☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Oklahoma
|
|
20-0763496
|
( State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
1039 N.W. 63rd Street, Oklahoma City, Oklahoma
|
|
73116-7361
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.01 Par Value Per Share | BSVN |
NASDAQ Global Select Market System
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☒
|
Emerging growth company
|
☒
|
Page
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements
|
|
3 |
||
4 |
||
5 |
||
6 |
||
7 |
||
Item 2.
|
40 |
|
Item 3.
|
58 |
|
Item 4.
|
60 |
|
|
||
PART II.
|
60 |
|
|
||
Item 1.
|
60 |
|
Item 1A.
|
60 |
|
Item 2.
|
61 |
|
Item 3.
|
61 |
|
Item 4.
|
61 |
|
Item 5.
|
61 |
|
Item 6.
|
62 |
|
Signatures |
62 |
Assets
|
September 30,
2023
(unaudited)
|
December 31,
2022
|
||||||
Cash and due from banks
|
$
|
169,490
|
$
|
109,115
|
||||
Interest-bearing time deposits in other banks
|
17,182
|
5,474
|
||||||
Available-for-sale debt securities
|
167,138 | 173,165 | ||||||
Loans, net of allowance for credit losses of $20,649 and $14,734 at September 30, 2023 and December 31, 2022,
respectively
|
1,372,128
|
1,255,722
|
||||||
Loans held for sale
|
1,143 | - | ||||||
Premises and equipment, net
|
14,963 | 13,106 | ||||||
Nonmarketable equity securities
|
1,251
|
1,209
|
||||||
Core deposit intangibles
|
1,107 | 1,336 | ||||||
Goodwill
|
8,458
|
8,603
|
||||||
Interest receivable and other assets
|
19,539
|
16,439
|
||||||
Total assets
|
$
|
1,772,399
|
$
|
1,584,169
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$
|
480,827
|
$
|
441,509
|
||||
Interest-bearing
|
1,112,745
|
989,891
|
||||||
Total deposits
|
1,593,572
|
1,431,400
|
||||||
Income taxes payable
|
419
|
1,054
|
||||||
Interest payable and other liabilities
|
10,501
|
7,615
|
||||||
Total liabilities
|
1,604,492
|
1,440,069
|
||||||
Shareholders’ equity
|
||||||||
Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,184,975 and 9,131,973 at September 30, 2023 and
December 31, 2022 respectively
|
92
|
91
|
||||||
Additional paid-in capital
|
97,068
|
95,263
|
||||||
Retained earnings
|
79,825
|
58,049
|
||||||
Accumulated other comprehensive loss
|
(9,078 | ) | (9,303 | ) | ||||
|
||||||||
Total shareholders’ equity
|
167,907
|
144,100
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
1,772,399
|
$
|
1,584,169
|
|
Three months ended
September 30,
|
Nine
months ended
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Interest Income
|
||||||||||||||||
Loans, including fees
|
$
|
28,880
|
$
|
20,466
|
$
|
81,117
|
$
|
50,597
|
||||||||
Interest-bearing time deposits in other banks
|
159
|
10
|
270
|
39
|
||||||||||||
Debt securities, taxable
|
699 | 690 | 2,106 | 1,625 | ||||||||||||
Debt securities, tax-exempt
|
81 | 90 | 253 | 273 | ||||||||||||
Other interest and dividend income
|
1,903
|
435
|
5,398
|
754
|
||||||||||||
Total interest income
|
31,722
|
21,691
|
89,144
|
53,288
|
||||||||||||
Interest Expense
|
||||||||||||||||
Deposits
|
10,976
|
2,646
|
27,894
|
4,241
|
||||||||||||
Total interest expense
|
10,976
|
2,646
|
27,894
|
4,241
|
||||||||||||
Net Interest Income
|
20,746
|
19,045
|
61,250
|
49,047
|
||||||||||||
Provision for Credit Losses
|
4,159
|
2,348
|
5,645
|
2,843
|
||||||||||||
Net Interest Income After Provision for Credit Losses
|
16,587
|
16,697
|
55,605
|
46,204
|
||||||||||||
Noninterest Income
|
||||||||||||||||
Mortgage lending income
|
6
|
134
|
172
|
395
|
||||||||||||
Loss on sales, prepayments, and calls of available-for-sale debt securities
|
(7 | ) | (10 | ) | (15 | ) | (127 | ) | ||||||||
Service charges on deposit accounts
|
213
|
210
|
647
|
678
|
||||||||||||
Other
|
795
|
506
|
1,668
|
1,261
|
||||||||||||
Total noninterest income
|
1,007
|
840
|
2,472
|
2,207
|
||||||||||||
Noninterest Expense
|
||||||||||||||||
Salaries and employee benefits
|
4,910
|
3,996
|
14,299
|
12,148
|
||||||||||||
Furniture and equipment
|
254
|
390
|
755
|
1,134
|
||||||||||||
Occupancy
|
662
|
614
|
1,980
|
1,736
|
||||||||||||
Data and item processing
|
424
|
522
|
1,280
|
1,468
|
||||||||||||
Accounting, marketing and legal fees
|
14
|
340
|
491
|
782
|
||||||||||||
Regulatory assessments
|
279
|
551
|
1,013
|
973
|
||||||||||||
Advertising and public relations
|
74
|
83
|
273
|
314
|
||||||||||||
Travel, lodging and entertainment
|
85
|
94
|
255
|
216
|
||||||||||||
Other
|
688
|
543
|
2,068
|
1,745
|
||||||||||||
Total noninterest expense
|
7,390
|
7,133
|
22,414
|
20,516
|
||||||||||||
Income Before Taxes
|
10,204
|
10,404
|
35,663
|
27,895
|
||||||||||||
Income tax expense
|
2,351
|
2,363
|
8,457
|
6,646
|
||||||||||||
Net Income
|
$
|
7,853
|
$
|
8,041
|
$
|
27,206
|
$
|
21,249
|
||||||||
Earnings per common share - basic
|
$
|
0.86
|
$
|
0.88
|
$
|
2.97
|
$
|
2.34
|
||||||||
Earnings per common share - diluted
|
0.85
|
0.87
|
2.94
|
2.31
|
||||||||||||
Weighted average common shares outstanding - basic
|
9,158,027
|
9,100,789
|
9,152,788
|
9,095,724
|
||||||||||||
Weighted average common shares outstanding - diluted
|
9,273,595
|
9,209,754
|
9,262,003
|
9,194,928
|
||||||||||||
Other Comprehensive Income (Loss)
|
||||||||||||||||
Unrealized gains (losses) on securities, net of (tax expense) tax benefit of $485 and $1.7 million for the
three months ended September 30, 2023 and 2022, respectively; ($70) and $3.2 million for the
nine months ended September 30, 2023 and 2022, respectively
|
$ | (372 | ) | $ | (2,674 | ) | $ | 214 | $ | (10,691 | ) | |||||
Reclassification adjustment for realized loss included in net income net of tax of $2 and $2 for the three months
ended September 30, 2023
and 2022, respectively; $4
and $29 for the nine months ended September 30, 2023 and 2022, respectively
|
5 | 8 | 11 | 98 | ||||||||||||
Other comprehensive income (loss)
|
$ | (367 | ) | $ | (2,666 | ) | $ | 225 | $ | (10,593 | ) | |||||
Comprehensive Income
|
$ | 7,486 | $ | 5,375 | $ | 27,431 | $ | 10,656 |
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Common Stock (Shares)
|
||||||||||||||||
Balance at beginning of period
|
9,154,934
|
9,098,655
|
9,131,973
|
9,071,417
|
||||||||||||
Exercise of employee stock options
|
13,124 | 1,250 | 26,986 | 16,062 | ||||||||||||
Shares issued for restricted stock units
|
26,625
|
26,000
|
40,734
|
41,584
|
||||||||||||
Shares acquired and canceled
|
(9,708 | ) | (10,166 | ) | (14,718 | ) | (13,324 | ) | ||||||||
Balance at end of period
|
9,184,975
|
9,115,739
|
9,184,975
|
9,115,739
|
||||||||||||
Common Stock (Amount)
|
||||||||||||||||
Balance at beginning of period
|
$
|
92
|
$
|
91
|
$
|
91
|
$
|
91
|
||||||||
Shares issued for restricted stock units
|
- |
- |
1 |
-
|
||||||||||||
Balance at end of period
|
$
|
92
|
$
|
91
|
$
|
92
|
$
|
91
|
||||||||
Additional Paid-in Capital
|
||||||||||||||||
Balance at beginning of period
|
$
|
96,498
|
$
|
95,016
|
$
|
95,263
|
$
|
94,024
|
||||||||
Shares purchased and retired for restricted stock units
|
(231 | ) | (235 | ) | (367 | ) | (312 | ) | ||||||||
Exercise of stock options
|
236 | 21 | 480 | 283 | ||||||||||||
Stock-based compensation expense
|
565
|
252
|
1,692
|
1,059
|
||||||||||||
Balance at end of period
|
$
|
97,068
|
$
|
95,054
|
$
|
97,068
|
$
|
95,054
|
||||||||
Retained Earnings
|
||||||||||||||||
Balance at beginning of period
|
$
|
73,901
|
$
|
44,174
|
$
|
58,049
|
$
|
33,149
|
||||||||
Net income
|
7,853
|
8,041
|
27,206
|
21,249
|
||||||||||||
Cumulative effect of change in accounting principle, net of tax of $178 (Note 1)
|
- | - | (572 | ) | - | |||||||||||
Cash dividends declared ($0.21 and $0.12 per share for the three months ended September 30, 2023 and 2022, respectively; $0.53
and $0.36 per share for the nine
months ended September 30, 2023
and 2022, respectively)
|
(1,929
|
)
|
(1,092
|
)
|
(4,858
|
)
|
(3,275
|
)
|
||||||||
Balance at end of period
|
$
|
79,825
|
$
|
51,123
|
$
|
79,825
|
$
|
51,123
|
||||||||
Accumulated Other Comprehensive Loss |
||||||||||||||||
Balance at beginning of period
|
$ | (8,711 | ) | $ | (7,783 | ) | $ | (9,303 | ) | $ | 144 | |||||
Comprehensive income (loss)
|
(367 | ) | (2,666 | ) | 225 | (10,593 | ) | |||||||||
Balance at end of period
|
$ | (9,078 | ) | $ | (10,449 | ) | $ | (9,078 | ) | $ | (10,449 | ) | ||||
Total Shareholders’ equity
|
$
|
167,907
|
$
|
135,819
|
$
|
167,907
|
$
|
135,819
|
Nine Months Ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
Operating Activities
|
||||||||
Net income
|
$
|
27,206
|
$
|
21,249
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization
|
973
|
1,063
|
||||||
Provision for credit losses
|
5,645
|
2,843
|
||||||
Amortization of premiums and discounts on securities
|
278 | 657 | ||||||
Gain on sales of loans
|
(172
|
)
|
(395
|
)
|
||||
Net loss on sale of available-for-sale debt securities
|
15 | 127 | ||||||
Stock-based compensation expense
|
1,692
|
1,059
|
||||||
Gain on sale of premises and equipment
|
(77 | ) | (24 | ) | ||||
Cash receipts from the sale of loans originated for sale
|
5,985
|
25,542
|
||||||
Cash disbursements for loans originated for sale
|
(6,956
|
)
|
(24,887
|
)
|
||||
Deferred income tax benefit
|
(1,633
|
)
|
(236
|
)
|
||||
Changes in
|
||||||||
Interest receivable and other assets
|
(1,392
|
)
|
810
|
|||||
Interest payable and other liabilities
|
1,403
|
2,127
|
||||||
Net cash provided by operating activities
|
32,967
|
29,935
|
||||||
Investing Activities
|
||||||||
Maturities of interest-bearing time deposits in other banks
|
5,228
|
2,490
|
||||||
Purchases of interest-bearing time deposits in other banks
|
(16,936 | ) | (747 | ) | ||||
Proceeds from sale of available-for-sale debt securities
|
- | 11,820 | ||||||
Maturities, prepayments and calls of available-for-sale debt securities
|
6,029 | 17,032 | ||||||
Purchases of available-for-sale debt securities
|
- | (133,052 | ) | |||||
Net change in loans
|
(122,242
|
)
|
(204,756
|
)
|
||||
Purchases of premises and equipment
|
(2,602
|
)
|
(273
|
)
|
||||
Proceeds from sale of premises and equipment | 78 | 3,370 | ||||||
Change in nonmarketable equity securities
|
(42
|
)
|
9
|
|||||
Net cash used in investing activities
|
(130,487
|
)
|
(304,107
|
)
|
||||
Financing Activities
|
||||||||
Net change in deposits
|
162,172
|
219,865
|
||||||
Cash distributions
|
(4,391
|
)
|
(3,275
|
)
|
||||
Shares purchased and retired for restricted stock units
|
(367 | ) | (312 | ) | ||||
Net settlement of stock options
|
480 | 283 | ||||||
Common stock issued for restricted stock units
|
1 | - | ||||||
Net cash provided by financing activities
|
157,895
|
216,561
|
||||||
Net Increase/(Decrease) in Cash and Due from Banks
|
60,375
|
(57,611
|
)
|
|||||
Cash and Due from Banks, Beginning of Period
|
109,115
|
204,852
|
||||||
Cash and Due from Banks, End of Period
|
$
|
169,490
|
$
|
147,241
|
||||
Supplemental Disclosure of Cash Flows Information
|
||||||||
Interest paid
|
$
|
26,899
|
$
|
4,220
|
||||
Income taxes paid
|
$ | 10,612 | $ | 6,843 | ||||
Dividends declared and not paid
|
$
|
1,929
|
$
|
1,092
|
||||
Measurement period goodwill adjustment
|
$ | (146 | ) | $ | (411 | ) |
Note 1:
|
Nature
of Operations and Summary of Significant Accounting Policies
|
January 1, 2023
|
||||||||||||
As Reported
Under ASC 326
|
Pre ASC 326
Adoption
|
Impact of ASC
326 Adoption
|
||||||||||
Construction & development
|
$
|
1,933
|
$
|
1,889
|
$
|
44
|
||||||
1 - 4 family real estate
|
752
|
890
|
(138
|
)
|
||||||||
Commercial real estate - other
|
4,912
|
5,080
|
(168
|
)
|
||||||||
Total commercial real estate
|
$
|
7,597
|
$
|
7,859
|
$
|
(262
|
)
|
|||||
Commercial & industrial
|
6,653
|
5,937
|
716
|
|||||||||
Agricultural
|
616
|
765
|
(149
|
)
|
||||||||
Consumer
|
118
|
173
|
(55
|
)
|
||||||||
Allowance for credit losses on loans
|
$
|
14,984
|
$
|
14,734
|
$
|
250
|
||||||
Allowance for credit losses on off-balance sheet credit exposures (unfunded commitments), see Note (6) and Note (11)
|
500
|
-
|
500
|
|||||||||
Total Impact
|
$
|
15,484
|
$
|
14,734
|
$
|
750
|
●
|
Segment loans into pools according to similar risk characteristics;
|
●
|
Develop historical loss rates for each loan pool segment;
|
●
|
Incorporate the impact of forecasts;
|
●
|
Incorporate the impact of other qualitative factors; and
|
●
|
Calculate and review pool specific allowance for credit loss estimate.
|
Note
2:
|
Recent Events, Including Mergers and
Acquisitions
|
Estimated Fair Value
|
||||
(in thousands)
|
||||
Assets Acquired
|
||||
Cash and cash equivalents
|
$
|
41,747
|
||
Available-for-sale debt securities
|
86,166
|
|||
Federal funds sold
|
7,941
|
|||
Loans
|
117,335
|
|||
Premises and equipment
|
8,669
|
|||
Core deposit intangible
|
1,254
|
|||
Prepaid expenses and other assets
|
4,512
|
|||
Total assets acquiried
|
$ |
267,624
|
||
Liabilities Assumed
|
||||
Deposits
|
$
|
243,487
|
||
Accounts payable and accrued expenses
|
2,086
|
|||
Total liabilities assumed
|
$ |
245,573
|
||
Net assets acquired
|
$
|
22,051
|
||
Consideration transferred
|
29,498
|
|||
Goodwill
|
$ |
7,447
|
Note 3: |
Restriction on Cash and Due from Banks
|
Note 4: |
Earnings per Share
|
As of and for the three months
ended September 30,
|
As of and for the nine months
ended September 30,
|
|||||||||||||||
2023
|
2022
|
2023 |
2022 |
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Numerator
|
||||||||||||||||
Net income
|
$ | 7,853 | $ | 8,041 | $ | 27,206 | $ | 21,249 | ||||||||
Denominator
|
||||||||||||||||
Weighted-average shares outstanding for basic earnings per share
|
9,158,027 |
9,100,789 |
9,152,788 | 9,095,724 | ||||||||||||
Dilutive effect of stock compensation (1)
|
115,568 |
108,965 |
109,215 | 99,204 | ||||||||||||
Denominator for diluted earnings per share
|
9,273,595 |
9,209,754 |
9,262,003 | 9,194,928 | ||||||||||||
Earnings per common share
|
||||||||||||||||
Basic
|
$ | 0.86 | $ | 0.88 | $ | 2.97 | $ | 2.34 | ||||||||
Diluted
|
$ | 0.85 | $ | 0.87 | $ | 2.94 | $ | 2.31 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Fair Value
|
||||||||||||
Available-for-sale as of September 30, 2023
|
||||||||||||||||
U.S. Federal agencies
|
$
|
146
|
$
|
-
|
$
|
(6
|
)
|
$
|
140
|
|||||||
Mortgage-backed securities(1)(2)
|
39,611
|
-
|
(5,531
|
)
|
34,080
|
|||||||||||
State and political subdivisions
|
27,707
|
-
|
(2,483
|
)
|
25,224
|
|||||||||||
U.S. Treasuries
|
106,032
|
-
|
(2,594
|
)
|
103,438
|
|||||||||||
Corporate debt securities
|
5,500
|
-
|
(1,244
|
)
|
4,256
|
|||||||||||
Total available-for-sale
|
178,996
|
-
|
(11,858
|
)
|
167,138
|
|||||||||||
Total debt securities
|
|
178,996
|
|
-
|
|
(11,858
|
)
|
|
167,138
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Fair Value
|
||||||||||||
Available-for-sale as of December 31, 2022
|
||||||||||||||||
U.S. Federal agencies
|
$
|
1,292
|
$
|
-
|
$
|
(150
|
)
|
$
|
1,142
|
|||||||
Mortgage-backed securities(1)(2)
|
42,953
|
-
|
(4,879
|
)
|
38,074
|
|||||||||||
State and political subdivisions
|
30,632
|
-
|
(2,276
|
)
|
28,356
|
|||||||||||
U.S. Treasuries
|
104,940
|
-
|
(4,280
|
)
|
100,660
|
|||||||||||
Corporate debt securities
|
5,500
|
-
|
(567
|
)
|
4,933
|
|||||||||||
Total available-for-sale
|
185,317
|
-
|
(12,152
|
)
|
173,165
|
|||||||||||
Total debt securities
|
185,317
|
-
|
(12,152
|
)
|
173,165
|
(in thousands)
|
Amortized Cost
|
Fair Value
|
||||||
Available-for-sale as of September 30, 2023
|
||||||||
Due in one year or less
|
$
|
104,150
|
$
|
102,416
|
||||
Due after one year through five years
|
16,153
|
14,875
|
||||||
Due after five years through ten years
|
18,920
|
15,638
|
||||||
Due after ten years
|
162
|
129
|
||||||
Mortgage-backed securities
|
39,611
|
34,080
|
||||||
Total available-for-sale
|
|
178,996
|
|
167,138
|
(in thousands)
|
Amortized Cost
|
Fair Value
|
||||||
Available-for-sale as of December 31, 2022
|
||||||||
Due in one year or less
|
$
|
2,133
|
$
|
2,115
|
||||
Due after one year through five years
|
118,108
|
113,415
|
||||||
Due after five years through ten years
|
21,495
|
19,030
|
||||||
Due after ten years
|
628
|
531
|
||||||
Mortgage-backed securities
|
42,953
|
38,074
|
||||||
Total available-for-sale
|
|
185,317
|
|
173,165
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
(in thousands)
|
||||||||||||||||
Proceeds from sales, maturities, prepayments and calls
|
$
|
1,831
|
$
|
9,024
|
$
|
6,029
|
$
|
28,852
|
||||||||
Gross realized gains on sales, prepayments and calls
|
-
|
-
|
-
|
10
|
||||||||||||
Gross realized losses on sales, prepayments and calls
|
(7
|
)
|
(10
|
)
|
(15
|
)
|
(137
|
)
|
||||||||
Total realized (losses), net
|
$
|
(7
|
)
|
$
|
(10
|
)
|
$
|
(15
|
)
|
$
|
(127
|
)
|
(in thousands) |
September 30,
2023
|
December 31,
2022
|
||||||
Book value of pledged securities
|
$
|
21,322
|
$
|
85,280
|
Less than Twelve Months
|
Twelve Months or Longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Available-for-sale as of September 30, 2023
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
-
|
$
|
-
|
$
|
140
|
$
|
(6
|
)
|
$
|
140
|
$
|
(6
|
)
|
||||||||||
Mortgage-backed securities
|
-
|
-
|
34,080
|
(5,531
|
)
|
34,080
|
(5,531
|
)
|
||||||||||||||||
State and political subdivisions(1)
|
753
|
(7
|
)
|
24,471
|
(2,476
|
)
|
25,224
|
(2,483
|
)
|
|||||||||||||||
U.S. Treasuries
|
-
|
-
|
103,438
|
(2,594
|
)
|
103,438
|
(2,594
|
)
|
||||||||||||||||
Corporate debt securities
|
805
|
(195
|
)
|
3,451
|
(1,049
|
)
|
4,256
|
(1,244
|
)
|
|||||||||||||||
Total available-for-sale
|
$
|
1,558
|
$
|
(202
|
)
|
$
|
165,580
|
$
|
(11,656
|
)
|
$
|
167,138
|
$
|
(11,858
|
)
|
Less than Twelve Months
|
Twelve Months or Longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Available-for-sale as of December 31, 2022
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
1,142
|
$
|
(150
|
)
|
$
|
-
|
$
|
-
|
$
|
1,142
|
$
|
(150
|
)
|
||||||||||
Mortgage-backed securities
|
38,074
|
(4,879
|
)
|
-
|
-
|
38,074
|
(4,879
|
)
|
||||||||||||||||
State and political subdivisions
|
28,356
|
(2,276
|
)
|
-
|
-
|
28,356
|
(2,276
|
)
|
||||||||||||||||
U.S. Treasuries
|
100,660
|
(4,280
|
)
|
-
|
-
|
100,660
|
(4,280
|
)
|
||||||||||||||||
Corporate debt securities
|
4,933
|
(567
|
)
|
-
|
-
|
4,933
|
(567
|
)
|
||||||||||||||||
Total available-for-sale
|
$
|
173,165
|
$
|
(12,152
|
)
|
$
|
-
|
$
|
-
|
$
|
173,165
|
$
|
(12,152
|
)
|
Note 6: |
Loans and Allowance for Credit Losses
|
September 30,
2023
|
December 31,
2022
|
|||||||
Construction & development
|
$
|
139,053
|
$
|
163,203
|
||||
1 - 4 family real estate
|
91,540
|
76,928
|
||||||
Commercial real estate - other
|
516,975
|
439,001
|
||||||
Total commercial real estate
|
$ |
747,568
|
$ |
679,132
|
||||
Commercial & industrial
|
568,684
|
513,011
|
||||||
Agricultural
|
64,688
|
66,145
|
||||||
Consumer
|
14,993
|
14,949
|
||||||
Gross loans
|
1,395,933
|
1,273,237
|
||||||
Less allowance for credit losses
|
(20,649
|
)
|
(14,734
|
)
|
||||
Less deferred loan fees
|
(3,156
|
)
|
(2,781
|
)
|
||||
Net loans
|
$
|
1,372,128
|
$
|
1,255,722
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
September 30, 2023
|
||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,592
|
$
|
1,116
|
$
|
6,089
|
$
|
6,712
|
$
|
601
|
$
|
267
|
$
|
16,377
|
||||||||||||||
Charge-offs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
-
|
1
|
1
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
-
|
-
|
-
|
-
|
-
|
1
|
1
|
|||||||||||||||||||||
Provision (credit) for credit losses
|
(111
|
)
|
30
|
640
|
3,718
|
8
|
(14
|
)
|
4,271
|
|||||||||||||||||||
Balance, end of period
|
$
|
1,481
|
$
|
1,146
|
$
|
6,729
|
$
|
10,430
|
$
|
609
|
$
|
254
|
$
|
20,649
|
||||||||||||||
Unfunded Commitments
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 227 | $ | 4 | $ | 14 | $ | 305 | $ | 24 | $ | 2 | $ | 576 | ||||||||||||||
Provision (credit) for credit losses
|
(69 | ) | - | (6 | ) | (25 | ) | (13 | ) | 1 | (112 | ) | ||||||||||||||||
Balance, end of period
|
$ | 158 | $ | 4 | $ | 8 | $ | 280 | $ | 11 | $ | 3 | $ | 464 | ||||||||||||||
Total Allowance for Credit Losses
|
$ | 1,639 | $ | 1,150 | $ | 6,737 | $ | 10,710 | $ | 620 | $ | 257 | $ | 21,113 |
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
September 30, 2022
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,792
|
$
|
649
|
$
|
3,216
|
$
|
4,449
|
$
|
558
|
$
|
155
|
$
|
10,819
|
||||||||||||||
Charge-offs
|
-
|
-
|
-
|
-
|
-
|
(19
|
)
|
(19
|
)
|
|||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
-
|
5
|
5
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
-
|
-
|
-
|
-
|
-
|
(14
|
)
|
(14
|
)
|
|||||||||||||||||||
Provision (credit) for credit losses
|
466
|
150
|
746
|
829
|
137
|
20
|
2,348
|
|||||||||||||||||||||
Balance, end of period
|
$
|
2,258
|
$
|
799
|
$
|
3,962
|
$
|
5,278
|
$
|
695
|
$
|
161
|
$
|
13,153
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
|||||||||||||||||||||
September 30, 2023
|
||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,889
|
$
|
890
|
$
|
5,080
|
$
|
5,937
|
$
|
765
|
$
|
173
|
$
|
14,734
|
||||||||||||||
Impact of CECL adoption
|
44 | (138 | ) | (168 | ) | 716 | (149 | ) | (55 | ) | 250 | |||||||||||||||||
Charge-offs
|
-
|
-
|
-
|
-
|
(7
|
)
|
(16
|
)
|
(23
|
)
|
||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
2
|
5
|
7
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
-
|
-
|
-
|
-
|
(5
|
)
|
(11
|
)
|
(16
|
)
|
||||||||||||||||||
Provision (credit) for credit losses
|
(452
|
)
|
394
|
1,817
|
3,777
|
(2
|
)
|
147
|
5,681
|
|||||||||||||||||||
Balance, end of period
|
$
|
1,481
|
$
|
1,146
|
$
|
6,729
|
$
|
10,430
|
$
|
609
|
$
|
254
|
$
|
20,649
|
||||||||||||||
Unfunded Commitments
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Impact of CECL adoption
|
171 | 4 | 24 | 274 | 25 | 2 | 500 | |||||||||||||||||||||
Provision (credit) for credit losses
|
(13 | ) | - | (16 | ) | 6 | (14 | ) | 1 | (36 | ) | |||||||||||||||||
Balance, end of period
|
$ | 158 | $ | 4 | $ | 8 | $ | 280 | $ | 11 | $ | 3 | $ | 464 | ||||||||||||||
Total Allowance for Credit Losses | $ | 1,639 | $ | 1,150 | $ | 6,737 | $ | 10,710 | $ | 620 | $ | 257 | $ | 21,113 |
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
|||||||||||||||||||||
September 30, 2022
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,695
|
$
|
630
|
$
|
3,399
|
$
|
3,621
|
$
|
730
|
$
|
241
|
$
|
10,316
|
||||||||||||||
Charge-offs
|
-
|
-
|
-
|
-
|
-
|
(20
|
)
|
(20
|
)
|
|||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
-
|
14
|
14
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
-
|
-
|
-
|
-
|
-
|
(6
|
)
|
(6
|
)
|
|||||||||||||||||||
Provision (credit) for credit losses
|
563
|
169
|
563
|
1,657
|
(35
|
)
|
(74
|
)
|
2,843
|
|||||||||||||||||||
Balance, end of period
|
$
|
2,258
|
$
|
799
|
$
|
3,962
|
$
|
5,278
|
$
|
695
|
$
|
161
|
$
|
13,153
|
• |
Grade 1 (Pass) – These loans generally conform to Bank policies, and are characterized by policy conforming advance rates on collateral, and have well-defined repayment sources. In addition, these
credits are extended to borrowers and/or guarantors with a strong balance sheet and either substantial liquidity or a reliable income history.
|
|
• |
Grade
2 (Watch) – These
loans are still considered “Pass” credits; however, various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in loan documentation, or other risk issues determined by the Lending
Officer, Commercial Loan Committee (CLC), or Credit Quality Committee (CQC) warrant a heightened sense and frequency of monitoring.
|
|
• |
Grade
3 (Special Mention)
– These loans must have observable weaknesses or evidence of imprudent handling or structural issues. The weaknesses require close attention and the remediation of those weaknesses is necessary. No risk of probable loss exists.
Credits in this category are expected to quickly migrate to a “2” or a “4” as this is viewed as a transitory loan grade.
|
|
• |
Grade
4 (Substandard) –
These loans are not adequately protected by the sound worth and debt service capacity of the borrower, but may be well secured. They have defined weaknesses relative to cash flow, collateral, financial condition, or other factors that
might jeopardize repayment of all of the principal and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not remediated.
|
As of September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Revolving Loans Amortized Cost Basis
|
Total
|
||||||||||||||||||||||||
Construction & development
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
$
|
26,403
|
$
|
10,300
|
$
|
4,857
|
$
|
214
|
$
|
104
|
$
|
46
|
$
|
96,336
|
$
|
138,260
|
||||||||||||||||
2 (Watch)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
3 (Special Mention)
|
563
|
-
|
-
|
-
|
-
|
-
|
230
|
793
|
||||||||||||||||||||||||
4 (Substandard)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total construction & development
|
26,966
|
10,300
|
4,857
|
214
|
104
|
46
|
96,566
|
139,053
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
1 - 4 family real estate
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
31,511
|
27,605
|
14,110
|
4,540
|
1,847
|
1,141
|
10,786
|
91,540
|
||||||||||||||||||||||||
2 (Watch)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
4 (Substandard)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total 1 - 4 family real estate
|
31,511
|
27,605
|
14,110
|
4,540
|
1,847
|
1,141
|
10,786
|
91,540
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial real estate - other
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
147,441
|
159,184
|
36,185
|
42,601
|
3,657
|
4,139
|
107,802
|
501,009
|
||||||||||||||||||||||||
2 (Watch)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
3 (Special Mention)
|
14,738
|
-
|
-
|
-
|
-
|
1,094
|
-
|
15,832
|
||||||||||||||||||||||||
4 (Substandard)
|
-
|
-
|
-
|
-
|
-
|
134
|
-
|
134
|
||||||||||||||||||||||||
Total commercial real estate - other
|
162,179
|
159,184
|
36,185
|
42,601
|
3,657
|
5,367
|
107,802
|
516,975
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial and industrial
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
142,077
|
68,443
|
41,428
|
3,129
|
1,849
|
4,130
|
242,714
|
503,770
|
||||||||||||||||||||||||
2 (Watch)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
3 (Special Mention)
|
10,452
|
-
|
-
|
-
|
-
|
-
|
1,333
|
11,785
|
||||||||||||||||||||||||
4 (Substandard)
|
42,744
|
7,963
|
112
|
12
|
-
|
-
|
2,298
|
53,129
|
||||||||||||||||||||||||
Total commercial and industrial
|
195,273
|
76,406
|
41,540
|
3,141
|
1,849
|
4,130
|
246,345
|
568,684
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Agriculural
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
5,993
|
6,291
|
24,893 |
4,535
|
1,109
|
1,300
|
20,460
|
64,581
|
||||||||||||||||||||||||
2 (Watch)
|
56
|
51
|
-
|
-
|
-
|
-
|
-
|
107
|
||||||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
4 (Substandard)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total agriculural
|
6,049
|
6,342
|
24,893
|
4,535
|
1,109
|
1,300
|
20,460
|
64,688
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
- | 7 | - | - | - | - | - | 7 | ||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
3,649
|
1,988
|
2,799
|
2,900
|
705
|
1,934
|
938
|
14,913
|
||||||||||||||||||||||||
2 (Watch)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
4 (Substandard)
|
-
|
-
|
-
|
-
|
-
|
80
|
-
|
80
|
||||||||||||||||||||||||
Total consumer
|
3,649
|
1,988
|
2,799
|
2,900
|
705
|
2,014
|
938
|
14,993
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
11 | - | - | - | 5 | - | - | 16 | ||||||||||||||||||||||||
Total loans held for investment
|
$
|
425,627
|
$
|
281,825
|
$
|
124,384
|
$
|
57,931
|
$
|
9,271
|
$
|
13,998
|
$
|
482,897
|
$
|
1,395,933
|
||||||||||||||||
Total current-period gross charge-offs
|
$ | 11 | $ | 7 | $ | - | $ | - | $ | 5 | $ | - | $ | - | $ | 23 |
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
|||||||||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
163,203
|
$
|
76,928
|
$
|
397,295
|
$
|
493,412
|
$
|
65,857
|
$
|
14,927
|
$
|
1,211,622
|
||||||||||||||
2 (Watch)
|
-
|
-
|
14,976
|
-
|
288
|
-
|
15,264
|
|||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
24,747
|
584
|
-
|
-
|
25,331
|
|||||||||||||||||||||
4 (Substandard)
|
-
|
-
|
1,983
|
19,015
|
-
|
22
|
21,020
|
|||||||||||||||||||||
Total
|
$
|
163,203
|
$
|
76,928
|
$
|
439,001
|
$
|
513,011
|
$
|
66,145
|
$
|
14,949
|
$
|
1,273,237
|
|
Past Due
|
Total Loans |
||||||||||||||||||||||||||
30–59
Days
|
60–89
Days
|
Greater than
90 Days
|
Total
|
Current
|
Total
Loans
|
> 90 Days &
Accruing
|
||||||||||||||||||||||
September 30, 2023
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
139,053
|
$
|
139,053
|
$
|
-
|
||||||||||||||
1 - 4 family real estate
|
-
|
-
|
-
|
-
|
91,540
|
91,540
|
-
|
|||||||||||||||||||||
Commercial real estate - other
|
134
|
-
|
-
|
134
|
516,841
|
516,975
|
-
|
|||||||||||||||||||||
Commercial & industrial(1)
|
58
|
-
|
9,776
|
9,834
|
558,850
|
568,684
|
9,776
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
64,688
|
64,688
|
-
|
|||||||||||||||||||||
Consumer
|
123
|
-
|
80
|
203
|
14,790
|
14,993
|
80
|
|||||||||||||||||||||
Total
|
$
|
315
|
$
|
-
|
$
|
9,856
|
$
|
10,171
|
$
|
1,385,762
|
$
|
1,395,933
|
$
|
9,856
|
||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
163,203
|
$
|
163,203
|
$
|
-
|
||||||||||||||
1 - 4 family real estate
|
-
|
-
|
-
|
-
|
76,928
|
76,928
|
-
|
|||||||||||||||||||||
Commercial real estate - other
|
-
|
617
|
-
|
617
|
438,384
|
439,001
|
-
|
|||||||||||||||||||||
Commercial & industrial(1)
|
21
|
-
|
9,923
|
9,944
|
503,067
|
513,011
|
9,923
|
|||||||||||||||||||||
Agricultural
|
4
|
-
|
-
|
4
|
66,141
|
66,145
|
-
|
|||||||||||||||||||||
Consumer
|
291
|
82
|
22
|
395
|
14,554
|
14,949
|
18
|
|||||||||||||||||||||
Total
|
$
|
316
|
$
|
699
|
$
|
9,945
|
$
|
10,960
|
$
|
1,262,277
|
$
|
1,273,237
|
$
|
9,941
|
|
Recorded
|
Recorded
|
||||||||||||||||||||||
|
Amortized
|
Investment
|
Investment
|
Total
|
Interest
|
|||||||||||||||||||
|
Cost
|
with No
|
with an
|
Recorded
|
Related
|
Income
|
||||||||||||||||||
|
Basis
|
Allowance
|
Allowance
|
Investment
|
Allowance
|
Recognized
|
||||||||||||||||||
September 30, 2023
|
||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
1 - 4 Family Real Estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial Real Estate - other
|
134
|
134
|
-
|
134
|
-
|
16
|
||||||||||||||||||
Commercial & industrial
|
41,109
|
14,378
|
26,731
|
41,109
|
3,115
|
2,609
|
||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
41,243
|
$
|
14,512
|
$
|
26,731
|
$
|
41,243
|
$
|
3,115
|
$
|
2,625
|
|
Recorded
|
Recorded
|
||||||||||||||||||||||||||
|
Unpaid
|
Investment
|
Investment
|
Total
|
Average
|
Interest
|
||||||||||||||||||||||
|
Principal
|
with No
|
with an
|
Recorded
|
Related
|
Recorded
|
Income
|
|||||||||||||||||||||
|
Balance
|
Allowance
|
Allowance
|
Investment
|
Allowance
|
Investment
|
Recognized
|
|||||||||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
21
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Commercial Real Estate - other
|
2,808
|
1,983
|
-
|
1,983
|
-
|
11,749
|
141
|
|||||||||||||||||||||
Commercial & industrial
|
19,882
|
18,882
|
133
|
19,015
|
133
|
11,773
|
1,214
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
14
|
-
|
|||||||||||||||||||||
Consumer
|
31
|
22
|
-
|
22
|
-
|
27
|
-
|
|||||||||||||||||||||
Total
|
$
|
22,721
|
$
|
20,887
|
$
|
133
|
$
|
21,020
|
$
|
133
|
$
|
23,584
|
$
|
1,355
|
|
|
Collateral Type
|
|||||||||||||||||||
|
Business
|
Specific
|
||||||||||||||||||
|
Real Estate
|
Assets
|
Other Assets
|
Total
|
Allocation
|
|||||||||||||||
September 30, 2023
|
||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
1 - 4 Family Real Estate
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Commercial Real Estate - other
|
134
|
-
|
-
|
134
|
-
|
|||||||||||||||
Commercial & industrial
|
-
|
43,237
|
9,776
|
53,013
|
3,000
|
|||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Consumer
|
-
|
-
|
80
|
80
|
-
|
|||||||||||||||
Total
|
$
|
134
|
$
|
43,237
|
$
|
9,856
|
$
|
53,227
|
$
|
3,000
|
|
Term Extension and Payment Deferral
|
||||||||
|
Amortized Cost Basis
|
% of Total Class
|
Financial Effect
|
||||||
|
|
||||||||
September
30, 2023
|
|
||||||||
Construction & development
|
$
|
-
|
-
|
%
|
|
||||
1 - 4 Family Real Estate
|
-
|
-
|
|
||||||
Commercial Real Estate - other
|
-
|
-
|
|
||||||
Commercial & industrial
|
26,615
|
4.6
|
Extended the maturity of loan by four months, and payment of principal and interest deferred until the sale of collateral
|
||||||
Agricultural
|
-
|
-
|
|
||||||
Consumer
|
-
|
-
|
|
||||||
|
|
||||||||
Total
|
$
|
26,615
|
4.6
|
%
|
|
|
Current
|
30-89 Days Past Due
|
90+ Days Past Due
|
Non-Accruing
|
||||||||||||
|
||||||||||||||||
September 30, 2023
|
||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
1 - 4 Family Real Estate
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial Real Estate - other
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial & industrial
|
-
|
-
|
-
|
26,615
|
||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
|
||||||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
26,615
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||||||
Nonaccrual loans
|
$
|
-
|
$
|
-
|
$
|
1,348
|
$
|
6,686
|
$
|
-
|
$
|
5
|
$
|
8,039
|
||||||||||||||
Troubled-debt restructurings (1)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Accruing loans 90 or more days past due
|
-
|
-
|
-
|
9,923
|
-
|
18
|
9,941
|
|||||||||||||||||||||
Total nonperforming loans
|
$
|
-
|
$
|
-
|
$
|
1,348
|
$
|
16,609
|
$
|
-
|
$
|
23
|
$
|
17,980
|
(1)
|
$1.2 million of TDRs as of December 31, 2022, are included in the nonaccrual loans balance.
|
Note 7: |
Shareholders’ Equity
|
Nine Months Ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
Number of shares repurchased | - | - | ||||||
Average price of shares repurchased
|
$
|
-
|
$
|
-
|
||||
Shares remaining to be repurchased | 750,000 | 750,000 |
Actual
|
Minimum
Capital Requirements
|
With Capital
Conservation Buffer
|
Minimum
To Be Well Capitalized
Under Prompt
Corrective Action
|
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||||||||
As of September 30, 2023
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
185,826
|
12.64
|
%
|
$
|
117,623
|
8.00
|
%
|
$
|
154,381
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
185,773
|
12.64
|
%
|
117,542
|
8.00
|
%
|
154,273
|
10.50
|
%
|
|
146,927
|
10.00
|
%
|
|||||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
167,419
|
11.39
|
%
|
88,218
|
6.00
|
%
|
124,975
|
8.50
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
167,379
|
11.39
|
%
|
88,156
|
6.00
|
%
|
124,888
|
8.50
|
%
|
117,542
|
8.00
|
%
|
||||||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
167,419
|
11.39
|
%
|
66,163
|
4.50
|
%
|
102,921
|
7.00
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
167,379
|
11.39
|
%
|
66,117
|
4.50
|
%
|
102,849
|
7.00
|
%
|
95,503
|
6.50
|
%
|
||||||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
167,419
|
9.76
|
%
|
68,634
|
4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
Bank
|
167,379
|
9.75
|
%
|
68,644
|
4.00
|
%
|
N/A
|
N/A
|
85,805
|
5.00
|
%
|
|||||||||||||||||||||
As of December 31, 2022
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
158,158
|
12.41
|
%
|
$
|
101,990
|
8.00
|
%
|
$
|
133,862
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
158,158
|
12.42
|
%
|
101,909
|
8.00
|
%
|
133,756
|
10.50
|
%
|
$
|
127,387
|
10.00
|
%
|
|||||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
143,424
|
11.25
|
%
|
76,493
|
6.00
|
%
|
108,365
|
8.50
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
143,424
|
11.26
|
%
|
76,432
|
6.00
|
%
|
108,279
|
8.50
|
%
|
101,909
|
8.00
|
%
|
||||||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
143,424
|
11.25
|
%
|
57,370
|
4.50
|
%
|
89,241
|
7.00
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
143,424
|
11.26
|
%
|
57,324
|
4.50
|
%
|
89,171
|
7.00
|
%
|
82,801
|
6.50
|
%
|
||||||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
143,424
|
9.19
|
%
|
62,460
|
4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
Bank
|
143,424
|
9.18
|
%
|
62,489
|
4.00
|
%
|
N/A
|
N/A
|
78,111
|
5.00
|
%
|
Note 8:
|
Related-Party Transactions
|
Note 9:
|
Employee Benefits
|
Options
|
Wgtd. Avg.
Exercise Price
|
Wgtd. Avg.
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Nine Months Ended September 30, 2023
|
||||||||||||||||
Outstanding at December 31, 2022
|
251,550
|
$
|
17.52
|
|||||||||||||
Options Granted
|
-
|
-
|
||||||||||||||
Options Exercised
|
26,986
|
17.83
|
||||||||||||||
Options Forfeited
|
(2,188
|
)
|
-
|
|||||||||||||
Outstanding at September 30, 2023
|
222,376
|
17.51
|
5.90
|
$
|
1,119,462
|
|||||||||||
Exercisable at September 30, 2023
|
174,621
|
18.00
|
5.52
|
$
|
787,299
|
For the Nine Months Ended | ||||
September 30,
2023
|
||||
Risk-free interest rate
|
3.47
|
%
|
||
Dividend yield
|
1.96
|
%
|
||
Stock price volatility
|
34.92
|
%
|
||
Expected term
|
7.01
|
|
Number of
Shares
|
Wgtd. Avg.
Grant Date
Fair Value
|
||||||
Nine Months Ended September 30, 2023
|
||||||||
Outstanding at December 31, 2022
|
112,591
|
$
|
19.15
|
|||||
Shares granted
|
163,311
|
29.76
|
||||||
Shares vested
|
(40,734
|
)
|
19.04
|
|||||
Shares forfeited
|
(7,087
|
)
|
27.34
|
|||||
End of the period balance
|
228,081
|
$
|
26.51
|
Number of
Shares
|
Wgtd. Avg.
Grant Date
Fair Value
|
|||||||
Nine Months Ended September 30, 2022
|
||||||||
Outstanding at December 31, 2021
|
172,993
|
$
|
19.02
|
|||||
Shares granted
|
3,000
|
4.03
|
||||||
Shares vested
|
(41,584
|
)
|
17.93
|
|||||
Shares forfeited
|
(750
|
)
|
22.13
|
|||||
End of the period balance
|
133,659
|
$
|
19.01
|
Note 10: |
Disclosures About Fair Value of Assets and Liabilities
|
|
Level 1 |
Quoted prices
in active markets for identical assets or liabilities
|
|
Level 2 |
Observable
inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities
|
|
Level 3 |
Unobservable
inputs supported by little or no market activity and significant to the fair value of the assets or liabilities
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
September 30, 2023
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
37,501
|
$
|
-
|
$
|
-
|
$
|
37,501
|
||||||||
December 31, 2022
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
6,553
|
$
|
-
|
$
|
-
|
$
|
6,553
|
Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Weighted-
Average
|
||||||||
September 30, 2023
|
|||||||||||
Collateral-dependent impaired loans
|
$
|
37,501
|
Appraisals from comparable assets
|
Estimated cost to sell
|
20 |
%
|
|||||
December 31, 2022
|
|||||||||||
Collateral-dependent impaired loans
|
$
|
6,553
|
Appraisals from comparable assets
|
Estimated cost to sell
|
20 | % |
|
Carrying |
Fair Value Measurements
|
||||||||||||||||||
|
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||
September 30, 2023
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
169,490
|
$
|
169,490
|
$
|
-
|
$
|
-
|
$
|
169,490
|
||||||||||
Interest-bearing time
deposits in other banks
|
17,182
|
-
|
17,182
|
-
|
17,182
|
|||||||||||||||
Loans, net of allowance
|
1,372,128
|
-
|
1,331,087
|
37,501
|
1,368,588
|
|||||||||||||||
Loans held for sale
|
1,143 | - | 1,143 | - | 1,143 | |||||||||||||||
Nonmarketable equity securities
|
1,251
|
-
|
1,251
|
-
|
1,251
|
|||||||||||||||
Interest receivable
|
8,769
|
-
|
8,769
|
-
|
8,769
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
1,593,572
|
$
|
-
|
$
|
1,591,894
|
$
|
-
|
$
|
1,591,894
|
||||||||||
Interest payable
|
1,334
|
-
|
1,334
|
-
|
1,334
|
|||||||||||||||
December 31, 2022
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
109,115
|
$
|
109,115
|
$
|
-
|
$
|
-
|
$
|
109,115
|
||||||||||
Interest-bearing time
deposits in other banks
|
5,474
|
-
|
5,474
|
-
|
5,474
|
|||||||||||||||
Loans, net of allowance
|
1,255,722
|
-
|
1,245,825
|
6,553
|
1,252,378
|
|||||||||||||||
Nonmarketable equity securities
|
1,209
|
-
|
1,209
|
-
|
1,209
|
|||||||||||||||
Interest receivable
|
8,124
|
-
|
8,124
|
-
|
8,124
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
1,431,400
|
$
|
-
|
$
|
1,429,565
|
$
|
-
|
$
|
1,429,565
|
||||||||||
Interest payable
|
339
|
-
|
339
|
-
|
339
|
Note 11: |
Financial Instruments with Off-Balance Sheet Risk
|
September 30,
2023
|
December 31,
2022
|
|||||||
Commitments to extend credit
|
$
|
245,079
|
$
|
198,027
|
||||
Financial and performance standby letters of credit
|
2,148
|
1,043
|
||||||
$
|
247,227
|
$
|
199,070
|
Note 12: |
Significant Estimates and Concentrations
|
Note 13: |
Subsequent Events
|
Net Interest Margin
|
||||||||||||||||||||||||
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Short-term investments
|
$
|
176,589
|
$
|
2,062
|
4.63
|
%
|
$
|
99,751
|
$
|
445
|
1.77
|
%
|
||||||||||||
Debt securities, taxable
|
151,174
|
699
|
1.83
|
163,699
|
690
|
1.67
|
||||||||||||||||||
Debt securities, tax exempt(1)
|
19,430
|
81
|
1.65
|
21,811
|
90
|
1.64
|
||||||||||||||||||
Loans held for sale
|
232
|
-
|
-
|
1,281
|
-
|
-
|
||||||||||||||||||
Total loans(2)
|
1,344,038
|
28,880
|
8.52
|
1,213,080
|
20,466
|
6.69
|
||||||||||||||||||
Total interest-earning assets
|
1,691,463
|
31,722
|
7.44
|
1,499,622
|
21,691
|
5.74
|
||||||||||||||||||
Noninterest-earning assets
|
23,407
|
23,197
|
||||||||||||||||||||||
Total assets
|
$
|
1,714,870
|
$
|
1,522,819
|
||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
823,331
|
7,733
|
3.73
|
%
|
$
|
761,927
|
2,338
|
1.22
|
%
|
||||||||||||||
Time deposits
|
292,235
|
3,243
|
4.40
|
152,910
|
308
|
0.80
|
||||||||||||||||||
Total interest-bearing deposits
|
1,115,566
|
10,976
|
3.90
|
914,837
|
2,646
|
1.15
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
1,115,566
|
10,976
|
3.90
|
$
|
914,837
|
2,646
|
1.15
|
||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
422,691
|
$
|
463,882
|
||||||||||||||||||||
Other noninterest-bearing liabilities
|
11,649
|
8,132
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
434,340
|
472,014
|
||||||||||||||||||||||
Shareholders' equity
|
164,964
|
135,968
|
||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,714,870
|
$
|
1,522,819
|
||||||||||||||||||||
Net interest income
|
$
|
20,746
|
$
|
19,045
|
||||||||||||||||||||
Net interest spread
|
3.54
|
%
|
4.59
|
%
|
||||||||||||||||||||
Net interest margin
|
4.87
|
%
|
5.04
|
%
|
(1) |
Taxable-equivalent yield of 2.15% as of September 30, 2023, applying a 23.0% effective tax rate
|
(2) |
Non-accrual loans of $41.2 million and $8.2 million as of September 30, 2023 and September 30, 2022, respectively, are included in loans.
|
|
- |
Interest income on total loans totaled $28.9 million, an increase of $8.4 million or 41.1%, due to an increase in average loans of $131.0 million, or 10.8%, and increased loan yields;
|
|
- |
Loan yields totaled 8.52% compared to 6.69% for the same period in 2022, primarily due to the continued fed rate hikes; and
|
|
- |
Net interest margin for the third quarter of 2023 was 4.87% compared to 5.04% for the third quarter of 2022.
|
Net Interest Margin
|
||||||||||||||||||||||||
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Short-term investments
|
$
|
162,432
|
$
|
5,668
|
4.67
|
%
|
$
|
139,133
|
$
|
793
|
0.76
|
%
|
||||||||||||
Debt securities, taxable
|
152,702
|
2,106
|
1.84
|
142,913
|
1,625
|
1.52
|
||||||||||||||||||
Debt securities, tax exempt(1)
|
19,828
|
253
|
1.71
|
22,087
|
273
|
1.65
|
||||||||||||||||||
Loans held for sale
|
115
|
-
|
-
|
686
|
-
|
-
|
||||||||||||||||||
Total loans(2)
|
1,299,754
|
81,117
|
8.34
|
1,103,114
|
50,597
|
6.13
|
||||||||||||||||||
Total interest-earning assets
|
1,634,831
|
$
|
89,144
|
7.29
|
1,407,933
|
53,288
|
5.06
|
|||||||||||||||||
Noninterest-earning assets
|
22,560
|
24,069
|
||||||||||||||||||||||
Total assets
|
$
|
1,657,391
|
$
|
1,432,002
|
||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
812,962
|
20,346
|
3.35
|
%
|
$
|
699,670
|
3,351
|
0.64
|
%
|
||||||||||||||
Time deposits
|
257,418
|
7,548
|
3.92
|
168,608
|
890
|
0.71
|
||||||||||||||||||
Total interest-bearing deposits
|
1,070,380
|
27,894
|
3.48
|
868,278
|
4,241
|
0.65
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
1,070,380
|
27,894
|
3.48
|
868,278
|
4,241
|
0.65
|
|||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
420,356
|
424,720
|
|||||||||||||||||||||
Other noninterest-bearing liabilities
|
10,496
|
7,128
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
430,852
|
431,848
|
||||||||||||||||||||||
Shareholders' equity
|
156,159
|
131,876
|
||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,657,391
|
$
|
1,432,002
|
||||||||||||||||||||
Net interest income
|
$
|
61,250
|
$
|
49,047
|
||||||||||||||||||||
Net interest spread
|
3.81
|
%
|
4.41
|
%
|
||||||||||||||||||||
Net interest margin
|
5.01
|
%
|
4.66
|
%
|
(1) |
Taxable-equivalent yield of 2.24% as of September 30, 2023, applying a 23.7% effective tax rate
|
(2) |
Non-accrual loans of $41.2 million and $8.2 million as of September 30, 2023 and September 30, 2022, respectively, are included in loans.
|
|
- |
Interest income on total loans totaled $81.2 million, an increase of $30.5 million or 60.3%, due to an increase in average loans of $196.6 million, or 17.8%, and increased loan yields;
|
|
- |
Loan yields totaled 8.3% compared to 6.1% for the same period in 2022, primarily due to the continued fed rate hikes;
|
|
- |
Interest income on debt securities totaled $2.4 million an increase of $461,000 or 24.3%, as a result of debt securities purchased during the first quarter of 2022; and
|
|
- |
Net interest margin for the first nine months of 2023 was 5.01% compared to 4.66% for the same period in 2022.
|
Analysis of Changes in Interest Income and Expenses
|
||||||||||||
For the Three Months Ended
September 30, 2023 vs 2022
|
||||||||||||
Change due to:
|
|
|||||||||||
Volume(1)
|
Rate(1)
|
Interest
Variance |
||||||||||
(Dollars in thousands)
|
||||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Short-term investments
|
$
|
343
|
$
|
1,274
|
$
|
1,617
|
||||||
Debt securities
|
(63
|
)
|
63
|
-
|
||||||||
Total loans
|
2,208
|
6,206
|
8,414
|
|||||||||
Total increase (decrease) in interest income
|
2,488
|
7,543
|
10,031
|
|||||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Transaction accounts
|
189
|
5,206
|
5,395
|
|||||||||
Time deposits
|
281
|
2,654
|
2,935
|
|||||||||
Total interest-bearing deposits
|
470
|
7,860
|
8,330
|
|||||||||
Total increase (decrease) in interest expense
|
470
|
7,860
|
8,330
|
|||||||||
Increase (Decrease) in net interest income
|
$
|
2,018
|
$
|
(317
|
)
|
$
|
1,701
|
Analysis of Changes in Interest Income and Expenses
|
||||||||||||
For the Nine Months Ended
September 30, 2023 vs 2022
|
||||||||||||
Change due to:
|
||||||||||||
Volume(1)
|
Rate(1)
|
Interest
Variance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Short-term investments
|
$
|
45
|
$
|
4,830
|
$
|
4,875
|
||||||
Debt securities
|
29
|
432
|
461
|
|||||||||
Total loans
|
3,038
|
27,482
|
30,520
|
|||||||||
Total increase (decrease) in interest income
|
3,112
|
32,744
|
35,856
|
|||||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Transaction accounts
|
183
|
16,812
|
16,995
|
|||||||||
Time deposits
|
159
|
6,499
|
6,658
|
|||||||||
Total interest-bearing deposits
|
342
|
23,311
|
23,653
|
|||||||||
Total increase (decrease) in interest expense
|
342
|
23,311
|
23,653
|
|||||||||
Increase (Decrease) in net interest income
|
$
|
2,770
|
$
|
9,433
|
$
|
12,203
|
As of September 30, 2023
|
||||||||||||||||||||||||||||||||||||||||
Within One Year
|
After One Year But
Within Five Years |
After Five Years But
Within Ten Years |
After Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
|||||||||||||||||||||||||||||||
Available-for-sale
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
32
|
2.39
|
%
|
$
|
108
|
2.93
|
%
|
$
|
-
|
0
|
%
|
$
|
-
|
0
|
%
|
$
|
140
|
2.81
|
%
|
||||||||||||||||||||
Mortgage-backed securities
|
-
|
1.22
|
10,403
|
1.31
|
2,359
|
1.54
|
21,318
|
1.70
|
34,080
|
1.57
|
||||||||||||||||||||||||||||||
State and political subdivisions
|
4,032
|
1.20
|
13,017
|
1.24
|
8,046
|
1.54
|
129
|
1.66
|
25,224
|
1.33
|
||||||||||||||||||||||||||||||
U.S. Treasuries
|
98,352
|
1.19
|
1,750
|
1.01
|
3,336
|
1.54
|
-
|
-
|
103,438
|
1.18
|
||||||||||||||||||||||||||||||
Corporate debt securities
|
-
|
-
|
-
|
-
|
4,256
|
1.54
|
-
|
-
|
4,256
|
3.36
|
||||||||||||||||||||||||||||||
Total
|
$
|
102,416
|
1.19
|
%
|
$
|
25,278
|
1.26
|
%
|
$
|
17,997
|
1.91
|
%
|
$
|
21,447
|
1.70
|
%
|
$
|
167,138
|
1.36
|
%
|
||||||||||||||||||||
Percentage of total
|
61.28
|
%
|
15.12
|
%
|
10.77
|
%
|
12.83
|
%
|
100.00
|
%
|
For the Three Months Ended
|
||||||||||||||||
September 30,
|
||||||||||||||||
2023
|
2022
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest income:
|
||||||||||||||||
Mortgage lending income
|
$
|
6
|
$
|
134
|
$
|
(128
|
)
|
-95.52
|
%
|
|||||||
Loss on sales of available-for-sale debt securities
|
(7
|
)
|
(10
|
)
|
3
|
-30.00
|
%
|
|||||||||
Service charges on deposit accounts
|
213
|
210
|
3
|
1.43
|
%
|
|||||||||||
Other income and fees
|
795
|
506
|
289
|
57.11
|
%
|
|||||||||||
Total noninterest income
|
$
|
1,007
|
$
|
840
|
$
|
167
|
19.88
|
%
|
For the Nine Months Ended
|
||||||||||||||||
September 30,
|
||||||||||||||||
2023
|
2022
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest income:
|
||||||||||||||||
Mortgage lending income
|
$
|
172
|
$
|
395
|
$
|
(223
|
)
|
-56.46
|
%
|
|||||||
Loss on sales of available-for-sale debt securities
|
(15
|
)
|
(127
|
)
|
112
|
-88.19
|
%
|
|||||||||
Service charges on deposit accounts
|
647
|
678
|
(31
|
)
|
-4.57
|
%
|
||||||||||
Other income and fees
|
1,668
|
1,261
|
407
|
32.28
|
%
|
|||||||||||
Total noninterest income
|
$
|
2,472
|
$
|
2,207
|
$
|
265
|
12.01
|
%
|
For the Three Months Ended
|
||||||||||||||||
September 30,
|
||||||||||||||||
2023
|
2022
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
$
|
4,910
|
$
|
3,996
|
$
|
914
|
22.87
|
%
|
||||||||
Furniture and equipment
|
254
|
390
|
(136
|
)
|
-34.87
|
%
|
||||||||||
Occupancy
|
662
|
614
|
48
|
7.82
|
%
|
|||||||||||
Data and item processing
|
424
|
522
|
(98
|
)
|
-18.77
|
%
|
||||||||||
Accounting, marketing, and legal fees
|
14
|
340
|
(326
|
)
|
-95.88
|
%
|
||||||||||
Regulatory assessments
|
279
|
551
|
(272
|
)
|
-49.36
|
%
|
||||||||||
Advertising and public relations
|
74
|
83
|
(9
|
)
|
-10.84
|
%
|
||||||||||
Travel, lodging and entertainment
|
85
|
94
|
(9
|
)
|
-9.57
|
%
|
||||||||||
Other expense
|
688
|
543
|
145
|
26.70
|
%
|
|||||||||||
Total noninterest expense
|
$
|
7,390
|
$
|
7,133
|
$
|
257
|
3.60
|
%
|
For the Nine Months Ended
|
||||||||||||||||
September 30,
|
||||||||||||||||
2023
|
2022
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
$
|
14,299
|
$
|
12,148
|
$
|
2,151
|
17.71
|
%
|
||||||||
Furniture and equipment
|
755
|
1,134
|
(379
|
)
|
-33.42
|
%
|
||||||||||
Occupancy
|
1,980
|
1,736
|
244
|
14.06
|
%
|
|||||||||||
Data and item processing
|
1,280
|
1,468
|
(188
|
)
|
-12.81
|
%
|
||||||||||
Accounting, marketing, and legal fees
|
491
|
782
|
(291
|
)
|
-37.21
|
%
|
||||||||||
Regulatory assessments
|
1,013
|
973
|
40
|
4.11
|
%
|
|||||||||||
Advertising and public relations
|
273
|
314
|
(41
|
)
|
-13.06
|
%
|
||||||||||
Travel, lodging and entertainment
|
255
|
216
|
39
|
18.06
|
%
|
|||||||||||
Other expense
|
2,068
|
1,745
|
323
|
18.51
|
%
|
|||||||||||
Total noninterest expense
|
$
|
22,414
|
$
|
20,516
|
$
|
1,898
|
9.25
|
%
|
As of September 30,
|
As of December 31
|
|||||||||||||||
2023
|
2022
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Construction & development
|
$
|
139,053
|
10.0
|
%
|
$
|
163,203
|
12.8
|
%
|
||||||||
1-4 family real estate
|
91,540
|
6.6
|
%
|
76,928
|
6.0
|
%
|
||||||||||
Commercial real estate - other
|
516,975
|
37.0
|
%
|
439,001
|
34.5
|
%
|
||||||||||
Total commercial real estate
|
747,568
|
53.6
|
%
|
679,132
|
53.3
|
%
|
||||||||||
Commercial & industrial
|
568,684
|
40.7
|
%
|
513,011
|
40.3
|
%
|
||||||||||
Agricultural
|
64,688
|
4.6
|
%
|
66,145
|
5.2
|
%
|
||||||||||
Consumer
|
14,993
|
1.1
|
%
|
14,949
|
1.2
|
%
|
||||||||||
Gross loans
|
1,395,933
|
100.0
|
%
|
1,273,237
|
100.0
|
%
|
||||||||||
Less: unearned income, net
|
(3,156
|
)
|
(2,781
|
)
|
||||||||||||
Total Loans, net of unearned income
|
1,392,777
|
1,270,456
|
||||||||||||||
Less: Allowance for credit losses
|
(20,649
|
)
|
(14,734
|
)
|
||||||||||||
Net loans
|
$
|
1,372,128
|
$
|
1,255,722
|
As of September 30, 2023
|
||||||||||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years |
Due after Five Years
Through Fifteen Years |
Due after Fifteen Years
|
|||||||||||||||||||||||||||||||||
Fixed
Rate |
Adjustable
Rate |
Fixed
Rate |
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
7,306
|
$
|
68,731
|
$
|
6,742
|
$
|
42,350
|
$
|
-
|
$
|
13,589
|
$
|
335
|
$
|
-
|
$
|
139,053
|
||||||||||||||||||
1-4 family real estate
|
10,760
|
11,164
|
39,491
|
19,148
|
28
|
5,435
|
5,514
|
-
|
91,540
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
46,278
|
77,209
|
153,640
|
206,163
|
137
|
21,946
|
11,602
|
-
|
516,975
|
|||||||||||||||||||||||||||
Total commercial real estate
|
64,344
|
157,104
|
199,873
|
267,661
|
165
|
40,970
|
17,451
|
-
|
747,568
|
|||||||||||||||||||||||||||
Commercial & industrial
|
15,460
|
331,247
|
41,492
|
166,400
|
3,452
|
10,013
|
620
|
-
|
568,684
|
|||||||||||||||||||||||||||
Agricultural
|
13,063
|
25,091
|
9,185
|
13,165
|
59
|
1,254
|
2,871
|
-
|
64,688
|
|||||||||||||||||||||||||||
Consumer
|
2,388
|
17
|
5,897
|
110
|
582
|
2,908
|
3,091
|
-
|
14,993
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
95,255
|
$
|
513,459
|
$
|
256,447
|
$
|
447,336
|
$
|
4,258
|
$
|
55,145
|
$
|
24,033
|
$
|
-
|
$
|
1,395,933
|
As of December 31, 2022
|
||||||||||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years |
Due after Five Years
Through Fifteen Years |
Due after Fifteen Years
|
|||||||||||||||||||||||||||||||||
Fixed
Rate |
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate |
Total
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
11,749
|
$
|
81,002
|
$
|
7,556
|
$
|
57,439
|
$
|
-
|
$
|
1,160
|
$
|
-
|
$
|
4,297
|
$
|
163,203
|
||||||||||||||||||
1-4 family real estate
|
10,550
|
12,664
|
24,741
|
15,782
|
314
|
6,606
|
-
|
6,271
|
76,928
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
2,680
|
59,870
|
131,105
|
207,819
|
6,635
|
17,146
|
-
|
13,746
|
439,001
|
|||||||||||||||||||||||||||
Total commercial real estate
|
24,979
|
153,536
|
163,402
|
281,040
|
6,949
|
24,912
|
-
|
24,314
|
679,132
|
|||||||||||||||||||||||||||
Commercial & industrial
|
43,823
|
234,573
|
60,275
|
159,571
|
3,745
|
10,390
|
-
|
634
|
513,011
|
|||||||||||||||||||||||||||
Agricultural
|
1,798
|
17,514
|
8,767
|
33,270
|
469
|
980
|
140
|
3,207
|
66,145
|
|||||||||||||||||||||||||||
Consumer
|
1,683
|
22
|
6,310
|
156
|
587
|
2,860
|
82
|
3,249
|
14,949
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
72,283
|
$
|
405,645
|
$
|
238,754
|
$
|
474,037
|
$
|
11,750
|
$
|
39,142
|
$
|
222
|
$
|
31,404
|
$
|
1,273,237
|
For the Nine Months Ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
(Dollars in thousands)
|
||||||||
Balance at beginning of the period
|
$
|
14,734
|
$
|
10,316
|
||||
Impact of CECL adoption
|
250
|
-
|
||||||
Provision for credit losses for loans
|
5,681
|
2,843
|
||||||
Charge-offs:
|
||||||||
Construction & development
|
-
|
-
|
||||||
1-4 family real estate
|
-
|
-
|
||||||
Commercial real estate - other
|
-
|
-
|
||||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
(7
|
)
|
-
|
|||||
Consumer
|
(16
|
)
|
(20
|
)
|
||||
Total charge-offs
|
(23
|
)
|
(20
|
)
|
||||
Recoveries:
|
||||||||
Construction & development
|
-
|
-
|
||||||
1-4 family real estate
|
-
|
-
|
||||||
Commercial real estate - other
|
-
|
-
|
||||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
2
|
-
|
||||||
Consumer
|
5
|
14
|
||||||
Total recoveries
|
7
|
14
|
||||||
Net recoveries (charge-offs)
|
(16
|
)
|
(6
|
)
|
||||
Balance at end of the period
|
$
|
20,649
|
$
|
13,153
|
||||
Net recoveries (charge-offs) to average loans
|
0.00
|
%
|
0.00
|
%
|
As of September 30,
|
As of December 31,
|
|||||||||||||||
2023
|
2022
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Construction & development
|
$
|
1,481
|
7.2
|
%
|
$
|
1,889
|
12.8
|
%
|
||||||||
1-4 family real estate
|
1,146
|
5.5
|
%
|
890
|
6.0
|
%
|
||||||||||
Commercial real estate - Other
|
6,729
|
32.6
|
%
|
5,080
|
34.5
|
%
|
||||||||||
Commercial & industrial
|
10,430
|
50.6
|
%
|
5,937
|
40.3
|
%
|
||||||||||
Agricultural
|
609
|
2.9
|
%
|
765
|
5.2
|
%
|
||||||||||
Consumer
|
254
|
1.2
|
%
|
173
|
1.2
|
%
|
||||||||||
Total
|
$
|
20,649
|
100.0
|
%
|
$
|
14,734
|
100.0
|
%
|
As of
September 30,
|
As of
December 31,
|
|||||||
2023
|
2022
|
|||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans
|
$
|
41,243
|
$
|
8,039
|
||||
Accruing loans 90 or more days past due
|
9,856
|
9,941
|
||||||
Total nonperforming assets
|
$
|
51,099
|
$
|
17,980
|
||||
Ratio of nonperforming loans to total loans
|
3.67
|
%
|
1.42
|
%
|
||||
Ratio of nonaccrual loans to total loans
|
2.96
|
%
|
0.63
|
%
|
||||
Ratio of allowance for credit losses to total loans
|
1.48
|
%
|
1.16
|
%
|
||||
Ratio of allowance for credit losses to nonaccrual loans
|
50.07
|
%
|
183.28
|
%
|
||||
Ratio of nonperforming assets to total assets
|
2.88
|
%
|
1.13
|
%
|
As of September 30, 2023
|
||||||||||||||||||||||||||||
Loans 30-59 days past due
|
Loans 60-89 days past due
|
Loans 90+ days past due
|
Loans 90+ days past due and accruing
|
Total past due loans
|
Current
|
Total loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
139,053
|
$
|
139,053
|
||||||||||||||
1-4 family real estate
|
-
|
-
|
-
|
-
|
-
|
91,540
|
91,540
|
|||||||||||||||||||||
Commercial real estate
|
134
|
-
|
-
|
-
|
134
|
516,841
|
516,975
|
|||||||||||||||||||||
Commercial & industrial
|
58
|
-
|
9,776
|
9,776
|
9,834
|
558,850
|
568,684
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
64,688
|
64,688
|
|||||||||||||||||||||
Consumer
|
123
|
-
|
80
|
80
|
203
|
14,790
|
14,993
|
|||||||||||||||||||||
Total
|
$
|
315
|
$
|
-
|
$
|
9,856
|
$
|
9,856
|
$
|
10,171
|
$
|
1,385,762
|
$
|
1,395,933
|
As of December 31, 2022
|
||||||||||||||||||||||||||||
Loans 30-59 days past due
|
Loans 60-89 days past due
|
Loans 90+ days past due
|
Loans 90+ days past due and accruing
|
Total Past Due Loans
|
Current
|
Total loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
163,203
|
$
|
163,203
|
||||||||||||||
1-4 family real estate
|
-
|
-
|
-
|
-
|
-
|
76,928
|
76,928
|
|||||||||||||||||||||
Commercial real estate
|
-
|
617
|
-
|
-
|
617
|
438,384
|
439,001
|
|||||||||||||||||||||
Commercial & industrial
|
21
|
-
|
9,923
|
9,923
|
9,944
|
503,067
|
513,011
|
|||||||||||||||||||||
Agricultural
|
4
|
-
|
-
|
-
|
4
|
66,141
|
66,145
|
|||||||||||||||||||||
Consumer
|
291
|
82
|
22
|
18
|
395
|
14,554
|
14,949
|
|||||||||||||||||||||
Total
|
$
|
316
|
$
|
699
|
$
|
9,945
|
$
|
9,941
|
$
|
10,960
|
$
|
1,262,277
|
$
|
1,273,237
|
|
As of September 30, 2023
|
|||||||||||||||||||
|
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
|||||||||||||||
|
||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Construction & development
|
$
|
138,260
|
$
|
-
|
$
|
793
|
$
|
-
|
$
|
139,053
|
||||||||||
1-4 family real estate
|
91,540
|
-
|
-
|
-
|
91,540
|
|||||||||||||||
Commercial real estate - Other
|
501,009
|
-
|
15,832
|
134
|
516,975
|
|||||||||||||||
Commercial & industrial
|
503,770
|
-
|
11,785
|
53,129
|
568,684
|
|||||||||||||||
Agricultural
|
64,581
|
107
|
-
|
-
|
64,688
|
|||||||||||||||
Consumer
|
14,913
|
-
|
-
|
80
|
14,993
|
|||||||||||||||
Total
|
$
|
1,314,073
|
$
|
107
|
$
|
28,410
|
$
|
53,343
|
$
|
1,395,933
|
|
As of December 31, 2022
|
|||||||||||||||||||
|
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
|||||||||||||||
|
||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Construction & development
|
$
|
163,203
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
163,203
|
||||||||||
1-4 family real estate
|
76,928
|
-
|
-
|
-
|
76,928
|
|||||||||||||||
Commercial real estate - Other
|
397,295
|
14,976
|
24,747
|
1,983
|
439,001
|
|||||||||||||||
Commercial & industrial
|
493,412
|
-
|
584
|
19,015
|
513,011
|
|||||||||||||||
Agricultural
|
65,857
|
288
|
-
|
-
|
66,145
|
|||||||||||||||
Consumer
|
14,927
|
-
|
-
|
22
|
14,949
|
|||||||||||||||
Total
|
$
|
1,211,622
|
$
|
15,264
|
$
|
25,331
|
$
|
21,020
|
$
|
1,273,237
|
|
As of September 30,
|
December 31,
|
||||||||||||||
|
2023
|
2022
|
||||||||||||||
|
Amount
|
Percentage of Total
|
Amount
|
Percentage of Total
|
||||||||||||
|
||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Noninterest-bearing demand
|
$
|
480,827
|
30.1
|
%
|
$
|
441,509
|
30.9
|
%
|
||||||||
Interest-bearing transaction deposits
|
722,301
|
45.3
|
%
|
669,852
|
46.8
|
%
|
||||||||||
Savings deposits
|
133,198
|
8.4
|
%
|
136,537
|
9.5
|
%
|
||||||||||
Time deposits ($250,000 or less)
|
168,371
|
10.6
|
%
|
140,929
|
9.8
|
%
|
||||||||||
Time deposits (more than $250,000)
|
88,875
|
5.6
|
%
|
42,573
|
3.0
|
%
|
||||||||||
Total interest-bearing deposits
|
1,112,745
|
69.9
|
%
|
989,891
|
69.1
|
%
|
||||||||||
Total deposits
|
$
|
1,593,572
|
100.0
|
%
|
$
|
1,431,400
|
100.0
|
%
|
|
As of September 30, 2023 Maturity Within:
|
|||||||||||||||||||
|
Three Months
|
Three to Six Months
|
Six to 12 Months
|
After 12 Months
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Time deposits ($250,000 or less)
|
$
|
64,130
|
$
|
44,202
|
$
|
45,618
|
$
|
14,421
|
$
|
168,371
|
||||||||||
Time deposits (more than $250,000)
|
26,218
|
30,753
|
10,404
|
21,500
|
88,875
|
|||||||||||||||
Total time deposits
|
$
|
90,348
|
$
|
74,955
|
$
|
56,022
|
$
|
35,921
|
$
|
257,246
|
|
As of December 31, 2022 Maturity Within:
|
|||||||||||||||||||
|
Three Months
|
Three to Six Months
|
Six to 12 Months
|
After 12 Months
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Time deposits ($250,000 or less)
|
$
|
58,184
|
$
|
25,333
|
$
|
38,844
|
$
|
18,568
|
$
|
140,929
|
||||||||||
Time deposits (more than $250,000)
|
12,292
|
5,579
|
17,001
|
7,701
|
42,573
|
|||||||||||||||
Total time deposits
|
$
|
70,476
|
$
|
30,912
|
$
|
55,845
|
$
|
26,269
|
$
|
183,502
|
|
Actual
|
With Capital
Conservation Buffer |
Minimum to be "Well-Capitalized" Under Prompt Corrective Action
|
|||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
As of September 30, 2023
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
$
|
185,826
|
12.64
|
%
|
$
|
154,381
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
185,773
|
12.64
|
%
|
154,273
|
10.50
|
%
|
$
|
146,927
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
167,419
|
11.39
|
%
|
124,975
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
167,379
|
11.39
|
%
|
124,888
|
8.50
|
%
|
117,542
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
167,419
|
11.39
|
%
|
102,921
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
167,379
|
11.39
|
%
|
102,849
|
7.00
|
%
|
95,503
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Company
|
167,419
|
9.76
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
167,379
|
9.75
|
%
|
N/A
|
N/A
|
85,805
|
5.00
|
%
|
|
Actual
|
With Capital Conservation Buffer
|
Minimum to be "Well-Capitalized" Under Prompt Corrective Action
|
|||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
As of December 31, 2022
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
$
|
158,158
|
12.41
|
%
|
$
|
133,862
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
158,158
|
12.42
|
%
|
133,756
|
10.50
|
%
|
$
|
127,387
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
143,424
|
11.25
|
%
|
108,365
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
143,424
|
11.26
|
%
|
108,279
|
8.50
|
%
|
101,909
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
143,424
|
11.25
|
%
|
89,241
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
143,424
|
11.26
|
%
|
89,171
|
7.00
|
%
|
82,801
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Company
|
143,424
|
9.19
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
143,424
|
9.18
|
%
|
N/A
|
N/A
|
78,111
|
5.00
|
%
|
|
Payments Due as of September 30, 2023
|
|||||||||||||||||||
|
Within One Year
|
One to Three Years
|
Three to Five Years
|
After Five Years
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Deposits without a stated maturity
|
$
|
1,336,326
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,336,326
|
||||||||||
Time deposits
|
221,325
|
34,753
|
1,168
|
-
|
257,246
|
|||||||||||||||
Operating lease commitments
|
380
|
768
|
369
|
1,088
|
2,605
|
|||||||||||||||
Total contractual obligations
|
$
|
1,558,031
|
$
|
35,521
|
$
|
1,537
|
$
|
1,088
|
$
|
1,596,177
|
|
Payments Due as of December 31, 2022
|
|||||||||||||||||||
|
Within One Year
|
One to Three Years
|
Three to Five Years
|
After Five Years
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Deposits without a stated maturity
|
$
|
1,245,798
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,245,798
|
||||||||||
Time deposits
|
157,233
|
26,002
|
267
|
-
|
183,502
|
|||||||||||||||
Operating lease commitments
|
532
|
815
|
453
|
530
|
2,330
|
|||||||||||||||
Total contractual obligations
|
$
|
1,403,563
|
$
|
26,817
|
$
|
720
|
$
|
530
|
$
|
1,431,630
|
|
September 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
(Dollars in thousands)
|
|||||||
Commitments to extend credit
|
$
|
245,079
|
$
|
198,027
|
||||
Standby letters of credit
|
2,148
|
1,043
|
||||||
Total
|
$
|
247,227
|
$
|
199,070
|
September 30 ,
|
December 31,
|
||||||||||||||||
2023
|
2022
|
||||||||||||||||
Change in Interest Rates (Basis Points)
|
Percent Change in Net Interest Income
|
Percent Change in Fair Value of Equity
|
Percent Change in Net Interest Income
|
Percent Change in Fair Value of Equity
|
|||||||||||||
+400
|
19.59
|
%
|
19.89
|
%
|
13.41
|
%
|
20.90
|
%
|
|||||||||
+300
|
15.67
|
%
|
19.00
|
%
|
9.96
|
%
|
20.13
|
%
|
|||||||||
+200
|
11.74
|
%
|
18.05
|
%
|
6.50
|
%
|
19.17
|
%
|
|||||||||
+100
|
7.76
|
%
|
16.99
|
%
|
2.99
|
%
|
18.04
|
%
|
|||||||||
Base
|
3.53
|
%
|
15.86
|
%
|
-0.77
|
%
|
16.91
|
%
|
|||||||||
-100
|
-1.33
|
%
|
14.50
|
%
|
-4.82
|
%
|
15.25
|
%
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
BANK7 CORP.
|
|
|
DATED: November 9, 2023
|
By: /s/ Thomas L. Travis
|
|
Thomas L. Travis
|
|
Vice Chairman and Chief Executive Officer
|
|
|
DATED: November 9, 2023
|
By: /s/ Kelly J. Harris
|
|
Kelly J. Harris
|
|
Executive Vice President and Chief Financial Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Bank7 Corp.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
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a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
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d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors
(or persons performing the equivalent functions):
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|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and
report financial information; and
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b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ Thomas L. Travis
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|
Date: November 9, 2023
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Thomas L. Travis
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Vice Chairman and Chief Executive Officer (Principal Executive Officer)
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1. |
I have reviewed this quarterly report on Form 10-Q of Bank7 Corp.;
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2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
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3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
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4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
|
d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors
(or persons performing the equivalent functions):
|
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and
report financial information; and
|
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Kelly J. Harris
|
|
Date: November 9, 2023
|
Kelly J. Harris
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
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/s/ Thomas L. Travis
|
|
Date: November 9, 2023
|
Thomas L. Travis
|
Vice Chairman and Chief Executive Officer (Principal Executive Officer)
|
/s/ Kelly J. Harris
|
|
Kelly J. Harris
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|