QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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( State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Large accelerated filer
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☐
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Accelerated filer
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☐
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☒
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Smaller reporting company
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Emerging growth company
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Page
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PART I.
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements
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4
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5
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6
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7
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8
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Item 2.
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31 |
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Item 3.
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50 |
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Item 4.
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50 |
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PART II.
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OTHER INFORMATION
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51 |
Item 1.
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51 |
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Item 1A.
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51 |
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Item 2.
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51 |
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Item 3. | 51 |
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Item 4. | 51 | |
Item 5. | 51 | |
Item 6.
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52 |
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52 |
Assets
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June 30, 2022
(unaudited)
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December 31, 2021
|
||||||
Cash and due from banks
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$
|
|
$
|
|
||||
Federal funds sold
|
||||||||
Cash and cash equivalents
|
||||||||
Interest-bearing time deposits in other banks
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|
|
||||||
Available-for-sale debt securities
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||||||||
Loans, net of allowance for loan losses of $
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|
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||||||
Loans held for sale
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|
||||||
Premises and equipment, net
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|
|
||||||
Nonmarketable equity securities
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|
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||||||
Core deposit intangibles
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||||||||
Goodwill
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||||||
Interest receivable and other assets
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||||||
Total assets
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$
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$
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|
||||
Liabilities and Shareholders’ Equity
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||||||||
Deposits
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||||||||
Noninterest-bearing
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$
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$
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||||
Interest-bearing
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|
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||||||
Total deposits
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||||||
Income taxes payable
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||||||
Interest payable and other liabilities
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||||||
Total liabilities
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||||||
Shareholders’ equity
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||||||||
Common stock, $
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||||||
Additional paid-in capital
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|
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||||||
Retained earnings
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|
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||||||
Accumulated other comprehensive income (loss)
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( |
) | ||||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
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$
|
|
$
|
|
|
Three months ended
June 30,
|
Six
months ended
June 30,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Interest Income
|
||||||||||||||||
Loans, including fees
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest-bearing time deposits in other banks
|
|
|
|
|
||||||||||||
Debt securities, taxable
|
||||||||||||||||
Debt securities, tax-exempt
|
||||||||||||||||
Other interest and dividend income
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||||||||||||
Total interest income
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||||||||||||
Interest Expense
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||||||||||||||||
Deposits
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||||||||||||
Total interest expense
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||||||||||||
Net Interest Income
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||||||||||||
Provision for Loan Losses
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||||||||||||
Net Interest Income After Provision for Loan Losses
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||||||||||||
Noninterest Income
|
||||||||||||||||
Secondary market income
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||||||||||||
Gain (Loss) on sales, maturities, prepayments and calls of available-for-sale debt securities
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( |
) | ||||||||||||||
Service charges on deposit accounts
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||||||||||||
Other
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||||||||||||
Total noninterest income
|
|
|
|
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||||||||||||
Noninterest Expense
|
||||||||||||||||
Salaries and employee benefits
|
|
|
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||||||||||||
Furniture and equipment
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||||||||||||
Occupancy
|
|
|
|
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||||||||||||
Data and item processing
|
|
|
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||||||||||||
Accounting, marketing and legal fees
|
|
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||||||||||||
Regulatory assessments
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||||||||||||
Advertising and public relations
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||||||||||||
Travel, lodging and entertainment
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||||||||||||
Other
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||||||||||||
Total noninterest expense
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||||||||||||
Income Before Taxes
|
|
|
|
|
||||||||||||
Income tax expense
|
|
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|
||||||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Earnings per common share - basic
|
$
|
|
$
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|
$
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|
$
|
|
||||||||
Earnings per common share - diluted
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding - basic
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|
|
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|
||||||||||||
Weighted average common shares outstanding - diluted
|
|
|
|
|
||||||||||||
Other Comprehensive Income
|
||||||||||||||||
Unrealized losses on securities, net of tax benefit of $
|
$ |
( |
) | $ |
$ |
( |
) | $ |
||||||||
Reclassification adjustment for realized (gain)loss included in net income, net of tax of $
|
( |
) | ||||||||||||||
Other comprehensive loss, net of tax benefit of $
|
$ |
( |
) | $ |
$ |
( |
) | $ |
||||||||
Comprehensive Income
|
$ |
$ |
$ |
$ |
|
Three Months Ended
June 30,
|
Six
Months Ended
June 30,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Common Stock (Shares)
|
||||||||||||||||
Balance at beginning of period
|
|
|
|
|
||||||||||||
Exercise of employee stock options
|
||||||||||||||||
Shares issued for restricted stock units
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||||||||||||
Balance at end of period
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|
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|
||||||||||||
Common Stock (Amount)
|
||||||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Shares issued for stock options
|
||||||||||||||||
Shares issued for restricted stock units
|
|
|||||||||||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Additional Paid-in Capital
|
||||||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Stock-based compensation expense
|
|
|
|
|
||||||||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Retained Earnings
|
||||||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net income
|
|
|
|
|
||||||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Accumulated Other Comprehensive Income (Loss) |
||||||||||||||||
Balance at beginning of period
|
$ |
( |
) | $ |
$ |
$ |
||||||||||
Net change due to unrealized loss
|
( |
) | ( |
) | ||||||||||||
Balance at end of period
|
$ |
( |
) | $ |
$ |
( |
) | $ |
||||||||
Total Shareholders’ equity
|
$
|
|
$
|
|
$
|
|
$
|
|
Six Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Operating Activities
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization
|
|
|
||||||
Provision for loan losses
|
|
|
||||||
Amortization of premiums and discounts on securities
|
||||||||
Gain on sales of loans
|
(
|
)
|
(
|
)
|
||||
Net loss on sale of available for sale debt securities
|
||||||||
Stock-based compensation expense
|
|
|
||||||
(Gain) loss on sale of premises and equipment
|
( |
) | ( |
) | ||||
Cash receipts from the sale of loans originated for sale
|
|
|
||||||
Cash disbursements for loans originated for sale
|
(
|
)
|
(
|
)
|
||||
Deferred income tax benefit
|
(
|
)
|
(
|
)
|
||||
Changes in
|
||||||||
Interest receivable and other assets
|
|
|
||||||
Interest payable and other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Investing Activities
|
||||||||
Maturities of interest-bearing time deposits in other banks
|
|
|
||||||
Purchases of interest-bearing time deposits in other banks
|
( |
) | ||||||
Proceeds from sale of available-for-sale debt securities
|
||||||||
Maturities, prepayments and calls of available-for-sale debt securities
|
||||||||
Purchases of available-for-sale debt securities
|
( |
) | ||||||
Net change in loans
|
(
|
)
|
(
|
)
|
||||
Purchases of premises and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of premises and equipment | ||||||||
Change in nonmarketable equity securities
|
|
(
|
)
|
|||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Financing Activities
|
||||||||
Net change in deposits
|
|
|
||||||
Cash distributions
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
(Decrease) Increase in Cash and Cash Equivalents
|
(
|
)
|
|
|||||
Cash and Cash Equivalents, Beginning of Period
|
|
|
||||||
Cash and Cash Equivalents, End of Period
|
$
|
|
$
|
|
||||
Supplemental Disclosure of Cash Flows Information
|
||||||||
Interest paid
|
$
|
|
$
|
|
||||
Income taxes paid
|
$ | $ | ||||||
Dividends declared and not paid
|
$
|
|
$
|
|
||||
Measurement period goodwill adjustment
|
$ | $ |
Note
2:
|
Recent Events, Including Mergers and
Acquisitions
|
Estimated Fair Value
|
||||
(in thousands)
|
||||
Assets Acquired
|
||||
Cash and cash equivalents
|
$
|
|
||
Available-for-sale debt securities
|
|
|||
Federal funds sold
|
|
|||
Loans
|
|
|||
Premises and equipment
|
|
|||
Core deposit intangible
|
|
|||
Prepaid expenses and other assets
|
|
|||
Total assets acquiried
|
$ |
|
||
Liabilities Assumed
|
||||
Deposits
|
$
|
|
||
Accounts payable and accrued expenses
|
|
|||
Total liabilities assumed
|
$ |
|
||
Net assets acquired
|
$
|
|
||
Consideration transferred
|
|
|||
Goodwill
|
$ |
|
Note 3: |
Restriction on Cash and Due from Banks
|
Note 4: |
Earnings per Share
|
As of and for the three months
ended June 30,
|
As of and for the six months
ended June 30,
|
|||||||||||||||
2022
|
2021
|
2022 |
2021 |
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Numerator
|
||||||||||||||||
Net income
|
$ | $ | $ | $ | ||||||||||||
Denominator
|
||||||||||||||||
Weighted-average shares outstanding for basic earnings per share
|
||||||||||||||||
Dilutive effect of stock compensation (1)
|
||||||||||||||||
Denominator for diluted earnings per share
|
||||||||||||||||
Earnings per common share
|
||||||||||||||||
Basic
|
$ | $ | $ | $ | ||||||||||||
Diluted
|
$ | $ | $ | $ |
(in thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Fair Value
|
||||||||||||
Available-for-sale as of June 30, 2022
|
||||||||||||||||
U.S. Federal agencies
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Mortgage-backed securities(1)(2)
|
|
|
(
|
)
|
|
|||||||||||
State and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||
U.S. Treasuries
|
|
|
(
|
)
|
|
|||||||||||
Corporate debt securities
|
|
|
(
|
)
|
|
|||||||||||
Total available-for-sale
|
|
|
(
|
)
|
|
|||||||||||
Total debt securities
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Fair Value
|
||||||||||||
Available-for-sale as of December 31, 2021
|
||||||||||||||||
U.S. Federal agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Mortgage-backed securities(1)
|
|
|
|
|
||||||||||||
State and political subdivisions
|
|
|
|
|
||||||||||||
U.S. Treasuries
|
|
|
(
|
)
|
|
|||||||||||
Corporate debt securities
|
|
|
|
|
||||||||||||
Total available-for-sale
|
|
|
(
|
)
|
|
|||||||||||
Total debt securities
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
|
(in thousands)
|
Amortized Cost
|
Fair Value
|
||||||
Available-for-sale as of June 30, 2022
|
||||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one year through five years
|
|
|
||||||
Due after five years through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
Mortgage-backed securities(1)
|
|
|
||||||
Total available-for-sale
|
$ |
|
$ |
|
(in thousands)
|
Amortized Cost
|
Fair Value
|
||||||
Available-for-sale as of December 31, 2021
|
||||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one year through five years
|
|
|
||||||
Due after five years through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
Mortgage-backed securities(1)
|
|
|
||||||
Total available-for-sale
|
$ |
|
$ |
|
Six Months
Ended
June 30,
|
Three Months
Ended
June 30,
|
|||||||
(in thousands)
|
||||||||
Proceeds from sales, maturities, prepayments and calls
|
$ |
$
|
|
|||||
Gross realized gains on sales, maturities, prepayments and calls
|
|
|
||||||
Gross realized losses on sales, maturities, prepayments and calls
|
( |
) |
|
|||||
Total realized (losses), net
|
$ |
( |
) |
$
|
|
June 30,
2022
|
December 31,
2021
|
|||||||
Book value of pledged securities
|
$
|
|
$
|
|
Less than Twelve Months
|
Twelve Months or Longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Available-for-sale as of June 30, 2022
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
||||||||||
Mortgage-backed securities
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
State and political subdivisions(1)
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
U.S. Treasuries
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Corporate debt securities
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Total available-for-sale
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
Less than Twelve Months
|
Twelve Months or Longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Available-for-sale as of December 31, 2021
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
State and political subdivisions(1)
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasuries
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Corporate debt securities
|
|
|
|
|
|
|
||||||||||||||||||
Total available-for-sale
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
Note 6: |
Loans and Allowance for Loan Losses
|
June 30,
2022
|
December 31,
2021
|
|||||||
Construction & development
|
$
|
|
$
|
|
||||
1 - 4 family real estate
|
|
|
||||||
Commercial real estate - other
|
|
|
||||||
Total commercial real estate
|
|
|
||||||
Commercial & industrial
|
|
|
||||||
Agricultural
|
|
|
||||||
Consumer
|
|
|
||||||
Gross loans
|
|
|
||||||
Less allowance for loan losses
|
(
|
)
|
(
|
)
|
||||
Less deferred loan fees
|
(
|
)
|
(
|
)
|
||||
Net loans
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
June 30, 2022
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Charge-offs
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Provision (credit) for loan losses
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
||||||||||||||||||
Balance, end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
June 30, 2021
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Charge-offs
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
|
|
|
|
|
(
|
)
|
|
||||||||||||||||||||
Provision (credit) for loan losses
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance, end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
|||||||||||||||||||||
June 30, 2022
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Charge-offs
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Provision (credit) for loan losses
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
||||||||||||||||||
Balance, end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
|||||||||||||||||||||
June 30, 2021
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Charge-offs
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
|
|
|
|
|
(
|
)
|
|
||||||||||||||||||||
Provision (credit) for loan losses
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance, end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
June 30, 2022
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
December 31, 2021
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
• |
Grade 1 (Pass) – These loans generally conform to Bank policies, and are characterized by policy conforming advance rates on collateral, and have well-defined repayment sources. In addition, these
credits are extended to borrowers and/or guarantors with a strong balance sheet and either substantial liquidity or a reliable income history.
|
• |
Grade
2 (Watch) – These
loans are still considered “Pass” credits; however, various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in loan documentation, or other risk issues determined by the Lending
Officer, Commercial Loan Committee (CLC), or Credit Quality Committee (CQC) warrant a heightened sense and frequency of monitoring.
|
• |
Grade
3 (Special Mention)
– These loans must have observable weaknesses or evidence of imprudent handling or structural issues. The weaknesses require close attention and the remediation of those weaknesses is necessary. No risk of probable loss exists.
Credits in this category are expected to quickly migrate to a “2” or a “4” as this is viewed as a transitory loan grade.
|
• |
Grade
4 (Substandard) –
These loans are not adequately protected by the sound worth and debt service capacity of the borrower, but may be well secured. They have defined weaknesses relative to cash flow, collateral, financial condition, or other factors that
might jeopardize repayment of all of the principal and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not remediated.
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
June 30, 2022
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
2 (Watch)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
3 (Special Mention)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
4 (Substandard)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
|||||||||||||||||||||
December 31, 2021
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
2 (Watch)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
3 (Special Mention)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
4 (Substandard)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Past Due
|
Total Loans |
|||||||||||||||||||||||||||
30–59
Days
|
60–89
Days
|
Greater than
90 Days
|
Total
|
Current
|
Total
Loans
|
> 90 Days &
Accruing
|
||||||||||||||||||||||
June 30,
2022
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
1 - 4 family real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial real estate - other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
December 31, 2021
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
1 - 4 family real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial real estate - other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Unpaid
Principal
Balance
|
Recorded
Investment
with No
Allowance
|
Recorded
Investment
with an
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||||||||||||||
Three Months Ended June 30,
2022
|
Six Months Ended June 30,
2022
|
|||||||||||||||||||||||||||||||||||
June 30,
2022
|
||||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ | ||||||||||||||||||||
1 - 4 Family Real Estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Commercial Real Estate - other
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $
|
|
December 31, 2021
|
Three Months Ended June 30,
2021
|
Six Months Ended June 30,
2021
|
||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ | ||||||||||||||||||||
1 - 4 Family Real Estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Commercial Real Estate - other
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
June 30,
2022
|
||||||||||||||||||||||||||||
Nonaccrual loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Troubled-debt restructurings (1)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Accruing loans 90 or more days past due
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total nonperforming loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2021
|
||||||||||||||||||||||||||||
Nonaccrual loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Troubled-debt restructurings (1)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Accruing loans 90 or more days past due
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total nonperforming loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
|
Note 7: |
Shareholders’ Equity
|
Six Months Ended
June 30,
|
Three Months Ended
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Number of shares repurchased | ||||||||||||||||
Average price of shares repurchased
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Shares remaining to be repurchased |
Actual
|
Minimum
Capital Requirements
|
With Capital
Conservation Buffer
|
Minimum
To Be Well Capitalized
Under Prompt
Corrective Action
|
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||||||||
As of June 30, 2022
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
$
|
|
|
%
|
|||||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|
|
%
|
|||||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
$
|
|
|
%
|
|||||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|
|
%
|
Note 8:
|
Related-Party Transactions
|
Note 9:
|
Employee Benefits
|
Options
|
Wgtd. Avg. Exercise
Price
|
Wgtd. Avg.
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Six Months Ended June 30, 2022
|
||||||||||||||||
Outstanding at December 31, 2021
|
|
$
|
|
|||||||||||||
Options Granted
|
|
|
||||||||||||||
Options Exercised
|
|
|
||||||||||||||
Options Forfeited
|
|
|
||||||||||||||
Outstanding at June 30, 2022
|
|
|
|
$
|
|
|||||||||||
Exercisable at June 30, 2022
|
|
|
|
$
|
|
For the Six Months Ended
June 30, 2021
|
||||
Risk-free interest rate
|
|
%
|
||
Dividend yield
|
|
%
|
||
Stock price volatility
|
|
%
|
||
Expected term
|
|
|
Number of
Shares
|
Wgtd. Avg. Grant
Date Fair Value
|
||||||
Six Months Ended June 30, 2022
|
||||||||
Outstanding at December 31, 2021
|
|
$
|
|
|||||
Shares granted
|
|
|
||||||
Shares vested
|
(
|
)
|
|
|||||
Shares forfeited
|
|
|
||||||
End of the period balance
|
|
$
|
|
Number of
Shares
|
Wgtd. Avg. Grant
Date Fair Value
|
|||||||
Six Months Ended June 30, 2021
|
||||||||
Outstanding at December 31, 2020
|
|
$
|
|
|||||
Shares granted
|
|
|
||||||
Shares vested
|
(
|
)
|
|
|||||
Shares forfeited
|
|
|
||||||
End of the period balance
|
|
$
|
|
Note 10: |
Disclosures About Fair Value of Assets and Liabilities
|
Level 1 |
Quoted prices
in active markets for identical assets or liabilities
|
Level 2 |
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 for
substantially the full term of the assets or liabilities
|
Level 3 |
Unobservable
inputs supported by little or no market activity and significant to the fair value of the assets or liabilities
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
June 30, 2022
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
December 31, 2021
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Weighted-
Average
|
|||||||
June 30, 2022
|
||||||||||
Collateral-dependent impaired loans
|
$
|
|
Appraisals from comparable properties
|
Estimated cost to sell
|
%
|
|||||
December 31, 2021
|
||||||||||
Collateral-dependent impaired loans
|
$
|
|
Appraisals from comparable properties
|
Estimated cost to sell
|
% |
Carrying |
Fair Value Measurements
|
|||||||||||||||||||
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
June 30, 2022
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Federal funds sold
|
||||||||||||||||||||
Interest-bearing time deposits in other banks
|
|
|
|
|
|
|||||||||||||||
Loans, net of allowance
|
|
|
|
|
|
|||||||||||||||
Loans held for sale
|
||||||||||||||||||||
Nonmarketable equity securities
|
|
|
|
|
|
|||||||||||||||
Interest receivable
|
|
|
|
|
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Interest payable
|
|
|
|
|
|
|||||||||||||||
December 31, 2021
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Federal funds sold
|
||||||||||||||||||||
Interest-bearing time deposits in other banks
|
|
|
|
|
|
|||||||||||||||
Loans, net of allowance
|
|
|
|
|
|
|||||||||||||||
Loans held for sale
|
|
|
|
|
|
|||||||||||||||
Nonmarketable equity securities
|
|
|
|
|
|
|||||||||||||||
Interest receivable
|
|
|
|
|
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Interest payable
|
|
|
|
|
|
Note 11: |
Financial Instruments with Off-Balance Sheet Risk
|
June 30,
2022
|
December 31,
2021
|
|||||||
(Dollars in thousands) |
||||||||
Commitments to extend credit
|
$
|
|
$
|
|
||||
Financial and performance standby letters of credit
|
|
|
||||||
$
|
|
$
|
|
Note 12: |
Significant Estimates and Concentrations
|
|
Net Interest Margin Including Loan Fee Income
|
|||||||||||||||||||||||
|
For the Three Months Ended June 30,
|
|||||||||||||||||||||||
|
2022
|
2021
|
||||||||||||||||||||||
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Short-term investments(1)
|
$
|
130,961
|
$
|
263
|
0.81
|
%
|
$
|
128,643
|
$
|
64
|
0.20
|
%
|
||||||||||||
Investment securities, taxable-equivalent(2)
|
174,583
|
571
|
1.31
|
1,187
|
16
|
5.41
|
||||||||||||||||||
Investment securities, tax exempt
|
22,244
|
85
|
1.53
|
-
|
-
|
-
|
||||||||||||||||||
Loans held for sale
|
279
|
-
|
-
|
557
|
-
|
-
|
||||||||||||||||||
Total loans(3)
|
1,090,053
|
15,754
|
5.80
|
889,278
|
14,357
|
6.48
|
||||||||||||||||||
Total interest-earning assets
|
1,418,120
|
16,673
|
4.72
|
1,019,665
|
14,437
|
5.68
|
||||||||||||||||||
Noninterest-earning assets
|
25,341
|
5,086
|
||||||||||||||||||||||
Total assets
|
$
|
1,443,461
|
$
|
1,024,751
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
693,619
|
555
|
0.32
|
%
|
$
|
399,293
|
329
|
0.33
|
%
|
||||||||||||||
Time deposits
|
183,494
|
323
|
0.71
|
212,212
|
443
|
0.84
|
||||||||||||||||||
Total interest-bearing deposits
|
877,113
|
878
|
0.40
|
611,505
|
772
|
0.51
|
||||||||||||||||||
Total interest-bearing liabilities
|
877,113
|
878
|
0.40
|
611,505
|
772
|
0.51
|
||||||||||||||||||
|
||||||||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
429,388
|
293,867
|
|||||||||||||||||||||
Other noninterest-bearing liabilities
|
6,925
|
6,047
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
436,313
|
299,914
|
||||||||||||||||||||||
Shareholders' equity
|
130,035
|
113,332
|
||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,443,461
|
$
|
1,024,751
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Net interest income including loan fee income
|
$
|
15,795
|
$
|
13,665
|
||||||||||||||||||||
Net interest spread including loan fee
income(4) |
4.32
|
%
|
5.17
|
%
|
||||||||||||||||||||
Net interest margin including loan fee income
|
4.47
|
%
|
5.38
|
%
|
(1) |
Taxable-equivalent yield of 2.03% as of June 30, 2022, applying a 24.5% effective tax rate
|
(2) |
Non-accrual loans of $9.5 million and $12.2 million as of June 30, 2022 and June 30, 2021, respectively, are included in loans.
|
- |
Interest income on debt securities totaled $656,000 an increase of $643,000 or 4,946%, as a result of debt securities acquired in December 2021 and purchased during the first quarter of 2022;
|
- |
Interest income on total loans totaled $15.8 million, an increase of $1.4 million or 9.7%, due to an increase in average loans of $200.8 million, or 22.6%, partially offset by of a 68 basis points or 10.5%
decrease in loan yields;
|
- |
Loan fees totaled $1.5 million, a decrease of $1.0 million or 40.8%, related to nonrecurring PPP loan fee income decreasing and
|
- |
Net interest margin for the second quarter of 2022 was 4.47% compared to 5.38% for the second quarter of 2021.
|
|
Net Interest Margin Including Loan Fee Income
|
|||||||||||||||||||||||
|
For the Six Months Ended June 30,
|
|||||||||||||||||||||||
|
2022
|
2021
|
||||||||||||||||||||||
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Short-term investments(1)
|
$
|
159,157
|
$
|
348
|
0.44
|
%
|
$
|
127,203
|
$
|
157
|
0.25
|
%
|
||||||||||||
Investment securities, taxable-equivalent(2)
|
132,086
|
935
|
1.43
|
1,180
|
17
|
2.91
|
||||||||||||||||||
Investment securities, tax exempt
|
22,487
|
183
|
1.64
|
-
|
-
|
-
|
||||||||||||||||||
Loans held for sale
|
383
|
-
|
-
|
445
|
-
|
-
|
||||||||||||||||||
Total loans(3)
|
1,047,220
|
30,131
|
5.80
|
868,526
|
27,450
|
6.37
|
||||||||||||||||||
Total interest-earning assets
|
1,361,333
|
31,597
|
4.68
|
997,354
|
27,624
|
5.59
|
||||||||||||||||||
Noninterest-earning assets
|
24,506
|
6,090
|
||||||||||||||||||||||
Total assets
|
$
|
1,385,839
|
$
|
1,003,444
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
667,159
|
1,012
|
0.31
|
%
|
$
|
412,070
|
691
|
0.34
|
%
|
||||||||||||||
Time deposits
|
176,587
|
583
|
0.67
|
208,903
|
956
|
0.92
|
||||||||||||||||||
Total interest-bearing deposits
|
843,746
|
1,595
|
0.38
|
620,973
|
1,647
|
0.53
|
||||||||||||||||||
Total interest-bearing liabilities
|
843,746
|
1,595
|
0.38
|
620,973
|
1,647
|
0.53
|
||||||||||||||||||
|
||||||||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
405,674
|
266,237
|
|||||||||||||||||||||
Other noninterest-bearing liabilities
|
6,615
|
5,126
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
412,289
|
271,363
|
||||||||||||||||||||||
Shareholders' equity
|
129,804
|
111,108
|
||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,385,839
|
$
|
1,003,444
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Net interest income including loan fee income
|
$
|
30,002
|
$
|
25,977
|
||||||||||||||||||||
Net interest spread including loan fee
income(4) |
4.30
|
%
|
5.05
|
%
|
||||||||||||||||||||
Net interest margin including loan fee income
|
4.44
|
%
|
5.25
|
%
|
(1) |
Taxable-equivalent yield of 2.17% as of June 30, 2022, applying a 24.5% effective tax rate
|
(2) |
Non-accrual loans of $9.5 million and $12.2 million as of June 30, 2022 and June 30, 2021, respectively, are included in loans.
|
- |
Interest income on debt securities totaled $1.1 million and increase of $1.1 million or 6,582%, a result of debt securities acquired in December 2021 and purchased during the first six months of 2022;
|
- |
Interest income on total loans totaled $30.1 million, an increase of $2.7 million or 9.8%, due to an increase in average loans of $179 million, or 20.6%, and in spite of a 57 basis points or 8.9% decrease in
loan yields;
|
- |
Loan fees totaled $3.1 million, a decrease of $1.4 million or 30.7%, related to nonrecurring PPP loan fee income decreasing and
|
- |
Net interest margin for the first six months of 2022 was 4.44% compared to 5.25% for the same period in 2021.
|
|
Analysis of Changes in Interest Income
and Expenses
|
|||||||||||
|
For the Three Months Ended
June 30, 2022 vs 2021
|
|||||||||||
|
Change due to:
|
Interest
Variance
|
||||||||||
|
Volume(1)
|
Rate(1)
|
||||||||||
(in thousands)
|
(Dollars in thousands)
|
|||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Short-term investments
|
$
|
5
|
$
|
194
|
$
|
199
|
||||||
Debt securities
|
10,584
|
(9,944
|
)
|
640
|
||||||||
Total loans
|
13,010
|
(11,613
|
)
|
1,397
|
||||||||
Total increase (decrease) in interest income
|
23,599
|
(21,363
|
)
|
2,236
|
||||||||
|
||||||||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Transaction accounts
|
971
|
(745
|
)
|
226
|
||||||||
Time deposits
|
(241
|
)
|
121
|
(120
|
)
|
|||||||
Total interest-bearing deposits
|
730
|
(624
|
)
|
106
|
||||||||
Total increase (decrease) in interest expense
|
730
|
(624
|
)
|
106
|
||||||||
|
||||||||||||
Increase (Decrease) in net interest income
|
$
|
22,869
|
$
|
(20,739
|
)
|
$
|
2,130
|
|
Analysis of Changes in Interest Income and Expenses
|
|||||||||||
|
For the Six Months Ended
June 30, 2022 vs 2021
|
|||||||||||
|
Change due to:
|
Interest
Variance
|
||||||||||
|
Volume(1)
|
Rate(1)
|
||||||||||
|
(Dollars in thousands)
|
|||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Short-term investments
|
$
|
40
|
$
|
151
|
$
|
191
|
||||||
Debt securities
|
2,214
|
(1,113
|
)
|
1,101
|
||||||||
Total loans
|
5,645
|
(2,964
|
)
|
2,681
|
||||||||
Total increase (decrease) in interest income
|
7,899
|
(3,926
|
)
|
3,973
|
||||||||
|
||||||||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Transaction accounts
|
430
|
(109
|
)
|
321
|
||||||||
Time deposits
|
(147
|
)
|
(226
|
)
|
(373
|
)
|
||||||
Total interest-bearing deposits
|
283
|
(335
|
)
|
(52
|
)
|
|||||||
Total increase (decrease) in interest expense
|
283
|
(335
|
)
|
(52
|
)
|
|||||||
|
||||||||||||
Increase (Decrease) in net interest income
|
$
|
7,615
|
$
|
(3,590
|
)
|
$
|
4,025
|
(1)
|
Variances attributable to both volume and rate are allocated on a consistent basis between rate and volume based on the absolute value of the variances in each category.
|
|
As of June 30, 2022
|
|||||||||||||||||||||||||||||||||||||||
|
Within One Year
|
After One Year But
Within Five Years
|
After Five Years But
Within Ten Years
|
After Ten Years
|
Total
|
|||||||||||||||||||||||||||||||||||
|
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
||||||||||||||||||||||||||||||
Available-for-sale
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
41
|
4.13
|
%
|
$
|
199
|
4.17
|
%
|
$
|
-
|
0
|
%
|
$
|
-
|
0
|
%
|
$
|
240
|
4.16
|
%
|
||||||||||||||||||||
Mortgage-backed securities
|
1,751
|
1.05
|
9,947
|
2.04
|
5,881
|
1.79
|
27,795
|
2.53
|
45,374
|
2.27
|
||||||||||||||||||||||||||||||
State and political subdivisions
|
3,419
|
1.85
|
14,666
|
1.98
|
12,558
|
2.40
|
704
|
2.36
|
31,347
|
2.14
|
||||||||||||||||||||||||||||||
U.S. Treasuries
|
-
|
-
|
98,340
|
1.73
|
4,437
|
1.76
|
-
|
-
|
102,777
|
1.73
|
||||||||||||||||||||||||||||||
Corporate debt securities
|
-
|
-
|
-
|
-
|
5,310
|
5.38
|
-
|
-
|
5,310
|
5.38
|
||||||||||||||||||||||||||||||
Total
|
$
|
5,211
|
1.59
|
%
|
$
|
123,152
|
1.79
|
%
|
$
|
28,186
|
2.74
|
%
|
$
|
28,499
|
2.53
|
%
|
$
|
185,048
|
2.04
|
%
|
||||||||||||||||||||
Percentage of total
|
2.82
|
%
|
66.54
|
%
|
15.23
|
%
|
15.40
|
%
|
100.00
|
%
|
* |
Yield is on a taxable-equivalent basis using 21% tax rate
|
For the Three Months Ended
|
||||||||||||||||||||
June 30,
|
||||||||||||||||||||
2022
|
2021
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Noninterest income:
|
||||||||||||||||||||
Secondary market income
|
$
|
95
|
$
|
78
|
$
|
17
|
21.79
|
%
|
||||||||||||
Gain (Loss) on sales of available-for-sale debt securities
|
|
10
|
-
|
10
|
100.00
|
%
|
||||||||||||||
Service charges on deposit accounts
|
219
|
119
|
100
|
84.03
|
%
|
|||||||||||||||
Other income and fees
|
368
|
382
|
(14
|
)
|
-3.66
|
%
|
||||||||||||||
Total noninterest income
|
$
|
692
|
$
|
579
|
$
|
113
|
19.52
|
%
|
For the Six Months Ended
|
||||||||||||||||
June 30,
|
||||||||||||||||
2022
|
2021
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest income:
|
||||||||||||||||
Secondary market income
|
$
|
261
|
$
|
92
|
$
|
169
|
183.70
|
%
|
||||||||
Gain (Loss) on sales of available-for-sale debt securities
|
(117
|
)
|
-
|
(117
|
)
|
-100.00
|
||||||||||
Service charges on deposit accounts
|
468
|
239
|
229
|
95.82
|
%
|
|||||||||||
Other income and fees
|
755
|
585
|
170
|
29.06
|
%
|
|||||||||||
Total noninterest income
|
$
|
1,367
|
$
|
916
|
$
|
451
|
49.24
|
%
|
|
For the Three Months Ended
|
|||||||||||||||
|
June 30,
|
|||||||||||||||
|
2022
|
2021
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
$
|
4,126
|
$
|
2,949
|
$
|
1,177
|
39.91
|
%
|
||||||||
Furniture and equipment
|
386
|
231
|
155
|
67.10
|
%
|
|||||||||||
Occupancy
|
571
|
458
|
113
|
24.67
|
%
|
|||||||||||
Data and item processing
|
559
|
286
|
273
|
95.45
|
%
|
|||||||||||
Accounting, marketing, and legal fees
|
209
|
149
|
60
|
40.27
|
%
|
|||||||||||
Regulatory assessments
|
226
|
161
|
65
|
40.37
|
%
|
|||||||||||
Advertising and public relations
|
121
|
71
|
50
|
70.42
|
%
|
|||||||||||
Travel, lodging and entertainment
|
74
|
118
|
(44
|
)
|
-37.29
|
%
|
||||||||||
Other expense
|
691
|
452
|
239
|
52.88
|
%
|
|||||||||||
Total noninterest expense
|
$
|
6,963
|
$
|
4,875
|
$
|
2,088
|
42.83
|
%
|
|
For the Six Months Ended
|
|||||||||||||||
|
June 30,
|
|||||||||||||||
|
2022
|
2021
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
$
|
8,152
|
$
|
5,739
|
$
|
2,413
|
42.05
|
%
|
||||||||
Furniture and equipment
|
744
|
433
|
311
|
71.82
|
%
|
|||||||||||
Occupancy
|
1,122
|
930
|
192
|
20.65
|
%
|
|||||||||||
Data and item processing
|
946
|
565
|
381
|
67.43
|
%
|
|||||||||||
Accounting, marketing, and legal fees
|
442
|
297
|
145
|
48.82
|
%
|
|||||||||||
Regulatory assessments
|
422
|
302
|
120
|
39.74
|
%
|
|||||||||||
Advertising and public relations
|
231
|
105
|
126
|
120.00
|
%
|
|||||||||||
Travel, lodging and entertainment
|
122
|
207
|
(85
|
)
|
-41.06
|
%
|
||||||||||
Other expense
|
1,202
|
841
|
361
|
42.93
|
%
|
|||||||||||
Total noninterest expense
|
$
|
13,383
|
$
|
9,419
|
$
|
3,964
|
42.09
|
%
|
|
As of June 30,
|
As of December 31,
|
||||||||||||||
|
2022
|
2021
|
||||||||||||||
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Construction & development
|
$
|
191,291
|
16.6
|
%
|
$
|
169,322
|
16.4
|
%
|
||||||||
1-4 family real estate
|
69,267
|
6.0
|
%
|
62,971
|
6.1
|
%
|
||||||||||
Commercial real estate - other
|
343,489
|
29.7
|
%
|
339,655
|
33.0
|
%
|
||||||||||
Total commercial real estate
|
604,047
|
52.3
|
%
|
571,948
|
55.5
|
%
|
||||||||||
|
||||||||||||||||
Commercial & industrial
|
475,197
|
41.1
|
%
|
361,974
|
35.1
|
%
|
||||||||||
Agricultural
|
59,644
|
5.2
|
%
|
73,010
|
7.1
|
%
|
||||||||||
Consumer
|
16,557
|
1.4
|
%
|
24,046
|
2.3
|
%
|
||||||||||
Gross loans
|
1,155,445
|
100.0
|
%
|
1,030,978
|
100.0
|
%
|
||||||||||
Less: unearned income, net
|
(3,129
|
)
|
(2,577
|
)
|
||||||||||||
Total Loans, net of unearned income
|
1,152,316
|
1,028,401
|
||||||||||||||
Less: Allowance for loan losses
|
(10,819
|
)
|
(10,316
|
)
|
||||||||||||
Net loans
|
$
|
1,141,497
|
$
|
1,018,085
|
|
As of June 30, 2022
|
|||||||||||||||||||||||||||||||||||
|
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
Through Fifteen Years
|
Due after Fifteen Years
|
||||||||||||||||||||||||||||||||
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
|||||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
7,313
|
$
|
59,911
|
$
|
18,469
|
$
|
97,519
|
$
|
-
|
$
|
3,090
|
$
|
-
|
$
|
4,989
|
$
|
191,291
|
||||||||||||||||||
1-4 family real estate
|
11,985
|
10,407
|
14,572
|
19,543
|
327
|
5,981
|
-
|
6,452
|
69,267
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
5,425
|
51,366
|
86,964
|
169,734
|
339
|
16,913
|
-
|
12,748
|
343,489
|
|||||||||||||||||||||||||||
Total commercial real estate
|
24,723
|
121,684
|
120,005
|
286,796
|
666
|
25,984
|
-
|
24,189
|
604,047
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Commercial & industrial
|
47,144
|
162,403
|
51,069
|
197,825
|
5,312
|
10,801
|
-
|
643
|
475,197
|
|||||||||||||||||||||||||||
Agricultural
|
604
|
13,516
|
5,333
|
34,835
|
496
|
1,312
|
45
|
3,503
|
59,644
|
|||||||||||||||||||||||||||
Consumer
|
1,649
|
36
|
7,373
|
115
|
842
|
2,594
|
83
|
3,865
|
16,557
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
74,120
|
$
|
297,639
|
$
|
183,780
|
$
|
519,571
|
$
|
7,316
|
$
|
40,691
|
$
|
128
|
$
|
32,200
|
$
|
1,155,445
|
|
As of December 31, 2021
|
|||||||||||||||||||||||||||||||||||
|
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
Through Fifteen Years
|
Due after Fifteen Years
|
||||||||||||||||||||||||||||||||
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
|||||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
7,283
|
$
|
71,551
|
$
|
10,148
|
$
|
74,052
|
$
|
-
|
$
|
2,243
|
$
|
-
|
$
|
4,045
|
$
|
169,322
|
||||||||||||||||||
1-4 family real estate
|
3,259
|
21,322
|
11,979
|
11,674
|
926
|
7,375
|
-
|
6,436
|
62,971
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
5,156
|
97,309
|
59,227
|
143,906
|
413
|
19,230
|
-
|
14,414
|
339,655
|
|||||||||||||||||||||||||||
Total commerical real estate
|
15,698
|
190,182
|
81,354
|
229,632
|
1,339
|
28,848
|
-
|
24,895
|
571,948
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Commercial & industrial
|
24,249
|
142,553
|
16,346
|
145,654
|
20,474
|
12,047
|
-
|
651
|
361,974
|
|||||||||||||||||||||||||||
Agricultural
|
2,529
|
17,441
|
5,156
|
39,305
|
623
|
1,587
|
-
|
6,369
|
73,010
|
|||||||||||||||||||||||||||
Consumer
|
4,870
|
29
|
10,825
|
172
|
1,554
|
2,458
|
84
|
4,054
|
24,046
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
47,346
|
$
|
350,205
|
$
|
113,681
|
$
|
414,763
|
$
|
23,990
|
$
|
44,940
|
$
|
84
|
$
|
35,969
|
$
|
1,030,978
|
|
For the Six Months Ended June 30,
|
|||||||
|
2022
|
2021
|
||||||
|
(Dollars in thousands)
|
|||||||
Balance at beginning of the period
|
$
|
10,316
|
$
|
9,639
|
||||
Provision for loan losses
|
495
|
2,575
|
||||||
Charge-offs:
|
||||||||
Construction & development
|
-
|
-
|
||||||
1-4 family real estate
|
-
|
-
|
||||||
Commercial real estate - other
|
-
|
-
|
||||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Consumer
|
(6
|
)
|
(61
|
)
|
||||
Total charge-offs
|
(6
|
)
|
(61
|
)
|
||||
Recoveries:
|
||||||||
Construction & development
|
-
|
-
|
||||||
1-4 family real estate
|
-
|
-
|
||||||
Commercial real estate - other
|
-
|
-
|
||||||
Commercial & industrial
|
-
|
14
|
||||||
Agricultural
|
-
|
138
|
||||||
Consumer
|
14
|
1
|
||||||
Total recoveries
|
14
|
153
|
||||||
Net recoveries (charge-offs)
|
8
|
92
|
||||||
Balance at end of the period
|
$
|
10,819
|
$
|
12,306
|
||||
Net recoveries (charge-offs) to average loans
|
0.00
|
%
|
-0.01
|
%
|
|
As of June 30,
|
As of December 31,
|
||||||||||||||
|
2022
|
2021
|
||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Construction & development
|
$
|
1,792
|
16.6
|
%
|
$
|
1,695
|
16.4
|
%
|
||||||||
1-4 family real estate
|
649
|
6.0
|
%
|
630
|
6.1
|
%
|
||||||||||
Commercial real estate - Other
|
3,216
|
29.7
|
%
|
3,399
|
33.0
|
%
|
||||||||||
Commercial & industrial
|
4,449
|
41.1
|
%
|
3,621
|
35.1
|
%
|
||||||||||
Agricultural
|
558
|
5.2
|
%
|
730
|
7.1
|
%
|
||||||||||
Consumer
|
155
|
1.4
|
%
|
241
|
2.3
|
%
|
||||||||||
Total
|
$
|
10,819
|
100.0
|
%
|
$
|
10,316
|
100.0
|
%
|
As of
June 30,
|
As of
December 31,
|
|||||||
2022
|
2021
|
|||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans
|
$
|
9,473
|
$
|
9,885
|
||||
Troubled-debt restructurings (1)
|
-
|
-
|
||||||
Accruing loans 90 or more days past due
|
69
|
496
|
||||||
Total nonperforming loans
|
9,542
|
10,381
|
||||||
Other real estate owned
|
-
|
-
|
||||||
Total nonperforming assets
|
$
|
9,542
|
$
|
10,381
|
||||
Ratio of nonperforming loans to total loans
|
0.83
|
%
|
1.01
|
%
|
||||
Ratio of nonaccrual loans to total loans
|
0.82
|
%
|
0.96
|
%
|
||||
Ratio of allowance for loan losses to total loans
|
0.94
|
%
|
1.00
|
%
|
||||
Ratio of allowance for loan losses to nonaccrual loans
|
114.21
|
%
|
104.36
|
%
|
||||
Ratio of nonperforming assets to total assets
|
0.64
|
%
|
0.77
|
%
|
(1)
|
$1.3 million of TDRs as of June 30, 2022 and $1.4 million as of December 31, 2021 are included in the nonaccrual loans balance in the line above
|
As of June 30, 2022
|
||||||||||||||||||||||||||||
Loans 30-59
days past
due
|
Loans 60-89
days past
due
|
Loans 90+
days past
due
|
Loans 90+
days past
due and
accruing
|
Total past due loans
|
Current
|
Total loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
191,291
|
$
|
191,291
|
||||||||||||||
1-4 family real estate
|
26
|
-
|
-
|
-
|
26
|
69,241
|
69,267
|
|||||||||||||||||||||
Commercial real estate - other
|
-
|
24
|
162
|
-
|
186
|
343,303
|
343,489
|
|||||||||||||||||||||
Commercial & industrial
|
9,919
|
31
|
75
|
-
|
10,025
|
465,172
|
475,197
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
55
|
55
|
55
|
59,589
|
59,644
|
|||||||||||||||||||||
Consumer
|
336
|
1
|
14
|
14
|
351
|
16,206
|
16,557
|
|||||||||||||||||||||
Total
|
$
|
10,281
|
$
|
56
|
$
|
306
|
$
|
69
|
$
|
10,643
|
$
|
1,144,802
|
$
|
1,155,445
|
As of December 31, 2021
|
||||||||||||||||||||||||||||
Loans 30-59
days past due
|
Loans 60-89
days past
due
|
Loans 90+
days past
due
|
Loans 90+
days past
due and
accruing
|
Total Past
Due Loans
|
Current
|
Total loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
169,322
|
$
|
169,322
|
||||||||||||||
1-4 family real estate
|
-
|
-
|
-
|
-
|
-
|
62,971
|
62,971
|
|||||||||||||||||||||
Commercial real estate - other
|
-
|
174
|
-
|
-
|
174
|
339,481
|
339,655
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
19
|
501
|
401
|
520
|
361,454
|
361,974
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
77
|
77
|
77
|
72,933
|
73,010
|
|||||||||||||||||||||
Consumer
|
48
|
15
|
18
|
18
|
81
|
23,965
|
24,046
|
|||||||||||||||||||||
Total
|
$
|
48
|
$
|
208
|
$
|
596
|
$
|
496
|
$
|
852
|
$
|
1,030,126
|
$
|
1,030,978
|
As of June 30, 2022
|
||||||||||||||||||||
Pass
|
Watch
|
Special
mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
191,291
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
191,291
|
||||||||||
1-4 family real estate
|
69,267
|
-
|
-
|
-
|
69,267
|
|||||||||||||||
Commercial real estate - Other
|
296,788
|
15,000
|
16,845
|
14,856
|
343,489
|
|||||||||||||||
Commercial & industrial
|
464,572
|
1,752
|
1,879
|
6,994
|
475,197
|
|||||||||||||||
Agricultural
|
59,275
|
225
|
144
|
-
|
59,644
|
|||||||||||||||
Consumer
|
16,533
|
-
|
-
|
24
|
16,557
|
|||||||||||||||
Total
|
$
|
1,097,726
|
$
|
16,977
|
$
|
18,868
|
$
|
21,874
|
$
|
1,155,445
|
As of December 31, 2021
|
||||||||||||||||||||
Pass
|
Watch
|
Special
mention |
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
169,322
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
169,322
|
||||||||||
1-4 family real estate
|
62,971
|
-
|
-
|
-
|
62,971
|
|||||||||||||||
Commercial real estate - Other
|
282,268
|
14,976
|
27,112
|
15,299
|
339,655
|
|||||||||||||||
Commercial & industrial
|
341,661
|
4,658
|
6,300
|
9,355
|
361,974
|
|||||||||||||||
Agricultural
|
72,295
|
255
|
460
|
-
|
73,010
|
|||||||||||||||
Consumer
|
24,000
|
-
|
-
|
46
|
24,046
|
|||||||||||||||
Total
|
$
|
952,517
|
$
|
19,889
|
$
|
33,872
|
$
|
24,700
|
$
|
1,030,978
|
As of June 30, 2022
|
||||||||||||||||
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-
Modification Outstanding Recorded Investment
|
Specific
Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate
|
1
|
$
|
1,300
|
$
|
1,300
|
-
|
||||||||||
Total
|
1
|
$
|
1,300
|
$
|
1,300
|
$
|
-
|
As of December 31, 2021
|
||||||||||||||||
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-
Modification Outstanding Recorded Investment
|
Specific
Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate
|
1
|
$
|
1,402
|
$
|
1,402
|
-
|
||||||||||
Total
|
1
|
$
|
1,402
|
$
|
1,402
|
$
|
-
|
As of June 30, 2022
|
As of December 31, 2021
|
|||||||||||||||
Number of contracts
|
Amount
|
Number of contracts
|
Amount
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Accrual
|
-
|
$
|
-
|
-
|
$
|
-
|
||||||||||
Nonaccrual
|
1
|
1,300
|
1
|
1,402
|
||||||||||||
Total
|
1
|
$
|
1,300
|
1
|
$
|
1,402
|
June 30, 2022
|
December 31, 2021
|
|||||||||||||||
Amount
|
Percentage of Total
|
Amount
|
Percentage of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest-bearing demand
|
$
|
447,077
|
33.2
|
%
|
$
|
366,705
|
30.1
|
%
|
||||||||
Interest-bearing transaction deposits
|
624,163
|
46.4
|
%
|
583,389
|
47.9
|
%
|
||||||||||
Savings deposits
|
89,623
|
6.7
|
%
|
89,778
|
7.4
|
%
|
||||||||||
Time deposits ($250,000 or less)
|
144,713
|
10.7
|
%
|
132,690
|
10.9
|
%
|
||||||||||
Time deposits (more than $250,000)
|
40,715
|
3.0
|
%
|
44,909
|
3.7
|
%
|
||||||||||
Total interest-bearing deposits
|
899,214
|
66.8
|
%
|
850,766
|
69.9
|
%
|
||||||||||
Total deposits
|
$
|
1,346,291
|
100.0
|
%
|
$
|
1,217,471
|
100.0
|
%
|
For the Six Months Ended June 30,
|
For the Year Ended December 31,
|
|||||||||||||||
2022
|
2021
|
|||||||||||||||
Average
Balance |
Weighted
Average Rate
|
Average
Balance |
Weighted
Average Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Non interest-bearing demand
|
$
|
405,674
|
0.00
|
%
|
$
|
288,446
|
0.00
|
%
|
||||||||
Interest-bearing transaction deposits
|
573,021
|
0.32
|
%
|
375,048
|
0.34
|
%
|
||||||||||
Savings deposits
|
94,139
|
0.19
|
%
|
55,220
|
0.23
|
%
|
||||||||||
Time deposits
|
176,587
|
0.67
|
%
|
205,437
|
0.81
|
%
|
||||||||||
Total interest-bearing deposits
|
843,747
|
0.38
|
%
|
635,705
|
0.48
|
%
|
||||||||||
Total deposits
|
$
|
1,249,421
|
0.26
|
%
|
$
|
924,151
|
0.33
|
%
|
As of June 30, 2022 Maturity Within:
|
||||||||||||||||||||
Three Months
|
Three to Six Months
|
Six to 12
Months
|
After 12
Months
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits ($250,000 or less)
|
$
|
68,547
|
$
|
21,315
|
$
|
35,524
|
$
|
19,327
|
$
|
144,713
|
||||||||||
Time deposits (more than $250,000)
|
6,369
|
13,308
|
15,579
|
5,459
|
40,715
|
|||||||||||||||
Total time deposits
|
$
|
74,916
|
$
|
34,623
|
$
|
51,103
|
$
|
24,786
|
$
|
185,428
|
As of December 31, 2021 Maturity Within:
|
||||||||||||||||||||
Three Months
|
Three to Six Months
|
Six to 12
Months
|
After 12
Months
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits ($250,000 or less)
|
$
|
32,680
|
$
|
37,016
|
$
|
31,197
|
$
|
31,797
|
$
|
132,690
|
||||||||||
Time deposits (more than $250,000)
|
18,234
|
5,932
|
10,729
|
10,014
|
44,909
|
|||||||||||||||
Total time deposits
|
$
|
50,914
|
$
|
42,948
|
$
|
41,926
|
$
|
41,811
|
$
|
177,599
|
Actual
|
With Capital
Conservation Buffer |
Minimum to be "Well-
Capitalized" Under
Prompt Corrective Action
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of June 30, 2022
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
$
|
139,886
|
12.14
|
%
|
$
|
121,012
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
139,853
|
12.15
|
%
|
120,906
|
10.50
|
%
|
$
|
115,149
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
129,067
|
11.20
|
%
|
97,962
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
129,034
|
11.21
|
%
|
97,876
|
8.50
|
%
|
92,119
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
129,067
|
11.20
|
%
|
80,675
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
129,034
|
11.21
|
%
|
80,604
|
7.00
|
%
|
74,847
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Company
|
129,067
|
8.97
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
129,034
|
8.97
|
%
|
N/A
|
N/A
|
71,925
|
5.00
|
%
|
Actual
|
With Capital
Conservation Buffer
|
Minimum to be "Well-
Capitalized" Under
Prompt Corrective Action
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
$
|
127,946
|
12.54
|
%
|
$
|
107,126
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
127,844
|
12.54
|
%
|
107,020
|
10.50
|
%
|
$
|
101,924
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
117,631
|
11.53
|
%
|
86,721
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
117,528
|
11.53
|
%
|
86,635
|
8.50
|
%
|
81,539
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
117,631
|
11.53
|
%
|
71,417
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
117,528
|
11.53
|
%
|
71,347
|
7.00
|
%
|
66,250
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Company
|
117,631
|
10.56
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
117,528
|
10.55
|
%
|
N/A
|
N/A
|
55,714
|
5.00
|
%
|
Payments Due as of June 30, 2022
|
||||||||||||||||||||
Within One
Year
|
One to Three Years
|
Three to Five Years
|
After Five
Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Deposits without a stated maturity
|
$
|
1,160,863
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,160,863
|
||||||||||
Time deposits
|
160,642
|
22,852
|
1,934
|
-
|
185,428
|
|||||||||||||||
Operating lease commitments
|
611
|
575
|
142
|
-
|
1,328
|
|||||||||||||||
Total contractual obligations
|
$
|
1,322,116
|
$
|
23,427
|
$
|
2,076
|
$
|
-
|
$
|
1,347,619
|
Payments Due as of December 31, 2021
|
||||||||||||||||||||
Within One
Year
|
One to Three Years
|
Three to Five Years
|
After Five
Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Deposits without a stated maturity
|
$
|
1,039,872
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,039,872
|
||||||||||
Time deposits
|
135,788
|
39,904
|
1,907
|
-
|
177,599
|
|||||||||||||||
Operating lease commitments
|
611
|
782
|
241
|
-
|
1,634
|
|||||||||||||||
Total contractual obligations
|
$
|
1,176,271
|
$
|
40,686
|
$
|
2,148
|
$
|
-
|
$
|
1,219,105
|
As of
June 30,
|
As of
December 31,
|
|||||||
2022
|
2021
|
|||||||
(Dollars in thousands)
|
||||||||
Commitments to extend credit
|
$
|
233,951
|
$
|
200,393
|
||||
Standby letters of credit
|
2,276
|
5,809
|
||||||
Total
|
$
|
236,227
|
$
|
206,202
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
This exhibit is furnished herewith and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be
incorporated by reference into any filing under the Securities Act or the Exchange Act.
|
BANK7 CORP.
|
|||
DATED:
|
August 15, 2022
|
By:
|
/s/ Thomas L. Travis |
Thomas L. Travis
|
|||
President and Chief Executive Officer
|
DATED:
|
August 15, 2022
|
By:
|
/s/ Kelly J. Harris |
Kelly J. Harris
|
|||
Executive Vice President and Chief Financial Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Bank7 Corp.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and
report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Thomas L. Travis
|
|
Date: August 15, 2022
|
Thomas L. Travis
|
President and Chief Executive Officer (Principal
Executive Officer)
|
1. |
I have reviewed this quarterly report on Form 10-Q of Bank7 Corp.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and
report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Kelly J. Harris
|
|
Date: August 15, 2022
|
Kelly J. Harris
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
/s/ Thomas L. Travis
|
|
Date: August 15, 2022
|
Thomas L. Travis
|
President and Chief Executive Officer (Principal
Executive Officer)
|
/s/ Kelly J. Harris
|
|
Kelly J. Harris
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets | ||
Allowance for loan losses | $ 10,819 | $ 10,316 |
Shareholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 9,098,655 | 9,071,417 |
Common stock, shares outstanding (in shares) | 9,098,655 | 9,071,417 |
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Other Comprehensive Income | ||||
Unrealized losses on securities, tax | $ (1,500) | $ (1,500) | ||
Reclassification adjustment for realized loss, tax | 0 | $ 0 | 17 | $ 0 |
Other comprehensive loss, tax | $ (1,500) | $ (1,500) |
Unaudited Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Unaudited Condensed Consolidated Statements of Shareholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.24 | $ 0.22 |
Nature of Operations and Summary of Significant Accounting Policies |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |||
Nature of Operations and Summary of Significant Accounting Policies |
Nature of Operations
Bank7 Corp. (the “Company”), formerly
known as Haines Financial Corp, is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, Bank7 (the “Bank”). The Bank is primarily engaged in providing a full range of banking and
financial services to individual and corporate customers located in Oklahoma, Kansas, and Texas. The Bank is subject to competition from other financial institutions. The Company is subject to the regulation of certain federal agencies and
undergoes periodic examinations by those regulatory authorities.
Basis of Presentation
The accompanying unaudited interim consolidated financial statements contained
herein reflect all adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position, results of operations, and cash flows of the Company for the interim periods presented. All such adjustments
are of a normal and recurring nature. There have been no significant changes in the accounting policies of the Company since December 31, 2021, the date of the most recent annual report. The condensed consolidated balance sheet of the Company as
of December 31, 2021 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and notes normally included in the Company’s annual financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted. The information contained in the financial statements and footnotes included in Company’s annual report for the year ended December 31, 2021, should be referred to in connection with
these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the
Company, the Bank and its subsidiary, 1039 NW 63rd, LLC, which holds real estate utilized by the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect 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.
Material estimates that are particularly susceptible to significant change
relate to the determination of the allowance for loan losses, valuation of other real estate owned, other-than-temporary impairments, income taxes, goodwill and intangibles and fair values of financial instruments.
Recent Accounting Pronouncements
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU
requires lessees to recognize a lease liability and a right-of-use asset for all leases, excluding short-term leases, at the commencement date. The guidance in the ASU is effective for annual reporting periods beginning after December 15, 2021.
Additionally, a modified retrospective transition approach is required for a leases existing at the earliest comparative period presented. Management is in the process of planning implementation of this ASU; however, it is not expected to have a
significant impact on the Company’s financial condition, results of operation, or capital position, but will impact the presentation on the balance sheet of the Company’s current operating leases. The Company will adopt this ASU in the fourth
quarter of 2022.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses
(Topic 326). The ASU requires the replacement of the current incurred loss model with an expected loss model, referred to as the current expected credit loss (CECL) model. The guidance in the ASU is effective for reporting periods beginning after
December 15, 2022 with a cumulative-effect adjustment to retained earnings required for the first reporting period. Management is in the process of planning implementation and has established a committee to assist in implementation and
evaluation. The Company will adopt this ASU in the first quarter of 2023.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)
which provides relief for companies preparing for discontinuation of interest rates such as the London Interbank Offered Rate (“LIBOR”). On March 5, 2021, the U.K. Financial Conduct Authority (“FCA”) announced that the majority of LIBOR rates
will no longer be published after December 31, 2021, although a number of key settings will continue until June 2023, to support the rundown of legacy contracts only. As a result, LIBOR should be discontinued as a reference rate. The main
provisions for contract modifications include optional relief by allowing the modification as a continuation of the existing contract without additional analysis and other optional expedients regarding embedded features. ASU 2020-04 was effective
upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact the consolidated financial statements.
|
Recent Events, Including Mergers and Acquisitions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Events, Including Mergers and Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Events, Including Mergers and Acquisitions |
Business Combinations
On December 9, 2021, the Company acquired 100% of the
outstanding equity of Watonga Bancshares, Inc. (“Watonga”), the bank holding company for Cornerstone Bank, for $29.3 million in cash.
Immediately following the acquisition, Watonga was dissolved and Cornerstone Bank merged with and into Bank7.
An updated preliminary summary of the fair value of assets acquired and liabilities assumed from Watonga are as follows:
Goodwill
decreased $89,000 and increased $238,000
for the three months and six months ended June 30, 2022, respectively, related to the resolution of contractual obligations and assessment of the fair value of premises and equipment.
As of the
acquisition date, the Company evaluated $117.3 million of net loans ($118.5 million gross loans less $1.2 million discount)
purchased in conjunction with the acquisition of Watonga Bancshares, Inc. in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs.
As of June 30, 2022, the net loan balance of the ASC Topic 310-20 purchased loans is $82.2 million ($83.1 million gross loans less $891,000
discount). The fair value discount is being accreted into interest income over the weighted average life of the loans using a constant yield method.
The fair values of assets acquired and
liabilities assumed are preliminary and based on valuation estimates and assumptions. The accounting for business combinations require estimates and judgments regarding expectations of future cash flows of the acquired business, and the
allocations of those cash flows to identifiable tangible and intangible assets. The estimates and assumptions underlying the preliminary valuations are subject to collection of information necessary to complete the valuations (specifically
related to projected financial information) within the measurement periods, which are up to one year from the acquisition date. Although the Company does not currently expect material changes to the initial value of net assets acquired, the
Company continues to evaluate assumptions related to the valuation of the assets acquired and liabilities assumed. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are
determined, and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition date.
|
Restriction on Cash and Due from Banks |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Restriction on Cash and Due from Banks [Abstract] | |||
Restriction on Cash and Due from Banks |
On March 26, 2020, the Federal
Reserve Board reduced reserve requirement ratios to zero percent, effectively eliminating reserve requirements for all depository institutions. There was no reserve requirement
as of June 30, 2022.
|
Earnings per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share |
Basic earnings per common share
represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding
during the year.
Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for
all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income divided by the weighted average number of common shares outstanding during each period, adjusted for the effect of
dilutive potential common shares, such as restricted stock awards and nonqualified stock options, calculated using the treasury stock method.
The following table shows the computation of basic and
diluted earnings per share:
(1) The following have not been included in diluted earnings per share because to do so would have been antidilutive for the
periods presented: Nonqualified stock options outstanding of 24 and 265,750 for the three month periods ended June 30, 2022 and 2021, respectively, and 0
and 27,000 for the six month periods ended June 30, 2022 and 2021, respectively; Restricted stock units of 4 and 27,000 for the three
month periods ended June 30, 2022 and 2021, respectively, and 2 and 27,000 for the six month periods ended June 30, 2022 and 2021, respectively.
|
Debt Securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities |
Note 5: Debt Securities
The following table summarizes the amortized cost and fair value of debt securities available-for-sale at June 30, 2022 and the corresponding
amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss):
(1) All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.
(2) Included in mortgage-back securities is $27.79 million of residential mortgaged-back securities and $17.58 million of commerical mortgaged-back securities.
The amortized cost and estimated fair value of investment securities at June 30, 2022, by contractual maturity, are shown below. The expected
life of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties.
(1) All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.
There were two holdings of
securities of issuers in an amount greater than 10% of stockholders equity at June 30, 2022, one mortgage-backed security with a fair value of $14.32
million, and one U.S. Treasury note with a fair value of $97.41 million.
The following table presents a summary of realized gains and losses from the sale, maturity, prepayment and call of debt securities for the six
months ended June 30, 2022 and the three months ended June 30, 2022. Note, the Company did not have available-for-sale debt securities
at June 30, 2021.
The following table details book value of pledged securities as of June 30, 2022:
The following table
details gross unrealized losses and fair values of investment securities aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2022. As of June 30, 2022,
the Company had the ability and intent to hold the debt securities classified as available-for-sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields
available at the time the underlying debt securities were purchased or acquired. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if
market yields for such investments decline. Management has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no
impairment loss was realized in the Company’s consolidated statements of comprehensive income.
(1) All of our state and political subdivisions securities are rate AA- or better.
|
Loans and Allowance for Loan Losses |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Loans and Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses |
A summary of loans at June 30, 2022 and December 31, 2021, are as follows
(dollars in thousands):
Included in the
commercial & industrial loan balances are $9.9 million and $18.7 million of loans that were originated under the SBA PPP program as of June 30, 2022 and December 31, 2021, respectively.
The following table presents, by portfolio segment, the
activity in the allowance for loan losses for the three months ended June 30, 2022 and 2021 (dollars in thousands):
The following table presents, by portfolio segment, the activity in the allowance for loan losses for the six months ended June 30, 2022 and 2021
(dollars in thousands):
The following table presents, by portfolio segment, the balance in allowance for loan losses and the gross loans based upon portfolio segment and impairment method as of June 30, 2022 and December 31, 2021 (dollars in thousands):
Internal Risk
Categories
Each loan segment is made up of loan categories possessing
similar risk characteristics.
Risk characteristics applicable to each segment of the loan
portfolio are described as follows:
Real
Estate – The real estate loan portfolio consists of loans made to finance both residential and commercial properties. Credit risk in these loans can be impacted by economic conditions within the Company’s market areas
that might impact either property values or a borrower’s ability to repay. Commercial real estate loans typically involve larger principal amounts and are repaid primarily from the cash flow of a borrower’s principal business operation, the
sale of the real estate, and in some cases from income that is independent from the real estate asset itself.
Commercial
& Industrial – The commercial portfolio
includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit
risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations.
Agricultural – Loans secured by
agricultural assets are generally made for the purpose of acquiring land devoted to crop production, and various animals that are eventually harvested and sold, and typically housed on the underlying secured property. Credit risk in these
loans may be impacted by crop and commodity prices, the creditworthiness of a borrower, and changes in economic conditions which might affect underlying property values and the local economies in the Company’s market areas.
Consumer – The consumer loan portfolio consists of various term and
line of credit loans such as automobile loans and loans for other personal purposes. Residential loans in this category are generally secured by owner occupied 1–4 family residences. Repayment for these types of loans will come from a
borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors, such as unemployment and general economic conditions in the Company’s market area and the creditworthiness of a
borrower.
Loan grades are
numbered 1 through 4. Grade 1 is considered satisfactory. The grades of 2 and 3, or Watch and Special Mention, respectively, represent loans of lower quality and are considered criticized. Grade of 4, or Substandard, refers to loans that are
classified.
The Company
evaluates the definitions of loan grades and the allowance for loan losses methodology on an ongoing basis. No changes were made to either during the period ended June 30, 2022.
The following table presents the credit risk profile of
the Company’s loan portfolio based on internal rating category as of June 30, 2022 and December 31, 2021 (dollars in thousands):
The following table presents the Company’s loan portfolio
aging analysis of the recorded investment in loans as of June 30, 2022 and December 31, 2021 (dollars in thousands):
The following table presents impaired loans as of June
30, 2022 and December 31, 2021 (dollars in thousands):
Impaired loans include nonperforming
loans and also include loans modified in troubled-debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in interest rate on the loan, payment
extensions, forgiveness of principal, forbearance or other actions intended to maximize collection.
Included in certain loan categories in
the impaired loans are troubled debt restructurings that were classified as impaired. At June 30, 2022, the Company had $1.3 million
of commercial real estate loans, compared to $1.4 million of commercial real estate loans that were classified as troubled-debt
restructurings and impaired as of December 31, 2021. There were no newly modified troubled-debt restructurings during the six months ended June 30, 2022.
There were no troubled-debt restructurings modified in the past six months that subsequently defaulted for the period ended June 30, 2022.
The following table represents information regarding nonperforming assets at
June 30, 2022 and December 31, 2021 (dollars in thousands):
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Shareholders' Equity |
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Shareholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity |
On September 5, 2019, the Company
adopted a Repurchase Plan (the “RP”). The RP initially authorized the repurchase of up to 500,000 shares of the Company’s common
stock. On March 13, 2020, the Company’s Board of Directors approved a 500,000 share expansion, and on November 2, 2020, approved a 750,000 share expansion to the RP, for a total of 1,750,000 shares authorized under the RP. All shares repurchased under the RP have been retired and not held
as treasury stock. The RP expired on September 5, 2021. On October 28, 2021, the Company adopted a new Repurchase Plan (the “New RP”) that authorizes the repurchase of up to 750,000 shares of the Company’s stock. Stock repurchases under the New RP will take place pursuant to a Rule 10b5-1 Plan with pricing and purchasing parameters established by
management.
A summary of the activity under the RP is as follows:
The Company and
Bank are subject to risk-based capital guidelines issued by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if
undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital
guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under GAAP, regulatory reporting requirements and regulatory capital standards. The Company’s and Bank’s capital amounts and
classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s and the Bank’s regulators could require adjustments to regulatory capital not reflected
in these financial statements.
Quantitative
measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier I, and Common Equity capital (as defined in the regulations) to
risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of June 30, 2022, that the Company and Bank meet all capital adequacy requirements to which it is subject and maintains
capital conservation buffers that allow the Company and Bank to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to certain executive officers.
As of June 30,
2022, the most recent notification from the Federal Deposit Insurance Corporation (FDIC) categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must
maintain capital ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category.
The Company’s and Bank’s actual capital amounts and
ratios are presented in the following table (dollars in thousands):
The federal banking
agencies require that banking organizations meet several risk-based capital adequacy requirements. The current risk-based capital standards applicable to the Company and the Bank are based on the Basel III Capital Rules established by the Basel
Committee on Banking Supervision (the “Basel Committee”). The Basel Committee is a committee of central banks and bank supervisors/regulators from the major industrialized countries that develops broad policy guidelines for use by each
country’s supervisors in determining the supervisory policies they apply. The requirements are intended to ensure that banking organizations have adequate capital given the risk levels of assets and off-balance sheet financial instruments.
The Basel III
Capital Rules require the Bank and the Company to comply with four minimum capital standards: a Tier 1 leverage ratio of at least 4.0%; a CET1 to risk-weighted assets of 4.5%; a Tier 1 capital to risk-weighted assets of at least 6.0%; and a
total capital to risk-weighted assets of at least 8.0%. The calculation of all types of regulatory capital is subject to definitions, deductions and adjustments specified in the regulations.
The Basel III
Capital Rules also require a “capital conservation buffer” of 2.5% above the regulatory minimum risk-based capital requirements. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively
increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of CET1 to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer) are subject to limitations on certain
activities, including payment of dividends, share repurchases and discretionary bonuses to executive officers based on the amount of the shortfall.
As of June 30,
2022, the Company’s and the Bank’s capital ratios exceeded the minimum capital adequacy guideline percentage requirements under the Basel III Capital Rules on a fully phased-in basis.
The Bank is subject
to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At June 30, 2022, approximately $47.4
million of retained earnings was available for dividend declaration from the Bank without prior regulatory approval.
|
Related-Party Transactions |
6 Months Ended | ||
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Jun. 30, 2022 | |||
Related-Party Transactions [Abstract] | |||
Related-Party Transactions |
At June 30, 2022 and December 31, 2021, the Company had no loans outstanding to executive officers, directors, significant shareholders and their affiliates (related parties).
The Bank
leases office and retail banking space in Woodward, Oklahoma from Haines Realty Investments Company, LLC, a related party of the Company. Lease expense totaled $39,000 and $46,000 for the three months ended June 30, 2022 and 2021, respectively and $77,000 and $92,000 for the six months
ended June 30, 2022 and 2021, respectively. In addition, payroll and office sharing arrangements were in place between the Company and certain of its affiliates.
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Employee Benefits |
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Employee Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits |
401(k) Savings Plan
The Company has a retirement savings
401(k) plan covering substantially all employees. Employees may contribute up to the maximum legal limit with the Company matching up to 5%
of the employee’s salary. Employer contributions charged to expense for the three months ended June 30, 2022 and 2021 totaled $113,000
and $75,000, respectively. Employer contributions charged to expense for the six months ended June 30, 2022 and 2021 totaled $208,000 and $140,000, respectively.
Stock-Based
Compensation
The Company adopted a nonqualified
incentive stock option plan (the “Incentive Plan”) in September 2018. The Incentive Plan will terminate in September 2028, if not extended. Compensation expense related to the Incentive Plan for the three months ended June 30, 2022 and 2021
totaled $706,000 and $171,000,
respectively. Compensation expense related to the Incentive Plan for the six months ended June 30, 2022 and 2021 totaled $992,000 and $473,000, respectively. There were 706,587
shares available for future grants as of June 30, 2022.
The Company grants to employees and
directors restricted stock units (RSUs) which vest ratably over
, or five years and stock options which vest ratably over
four years. All RSUs and stock options are granted at the fair value of the common stock at the time of the award. The RSUs are
considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period.The Company uses newly issued shares for
granting RSUs and stock options.
The following table is a summary of the stock option
activity under the Incentive Plan (dollar amounts in thousands, except per share data):
The fair value of
each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value
of each option is expensed over its vesting period.
The following table shows the assumptions used for
computing stock-based compensation expense under the fair value method on options granted during the period presented. There were no grants for the six months ended June 30, 2022.
The following table summarizes share information about RSUs
for the six months ended June 30, 2022 and 2021:
As of June 30, 2022,
there was approximately $2.3 million of unrecognized compensation expense related to 157,909 unvested RSUs and $438,000 of unrecognized compensation
expense related to 249,188 unvested and/or unexercised stock options. The stock option expense is expected to be recognized over a
weighted average period of 2.19 years, and the RSU expense is expected to be recognized over a weighted average period of 2.66 years.
As of June 30, 2021, there was approximately $1.9 million of unrecognized compensation expense related to 135,618 unvested RSUs and $756,000 of unrecognized compensation expense related to 265,750 unvested and/or unexercised stock options. The stock option expense is expected to be recognized over a weighted average period of 2.88 years, and the RSU expense is expected to be recognized over a weighted average period of 2.76 years.
|
Disclosures About Fair Value of Assets and Liabilities |
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Disclosures about Fair Value of Assets and Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures about Fair Value of Assets and Liabilities |
Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable
inputs. There is a hierarchy of three
levels of inputs that may be used to measure fair value:
Recurring Measurements
Assets and liabilities measured at fair value on a recurring basis include the following:
Available-for-sale debt securities: Debt securities classified as available-for-sale, as discussed in Note 5, are reported at fair value utilizing Level 2 inputs. For those debt
securities classified as Level 2, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S.
Treasury yield curve, live trading levels, trade execution data for similar securities, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other things.
Nonrecurring
Measurements
The following table presents the fair value measurement of
assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and December 31, 2021 (dollars in thousands):
Following is a
description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to
the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.
Collateral-Dependent
Impaired Loans, Net of Allowance for Loan Losses
The estimated fair
value of collateral-dependent impaired loans is based on fair value, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy.
The Company considers
evaluation analysis as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Values of the collateral underlying collateral-dependent loans are obtained when
the loan is determined to be collateral-dependent and subsequently as deemed necessary by executive management and loan administration. Values are reviewed for accuracy and consistency by executive management and loan administration. The ultimate
collateral values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral.
Unobservable (Level 3) Inputs
The following table presents quantitative information about
unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
The following table presents estimated fair values of the
Company’s financial instruments not recorded at fair value at June 30, 2022 and December 31, 2021 (dollars in thousands):
The following
methods were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value:
Cash and Due from
Banks, Interest-Bearing Time Deposits in Other Banks, Nonmarketable Equity Securities, Interest Receivable and Interest Payable
The carrying amount approximates fair
value.
Loans and Mortgage
Loans Held for Sale
The Company
determines fair value of loans by using exit market assumptions including factors such as liquidity, credit quality and risk of nonperformance. The fair value is estimated by discounting the future cash flows using the market rates at which
similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations.
Deposits
Deposits include demand deposits, savings accounts, NOW
accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of
similar remaining maturities.
Commitments to Extend
Credit, Lines of Credit and Standby Letters of Credit
The fair values of unfunded commitments are estimated using
the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The fair values of standby letters of credit and lines of credit are
based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The estimated fair values of the Company’s commitments to extend
credit, lines of credit and standby letters of credit were not material at June 30, 2022 and December 31, 2021.
|
Financial Instruments with Off-Balance Sheet Risk |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk |
The Company is a party to financial instruments with off-balance
sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of
credit risk in excess of the amount recognized in the accompanying consolidated balance sheets. The following summarizes those financial instruments with contract amounts representing credit risk
as of June 30, 2022 and December 31, 2021 (dollars in thousands):
Commitments to extend
credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Each instrument generally has fixed expiration dates or other termination clauses. Since many of the instruments are
expected to expire without being drawn upon, total commitments to extend credit amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of
collateral obtained, if deemed necessary, by the Company upon extension of credit is based on management’s credit evaluation of the customer. Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the
performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.
|
Significant Estimates and Concentrations |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Significant Estimates and Concentrations [Abstract] | |||
Significant Estimates and Concentrations |
GAAP requires disclosure of certain
significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are reflected in Note 6 regarding loans. Current vulnerabilities due
to off-balance sheet credit risk are discussed in Note 11.
As of June 30, 2022, hospitality loans
were 17% of gross total loans with outstanding balances of $200.3 million and unfunded commitments of $28.2 million;
energy loans were 11% of gross total loans with outstanding balances of $131.6 million and unfunded commitments of $37.3 million.
The Company evaluates goodwill for
potential goodwill impairment on an annual basis or more often based on consideration if any impairment indicators have occurred. A prolonged strain on the U.S. economy impacting the Company could result in goodwill being partially or fully
impaired. At June 30, 2022, goodwill of $8.7 million was recorded on the consolidated balance sheet.
|
Nature of Operations and Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation |
Basis of Presentation
The accompanying unaudited interim consolidated financial statements contained
herein reflect all adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position, results of operations, and cash flows of the Company for the interim periods presented. All such adjustments
are of a normal and recurring nature. There have been no significant changes in the accounting policies of the Company since December 31, 2021, the date of the most recent annual report. The condensed consolidated balance sheet of the Company as
of December 31, 2021 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and notes normally included in the Company’s annual financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted. The information contained in the financial statements and footnotes included in Company’s annual report for the year ended December 31, 2021, should be referred to in connection with
these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
|
Principles of Consolidation |
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the
Company, the Bank and its subsidiary, 1039 NW 63rd, LLC, which holds real estate utilized by the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.
|
Use of Estimates |
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect 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.
Material estimates that are particularly susceptible to significant change
relate to the determination of the allowance for loan losses, valuation of other real estate owned, other-than-temporary impairments, income taxes, goodwill and intangibles and fair values of financial instruments.
|
Recent Accounting Pronouncements |
Recent Accounting Pronouncements
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU
requires lessees to recognize a lease liability and a right-of-use asset for all leases, excluding short-term leases, at the commencement date. The guidance in the ASU is effective for annual reporting periods beginning after December 15, 2021.
Additionally, a modified retrospective transition approach is required for a leases existing at the earliest comparative period presented. Management is in the process of planning implementation of this ASU; however, it is not expected to have a
significant impact on the Company’s financial condition, results of operation, or capital position, but will impact the presentation on the balance sheet of the Company’s current operating leases. The Company will adopt this ASU in the fourth
quarter of 2022.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses
(Topic 326). The ASU requires the replacement of the current incurred loss model with an expected loss model, referred to as the current expected credit loss (CECL) model. The guidance in the ASU is effective for reporting periods beginning after
December 15, 2022 with a cumulative-effect adjustment to retained earnings required for the first reporting period. Management is in the process of planning implementation and has established a committee to assist in implementation and
evaluation. The Company will adopt this ASU in the first quarter of 2023.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)
which provides relief for companies preparing for discontinuation of interest rates such as the London Interbank Offered Rate (“LIBOR”). On March 5, 2021, the U.K. Financial Conduct Authority (“FCA”) announced that the majority of LIBOR rates
will no longer be published after December 31, 2021, although a number of key settings will continue until June 2023, to support the rundown of legacy contracts only. As a result, LIBOR should be discontinued as a reference rate. The main
provisions for contract modifications include optional relief by allowing the modification as a continuation of the existing contract without additional analysis and other optional expedients regarding embedded features. ASU 2020-04 was effective
upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact the consolidated financial statements.
|
Recent Events, Including Mergers and Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Events, Including Mergers and Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Assets Acquired and Liabilities Assumed |
An updated preliminary summary of the fair value of assets acquired and liabilities assumed from Watonga are as follows:
|
Earnings per Share (Tables) |
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Earnings per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share |
The following table shows the computation of basic and
diluted earnings per share:
(1) The following have not been included in diluted earnings per share because to do so would have been antidilutive for the
periods presented: Nonqualified stock options outstanding of 24 and 265,750 for the three month periods ended June 30, 2022 and 2021, respectively, and 0
and 27,000 for the six month periods ended June 30, 2022 and 2021, respectively; Restricted stock units of 4 and 27,000 for the three
month periods ended June 30, 2022 and 2021, respectively, and 2 and 27,000 for the six month periods ended June 30, 2022 and 2021, respectively.
|
Debt Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value of Debt Securities Available-for-sale |
The following table summarizes the amortized cost and fair value of debt securities available-for-sale at June 30, 2022 and the corresponding
amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss):
(1) All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.
(2) Included in mortgage-back securities is $27.79 million of residential mortgaged-back securities and $17.58 million of commerical mortgaged-back securities.
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Contractual Maturity |
The amortized cost and estimated fair value of investment securities at June 30, 2022, by contractual maturity, are shown below. The expected
life of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties.
(1) All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.
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Realized Gains and Losses from Sale, Maturity, Repayment and Call of Debt Securities |
The following table presents a summary of realized gains and losses from the sale, maturity, prepayment and call of debt securities for the six
months ended June 30, 2022 and the three months ended June 30, 2022. Note, the Company did not have available-for-sale debt securities
at June 30, 2021.
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Pledged Securities |
The following table details book value of pledged securities as of June 30, 2022:
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Debt Securities in Continuous Unrealized Loss Position |
The following table
details gross unrealized losses and fair values of investment securities aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2022. As of June 30, 2022,
the Company had the ability and intent to hold the debt securities classified as available-for-sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields
available at the time the underlying debt securities were purchased or acquired. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if
market yields for such investments decline. Management has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no
impairment loss was realized in the Company’s consolidated statements of comprehensive income.
(1) All of our state and political subdivisions securities are rate AA- or better.
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Loans and Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans |
A summary of loans at June 30, 2022 and December 31, 2021, are as follows
(dollars in thousands):
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Activity in Allowance for Loan Losses by Portfolio Segment |
The following table presents, by portfolio segment, the
activity in the allowance for loan losses for the three months ended June 30, 2022 and 2021 (dollars in thousands):
The following table presents, by portfolio segment, the activity in the allowance for loan losses for the six months ended June 30, 2022 and 2021
(dollars in thousands):
The following table presents, by portfolio segment, the balance in allowance for loan losses and the gross loans based upon portfolio segment and impairment method as of June 30, 2022 and December 31, 2021 (dollars in thousands):
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Loan Portfolio Based on Internal Rating Category |
The following table presents the credit risk profile of
the Company’s loan portfolio based on internal rating category as of June 30, 2022 and December 31, 2021 (dollars in thousands):
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Loan Portfolio Aging Analysis of Recorded Investment in Loans |
The following table presents the Company’s loan portfolio
aging analysis of the recorded investment in loans as of June 30, 2022 and December 31, 2021 (dollars in thousands):
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Impaired Loans |
The following table presents impaired loans as of June
30, 2022 and December 31, 2021 (dollars in thousands):
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Information Regarding Nonperforming Assets |
The following table represents information regarding nonperforming assets at
June 30, 2022 and December 31, 2021 (dollars in thousands):
|
Shareholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity under Repurchase Plan |
A summary of the activity under the RP is as follows:
|
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Actual Capital Amounts and Ratios |
The Company’s and Bank’s actual capital amounts and
ratios are presented in the following table (dollars in thousands):
|
Employee Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options Activity |
The following table is a summary of the stock option
activity under the Incentive Plan (dollar amounts in thousands, except per share data):
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Assumptions Used for Computing Stock-Based Compensation Expense under Fair Value Method |
The following table shows the assumptions used for
computing stock-based compensation expense under the fair value method on options granted during the period presented. There were no grants for the six months ended June 30, 2022.
|
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Restricted Stock Units |
The following table summarizes share information about RSUs
for the six months ended June 30, 2022 and 2021:
|
Disclosures About Fair Value of Assets and Liabilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures about Fair Value of Assets and Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Nonrecurring Basis |
The following table presents the fair value measurement of
assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and December 31, 2021 (dollars in thousands):
|
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Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements |
The following table presents quantitative information about
unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
|
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Estimated Fair Value of Financial Instruments Not Recorded at Fair Value |
The following table presents estimated fair values of the
Company’s financial instruments not recorded at fair value at June 30, 2022 and December 31, 2021 (dollars in thousands):
|
Financial Instruments with Off-Balance Sheet Risk (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Contract Amounts Representing Credit Risk | The following summarizes those financial instruments with contract amounts representing credit risk
as of June 30, 2022 and December 31, 2021 (dollars in thousands):
|
Restriction on Cash and Due from Banks (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Restriction on Cash and Due from Banks [Abstract] | |
Reserve funds to be maintained with Federal Reserve Bank | $ 0 |
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|||
Numerator [Abstract] | ||||||
Net income | $ 7,024 | $ 6,105 | $ 13,208 | $ 11,209 | ||
Denominator [Abstract] | ||||||
Weighted-average shares outstanding for basic earnings per share (in shares) | 9,097,280 | 9,050,606 | 9,093,150 | 9,050,295 | ||
Dilutive effect of stock compensation (in shares) | [1] | 97,643 | 23,802 | 94,487 | 16,502 | |
Denominator for diluted earnings per share (in shares) | 9,194,923 | 9,074,408 | 9,187,637 | 9,066,797 | ||
Earnings per common share [Abstract] | ||||||
Basic (in dollars per share) | $ 0.77 | $ 0.67 | $ 1.45 | $ 1.24 | ||
Diluted (in dollars per share) | $ 0.76 | $ 0.67 | $ 1.44 | $ 1.24 | ||
Nonqualified Stock Options [Member] | ||||||
Antidilutive securities [Abstract] | ||||||
Antidilutive shares excluded from the calculation of earnings per share (in shares) | 24 | 265,750 | 0 | 27,000 | ||
Restricted Stock Units [Member] | ||||||
Antidilutive securities [Abstract] | ||||||
Antidilutive shares excluded from the calculation of earnings per share (in shares) | 4 | 27,000 | 2 | 27,000 | ||
|
Debt Securities, Contractual Maturity (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
Securities
|
Dec. 31, 2021
USD ($)
|
Jun. 30, 2021
USD ($)
|
|||||
---|---|---|---|---|---|---|---|---|
Available-for-sale, amortized cost [Abstract] | ||||||||
Due in one year or less | $ 3,479 | $ 3,622 | ||||||
Due after one year through five years | 116,410 | 22,030 | ||||||
Due after five years through ten years | 24,410 | 22,819 | ||||||
Due after ten years | 836 | 3,137 | ||||||
Mortgage-backed securities | [1] | 49,209 | 33,085 | |||||
Amortized cost | 194,344 | 84,693 | ||||||
Available-for-sale, fair value [Abstract] | ||||||||
Due in one year or less | 3,459 | 3,623 | ||||||
Due after one year through five years | 113,205 | 22,076 | ||||||
Due after five years through ten years | 22,306 | 22,821 | ||||||
Due after ten years | 704 | 3,134 | ||||||
Mortgage-backed securities | [1] | 45,374 | 33,154 | |||||
Fair value | $ 185,048 | 84,808 | $ 0 | |||||
Number of holdings of securities of any issuer, other than U.S. Government, exceeding 10% of stockholders' equity | Securities | 2 | |||||||
Available-for-sale Securities [Member] | ||||||||
Available-for-sale, amortized cost [Abstract] | ||||||||
Amortized cost | $ 194,344 | 84,693 | ||||||
Available-for-sale, fair value [Abstract] | ||||||||
Fair value | 185,048 | 84,808 | ||||||
Mortgage-Backed Securities [Member] | ||||||||
Available-for-sale, amortized cost [Abstract] | ||||||||
Amortized cost | [1] | 49,209 | [2] | 33,085 | ||||
Available-for-sale, fair value [Abstract] | ||||||||
Fair value | [1] | 45,374 | [2] | 33,154 | ||||
Fair value of debt securities | 14,320 | |||||||
U.S. Treasuries [Member] | ||||||||
Available-for-sale, amortized cost [Abstract] | ||||||||
Amortized cost | 106,043 | 6,052 | ||||||
Available-for-sale, fair value [Abstract] | ||||||||
Fair value | 102,777 | $ 6,047 | ||||||
Fair value of debt securities | $ 97,410 | |||||||
|
Debt Securities, Realized Gains and Losses from Sale, Maturity, Repayment and Call of Debt Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Debt Securities [Abstract] | |||||
Available-for-sale debt securities | $ 185,048 | $ 0 | $ 185,048 | $ 0 | $ 84,808 |
Realized gains (losses) [Abstract] | |||||
Proceeds from sales, maturities, prepayments and calls | 6,601 | 19,828 | |||
Gross realized gains on sales, maturities, prepayments and calls | 10 | 10 | |||
Gross realized losses on sales, maturities, prepayments and calls | 0 | (127) | |||
Total realized (losses), net | $ 10 | $ 0 | $ (117) | $ 0 |
Debt Securities, Pledged Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Asset Pledged as Collateral without Right [Member] | ||
Pledged securities [Abstract] | ||
Book value of pledged securities | $ 31,645 | $ 37,477 |
Debt Securities, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|||
Continuous unrealized loss position of securities [Abstract] | ||||
Impairment loss realized in comprehensive income | $ 0 | |||
Securities in continuous unrealized loss position, fair value [Abstract] | ||||
Less than twelve months | 185,048 | $ 6,047 | ||
Twelve months or longer | 0 | 0 | ||
Fair value | 185,048 | 6,047 | ||
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||||
Less than twelve months | (9,296) | (5) | ||
Twelve months or longer | 0 | 0 | ||
Unrealized losses | (9,296) | (5) | ||
U.S. Federal Agencies [Member] | ||||
Securities in continuous unrealized loss position, fair value [Abstract] | ||||
Less than twelve months | 240 | 0 | ||
Twelve months or longer | 0 | 0 | ||
Fair value | 240 | 0 | ||
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||||
Less than twelve months | (6) | 0 | ||
Twelve months or longer | 0 | 0 | ||
Unrealized losses | (6) | 0 | ||
Mortgage-Backed Securities [Member] | ||||
Securities in continuous unrealized loss position, fair value [Abstract] | ||||
Less than twelve months | 45,374 | 0 | ||
Twelve months or longer | 0 | 0 | ||
Fair value | 45,374 | 0 | ||
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||||
Less than twelve months | (3,835) | 0 | ||
Twelve months or longer | 0 | 0 | ||
Unrealized losses | (3,835) | 0 | ||
State and Political Subdivisions [Member] | ||||
Securities in continuous unrealized loss position, fair value [Abstract] | ||||
Less than twelve months | [1] | 31,347 | 0 | |
Twelve months or longer | [1] | 0 | 0 | |
Fair value | [1] | 31,347 | 0 | |
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||||
Less than twelve months | [1] | (1,999) | 0 | |
Twelve months or longer | [1] | 0 | 0 | |
Unrealized losses | [1] | (1,999) | 0 | |
U.S. Treasuries [Member] | ||||
Securities in continuous unrealized loss position, fair value [Abstract] | ||||
Less than twelve months | 102,777 | 6,047 | ||
Twelve months or longer | 0 | 0 | ||
Fair value | 102,777 | 6,047 | ||
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||||
Less than twelve months | (3,266) | (5) | ||
Twelve months or longer | 0 | 0 | ||
Unrealized losses | (3,266) | (5) | ||
Corporate Debt Securities [Member] | ||||
Securities in continuous unrealized loss position, fair value [Abstract] | ||||
Less than twelve months | 5,310 | 0 | ||
Twelve months or longer | 0 | 0 | ||
Fair value | 5,310 | 0 | ||
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||||
Less than twelve months | (190) | 0 | ||
Twelve months or longer | 0 | 0 | ||
Unrealized losses | $ (190) | $ 0 | ||
|
Loans and Allowance for Loan Losses, Summary of Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|---|
Summary of loans [Abstract] | ||||||
Gross loans | $ 1,155,445 | $ 1,030,978 | ||||
Less allowance for loan losses | (10,819) | $ (10,599) | (10,316) | $ (12,306) | $ (10,864) | $ (9,639) |
Less deferred loan fees | (3,129) | (2,577) | ||||
Net loans | 1,141,497 | 1,018,085 | ||||
Construction & Development [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 191,291 | 169,322 | ||||
Less allowance for loan losses | (1,792) | (1,717) | (1,695) | (1,631) | (1,367) | (1,239) |
1 - 4 Family Real Estate [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 69,267 | 62,971 | ||||
Less allowance for loan losses | (649) | (579) | (630) | (448) | (433) | (334) |
Commercial Real Estate - Other [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 343,489 | 339,655 | ||||
Less allowance for loan losses | (3,216) | (3,334) | (3,399) | (4,109) | (3,877) | (3,337) |
Commercial Real Estate [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 604,047 | 571,948 | ||||
Commercial & Industrial [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 475,197 | 361,974 | ||||
Less allowance for loan losses | (4,449) | (4,148) | (3,621) | (5,189) | (4,543) | (4,035) |
Commercial & Industrial [Member] | PPP Loans [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 9,900 | 18,700 | ||||
Agricultural [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 59,644 | 73,010 | ||||
Less allowance for loan losses | (558) | (627) | (730) | (825) | (532) | (580) |
Consumer [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 16,557 | 24,046 | ||||
Less allowance for loan losses | $ (155) | $ (194) | $ (241) | $ (104) | $ (112) | $ (114) |
Loans and Allowance for Loan Losses, Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | $ 10,599 | $ 10,864 | $ 10,316 | $ 9,639 | |
Charge-offs | (4) | (11) | (6) | (61) | |
Recoveries | 5 | 153 | 14 | 153 | |
Net (charge-offs) recoveries | 1 | 142 | 8 | 92 | |
Provision (credit) for loan losses | 219 | 1,300 | 495 | 2,575 | |
Balance, end of period | 10,819 | 12,306 | 10,819 | 12,306 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 220 | 220 | $ 253 | ||
Ending balance, collectively evaluated for impairment | 10,599 | 10,599 | 10,063 | ||
Total | 10,819 | 12,306 | 10,819 | 12,306 | 10,316 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 21,062 | 21,062 | 23,854 | ||
Ending balance, collectively evaluated for impairment | 1,134,383 | 1,134,383 | 1,007,124 | ||
Total Loans | 1,155,445 | 1,155,445 | 1,030,978 | ||
Construction & Development [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 1,717 | 1,367 | 1,695 | 1,239 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | |
Provision (credit) for loan losses | 75 | 264 | 97 | 392 | |
Balance, end of period | 1,792 | 1,631 | 1,792 | 1,631 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 1,792 | 1,792 | 1,695 | ||
Total | 1,792 | 1,631 | 1,792 | 1,631 | 1,695 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 191,291 | 191,291 | 169,322 | ||
Total Loans | 191,291 | 191,291 | 169,322 | ||
1 - 4 Family Real Estate [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 579 | 433 | 630 | 334 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | |
Provision (credit) for loan losses | 70 | 15 | 19 | 114 | |
Balance, end of period | 649 | 448 | 649 | 448 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 649 | 649 | 630 | ||
Total | 649 | 448 | 649 | 448 | 630 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 69,267 | 69,267 | 62,971 | ||
Total Loans | 69,267 | 69,267 | 62,971 | ||
Commercial Real Estate - Other [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 3,334 | 3,877 | 3,399 | 3,337 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | |
Provision (credit) for loan losses | (118) | 232 | (183) | 772 | |
Balance, end of period | 3,216 | 4,109 | 3,216 | 4,109 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 3,216 | 3,216 | 3,399 | ||
Total | 3,216 | 4,109 | 3,216 | 4,109 | 3,399 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 14,068 | 14,068 | 14,481 | ||
Ending balance, collectively evaluated for impairment | 329,421 | 329,421 | 325,174 | ||
Total Loans | 343,489 | 343,489 | 339,655 | ||
Commercial & Industrial [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 4,148 | 4,543 | 3,621 | 4,035 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 14 | 0 | 14 | |
Net (charge-offs) recoveries | 0 | 14 | 0 | 14 | |
Provision (credit) for loan losses | 301 | 632 | 828 | 1,140 | |
Balance, end of period | 4,449 | 5,189 | 4,449 | 5,189 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 220 | 220 | 253 | ||
Ending balance, collectively evaluated for impairment | 4,229 | 4,229 | 3,368 | ||
Total | 4,449 | 5,189 | 4,449 | 5,189 | 3,621 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 6,994 | 6,994 | 9,354 | ||
Ending balance, collectively evaluated for impairment | 468,203 | 468,203 | 352,620 | ||
Total Loans | 475,197 | 475,197 | 361,974 | ||
Agricultural [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 627 | 532 | 730 | 580 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 138 | 0 | 138 | |
Net (charge-offs) recoveries | 0 | 138 | 0 | 138 | |
Provision (credit) for loan losses | (69) | 155 | (172) | 107 | |
Balance, end of period | 558 | 825 | 558 | 825 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 558 | 558 | 730 | ||
Total | 558 | 825 | 558 | 825 | 730 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 59,644 | 59,644 | 73,010 | ||
Total Loans | 59,644 | 59,644 | 73,010 | ||
Consumer [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 194 | 112 | 241 | 114 | |
Charge-offs | (4) | (11) | (6) | (61) | |
Recoveries | 5 | 1 | 14 | 1 | |
Net (charge-offs) recoveries | 1 | (10) | 8 | (60) | |
Provision (credit) for loan losses | (40) | 2 | (94) | 50 | |
Balance, end of period | 155 | 104 | 155 | 104 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 155 | 155 | 241 | ||
Total | 155 | $ 104 | 155 | $ 104 | 241 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 19 | ||
Ending balance, collectively evaluated for impairment | 16,557 | 16,557 | 24,027 | ||
Total Loans | $ 16,557 | $ 16,557 | $ 24,046 |
Loans and Allowance for Loan Losses, Loan Portfolio Based on Internal Rating Category (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | $ 1,155,445 | $ 1,030,978 |
1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 1,097,726 | 952,517 |
2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 16,977 | 19,889 |
3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 18,868 | 33,872 |
4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 21,874 | 24,700 |
Construction & Development [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 191,291 | 169,322 |
Construction & Development [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 191,291 | 169,322 |
Construction & Development [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Construction & Development [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Construction & Development [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 69,267 | 62,971 |
1 - 4 Family Real Estate [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 69,267 | 62,971 |
1 - 4 Family Real Estate [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Commercial Real Estate - Other [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 343,489 | 339,655 |
Commercial Real Estate - Other [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 296,788 | 282,268 |
Commercial Real Estate - Other [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 15,000 | 14,976 |
Commercial Real Estate - Other [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 16,845 | 27,112 |
Commercial Real Estate - Other [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 14,856 | 15,299 |
Commercial & Industrial [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 475,197 | 361,974 |
Commercial & Industrial [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 464,572 | 341,661 |
Commercial & Industrial [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 1,752 | 4,658 |
Commercial & Industrial [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 1,879 | 6,300 |
Commercial & Industrial [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 6,994 | 9,355 |
Agricultural [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 59,644 | 73,010 |
Agricultural [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 59,275 | 72,295 |
Agricultural [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 225 | 255 |
Agricultural [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 144 | 460 |
Agricultural [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Consumer [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 16,557 | 24,046 |
Consumer [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 16,533 | 24,000 |
Consumer [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Consumer [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Consumer [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | $ 24 | $ 46 |
Loans and Allowance for Loan Losses, Loan Portfolio Aging Analysis of Recorded Investment in Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Past Due [Abstract] | ||
Total Loans | $ 1,155,445 | $ 1,030,978 |
Total Loans > 90 Days & Accruing | 69 | 496 |
Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 10,643 | 852 |
30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 10,281 | 48 |
60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 56 | 208 |
Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 306 | 596 |
Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 1,144,802 | 1,030,126 |
Construction & Development [Member] | ||
Past Due [Abstract] | ||
Total Loans | 191,291 | 169,322 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Construction & Development [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Construction & Development [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Construction & Development [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Construction & Development [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Construction & Development [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 191,291 | 169,322 |
1 - 4 Family Real Estate [Member] | ||
Past Due [Abstract] | ||
Total Loans | 69,267 | 62,971 |
Total Loans > 90 Days & Accruing | 0 | 0 |
1 - 4 Family Real Estate [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 26 | 0 |
1 - 4 Family Real Estate [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 26 | 0 |
1 - 4 Family Real Estate [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 69,241 | 62,971 |
Commercial Real Estate - Other [Member] | ||
Past Due [Abstract] | ||
Total Loans | 343,489 | 339,655 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Commercial Real Estate - Other [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 186 | 174 |
Commercial Real Estate - Other [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Commercial Real Estate - Other [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 24 | 174 |
Commercial Real Estate - Other [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 162 | 0 |
Commercial Real Estate - Other [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 343,303 | 339,481 |
Commercial & Industrial [Member] | ||
Past Due [Abstract] | ||
Total Loans | 475,197 | 361,974 |
Total Loans > 90 Days & Accruing | 0 | 401 |
Commercial & Industrial [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 10,025 | 520 |
Commercial & Industrial [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 9,919 | 0 |
Commercial & Industrial [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 31 | 19 |
Commercial & Industrial [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 75 | 501 |
Commercial & Industrial [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 465,172 | 361,454 |
Agricultural [Member] | ||
Past Due [Abstract] | ||
Total Loans | 59,644 | 73,010 |
Total Loans > 90 Days & Accruing | 55 | 77 |
Agricultural [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 55 | 77 |
Agricultural [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Agricultural [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Agricultural [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 55 | 77 |
Agricultural [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 59,589 | 72,933 |
Consumer [Member] | ||
Past Due [Abstract] | ||
Total Loans | 16,557 | 24,046 |
Total Loans > 90 Days & Accruing | 14 | 18 |
Consumer [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 351 | 81 |
Consumer [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 336 | 48 |
Consumer [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 1 | 15 |
Consumer [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 14 | 18 |
Consumer [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | $ 16,206 | $ 23,965 |
Loans and Allowance for Loan Losses, Impaired Loans and TDR's (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2022
USD ($)
Contract
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Impaired Loans [Abstract] | |||||
Unpaid principal balance | $ 23,278 | $ 23,278 | $ 24,906 | ||
Recorded investment with no allowance | 21,654 | 21,654 | 23,601 | ||
Recorded investment with an allowance | 220 | 220 | 253 | ||
Total recorded investment | 21,874 | 21,874 | 23,854 | ||
Related allowance | 220 | 220 | 253 | ||
Average recorded investment | 22,082 | $ 24,874 | 24,239 | $ 23,841 | |
Interest income recognized | 245 | 499 | 572 | 823 | |
Troubled Debt Restructurings [Abstract] | |||||
TDR loans impaired | 1,300 | $ 1,300 | 1,400 | ||
Newly modified troubled-debt restructurings | Contract | 0 | ||||
Troubled debt restructurings modified that subsequently defaulted | $ 0 | ||||
Construction & Development [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 85 | 0 | 42 | 0 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
1 - 4 Family Real Estate [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 0 | 0 | 0 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Commercial Real Estate - Other [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 15,937 | 15,937 | 15,412 | ||
Recorded investment with no allowance | 14,856 | 14,856 | 14,481 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 14,856 | 14,856 | 14,481 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 14,914 | 10,267 | 14,872 | 9,134 | |
Interest income recognized | 245 | 332 | 448 | 454 | |
Commercial & Industrial [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 7,317 | 7,317 | 9,476 | ||
Recorded investment with no allowance | 6,774 | 6,774 | 9,101 | ||
Recorded investment with an allowance | 220 | 220 | 253 | ||
Total recorded investment | 6,994 | 6,994 | 9,354 | ||
Related allowance | 220 | 220 | 253 | ||
Average recorded investment | 7,059 | 14,307 | 9,294 | 14,321 | |
Interest income recognized | 0 | 167 | 123 | 369 | |
Agricultural [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 237 | 2 | 323 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Consumer [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 24 | 24 | 18 | ||
Recorded investment with no allowance | 24 | 24 | 19 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 24 | 24 | 19 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 24 | 63 | 29 | 63 | |
Interest income recognized | 0 | $ 0 | 1 | $ 0 | |
Commercial Real Estate [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
TDR loans impaired | $ 1,300 | $ 1,300 | $ 1,400 |
Loans and Allowance for Loan Losses, Information Regarding Nonperforming Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Nonperforming Assets [Abstract] | ||||
Nonaccrual loans | $ 9,473 | $ 9,885 | ||
Troubled-debt restructurings | [1] | 0 | 0 | |
Accruing loans 90 or more days past due | 69 | 496 | ||
Total nonperforming loans | 9,542 | 10,381 | ||
TDR loans impaired | 1,300 | 1,400 | ||
Construction & Development [Member] | ||||
Nonperforming Assets [Abstract] | ||||
Nonaccrual loans | 0 | 0 | ||
Troubled-debt restructurings | [1] | 0 | 0 | |
Accruing loans 90 or more days past due | 0 | 0 | ||
Total nonperforming loans | 0 | 0 | ||
1 - 4 Family Real Estate [Member] | ||||
Nonperforming Assets [Abstract] | ||||
Nonaccrual loans | 0 | 0 | ||
Troubled-debt restructurings | [1] | 0 | 0 | |
Accruing loans 90 or more days past due | 0 | 0 | ||
Total nonperforming loans | 0 | 0 | ||
Commercial Real Estate - Other [Member] | ||||
Nonperforming Assets [Abstract] | ||||
Nonaccrual loans | 1,462 | 2,708 | ||
Troubled-debt restructurings | [1] | 0 | 0 | |
Accruing loans 90 or more days past due | 0 | 0 | ||
Total nonperforming loans | 1,462 | 2,708 | ||
Commercial & Industrial [Member] | ||||
Nonperforming Assets [Abstract] | ||||
Nonaccrual loans | 8,011 | 7,163 | ||
Troubled-debt restructurings | [1] | 0 | 0 | |
Accruing loans 90 or more days past due | 0 | 401 | ||
Total nonperforming loans | 8,011 | 7,564 | ||
Agricultural [Member] | ||||
Nonperforming Assets [Abstract] | ||||
Nonaccrual loans | 0 | 0 | ||
Troubled-debt restructurings | [1] | 0 | 0 | |
Accruing loans 90 or more days past due | 55 | 77 | ||
Total nonperforming loans | 55 | 77 | ||
Consumer [Member] | ||||
Nonperforming Assets [Abstract] | ||||
Nonaccrual loans | 0 | 14 | ||
Troubled-debt restructurings | [1] | 0 | 0 | |
Accruing loans 90 or more days past due | 14 | 18 | ||
Total nonperforming loans | $ 14 | $ 32 | ||
|
Shareholders' Equity, Repurchase Plan (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Nov. 02, 2020 |
Mar. 13, 2020 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Oct. 28, 2021 |
Sep. 05, 2019 |
|
Repurchase Plan [Member] | ||||||||
Stock Repurchase Program [Abstract] | ||||||||
Number of shares authorized to purchase (in shares) | 1,750,000 | 500,000 | ||||||
Number of shares approved for expansion to the existing stock (in shares) | 750,000 | 500,000 | ||||||
Number of shares repurchased (in shares) | 0 | 0 | 0 | 0 | ||||
Average price of shares repurchased (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Shares remaining to be repurchased (in shares) | 750,000 | 717,822 | 750,000 | 717,822 | ||||
New Repurchase Plan [Member] | ||||||||
Stock Repurchase Program [Abstract] | ||||||||
Number of shares authorized to purchase (in shares) | 750,000 |
Shareholders' Equity, Actual Capital Amounts and Ratios (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
---|---|---|
Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 139,886 | $ 127,946 |
Total capital to risk-weighted assets, actual ratio | 0.1214 | 0.1254 |
Total capital to risk-weighted assets, minimum capital requirements amount | $ 92,200 | $ 81,620 |
Total capital to risk-weighted assets, minimum capital requirements ratio | 0.0800 | 0.0800 |
Total capital to risk-weighted assets, capital conservation buffer amount | $ 121,012 | $ 107,126 |
Total capital to risk-weighted assets, capital conservation buffer ratio | 0.1050 | 0.1050 |
Tier I capital to risk-weighted assets, actual amount | $ 129,067 | $ 117,631 |
Tier I capital to risk-weighted assets, actual ratio | 0.1120 | 0.1153 |
Tier I capital to risk-weighted assets, minimum capital requirements amount | $ 69,150 | $ 61,215 |
Tier I capital to risk-weighted assets, minimum capital requirements ratio | 0.0600 | 0.0600 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer amount | $ 97,962 | $ 86,721 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer ratio | 0.0850 | 0.0850 |
CET I capital to risk-weighted assets, actual amount | $ 129,067 | $ 117,631 |
CET I capital to risk-weighted assets, actual ratio | 0.1120 | 0.1153 |
CET I capital to risk-weighted assets, minimum capital requirements amount | $ 51,862 | $ 45,911 |
CET I capital to risk-weighted assets, minimum capital requirements ratio | 0.0450 | 0.0450 |
CET I capital to risk-weighted assets, capital conservation buffer amount | $ 80,675 | $ 71,417 |
CET I capital to risk-weighted assets, capital conservation buffer ratio | 0.0700 | 0.0700 |
Tier I capital to average assets, actual amount | $ 129,067 | $ 117,631 |
Tier I capital to average assets, actual ratio | 0.0897 | 0.1056 |
Tier I capital to average assets, minimum capital requirements amount | $ 57,566 | $ 44,571 |
Tier I capital to average assets, minimum capital requirements ratio | 0.0400 | 0.0400 |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 139,853 | $ 127,844 |
Total capital to risk-weighted assets, actual ratio | 0.1215 | 0.1254 |
Total capital to risk-weighted assets, minimum capital requirements amount | $ 92,119 | $ 81,539 |
Total capital to risk-weighted assets, minimum capital requirements ratio | 0.0800 | 0.0800 |
Total capital to risk-weighted assets, capital conservation buffer amount | $ 120,906 | $ 107,020 |
Total capital to risk-weighted assets, capital conservation buffer ratio | 0.1050 | 0.1050 |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action amount | $ 115,149 | $ 101,924 |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action ratio | 0.1000 | 0.1000 |
Tier I capital to risk-weighted assets, actual amount | $ 129,034 | $ 117,528 |
Tier I capital to risk-weighted assets, actual ratio | 0.1121 | 0.1153 |
Tier I capital to risk-weighted assets, minimum capital requirements amount | $ 69,089 | $ 61,154 |
Tier I capital to risk-weighted assets, minimum capital requirements ratio | 0.0600 | 0.0600 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer amount | $ 97,876 | $ 86,635 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer ratio | 0.0850 | 0.0850 |
Tier I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action amount | $ 92,119 | $ 81,539 |
Tier I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action ratio | 0.0800 | 0.0800 |
CET I capital to risk-weighted assets, actual amount | $ 129,034 | $ 117,528 |
CET I capital to risk-weighted assets, actual ratio | 0.1121 | 0.1153 |
CET I capital to risk-weighted assets, minimum capital requirements amount | $ 51,817 | $ 45,866 |
CET I capital to risk-weighted assets, minimum capital requirements ratio | 0.0450 | 0.0450 |
CET I capital to risk-weighted assets, capital conservation buffer amount | $ 80,604 | $ 71,347 |
CET I capital to risk-weighted assets, capital conservation buffer ratio | 0.0700 | 0.0700 |
CET I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action amount | $ 74,847 | $ 66,250 |
CET I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action ratio | 0.0650 | 0.0650 |
Tier I capital to average assets, actual amount | $ 129,034 | $ 117,528 |
Tier I capital to average assets, actual ratio | 0.0897 | 0.1055 |
Tier I capital to average assets, minimum capital requirements amount | $ 57,540 | $ 44,571 |
Tier I capital to average assets, minimum capital requirements ratio | 0.0400 | 0.0400 |
Tier I capital to average assets, minimum to be well capitalized under prompt corrective action amount | $ 71,925 | $ 55,714 |
Tier I capital to average assets, minimum to be well capitalized under prompt corrective action ratio | 0.0500 | 0.0500 |
Shareholders' Equity, Payout Restrictions Based on Capital Conservation Buffer (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Shareholders' Equity [Abstract] | |
Retained earnings available for dividend declaration | $ 47.4 |
Related-Party Transactions (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Related-Party Transactions [Abstract] | |||||
Loans outstanding | $ 0 | $ 0 | $ 0 | ||
Haines Realty Investments Company, LLC [Member] | |||||
Sale of subsidiary [Abstract] | |||||
Lease expense | $ 39,000 | $ 46,000 | $ 77,000 | $ 92,000 |
Employee Benefits (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Employee Benefits [Abstract] | ||||
Percentage of employee's compensation matched by company | 5.00% | |||
Defined benefit plan, employer contribution | $ 113,000 | $ 75,000 | $ 208,000 | $ 140,000 |
Share-based Compensation [Abstract] | ||||
Compensation expenses | 992,000 | 473,000 | ||
Incentive Plan [Member] | ||||
Share-based Compensation [Abstract] | ||||
Compensation expenses | $ 706,000 | 171,000 | $ 992,000 | $ 473,000 |
Shares available for future grants (in shares) | 706,587 | 706,587 | ||
Unearned stock-based compensation expense [Abstract] | ||||
Risk-free interest rate | 0.52% | |||
Dividend yield | 2.89% | |||
Stock price volatility | 66.67% | |||
Expected term | 6 years 4 months 28 days | |||
Incentive Plan [Member] | Stock Option [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 4 years | |||
Unrecognized compensation expense | $ 438,000 | $ 756,000 | $ 438,000 | $ 756,000 |
Unvested and/or unexercised stock options (in shares) | 249,188 | 265,750 | 249,188 | 265,750 |
Period for recognition of compensation cost not yet recognized | 2 years 2 months 8 days | 2 years 10 months 17 days | ||
Stock Option Activity [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 264,000 | |||
Options granted (in shares) | 0 | |||
Options exercised (in shares) | 14,812 | |||
Options forfeited (in shares) | 0 | |||
Outstanding at end of period (in shares) | 249,188 | 249,188 | ||
Exercisable at end of period (in shares) | 137,498 | 137,498 | ||
Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding at beginning of period (in dollars per share) | $ 17.41 | |||
Options granted (in dollars per share) | 0 | |||
Options exercised (in dollars per share) | 17.67 | |||
Options forfeited (in dollars per share) | 0 | |||
Outstanding at end of period (in dollars per share) | $ 17.40 | 17.40 | ||
Exercisable at end of period (in dollars per share) | $ 18.23 | $ 18.23 | ||
Options, Additional Disclosures [Abstract] | ||||
Weighted average remaining contractual term, Outstanding | 7 years 25 days | |||
Weighted average remaining contractual term, Exercisable | 6 years 7 months 20 days | |||
Aggregate intrinsic value, Outstanding | $ 1,355,991,000 | $ 1,355,991,000 | ||
Aggregate intrinsic value, Exercisable | 634,492,000 | 634,492,000 | ||
Incentive Plan [Member] | RSUs [Member] | ||||
Share-based Compensation [Abstract] | ||||
Unrecognized compensation expense | $ 2,300,000 | $ 1,900,000 | $ 2,300,000 | $ 1,900,000 |
Period for recognition of compensation cost not yet recognized | 2 years 7 months 28 days | 2 years 9 months 3 days | ||
Restricted Stock Units [Roll Forward] | ||||
Outstanding, beginning of the period (in shares) | 172,993 | 118,000 | ||
Shares granted (in shares) | 500 | 25,200 | ||
Shares vested (in shares) | (15,584) | (7,582) | ||
Shares forfeited (in shares) | 0 | 0 | ||
Outstanding, end of the period (in shares) | 157,909 | 135,618 | 157,909 | 135,618 |
Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $ 19.02 | $ 18.09 | ||
Shares granted (in dollars per share) | 24.18 | 14.31 | ||
Shares vested (in dollars per share) | 15.98 | 18.02 | ||
Shares forfeited (in dollars per share) | 0 | 0 | ||
Outstanding, end of period (in dollars per share) | $ 19.34 | $ 17.39 | $ 19.34 | $ 17.39 |
Incentive Plan [Member] | Tranche One [Member] | RSUs [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 1 year | |||
Incentive Plan [Member] | Tranche Two [Member] | RSUs [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 3 years | |||
Incentive Plan [Member] | Tranche Three [Member] | RSUs [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 5 years |
Disclosures About Fair Value of Assets and Liabilities, Recurring and Nonrecurring Basis (Details) - Nonrecurring Basis [Member] - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | $ 6,770 | $ 6,910 |
Level 1 [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Level 2 [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Level 3 [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | $ 6,770 | $ 6,910 |
Disclosures About Fair Value of Assets and Liabilities, Quantitative Information (Details) - Nonrecurring Basis [Member] $ in Thousands |
Jun. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
---|---|---|
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | $ 6,770 | $ 6,910 |
Level 3 [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | $ 6,770 | $ 6,910 |
Level 3 [Member] | Appraisals from Comparable Properties [Member] | Estimated Cost to Sell [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans, measurement input | 0.20 | 0.20 |
Disclosures About Fair Value of Assets and Liabilities, Estimated Fair Value of Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | $ 123,437 | $ 195,359 |
Federal funds sold | 0 | 9,493 |
Interest-bearing time deposits in other banks | 1,992 | 3,237 |
Loans, net of allowance | 1,141,497 | 1,018,085 |
Loans held for sale | 635 | 464 |
Nonmarketable equity securities | 1,192 | 1,202 |
Interest receivable | 5,741 | 4,259 |
Financial Liabilities [Abstract] | ||
Deposits | 1,346,291 | 1,217,471 |
Interest payable | 102 | 117 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 123,437 | 195,359 |
Federal funds sold | 0 | 9,493 |
Interest-bearing time deposits in other banks | 1,992 | 3,237 |
Loans, net of allowance | 1,139,593 | 1,017,958 |
Loans held for sale | 635 | 464 |
Nonmarketable equity securities | 1,192 | 1,202 |
Interest receivable | 5,741 | 4,259 |
Financial Liabilities [Abstract] | ||
Deposits | 1,347,589 | 1,217,094 |
Interest payable | 102 | 117 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 123,437 | 195,359 |
Federal funds sold | 0 | 9,493 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 0 | 0 |
Loans held for sale | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Interest payable | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Interest-bearing time deposits in other banks | 1,992 | 3,237 |
Loans, net of allowance | 1,132,823 | 1,011,048 |
Loans held for sale | 635 | 464 |
Nonmarketable equity securities | 1,192 | 1,202 |
Interest receivable | 5,741 | 4,259 |
Financial Liabilities [Abstract] | ||
Deposits | 1,347,589 | 1,217,094 |
Interest payable | 102 | 117 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 6,770 | 6,910 |
Loans held for sale | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Interest payable | $ 0 | $ 0 |
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 236,227 | $ 206,202 |
Commitments to Extend Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | 233,951 | 200,393 |
Financial and Performance Standby Letters of Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 2,276 | $ 5,809 |
Significant Estimates and Concentrations (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 1,155,445 | $ 1,030,978 |
Goodwill | 8,717 | $ 8,479 |
Hospitality Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | 28,200 | |
Hospitality Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 200,300 | |
Hospitality Loans [Member] | Gross Loans [Member] | Product Concentration Risk [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 17.00% | |
Energy Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | $ 37,300 | |
Energy Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 131,600 | |
Energy Loans [Member] | Gross Loans [Member] | Product Concentration Risk [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 11.00% |
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