(State or other jurisdiction of | (I.R.S. Employer Identification No.) | ||||
incorporation or organization) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer ☐ | Accelerated filer | ☐ | ☒ | ||||||||||||||
Smaller reporting company | Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Consolidated Statements of Income (Unaudited) for the three and nine months ended September 30, 2024 and 2023 | ||||||||
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the three and nine months ended September 30, 2024 and 2023 | ||||||||
Consolidated Statements of Stockholders' Equity (Unaudited) for the three and nine months ended September 30, 2024 and 2023 | ||||||||
Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2024 and 2023 | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
(dollars in thousands, except per share data) | September 30, 2024 | December 31, 2023 | |||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Other interest-bearing deposits | |||||||||||
Cash and cash equivalents | |||||||||||
Certificates of deposit in other banks | |||||||||||
Available-for-sale debt securities, at fair value | |||||||||||
Other investments | |||||||||||
Loans held for investment | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
Net loans | |||||||||||
Loans held for sale | |||||||||||
Premises and equipment - net | |||||||||||
Other real estate owned - net | |||||||||||
Cash surrender value of bank-owned life insurance | |||||||||||
Accrued interest receivable and other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Deposits | |||||||||||
Non-interest bearing demand | $ | $ | |||||||||
Savings, interest checking and money market | |||||||||||
Time deposits | |||||||||||
Total deposits | |||||||||||
Federal Home Loan Bank advances and other borrowings | |||||||||||
Subordinated notes | |||||||||||
Operating lease liabilities | |||||||||||
Accrued interest payable and other liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Surplus | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss, net of tax | ( | ( | |||||||||
Treasury stock; | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||
Interest and fees on loans | $ | $ | $ | $ | |||||||||||||||||||
Interest and fees on loans held for sale | |||||||||||||||||||||||
Interest on investment securities: | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
Nontaxable | |||||||||||||||||||||||
Federal funds sold and Other interest-bearing deposits | |||||||||||||||||||||||
Dividends on other investments | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||
Interest on deposits: | |||||||||||||||||||||||
Savings, interest checking and money market | |||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||
Total interest expense on deposits | |||||||||||||||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | |||||||||||||||||||||||
Interest on Federal Home Loan Bank advances | |||||||||||||||||||||||
Interest on subordinated notes | |||||||||||||||||||||||
Total interest expense on borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for credit losses on loans and unfunded commitments | |||||||||||||||||||||||
Net interest income after provision for credit losses on loans and unfunded commitments | |||||||||||||||||||||||
NON-INTEREST INCOME | |||||||||||||||||||||||
Service charges and other fees | |||||||||||||||||||||||
Bank card income and fees | |||||||||||||||||||||||
Earnings on bank-owned life insurance | |||||||||||||||||||||||
Trust department income | |||||||||||||||||||||||
Real estate servicing fees, net | |||||||||||||||||||||||
Gain on sale of mortgage loans, net | |||||||||||||||||||||||
Gains (losses) on other real estate owned, net | ( | ( | |||||||||||||||||||||
Other | |||||||||||||||||||||||
Total non-interest income | |||||||||||||||||||||||
Investment securities gains (losses), net | ( | ||||||||||||||||||||||
NON-INTEREST EXPENSE | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Occupancy expense, net | |||||||||||||||||||||||
Furniture and equipment expense | |||||||||||||||||||||||
Processing, network, and bank card expense | |||||||||||||||||||||||
Legal, examination, and professional fees | |||||||||||||||||||||||
Advertising and promotion | |||||||||||||||||||||||
Postage, printing, and supplies | |||||||||||||||||||||||
Loan expense | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total non-interest expense | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
Change in unrealized gains (losses) on investment securities available-for-sale, net of tax | ( | ( | |||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||
Amortization of net gains included in net periodic pension cost, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Total comprehensive income (loss) | $ | $ | ( | $ | $ |
Three Months Ended September 30, 2024 and 2023 | |||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders' Equity | |||||||||||||||||||||||||||||
Balance, June 30, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Cash dividends declared, common stock ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock dividend | ( | — | — | — | |||||||||||||||||||||||||||||||
Cash dividends declared, common stock ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2024 and 2023 | |||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stock - holders' Equity | |||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Restricted share unit vesting and taxes paid related to net share settlement | — | ( | — | — | |||||||||||||||||||||||||||||||
Cash dividends declared, common stock ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
— | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Balance, January 01, 2023 | ( | ( | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock dividend | ( | — | — | ||||||||||||||||||||||||||||||||
Cash dividends declared, common stock ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses on loans and unfunded commitments | |||||||||||
Depreciation expense | |||||||||||
Net amortization of investment securities, premiums, and discounts | |||||||||||
Change in fair value of mortgage servicing rights | |||||||||||
Investment securities losses (gains), net | ( | ||||||||||
Gain on sales and dispositions of premises and equipment | ( | ( | |||||||||
Gain on sales and dispositions of other real estate | ( | ( | |||||||||
(Release of) provision for valuation allowance for other real estate owned | ( | ||||||||||
Share-based compensation expense | |||||||||||
Increase in cash surrender value - life insurance | ( | ( | |||||||||
Decrease (increase) in other assets | ( | ||||||||||
Decrease in operating lease liabilities | ( | ( | |||||||||
Increase in other liabilities | |||||||||||
Origination of mortgage loans held for sale | ( | ( | |||||||||
Proceeds from the sale of mortgage loans held for sale | |||||||||||
Gain on sale of mortgage loans, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchase of certificates of deposit in other banks | ( | ||||||||||
Proceeds from maturities of certificates of deposit in other banks | |||||||||||
Purchase of bank-owned life insurance | ( | ||||||||||
Net decrease (increase) in loans | ( | ||||||||||
Purchase of available-for-sale debt securities | ( | ( | |||||||||
Proceeds from maturities of available-for-sale debt securities | |||||||||||
Proceeds from calls of available-for-sale debt securities | |||||||||||
Purchases of FHLB stock | ( | ( | |||||||||
Proceeds from sales of FHLB stock | |||||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Proceeds from sales of premises and equipment | |||||||||||
Proceeds from sales of other real estate and repossessed assets | |||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Net decrease in demand deposits | ( | ( | |||||||||
Net decrease in interest-bearing transaction accounts | ( | ( | |||||||||
Net (decrease) increase in time deposits | ( | ||||||||||
Net increase in federal funds purchased and securities sold under agreements to repurchase | |||||||||||
Repayment of FHLB advances and other borrowings | ( | ( | |||||||||
FHLB advances | |||||||||||
Purchase of treasury stock | ( | ||||||||||
Cash dividends paid - common stock | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Nine Months Ended September 30, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | $ | $ | |||||||||
Non-cash investing and financing activities: | |||||||||||
Transfer of loans to other real estate and repossessed assets | $ | $ | |||||||||
Right of use assets obtained in exchange for new operating lease liabilities | $ | $ | |||||||||
Dividends declared not paid - common stock | $ | $ | |||||||||
Stock dividends | $ | $ |
(dollars in thousands) | September 30, 2024 | December 31, 2023 | |||||||||
Commercial, financial, and agricultural | $ | $ | |||||||||
Real estate construction − residential | |||||||||||
Real estate construction − commercial | |||||||||||
Real estate mortgage − residential | |||||||||||
Real estate mortgage − commercial | |||||||||||
Installment and other consumer | |||||||||||
Total loans held for investment | $ | $ |
Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial, Financial, & Agricultural | Real Estate Construction - Residential | Real Estate Construction - Commercial | Real Estate Mortgage - Residential | Real Estate Mortgage - Commercial | Installment and Other Consumer | Un- allocated | Total | |||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Loans | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (release of) credit losses | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Liability for Unfunded Commitments | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Provision for (release of) credit losses on unfunded commitments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans and liability for unfunded commitments | $ | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial, Financial, & Agricultural | Real Estate Construction - Residential | Real Estate Construction - Commercial | Real Estate Mortgage - Residential | Real Estate Mortgage - Commercial | Installment and Other Consumer | Un- allocated | Total | |||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Loans | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (release of) credit losses | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Liability for Unfunded Commitments | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Provision for (release of) credit losses on unfunded commitments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans and liability for unfunded commitments | $ | $ | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial, Financial, & Agricultural | Real Estate Construction - Residential | Real Estate Construction - Commercial | Real Estate Mortgage - Residential | Real Estate Mortgage - Commercial | Installment and Other Consumer | Un- allocated | Total | |||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Loans | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (release of) credit losses | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Liability for Unfunded Commitments | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Provision for (release of) credit losses on unfunded commitments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans and liability for unfunded commitments | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial, Financial, & Agricultural | Real Estate Construction - Residential | Real Estate Construction - Commercial | Real Estate Mortgage - Residential | Real Estate Mortgage - Commercial | Installment and Other Consumer | Un- allocated | Total | |||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Loans | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-13 | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (release of) credit losses | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Liability for Unfunded Commitments | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-13 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (release of) credit losses on unfunded commitments | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans and liability for unfunded commitments | $ | $ | $ | $ | $ | $ | $ | $ |
Collateral Type | |||||||||||||||||
(dollars in thousands) | Real Estate | Other | Allowance Allocated | ||||||||||||||
September 30, 2024 | |||||||||||||||||
Commercial, financial, and agricultural | $ | $ | $ | ||||||||||||||
Real estate construction − residential | |||||||||||||||||
Real estate mortgage − commercial | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
December 31, 2023 | |||||||||||||||||
Commercial, financial, and agricultural | $ | $ | $ | ||||||||||||||
Real estate construction − residential | |||||||||||||||||
Real estate mortgage − residential | |||||||||||||||||
Real estate mortgage − commercial | |||||||||||||||||
Total | $ | $ | $ |
Term Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year and Risk Grades | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, Financial, & Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Construction - Residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Construction - Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Mortgage - Residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Mortgage - Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment and other Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total Gross YTD charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year and Risk Grades | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, Financial, & Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Construction - Residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Construction - Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Mortgage - Residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Mortgage - Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment and other Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Gross YTD charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total Gross YTD charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Non-accrual with no Allowance | Non-accrual with Allowance | Total Non-accrual | 90 Days Past Due And Still Accruing | Total Non-performing Loans | ||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||
Commercial, Financial, and Agricultural | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Real estate construction − residential | |||||||||||||||||||||||||||||
Real estate construction − commercial | |||||||||||||||||||||||||||||
Real estate mortgage − residential | |||||||||||||||||||||||||||||
Real estate mortgage − commercial | |||||||||||||||||||||||||||||
Installment and Other Consumer | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Commercial, Financial, and Agricultural | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Real estate construction − residential | |||||||||||||||||||||||||||||
Real estate construction − commercial | |||||||||||||||||||||||||||||
Real estate mortgage − residential | |||||||||||||||||||||||||||||
Real estate mortgage − commercial | |||||||||||||||||||||||||||||
Installment and Other Consumer | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(dollars in thousands) | Current or Less Than 30 Days Past Due | 30 - 89 Days Past Due | 90 Days Past Due And Still Accruing | Non-Accrual | Total | ||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||
Commercial, Financial, and Agricultural | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Real estate construction − residential | |||||||||||||||||||||||||||||
Real estate construction − commercial | |||||||||||||||||||||||||||||
Real estate mortgage − residential | |||||||||||||||||||||||||||||
Real estate mortgage − commercial | |||||||||||||||||||||||||||||
Installment and Other Consumer | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Commercial, Financial, and Agricultural | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Real estate construction − residential | |||||||||||||||||||||||||||||
Real estate construction − commercial | |||||||||||||||||||||||||||||
Real estate mortgage − residential | |||||||||||||||||||||||||||||
Real estate mortgage − commercial | |||||||||||||||||||||||||||||
Installment and Other Consumer | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
September 30, | December 31, | ||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Commercial | $ | $ | |||||||||
Real estate construction - commercial | |||||||||||
Real estate mortgage - residential | |||||||||||
Real estate mortgage - commercial | |||||||||||
Repossessed assets | |||||||||||
Total | $ | $ | |||||||||
Less valuation allowance for other real estate owned | ( | ( | |||||||||
Total other real estate owned and repossessed assets | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Additions | |||||||||||||||||||||||
Proceeds from sales | ( | ( | ( | ||||||||||||||||||||
Charge-offs against the valuation allowance for other real estate owned, net | ( | ( | ( | ||||||||||||||||||||
Net gain on sales | |||||||||||||||||||||||
Total other real estate owned | $ | $ | |||||||||||||||||||||
Less valuation allowance for other real estate owned | ( | ( | ( | ( | |||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Provision for valuation allowance for other real estate owned | ( | ||||||||||||||||||||||
Charge-offs | ( | ( | ( | ||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
Gross Unrealized | |||||||||||||||||||||||
(dollars in thousands) | Total Amortized Cost | Gains | Losses | Fair Value | |||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||
U.S. government and federal agency obligations | $ | $ | $ | ( | $ | ||||||||||||||||||
U.S. government-sponsored enterprises | ( | ||||||||||||||||||||||
Obligations of states and political subdivisions | ( | ||||||||||||||||||||||
Mortgage-backed securities | ( | ||||||||||||||||||||||
Other debt securities (a) | ( | ||||||||||||||||||||||
Bank issued trust preferred securities (a) | ( | ||||||||||||||||||||||
Total available-for-sale securities | $ | $ | $ | ( | $ | ||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
U.S. Treasury | $ | $ | $ | $ | |||||||||||||||||||
U.S. government and federal agency obligations | ( | ||||||||||||||||||||||
U.S. government-sponsored enterprises | ( | ||||||||||||||||||||||
Obligations of states and political subdivisions | ( | ||||||||||||||||||||||
Mortgage-backed securities | ( | ||||||||||||||||||||||
Other debt securities (a) | ( | ||||||||||||||||||||||
Bank issued trust preferred securities (a) | ( | ||||||||||||||||||||||
Total available-for-sale securities | $ | $ | $ | ( | $ |
(dollars in thousands) | Amortized Cost | Fair Value | |||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through five years | |||||||||||
Due after five years through ten years | |||||||||||
Due after ten years | |||||||||||
Total | $ | $ | |||||||||
Mortgage-backed securities | |||||||||||
Total available-for-sale securities | $ | $ |
(dollars in thousands) | September 30, 2024 | December 31, 2023 | |||||||||
Other securities: | |||||||||||
FHLB stock | $ | $ | |||||||||
MIB stock | |||||||||||
Equity securities with readily determinable fair values | |||||||||||
Total other investment securities | $ | $ |
Less than 12 months | 12 months or more | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Total Fair Value | Total Unrealized Losses | |||||||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||||||||
U.S. government and federal agency obligations | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
U.S. government-sponsored enterprises | ( | ( | |||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | ( | ( | ( | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Other debt securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Bank issued trust preferred securities | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. government and federal agency obligations | ( | ( | |||||||||||||||||||||||||||||||||
U.S. government-sponsored enterprises | ( | ( | ( | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | ( | ( | ( | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other debt securities | ( | ( | |||||||||||||||||||||||||||||||||
Bank issued trust preferred securities | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Nine Months Ended September 30, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Balance at beginning of period | $ | $ | |||||||||
Originated mortgage servicing rights | |||||||||||
Sale proceeds | ( | ||||||||||
Changes in fair value: | |||||||||||
Due to changes in model inputs and assumptions (1) | |||||||||||
Other changes in fair value (2) | ( | ( | |||||||||
Total changes in fair value | ( | ( | |||||||||
Balance at end of period | $ | $ |
Nine Months Ended September 30, | |||||||||||
2024 | 2023 | ||||||||||
Weighted average constant prepayment rate | NA | % | |||||||||
Weighted average note rate | NA | % | |||||||||
Weighted average discount rate | NA | % | |||||||||
Weighted average expected life (in years) | NA |
(dollars in thousands) | September 30, 2024 | December 31, 2023 | ||||||||||||
Time deposits with balances > $250,000 | $ | $ | ||||||||||||
Brokered deposits | $ | $ |
Lease payments due in: | Operating Lease | ||||
(dollars in thousands) | |||||
2024 remaining | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total lease payments | $ | ||||
Less imputed interest | ( | ||||
Total lease liabilities, as reported | $ |
Nine Months Ended September 30, 2024 | |||||||||||||||||
(dollars in thousands) | Unrealized Gains (Losses) on Securities (1) | Unrecognized Net Pension and Postretirement Costs (2) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
Balance at beginning of period | $ | ( | $ | $ | ( | ||||||||||||
Other comprehensive income (loss), before reclassifications | ( | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||||||
Current period other comprehensive income (loss), before tax | ( | ||||||||||||||||
Income tax (expense) benefit | ( | ( | |||||||||||||||
Current period other comprehensive income (loss), net of tax | ( | ||||||||||||||||
Balance at end of period | $ | ( | $ | $ | ( |
Nine Months Ended September 30, 2023 | |||||||||||||||||
(dollars in thousands) | Unrealized Gains (Losses) on Securities (1) | Unrecognized Net Pension and Postretirement Costs (2) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
Balance at beginning of period | $ | ( | $ | $ | ( | ||||||||||||
Other comprehensive income (loss), before reclassifications | ( | ( | ( | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||
Current period other comprehensive income (loss), before tax | ( | ( | ( | ||||||||||||||
Income tax (expense) benefit | |||||||||||||||||
Current period other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||
Balance at end of period | $ | ( | $ | $ | ( |
RSUs | |||||||||||
(dollars in thousands, except per share amounts) | Quantity | Weighted-Average Grant Date Fair Value Per share | |||||||||
Non-vested at January 1, 2024 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | |||||||||||
Non-vested at September 30, 2024 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Payroll taxes | $ | $ | $ | $ | |||||||||||||||||||
Medical plans | |||||||||||||||||||||||
401(k) match and profit sharing | |||||||||||||||||||||||
Periodic pension cost | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total employee benefits | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Service cost - benefits earned during the year | $ | $ | $ | $ | |||||||||||||||||||
Interest costs on projected benefit obligations (a) | |||||||||||||||||||||||
Expected return on plan assets (a) | ( | ( | ( | ( | |||||||||||||||||||
Expected administrative expenses | |||||||||||||||||||||||
Amortization of unrecognized net gain (a) | ( | ( | ( | ( | |||||||||||||||||||
Net periodic pension income | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Basic and Diluted Earnings Per Share: | |||||||||||||||||||||||
Net income available to shareholders | $ | $ | $ | $ | |||||||||||||||||||
Basic weighted-average shares outstanding | |||||||||||||||||||||||
Effect of dilutive equity-based awards | |||||||||||||||||||||||
Diluted weighted-average shares outstanding | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ |
Fair Value Measurements | |||||||||||||||||||||||
(dollars in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
U.S. government and federal agency obligations | $ | $ | $ | $ | |||||||||||||||||||
U.S. government-sponsored enterprises | |||||||||||||||||||||||
Obligations of states and political subdivisions | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
Other debt securities | |||||||||||||||||||||||
Bank-issued trust preferred securities | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
U.S. Treasury | $ | $ | $ | $ | |||||||||||||||||||
U.S. government and federal agency obligations | |||||||||||||||||||||||
U.S. government-sponsored enterprises | |||||||||||||||||||||||
Obligations of states and political subdivisions | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
Other debt securities | |||||||||||||||||||||||
Bank-issued trust preferred securities | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Mortgage servicing rights | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate lock commitments | $ | $ | $ | $ | |||||||||||||||||||
Forward sale commitments | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Mortgage Servicing Rights | Interest Rate Lock Commitments | ||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Total gains or (losses) (realized/unrealized): | |||||||||||||||||||||||
Included in earnings | ( | ( | ( | ( | |||||||||||||||||||
Included in other comprehensive income | |||||||||||||||||||||||
Purchases | |||||||||||||||||||||||
Sales | ( | ( | ( | ||||||||||||||||||||
Issues | |||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Three Months Ended September 30, Total Gains (Losses)* | Nine Months Ended September 30, Total Gains (Losses)* | |||||||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||||||||||||||||||||
Commercial, financial, & agricultural | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||
Real estate construction − residential | |||||||||||||||||||||||||||||||||||
Real estate mortgage - residential | ( | ||||||||||||||||||||||||||||||||||
Real estate mortgage - commercial | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||
Other real estate and repossessed assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||||||||||||||||||||
Real estate mortgage - residential | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Real estate mortgage - commercial | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||
Other real estate and repossessed assets | $ | $ | $ | $ | $ | ( | $ | ( |
September 30, 2024 | |||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
September 30, 2024 | Quoted Prices in Active Markets for Identical Assets | Other Observable Inputs | Net Significant Unobservable Inputs | ||||||||||||||||||||||||||
(dollars in thousands) | Carrying amount | Fair value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal funds sold and overnight interest-bearing deposits | |||||||||||||||||||||||||||||
Certificates of deposit in other banks | |||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||
Other investment securities | |||||||||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Non-interest bearing demand | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Savings, interest checking and money market | |||||||||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||||||||
FHLB advances and other borrowings | |||||||||||||||||||||||||||||
Subordinated notes | |||||||||||||||||||||||||||||
Accrued interest payable | |||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
December 31, 2023 | Quoted Prices in Active Markets for Identical Assets | Other Observable Inputs | Net Significant Unobservable Inputs | ||||||||||||||||||||||||||
(dollars in thousands) | Carrying amount | Fair value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal funds sold and overnight interest-bearing deposits | |||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||
Other investment securities | |||||||||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Non-interest bearing demand | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Savings, interest checking and money market | |||||||||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||||||||
FHLB advances and other borrowings | |||||||||||||||||||||||||||||
Subordinated notes | |||||||||||||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||||||||
Forward sale commitments | |||||||||||||||||||||||||||||
Accrued interest payable | |||||||||||||||||||||||||||||
(dollars in thousands) | September 30, 2024 | December 31, 2023 | |||||||||
Commitments to extend credit | $ | $ | |||||||||
Interest rate lock commitments | |||||||||||
Forward sale commitments | |||||||||||
Standby letters of credit | |||||||||||
Total | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net interest income | $ | 14,327 | $ | 15,147 | $ | 43,246 | $ | 43,297 | |||||||||||||||
Provision for credit losses on loans & unfunded commitments | 500 | 110 | 726 | 790 | |||||||||||||||||||
Non-interest income | 3,783 | 606 | 10,798 | 5,384 | |||||||||||||||||||
Investment securities gains (losses), net | 8 | 3 | (7) | 18 | |||||||||||||||||||
Non-interest expense | 11,994 | 12,569 | 36,603 | 37,772 | |||||||||||||||||||
Income before income taxes | 5,624 | 3,077 | 16,708 | 10,137 | |||||||||||||||||||
Income tax expense | 1,050 | 498 | 3,049 | 1,738 | |||||||||||||||||||
Net income | $ | 4,574 | $ | 2,579 | $ | 13,659 | $ | 8,399 | |||||||||||||||
Basic earnings per share | $ | 0.66 | $ | 0.36 | $ | 1.95 | $ | 1.19 | |||||||||||||||
Diluted earnings per share | $ | 0.66 | $ | 0.36 | $ | 1.95 | $ | 1.19 | |||||||||||||||
Efficiency ratio (1) | 66.23% | 79.79% | 67.73% | 79.79% | |||||||||||||||||||
Net interest margin (FTE) | 3.36% | 3.35% | 3.36% | 3.23% | |||||||||||||||||||
As of and for the Three Months Ended | As of and for the Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
(dollars in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Key financial ratios | ||||||||||||||||||||||||||
Book value per share (2) | $ | 20.91 | $ | 16.82 | ||||||||||||||||||||||
Market price per share | $ | 25.03 | $ | 16.25 | ||||||||||||||||||||||
Cash dividends paid on common stock | $ | 1,194 | $ | 1,151 | $ | 3,720 | $ | 3,452 | ||||||||||||||||||
Return on total assets | 1.00% | 0.54% | 1.00% | 0.59% | ||||||||||||||||||||||
Return on stockholders' equity | 12.87% | 8.05% | 13.24% | 8.73% | ||||||||||||||||||||||
Average stockholders' equity to total assets | 7.80% | 6.73% | 7.54% | 6.78% | ||||||||||||||||||||||
Capital Ratios | ||||||||||||||||||||||||||
Stockholders' equity to assets | 8.09% | 6.30% | ||||||||||||||||||||||||
Total risk-based capital ratio | 14.91% | 14.20% | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio | 13.66% | 12.54% | ||||||||||||||||||||||||
Common equity Tier 1 capital | 10.53% | 10.09% | ||||||||||||||||||||||||
Tier 1 leverage ratio (1) | 11.33% | 10.43% | ||||||||||||||||||||||||
Asset Quality | ||||||||||||||||||||||||||
Net loan charge-offs | $ | 636 | $ | 74 | $ | 2,682 | $ | 34 | ||||||||||||||||||
Non-performing assets | $ | 8,451 | $ | 7,411 | ||||||||||||||||||||||
Classified assets | $ | 13,496 | $ | 33,342 | ||||||||||||||||||||||
Non-performing loans to total loans | 0.28% | 0.25% | ||||||||||||||||||||||||
Non-performing assets to total loans | 0.58% | 0.48% | ||||||||||||||||||||||||
Allowance for credit losses to total loans | 1.50% | 1.44% | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense (1) | Rate Earned/ Paid (1) | Average Balance | Interest Income/ Expense (1) | Rate Earned/ Paid (1) | ||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Loans: (2) | ||||||||||||||||||||||||||||||||
Commercial | $ | 210,783 | $ | 3,592 | 6.78% | $ | 232,516 | $ | 3,761 | 6.42% | ||||||||||||||||||||||
Real estate construction - residential | 35,611 | 717 | 8.01 | 55,289 | 1,028 | 7.38 | ||||||||||||||||||||||||||
Real estate construction - commercial | 61,546 | 1,269 | 8.20 | 129,284 | 1,899 | 5.83 | ||||||||||||||||||||||||||
Real estate mortgage - residential | 369,068 | 5,235 | 5.64 | 376,209 | 5,185 | 5.47 | ||||||||||||||||||||||||||
Real estate mortgage - commercial | 792,668 | 10,727 | 5.38 | 739,225 | 10,054 | 5.40 | ||||||||||||||||||||||||||
Installment and other consumer | 15,977 | 235 | 5.85 | 22,176 | 279 | 4.99 | ||||||||||||||||||||||||||
Total loans | $ | 1,485,653 | $ | 21,775 | 5.83% | $ | 1,554,699 | $ | 22,206 | 5.67% | ||||||||||||||||||||||
Loans held for sale | 610 | 13 | 8.48 | 6,351 | 59 | 3.69 | ||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||
U.S. Treasury | — | — | — | 4,861 | 52 | 4.24 | ||||||||||||||||||||||||||
U.S. government and federal agency obligations | 13,218 | 140 | 4.21 | 25,498 | 103 | 1.60 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 103,790 | 745 | 2.86 | 108,022 | 814 | 2.99 | ||||||||||||||||||||||||||
Mortgage-backed securities | 61,907 | 530 | 3.41 | 97,274 | 514 | 2.10 | ||||||||||||||||||||||||||
Other debt securities | 13,335 | 191 | 5.70 | 11,566 | 176 | 6.04 | ||||||||||||||||||||||||||
Total investment securities | $ | 192,250 | $ | 1,606 | 3.32% | $ | 247,221 | $ | 1,659 | 2.66% | ||||||||||||||||||||||
Other investment securities | 5,844 | 141 | 9.60 | 7,713 | 121 | 6.22 | ||||||||||||||||||||||||||
Interest bearing deposits in other financial institutions | 34,099 | 469 | 5.47 | 7,071 | 85 | 4.77 | ||||||||||||||||||||||||||
Total interest earning assets | $ | 1,718,456 | $ | 24,004 | 5.56% | $ | 1,823,055 | $ | 24,130 | 5.25% | ||||||||||||||||||||||
All other assets | 117,429 | 89,017 | ||||||||||||||||||||||||||||||
Allowance for credit losses | (21,923) | (22,356) | ||||||||||||||||||||||||||||||
Total assets | $ | 1,813,962 | $ | 1,889,716 | ||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Savings | $ | 273,470 | $ | 1,612 | 2.35% | $ | 178,564 | $ | 229 | 0.51% | ||||||||||||||||||||||
NOW accounts | 190,084 | 677 | 1.42 | 182,487 | 464 | 1.01 | ||||||||||||||||||||||||||
Interest checking | 121,423 | 1,372 | 4.50 | 187,732 | 2,252 | 4.76 | ||||||||||||||||||||||||||
Money market | 221,794 | 1,249 | 2.24 | 273,655 | 1,521 | 2.21 | ||||||||||||||||||||||||||
Time deposits | 319,279 | 2,834 | 3.53 | 315,332 | 2,173 | 2.73 | ||||||||||||||||||||||||||
Total interest bearing deposits | $ | 1,126,050 | $ | 7,744 | 2.74% | $ | 1,137,770 | $ | 6,639 | 2.32% | ||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 29 | — | — | 6,136 | 38 | 2.46 | ||||||||||||||||||||||||||
Federal Home Loan Bank advances and other borrowings | 99,293 | 759 | 3.04 | 129,758 | 1,075 | 3.29 | ||||||||||||||||||||||||||
Subordinated notes | 49,486 | 989 | 7.95 | 49,486 | 989 | 7.93 | ||||||||||||||||||||||||||
Total borrowings | $ | 148,808 | $ | 1,748 | 4.67% | $ | 185,380 | $ | 2,102 | 4.50% | ||||||||||||||||||||||
Total interest bearing liabilities | $ | 1,274,858 | $ | 9,492 | 2.96% | $ | 1,323,150 | $ | 8,741 | 2.62% | ||||||||||||||||||||||
Demand deposits | 385,298 | 426,052 | ||||||||||||||||||||||||||||||
Other liabilities | 12,375 | 13,361 | ||||||||||||||||||||||||||||||
Total liabilities | $ | 1,672,531 | $ | 1,762,563 | ||||||||||||||||||||||||||||
Stockholders' equity | 141,431 | 127,153 | ||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,813,962 | $ | 1,889,716 | ||||||||||||||||||||||||||||
Net interest income (FTE) | $ | 14,512 | $ | 15,389 | ||||||||||||||||||||||||||||
Net interest spread (FTE) | 2.59% | 2.63% | ||||||||||||||||||||||||||||||
Net interest margin (FTE) | 3.36% | 3.35% |
Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense (1) | Rate Earned/ Paid (1) | Average Balance | Interest Income/ Expense (1) | Rate Earned/ Paid (1) | ||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Loans: (2) | ||||||||||||||||||||||||||||||||
Commercial | $ | 217,576 | $ | 10,847 | 6.66% | $ | 231,691 | $ | 10,702 | 6.18% | ||||||||||||||||||||||
Real estate construction - residential | 46,247 | 2,705 | 7.81 | 47,265 | 2,514 | 7.11 | ||||||||||||||||||||||||||
Real estate construction - commercial | 70,452 | 3,788 | 7.18 | 137,776 | 5,586 | 5.42 | ||||||||||||||||||||||||||
Real estate mortgage - residential | 371,072 | 15,716 | 5.66 | 368,702 | 14,524 | 5.27 | ||||||||||||||||||||||||||
Real estate mortgage - commercial | 783,960 | 31,328 | 5.34 | 735,539 | 27,257 | 4.95 | ||||||||||||||||||||||||||
Installment and other consumer | 17,916 | 780 | 5.82 | 22,622 | 763 | 4.51 | ||||||||||||||||||||||||||
Total loans | $ | 1,507,223 | $ | 65,164 | 5.78% | $ | 1,543,595 | $ | 61,346 | 5.31% | ||||||||||||||||||||||
Loans held for sale | 1,841 | 80 | 5.80 | 3,837 | 119 | 4.15 | ||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||
U.S. Treasury | 656 | 26 | 5.29 | 4,391 | 133 | 4.05 | ||||||||||||||||||||||||||
U.S. government and federal agency obligations | 14,994 | 502 | 4.47 | 25,406 | 305 | 1.61 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 103,687 | 2,256 | 2.91 | 109,994 | 2,587 | 3.14 | ||||||||||||||||||||||||||
Mortgage-backed securities | 54,356 | 1,270 | 3.12 | 101,126 | 1,565 | 2.07 | ||||||||||||||||||||||||||
Other debt securities | 12,640 | 550 | 5.81 | 11,826 | 520 | 5.88 | ||||||||||||||||||||||||||
Total investment securities | $ | 186,333 | $ | 4,604 | 3.30% | $ | 252,743 | $ | 5,110 | 2.70% | ||||||||||||||||||||||
Other investment securities | 6,126 | 428 | 9.33 | 7,015 | 321 | 6.12 | ||||||||||||||||||||||||||
Interest bearing deposits in other financial institutions | 41,149 | 1,732 | 5.62 | 20,602 | 726 | 4.71 | ||||||||||||||||||||||||||
Total interest earning assets | $ | 1,742,672 | $ | 72,008 | 5.52% | $ | 1,827,792 | $ | 67,622 | 4.95% | ||||||||||||||||||||||
All other assets | 109,477 | 89,524 | ||||||||||||||||||||||||||||||
Allowance for credit losses | (23,132) | (20,124) | ||||||||||||||||||||||||||||||
Total assets | $ | 1,829,017 | $ | 1,897,192 | ||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Savings | $ | 249,594 | $ | 3,912 | 2.09% | $ | 172,639 | $ | 259 | 0.20% | ||||||||||||||||||||||
NOW accounts | 197,898 | 2,084 | 1.41 | 196,084 | 1,485 | 1.01 | ||||||||||||||||||||||||||
Interest checking | 128,420 | 4,359 | 4.53 | 170,057 | 5,741 | 4.51 | ||||||||||||||||||||||||||
Money market | 226,115 | 3,679 | 2.17 | 293,842 | 4,476 | 2.04 | ||||||||||||||||||||||||||
Time deposits | 333,923 | 8,744 | 3.50 | 325,002 | 6,208 | 2.55 | ||||||||||||||||||||||||||
Total interest bearing deposits | $ | 1,135,950 | $ | 22,778 | 2.68% | $ | 1,157,624 | $ | 18,169 | 2.10% | ||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 10 | 1 | 13.36 | 5,525 | 83 | 2.01 | ||||||||||||||||||||||||||
Federal Home Loan Bank advances and other borrowings | 105,050 | 2,438 | 3.10 | 113,167 | 2,430 | 2.87 | ||||||||||||||||||||||||||
Subordinated notes | 49,486 | 2,964 | 8.00 | 49,486 | 2,769 | 7.48 | ||||||||||||||||||||||||||
Total borrowings | $ | 154,546 | $ | 5,403 | 4.67% | $ | 168,178 | $ | 5,282 | 4.20% | ||||||||||||||||||||||
Total interest bearing liabilities | $ | 1,290,496 | $ | 28,181 | 2.92% | $ | 1,325,802 | $ | 23,451 | 2.36% | ||||||||||||||||||||||
Demand deposits | 389,003 | 429,859 | ||||||||||||||||||||||||||||||
Other liabilities | 11,690 | 12,911 | ||||||||||||||||||||||||||||||
Total liabilities | $ | 1,691,189 | $ | 1,768,572 | ||||||||||||||||||||||||||||
Stockholders' equity | 137,828 | 128,620 | ||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,829,017 | $ | 1,897,192 | ||||||||||||||||||||||||||||
Net interest income (FTE) | $ | 43,827 | $ | 44,171 | ||||||||||||||||||||||||||||
Net interest spread (FTE) | 2.60% | 2.58% | ||||||||||||||||||||||||||||||
Net interest margin (FTE) | 3.36% | 3.23% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2024 vs. 2023 | 2024 vs. 2023 | ||||||||||||||||||||||||||||||||||
Change due to | Change due to | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Total Change | Average Volume | Average Rate | Total Change | Average Volume | Average Rate | |||||||||||||||||||||||||||||
Interest income on a fully taxable equivalent basis: (1) | |||||||||||||||||||||||||||||||||||
Loans: (2) | |||||||||||||||||||||||||||||||||||
Commercial | $ | (169) | $ | (363) | $ | 194 | $ | 145 | $ | (673) | $ | 818 | |||||||||||||||||||||||
Real estate construction - residential | (311) | (389) | 78 | 191 | (55) | 246 | |||||||||||||||||||||||||||||
Real estate construction - commercial | (630) | (1,219) | 589 | (1,798) | (3,255) | 1,457 | |||||||||||||||||||||||||||||
Real estate mortgage - residential | 50 | (99) | 149 | 1,192 | 94 | 1,098 | |||||||||||||||||||||||||||||
Real estate mortgage - commercial | 673 | 721 | (48) | 4,071 | 1,854 | 2,217 | |||||||||||||||||||||||||||||
Installment and other consumer | (44) | (86) | 42 | 17 | (178) | 195 | |||||||||||||||||||||||||||||
Loans held for sale | (46) | (82) | 36 | (39) | (76) | 37 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
U.S. Treasury | (52) | (26) | (26) | (107) | (138) | 31 | |||||||||||||||||||||||||||||
U.S. government and federal agency obligations | 37 | (68) | 105 | 197 | (166) | 363 | |||||||||||||||||||||||||||||
Obligations of states and political subdivisions | (69) | (31) | (38) | (331) | (143) | (188) | |||||||||||||||||||||||||||||
Mortgage-backed securities | 16 | (229) | 245 | (295) | (897) | 602 | |||||||||||||||||||||||||||||
Other debt securities | 15 | 26 | (11) | 30 | 35 | (5) | |||||||||||||||||||||||||||||
Other investment securities | 20 | (34) | 54 | 107 | (45) | 152 | |||||||||||||||||||||||||||||
Interest bearing deposits in other financial institutions | 384 | 369 | 15 | 1,006 | 840 | 166 | |||||||||||||||||||||||||||||
Total interest income | $ | (126) | $ | (1,510) | $ | 1,384 | $ | 4,386 | $ | (2,803) | $ | 7,189 | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Savings | $ | 1,383 | $ | 178 | $ | 1,205 | $ | 3,653 | $ | 164 | $ | 3,489 | |||||||||||||||||||||||
NOW accounts | 213 | 20 | 193 | 599 | 14 | 585 | |||||||||||||||||||||||||||||
Interest checking | (880) | (754) | (126) | (1,382) | (1,409) | 27 | |||||||||||||||||||||||||||||
Money market | (272) | (291) | 19 | (797) | (1,083) | 286 | |||||||||||||||||||||||||||||
Time deposits | 661 | 27 | 634 | 2,536 | 174 | 2,362 | |||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | (38) | (19) | (19) | (82) | (153) | 71 | |||||||||||||||||||||||||||||
FHLB advances and other borrowings | (316) | (237) | (79) | 8 | (180) | 188 | |||||||||||||||||||||||||||||
Subordinated notes | — | — | — | 195 | — | 195 | |||||||||||||||||||||||||||||
Total interest expense | $ | 751 | $ | (1,076) | $ | 1,827 | $ | 4,730 | $ | (2,473) | $ | 7,203 | |||||||||||||||||||||||
Net interest income on a FTE basis | $ | (877) | $ | (434) | $ | (443) | $ | (344) | $ | (330) | $ | (14) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | $ Change | % Change | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||||||||||
Service charges and other fees | $ | 870 | $ | 760 | $ | 110 | 14.5 | % | $ | 2,464 | $ | 2,180 | $ | 284 | 13.0 | % | |||||||||||||||||||
Bank card income and fees | 1,037 | 1,029 | 8 | 0.8 | % | 3,084 | 3,044 | 40 | 1.3 | % | |||||||||||||||||||||||||
Earnings on bank-owned life insurance | 520 | 14 | 506 | NM | 1,162 | 43 | 1,119 | NM | |||||||||||||||||||||||||||
Trust department income | 341 | 283 | 58 | 20.5 | % | 960 | 820 | 140 | 17.1 | % | |||||||||||||||||||||||||
Real estate servicing fees, net | 81 | 125 | (44) | (35.2) | % | 33 | 417 | (384) | (92.1) | % | |||||||||||||||||||||||||
Gain on sales of mortgage loans, net | 111 | 851 | (740) | (87.0) | % | 786 | 2,014 | (1,228) | (61.0) | % | |||||||||||||||||||||||||
Gains (losses) on other real estate owned, net | 262 | (2,809) | 3,071 | (109.3) | % | 751 | (4,592) | 5,343 | (116.4) | % | |||||||||||||||||||||||||
Other | 561 | 353 | 208 | 58.9 | % | 1,558 | 1,458 | 100 | 6.9 | % | |||||||||||||||||||||||||
Total non-interest income | $ | 3,783 | $ | 606 | $ | 3,177 | 524.3 | % | $ | 10,798 | $ | 5,384 | $ | 5,414 | 100.6 | % | |||||||||||||||||||
Non-interest income as a % of total revenue * | 20.9 | % | 3.8 | % | 20.0 | % | 11.1 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | $ Change | % Change | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||||||||||
Salaries | $ | 5,115 | $ | 5,719 | $ | (604) | (10.6)% | $ | 15,756 | $ | 16,763 | $ | (1007) | (6.0)% | |||||||||||||||||||||
Employee benefits | 1,424 | 1,405 | 19 | 1.4 | 4,237 | 4,215 | 22 | 0.5 | |||||||||||||||||||||||||||
Occupancy expense, net | 843 | 842 | 1 | 0.1 | 2,364 | 2,437 | (73) | (3.0) | |||||||||||||||||||||||||||
Furniture and equipment expense | 787 | 768 | 19 | 2.5 | 2,266 | 2,236 | 30 | 1.3 | |||||||||||||||||||||||||||
Processing, network and bank card expense | 1,480 | 1,320 | 160 | 12.1 | 4,212 | 3,797 | 415 | 10.9 | |||||||||||||||||||||||||||
Legal, examination, and professional fees | 378 | 499 | (121) | (24.2) | 1,713 | 1,447 | 266 | 18.4 | |||||||||||||||||||||||||||
Advertising and promotion | 198 | 375 | (177) | (47.2) | 711 | 1,084 | (373) | (34.4) | |||||||||||||||||||||||||||
Postage, printing, and supplies | 215 | 248 | (33) | (13.3) | 571 | 621 | (50) | (8.1) | |||||||||||||||||||||||||||
Loan expense | 126 | 147 | (21) | (14.3) | 515 | 771 | (256) | (33.2) | |||||||||||||||||||||||||||
Other | 1,428 | 1,246 | 182 | 14.6 | 4,258 | 4,401 | (143) | (3.2) | |||||||||||||||||||||||||||
Total non-interest expense | $ | 11,994 | $ | 12,569 | $ | (575) | (4.6)% | $ | 36,603 | $ | 37,772 | $ | (1,169) | (3.1)% | |||||||||||||||||||||
Efficiency ratio* | 66.2 | % | 79.8 | % | 67.7 | % | 77.6 | % | |||||||||||||||||||||||||||
Number of full-time equivalent employees | 268 | 312 | 268 | 312 |
September 30, 2024 | December 31, 2023 | ||||||||||||||||
(dollars in thousands) | Amount | % of Loans | Amount | % of Loans | |||||||||||||
Commercial, financial, and agricultural | $ | 202,341 | 13.8 | % | $ | 226,275 | 14.7 | % | |||||||||
Real estate construction − residential | 32,344 | 2.2 | 58,347 | 3.8 | |||||||||||||
Real estate construction − commercial | 65,432 | 4.5 | 130,296 | 8.5 | |||||||||||||
Real estate mortgage − residential | 369,103 | 25.2 | 372,391 | 24.2 | |||||||||||||
Real estate mortgage − commercial | 782,487 | 53.3 | 731,024 | 47.5 | |||||||||||||
Installment and other consumer | 15,044 | 1.0 | 20,814 | 1.3 | |||||||||||||
Total loans held for investment | $ | 1,466,751 | 100.0 | % | $ | 1,539,147 | 100.0 | % |
September 30, 2024 | December 31, 2023 | ||||||||||||||||
(dollars in thousands) | Amount | % of Loans | Amount | % of Loans | |||||||||||||
Multi Family | $ | 198,237 | 31.9 | % | $ | 144,254 | 22.4 | % | |||||||||
Retail | 162,205 | 26.0 | 157,890 | 24.6 | |||||||||||||
Hotel & Food Service | 71,283 | 11.5 | 66,244 | 10.3 | |||||||||||||
Office Buildings | 47,957 | 7.7 | 49,991 | 7.8 | |||||||||||||
1-4 Family Construction | 32,344 | 5.2 | 58,347 | 9.0 | |||||||||||||
Other Construction | 31,642 | 5.0 | 33,807 | 5.3 | |||||||||||||
Other Real Estate | 26,392 | 4.2 | 21,445 | 3.3 | |||||||||||||
Industrial | 18,589 | 3.0 | 14,741 | 2.3 | |||||||||||||
Residential Building Construction | 18,390 | 3.0 | 29,149 | 4.5 | |||||||||||||
Commercial and Institutional Building Construction | 10,332 | 1.7 | 24,778 | 3.9 | |||||||||||||
Land Subdivision | 5,068 | 0.8 | 42,561 | 6.6 | |||||||||||||
Total Commercial Real Estate - Non Owner Occupied | $ | 622,439 | 100.0 | % | $ | 643,207 | 100.0 | % |
September 30, | December 31, | ||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Non-accrual loans: | |||||||||||
Commercial, financial, and agricultural | $ | 1,879 | $ | 2,228 | |||||||
Real estate construction − residential | 454 | 432 | |||||||||
Real estate construction − commercial | 55 | 69 | |||||||||
Real estate mortgage − residential | 1,113 | 587 | |||||||||
Real estate mortgage − commercial | 179 | 2,978 | |||||||||
Installment and other consumer | 11 | — | |||||||||
Total | $ | 3,691 | $ | 6,294 | |||||||
Loans contractually past - due 90 days or more and still accruing: | |||||||||||
Real estate mortgage − residential | $ | 373 | $ | 115 | |||||||
Installment and other consumer | 2 | 4 | |||||||||
Total | $ | 375 | $ | 119 | |||||||
Total non-performing loans (a) | 4,066 | 6,413 | |||||||||
Other real estate owned and repossessed assets | 4,385 | 1,744 | |||||||||
Total non-performing assets (b) | $ | 8,451 | $ | 8,157 | |||||||
Loans held for investment | $ | 1,466,751 | $ | 1,539,147 | |||||||
Allowance for credit losses on loans | $ | 21,937 | $ | 23,744 | |||||||
Allowance for credit losses to loans | 1.50 | % | 1.54 | % | |||||||
Non-accrual loans to total loans | 0.25 | % | 0.41 | % | |||||||
Non-performing loans to loans (a) | 0.28 | % | 0.42 | % | |||||||
Non-performing assets to loans (b) | 0.58 | % | 0.53 | % | |||||||
Non-performing assets to assets (b) | 0.47 | % | 0.43 | % | |||||||
Allowance for credit losses to non-accrual loans | 594.34 | % | 377.25 | % | |||||||
Allowance for credit losses to non-performing loans | 539.52 | % | 370.25 | % |
September 30, 2024 | December 31, 2023 | ||||||||||||||||
(dollars in thousands) | Amount | % of loans in each category to total loans | Amount | % of loans in each category to total loans | |||||||||||||
Allocation of allowance for credit losses at end of period: | |||||||||||||||||
Commercial, financial, and agricultural | $ | 1,630 | 13.8 | % | $ | 3,208 | 14.7 | % | |||||||||
Real estate construction − residential | 586 | 2.2 | 1,043 | 3.8 | |||||||||||||
Real estate construction − commercial | 1,824 | 4.5 | 3,273 | 8.5 | |||||||||||||
Real estate mortgage − residential | 5,282 | 25.2 | 5,264 | 24.2 | |||||||||||||
Real estate mortgage − commercial | 12,634 | 53.3 | 10,537 | 47.5 | |||||||||||||
Installment and other consumer | 146 | 1.0 | 232 | 1.3 | |||||||||||||
Unallocated | (165) | — | 187 | — | |||||||||||||
Total | $ | 21,937 | 100.0 | % | $ | 23,744 | 100.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Provision for credit losses on loans | $ | 593 | $ | 300 | $ | 875 | $ | 1,115 | |||||||||||||||
Provision for (release of) credit losses for off-balance sheet commitments | (93) | (190) | (149) | (325) | |||||||||||||||||||
Total provision for credit losses | $ | 500 | $ | 110 | $ | 726 | $ | 790 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | (Net Charge-offs) Recoveries | Average Loans | Net (Charge-offs) Recoveries / Average Loans | (Net Charge-offs) Recoveries | Average Loans | Net (Charge-offs) Recoveries / Average Loans | |||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | (254) | $ | 210,783 | (0.12) | % | $ | (7) | $ | 232,516 | — | % | |||||||||||||||||||||||
Real estate construction − residential | — | 35,611 | — | — | 55,289 | — | |||||||||||||||||||||||||||||
Real estate construction − commercial | — | 61,546 | — | — | 129,284 | — | |||||||||||||||||||||||||||||
Real estate mortgage − residential | 7 | 369,068 | — | 2 | 376,209 | — | |||||||||||||||||||||||||||||
Real estate mortgage − commercial | (343) | 792,668 | (0.04) | (2) | 739,225 | — | |||||||||||||||||||||||||||||
Installment and other consumer | (46) | 15,977 | (0.29) | (67) | 22,176 | (0.30) | |||||||||||||||||||||||||||||
Total | $ | (636) | $ | 1,485,653 | (0.04) | % | $ | (74) | $ | 1,554,699 | — | % | |||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | (Net Charge-offs) Recoveries | Average Loans | Net (Charge-offs) Recoveries / Average Loans | (Net Charge-offs) Recoveries | Average Loans | Net (Charge-offs) Recoveries / Average Loans | |||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | (2,122) | $ | 217,576 | (0.98) | % | $ | 124 | $ | 231,691 | 0.05 | % | |||||||||||||||||||||||
Real estate construction − residential | — | 46,247 | — | — | 47,265 | — | |||||||||||||||||||||||||||||
Real estate construction − commercial | — | 70,452 | — | — | 137,776 | — | |||||||||||||||||||||||||||||
Real estate mortgage − residential | (11) | 371,072 | — | 6 | 368,702 | — | |||||||||||||||||||||||||||||
Real estate mortgage − commercial | (433) | 783,960 | (0.06) | (25) | 735,539 | — | |||||||||||||||||||||||||||||
Installment and other consumer | (116) | 17,916 | (0.65) | (139) | 22,622 | (0.61) | |||||||||||||||||||||||||||||
Total | $ | (2,682) | $ | 1,507,223 | (0.18) | % | $ | (34) | $ | 1,543,595 | — | % |
(dollars in thousands) | September 30, 2024 | December 31, 2023 | |||||||||
Other interest-bearing deposits | $ | 34,813 | $ | 77,775 | |||||||
Certificates of deposit in other banks | 1,000 | — | |||||||||
Available-for-sale investment securities | 203,292 | 188,742 | |||||||||
Total | $ | 239,105 | $ | 266,517 |
(dollars in thousands) | September 30, 2024 | December 31, 2023 | |||||||||
Federal Reserve Bank borrowings | $ | 9,001 | $ | 9,048 | |||||||
Other deposits | 75,885 | 80,175 | |||||||||
Total pledged, at fair value | $ | 84,886 | $ | 89,223 |
(dollars in thousands) | September 30, 2024 | December 31, 2023 | |||||||||
Non-interest bearing demand | $ | 390,639 | $ | 402,241 | |||||||
Interest checking | 313,557 | 387,242 | |||||||||
Savings and money market | 498,387 | 459,049 | |||||||||
Other time deposits | 203,135 | 214,004 | |||||||||
Total | $ | 1,405,718 | $ | 1,462,536 |
(dollars in thousands) | September 30, 2024 | December 31, 2023 | |||||||||
Federal Home Loan Bank advances | $ | 96,425 | $ | 107,000 | |||||||
Other borrowings | 100 | — | |||||||||
Subordinated notes | 49,486 | 49,486 | |||||||||
Total | $ | 146,011 | $ | 156,486 |
September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | FHLB | Federal Reserve Bank | Federal Funds Purchased Lines | Total | FHLB | Federal Reserve Bank | Federal Funds Purchased Lines | Total | |||||||||||||||||||||||||||||||||||||||
Advance equivalent | $ | 421,917 | $ | 8,530 | $ | 35,000 | $ | 465,447 | $ | 425,367 | $ | 8,563 | $ | 35,000 | $ | 468,930 | |||||||||||||||||||||||||||||||
Letters of credit | (44,500) | — | — | (44,500) | (107,500) | — | — | (107,500) | |||||||||||||||||||||||||||||||||||||||
Advances outstanding | (96,425) | — | — | (96,425) | (107,000) | — | — | (107,000) | |||||||||||||||||||||||||||||||||||||||
Total available | $ | 280,992 | $ | 8,530 | $ | 35,000 | $ | 324,522 | $ | 210,867 | $ | 8,563 | $ | 35,000 | $ | 254,430 |
Actual | Minimum Capital Required - Basel III Fully Phased-In | Required to be Considered Well- Capitalized | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||||||||
Total Capital (to risk-weighted assets): | |||||||||||||||||||||||||||||||||||
Company | $ | 228,627 | 14.91 | % | $ | 160,988 | 10.50 | % | $ | — | N.A% | ||||||||||||||||||||||||
Bank | 218,513 | 14.14 | % | 162,284 | 10.50 | % | 154,557 | 10.00 | % | ||||||||||||||||||||||||||
Tier 1 Capital (to risk-weighted assets): | |||||||||||||||||||||||||||||||||||
Company | $ | 209,459 | 13.66 | % | $ | 130,324 | 8.50 | % | $ | — | N.A% | ||||||||||||||||||||||||
Bank | 199,193 | 12.89 | % | 131,373 | 8.50 | % | 123,645 | 8.00 | % | ||||||||||||||||||||||||||
Common Equity Tier 1 Capital (to risk-weighted assets): | |||||||||||||||||||||||||||||||||||
Company | $ | 161,459 | 10.53 | % | $ | 107,326 | 7.00 | % | $ | — | N.A% | ||||||||||||||||||||||||
Bank | 199,193 | 12.89 | % | 108,190 | 7.00 | % | 100,462 | 6.50 | % | ||||||||||||||||||||||||||
Tier 1 leverage ratio (to adjusted average assets): | |||||||||||||||||||||||||||||||||||
Company | $ | 209,459 | 11.33 | % | $ | 73,924 | 4.00 | % | $ | — | N.A% | ||||||||||||||||||||||||
Bank | 199,193 | 10.84 | % | 73,517 | 4.00 | % | 91,896 | 5.00 | % | ||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Total Capital (to risk-weighted assets): | |||||||||||||||||||||||||||||||||||
Company | $ | 221,586 | 13.99 | % | $ | 166,266 | 10.50 | % | $ | — | N.A% | ||||||||||||||||||||||||
Bank | 219,043 | 13.91 | % | 165,369 | 10.50 | % | 157,494 | 10.00 | % | ||||||||||||||||||||||||||
Tier 1 Capital (to risk-weighted assets): | |||||||||||||||||||||||||||||||||||
Company | $ | 199,395 | 12.59 | % | $ | 134,596 | 8.50 | % | $ | — | N.A% | ||||||||||||||||||||||||
Bank | 199,490 | 12.67 | % | 133,870 | 8.50 | % | 125,995 | 8.00 | % | ||||||||||||||||||||||||||
Common Equity Tier 1 Capital (to risk-weighted assets): | |||||||||||||||||||||||||||||||||||
Company | $ | 154,033 | 9.73 | % | $ | 110,844 | 7.00 | % | $ | — | N.A% | ||||||||||||||||||||||||
Bank | 199,490 | 12.67 | % | 110,246 | 7.00 | % | 102,371 | 6.50 | % | ||||||||||||||||||||||||||
Tier 1 leverage ratio: | |||||||||||||||||||||||||||||||||||
Company | $ | 199,395 | 10.29 | % | $ | 77,492 | 4.00 | % | $ | — | N.A% | ||||||||||||||||||||||||
Bank | 199,490 | 10.31 | % | 77,411 | 4.00 | % | 96,763 | 5.00 | % |
% Change in projected net interest income | ||||||||||||||
Hypothetical shift in interest rates | September 30, | December 31, | ||||||||||||
(bps) | 2024 | 2023 | ||||||||||||
200 | (1.48)% | (1.57)% | ||||||||||||
100 | (0.59)% | (0.38)% | ||||||||||||
(100) | (0.20) | % | 0.51 | % | ||||||||||
(200) | (1.60) | % | 0.49 | % |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs * | ||||||||||||||||||||||
July 2024 | 5,000 | $ | 19.93 | 5,000 | $ | 3,894,221 | ||||||||||||||||||||
August 2024 | — | $ | — | — | $ | 3,894,221 | ||||||||||||||||||||
September 2024 | — | $ | — | — | $ | 3,894,221 | ||||||||||||||||||||
Total | 5,000 | $ | 19.93 | 5,000 | $ | 3,894,221 |
Exhibit No. | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
HAWTHORN BANCSHARES, INC. | |||||
Date | |||||
/s/ Brent M. Giles | |||||
November 14, 2024 | Brent M. Giles, Chief Executive Officer (Principal Executive Officer) | ||||
/s/ Chris E. Hafner | |||||
November 14, 2024 | Chris E. Hafner, Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | ||||
Date: November 14, 2024 | |||||
/s/ Brent M. Giles | |||||
Brent M. Giles | |||||
Chief Executive Officer (Principal Executive Officer) |
Date: November 14, 2024 | |||||
/s/ Chris E. Hafner | |||||
Chris E. Hafner | |||||
Chief Financial Officer |
Dated: November 14, 2024 | |||||
/s/ Brent M. Giles | |||||
Brent M. Giles | |||||
Chief Executive Officer (Principal Executive Officer) |
Dated: November 14, 2024 | |||||
/s/ Chris E. Hafner | |||||
Chris E. Hafner | |||||
Chief Financial Officer |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 7,554,893 | 7,554,893 |
Treasury stock, common, shares (in shares) | 568,170 | 515,570 |
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,574 | $ 2,579 | $ 13,659 | $ 8,399 |
Investment securities available-for-sale: | ||||
Change in unrealized gains (losses) on investment securities available-for-sale, net of tax | 5,174 | (9,325) | 1,976 | (7,948) |
Defined benefit pension plans: | ||||
Amortization of net gains included in net periodic pension cost, net of tax | (136) | (126) | (409) | (379) |
Total other comprehensive income (loss) | 5,038 | (9,451) | 1,567 | (8,327) |
Total comprehensive income (loss) | $ 9,612 | $ (6,872) | $ 15,226 | $ 72 |
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands |
Total |
Adoption of ASU 2016-13 |
Balance, January 01, 2023 |
Common Stock |
Common Stock
Balance, January 01, 2023
|
Surplus |
Surplus
Balance, January 01, 2023
|
Retained Earnings |
Retained Earnings
Adoption of ASU 2016-13
|
Retained Earnings
Balance, January 01, 2023
|
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Balance, January 01, 2023
|
Treasury Stock |
Treasury Stock
Balance, January 01, 2023
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at beginning of period at Dec. 31, 2022 | $ 127,411 | $ (5,581) | $ 121,830 | $ 7,284 | $ 7,284 | $ 71,042 | $ 71,042 | $ 91,789 | $ (5,581) | $ 86,208 | $ (31,714) | $ (31,714) | $ (10,990) | $ (10,990) |
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 8,399 | 8,399 | ||||||||||||
Other comprehensive income (loss) | (8,327) | (8,327) | ||||||||||||
Stock dividend | 0 | 271 | 5,734 | (6,005) | ||||||||||
Cash dividends declared, common stock | (3,498) | (3,498) | ||||||||||||
Balance at end of period at Sep. 30, 2023 | 118,404 | 7,555 | 76,776 | 85,104 | (40,041) | (10,990) | ||||||||
Balance at beginning of period at Jun. 30, 2023 | 126,473 | 7,284 | 77,047 | 83,722 | (30,590) | (10,990) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 2,579 | 2,579 | ||||||||||||
Other comprehensive income (loss) | (9,451) | (9,451) | ||||||||||||
Stock dividend | 0 | 271 | (271) | |||||||||||
Cash dividends declared, common stock | (1,197) | (1,197) | ||||||||||||
Balance at end of period at Sep. 30, 2023 | 118,404 | 7,555 | 76,776 | 85,104 | (40,041) | (10,990) | ||||||||
Balance at beginning of period at Dec. 31, 2023 | 136,085 | 7,555 | 76,818 | 76,464 | (13,762) | (10,990) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 13,659 | 13,659 | ||||||||||||
Other comprehensive income (loss) | 1,567 | 1,567 | ||||||||||||
Share-based compensation expense | 119 | 119 | ||||||||||||
Purchase of treasury stock | (1,106) | (1,106) | ||||||||||||
Restricted share unit vesting and taxes paid related to net share settlement | 0 | (81) | 81 | |||||||||||
Cash dividends declared, common stock | (3,850) | (3,850) | ||||||||||||
Balance at end of period at Sep. 30, 2024 | 146,474 | 7,555 | 76,856 | 86,273 | (12,195) | (12,015) | ||||||||
Balance at beginning of period at Jun. 30, 2024 | 138,241 | 7,555 | 76,808 | 83,026 | (17,233) | (11,915) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 4,574 | 4,574 | ||||||||||||
Other comprehensive income (loss) | 5,038 | 5,038 | ||||||||||||
Share-based compensation expense | 48 | 48 | ||||||||||||
Purchase of treasury stock | (100) | (100) | ||||||||||||
Cash dividends declared, common stock | (1,327) | (1,327) | ||||||||||||
Balance at end of period at Sep. 30, 2024 | $ 146,474 | $ 7,555 | $ 76,856 | $ 86,273 | $ (12,195) | $ (12,015) |
Consolidated Statements of Stockholders' Equity (unaudited) (Parentheticals) - $ / shares |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
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Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Statement of Stockholders' Equity [Abstract] | |||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||
Common stock, dividends declared (in dollars per share) | $ 0.19 | $ 0.17 | $ 0.55 | $ 0.51 |
Summary of Significant Accounting Policies |
9 Months Ended |
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Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Hawthorn Bancshares, Inc. (the Company) through its subsidiary, Hawthorn Bank (the Bank), provides a broad range of banking services to individual and corporate customers located within the Missouri communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area. The Company is subject to competition from other financial and nonfinancial institutions that provide financial products. Additionally, the Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. The accompanying unaudited consolidated financial statements of the Company have been prepared in conformity with United States (U.S.) generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q, and Rule 10-01 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of the consolidated financial statements includes all adjustments that, in the opinion of management, are necessary in order to make those statements not misleading. Management is required to make estimates and assumptions, including the determination of the allowance for credit losses, real estate acquired in connection with foreclosure or in satisfaction of loans, and fair values of investment securities available-for-sale that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s management has evaluated and did not identify any subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements other than mentioned below.
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Loans and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Loans Major classifications within the Company’s loans held for investment portfolio at September 30, 2024 and December 31, 2023 were as follows:
The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the Missouri communities surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area. As such, the Bank is susceptible to changes in the economic environment in these communities. The Bank does not have a concentration of credit in any one economic sector. Accrued interest on loans totaled $6.8 million and $7.2 million at September 30, 2024 and December 31, 2023, respectively, and is included in accrued interest receivable and other assets on the Company's consolidated balance sheets. The total amount of accrued interest is excluded from the amortized cost basis of loans presented above. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable. At September 30, 2024, loans of $720.7 million were pledged to the Federal Home Loan Bank (FHLB) as collateral for borrowings and letters of credit. Allowance for Credit Losses The allowance for credit losses is measured using a lifetime expected loss model that incorporates relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis. The allowance for credit losses is a valuation account that is deducted from loans amortized cost basis to present the net amount expected to be collected on the instrument. Expected recoveries are included in the allowance and do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Loans are charged off against the allowance for credit losses when management believes the balance has become uncollectible. For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using relevant peer historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and the Company's outstanding loan balances during a lookback period. The Company chose to use relevant peer loan loss data due to statistical relevance concerns, low observation counts, historical data limitations, and the inability to secure through the cycle loan-level data. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of a single macroeconomic variable, which is the civilian unemployment rate. The adjustments are based on results from various regression models projecting the impact of the selected macroeconomic variable to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast adjusted loss rate is applied to the loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals and modifications. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Agriculture loans also use the remaining life methodology for estimating life of loan losses. Additionally, the allowance for credit losses considers qualitative or environmental factors, such as: lending policies and procedures; economic conditions; the nature, volume and terms of the portfolio; lending staff and management; past due loans; the loan review system; collateral values; concentrations of credit; and external factors. Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures The Company maintains a separate allowance for credit losses for off-balance-sheet credit exposures, including unfunded loan commitments, unless the associated obligation is unconditionally cancellable by the Company. This allowance is included in other liabilities on the consolidated balance sheets with associated expense recognized as a component of the provision for credit losses on the consolidated statements of income. The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded. Sensitivity in the Allowance for Credit Loss Model The allowance for credit losses is an estimate that requires significant judgment including projections of the macroeconomic environment. The forecasted macroeconomic environment continuously changes, which can cause fluctuations in estimated expected losses. The following tables illustrate the changes in the allowance for credit losses by portfolio segment:
Collateral-Dependent loans Collateral-dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Under the CECL methodology, for collateral-dependent loans, the Company has adopted the practical expedient to measure the allowance on the fair value of collateral. The allowance is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for liquidation costs/discounts, and the loan’s amortized cost. If the fair value of the collateral exceeds the loan’s amortized cost, no allowance is necessary. The Company’s policy is to obtain appraisals on any significant pieces of collateral. Higher discounts are applied in determining fair value for real estate collateral in industries that are undergoing significant stress, or for properties that are specialized use or have limited marketability. There have been no significant changes to the types of collateral securing the Company's collateral dependent loans since December 31, 2023. The amortized cost of collateral-dependent loans by class as of September 30, 2024 and December 31, 2023 was as follows:
Credit Quality The Company categorizes loans into risk categories based upon an internal rating system reflecting management’s risk assessment. •Pass - loans that are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral. •Watch - loans that have one or more weaknesses identified that may result in the borrower being unable to meet repayment terms or when the Company’s credit position could deteriorate at some future date. •Special Mention - loans that have negative financial trends, or other weaknesses that if left uncorrected, could threaten its capacity to meet its debt obligations. This is a transitional grade that is closely monitored by management for improvement or deterioration. •Substandard - loans that are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified may have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. Such loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected. •Doubtful - loans that have all the weaknesses inherent in loans classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values. These loans are also on non-accrual status. •Non-accrual - loans that are delinquent for 90 days or more and the ultimate collectability of interest or principal is no longer probable. Real estate loans secured by one-to-four family residential properties are exempt from these non-accrual guidelines. These loans are placed on non-accrual status after they become 120 days past due (The majority of the Company's non-accrual loans have a substandard risk grade.) The following table presents the recorded investment by risk categories at September 30, 2024:
The following table presents the recorded investment by risk categories at December 31, 2023:
Delinquent and Non-Accrual Loans The delinquency status of loans is determined based on the contractual terms of the notes. Loans are generally classified as delinquent once payments become 30 days or more past due. The Company’s policy is to discontinue the accrual of interest income on any loan when, in the opinion of management, the ultimate collectability of interest or principal is no longer probable. In general, loans are placed on non-accrual status when they become 90 days or more past due. However, management considers many factors before placing a loan on non-accrual status, including the delinquency status of the loan, the overall financial condition of the borrower, the progress of management’s collection efforts and the value of the underlying collateral. Subsequent interest payments received on non-accrual loans are applied to principal if any doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial condition of the borrower indicates that the timely collectability of interest and principal is probable and the borrower demonstrates the ability to pay under the terms of the note through a sustained period of repayment performance, which is generally six months. The following table presents the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loans as of September 30, 2024 and December 31, 2023:
No material amount of interest income was recognized on non-accrual loans during the three and nine months ended September 30, 2024. The following table provides aging information for the Company’s past due and non-accrual loans at September 30, 2024 and December 31, 2023.
Loan Modifications for Borrowers Experiencing Financial Difficulty In the normal course of business, the Company may execute loan modifications with borrowers. These modifications are analyzed to determine whether the modification is considered concessionary, long-term and made to a borrower experiencing financial difficulty. The Company’s modifications generally include interest rate adjustments, principal reductions, and amortization and maturity date extensions. If a loan modification is determined to be made to a borrower experiencing financial difficulty, the loan is considered collateral-dependent and evaluated as part of the allowance for credit losses as described above in the Allowance for Credit Losses section of this note. For the three and nine months ended September 30, 2024, the Company did not modify any loans made to borrowers experiencing financial difficulty. The Company monitors loan payments on an on-going basis to determine if a loan is considered to have a payment default. Determination of payment default involves analyzing the economic conditions that exist for each customer and their ability to generate positive cash flows during the loan term. Loans Held for Sale The Company designates certain long-term fixed rate personal real estate loans as held for sale. Prior to September 30, 2024, these loans were initially measured at fair value under the fair value option election with subsequent changes in fair value recognized in mortgage banking income. As of September 30, 2024, loans held for sale are being carried at the lower of cost or estimated fair value. The loans are primarily sold to Freddie Mac, Fannie Mae, PennyMac, and various other secondary market investors. At September 30, 2024, the carrying amount of these loans was $0.3 million compared to $3.9 million at December 31, 2023.
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Other Real Estate and Other Assets Acquired in Settlement of Loans |
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Other Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate and Other Assets Acquired in Settlement of Loans | Other Real Estate and Other Assets Acquired in Settlement of Loans
Changes in the net carrying amount of other real estate owned and repossessed assets were as follows for the periods indicated:
Activity in the valuation allowance for other real estate owned was as follows for the periods indicated:
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2024 and December 31, 2023 were as follows:
(a) Certain hybrid instruments possessing characteristics typically associated with debt obligations. The Company’s investment securities are classified as available for sale. Agency bonds and notes, loan certificates guaranteed by the Small Business Administration, residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations include securities issued by the Government National Mortgage Association, a U.S. government agency, and the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the FHLB, which are U.S. government-sponsored enterprises. Debt securities with carrying values aggregating approximately $84.9 million and $89.2 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law. There were no proceeds from sales of available-for-sale securities for the three and nine months ended September 30, 2024 and 2023. All gains and losses recognized on equity securities during the three and nine months ended September 30, 2024 and 2023 were unrealized. The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2024, by contractual maturity are shown below. Accrued interest on investments was consistent at $1.4 million at both September 30, 2024 and December 31, 2023, and is included in accounts receivable and other assets on the Company's consolidated balance sheets. The total amount of accrued interest is excluded from the amortized cost basis of investments presented below. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.
Other Investment Securities Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in FHLB stock, and Midwest Independent BankersBank ("MIB") stock, that do not have readily determinable fair values, are required for membership in those organizations.
Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2024 and December 31, 2023 were as follows:
The total available-for-sale portfolio consisted of approximately 394 securities at September 30, 2024. The portfolio included 356 securities having an aggregate fair value of $158.2 million that were in a loss position at September 30, 2024. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $152.0 million at fair value at September 30, 2024. The $25.3 million aggregate unrealized loss included in accumulated other comprehensive loss at September 30, 2024 was caused by interest rate fluctuations. The decline in fair value is attributable to changes in interest rates and not credit quality. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. The Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities.
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Mortgage Servicing Rights On January 31, 2024, the Company sold its mortgage servicing rights portfolio and all serviced loans transferred to the new servicer on April 30, 2024. The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated.
(1)The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2)Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time. Total changes in fair value are reported in real estate servicing fees, net, reported in non-interest income in the Company's consolidated statements of income. In the fourth quarter of 2023, the Company recognized a $1.1 million mortgage MSR valuation write-down upon accepting a letter of intent to sell the Company's servicing portfolio, which closed during the first quarter of 2024. Prior to the fourth quarter of 2023, valuation assumptions were reviewed with a third party specialist. The following key data and assumptions were used in estimating the fair value of the Company’s MSRs for the periods indicated as of September 30, 2023:
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Deposits |
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Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits The table below presents the aggregate amount of time deposits with balances that met or exceeded the Federal Deposit Insurance Corporation ("FDIC") insurance limit of $250,000 and brokered deposits for the periods indicated.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company's leases primarily consist of office space and bank branches with remaining lease terms of generally 1 to 10 years. As of September 30, 2024, operating right of use (ROU) assets and liabilities were $1.7 million and $1.8 million, respectively. As of September 30, 2024, the weighted-average remaining lease term on these operating leases was approximately 5.9 years and the weighted-average discount rate used to measure the lease liabilities was approximately 4.1%. Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities. Currently, the Company does not have any finance leases. The ROU assets are included in on the consolidated balance sheets. Operating lease ROU assets represent the Company's right to use an underlying asset during the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company's incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income. The operating lease cost was $0.1 million and $0.2 million for the three and nine months ended September 30, 2024, respectively, compared to $0.1 million and $0.3 million for the three and nine months ended September 30, 2023, respectively. The table below summarizes the maturity of remaining operating lease liabilities:
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Stockholders’ Equity and Accumulated Other Comprehensive Income (Loss) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity and Accumulated Other Comprehensive Income (Loss) | Stockholders’ Equity and Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) The following table summarizes the change in the components of the Company’s accumulated other comprehensive income (loss) for the nine months ended September 30, 2024 and 2023:
(1)The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in investment securities gains (losses), net in the consolidated statements of income. (2)The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost.
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Equity-Based Compensation Plan At the 2023 Annual Meeting of Shareholders, held on June 6, 2023, the Company's shareholders approved the Hawthorn Bancshares, Inc. Equity Incentive Plan (the Equity Plan), which was previously approved by the Company's Board of Directors. The purpose of the Equity Plan is to allow eligible participants of the Company and its subsidiaries to acquire or increase a proprietary and vested interest in the growth and performance of the Company. The Equity Plan is also designed to assist the Company in attracting and retaining selected service providers by providing them with the opportunity to participate in the success and profitability of the Company. The terms of the Equity Plan provide for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, other equity-based awards and cash awards. Subject to certain adjustments, the maximum number of shares of the Company's common stock that may be delivered pursuant to awards under the Equity Plan is 203,000 shares. Eligible participants under the Equity Plan include all employees, non-employee directors and consultants of the Company or its subsidiaries. The Equity Plan is currently administered by the Compensation Committee of the Board of Directors The Compensation Committee adopted a form of restricted stock unit award agreement (service-based vesting). The Company issues restricted share units (RSUs) to provide additional incentives to key officers, employees, and non-employee directors. Awards are granted as determined by the Compensation Committee. The service-based RSUs vest, and shares of common stock are issued, in equal installments on the first, second, and third anniversaries of the date of grant. The following table summarizes the status of the Company's RSUs for the nine months ended September 30, 2024:
The fair value of the RSUs units is determined using the Company’s stock price on the date of grant. Total share-based compensation expense recognized for the three and nine months ended September 30, 2024 for these RSUs was $0.05 million and $0.1 million, respectively. No share-based compensation expense was recognized for the three and nine months ended September 30, 2023. Forfeitures will be recognized as they occur. At September 30, 2024, there was $0.4 million of total unrecognized compensation expense related to RSUs that is expected to be recognized over a weighted-average period of 2.2 years.
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Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans Employee Benefits Employee benefits charged to operating expenses are summarized in the table below for the periods indicated.
The Company's profit-sharing plan includes a matching 401(k) portion, in which the Company matches the first 3% of eligible employee contributions. The Company made annual contributions for the discretionary portion in an amount up to 6% of income before income taxes and before contributions to the profit-sharing and pension plans for all participants, limited to the maximum amount deductible for federal income tax purposes, for each of the periods shown. In addition, employees were able to make additional tax-deferred contributions. Other Plans On November 7, 2018, the Board of Directors of the Company adopted a supplemental executive retirement plan (SERP), effective as of January 1, 2018. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment or death. The accrued liability relating to the SERP was $1.7 million as of September 30, 2024, and the expense for the three and nine months ended September 30, 2024 was $0.02 million and $0.07 million, respectively, compared to $0.01 million and $0.02 million for the three and nine months ended September 30, 2023, respectively, and is recognized over the required service period. Pension The Company provides a noncontributory defined benefit pension plan for all full-time and eligible employees. Beginning January 1, 2018 and for all retrospective periods presented, the Company adopted the guidance under ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Under the guidance, only the service cost component of the net periodic benefit cost is reported in the same income statement line item as salaries and benefits, and the remaining components are reported as other non-interest expense. An employer is required to recognize the funded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Under the Company’s funding policy for the defined benefit pension plan, contributions are made to a trust as necessary to provide for current service and for any unfunded accrued actuarial liabilities over a reasonable period. To the extent that these requirements are fully covered by assets in the trust, a contribution might not be made in a particular year. Effective July 1, 2017, the Company amended the pension plan to effectuate a “soft freeze” such that no individual hired (or rehired in the case of a former employee) by the Company after September 30, 2017, whether or not such individual is or was a vested member in the plan, will be eligible to be an active member and be entitled to accrue any benefits under the plan. Components of Net Pension Cost (Income) and Other Amounts Recognized in Accumulated Other Comprehensive Income (Loss) The following items are components of net pension cost (income) for the periods indicated:
(a)The components of net periodic pension cost (income) other than the service cost and expected administrative expenses are included in other non-interest income. Net periodic pension benefit costs (income) include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial (gains) losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive (loss) income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining service period of active participants in the pension plan. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. Currently, there is no prior service cost or net transition (asset)/obligation to be amortized.
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Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing income available to shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per share gives effect to all dilutive potential shares that were outstanding during the period. Presented below is a summary of the components used to calculate basic and diluted earnings per common share, which have been restated for all stock dividends:
The dilutive effect of RSUs is reflected in diluted earnings per share unless the impact is anti-dilutive, by application of the treasury stock method. Repurchase Program Pursuant to the Company's 2019 Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be repurchased, as well as the timing of any such repurchases. The Company repurchased 56,692 common shares under the repurchase plan during the first nine months of 2024 at an average cost of $19.51 per share totaling $1.1 million. As of September 30, 2024, $3.9 million remained available for share repurchases pursuant to the plan.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under U.S. GAAP uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows. The fair value hierarchy is as follows: Level 1 – Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 – Inputs are unobservable inputs for the asset or liability and significant to the fair value. These may be internally developed using the Company’s best information and assumptions that a market participant would consider. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the consolidated financial statements. Nonfinancial assets measured at fair value on a non-recurring basis would include foreclosed real estate, long-lived assets, and core deposit intangible assets, which are reviewed when circumstances or other events indicate that impairment may have occurred. Valuation Methods for Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Available-for-Sale Securities The fair value measurements of the Company’s investment securities are determined by a third party pricing service that considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair value measurements are subject to management's independent verification to another pricing source for reasonableness each quarter. Other Investment Securities Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in FHLB stock and MIB stock, that do not have readily determinable fair values, are required for membership in those organizations. Equity securities that are not actively traded are classified in Level 2. Equity securities with readily determinable fair values are recorded at fair value, with changes in fair value reflected in earnings. Equity securities that do not have readily determinable fair values are carried at cost and are periodically assessed for impairment. The Company uses Level 1 inputs to value equity securities that are traded in active markets. Loans Held for Sale The fair value of the commitment in forward sale agreements loans is the price at which they could be sold in the principal market at the measurement date, therefore the Company classifies these loans as Level 2. Derivative Assets and Liabilities Derivative assets and liabilities include interest rate lock commitments (IRLCs) and forward sale commitments. The fair values of IRLCs and forward sale commitments are determined using readily observable market data such as interest rates, prices, volatility factors, and customer credit-related adjustments. For IRLCs, the fair value is subject to the anticipated loan funding probability (pull-through rate), which is considered an unobservable factor. Factors that affect pull-through rates include origination channel, current mortgage interest rates in the market versus the interest rate incorporated in the IRLC, the purpose of the mortgage, stage of completion of the underlying application and underwriting process, and the time remaining until the IRLC expires. The Company classifies IRLCs as Level 3 due to the unobservable input of pull-through rates. As of September 30, 2024, the Company elected not to record the derivatives associated with IRLC due to the reduced volume of loans sold to the secondary market and therefore immateriality of the derivative. Mortgage Servicing Rights (MSRs) The Company sold its servicing portfolio on January 31, 2024. In prior periods, the fair value of MSRs is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. The valuation models estimate the present value of estimated future net servicing income. The Company classifies its MSRs as Level 3.
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
Valuation Methods for Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a non-recurring basis: Collateral Dependent Impaired Loans While the overall loan portfolio is not carried at fair value, the Company periodically records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments also include certain impairment amounts for collateral dependent loans when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. In determining the value of real estate collateral, the Company relies on external and internal appraisals of property values depending on the size and complexity of the real estate collateral. The Company maintains staff trained to perform in-house evaluations and also to review third-party appraisal reports for reasonableness. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgments based on the experience and expertise of internal specialists. Values of all loan collateral are regularly reviewed by a senior loan committee. Because many of these inputs are not observable, the measurements are classified as Level 3. As of September 30, 2024, the Company identified $1.8 million in collateral-dependent loans that required a $0.3 million specific allowance for credit losses. Related to these loans, there were $0.4 million and $2.3 million in charge-offs recorded during the three and nine months ended September 30, 2024, respectively. As of September 30, 2023, the Company identified $2.6 million in collateral-dependent loans that required a $0.02 million specific allowance for credit losses. Related to these loans, there were $3,000 and $0.03 million in charge-offs recorded during the three and nine months ended September 30, 2023, respectively. Other Real Estate and Foreclosed Assets Other real estate owned (OREO) and foreclosed assets consisted of loan collateral repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Subsequent to foreclosure, these assets are initially carried at fair value of the collateral less estimated selling costs. Fair value, when recorded, is generally based upon appraisals by approved, independent state-certified appraisers. Like impaired loans, appraisals on OREO may be discounted based on the Company’s historical knowledge, changes in market conditions from the time of appraisal or other information available. During the holding period, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. Because many of these inputs are not observable, the measurements are classified as Level 3.
*Total gains (losses) reported for other real estate and foreclosed assets include charge-offs, valuation write downs, and net losses taken during the periods reported.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate such value: Loans Fair values are estimated for portfolios with similar financial characteristics. Loans are segregated by type, such as commercial, real estate, and consumer. Each loan category is further segmented into fixed and variable interest rate categories. The fair value of loans, or exit price, is estimated by using the future value of discounted cash flows using comparable market rates for similar types of loan products and adjusted for market factors. The discount rates used are estimated using comparable market rates for similar types of loan products adjusted to be commensurate with the credit risk, overhead costs, and optionality of such instruments. Federal funds Sold, Cash, and Due from Banks The carrying amounts of short-term federal funds sold, interest-earning deposits with banks, and cash and due from banks approximate fair value. Federal funds sold classified as short-term generally mature in 90 days or less. Certificates of Deposit in Other Banks Certificates of deposit are other investments made by the Company with other financial institutions that are carried at cost; which is equal to fair value. Accrued Interest Receivable and Payable For accrued interest receivable and payable, the carrying amount is a reasonable estimate of fair value because of the short maturity for these financial instruments. Deposits The fair value of deposits with no stated maturity, such as non-interest-bearing demand, NOW accounts, savings, and money market, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Federal funds Purchased and Securities Sold Under Agreements to Repurchase For Federal funds purchased and securities sold under agreements to repurchase, the carrying amount is a reasonable estimate of fair value, as such instruments reprice in a short time period. Subordinated Notes and Other Borrowings The fair value of subordinated notes and other borrowings is based on the discounted value of contractual cash-flows. The discount rate is estimated using the rates currently offered for other borrowed money of similar remaining maturities. A summary of the carrying amounts and fair values of the Company’s financial instruments at September 30, 2024 and December 31, 2023 is as follows:
Off-Balance Sheet Financial Instruments The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments, and the present creditworthiness of such counterparties. The Company believes such commitments have been made on terms that are competitive in the markets in which it operates. Limitations The fair value estimates provided are made at a point in time based on market information and information about the financial instruments. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the fair value estimates.
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Commitments and Contingencies |
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The Company issues financial instruments with off-balance-sheet risk in the normal course of business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s extent of involvement and maximum potential exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. The allowance for credit losses associated with unfunded commitments and letters of credit is recorded within other liabilities on the consolidated balance sheets. At September 30, 2024, the allowance for credit losses for unfunded commitments was $0.8 million. The contractual amounts of off-balance-sheet financial instruments were as follows as of the dates indicated:
Commitments 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. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain of the commitments and letters of credit are expected to expire without being drawn upon, the total commitment 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. Collateral held varies, but may include accounts receivable, inventory, furniture and equipment, and real estate. The Company has two types of commitments related to mortgage loans held for sale: interest rate lock commitments and forward loan sale commitments. Interest rate lock commitments are commitments to extend credit to a customer that has an interest rate lock and are considered derivative instruments. As of September 30, 2024, the Company elected not to record the derivatives associated with IRLCs due to the reduced volume of loans sold to the secondary market. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. These standby letters of credit are primarily issued to support contractual obligations of the Company’s customers. The approximate remaining term of standby letters of credit ranged from one month to five years at September 30, 2024. Pending Litigation The Company and its subsidiaries are defendants in various legal actions incidental to the Company’s past and current business activities. Based on the Company’s analysis, and considering the inherent uncertainties associated with litigation, management does not believe that it is reasonably possible that these legal actions will materially adversely affect the Company’s consolidated financial condition or results of operations in the near term. The Company records a loss accrual for all legal matters for which it deems a loss is probable and can be reasonably estimated. Some legal matters, which are at early stages in the legal process, have not yet progressed to the point where a loss is deemed probable or an amount can be estimated.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
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Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 4,574 | $ 2,579 | $ 13,659 | $ 8,399 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Loans and Allowance for Credit Losses (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans, by Major Class Within the Company's Loan Portfolio | Major classifications within the Company’s loans held for investment portfolio at September 30, 2024 and December 31, 2023 were as follows:
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Schedule of the Allowance for Loan Losses | The following tables illustrate the changes in the allowance for credit losses by portfolio segment:
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Schedule of Risk Categories by Class | The amortized cost of collateral-dependent loans by class as of September 30, 2024 and December 31, 2023 was as follows:
The following table presents the recorded investment by risk categories at September 30, 2024:
The following table presents the recorded investment by risk categories at December 31, 2023:
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Schedule of Financing Receivable, Nonaccrual | The following table presents the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loans as of September 30, 2024 and December 31, 2023:
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Schedule of Aging Information for the Company's Past Due and Non-Accrual Loans | The following table provides aging information for the Company’s past due and non-accrual loans at September 30, 2024 and December 31, 2023.
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Other Real Estate and Other Assets Acquired in Settlement of Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate and Other Assets Acquired in Settlement of Loans |
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Schedule of Changes in the Net Carrying Amount of Other Real Estate Owned | Changes in the net carrying amount of other real estate owned and repossessed assets were as follows for the periods indicated:
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Schedule of Activity in Valuation Allowance for Other Real Estate Owned | Activity in the valuation allowance for other real estate owned was as follows for the periods indicated:
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Investment Securities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Value of Debt Securities Available-for-Sale | The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2024 and December 31, 2023 were as follows:
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Schedule of Amortized Cost and Fair Value of Debt Securities Classified as Available-for-Sale by Contractual Maturity | Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.
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Schedule of Other Securities | Investments in FHLB stock, and Midwest Independent BankersBank ("MIB") stock, that do not have readily determinable fair values, are required for membership in those organizations.
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Schedule of Gross Unrealized Losses on Debt Securities and Fair Value of Related Securities Aggregated by Investment Category and Length of Time that Individual Securities have been in a Continuous Unrealized Loss Position | Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2024 and December 31, 2023 were as follows:
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Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Mortgage Servicing Rights (MSRs) | The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated.
(1)The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2)Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time.
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Schedule of Key Data and Assumptions Used in Estimating the Fair Value of the Company's MSRs | The following key data and assumptions were used in estimating the fair value of the Company’s MSRs for the periods indicated as of September 30, 2023:
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Deposits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposit Liabilities, Type | The table below presents the aggregate amount of time deposits with balances that met or exceeded the Federal Deposit Insurance Corporation ("FDIC") insurance limit of $250,000 and brokered deposits for the periods indicated.
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturity of Remaining Operating Leases Liabilities | The table below summarizes the maturity of remaining operating lease liabilities:
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Stockholders’ Equity and Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Change in the Components of the Accumulated Other Comprehensive Loss | The following table summarizes the change in the components of the Company’s accumulated other comprehensive income (loss) for the nine months ended September 30, 2024 and 2023:
(1)The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in investment securities gains (losses), net in the consolidated statements of income. (2)The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost.
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Share-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the status of the Company's RSUs for the nine months ended September 30, 2024:
|
Employee Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Benefits Charged to Operating Expenses | Employee benefits charged to operating expenses are summarized in the table below for the periods indicated.
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Schedule of Components of Net Pension Cost | The following items are components of net pension cost (income) for the periods indicated:
|
Earnings per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculations of Basic and Diluted Earnings Per Common Share | Presented below is a summary of the components used to calculate basic and diluted earnings per common share, which have been restated for all stock dividends:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Recorded at Fair Value on a Recurring Basis |
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Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
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Schedule of Valuation Methods for Instruments Measured at Fair Value on a Nonrecurring Basis |
*Total gains (losses) reported for other real estate and foreclosed assets include charge-offs, valuation write downs, and net losses taken during the periods reported.
|
Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amounts and Fair Values of Financial Instruments | A summary of the carrying amounts and fair values of the Company’s financial instruments at September 30, 2024 and December 31, 2023 is as follows:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contractual Amount of Off-Balance-Sheet Financial Instruments | The contractual amounts of off-balance-sheet financial instruments were as follows as of the dates indicated:
|
Loans and Allowance for Credit Losses - Schedule of Loans by Major Class (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Loans and Allowance for Loan Losses | ||
Loans held for investment | $ 1,466,751 | $ 1,539,147 |
Commercial, financial, & agricultural | ||
Loans and Allowance for Loan Losses | ||
Loans held for investment | 202,341 | 226,275 |
Real estate construction − residential | ||
Loans and Allowance for Loan Losses | ||
Loans held for investment | 32,344 | 58,347 |
Real estate construction − commercial | ||
Loans and Allowance for Loan Losses | ||
Loans held for investment | 65,432 | 130,296 |
Real estate mortgage − residential | ||
Loans and Allowance for Loan Losses | ||
Loans held for investment | 369,103 | 372,391 |
Real estate mortgage − commercial | ||
Loans and Allowance for Loan Losses | ||
Loans held for investment | 782,487 | 731,024 |
Installment and other consumer | ||
Loans and Allowance for Loan Losses | ||
Loans held for investment | $ 15,044 | $ 20,814 |
Loans and Allowance for Credit Losses - Loans Pledged (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accrued interest on loans | $ 6,800 | $ 7,200 |
Net loans | 1,444,814 | $ 1,515,403 |
Asset Pledged as Collateral without Right | Federal Home Loan Bank Advances | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Net loans | $ 720,700 |
Loans and Allowance for Credit Losses - Schedule of CECL (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Jun. 30, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|---|---|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Liability for unfunded commitments | $ 21,937 | $ 21,980 | $ 23,744 | $ 22,462 | $ 22,236 | $ 15,588 |
Unfunded Loan Commitment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Liability for unfunded commitments | $ 800 | |||||
Adoption of ASU 2016-13 | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Liability for unfunded commitments | $ 5,793 |
Loans and Allowance for Credit Losses - Schedule of Modification (Details) - USD ($) |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2024 |
Sep. 30, 2024 |
|
Receivables [Abstract] | ||
Modified in period, amount | $ 0 | $ 0 |
Loans and Allowance for Credit Losses - TDRs and Loan Modifications (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Receivables [Abstract] | ||
Loans held for sale | $ 315 | $ 3,884 |
Other Real Estate and Other Assets Acquired in Settlement of Loans - Schedule of Changes in Net Carrying Amount (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Schedule of real estate acquired in settlement of loans | ||||||||
Balance at beginning of period | $ 5,369 | $ 10,924 | $ 7,694 | $ 11,459 | ||||
Additions | 760 | 0 | 5,181 | 44 | ||||
Proceeds from sales | 0 | (54) | (3,282) | (681) | ||||
Charge-offs against the valuation allowance for other real estate owned, net | 0 | (40) | (3,820) | (40) | ||||
Net gain on sales | 0 | 1 | 356 | 49 | ||||
Balance at ending of period | 6,129 | 10,831 | 6,129 | 10,831 | ||||
Less valuation allowance for other real estate owned | (1,744) | (7,267) | (1,744) | (7,267) | $ (1,744) | $ (5,950) | $ (4,495) | $ (2,664) |
Balance at end of period | $ 4,385 | $ 3,564 | $ 4,385 | $ 3,564 |
Other Real Estate and Other Assets Acquired in Settlement of Loans - Schedule of Valuation Allowance (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Summary of activity in valuation allowance for other real estate owned in settlement of loans | ||||
Balance, beginning of period | $ 1,744 | $ 4,495 | $ 5,950 | $ 2,664 |
Provision for valuation allowance for other real estate owned | 0 | 2,812 | (386) | 4,643 |
Charge-offs | 0 | (40) | (3,820) | (40) |
Balance, end of period | $ 1,744 | $ 7,267 | $ 1,744 | $ 7,267 |
Investment Securities - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2024
USD ($)
security
|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2024
USD ($)
security
|
Sep. 30, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
|
Investments, Debt and Equity Securities [Abstract] | |||||
Debt securities with carrying values, pledged | $ 84,900 | $ 84,900 | $ 89,200 | ||
Proceeds from sales of available-for-sale securities | 0 | $ 0 | 0 | $ 0 | |
Accrued interest on investments | $ 1,400 | $ 1,400 | 1,400 | ||
Number of securities consisted in portfolio | security | 394 | 394 | |||
Number of securities in loss position | security | 356 | 356 | |||
Aggregate fair value of securities in loss position | $ 158,186 | $ 158,186 | 172,671 | ||
Loss position for 12 months or longer | 152,024 | 152,024 | 155,243 | ||
Aggregate unrealized loss | $ 25,344 | $ 25,344 | $ 27,287 |
Investment Securities - Schedule of Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Amortized Cost | ||
Due in one year or less | $ 4,278 | |
Due after one year through five years | 14,304 | |
Due after five years through ten years | 36,216 | |
Due after ten years | 105,297 | |
Total | 160,095 | |
Mortgage-backed securities | 67,862 | |
Total available-for-sale securities | 227,957 | $ 215,908 |
Fair Value | ||
Due in one year or less | 4,267 | |
Due after one year through five years | 14,288 | |
Due after five years through ten years | 33,785 | |
Due after ten years | 87,616 | |
Total | 139,956 | |
Mortgage-backed securities | 63,336 | |
Available-for-sale debt securities, at fair value | $ 203,292 | $ 188,742 |
Investment Securities - Schedule of Other Securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Other securities: | ||
FHLB stock | $ 5,504 | $ 6,071 |
MIB stock | 151 | 151 |
Equity securities with readily determinable fair values | 72 | 78 |
Total other investment securities | $ 5,727 | $ 6,300 |
Intangible Assets - Mortgage Servicing Rights Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2023
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Mortgage MSR valuation write-down | $ 1.1 |
Intangible Assets - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Changes in mortgage servicing rights | ||
Sale proceeds | $ (1,670) | $ 0 |
Mortgage Servicing Rights | ||
Changes in mortgage servicing rights | ||
Balance at beginning of period | 1,738 | 2,899 |
Originated mortgage servicing rights | 0 | 38 |
Changes in fair value: | ||
Due to changes in model inputs and assumptions | 0 | 145 |
Other changes in fair value | (68) | (197) |
Total changes in fair value | (68) | (52) |
Balance at end of period | $ 0 | $ 2,885 |
Intangible Assets - Schedule of FV Assumptions (Details) - Mortgage Servicing Rights |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Assumptions used in estimating the fair value of mortgage service rights | |
Weighted average constant prepayment rate | 6.51% |
Weighted average note rate | 3.49% |
Weighted average discount rate | 11.00% |
Weighted average expected life (in years) | 7 years 1 month 20 days |
Deposits (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Deposits [Abstract] | ||
Time deposits with balances > $250,000 | $ 97,776 | $ 108,147 |
Brokered deposits | $ 10 | $ 161 |
Leases - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
|
Lessee, Lease, Description [Line Items] | |||||
Operating right-of-use assets | $ 1,700 | $ 1,700 | |||
Operating lease liabilities | $ 1,758 | $ 1,758 | $ 1,213 | ||
Weighted-average remaining lease term (in years) | 5 years 10 months 24 days | 5 years 10 months 24 days | |||
Weighted-average discount rate (as a percent) | 4.10% | 4.10% | |||
Operating lease, right-of-use asset, statement of financial position [Extensible Enumeration] | Premises and equipment - net | Premises and equipment - net | |||
Operating lease cost | $ 100 | $ 100 | $ 200 | $ 300 | |
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease terms (in years) | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease terms (in years) | 10 years | 10 years |
Leases - Schedule of Maturities of remaining operating lease liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2024 remaining | $ 97 | |
2025 | 391 | |
2026 | 400 | |
2027 | 327 | |
2028 | 330 | |
Thereafter | 438 | |
Total lease payments | 1,983 | |
Less imputed interest | (225) | |
Total lease liabilities, as reported | $ 1,758 | $ 1,213 |
Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Jun. 06, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant (in shares) | 203,000 | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 50 | $ 0 | $ 100 | $ 0 | |
Nonvested award, excluding option, cost not yet recognized, amount | $ 400 | $ 400 | |||
Unrecognized share-based compensation cost, period of recognition (in years) | 2 years 2 months 12 days |
Share-Based Compensation - Schedule of Status of the Company's Restricted Share Units (RSUs) (Details) - Restricted Stock Units |
9 Months Ended |
---|---|
Sep. 30, 2024
$ / shares
shares
| |
Quantity | |
Non-vested at beginning of period (in shares) | shares | 18,277 |
Granted (in shares) | shares | 11,151 |
Vested (in shares) | shares | (4,092) |
Forfeited (in shares) | shares | 0 |
Non-vested at end of period (in shares) | shares | 25,336 |
Weighted-Average Grant Date Fair Value Per share | |
Non-vested at beginning of period (in shares) (in dollars per share) | $ / shares | $ 20.63 |
Granted (in dollars per share) | $ / shares | 20.18 |
Vested (in dollars per share) | $ / shares | 19.80 |
Forfeited (in dollars per share) | $ / shares | 0 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 20.20 |
Employee Benefit Plans - Schedule of Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Summary of employee benefits charged to operating expenses | ||||
Payroll taxes | $ 361 | $ 374 | $ 1,188 | $ 1,228 |
Medical plans | 399 | 505 | 1,235 | 1,400 |
401(k) match and profit sharing | 310 | 250 | 931 | 761 |
Periodic pension cost | 264 | 265 | 792 | 796 |
Other | 90 | 11 | 91 | 30 |
Total employee benefits | $ 1,424 | $ 1,405 | $ 4,237 | $ 4,215 |
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
401(k) plan, percentage of employer match | 3.00% | |||
401(k) plan, maximum percentage contribution by employer (up to) | 6.00% | |||
SERP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
SERP, accrued liability | $ 1,700 | $ 1,700 | ||
SERP, accrued expense | $ 20 | $ 10 | $ 70 | $ 20 |
Employee Benefit Plans - Schedule of Net Pension Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Components of net pension cost | ||||
Service cost - benefits earned during the year | $ 236 | $ 237 | $ 710 | $ 710 |
Interest costs on projected benefit obligations | 370 | 357 | 1,108 | 1,071 |
Expected return on plan assets | (590) | (544) | (1,769) | (1,634) |
Expected administrative expenses | 28 | 28 | 82 | 86 |
Amortization of unrecognized net gain | (173) | (160) | (518) | (480) |
Net periodic pension income | $ (129) | $ (82) | $ (387) | $ (247) |
Earnings per Share - Schedule of Components (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Basic and Diluted Earnings Per Share: | ||||
Net income available to shareholders, basic | $ 4,574 | $ 2,579 | $ 13,659 | $ 8,399 |
Net income available to shareholders, diluted | $ 4,574 | $ 2,579 | $ 13,659 | $ 8,399 |
Basic weighted-average shares outstanding (in shares) | 6,986,723 | 7,039,323 | 7,004,883 | 7,039,323 |
Effect of dilutive equity-based awards | 0 | 0 | 0 | 0 |
Diluted weighted-average shares outstanding (in shares) | 6,986,723 | 7,039,323 | 7,004,883 | 7,039,323 |
Basic earnings per share (in dollars per share) | $ 0.66 | $ 0.36 | $ 1.95 | $ 1.19 |
Diluted earnings per share (in dollars per share) | $ 0.66 | $ 0.36 | $ 1.95 | $ 1.19 |
Earnings per Share - Repurchase Program (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2024
USD ($)
|
Sep. 30, 2024
USD ($)
$ / shares
shares
|
|
Earnings Per Share [Abstract] | ||
Repurchase of common stock (in share) | shares | 56,692 | |
Stock repurchased (in dollars per share) | $ / shares | $ 19.51 | |
Value of shares authorized for repurchase | $ 100 | $ 1,106 |
Remaining available for repurchase of shares | $ 3,900 | $ 3,900 |
Fair Value Measurements - Mortgage Servicing Rights - Level 3 (Details) - Recurring - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Mortgage Servicing Rights | ||
Fair value of assets | ||
Balance at beginning of period | $ 1,738 | $ 2,899 |
Total gains or (losses) (realized/unrealized): | ||
Included in earnings | (68) | (52) |
Included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | (1,670) | 0 |
Issues | 0 | 38 |
Balance at end of period | 0 | 2,885 |
Interest Rate Lock Commitments | ||
Fair value of liabilities | ||
Balance at beginning of period | 41 | 2 |
Total gains or (losses) (realized/unrealized): | ||
Included in earnings | (11) | (31) |
Included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | (86) | (125) |
Issues | 56 | 197 |
Balance at end of period | $ 0 | $ 43 |
Fair Value Measurements - Mortgage Servicing Rights - Other (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Fair Value Measurements | ||||||||
Impaired loans with a specific allowance | $ 1,466,751 | $ 1,466,751 | $ 1,539,147 | |||||
Allowance for credit loss | 21,937 | $ 22,462 | 21,937 | $ 22,462 | $ 21,980 | $ 23,744 | $ 22,236 | $ 15,588 |
Collateral dependent impaired loans | ||||||||
Fair Value Measurements | ||||||||
Impaired loans with a specific allowance | 1,800 | 2,600 | 1,800 | 2,600 | ||||
Allowance for credit loss | 300 | 20 | 300 | 20 | ||||
Impaired financing receivable, charge-offs | $ 400 | $ 3 | $ 2,300 | $ 30 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2024 |
Jun. 30, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Other Commitments [Line Items] | ||||||
Allowance for credit loss | $ 21,937 | $ 21,980 | $ 23,744 | $ 22,462 | $ 22,236 | $ 15,588 |
Minimum | ||||||
Other Commitments [Line Items] | ||||||
Remaining term of conditional commitment | 1 month | |||||
Maximum | ||||||
Other Commitments [Line Items] | ||||||
Remaining term of conditional commitment | 5 years | |||||
Unfunded Loan Commitment | ||||||
Other Commitments [Line Items] | ||||||
Allowance for credit loss | $ 800 |