, More Than Twelve Months, Gross Unrealized Losses	4,836	4,810
Total Unrealized Losses	4,836	4,836
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less Than Twelve Months, Fair Value	632	204,866
AFS, Less Than Twelve Months, Gross Unrealized Losses	2	11,822
AFS, More Than Twelve Months, Fair Value	263,184	134,056
AFS, More Than Twelve Months, Gross Unrealized Losses	18,810	14,868
Total Unrealized Losses	18,812	26,690
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less Than Twelve Months, Fair Value	0	23,026
AFS, Less Than Twelve Months, Gross Unrealized Losses	0	562
AFS, More Than Twelve Months, Fair Value	34,080	34,847
AFS, More Than Twelve Months, Gross Unrealized Losses	1,294	1,390
Total Unrealized Losses	1,294	1,952
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less Than Twelve Months, Fair Value	23,437	144,193
AFS, Less Than Twelve Months, Gross Unrealized Losses	254	6,171
AFS, More Than Twelve Months, Fair Value	153,625	23,374
AFS, More Than Twelve Months, Gross Unrealized Losses	6,139	2,249
Total Unrealized Losses	6,393	8,420
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less Than Twelve Months, Fair Value	3,721	43,472
AFS, Less Than Twelve Months, Gross Unrealized Losses	9	815
AFS, More Than Twelve Months, Fair Value	56,106	50,088
AFS, More Than Twelve Months, Gross Unrealized Losses	1,393	2,399
Total Unrealized Losses	1,402	3,214
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less Than Twelve Months, Fair Value	0	6,877
AFS, Less Than Twelve Months, Gross Unrealized Losses	0	623
AFS, More Than Twelve Months, Fair Value	8,014	1,766
AFS, More Than Twelve Months, Gross Unrealized Losses	1,486	234
Total Unrealized Losses	$ 1,486	$ 857

Defined Benefit Pension Plan - Narrative (Details)	12 Months Ended
Defined Benefit Pension Plan - Narrative (Details)	Dec. 31, 2023
Retirement Benefits [Abstract]
Defined benefit plan, vesting period	5 years

Transactions with Related Parties - Schedule of Aggregate Loan Balances with Related Parties (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning	$ 1,887,221
Balance, ending	2,087,756
Related Party
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning	96,397
New loans	32,055
Repayments	(4,038)
Balance, ending	$ 124,414

Deposits

12 Months Ended

Dec. 31, 2023

Financial Services, Banking and Thrift [Abstract]

Deposits

The aggregate amount of time deposits that meet or exceed the FDIC Insurance limit of $250,000, was approximately $92.3 million and $32.6 million on December 31, 2023, and December 31, 2022, respectively. Brokered time deposits, which are fully insured, totaled $389.0 million and $100.3 million at December 31, 2023, and December 31, 2022, respectively. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $24.2 million at December 31, 2023, compared to $11.7 million at December 31, 2022.

At December 31, 2023, the scheduled maturities of time deposits, including brokered time deposits, for the next five years were as follows (in thousands):


Years ending December 31,
2024	$	384,207
2025	140,532
2026	83,546
2027	49,354
2028	78,420
Total	$	736,059

At December 31, 2023, and December 31, 2022, amounts included in time deposits for individual retirement accounts totaled $28.5 million and $36.9 million, respectively.

Overdrafts of $110 thousand and $503 thousand were reclassified to loans as of the year ended December 31, 2023, and December 31, 2022, respectively.

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Components of Non-interest Income

The following table presents the components of non-interest income for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 (in thousands):


	2023		2022		2021
Service charges and fees(1)
Debit card fees	$	4,175	$	4,454	$	4,413
Deposit related fees	2,409		2,308		1,792
Other fees	86		93		123
Fiduciary and wealth management(1)
Trust fees	3,074		3,176		3,297
Advisory fees	1,866		1,575		1,342
Other fees	414		558		523
Net gains (losses) on securities(2)	(112)		(454)		(4)
Income from life insurance(2)	2,844		2,656		2,325
Other non-interest income(1)
FHLB dividend(2)	643		484		409
Merchant & credit card fees	748		801		730
Safety deposit fees	359		394		411
Servicing release premium	138		58		1,303
Wire fees	350		358		372
Customer loan swap fees	414		—		—
Other non-interest(3)	544		626		215
Total non-interest income	$	17,952	$	17,087	$	17,251

__________________

(1)Income within the scope of ASC 606 - Revenue Recognition

(2)Income excluded from the scope of ASC 606 - Revenue Recognition

(3)Includes income that arises from the Company electing the FVO as stated that is not within the scope of ASC 606.

Securities - Schedule of Carrying Amount of Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	$ 1,372,575	$ 1,537,420
Gross Unrealized Gains	89	162
Gross Unrealized Losses	124,225	165,825
Fair Value	1,248,439	1,371,757
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	197,026	198,154
Gross Unrealized Gains	0	0
Gross Unrealized Losses	17,955	23,161
Fair Value	179,071	174,993
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	535,229	550,590
Gross Unrealized Gains	21	12
Gross Unrealized Losses	72,047	96,695
Fair Value	463,203	453,907
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	47,074	57,883
Gross Unrealized Gains	0	14
Gross Unrealized Losses	4,836	4,836
Fair Value	42,238	53,061
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	284,826	365,983
Gross Unrealized Gains	17	2
Gross Unrealized Losses	18,812	26,690
Fair Value	266,031	339,295
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	36,151	61,810
Gross Unrealized Gains	28	75
Gross Unrealized Losses	1,294	1,952
Fair Value	34,885	59,933
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	183,454	191,709
Gross Unrealized Gains	0	10
Gross Unrealized Losses	6,393	8,420
Fair Value	177,061	183,299
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	79,315	101,791
Gross Unrealized Gains	23	49
Gross Unrealized Losses	1,402	3,214
Fair Value	77,936	98,626
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total	9,500	9,500
Gross Unrealized Gains	0	0
Gross Unrealized Losses	1,486	857
Fair Value	$ 8,014	$ 8,643

Share-Based Compensation - Schedule of Restricted Stock Unit (RSU) Awards (Details) - Restricted Stock Units (RSUs)	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Shares
Beginning nonvested (in shares) \| shares	122,440
Granted (in shares) \| shares	25,705
Vested (in shares) \| shares	(4,560)
Forfeited (in shares) \| shares	0
Ending nonvested (in shares) \| shares	143,585
Weighted-Average Grant-Date Fair Value
Beginning nonvested (in usd per share) \| $ / shares	$ 48.00
Granted (in usd per share) \| $ / shares	67.02
Vested (in usd per share) \| $ / shares	54.07
Forfeited (in usd per share) \| $ / shares	0
Ending nonvested (in usd per share) \| $ / shares	$ 51.21

Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Determination of Fair Value

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an 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 our own assumptions that market participants would use in pricing an asset or liability.

In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the 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 without relying exclusively on quoted prices for the specific securities but rather by relying on 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).

Derivatives

The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2).

Loans held-for-sale, at fair value

The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market.

Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):


	Fair Value Measurements at December 31, 2023 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets
Investment Securities
U.S. Treasuries and government agencies	$	179,071	$	—	$	—	$	179,071
Obligations of state and municipalities	—		463,203		—		463,203
Residential mortgage backed - agency	—		42,238		—		42,238
Residential mortgage backed - non-agency	—		266,031		—		266,031
Commercial mortgage backed - agency	—		34,885		—		34,885
Commercial mortgage backed - non-agency	—		177,061		—		177,061
Asset backed	—		77,936		—		77,936
Other	—		8,014		—		8,014
Total investment securities available-for-sale	$	179,071	$	1,069,368	$	—	$	1,248,439

Loans held-for-sale, at fair value	$	—	$	1,497	$	—	$	1,497

Derivatives	$	—	$	1,063	$	—	$	1,063

Financial liabilities
Derivatives	$	—	$	2,045	$	—	$	2,045


	Fair Value Measurements at December 31, 2022 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets
Investment Securities
U.S. Treasuries and government agencies	$	174,993	$	—	$	—	$	174,993
Obligations of state and municipalities	—		453,907		—		453,907
Residential mortgage backed - agency	—		53,061		—		53,061
Residential mortgage backed - non-agency	—		339,295		—		339,295
Commercial mortgage backed - agency	—		59,933		—		59,933
Commercial mortgage backed - non-agency	—		183,299		—		183,299
Asset backed	—		98,626		—		98,626
Other	—		8,643		—		8,643
Total investment securities available-for-sale	$	174,993	$	1,196,764	$	—	$	1,371,757

Loans held-for-sale, at fair value	$	—	$	—	$	—	$	—

Derivatives	$	—	$	1,311	$	—	$	1,311

Financial liabilities
Derivatives	$	—	$	3,565	$	—	$	3,565

The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a non-recurring basis in the financial statements:

Individually evaluated loans

Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a non-recurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected.

The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or, if collateral-dependent, based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. 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.

Other real estate owned

Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.

Assets that were measured at fair value on a non-recurring basis during the period are summarized below (in thousands):


	Fair Value Measurements at December 31, 2023 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Impaired Loans:
Commercial real estate	$	—	$	—	$	286	$	286
Owner-occupied commercial real estate	—		—		1,315		1,315
Acquisition, construction & development	—		—		—		—
Commercial & industrial	—		—		—		—
Single family residential	—		—		1,816		1,816
Consumer non-real estate and other	—		—		—		—
Other real estate owned	—		—		—		—


	Fair Value Measurements at December 31, 2022 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Impaired Loans:
Commercial real estate	$	—	$	—	$	290	$	290
Owner-occupied commercial real estate	—		—		1,295		1,295
Acquisition, construction & development	—		—		—		—
Commercial & industrial	—		—		—		—
Single family residential	—		—		911		911
Consumer non-real estate and other	—		—		—		—
Other real estate owned	—		—		—		—

Description

Fair Value

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

December 31, 2023

Individually evaluated loans

3,417

Income, Market, & Discounted cash flow analysis

External appraised values; management assumptions regarding market trends, market rate for borrower, or other relevant factors

3.6% - 9%

5.4%

December 31, 2022

Individually evaluated loans

2,496

Income, Market, & Discounted cash flow analysis

External appraised values; management assumptions regarding market trends, market rate for borrower, or other relevant factors

4.5% - 6%

5.2%

Fair value of financial instruments

The carrying amounts and estimated fair values of financial instruments not carried at fair value, at December 31, 2023, and December 31, 2022, were as follows (in thousands):


			Fair Value Measurements at December 31, 2023 Using:
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)		Total
Financial Assets
Cash and due from banks	$	8,896	$	8,896	$	—	$	—	$	8,896
Interest-bearing deposits with banks	35,602		35,602		—		—		35,602
Loans, net	2,062,455		—		—		1,897,459		1,897,459
Accrued interest	15,895		—		15,895		—		15,895

Financial liabilities
Non-interest-bearing	$	830,320	$	—	$	830,320	$	—	$	830,320
Interest-bearing	2,171,561		—		2,167,218		—		2,167,218
Other borrowed funds	272,000		—		271,716		—		271,716
Accrued interest	8,954		—		8,954		—		8,954


			Fair Value Measurements at December 31, 2022 Using:
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)		Total
Financial Assets
Cash and due from banks	$	9,124	$	9,124	$	—	$	—	$	9,124
Interest-bearing deposits with banks	41,171		41,171		—		—		41,171
Loans, net	1,866,182		—		—		1,768,903		1,768,903
Accrued interest	15,481		—		15,481		—		15,481

Financial liabilities
Non-interest-bearing	$	960,692	$	—	$	960,692	$	—	$	960,692
Interest-bearing	1,959,708		—		1,951,227		—		1,951,227
Other borrowed funds	343,100		—		342,904		—		342,904
Accrued interest	1,452		—		1,452		—		1,452

- 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

Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current Expense:
Federal	$ 3,592	$ 5,501	$ 5,564
State	230	1,388	372
Current expense	3,822	6,889	5,936
Deferred Expense:
Federal	(1,422)	1,318	(1,401)
State	(31)	79	(258)
Deferred expense	(1,453)	1,397	(1,659)
Total	$ 2,369	$ 8,286	$ 4,277

- Definition

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

+ References + Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Advances and Other Borrowings - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Borrowed funds	$ 272,000,000	$ 343,100,000
Weighted average interest rate on debt	4.75%	4.42%
Outstanding amount for short-term debt	$ 293,900,000	$ 269,500,000
Unused funds for short-term debt	987,000,000
Securities and loans pledged	797,800,000	$ 698,100,000
Short-Term Debt
Short-Term Debt [Line Items]
Borrowed funds	$ 272,000
Minimum \| Short-Term Debt
Short-Term Debt [Line Items]
Interest rate on debt	4.38%	4.13%
Maximum \| Short-Term Debt
Short-Term Debt [Line Items]
Interest rate on debt	5.57%	4.57%

Loans

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Loans

The Company’s loan portfolio segments, as reported in the tables below, include (i) commercial real estate, (ii) owner-occupied commercial real estate, (iii) acquisition, construction & development, (iv) commercial & industrial, (v) single family residential (1-4 units), and (vi) consumer non-real estate and other. The risks associated with lending activities differ among the various loan segments and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions.

•Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral.

•Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral.

•Acquisition, construction & development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral.

•Commercial & industrial loans carry the risk associated with the operations of the business and the value of the collateral, if any.

•Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purpose carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral.

•Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any.

Loans at year-end by portfolio segment were as follows (in thousands):


	2023		2022
Commercial real estate	$	1,309,084	$	1,109,315
Owner-occupied commercial real estate	131,381		127,114
Acquisition, construction & development	49,091		94,450
Commercial & industrial	67,847		53,514
Single family residential (1-4 units)	527,980		499,362
Consumer non-real estate and other	2,373		3,466
Loans, gross	2,087,756		1,887,221
Allowance for credit losses	(25,301)		(21,039)
Loans, net	$	2,062,455	$	1,866,182

Net deferred loan fees included in the above loan categories totaled $3.5 million and $3.3 million at December 31, 2023, and December 31, 2022, respectively. The Company holds $3.0 million and $7.9 million in Paycheck Protection Program loans, net of deferred fees and costs as of December 31, 2023, and December 31, 2022, respectively.

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Net gains (losses) on securities	$ (112)	$ (454)	$ (4)
Income from company-owned life insurance	2,844	2,656	2,325
Other non-interest income	3,196	2,721	3,440
Total non-interest income	17,952	17,087	17,251
Service charges and fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	6,670	6,855	6,328
Debit card fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	4,175	4,454	4,413
Deposit related fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	2,409	2,308	1,792
Other fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	86	93	123
Fiduciary and wealth management
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	5,354	5,309	5,162
Trust fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	3,074	3,176	3,297
Advisory fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1,866	1,575	1,342
Other fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	414	558	523
FHLB dividend
Disaggregation of Revenue [Line Items]
Other non-interest income	643	484	409
Merchant & credit card fees
Disaggregation of Revenue [Line Items]
Other non-interest income	748	801	730
Safety deposit fees
Disaggregation of Revenue [Line Items]
Other non-interest income	359	394	411
Servicing release premium
Disaggregation of Revenue [Line Items]
Other non-interest income	138	58	1,303
Wire fees
Disaggregation of Revenue [Line Items]
Other non-interest income	350	358	372
Customer loan swap fees
Disaggregation of Revenue [Line Items]
Other non-interest income	414	0	0
Other non-interest
Disaggregation of Revenue [Line Items]
Other non-interest income	$ 544	$ 626	$ 215

Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Credit Loss [Abstract]

Allowance for Credit Losses

On January 1, 2023, the Company adopted the CECL methodology as required under ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standards update refer to Note 1 — Nature of Business Activities and Significant Accounting Policies in these Notes to Consolidated Financial Statements. All information presented as of December 31, 2023, is in accordance with ASC 326. All other information presented prior to January 1, 2023, is in accordance with previous applicable GAAP.

The Company’s ACL is calculated quarterly, with any adjustment recorded to the provision for credit losses in the Consolidated Statements of Income. Management calculates the quantitative portion of collectively evaluated loans for all loan categories using the WARM method. For purposes of estimating the Company’s ACL, management generally evaluates collectively evaluated loans by federal call code in order to group loans with similar risk characteristics.

Loans that do not share similar risk characteristics are evaluated on an individual loan basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans that are collectively evaluated on a loan pool basis. A specific reserve analysis may be applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the

expected future cash flows. A specific reserve is assigned if the measured value of the loan using one of the before mentioned methods is less than the carrying value of the loan.

Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond the information that is used to calculate a reasonable and supportable forecast and a reversion period forecast on collectively evaluated loans. Management may consider an additional or reduced reserve as warranted through qualitative risk factors based on the current and expected conditions, as measured in supplemental information relative to the macroeconomic variable loss drivers used to calculate a reasonable and supportable forecast and a reversion period forecast. These qualitative risk factors considered by management are largely comparable to legacy factors prior to the adoption of CECL.


	Commercial real estate		Owner-occupied commercial real estate		Acquisition, construction & development		Commercial & industrial		Single family residential (1-4 units)		Consumer non-real estate and other		Unallocated		Total
December 31, 2023
Beginning balance, prior to adoption of CECL	$	15,477	$	635	$	2,082	$	438	$	2,379	$	28	$	—	$	21,039
Impact of adoption CECL	2,686		(6)		(640)		237		1,661		187		—		4,125
Provision for (recapture of) credit losses	2,432		154		(1,074)		(1)		(1,295)		19		—		235
Charge-offs	—		—		—		(29)		—		(165)		—		(194)
Recoveries	38		—		—		—		52		6		—		96
Balance, end of period	$	20,633	$	783	$	368	$	645	$	2,797	$	75	$	—	$	25,301

	Commercial real estate		Owner-occupied commercial real estate		Acquisition, construction & development		Commercial & industrial		Single family residential (1-4 units)		Consumer non-real estate and other		Unallocated		Total
December 31, 2022
Balance, beginning of period	$	25,112	$	611	$	2,189	$	165	$	2,434	$	18	$	1,180	$	31,709
Provision for (recapture of) loan losses	(6,391)		24		(107)		293		(239)		134		(1,180)		(7,466)
Charge-offs	(3,282)		—		—		(20)		—		(148)		—		(3,450)
Recoveries	38		—		—		—		184		24		—		246
Balance, end of period	$	15,477	$	635	$	2,082	$	438	$	2,379	$	28	$	—	$	21,039

	Commercial real estate		Owner-occupied commercial real estate		Acquisition, construction & development		Commercial & industrial		Single family residential (1-4 units)		Consumer non-real estate and other		Unallocated		Total
December 31, 2021
Balance, beginning of period	$	23,356	$	1,196	$	3,075	$	73	$	3,757	$	60	$	1,180	$	32,697
Provision for (recapture of) loan losses	1,870		(602)		(886)		72		(1,490)		34		—		(1,002)
Charge-offs	(127)		—		—		—		(16)		(99)		—		(242)
Recoveries	13		17		—		20		183		23		—		256
Balance, end of period	$	25,112	$	611	$	2,189	$	165	$	2,434	$	18	$	1,180	$	31,709

and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands).


	Commercial real estate		Owner-occupied commercial real estate		Acquisition, construction & development		Commercial & industrial		Single family residential (1-4 units)		Consumer non-real estate and other		Unallocated		Total
December 31, 2022
Allowance for loan losses
Individually evaluated for impairment	$	41	$	102	$	—	$	—	$	96	$	—	$	—	$	239
Collectively evaluated for impairment	15,436		533		2,082		438		2,283		28		—		20,800
Total ending allowance balance	$	15,477	$	635	$	2,082	$	438	$	2,379	$	28	$	—	$	21,039

Loan balance:
Individually evaluated for impairment	$	331	$	2,580	$	—	$	—	$	6,158	$	—	$	—	$	9,069
Collectively evaluated for impairment	1,108,984		124,534		94,450		53,514		493,204		3,466		—		1,878,152
Total ending loan balance	$	1,109,315	$	127,114	$	94,450	$	53,514	$	499,362	$	3,466	$	—	$	1,887,221

Prior to the adoption of CECL, loans were considered impaired when, based on current information and events as of the measurement date, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans included loans on non-accrual status and accruing TDRs. When determining if the Company would be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement, the Company considered the borrower’s capacity to pay, which included such factors as the borrower’s current financial statements, an analysis of the global cash flow sufficient to pay all debt obligations, and an evaluation of secondary sources of repayment, such as guarantor support and collateral value.

The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022 (in thousands).


	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized (1)
December 31, 2022
With no related allowance recorded:
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Owner-occupied commercial real estate	1,184		1,394		—		1,291		97
Acquisition, construction & development	—		—		—		—		—
Commercial & industrial	—		—		—		—		—
Single family residential (1-4 units)	5,151		5,576		—		5,131		213
Consumer non-real estate and other	—		—		—		—		—
Subtotal	$	6,335	$	6,970	$	—	$	6,422	$	310

With an allowance recorded:
Commercial real estate	$	331	$	331	$	41	$	350	$	23
Owner-occupied commercial real estate	1,397		1,397		102		1,420		74
Acquisition, construction & development	—		—		—		—		—
Commercial & industrial	—		—		—		—		—
Single family residential (1-4 units)	1,007		1,141		96		1,033		57
Consumer non-real estate and other	—		—		—		—		—
Subtotal	$	2,735	$	2,869	$	239	$	2,803	$	154

(1)Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022.


	December 31, 2023
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total Past Due		Current Loans		Total Loans		90 Days Past Due & Still Accruing		Non-accrual loans
Commercial real estate	$	10,496	$	—	$	—	$	10,496	$	1,298,588	$	1,309,084	$	—	$	—
Owner-occupied commercial real estate	—		—		790		790		130,591		131,381		—		1,000
Acquisition, construction & development	—		—		—		—		49,091		49,091		—		—
Commercial & industrial	195		364		—		559		67,288		67,847		—		—
Single family residential (1-4 units)	1,657		289		1,532		3,478		524,502		527,980		—		2,744
Consumer non-real estate and other	3		—		—		3		2,370		2,373		—		—
Total	$	12,351	$	653	$	2,322	$	15,326	$	2,072,430	$	2,087,756	$	—	$	3,744

	December 31, 2022
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total Past Due		Current Loans		Total Loans		90 Days Past Due & Still Accruing		Non-accrual loans
Commercial real estate	$	—	$	—	$	—	$	—	$	1,109,315	$	1,109,315	$	—	$	—
Owner-occupied commercial real estate	—		—		—		—		127,114		127,114		—		1,184
Acquisition, construction & development	—		—		—		—		94,450		94,450		—		—
Commercial & industrial	—		—		—		—		53,514		53,514		—		—
Single family residential (1-4 units)	1,403		154		546		2,103		497,259		499,362		—		4,313
Consumer non-real estate and other	—		4		—		4		3,462		3,466		—		—
Total	$	1,403	$	158	$	546	$	2,107	$	1,885,114	$	1,887,221	$	—	$	5,497

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, current economic information, and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company internally grades all commercial loans at the time of origination. In addition, the Company performs an annual review on the top twenty-five non-homogenous commercial loan relationships as measured by total Company exposure to each borrower. The Company uses the following definitions for credit risk classifications:

Pass: These include satisfactory loans that have acceptable levels of risk.

Special Mention: Loans classified as special mention have a potential credit 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 of the institution’s credit position at some future date.

Substandard: Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of debt. Loans classified as substandard are inadequately protected by sound net worth, payment capacity of the borrower, or of the collateral pledged. If weaknesses go uncorrected, there is potential for partial loss of principal and/or interest.

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 unlikely.

Loss: Loans classified as a loss are considered to be uncollectible and cannot be justified to continue as viable assets. While there may be the possibility of some recovery in the future, it is not practical or desirable to defer writing off these loans at the present time.

The Company has a portfolio of smaller homogenous loans that are not individually risk rated that are included within the single family residential and consumer non-real estate and other loan classes. Generally, these loan classes are rated as “Pass,” unless these loans are on non-accrual, and are then classified as substandard.

The following table presents the amortized cost basis of the loan portfolio by year of origination, loan class, and credit quality, as of December 31, 2023 (in thousands).


	Term Loans
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial real estate
Pass	$	195,857	$	261,817	$	166,253	$	22,791	$	75,170	$	416,774	$	36,761	$	1,175,423
Special Mention	—		12,235		35,449		—		4,876		—		—		52,560
Substandard	—		15,420		12,847		—		2,209		50,625		—		81,101
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	195,857	$	289,472	$	214,549	$	22,791	$	82,255	$	467,399	$	36,761	$	1,309,084

Year to date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Owner-occupied commercial real estate
Pass	$	9,309	$	31,725	$	11,229	$	14,103	$	10,279	$	43,616	$	6,184	$	126,445
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		532		—		—		—		4,404		—		4,936
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	9,309	$	32,257	$	11,229	$	14,103	$	10,279	$	48,020	$	6,184	$	131,381

Year to date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Acquisition, construction & development
Pass	$	8,535	$	24,286	$	13,698	$	—	$	728	$	241	$	1,603	$	49,091
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	8,535	$	24,286	$	13,698	$	—	$	728	$	241	$	1,603	$	49,091

Year to date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial & industrial
Pass	$	29,111	$	15,204	$	4,344	$	162	$	15	$	1,335	$	16,854	$	67,025
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		822		—		—		—		—		822
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	29,111	$	15,204	$	5,166	$	162	$	15	$	1,335	$	16,854	$	67,847

Year to date gross charge-offs	$	—	$	—	$	—	$	29	$	—	$	—	$	—	$	29


Single family residential (1-4 units)
Pass	$	78,222	$	122,067	$	60,202	$	32,158	$	40,938	$	137,376	$	54,273	$	525,236
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		291		243		—		2,171		39		2,744
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	78,222	$	122,067	$	60,493	$	32,401	$	40,938	$	139,547	$	54,312	$	527,980

Year to date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer non-real estate and other
Pass	$	334	$	150	$	43	$	151	$	386	$	325	$	984	$	2,373
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	334	$	150	$	43	$	151	$	386	$	325	$	984	$	2,373

Year to date gross charge-offs	$	—	$	165	$	—	$	—	$	—	$	—	$	—	$	165

Totals	$	321,368	$	483,436	$	305,178	$	69,608	$	134,601	$	656,867	$	116,698	$	2,087,756

The value of outstanding loans by credit quality indicators as of December 31, 2022, were as follows (in thousands):


	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2022
Commercial real estate	$	1,011,025	$	62,907	$	35,383	$	—	$	—	$	1,109,315
Owner-occupied commercial real estate	121,621		1,963		3,530		—		—		127,114
Acquisition, construction & development	68,220		836		25,394		—		—		94,450
Commercial & industrial	53,273		—		241		—		—		53,514
Single family residential (1-4 units)	494,994		55		4,313		—		—		499,362
Consumer non-real estate and other	3,466		—		—		—		—		3,466
Total	$	1,752,599	$	65,761	$	68,861	$	—	$	—	$	1,887,221

The following tables present information about collateral-dependent loans that were individually evaluated for purposes of determining the ACL as of December 31, 2023 (in thousands).


	Collateral Dependent Loans
	With Allowance				With No Related Allowance		Total
	Amortized Cost		Related Allowance		Amortized Cost		Amortized Cost		Related Allowance
December 31, 2023
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Owner-occupied commercial real estate	—		—		1,000		1,000		—
Acquisition, construction & development	—		—		—		—		—
Commercial & industrial	—		—		—		—		—
Single family residential (1-4 units)	—		—		2,744		2,744		—
Consumer non-real estate and other	—		—		—		—		—
Total	$	—	$	—	$	3,744	$	3,744	$	—

On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis. ASU 2022-02 eliminates the TDR accounting model and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty, and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan. This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20 - Receivables — Nonrefundable Fees and Other Costs, and subjects entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. Upon adoption of CECL, the Company loans classified as TDRs were individually evaluated for the ACL, and the measurement was done either using the collateral-dependent or the discounted cash flow method.

The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction, or an other-than-insignificant payment delay. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. The Company may also provide multiple types of modifications on an individual loan. For the year ended December 31, 2023, the Company did not extend any modifications to borrowers experiencing financial difficulty that had a more-than-insignificant direct change in the contractual cash flows of the loan.

The Company did not extend any modifications that were defined as TDRs during the years ended December 31, 2022, or December 31, 2021.

Regulatory Capital Matters - Schedule of Actual and Required Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Consolidated
Total Capital to risk-weighted assets
Actual Amount	$ 443,799	$ 433,958
Actual Ratio	0.1788	0.1888
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 260,694	$ 241,325
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 248,280	$ 229,834
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.100	0.100
Tier 1 (Core) Capital to risk-weighted assets
Actual Amount	$ 418,244	$ 412,946
Actual Ratio	0.1685	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 211,038	$ 195,358
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 198,624	$ 186,867
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.080	0.080
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 418,244	$ 412,946
Actual Ratio	0.1685	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 173,796	$ 160,883
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 161,382	$ 149,392
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.065	0.065
Tier 1 (Core) Capital to average assets
Actual Amount	$ 418,244	$ 412,946
Actual Ratio	0.1131	0.1134
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 147,965	$ 145,605
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 184,957	$ 182,007
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.050	0.050
Burke & Herbert Bank & Trust
Total Capital to risk-weighted assets
Actual Amount	$ 442,414	$ 432,290
Actual Ratio	0.1782	0.1881
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 260,626	$ 241,368
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 248,215	$ 229,874
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.100	0.100
Tier 1 (Core) Capital to risk-weighted assets
Actual Amount	$ 416,859	$ 411,251
Actual Ratio	0.1679	0.1789
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 210,983	$ 195,393
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 198,572	$ 183,900
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.080	0.080
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 416,859	$ 411,251
Actual Ratio	0.1679	0.1789
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 173,751	$ 160,912
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 161,340	$ 149,418
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.065	0.065
Tier 1 (Core) Capital to average assets
Actual Amount	$ 416,859	$ 411,251
Actual Ratio	0.1127	0.1130
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 147,986	$ 145,605
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 184,982	$ 182,007
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.050	0.050

Regulatory Capital Matters - Narrative (Details) $ in Millions	Dec. 31, 2023 USD ($)
Regulatory Capital Requirements under Banking Regulations [Abstract]
Retained earnings available to be declared as dividend	$ 181.8

Parent Company Financial Information - Schedule of Condensed Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Expense
Income tax benefit		$ (2,369)	$ (8,286)	$ (4,277)
Net income		22,692	$ 44,013	$ 36,165
Burke & Herbert Financial Services Corp.
Income
Dividends from bank subsidiary	$ 5,936	18,997
Total Income	5,936	18,997
Expense
Salaries and employee benefit	426	2,052
Other operating expenses	568	4,826
Total Expense	994	6,878
Income (loss) before income tax benefit and equity in undistributed income of subsidiaries	4,942	12,119
Income tax benefit	209	1,445
Income (loss) before equity in undistributed income of subsidiaries	5,151	13,564
Equity in undistributed earnings of subsidiary	38,862	9,128
Net income	$ 44,013	$ 22,692

Regulatory Capital Matters

12 Months Ended

Dec. 31, 2023

Regulatory Capital Requirements under Banking Regulations [Abstract]

Regulatory Capital Matters

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” 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 judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of December 31, 2023, the Company and the Bank meet all capital adequacy requirements to which they are 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. As of December 31, 2023, and December 31, 2022, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action.”

The table below presents the actual and required capital amounts and ratios for the Company and the Bank at December 31, 2023, and December 31, 2022 (in thousands).


	Actual				Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer)			To Be Well Capitalized Under Prompt Corrective Action Regulations
	Amount		Ratio		Amount		Ratio	Amount		Ratio
As of December 31, 2023
Total Capital to risk-weighted assets
Consolidated	$	443,799	17.88	%	$	260,694	≥ 10.5%	$	248,280	≥ 10.0%
Burke & Herbert Bank & Trust	442,414		17.82		260,626		≥ 10.5	248,215		≥ 10.0
Tier 1 (Core) Capital to risk-weighted assets
Consolidated	418,244		16.85		211,038		≥ 8.5	198,624		≥ 8.0
Burke & Herbert Bank & Trust	416,859		16.79		210,983		≥ 8.5	198,572		≥ 8.0
Common Tier 1 (CET 1) to risk-weighted assets
Consolidated	418,244		16.85		173,796		≥ 7.0	161,382		≥ 6.5
Burke & Herbert Bank & Trust	416,859		16.79		173,751		≥ 7.0	161,340		≥ 6.5
Tier 1 (Core) Capital to average assets
Consolidated	418,244		11.31		147,965		≥ 4.0	184,957		≥ 5.0
Burke & Herbert Bank & Trust	416,859		11.27		147,986		≥ 4.0	184,982		≥ 5.0


As of December 31, 2022
Total Capital to risk-weighted assets
Consolidated	$	433,958	18.88	%	$	241,325	≥ 10.5%	$	229,834	≥ 10.0%
Burke & Herbert Bank & Trust	432,290		18.81		241,368		≥ 10.5	229,874		≥ 10.0
Tier 1 (Core) Capital to risk-weighted assets
Consolidated	412,946		17.97		195,358		≥ 8.5	186,867		≥ 8.0
Burke & Herbert Bank & Trust	411,251		17.89		195,393		≥ 8.5	183,900		≥ 8.0
Common Tier 1 (CET 1) to risk-weighted assets
Consolidated	412,946		17.97		160,883		≥ 7.0	149,392		≥6.5
Burke & Herbert Bank & Trust	411,251		17.89		160,912		≥ 7.0	149,418		≥ 6.5
Tier 1 (Core) Capital to average assets
Consolidated	412,946		11.34		145,605		≥ 4.0	182,007		≥ 5.0
Burke & Herbert Bank & Trust	411,251		11.30		145,605		≥4.0	182,007		≥5.0

The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of December 31, 2023, approximately $181.8 million of retained earnings was available for dividend declaration without regulatory approval.

- 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

Regulatory Capital Matters (Tables)

12 Months Ended

Dec. 31, 2023

Regulatory Capital Requirements under Banking Regulations [Abstract]

Schedule of Actual and Required Capital Amounts and Ratios

The table below presents the actual and required capital amounts and ratios for the Company and the Bank at December 31, 2023, and December 31, 2022 (in thousands).


	Actual				Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer)			To Be Well Capitalized Under Prompt Corrective Action Regulations
	Amount		Ratio		Amount		Ratio	Amount		Ratio
As of December 31, 2023
Total Capital to risk-weighted assets
Consolidated	$	443,799	17.88	%	$	260,694	≥ 10.5%	$	248,280	≥ 10.0%
Burke & Herbert Bank & Trust	442,414		17.82		260,626		≥ 10.5	248,215		≥ 10.0
Tier 1 (Core) Capital to risk-weighted assets
Consolidated	418,244		16.85		211,038		≥ 8.5	198,624		≥ 8.0
Burke & Herbert Bank & Trust	416,859		16.79		210,983		≥ 8.5	198,572		≥ 8.0
Common Tier 1 (CET 1) to risk-weighted assets
Consolidated	418,244		16.85		173,796		≥ 7.0	161,382		≥ 6.5
Burke & Herbert Bank & Trust	416,859		16.79		173,751		≥ 7.0	161,340		≥ 6.5
Tier 1 (Core) Capital to average assets
Consolidated	418,244		11.31		147,965		≥ 4.0	184,957		≥ 5.0
Burke & Herbert Bank & Trust	416,859		11.27		147,986		≥ 4.0	184,982		≥ 5.0


As of December 31, 2022
Total Capital to risk-weighted assets
Consolidated	$	433,958	18.88	%	$	241,325	≥ 10.5%	$	229,834	≥ 10.0%
Burke & Herbert Bank & Trust	432,290		18.81		241,368		≥ 10.5	229,874		≥ 10.0
Tier 1 (Core) Capital to risk-weighted assets
Consolidated	412,946		17.97		195,358		≥ 8.5	186,867		≥ 8.0
Burke & Herbert Bank & Trust	411,251		17.89		195,393		≥ 8.5	183,900		≥ 8.0
Common Tier 1 (CET 1) to risk-weighted assets
Consolidated	412,946		17.97		160,883		≥ 7.0	149,392		≥6.5
Burke & Herbert Bank & Trust	411,251		17.89		160,912		≥ 7.0	149,418		≥ 6.5
Tier 1 (Core) Capital to average assets
Consolidated	412,946		11.34		145,605		≥ 4.0	182,007		≥ 5.0
Burke & Herbert Bank & Trust	411,251		11.30		145,605		≥4.0	182,007		≥5.0

Transactions with Related Parties - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Deposits	$ 3,001,881	$ 2,920,400
Related Party
Related Party Transaction [Line Items]
Deposits	$ 103,600	$ 109,100

Leased Property - Schedule of Right-of-Use Assets and Liabilities by Lease Type (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Right-of-use assets:
Operating leases	$ 5,110	$ 7,255
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Finance leases	$ 3,590	$ 2,620
Total right-of-use assets	8,700	9,875
Lease liabilities:
Operating leases	5,327	7,592
Finance Leases	3,840	2,745
Total lease liabilities	$ 9,167	$ 10,337
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued interest and other liabilities	Accrued interest and other liabilities
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued interest and other liabilities	Accrued interest and other liabilities
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets

Securities - Schedule of Expected Maturity for Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Amortized Cost
One Year or Less	$ 174,689
One to Five Years	462,316
Five to Ten Years	577,346
After Ten Years	158,224
Total	1,372,575	$ 1,537,420
Fair Value
One Year or Less	171,321
One to Five Years	435,502
Five to Ten Years	516,425
After Ten Years	125,191
Total	1,248,439	1,371,757
U.S. Treasuries and government agencies
Amortized Cost
One Year or Less	29,894
One to Five Years	141,775
Five to Ten Years	25,357
After Ten Years	0
Total	197,026	198,154
Fair Value
One Year or Less	29,588
One to Five Years	127,212
Five to Ten Years	22,271
After Ten Years	0
Total	179,071	174,993
Obligations of states and municipalities
Amortized Cost
One Year or Less	0
One to Five Years	25,891
Five to Ten Years	359,940
After Ten Years	149,398
Total	535,229	550,590
Fair Value
One Year or Less	0
One to Five Years	24,269
Five to Ten Years	321,827
After Ten Years	117,107
Total	463,203	453,907
Residential mortgage backed - agency
Amortized Cost
One Year or Less	42
One to Five Years	11,078
Five to Ten Years	35,954
After Ten Years	0
Total	47,074	57,883
Fair Value
One Year or Less	42
One to Five Years	10,656
Five to Ten Years	31,540
After Ten Years	0
Total	42,238	53,061
Residential mortgage backed - non-agency
Amortized Cost
One Year or Less	91,412
One to Five Years	91,836
Five to Ten Years	92,752
After Ten Years	8,826
Total	284,826	365,983
Fair Value
One Year or Less	89,310
One to Five Years	87,333
Five to Ten Years	81,304
After Ten Years	8,084
Total	266,031	339,295
Commercial mortgage backed - agency
Amortized Cost
One Year or Less	134
One to Five Years	23,713
Five to Ten Years	12,304
After Ten Years	0
Total	36,151	61,810
Fair Value
One Year or Less	134
One to Five Years	22,941
Five to Ten Years	11,810
After Ten Years	0
Total	34,885	59,933
Commercial mortgage backed - non-agency
Amortized Cost
One Year or Less	44,762
One to Five Years	133,553
Five to Ten Years	5,139
After Ten Years	0
Total	183,454	191,709
Fair Value
One Year or Less	43,898
One to Five Years	128,962
Five to Ten Years	4,201
After Ten Years	0
Total	177,061	183,299
Asset-backed
Amortized Cost
One Year or Less	8,445
One to Five Years	34,470
Five to Ten Years	36,400
After Ten Years	0
Total	79,315	101,791
Fair Value
One Year or Less	8,349
One to Five Years	34,129
Five to Ten Years	35,458
After Ten Years	0
Total	77,936	98,626
Other
Amortized Cost
One Year or Less	0
One to Five Years	0
Five to Ten Years	9,500
After Ten Years	0
Total	9,500	9,500
Fair Value
One Year or Less	0
One to Five Years	0
Five to Ten Years	8,014
After Ten Years	0
Total	$ 8,014	$ 8,643

Transactions with Related Parties

12 Months Ended

Dec. 31, 2023

Transactions with Related Parties

Loans to directors and principal officers, including their immediate families and affiliated companies in which they have a direct or indirect material interest, are considered to be related parties.

Aggregate loan balances with related parties were as follows (in thousands):


	2023
Balance, beginning	$	96,397
New loans	32,055
Repayments	(4,038)
Balance, ending	$	124,414

None of the loans are past due, on non-accrual status, or have been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. There were no loans to a related party that were considered classified loans at December 31, 2023, or December 31, 2022.

Deposits from related parties at years ended December 31, 2023, and December 31, 2022, were $103.6 million and $109.1 million.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Loans (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Schedule of Loans by Portfolio Segment

Loans at year-end by portfolio segment were as follows (in thousands):


	2023		2022
Commercial real estate	$	1,309,084	$	1,109,315
Owner-occupied commercial real estate	131,381		127,114
Acquisition, construction & development	49,091		94,450
Commercial & industrial	67,847		53,514
Single family residential (1-4 units)	527,980		499,362
Consumer non-real estate and other	2,373		3,466
Loans, gross	2,087,756		1,887,221
Allowance for credit losses	(25,301)		(21,039)
Loans, net	$	2,062,455	$	1,866,182

Accumulated Other Comprehensive Income (Loss) - Schedule of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	$ 146,896	$ 112,633	$ 100,820
Pensions and other employee benefits	9,401	7,700	7,621
Income tax expense (benefit)	(2,369)	(8,286)	(4,277)
Net of Tax	22,692	44,013	36,165
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of Tax	(3,566)	520	(308)
Reclassification out of Accumulated Other Comprehensive Income \| Cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	(1,749)	(167)	0
Income tax expense (benefit)	367	35	0
Net of Tax	(1,382)	(132)	0
Reclassification out of Accumulated Other Comprehensive Income \| Available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	(1,025)	0	0
Net gains/(losses) on securities	(112)	(454)	(4)
Income tax expense (benefit)	239	95	1
Net of Tax	(898)	(359)	(3)
Reclassification out of Accumulated Other Comprehensive Income \| Defined benefit pension plan
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Pensions and other employee benefits	(1,628)	1,280	(386)
Income tax expense (benefit)	342	(269)	81
Net of Tax	$ (1,286)	$ 1,011	$ (305)

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through the filing of this Form 10-K, and determined that there have been no material events that have occurred that would require adjustments to our disclosures in the consolidated financial statements.

Nature of Business Activities and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Principles of consolidation

Use of estimates

reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash, cash equivalents, and cash flows

Restriction on cash

No reserve balances were required at December 31, 2023, and December 31, 2022. There was no reserve requirement with the Federal Reserve as of December 31, 2023, or December 31, 2022.

Debt securities and Equity securities

Debt securities

Allowance for credit losses (“ACL”) - available-for-sale debt securities

loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income.

Accrued interest receivable on AFS debt securities totaled $7.5 million at December 31, 2023, and is excluded from the estimate of credit losses.

Equity securities

Loan commitments and related financial instruments

Loans held-for-sale

Mortgage banking derivatives

Derivatives

Loans

Concentration of credit risk

Allowance for credit losses

Allowance for credit losses - loans

•Nature and volume of loans;

•Concentrations of credit; and

•Delinquency trends.

specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan.

Allowance for credit losses - off-balance sheet credit exposures

Premises and equipment

Company-owned life insurance

Transfers of financial assets

Other real estate owned (OREO)

Income taxes

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

Pension plan and 401(k) plan & other plans

Pension plan

401(k) plan & other plans

Earnings per Common Share

Trust assets and fees

Loss contingencies

Comprehensive income (loss)

Leases

Fair value of financial instruments

prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Share-based compensation

Operating segment reporting

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 shareholder’s equity.

Adoption of New Accounting Standards and Newly Issued not yet Adopted Accounting Standards

Adoption of New Accounting Standards

beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP.


	January 1, 2023
	Reserves under Incurred Loss Model		Reserves under CECL Model		Impact of CECL Adoption
Financial Assets:
Commercial real estate	$	15,477	$	18,163	$	2,686
Owner-occupied commercial real estate	635		629		(6)
Acquisition, construction & development	2,082		1,442		(640)
Commercial & industrial	438		675		237
Single family residential (1-4 units)	2,379		4,040		1,661
Consumer non-real estate and other	28		215		187
Unallocated reserve	0		0		0
Allowance for credit losses on loans	$	21,039	$	25,164	$	4,125
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure	$	—	$	275	$	275

the timing and amount of cash flows. ASU 2022-01 renames that method the portfolio layer method. ASU 2022-01 was effective January 1, 2023.

Newly Issued not yet Adopted Accounting Standards

Fair Value Measurements

Determination of Fair Value

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 3 – Significant unobservable inputs that reflect our own 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

Derivatives

Loans held-for-sale, at fair value

Individually evaluated loans

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.

Other real estate owned

Leased Property - Schedule of Additional Information on Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Finance lease weighted average remaining lease term (years)	12 years 7 months 28 days	12 years 9 months 3 days
Finance lease weighted average discount rate	2.96%	2.22%
Operating lease weighted average remaining lease term (years)	3 years 8 months 15 days	3 years 3 months 3 days
Operating lease weighted average discount rate	3.33%	3.19%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 3,330	$ 2,557
Operating cash flows from finance leases	86	63	$ 39
Financing cash flows from finance leases	119	152	$ 152
Right-of-use assets obtained in exchange for new finance lease liabilities	1,214	0
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 1,558

Premises and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and equipment are included in the Balance Sheet at December 31, 2023, and December 31, 2022, were as follows (in thousands):


	2023		2022
Cost:
Land	$	14,626	$	14,626
Premises	64,181		56,999
Furniture and equipment	17,505		18,705
	96,312		90,330

Less:
Accumulated depreciation	(35,184)		(37,160)

Total	$	61,128	$	53,170

Depreciation and amortization (e.g. leasehold improvements) expense for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 was $2.9 million, $3.1 million, and $3.2 million, respectively.

In 2023, 2022, and 2021, the Company sold premises that resulted in a loss of $— million, and gains of $4.5 million, and $1.1 million, respectively, that is captured in other operating expenses on the Consolidated Statements of Income.