SEC Info - Grandsouth Bancorporation - ‘10-Q’ for 6/30/22

Page	(sequential)		(alphabetic)	↑Top
		Alternative Formats (Word, et al.) Consolidated Balance Sheets -- June 30, 2022 and December 31, 2021 Consolidated Statements of Cash Flows -- Six Months Ended June 30, 2022 and 2021 Consolidated Statements of Changes in Shareholders' Equity -- Three and Six Months Ended June 30, 2022 and 2021 Consolidated Statements of Comprehensive Income -- Three and Six Months Ended June 30, 2022 and 2021 Consolidated Statements of Income -- Three and Six Months Ended June 30, 2022 and 2021 Controls and Procedures Defaults Upon Senior Securities Exhibits Financial Statements (Unaudited) Item 1 Item 1A Item 2 Item 3 Item 4 Item 5 Item 6 June 30, 2022 and December 31, 2021 Legal Proceedings Management's Discussion and Analysis of Financial Condition and Results of Operations Mine Safety Disclosures Notes to Consolidated Financial Statements Other Information Quantitative and Qualitative Disclosures About Market Risk Risk Factors Signatures Six Months Ended June 30, 2022 and 2021 Three and Six Months Ended June 30, 2022 and 2021 Unregistered Sales of Equity Securities and Use of Proceeds
1	1st Page – Filing Submission
"	Item 1
"	Financial Statements (Unaudited)
"	Consolidated Balance Sheets -- June 30, 2022 and December 31, 2021
"	Consolidated Statements of Income -- Three and Six Months Ended June 30, 2022 and 2021
"	Consolidated Statements of Comprehensive Income -- Three and Six Months Ended June 30, 2022 and 2021
"	Consolidated Statements of Changes in Shareholders' Equity -- Three and Six Months Ended June 30, 2022 and 2021
"	Consolidated Statements of Cash Flows -- Six Months Ended June 30, 2022 and 2021
"	Notes to Consolidated Financial Statements
"	Item 2
"	Management's Discussion and Analysis of Financial Condition and Results of Operations
"	Item 3
"	Quantitative and Qualitative Disclosures About Market Risk
"	Item 4
"	Controls and Procedures
"	Legal Proceedings
"	Item 1A
"	Risk Factors
"	Unregistered Sales of Equity Securities and Use of Proceeds
"	Defaults Upon Senior Securities
"	Mine Safety Disclosures
"	Item 5
"	Other Information
"	Item 6
"	Exhibits
"	Signatures

i 0001126961 i false i --12-31 i 2022 i Q2 i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i 0001126961 2022-01-01 2022-06-30 0001126961 2022-08-01 0001126961 2022-06-30 0001126961 2021-12-31 0001126961 2022-04-01 2022-06-30 0001126961 2021-04-01 2021-06-30 0001126961 2021-01-01 2021-06-30 0001126961 us-gaap:CommonStockMember 2021-12-31 0001126961 us-gaap:PreferredStockMember 2021-12-31 0001126961 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001126961 us-gaap:RetainedEarningsMember 2021-12-31 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001126961 us-gaap:CommonStockMember 2020-12-31 0001126961 us-gaap:PreferredStockMember 2020-12-31 0001126961 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001126961 us-gaap:RetainedEarningsMember 2020-12-31 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001126961 2020-12-31 0001126961 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001126961 us-gaap:PreferredStockMember 2022-01-01 2022-03-31 0001126961 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001126961 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-03-31 0001126961 2022-01-01 2022-03-31 0001126961 us-gaap:CommonStockMember 2022-04-01 2022-06-30 0001126961 us-gaap:PreferredStockMember 2022-04-01 2022-06-30 0001126961 us-gaap:AdditionalPaidInCapitalMember 2022-04-01 2022-06-30 0001126961 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-01 2022-06-30 0001126961 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001126961 us-gaap:PreferredStockMember 2021-01-01 2021-03-31 0001126961 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001126961 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001126961 2021-01-01 2021-03-31 0001126961 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001126961 us-gaap:PreferredStockMember 2021-04-01 2021-06-30 0001126961 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001126961 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001126961 us-gaap:CommonStockMember 2022-03-31 0001126961 us-gaap:PreferredStockMember 2022-03-31 0001126961 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001126961 us-gaap:RetainedEarningsMember 2022-03-31 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0001126961 2022-03-31 0001126961 us-gaap:CommonStockMember 2022-06-30 0001126961 us-gaap:PreferredStockMember 2022-06-30 0001126961 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001126961 us-gaap:RetainedEarningsMember 2022-06-30 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0001126961 us-gaap:CommonStockMember 2021-03-31 0001126961 us-gaap:PreferredStockMember 2021-03-31 0001126961 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001126961 us-gaap:RetainedEarningsMember 2021-03-31 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001126961 2021-03-31 0001126961 us-gaap:CommonStockMember 2021-06-30 0001126961 us-gaap:PreferredStockMember 2021-06-30 0001126961 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001126961 us-gaap:RetainedEarningsMember 2021-06-30 0001126961 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001126961 2021-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2022-01-01 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-01-01 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2022-01-01 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:CollateralizedDebtObligationsMember 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:CollateralizedDebtObligationsMember 2022-01-01 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2022-01-01 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:CorporateDebtSecuritiesMember 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:CorporateDebtSecuritiesMember 2022-01-01 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2022-01-01 2022-06-30 0001126961 us-gaap:HeldtomaturitySecuritiesMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2022-06-30 0001126961 us-gaap:HeldtomaturitySecuritiesMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2022-01-01 2022-06-30 0001126961 us-gaap:HeldtomaturitySecuritiesMember 2022-06-30 0001126961 us-gaap:HeldtomaturitySecuritiesMember 2022-01-01 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2021-01-01 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-01-01 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2021-01-01 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:CollateralizedDebtObligationsMember 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:CollateralizedDebtObligationsMember 2021-01-01 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2021-01-01 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:CorporateDebtSecuritiesMember 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember us-gaap:CorporateDebtSecuritiesMember 2021-01-01 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-12-31 0001126961 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2022-03-31 0001126961 us-gaap:CollateralizedDebtObligationsMember 2022-03-31 0001126961 us-gaap:AssetBackedSecuritiesMember 2022-03-31 0001126961 us-gaap:AssetPledgedAsCollateralMember 2022-06-30 0001126961 us-gaap:AssetPledgedAsCollateralMember 2021-12-31 0001126961 us-gaap:RealEstateLoanMember grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 us-gaap:RealEstateLoanMember grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 us-gaap:RealEstateLoanMember us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 us-gaap:RealEstateLoanMember us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 us-gaap:RealEstateLoanMember us-gaap:HomeEquityLoanMember 2022-06-30 0001126961 us-gaap:RealEstateLoanMember us-gaap:HomeEquityLoanMember 2021-12-31 0001126961 us-gaap:RealEstateLoanMember us-gaap:ResidentialRealEstateMember 2022-06-30 0001126961 us-gaap:RealEstateLoanMember us-gaap:ResidentialRealEstateMember 2021-12-31 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember 2022-06-30 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember 2021-12-31 0001126961 us-gaap:RealEstateLoanMember 2022-06-30 0001126961 us-gaap:RealEstateLoanMember 2021-12-31 0001126961 grrb:CommercialAndConsumerMember us-gaap:CommercialLoanMember 2022-06-30 0001126961 grrb:CommercialAndConsumerMember us-gaap:CommercialLoanMember 2021-12-31 0001126961 grrb:CommercialAndConsumerMember us-gaap:ConsumerLoanMember 2022-06-30 0001126961 grrb:CommercialAndConsumerMember us-gaap:ConsumerLoanMember 2021-12-31 0001126961 grrb:CommercialAndConsumerMember 2022-06-30 0001126961 grrb:CommercialAndConsumerMember 2021-12-31 0001126961 grrb:CommercialAndConsumerMember us-gaap:EntityLoanModificationProgramMember 2022-06-30 0001126961 grrb:CommercialAndConsumerMember us-gaap:EntityLoanModificationProgramMember 2021-12-31 0001126961 grrb:OneToFourFamilyResidentialMember 2022-03-31 0001126961 us-gaap:CommercialRealEstateMember 2022-03-31 0001126961 us-gaap:HomeEquityLoanMember 2022-03-31 0001126961 us-gaap:ResidentialRealEstateMember 2022-03-31 0001126961 us-gaap:ConstructionLoansMember 2022-03-31 0001126961 us-gaap:CommercialLoanMember 2022-03-31 0001126961 us-gaap:ConsumerLoanMember 2022-03-31 0001126961 grrb:OneToFourFamilyResidentialMember 2022-04-01 2022-06-30 0001126961 us-gaap:CommercialRealEstateMember 2022-04-01 2022-06-30 0001126961 us-gaap:HomeEquityLoanMember 2022-04-01 2022-06-30 0001126961 us-gaap:ResidentialRealEstateMember 2022-04-01 2022-06-30 0001126961 us-gaap:ConstructionLoansMember 2022-04-01 2022-06-30 0001126961 us-gaap:CommercialLoanMember 2022-04-01 2022-06-30 0001126961 us-gaap:ConsumerLoanMember 2022-04-01 2022-06-30 0001126961 grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 us-gaap:HomeEquityLoanMember 2022-06-30 0001126961 us-gaap:ResidentialRealEstateMember 2022-06-30 0001126961 us-gaap:ConstructionLoansMember 2022-06-30 0001126961 us-gaap:CommercialLoanMember 2022-06-30 0001126961 us-gaap:ConsumerLoanMember 2022-06-30 0001126961 grrb:OneToFourFamilyResidentialMember 2021-03-31 0001126961 us-gaap:CommercialRealEstateMember 2021-03-31 0001126961 us-gaap:HomeEquityLoanMember 2021-03-31 0001126961 us-gaap:ResidentialRealEstateMember 2021-03-31 0001126961 us-gaap:ConstructionLoansMember 2021-03-31 0001126961 us-gaap:CommercialLoanMember 2021-03-31 0001126961 us-gaap:ConsumerLoanMember 2021-03-31 0001126961 grrb:OneToFourFamilyResidentialMember 2021-04-01 2021-06-30 0001126961 us-gaap:CommercialRealEstateMember 2021-04-01 2021-06-30 0001126961 us-gaap:HomeEquityLoanMember 2021-04-01 2021-06-30 0001126961 us-gaap:ResidentialRealEstateMember 2021-04-01 2021-06-30 0001126961 us-gaap:ConstructionLoansMember 2021-04-01 2021-06-30 0001126961 us-gaap:CommercialLoanMember 2021-04-01 2021-06-30 0001126961 us-gaap:ConsumerLoanMember 2021-04-01 2021-06-30 0001126961 grrb:OneToFourFamilyResidentialMember 2021-06-30 0001126961 us-gaap:CommercialRealEstateMember 2021-06-30 0001126961 us-gaap:HomeEquityLoanMember 2021-06-30 0001126961 us-gaap:ResidentialRealEstateMember 2021-06-30 0001126961 us-gaap:ConstructionLoansMember 2021-06-30 0001126961 us-gaap:CommercialLoanMember 2021-06-30 0001126961 us-gaap:ConsumerLoanMember 2021-06-30 0001126961 grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 us-gaap:HomeEquityLoanMember 2021-12-31 0001126961 us-gaap:ResidentialRealEstateMember 2021-12-31 0001126961 us-gaap:ConstructionLoansMember 2021-12-31 0001126961 us-gaap:CommercialLoanMember 2021-12-31 0001126961 us-gaap:ConsumerLoanMember 2021-12-31 0001126961 grrb:OneToFourFamilyResidentialMember 2022-01-01 2022-06-30 0001126961 us-gaap:CommercialRealEstateMember 2022-01-01 2022-06-30 0001126961 us-gaap:HomeEquityLoanMember 2022-01-01 2022-06-30 0001126961 us-gaap:ResidentialRealEstateMember 2022-01-01 2022-06-30 0001126961 us-gaap:ConstructionLoansMember 2022-01-01 2022-06-30 0001126961 us-gaap:CommercialLoanMember 2022-01-01 2022-06-30 0001126961 us-gaap:ConsumerLoanMember 2022-01-01 2022-06-30 0001126961 grrb:OneToFourFamilyResidentialMember 2020-12-31 0001126961 us-gaap:CommercialRealEstateMember 2020-12-31 0001126961 us-gaap:HomeEquityLoanMember 2020-12-31 0001126961 us-gaap:ResidentialRealEstateMember 2020-12-31 0001126961 us-gaap:ConstructionLoansMember 2020-12-31 0001126961 us-gaap:CommercialLoanMember 2020-12-31 0001126961 us-gaap:ConsumerLoanMember 2020-12-31 0001126961 grrb:OneToFourFamilyResidentialMember 2021-01-01 2021-06-30 0001126961 us-gaap:CommercialRealEstateMember 2021-01-01 2021-06-30 0001126961 us-gaap:HomeEquityLoanMember 2021-01-01 2021-06-30 0001126961 us-gaap:ResidentialRealEstateMember 2021-01-01 2021-06-30 0001126961 us-gaap:ConstructionLoansMember 2021-01-01 2021-06-30 0001126961 us-gaap:CommercialLoanMember 2021-01-01 2021-06-30 0001126961 us-gaap:ConsumerLoanMember 2021-01-01 2021-06-30 0001126961 grrb:LoanGrade1Member grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 grrb:LoanGrade1Member us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade1Member us-gaap:HomeEquityLoanMember 2022-06-30 0001126961 grrb:LoanGrade1Member us-gaap:ResidentialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade1Member us-gaap:ConstructionLoansMember 2022-06-30 0001126961 grrb:LoanGrade1Member us-gaap:CommercialLoanMember 2022-06-30 0001126961 grrb:LoanGrade1Member us-gaap:ConsumerLoanMember 2022-06-30 0001126961 grrb:LoanGrade1Member 2022-06-30 0001126961 grrb:LoanGrade2Member grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 grrb:LoanGrade2Member us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade2Member us-gaap:HomeEquityLoanMember 2022-06-30 0001126961 grrb:LoanGrade2Member us-gaap:ResidentialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade2Member us-gaap:ConstructionLoansMember 2022-06-30 0001126961 grrb:LoanGrade2Member us-gaap:CommercialLoanMember 2022-06-30 0001126961 grrb:LoanGrade2Member us-gaap:ConsumerLoanMember 2022-06-30 0001126961 grrb:LoanGrade2Member 2022-06-30 0001126961 grrb:LoanGrade3Member grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 grrb:LoanGrade3Member us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade3Member us-gaap:HomeEquityLoanMember 2022-06-30 0001126961 grrb:LoanGrade3Member us-gaap:ResidentialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade3Member us-gaap:ConstructionLoansMember 2022-06-30 0001126961 grrb:LoanGrade3Member us-gaap:CommercialLoanMember 2022-06-30 0001126961 grrb:LoanGrade3Member us-gaap:ConsumerLoanMember 2022-06-30 0001126961 grrb:LoanGrade3Member 2022-06-30 0001126961 grrb:LoanGrade4Member grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 grrb:LoanGrade4Member us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade4Member us-gaap:HomeEquityLoanMember 2022-06-30 0001126961 grrb:LoanGrade4Member us-gaap:ResidentialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade4Member us-gaap:ConstructionLoansMember 2022-06-30 0001126961 grrb:LoanGrade4Member us-gaap:CommercialLoanMember 2022-06-30 0001126961 grrb:LoanGrade4Member us-gaap:ConsumerLoanMember 2022-06-30 0001126961 grrb:LoanGrade4Member 2022-06-30 0001126961 grrb:LoanGrade5Member grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 grrb:LoanGrade5Member us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade5Member us-gaap:HomeEquityLoanMember 2022-06-30 0001126961 grrb:LoanGrade5Member us-gaap:ResidentialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade5Member us-gaap:ConstructionLoansMember 2022-06-30 0001126961 grrb:LoanGrade5Member us-gaap:CommercialLoanMember 2022-06-30 0001126961 grrb:LoanGrade5Member us-gaap:ConsumerLoanMember 2022-06-30 0001126961 grrb:LoanGrade5Member 2022-06-30 0001126961 grrb:LoanGrade6Member grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 grrb:LoanGrade6Member us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade6Member us-gaap:HomeEquityLoanMember 2022-06-30 0001126961 grrb:LoanGrade6Member us-gaap:ResidentialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade6Member us-gaap:ConstructionLoansMember 2022-06-30 0001126961 grrb:LoanGrade6Member us-gaap:CommercialLoanMember 2022-06-30 0001126961 grrb:LoanGrade6Member us-gaap:ConsumerLoanMember 2022-06-30 0001126961 grrb:LoanGrade6Member 2022-06-30 0001126961 grrb:LoanGrade7Member grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 grrb:LoanGrade7Member us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade7Member us-gaap:HomeEquityLoanMember 2022-06-30 0001126961 grrb:LoanGrade7Member us-gaap:ResidentialRealEstateMember 2022-06-30 0001126961 grrb:LoanGrade7Member us-gaap:ConstructionLoansMember 2022-06-30 0001126961 grrb:LoanGrade7Member us-gaap:CommercialLoanMember 2022-06-30 0001126961 grrb:LoanGrade7Member us-gaap:ConsumerLoanMember 2022-06-30 0001126961 grrb:LoanGrade7Member 2022-06-30 0001126961 grrb:LoanGrade1Member grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 grrb:LoanGrade1Member us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade1Member us-gaap:HomeEquityLoanMember 2021-12-31 0001126961 grrb:LoanGrade1Member us-gaap:ResidentialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade1Member us-gaap:ConstructionLoansMember 2021-12-31 0001126961 grrb:LoanGrade1Member us-gaap:CommercialLoanMember 2021-12-31 0001126961 grrb:LoanGrade1Member us-gaap:ConsumerLoanMember 2021-12-31 0001126961 grrb:LoanGrade1Member 2021-12-31 0001126961 grrb:LoanGrade2Member grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 grrb:LoanGrade2Member us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade2Member us-gaap:HomeEquityLoanMember 2021-12-31 0001126961 grrb:LoanGrade2Member us-gaap:ResidentialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade2Member us-gaap:ConstructionLoansMember 2021-12-31 0001126961 grrb:LoanGrade2Member us-gaap:CommercialLoanMember 2021-12-31 0001126961 grrb:LoanGrade2Member us-gaap:ConsumerLoanMember 2021-12-31 0001126961 grrb:LoanGrade2Member 2021-12-31 0001126961 grrb:LoanGrade3Member grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 grrb:LoanGrade3Member us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade3Member us-gaap:HomeEquityLoanMember 2021-12-31 0001126961 grrb:LoanGrade3Member us-gaap:ResidentialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade3Member us-gaap:ConstructionLoansMember 2021-12-31 0001126961 grrb:LoanGrade3Member us-gaap:CommercialLoanMember 2021-12-31 0001126961 grrb:LoanGrade3Member us-gaap:ConsumerLoanMember 2021-12-31 0001126961 grrb:LoanGrade3Member 2021-12-31 0001126961 grrb:LoanGrade4Member grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 grrb:LoanGrade4Member us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade4Member us-gaap:HomeEquityLoanMember 2021-12-31 0001126961 grrb:LoanGrade4Member us-gaap:ResidentialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade4Member us-gaap:ConstructionLoansMember 2021-12-31 0001126961 grrb:LoanGrade4Member us-gaap:CommercialLoanMember 2021-12-31 0001126961 grrb:LoanGrade4Member us-gaap:ConsumerLoanMember 2021-12-31 0001126961 grrb:LoanGrade4Member 2021-12-31 0001126961 grrb:LoanGrade5Member grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 grrb:LoanGrade5Member us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade5Member us-gaap:HomeEquityLoanMember 2021-12-31 0001126961 grrb:LoanGrade5Member us-gaap:ResidentialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade5Member us-gaap:ConstructionLoansMember 2021-12-31 0001126961 grrb:LoanGrade5Member us-gaap:CommercialLoanMember 2021-12-31 0001126961 grrb:LoanGrade5Member us-gaap:ConsumerLoanMember 2021-12-31 0001126961 grrb:LoanGrade5Member 2021-12-31 0001126961 grrb:LoanGrade6Member grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 grrb:LoanGrade6Member us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade6Member us-gaap:HomeEquityLoanMember 2021-12-31 0001126961 grrb:LoanGrade6Member us-gaap:ResidentialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade6Member us-gaap:ConstructionLoansMember 2021-12-31 0001126961 grrb:LoanGrade6Member us-gaap:CommercialLoanMember 2021-12-31 0001126961 grrb:LoanGrade6Member us-gaap:ConsumerLoanMember 2021-12-31 0001126961 grrb:LoanGrade6Member 2021-12-31 0001126961 grrb:LoanGrade7Member grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 grrb:LoanGrade7Member us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade7Member us-gaap:HomeEquityLoanMember 2021-12-31 0001126961 grrb:LoanGrade7Member us-gaap:ResidentialRealEstateMember 2021-12-31 0001126961 grrb:LoanGrade7Member us-gaap:ConstructionLoansMember 2021-12-31 0001126961 grrb:LoanGrade7Member us-gaap:CommercialLoanMember 2021-12-31 0001126961 grrb:LoanGrade7Member us-gaap:ConsumerLoanMember 2021-12-31 0001126961 grrb:LoanGrade7Member 2021-12-31 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-06-30 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2022-06-30 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-06-30 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancialAssetPastDueMember 2022-06-30 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancialAssetNotPastDueMember 2022-06-30 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-06-30 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2022-06-30 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-06-30 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancialAssetPastDueMember 2022-06-30 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancialAssetNotPastDueMember 2022-06-30 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-06-30 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2022-06-30 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-06-30 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancialAssetPastDueMember 2022-06-30 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancialAssetNotPastDueMember 2022-06-30 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-06-30 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2022-06-30 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-06-30 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancialAssetPastDueMember 2022-06-30 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancialAssetNotPastDueMember 2022-06-30 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-06-30 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2022-06-30 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-06-30 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancialAssetPastDueMember 2022-06-30 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancialAssetNotPastDueMember 2022-06-30 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-06-30 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2022-06-30 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-06-30 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancialAssetPastDueMember 2022-06-30 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancialAssetNotPastDueMember 2022-06-30 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-06-30 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2022-06-30 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-06-30 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancialAssetPastDueMember 2022-06-30 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancialAssetNotPastDueMember 2022-06-30 0001126961 us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-06-30 0001126961 us-gaap:FinancingReceivables60To89DaysPastDueMember 2022-06-30 0001126961 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-06-30 0001126961 us-gaap:FinancialAssetPastDueMember 2022-06-30 0001126961 us-gaap:FinancialAssetNotPastDueMember 2022-06-30 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancialAssetPastDueMember 2021-12-31 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancialAssetPastDueMember 2021-12-31 0001126961 us-gaap:CommercialRealEstateMember us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancialAssetPastDueMember 2021-12-31 0001126961 us-gaap:HomeEquityLoanMember us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancialAssetPastDueMember 2021-12-31 0001126961 us-gaap:ResidentialRealEstateMember us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancialAssetPastDueMember 2021-12-31 0001126961 us-gaap:ConstructionLoansMember us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancialAssetPastDueMember 2021-12-31 0001126961 us-gaap:CommercialLoanMember us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancialAssetPastDueMember 2021-12-31 0001126961 us-gaap:ConsumerLoanMember us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001126961 us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001126961 us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001126961 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001126961 us-gaap:FinancialAssetPastDueMember 2021-12-31 0001126961 us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001126961 us-gaap:NonperformingFinancingReceivableMember grrb:OneToFourFamilyResidentialMember 2022-06-30 0001126961 us-gaap:NonperformingFinancingReceivableMember grrb:OneToFourFamilyResidentialMember 2021-12-31 0001126961 us-gaap:NonperformingFinancingReceivableMember us-gaap:CommercialRealEstateMember 2022-06-30 0001126961 us-gaap:NonperformingFinancingReceivableMember us-gaap:CommercialRealEstateMember 2021-12-31 0001126961 us-gaap:NonperformingFinancingReceivableMember us-gaap:CommercialLoanMember 2022-06-30 0001126961 us-gaap:NonperformingFinancingReceivableMember us-gaap:CommercialLoanMember 2021-12-31 0001126961 us-gaap:NonperformingFinancingReceivableMember us-gaap:ConsumerLoanMember 2022-06-30 0001126961 us-gaap:NonperformingFinancingReceivableMember us-gaap:ConsumerLoanMember 2021-12-31 0001126961 us-gaap:NonperformingFinancingReceivableMember 2022-06-30 0001126961 us-gaap:NonperformingFinancingReceivableMember 2021-12-31 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:PerformingFinancingReceivableMember 2022-06-30 0001126961 us-gaap:CommercialRealEstateMember us-gaap:PerformingFinancingReceivableMember 2022-06-30 0001126961 us-gaap:CommercialLoanMember us-gaap:PerformingFinancingReceivableMember 2022-06-30 0001126961 us-gaap:ConsumerLoanMember us-gaap:PerformingFinancingReceivableMember 2022-06-30 0001126961 us-gaap:PerformingFinancingReceivableMember 2022-06-30 0001126961 grrb:OneToFourFamilyResidentialMember us-gaap:PerformingFinancingReceivableMember 2021-12-31 0001126961 us-gaap:CommercialRealEstateMember us-gaap:PerformingFinancingReceivableMember 2021-12-31 0001126961 us-gaap:CommercialLoanMember us-gaap:PerformingFinancingReceivableMember 2021-12-31 0001126961 us-gaap:ConsumerLoanMember us-gaap:PerformingFinancingReceivableMember 2021-12-31 0001126961 us-gaap:PerformingFinancingReceivableMember 2021-12-31 0001126961 us-gaap:ExtendedMaturityMember 2022-01-01 2022-06-30 0001126961 2021-01-01 2021-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2022-03-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2022-04-01 2022-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2021-03-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2020-12-31 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2021-04-01 2021-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-06-30 0001126961 us-gaap:AvailableforsaleSecuritiesMember 2021-06-30 0001126961 grrb:CoreBankMember 2022-04-01 2022-06-30 0001126961 grrb:CarbucksMember 2022-04-01 2022-06-30 0001126961 grrb:OtherMember 2022-04-01 2022-06-30 0001126961 grrb:CoreBankMember 2022-06-30 0001126961 grrb:CarbucksMember 2022-06-30 0001126961 grrb:OtherMember 2022-06-30 0001126961 grrb:CoreBankMember 2021-04-01 2021-06-30 0001126961 grrb:CarbucksMember 2021-04-01 2021-06-30 0001126961 grrb:OtherMember 2021-04-01 2021-06-30 0001126961 grrb:CoreBankMember 2021-06-30 0001126961 grrb:CarbucksMember 2021-06-30 0001126961 grrb:OtherMember 2021-06-30 0001126961 grrb:CoreBankMember 2022-01-01 2022-06-30 0001126961 grrb:CarbucksMember 2022-01-01 2022-06-30 0001126961 grrb:OtherMember 2022-01-01 2022-06-30 0001126961 grrb:CoreBankMember 2021-01-01 2021-06-30 0001126961 grrb:CarbucksMember 2021-01-01 2021-06-30 0001126961 grrb:OtherMember 2021-01-01 2021-06-30 0001126961 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2022-06-30 0001126961 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2022-06-30 0001126961 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasurementsRecurringMember 2022-06-30 0001126961 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueMeasurementsRecurringMember 2022-06-30 0001126961 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2022-06-30 0001126961 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2022-06-30 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:FairValueMeasurementsRecurringMember 2022-06-30 0001126961 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001126961 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001126961 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001126961 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001126961 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001126961 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2022-03-31 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2022-04-01 2022-06-30 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-04-01 2021-06-30 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2022-01-01 2022-06-30 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-01-01 2021-06-30 0001126961 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember us-gaap:FairValueMeasurementsNonrecurringMember 2022-06-30 0001126961 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:FairValueMeasurementsNonrecurringMember 2022-06-30 0001126961 grrb:CollateralDependentImpairedLoansMember grrb:OneToFourFamilyResidentialMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember grrb:OneToFourFamilyResidentialMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember grrb:OneToFourFamilyResidentialMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember grrb:OneToFourFamilyResidentialMember us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember us-gaap:CommercialRealEstateMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember us-gaap:CommercialRealEstateMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember us-gaap:CommercialRealEstateMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember us-gaap:CommercialRealEstateMember us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember us-gaap:CommercialLoanMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember us-gaap:CommercialLoanMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember us-gaap:CommercialLoanMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 grrb:CollateralDependentImpairedLoansMember us-gaap:CommercialLoanMember us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 us-gaap:RealEstateLoanMember us-gaap:ConstructionLoansMember us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001126961 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001126961 us-gaap:FairValueInputsLevel3Member grrb:ImpairedLoansMember 2022-01-01 2022-06-30 0001126961 us-gaap:FairValueInputsLevel3Member grrb:ImpairedLoansMember srt:MinimumMember 2021-01-01 2021-12-31 0001126961 us-gaap:FairValueInputsLevel3Member grrb:ImpairedLoansMember srt:MaximumMember 2021-01-01 2021-12-31 0001126961 us-gaap:FairValueInputsLevel3Member grrb:RealEstateOwnedMember 2022-01-01 2022-06-30 0001126961 us-gaap:FairValueInputsLevel3Member grrb:RealEstateOwnedMember srt:MinimumMember 2022-01-01 2022-06-30 0001126961 us-gaap:FairValueInputsLevel3Member grrb:RealEstateOwnedMember srt:MaximumMember 2022-01-01 2022-06-30 0001126961 us-gaap:FairValueInputsLevel3Member grrb:RealEstateOwnedMember srt:MinimumMember 2021-01-01 2021-12-31 0001126961 us-gaap:FairValueInputsLevel3Member grrb:RealEstateOwnedMember srt:MaximumMember 2021-01-01 2021-12-31 0001126961 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember 2022-01-01 2022-06-30 0001126961 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember srt:MinimumMember 2022-01-01 2022-06-30 0001126961 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember srt:MaximumMember 2022-01-01 2022-06-30 0001126961 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember srt:MinimumMember 2021-01-01 2021-12-31 0001126961 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember srt:MaximumMember 2021-01-01 2021-12-31 0001126961 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2022-06-30 0001126961 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-06-30 0001126961 us-gaap:FairValueInputsLevel1Member 2022-06-30 0001126961 us-gaap:FairValueInputsLevel2Member 2022-06-30 0001126961 us-gaap:FairValueInputsLevel3Member 2022-06-30 0001126961 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-12-31 0001126961 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001126961 us-gaap:FairValueInputsLevel1Member 2021-12-31 0001126961 us-gaap:FairValueInputsLevel2Member 2021-12-31 0001126961 us-gaap:FairValueInputsLevel3Member 2021-12-31 0001126961 grrb:FirstBancorpMember 2022-06-21 0001126961 grrb:FirstBancorpMember 2022-06-30 0001126961 us-gaap:SubsequentEventMember 2022-07-18 2022-07-18 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure grrb:Number

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. i Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). i Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes o i No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: On August 1, 2022, i 5,222,042 shares of the issuer’s common stock, no par value, were issued and outstanding.

The accompanying notes are an integral part of the consolidated financial statements.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q (this “Form 10-Q”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1932 (the “Exchange Act”), which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “continue,” “seek,” “could,” “expect,” “will,” “may” and words of similar meaning. These forward-looking statements include, but are not limited to (i) our goals, intentions, business plans, objectives, strategies, projected growth, anticipated future financial performance (including underlying assumptions), and management’s long-term performance goals, (ii) the anticipated effects or consequences of various transactions or events on our results of operations and financial condition, including, but not limited to, statements regarding our outlook and expectations with respect to our planned Merger with First Bancorp, the strategic and financial benefits of the Merger, including the expected impact of the Merger on the combined company’s scale, deposit franchise, growth and future financial performance, and the timing of the closing of the Merger.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The Company is under no duty to and does not undertake any obligation to update any forward-looking statements after the date of this Form 10-Q except as required by law.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

For additional information with respect to factors that could cause actual results to differ from the expectations stated in the forward-looking statements, see “Risk Factors” under Part I, Item 1A of our Form 10-K as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022, (“2021 Form 10-K”).

This Form 10-Q includes financial information determined by a method other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes the operating performance measure “Tangible book value per common share, outstanding”.

Management has included this non-GAAP measure because it believes this measure may provide useful supplemental information for evaluating the Company’s underlying performance trends. Further, management uses this measure in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies.

Our critical accounting estimates involving significant judgments and assumptions used in the preparation of the Consolidated Financial Statements as of June 30, 2022 have remained unchanged from the disclosures presented in our 2021 Form 10-K. Refer to Note 1 in the notes to the consolidated financial statements included under Item 1 -“Financial Statements” of this Form 10-Q for more information about recent accounting updates.

GrandSouth Bancorporation (“we,” “us,” “our,” or the “Company”) was incorporated in 2000 under the laws of South Carolina and is a bank holding company registered under the Bank Holding Company Act of 1956. The Company’s primary purpose is to serve as the holding company for GrandSouth Bank (the “Bank”). On October 2, 2000, pursuant to a Plan of Exchange approved by the shareholders of the Bank, all of the outstanding shares of capital stock of the Bank were exchanged for shares of the Company, and the Company became the owner of all of the outstanding capital stock of the Bank. The Company presently engages in no business other than that of owning the Bank and has no employees.

The Company has one non-bank subsidiary, GrandSouth Capital Trust I (the “Trust”), a Delaware statutory trust, formed to facilitate the issuance of trust preferred securities. The GrandSouth Trust is not consolidated in the Company’s financial statements.

We provide a full range of financial services through offices located throughout South Carolina. We provide full-service retail and commercial banking products.

Our results of operations are significantly affected by general economic and competitive conditions in our market areas and nationally, as well as changes in interest rates, sources of funding, government policies and actions of regulatory authorities. Future changes in applicable laws, regulations or government policies may materially affect our financial condition and results of operations.

The following discussion and analysis is presented on a consolidated basis and focuses on the major components of the Company’s operations and significant changes in its results of operations for the periods presented. We encourage you to read this discussion and analysis in conjunction with the financial statements and the related notes and the other statistical information included in this Form 10-Q and in our 2021 Form 10-K.

Total assets increased $50.3 million to $1.3 billion at June 30, 2022, or 4.18%, from December 31, 2021. This increase in assets was primarily due to increases in cash and cash equivalents of $18.8 million and loans of $19.3 million.

Total liabilities increased $51.6 million to $1.2 billion at June 30, 2022, or 4.66%, from December 31, 2021, due primarily to increases in total deposits of $52.1 million, which includes increases in interest-bearing deposits of $31.2 million.

Total shareholders’ equity decreased $1.3 million to $96.1 million, or 4.18%, from December 31, 2021, due changes in the fair value of AFS investments and payment of dividends partially offset by normal retention of earnings, exercise of stock options, and stock-based compensation expense. Book Value per common share decreased $0.39 to $18.22 at June 30, 2022 from $18.61 at December 31, 2021. Tangible book value per common share, a non-GAAP measure, also decreased $0.39 to $18.08 at June 30, 2022 from $18.47 at December 31, 2021.

The following is a reconciliations of book value to book value per common share and book value to tangible book value per common share for the periods indicated:

Total cash and cash equivalents increased $18.8 million to $142.9 million at June 30, 2022 from $124.1 million at December 31, 2021, primarily due to the increase in customer deposits. We continue to look for opportunities to re-invest excess cash in higher yielding assets, but will continue to hold adequate levels of liquid and short-term assets.

Our investment securities portfolio is classified as either AFS or HTM. The following table shows the amortized cost and fair value for our AFS and HTM investment portfolios at the dates indicated (in thousands).

AFS investment securities increased $4.2 million, or 3.73%, to $116.1 million at June 30, 2022 from $112.0 million at December 31, 2021. During the six months ended June 30, 2022, $3.3 million of AFS corporate bonds and $18.0 of AFS U.S. government agencies were purchased. HTM investment securities increased $6.0 million, to $6.0 million at June 30, 2022 from zero million at December 31, 2021. During the six months ended June 30, 2022, $6.0 million of HTM U.S. government agencies were purchased. We continue to look for opportunities to re-deploy funds from investment securities to higher yielding loans.

Management of the Company believes all unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost.

The composition and maturities of the AFS and HTM investment securities portfolios at June 30, 2022 are summarized in the following table (in thousands). Maturities are based on the final contractual payment dates, and do not reflect the impact of prepayments or early redemptions that may occur. The composition and maturity distribution of the securities portfolio is subject to change depending on rate sensitivity, capital, and liquidity needs. The weighted average yield for the month ended June 30, 2022 was calculated using net income (interest accrual plus or minus accretion/amortization) divided by ending book value.

The following table presents our loan portfolio composition and the corresponding percentage of total loans as of the dates indicated (in thousands). Other construction and land loans include residential acquisition and development loans and loans on commercial undeveloped land and one-to-four family improved and unimproved lots. Commercial real estate loans include loans on non-residential owner-occupied and non-owner-occupied real estate, multi-family, and owner-occupied investment property. Commercial and industrial loans include unsecured commercial loans and commercial loans secured by business assets.

Commercial real estate loan balances contracted during year to date primarily due to significant paydowns of existing loans.

Included in commercial loans are PPP loans totaling zero and $1.3 million as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022, all PPP loans were paid off or forgiven by the SBA.

When a loan becomes 15 days past due, we contact the borrower to inquire as to the status of the loan payment. When a loan becomes 30 days or more past due, we increase collection efforts to include all available forms of communication. Once a loan becomes 45 days past due, we generally issue a demand letter and further explore the reasons for non-repayment, discuss repayment options, and inspect the collateral. In the event the loan officer or collections staff has reason to believe restructuring will be mutually beneficial to the borrower and the Bank, the borrower is referred to the Bank’s Credit Administration staff to explore restructuring alternatives to foreclosure. Once the demand period has expired and it has been determined that restructuring is not a viable option, the Bank’s counsel is instructed to pursue foreclosure.

The accrual of interest on loans is discontinued at the time a loan becomes 90 days delinquent or when it becomes impaired, whichever occurs first, unless the loan is well secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual is reversed. Interest payments received on nonaccrual loans are generally applied as a direct reduction to the principal outstanding until the loan is returned to accrual status. Interest payments received on nonaccrual loans may be recognized as income on a cash basis if recovery of the remaining principal is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Interest payments applied to principal while the loan was on nonaccrual may be recognized in income over the remaining life of the loan after the loan is returned to accrual status.

If a loan is modified in a troubled debt restructure (“TDR”), the loan is generally placed on non-accrual until there is a period of satisfactory payment performance by the borrower (either immediately before or after the restructuring), generally six consecutive months, and the ultimate collectability of all amounts contractually due is not in doubt. For a discussion of TDRs, see the section entitled “Troubled Debt Restructurings” below.

The following table sets forth certain information with respect to our loan portfolio carrying balances of delinquencies at the dates indicated (in thousands). We had no loans 90 days or more past due and still accruing interest as of June 30, 2022. We had no loans 90 days or more past due that are still accruing interest as of December 31, 2021 that are not 98% guaranteed by the issuing agency. The decrease in past due consumer loans is primarily attributable to the sale of the purchased student loan portfolio, the balance of which, as of December 31, 2021, was $0.7 million, and decreased to zero as of June 30, 2022.

Total delinquencies as a percentage of loans decreased from 0.07% at December 31, 2021 to 0.01% at June 30, 2022. Delinquent loans decreased $0.6 million, or 86.60%, to $0.1 million at June 30, 2022 from $0.7 million at December 31, 2021. We continue to focus on collection efforts and favorable resolutions.

Nonperforming loans include all loans past due 90 days and over that are not 98% guaranteed by the issuing agency, certain impaired loans, and TDR loans that have not yet established a satisfactory period of payment performance (some of which may be contractually current). Nonperforming assets include nonperforming loans and other real estate owned (“REO”). The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated (in thousands).

The decrease in nonperforming loans and nonperforming assets is the result of the successful resolution and disposal of nonperforming loans and nonperforming assets by means of restructure, foreclosure, deed in lieu of foreclosure and sales.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession that we would not otherwise consider, for other than an insignificant period of time, the related loan is classified as a TDR. We strive to identify borrowers in financial difficulty early so that we may work with them to modify their loans before they reach nonaccrual status. Modified terms generally include extensions of maturity dates at a stated interest rate lower than the current market rate for a new loan with similar risk characteristics, reductions in contractual interest rates, periods of interest-only payments, and principal deferments. A restructuring that results in only a delay in payments that is insignificant is not considered an economic concession. While unusual, there may be instances of forgiveness of loan principal. We individually evaluate all substandard loans that experience a modification of terms to determine if a TDR has occurred.

All TDRs over $200,000 are considered to be impaired loans and are reported as such for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and the ultimate collectability of all amounts contractually due is not in doubt. We may also remove a loan from TDR and impaired status if the loan is subsequently restructured and at the time of the subsequent restructuring the borrower is not experiencing financial difficulties and, under the terms of the subsequent restructuring agreement, no concession has been granted to the borrower.

The following table sets forth amounts of classified and criticized loans at the dates indicated. As indicated in the table, loans classified as “doubtful” or “loss” are charged off immediately (in thousands).

Management continues to dedicate resources to monitoring and resolving classified and criticized loans.

The allowance for loan losses reflects our estimates of probable losses inherent in our loan portfolio at the balance sheet date. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of our loans in light of historical experience, the nature and volume of our loan portfolio, adverse situations that may affect our borrowers’ abilities to repay, the estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The methodology for determining the allowance for loan losses has two main components: the evaluation of individual loans for impairment and the evaluation of certain groups of homogeneous loans with similar risk characteristics.

A loan is considered impaired when it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan. We individually evaluate loans, or relationships, greater than $200,000 for impairment that are classified as nonaccrual, TDRs, or performing substandard loans. If the impaired loan is considered collateral dependent, a charge-off is taken based upon the appraised value of the property less an estimate of selling costs if foreclosure or sale of the property is anticipated. If the impaired loan is not collateral dependent, a specific reserve is established based upon an estimate of the future discounted cash flows after consideration of modifications and the likelihood of future default and prepayment.

The allowance for homogenous loans consists of a base loss reserve and a qualitative reserve. The loss rates for the base loss reserve, segmented into seven loan categories, contain average net loss rates ranging from approximately 0.00% to 0.54%.

The qualitative reserve adjusts the weighted average loss rates utilized in the base loss reserve for trends in the following internal and external factors:

Qualitative reserve adjustment factors are decreased for favorable trends and increased for unfavorable trends. There is no certainty that our allowance for loan losses will be appropriate over time to cover losses in our portfolio as economic and market conditions may ultimately differ from our reasonable and supportable forecast.

The following table summarizes the net charge-off detail as a percentage of average loans by loan composition for the periods indicated (in thousands).

Our allowance as a percentage of total loans increased to 1.48% at June 30, 2022 from 1.47% at December 31, 2021, and 1.47% at June 30, 2021, primarily as the result of loan growth in our CarBucks segment, which maintains a higher reserve allocation.

We have continued to experience limited charge-off amounts and stable collections of amounts previously charged-off. The overall historical loss rate used in our allowance for loan losses calculation continues to decline as previous quarters with larger loss rates are eliminated from the calculation as time passes. Our coverage ratio of nonperforming loans increased to 4,504.79% at June 30, 2022 from 1,017.27% at December 31, 2021 primarily as the result of the decreased balance of nonperforming loans during the period.

The following table presents deposits by category and percentage of total deposits as of the periods indicated (in thousands).

At June 30, 2022 and December 31, 2021, we estimate that we have approximately $443.8 million and $393.8 million, respectively, in uninsured deposits including related interest accrued and unpaid. Since it is not reasonably practicable to provide a precise measure of uninsured deposits, these amounts are estimates and are based on the same methodologies and assumptions used for the Bank’s regulatory reporting requirements by the FDIC for the Call Report.

As indicated in the above table, deposit balances increased approximately $52.1 million, or 4.92%, for the six months ended June 30, 2022 compared to December 31, 2021. The increase in total deposits was mainly attributable to the $42.7 million, or 8.53%, increase in money market accounts, the $13.1 million, or 24.92%, increase in interest-bearing demand accounts and $20.8 million, or 7.42%, increase in noninterest-bearing demand accounts, partially offset by a $25.2 million, or 12.06%, decline in time deposits.

Net income for the three months ended June 30, 2022 was $3.7 million, compared to $4.0 million for the same period in 2021. The decrease in net income for the period was primarily the result of increases in noninterest expenses totaling $1.6 million, partially offset by an increase in net interest income of $1.3 million. Of noninterest expenses during second quarter, $0.9 million is related to the Company’s pending merger with First Bancorp.

Net interest income increased $1.3 million, or 10.44%, to $13.4 million for the three months ended June 30, 2022, compared to $12.1 million for the same period in 2021. The increase in net interest income was primarily due to a higher volume in CarBucks loans and yields on taxable investments and federal funds sold and other interest earning deposits. This was partially offset by the decline in yields on our CarBucks loans and the increase in money market account interest rates.

The following table sets forth the average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets on a tax-equivalent basis, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting average tax-equivalent yields and cost for the periods indicated. All average balances are daily average balances. Nonaccrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees and costs that are amortized or accreted to interest income or expense.

The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately, based on the absolute values of changes due to rate and the changes due to volume.

Net interest income before provision for loan losses increased to $13.4 million for the three months ended June 30, 2022, compared to $12.1 million for the same period in 2021, due to improvements in volume, partially offset by unfavorable movements in interest rates.

The increase in tax-equivalent net interest income of $1.3 million related to volume was primarily the result of higher average loan (both Core Bank and CarBucks) which increased $34.8 million, and a $56.8 million decrease in average time deposits for the three months ended June 30, 2022 compared to the same period in 2021. The increase in average loan and taxable investment balances was partially offset by increases of $118.1 million in money market balances.

The decrease in tax-equivalent net interest income of $0.1 million related to rate was primarily the result of decreased yields on CarBucks loans, partially offset by increased yields on investments and interest-earning deposits and decreased costs on time deposits.

Our tax-equivalent net interest margin was 4.42% for the three months ended June 30, 2022, compared to 4.38% for the same period in 2021, an increase of four basis points. The increase in net interest margin was primarily attributable to higher average loan balances combined with interest rate reductions on our cost of funds partially offset by reduced yields on our CarBucks loans.

We recorded a provision for loan losses for the three months ended June 30, 2022 of $0.1 million due to organic loan growth. This compares to a $0.3 million provision for loan losses in for the same period in 2021. We are experiencing continued stabilization in asset quality, low charge-off amounts and a decline in the historical loss rates used in our allowance for loan losses model. In light of ongoing supply chain disruptions, labor shortages and the associated impact on monetary policy, there is a risk that loss rates could increase.

The following table summarizes the components of noninterest income and the corresponding changes between the three months ended June 30, 2022 and 2021 (in thousands):

Our noninterest income decreased $0.1 million to $0.6 million in the three months ended June 30, 2022, compared to the same period in 2021 due primarily to decreases in net gain on sale of premises and equipment and other noninterest income, partially offset by an increase in service charges on deposit accounts.

The following table summarizes the components of noninterest expense and the corresponding change between the three months ended June 30, 2022 and 2021 (in thousands):

Our noninterest expense increased $1.6 million to $9.0 million in the three months ended June 30, 2022, compared to the same period in 2021, primarily as the result of increases in compensation and employee benefits of $0.7 million and increases in professional and advisory expenses of $0.9 million. The increase in compensation and employee benefits is primarily related to increased full-time equivalent employees combined with annual raises and increases in employee benefits, incentives and commissions. The increase in professional and advisory expenses is primarily related to our pending merger with First Bancorp.

Income tax expense totaled $1.2 million for the three months ended June 30, 2022, compared to $1.2 million for the same period in 2021. Income tax expense benefited from tax-exempt income related to municipal bond investments and BOLI income resulting in effective tax rates of 24.3% and 23.4% for the three months ended June 30, 2022 and 2021, respectively.

We continue to have unutilized net operating losses for state income tax purposes and no material current tax receivables or liabilities.

See Note 9, “Reportable Segments” in notes to the consolidated financial statements included under Item 1 -“Financial Statements” for additional disclosures related to our reportable business segments. Fluctuations in noninterest income and noninterest expense incurred directly by the segments are more fully discussed in the “Noninterest income” and “Noninterest expense” sections above.

Core Bank consists of commercial and consumer lending and full-service branches in its geographic region with its own management team. The branches provide a full range of traditional banking products as well as treasury services and merchant services.

Core Bank net income increased $0.2 million to $2.9 million for the three months ended June 30, 2022 compared to $2.7 million for the same period in 2021. Net interest income increased $0.8 million to $8.8 million for the three months ended June 30, 2022 from $8.0 million for the same period a year ago primarily due to increased yields on taxable investments and federal funds sold and other interest earning deposits, partially offset by an increase in interest rates on money market accounts. Provision for loan losses increased $0.1 million for the three months ended June 30, 2022 compared to 2021 due to higher organic loan growth, partially offset by lower net charge off activity during the second quarter of 2022 as compared to the second quarter of 2021. Noninterest expense increased $0.4 million to $5.3 million for the 2022 period compared to $4.9 million for the same period in 2021 due primarily to an increase in compensation and employee benefits expense.

CarBucks provides specialty floor plan inventory financing for more than 1,600 small automobile dealers in over 20 states. Credit lines are established for each approved dealer using our Board approved underwriting guidelines. Advances and repayments on credit lines averaging $0.1 million are vehicle specific. The inventory typically consists of over 12,000 floored used vehicles with an average price of $8,700 per unit, generally has an average 65-day turnover, and generates approximately $300 in financing fees per vehicle which is included in loan interest income.

CarBucks net income increased $0.2 million to $1.3 million for the three months ended June 30, 2022 compared to $1.2 million for the same three-month period in 2021. Net interest income increased $0.3 million to $4.4 million for the 2022 period from $4.2 million for the same period a year ago primarily due to increased fees related to increases in inventory. Provision for loan losses decreased $0.3 million for the three months ended June 30, 2022 compared to 2021 due to a contraction in the loan balance during the second quarter of 2022 as opposed to an increase in the second quarter of 2021 and lower qualitative adjustments. This was partially offset by higher net charges during the second quarter of 2022 as compared to the same period in 2021. Noninterest expense increased $0.3 million to $2.8 million for the 2022 period compared to $2.4 million for the same period in 2021 due primarily to an increase in compensation and employee benefits expense in 2022.

Other includes parent company transactions, investment securities portfolio, BOLI, excess death benefits, net intercompany eliminations, and certain other activities not currently allocated to the aforementioned segments.

Other net income decreased $0.7 million to a loss of $0.6 million for the three months ended June 30, 2022 compared to the same period in 2021 primarily due to an increase in noninterest expense, specifically professional and advisory services expenses, partially offset by increased interest income related to our taxable investments. Of professional and advisory expenses during the quarter, $0.9 million were related to our pending merger with First Bancorp.

Net income for the six months ended June 30, 2022 was $7.8 million, compared to $7.6 million for the same period in 2021. The increase in net income for the period was primarily the result of increases in net interest income of $2.2 million, partially offset by an increase in noninterest expenses totaling $1.9 million, $0.9 million of which is included in professional and advisory expenses and is related to our pending merger with First Bancorp.

Net interest income increased $2.2 million, or 9.27%, to $26.4 million for the six months ended June 30, 2022, compared to $24.2 million for the same period in 2021. The increase in net interest income was primarily due to a higher volume in loans (both Core Bank and CarBucks), yields on taxable investments and federal funds sold and other interest earning deposits, and decreases in the balance of and costs on time deposits. This was partially offset by the decline in yields on loans (both Core Bank and CarBucks) and balances of money market accounts.

Net interest income before provision for loan losses increased to $26.4 million for the six months ended June 30, 2022, compared to $24.2 million for the same period in 2021, due to improvements in volume, partially offset by unfavorable movements in interest rates.

The increase in tax-equivalent net interest income of $2.7 million related to volume was primarily the result of higher average loan (both Core Bank and CarBucks) which increased $41.3 million, and a $64.1 million decrease in average time deposits for the six months ended June 30, 2022 compared to the same period in 2021. The increase in average loan and taxable investment balances was partially offset by increases of $118.7 million in money market balances.

The decrease in tax-equivalent net interest income of $0.5 million related to rate was primarily the result of decreased yields on Core Bank and CarBucks loans and decreased costs on time deposits, partially offset by increased yields on investments and interest-earning deposits.

Our tax-equivalent net interest margin was 4.45% for the six months ended June 30, 2022, compared to 4.47% for the same period in 2021, a decrease of two basis points. The decrease in net interest margin was primarily attributable to reduced yields on our Core Bank and CarBucks loans, partially offset by higher average loan balances combined with interest rate reductions on our cost of funds.

We recorded a provision for loan losses for the six months ended June 30, 2022 of $0.4 million due to organic loan growth and certain qualitative adjustments. This compares to a $0.6 million provision for loan losses in for the same period in 2021. We are experiencing continued stabilization in asset quality, low charge-off amounts and a decline in the historical loss rates used in our allowance for loan losses model. In light of ongoing supply chain disruptions, labor shortages and the associated impact on monetary policy, there is a risk that loss rates could increase.

The following table summarizes the components of noninterest income and the corresponding changes between the six months ended June 30, 2022 and 2021 (in thousands):

Our noninterest income decreased less than $0.1 million to $1.3 million in the six months ended June 30, 2022, compared to the same period in 2021, due primarily to decreases in net gain on sale of premises and equipment and other noninterest income, partially offset by an increase in service charges on deposit accounts.

The following table summarizes the components of noninterest expense and the corresponding change between the six months ended June 30, 2022 and 2021 (in thousands):

Our noninterest expense increased $1.9 million to $17.0 million in the six months ended June 30, 2022, compared to the same period in 2021, primarily as the result of increases in compensation and employee benefits of $1.2 million and increases in professional and advisory expenses of $0.8 million. The increase in compensation and employee benefits is primarily related to increased full-time equivalent employees combined with annual raises and increases in employee benefits, incentives and commissions. The increase in professional and advisory expenses is primarily related to our pending merger with First Bancorp.

Income tax expense totaled $2.5 million for the six months ended June 30, 2022, compared to $2.4 million for the same period in 2021. Income tax expense benefited from tax-exempt income related to municipal bond investments and BOLI income resulting in effective tax rates of 23.9% and 23.7% for the six months ended June 30, 2022 and 2021, respectively.

We continue to have unutilized net operating losses for state income tax purposes and no material current tax receivables or liabilities.

Core Bank net income increased $0.3 million to $5.0 million for the six months ended June 30, 2022 compared to $4.7 million for the same period in 2021. Net interest income increased $1.0 million to $16.9 million for the six months ended June 30, 2022 from $15.9 million for the same period a year ago primarily due to increased loan volume and reduced funding costs, partially offset by a reduction in loan yield. Provision for loan losses decreased $0.8 million for the six months ended June 30, 2022 compared to 2021 due to lower loan growth and qualitative adjustments to the allowance for loan losses along with higher net recovery activity in the six months ended June 30, 2022 as compared to the same period in 2021. Noninterest expense increased $1.4 million to $11.5 million for the 2022 period compared to $10.2 million for the same period in 2021 due primarily to an increase in compensation and employee benefits expense and professional and advisory expenses in 2022. Of professional and advisory expenses through June 30, 2022, $0.9 million were related to our pending merger with First Bancorp.

CarBucks provides specialty floor plan inventory financing for more than 1,600 small automobile dealers in over 20 states. Credit lines are established for each approved dealer using our Board approved underwriting guidelines. Advances and repayments on credit lines averaging $0.1 million are vehicle specific. The inventory typically consists of over 12,000 floored used vehicles with an average price of $8,300 per unit, generally has an average 66-day turnover, and generates approximately $300 in financing fees per vehicle which is included in loan interest income.

CarBucks net income decreased $0.3 million to $2.5 million for the six months ended June 30, 2022 compared to $2.8 million for the same six-month period in 2021. Net interest income increased $0.8 million to $9.3 million for the six months ended June 30, 2022 compared to $8.4 million for the same period a year ago primarily due to increased fees related to increases in inventory. Provision for loan losses increased $0.6 million for the six months ended June 30, 2022 compared to the same period in 2021 due to increased net charge offs and higher loan balance, partially offset by lower qualitative adjustments. Noninterest expense increased $0.6 million to $5.5 million for the six months ended June 30, 2022 compared to $4.9 million for the same period in 2021 due primarily to increases in compensation and employee benefits expense and other noninterest expense in 2022.

Other net income increased $0.2 million to $0.3 million for the six months ended June 30, 2022 compared to the same period in 2021 primarily due to increased interest income related to our taxable investments and federal funds sold and other interest earning deposits.

Liquidity and Market Risk. Our primary sources of funds consist of deposit inflows, loan repayments, advances from the Federal Home Loan Bank of Atlanta (“FHLB”), and the sale of available-for-sale securities. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition. Our ALCO, under the direction of our Chief Financial Officer, is responsible for establishing and monitoring our liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting the borrowing needs and deposit withdrawals of our customers as well as unanticipated contingencies. We have not experienced any unusual pressure on our deposit balances or our liquidity position as a result of the COVID-19 pandemic. We believe that, as of June 30, 2022, we have enough sources of liquidity to satisfy our liquidity needs for the next twelve months and thereafter.

We regularly monitor and adjust our investments in liquid assets based upon our assessment of expected loan demand, expected deposit flows and borrowing maturities, yields available on interest-earning deposits and securities, and the objectives of our asset/liability management program. Excess liquid assets are invested generally in FHLB and Federal Reserve Bank of Richmond (“FRB”) interest-earning deposits and investment securities and are also used to pay off short-term borrowings. At June 30, 2022, cash and cash equivalents totaled $142.9 million. Included in this total was $100.0 million held at the FRB, $1.2 million held at the FHLB, and $34.9 million held at correspondent banks in interest-earning accounts.

Our cash flows are derived from operating activities, investing activities and financing activities as reported in our consolidated statements of cash flows included in our unaudited consolidated financial statements of this From 10-Q. The following summarizes the most significant sources and uses of liquidity during the six months ended June 30, 2022 and 2021 (in thousands):

In addition, because the Company is a separate entity from the Bank, it must provide for its own liquidity. The Company is responsible for payment of dividends declared on its common and preferred stock and interest and principal on any outstanding debt or trust preferred securities. The Company currently has internal capital resources to meet these obligations. While the Company has access to capital, the ultimate sources of its liquidity are dividends from the Bank and tax allocation agreements, which are limited by applicable law and regulations. The Bank paid no dividends to the Company in the six months ended June 30, 2022 or 2021.

At June 30, 2022, we had $330.1 million in outstanding commitments to extend credit through unused lines of credit and stand-by letters of credit.

Depending on market conditions, we may be required to pay higher rates on our deposits or other borrowings than we currently pay on certificates of deposit. Based on historical experience and current market interest rates, we anticipate that following their maturity we will retain a large portion of our retail certificates of deposit with maturities of one year or less as June 30, 2022.

In addition to loans, we invest in securities that provide a source of liquidity, both through repayments and as collateral for borrowings. Our securities portfolio includes both callable securities (which allow the issuer to exercise call options) and mortgage-backed securities (which allow borrowers to prepay loans). Accordingly, a decline in interest rates would likely prompt issuers to exercise call options and borrowers to prepay higher-rate loans, producing higher than otherwise scheduled cash flows.

Liquidity management is both a daily and long-term function of management. If we require more funds than we are able to generate locally, we have a borrowing agreement with the FHLB. The following summarizes our borrowing capacity as of June 30, 2022 (in thousands):

Capital Resources. Shareholders’ equity decreased $1.3 million to $96.1 million at June 30, 2022 compared to $97.4 million at December 31, 2021. This decrease was primarily attributable to after-tax decreases in market value of AFS investment securities of $8.5 million and dividends declared of $1.4 million offset by net income of $7.8 million, stock-based compensation of $0.3 million, and stock options exercised of $0.6 million

The tables below summarize the capital amounts and ratios of the Bank and the minimum regulatory requirements in accordance with Basel III and the prompt corrective action provisions at June 30, 2022 and December 31, 2021 (dollars in thousands).

The tables below summarize the capital amounts and ratios of the Company and the minimum⁽¹⁾regulatory requirements in accordance with Basel III at June 30, 2022, and December 31, 2021 (in thousands).

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

The Company’s management, including its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) as of June 30, 2022. Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer each concluded that as of June 30, 2022, the end of the period covered by this Form 10-Q, the Company maintained effective disclosure controls and procedures.

There have been no changes to the Company’s internal control over financial reporting that occurred during the quarter ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

In the ordinary course of operations, we are often involved in legal proceedings. In the opinion of management, neither the Company nor the Bank is a party to, nor is their property the subject of, any material pending legal proceedings, other than ordinary routine litigation incidental to their business, nor has any such proceeding been terminated during the quarter ended June 30, 2022.

As previously described, on June 21, 2022, the Company and First Bancorp entered into the Merger Agreement, pursuant to which, upon satisfaction of the conditions set forth in the Merger Agreement, the Company will merge with and into First Bancorp, with First Bancorp being the surviving corporation and the Company ceasing to be a separate entity.

Investing in shares of our common stock involves certain risks, including those identified and described in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on March 21, 2022, as well as cautionary statements contained in this report, including those under the caption “Cautionary Note Regarding Forward-Looking Statements,” risks and matters described elsewhere in this report and in our other filings with the SEC.

We are providing these additional risk factors to supplement the risk factors contained in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Regulatory approvals may not be received, may take longer than expected, or may impose conditions that are not presently anticipated or that could have an adverse effect on the combined company following the Merger.

Before the Merger may be completed, the Company, the Bank, First Bancorp, and First Bank must obtain approvals from the Board of Governors of the Federal Reserve System and the North Carolina Commissioner of Banks. Other approvals, waivers or consents from regulators may also be required. In determining whether to grant these approvals, the regulators consider a variety of factors, including the regulatory standing of each party. An adverse development in any party’s regulatory standing or other factors could result in an inability to obtain or a delay in receiving their approval. These regulators may impose conditions on the completion of the Merger or require changes to the terms of the Merger. Such conditions or changes could delay or prevent completion of the Merger or impose additional costs on or limit the revenues of the combined company following the Merger, any of which might have an adverse effect on the combined company following the Merger.

Combining the companies may be more difficult, costly, or time-consuming than expected.

The Company and First Bancorp have operated and, until the completion of the Merger, will continue to operate independently. The success of the Merger, including anticipated benefits and cost savings, will depend, in part, on First Bancorp’s ability to successfully combine and integrate the businesses of First Bancorp and the Company in a manner that permits growth opportunities and does not materially disrupt the existing customer relations or result in decreased revenues due to loss of customers. It is possible that the integration process could result in the loss of key employees, the disruption of either company’s ongoing businesses or inconsistencies in standards, controls, procedures, and policies that could adversely affect the combined company’s ability to maintain relationships with clients, customers, depositors and employees or to achieve the anticipated benefits and cost savings of the Merger. The loss of key employees could adversely affect the Company’s ability to successfully conduct its business, which could have an adverse effect on the Company’s financial results and the value of the Company’s common stock. If First Bancorp experiences difficulties with the integration process, the anticipated benefits of the Merger may not be realized fully or at all or may take longer to realize than expected. As with any merger of financial institutions, there also may be business disruptions that cause First Bancorp and/or the Company to lose customers or cause customers to remove their accounts from First Bancorp and/or the Company and move their business to competing financial institutions. Integration efforts will also divert management attention and resources. These integration matters could have an adverse effect on each of First Bancorp and the Company during this transition period and for an undetermined period after completion of the Merger on the combined company.

Additionally, the combined company may not be able to successfully achieve the level of cost savings, revenue enhancements and other synergies that it expects, and may not be able to capitalize upon the existing customer relationships of each party to the extent anticipated, or it may take longer, or be more difficult or expensive than expected, to achieve these goals. These circumstances could have an adverse effect on the combined company’s business, results of operation and stock price.

The Merger is subject to certain closing conditions that, if not satisfied or waived, will result in the Merger not being completed. Termination of the Merger Agreement could negatively impact the Company.

The Merger is subject to customary conditions to closing, including the receipt of required regulatory approvals and approval of the Merger Agreement by the Company’s shareholders. If any condition to the Merger is not satisfied or waived, to the extent permitted by law, the Merger will not be completed. In addition, either First Bancorp or the Company may terminate the Merger Agreement under certain circumstances even if the Merger Agreement is approved by the Company’s shareholders, including but not limited to, if the Merger has not been completed on or before March 31, 2023.

If the Merger Agreement is terminated, there may be various consequences. For example, the Company’s businesses may have been impacted adversely by the failure to pursue other beneficial opportunities due to the focus of management on the Merger, without realizing any of the anticipated benefits of completing the Merger. Additionally, if the Merger Agreement is terminated, the market price of the Company’s common stock could decline to the extent that the current market prices reflect a market assumption that the Merger will be completed. These circumstances could have an adverse effect on the Company’s results of operation.

The Company will be subject to business uncertainties and contractual restrictions while the Merger is pending.

The Merger Agreement restricts the Company from operating its business other than in the ordinary course and prohibits the Company from taking specified actions without First Bancorp’s consent until the Merger occurs. These restrictions may prevent the Company from pursuing attractive business opportunities that may arise prior to the completion of the Merger. In addition, uncertainty about the effect of the Merger on employees and customers may have an adverse effect on the Company. These uncertainties may impair the Company’s ability to attract, retain and motivate key personnel until the Merger is completed and may impair the Company’s ability to attract, retain and grow its customer base until the Merger is complete. Retention of certain employees by the Company may be challenging while the Merger is pending, as certain employees may experience uncertainty about their future roles with the Company or the combined company following the Merger. If key employees depart because of issues relating to the uncertainty and difficulty of integration or a desire not to remain with the Company or the combined company, the Company’s business could be harmed. Further, the uncertainty caused by the pending Merger could cause the Company’s customers and business associates to seek to change their existing business relationships with the Company. These circumstances could have an adverse effect on the combined company’s business, results of operation and stock price.

The market value of the merger consideration that the Company’s shareholders will receive as a result of the Merger may fluctuate.

If the Merger is completed, each share of the Company’s common stock will be converted into the right to receive 0.91 shares of First Bancorp common stock, and cash in lieu of any fractional shares. The market value of the merger consideration may vary from the closing price of First Bancorp common stock on the date the Merger was announced, on the date that the proxy statement/prospectus is mailed to the Company’s shareholders, on the date of the meeting of the Company’s shareholders, on the date the Merger is consummated, and thereafter. Stock price changes may result from a variety of factors, including general market and economic conditions, changes in the respective businesses, operations and prospects, and the regulatory standing of First Bancorp and the Company. Many of these factors are beyond the control of the Company. Any change in the market price of First Bancorp common stock prior to completion of the Merger will affect the amount of and the market value of the merger consideration that the Company’s shareholders will receive upon completion of the Merger. Accordingly, at the time of the shareholders meeting, the Company’s shareholders will not know or be able to calculate the amount or the market value of the merger consideration they would receive upon completion of the Merger.

Further, the results of operations of the combined company following the Merger and the market price of the combined company’s shares of common stock may be affected by factors different from those currently affecting the independent results of operations of First Bancorp and the Company.

If the Merger is not completed, the Company will have incurred substantial expenses without realizing the expected benefits of the Merger.

The Company has incurred and will incur substantial expenses in connection with the negotiation and completion of the transactions contemplated by the Merger Agreement. If the Merger is not completed, the Company would have to recognize these expenses without realizing the expected benefits of the Merger.

The Merger Agreement limits the Company’s ability to pursue an alternative acquisition proposal and could require the Company to pay a termination fee of $7.2 million under certain circumstances relating to alternative acquisition proposals.

The Merger Agreement prohibits the Company from soliciting, initiating, encouraging, inducing, or knowingly facilitating certain alternative acquisition proposals with any third party, subject to exceptions set forth in the Merger Agreement. The Merger Agreement also provides for the payment by the Company to First Bancorp of a termination fee in the amount of $7.2 million in the event that the Company or First Bancorp terminates the Merger Agreement for certain specified reasons related to an alternative acquisition proposal. These provisions might discourage a potential competing acquirer that might have an interest in acquiring all or a significant part of the Company from considering or proposing such an acquisition.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


i South Carolina	i 57-1104394
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

i 381 Halton Road,
i Greenville, i South Carolina	i 29607
(Address of principal executive offices)	(Zip Code)

Title of each class	Trading symbol(s)	Name of each exchange on which registered
None	None	None

	(Unaudited)			(Audited)
(in thousands, except share data)	June 30, 2022			December 31, 2021
Assets

Cash and due from banks	$	i 5,036		$	i 2,522
Interest-earning deposits		i 136,041			i 120,602
Federal funds sold		i 1,859			i 977
Cash and cash equivalents		i 142,936			i 124,101

Investments - available for sale		i 116,137			i 111,962
Investments - held to maturity		i 5,990			—
Other investments, at cost		i 2,626			i 2,984
Loans receivable, net of deferred fees and costs		i 952,813			i 933,475
Allowance for loan losses		( i 14,100	)		( i 13,723	)
Premises and equipment, net		i 17,655			i 17,783
Real estate owned		i 842			i 842
Accrued interest receivable		i 4,746			i 4,808
Bank owned life insurance		i 14,935			i 14,778
Net deferred tax asset		i 5,342			i 2,968
Goodwill		i 737			i 737
Other assets		i 3,373			i 3,007

Total assets	$	i 1,254,032		$	i 1,203,722

Liabilities and Shareholders’ Equity

Liabilities:
Deposits:
Noninterest-bearing	$	i 301,487		$	i 280,665
Interest-bearing		i 809,614			i 778,376
Total deposits		i 1,111,101			i 1,059,041
Federal Home Loan Bank advances		i 5,000			i 5,000
Junior subordinated notes		i 35,924			i 35,864
Accrued interest payable		i 254			i 383
Accrued expenses and other liabilities		i 5,632			i 6,029
Total liabilities		i 1,157,911			i 1,106,317

Commitments and contingencies (Notes 13 and 23)

Shareholders’ Equity:
Preferred stock - Series A - i i no / par value; i i 287,895 / shares authorized, i i i i 282,828 / / / shares issued, and outstanding as of June 30, 2022 and December 31, 2021		—			—
Common stock - i i no / par value; i i 20,000,000 / shares authorized; i i 5,209,542 / and i i 5,168,681 / shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		—			—
Additional paid in capital		i 45,424			i 44,570
Retained earnings		i 58,026			i 51,649
Accumulated other comprehensive income		( i 7,329	)		i 1,186
Total shareholders’ equity		i 96,121			i 97,405
Total liabilities and shareholders’ equity	$	i 1,254,032		$	i 1,203,722


	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2022			2021			2022			2021
Net income	$	i 3,693		$	i 3,963		$	i 7,801		$	i 7,557
Other comprehensive income (loss):
Change in unrealized holding gains (losses) on securities available for sale		( i 4,596	)		i 1,095			( i 10,888	)		( i 901	)
Income tax effect related to items of other comprehensive loss		i 1,001			( i 238	)		i 2,373			i 196
Total other comprehensive income (loss), after tax		( i 3,595	)		i 857			( i 8,515	)		( i 705	)
Comprehensive income (loss)	$	i 98		$	i 4,820		$	( i 714	)	$	i 6,852


	For the Six Months Ended June 30,
(in thousands)	2022			2021
Cash flows from operating activities:
Net income	$	i 7,801		$	i 7,557
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		i 724			i 722
Investment amortization, net		i 415			i 678
Provision for loan losses		i 427			i 551
Provision for real estate owned		—			i 87
Stock-based compensation expense		i 274			i 308
Income on bank owned life insurance, net		( i 157	)		( i 177	)
Gain on sale of fixed assets		( i 36	)		( i 84	)
Net change in operating assets and liabilities:
Accrued interest receivable		i 62			i 209
Other assets		( i 366	)		( i 1,788	)
Accrued interest payable		( i 129	)		( i 64	)
Other liabilities		( i 397	)		i 832
Net cash provided by operating activities		i 8,618			i 8,831

Cash flows from investing activities:
Activity for investment securities available for sale:
Purchases		( i 27,225	)		( i 37,013	)
Maturities/calls and principal repayments		i 5,756			i 14,565
Activity for investment securities held to maturity:
Net increase in loans		( i 19,602	)		( i 30,489	)
Redemption of BOLI policies		—			i 429
Proceeds from sale of fixed assets		i 49			i 87
Purchase of fixed assets		( i 335	)		( i 726	)
Purchase of other investments, at cost		( i 142	)		—
Redemption of other investments, at cost		i 500			i 2,026
Net cash used in investing activities		( i 40,999	)		( i 51,121	)

Cash flows from financing activities:
Net increase in deposits		i 52,060			i 69,902
Repurchase of common stock		—			( i 3,946	)
Cash received upon exercise of stock options		i 580			i 845
Dividends paid on common stock		( i 1,347	)		( i 1,037	)
Dividends paid on preferred stock		( i 77	)		( i 60	)
Net cash provided by financing activities		i 51,216			i 65,704
Net change in cash and cash equivalents		i 18,835			i 23,414
Cash and cash equivalents, beginning of period		i 124,101			i 63,025
Cash and cash equivalents, end of period	$	i 142,936		$	i 86,439

Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest on deposits and other borrowings	$	i 1,283		$	i 2,730
Income taxes		i 3,380			i 3,072

Grandsouth Bancorporation – ‘10-Q’ for 6/30/22

On: Monday, 8/15/22, at 10:01am ET · For: 6/30/22 · Accession #: 1552781-22-533 · File #: 0-31937

Previous ‘10-Q’: ‘10-Q’ on 5/16/22 for 3/31/22 · Next & Latest: ‘10-Q’ on 11/14/22 for 9/30/22 · 5 References:

Quarterly Report — Form 10-Q

Filing Table of Contents

‘10-Q’ — Quarterly Report

Document Table of Contents

This is an HTML Document rendered as filed. [ Alternative Formats ]

Dates Referenced Herein and Documents Incorporated by Reference

4 Subsequent Filings that Reference this Filing

1 Previous Filing that this Filing References

		Page No.

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets – June 30, 2022 and December 31, 2021	3
	Consolidated Statements of Income – Three and Six Months Ended June 30, 2022 and 2021	4
	Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2022 and 2021	5
	Consolidated Statements of Changes in Shareholders’ Equity – Three and Six Months Ended June 30, 2022 and 2021	6
	Consolidated Statements of Cash Flows – Six Months Ended June 30, 2022 and 2021	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	50

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3.	Defaults Upon Senior Securities	53
Item 4.	Mine Safety Disclosures	53
Item 5.	Other Information	53
Item 6.	Exhibits	54
	Signatures	55

	June 30,		December 31,
	2022		2021
Federal Home Loan Bank stock	$	i 790	$	i 733
Investment in Trust Preferred Securities		i 247		i 247
Certificates of deposit		i 1,004		i 1,504
Other investments		i 585		i 500
Total other investments, at cost	$	i 2,626	$	i 2,984

	·	Pass (1-5) – Acceptable loans with any identifiable weaknesses appropriately mitigated.
	·	Special Mention (6) – Potential weakness or identifiable weakness present without appropriate mitigating factors; however, loan continues to perform satisfactorily with no material delinquency noted. This may include some deterioration in repayment capacity and/or loan-to-value of securing collateral.
	·	Substandard (7) – Significant weakness that remains unmitigated, most likely due to diminished repayment capacity, serious delinquency, and/or marginal performance based upon restructured loan terms.
	·	Doubtful (8) – Significant weakness that remains unmitigated and collection in full is highly questionable or improbable.
	·	Loss (9) – Collectability is unlikely resulting in immediate charge-off.

	As Of
(in thousands, except share data)	June 30, 2022			December 31, 2021
Book Value (GAAP)	$	96,121		$	97,405
Book Value Attributable to Preferred Shares		(1,204	)		(1,204	)
Book Value Attributable to Common Shares		94,917			96,201
Outstanding common shares		5,209,542			5,168,681
Book Value Per Common Share	$	18.22		$	18.61

Book Value (GAAP)	$	96,121		$	97,405
Book Value Attributable to Preferred Shares		(1,204	)		(1,204	)
Book Value Attributable to Common Shares		94,917			96,201
Goodwill and intangibles		(737	)		(737	)
Book Value Attributable to Common Shares (Tangible)	$	94,180		$	95,464
Outstanding common shares		5,209,542			5,168,681
Tangible Book Value Per Common Share	$	18.08		$	18.47

	June 30, 2022				December 31, 2021
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale
U.S. government agencies	$	27,451	$	25,998	$	9,479	$	9,439
State and municipal obligations		25,930		22,475		26,011		26,677
Mortgage-backed securities - agency		30,245		28,040		33,191		33,418
Collateralized mortgage obligations - agency		24,124		23,045		26,968		27,435
Asset-backed securities		2,311		2,217		2,599		2,590
Corporate bonds		15,450		14,362		12,200		12,403
	$	125,511	$	116,137	$	110,448	$	111,962

Held to maturity
U.S. government agencies	$	5,990	$	5,947	$	—	$	—
	$	5,990	$	5,947	$	—	$	—

	Less than one year					More than one year through five years					More than five years through ten years					More than ten years					Total securities
	Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield
Available for sale
U.S. government agencies	$	—		0.00	%	$	17,971		1.48	%	$	9,480		1.31	%	$	—		0.00	%	$	27,451		1.42	%
State and municipal obligations		—		0.00	%		—		0.00	%		7,378		2.05	%		18,552		2.35	%		25,930		2.26	%
Mortgage-backed securities - agency		—		0.00	%		147		3.82	%		7,887		1.57	%		22,211		1.45	%		30,245		1.49	%
Collateralized mortgage obligations - agency		—		0.00	%		—		0.00	%		12,214		2.20	%		11,910		-0.11	%		24,124		1.06	%
Asset-backed securities		—		0.00	%		—		0.00	%		513		1.33	%		1,798		1.67	%		2,311		1.60	%
Corporate bonds		—		0.00	%		—		0.00	%		14,700		4.03	%		750		4.92	%		15,450		4.07	%
Total securities available-for-sale	$	—		0.00	%	$	18,118		1.50	%	$	52,172		2.43	%	$	55,221		1.47	%	$	125,511		1.87	%

Held to maturity
U.S. government agencies	$	—		0.00	%	$	5,990		2.57	%	$	—		0.00	%	$	—		0.00	%	$	5,990		2.57	%
Total securities held to maturity	$	—		0.00	%	$	5,990		2.57	%	$	—		0.00	%	$	—		0.00	%	$	5,990		2.57	%

	June 30, 2022					December 31, 2021
	Balance			Percent		Balance			Percent
Real estate mortgage loans:
One-to four-family residential	$	145,229			15.23	$	132,836			14.22
Commercial real estate		411,190			43.13		423,552			45.36
Home equity loans and lines of credit		21,389			2.24		21,568			2.31
Residential construction		36,443			3.82		38,881			4.16
Other construction and land		82,223			8.62		75,682			8.10
Commercial		250,584			26.30		234,355			25.09
Consumer		6,275			0.66		7,129			0.76
Loans receivable, gross		953,333			100.00		934,003			100.00
Net deferred loan costs (fees)		(520	)				(528	)

Loans receivable, net of deferred fees	$	952,813				$	933,475

	Delinquent loans
	30-59 Days			60-89 Days			90 Days and Over			Total
June 30, 2022
One-to-four family residential	$	—		$	39		$	—		$	39
Commercial		—			—			54			54
Total delinquent loans	$	—		$	39		$	54		$	93
Percent of total loans, net		0.00	%		0.00	%		0.01	%		0.01	%

December 31, 2021
One-to-four family residential	$	—		$	—		$	50		$	50
Commercial		54			—			—			54
Consumer		—			—			590			590
Total	$	54		$	—		$	640		$	694
Percent of total loans, net		0.01	%		0.00	%		0.07	%		0.07	%

	For the Three Months Ended June 30,
	2022								2021
	Average Outstanding Balance			Interest		Yield/ Rate			Average Outstanding Balance			Interest		Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Loans, Core Bank⁽¹⁾	$	825,660		$	8,559		4.16	%	$	817,045		$	8,397		4.12	%
Loans, Carbucks⁽²⁾		108,963			5,205		19.16	%		82,789			4,512		21.86	%
Investments - taxable		112,285			533		1.90	%		118,227			358		1.21	%
Investments - tax exempt⁽³⁾		11,141			88		3.17	%		12,648			89		2.82	%
Federal funds sold and other interest earning deposits		155,351			218		0.56	%		76,508			23		0.12	%
Other investments, at cost		2,618			14		2.14	%		5,248			31		2.37	%

Total interest-earning assets		1,216,018			14,617		4.82	%		1,112,465			13,410		4.84	%

Noninterest-earning assets		36,844								37,716

Total assets	$	1,252,862							$	1,150,181

Interest-bearing liabilities:
Savings accounts	$	16,999		$	4		0.09	%	$	12,560		$	3		0.10	%
Time deposits		192,422			144		0.30	%		249,266			296		0.48	%
Money market accounts		545,251			583		0.43	%		427,155			462		0.43	%
Interest bearing transaction accounts		58,774			27		0.18	%		67,423			42		0.25	%
Total interest bearing deposits		813,446			758		0.37	%		756,404			803		0.43	%

FHLB advances		5,000			5		0.40	%		16,000			36		0.91	%
Junior subordinated debentures		35,906			450		5.03	%		35,786			432		4.84	%
Other borrowings		1			—		0.00	%		—			—		0.00	%

Total interest-bearing liabilities		854,353			1,213		0.57	%		808,190			1,271		0.63	%

Noninterest-bearing deposits		295,671								248,506

Other non interest bearing liabilities		5,499								5,780

Total liabilities		1,155,523								1,062,476
Total equity		97,339								87,705

Total liabilities and equity	$	1,252,862							$	1,150,181

Tax-equivalent net interest income				$	13,404							$	12,139

Net interest-earning assets⁽⁴⁾	$	361,665							$	304,275

Average interest-earning assets to interest-bearing liabilities		142.33	%							137.65	%

Tax-equivalent net interest rate spread⁽⁵⁾							4.25	%							4.21	%
Tax-equivalent net interest margin⁽⁶⁾							4.42	%							4.38	%

⁽¹⁾	Core Bank is the bank’s primary business to provide traditional deposit and lending products and services to commercial and retail banking clients.
⁽²⁾	Carbucks is the bank’s division that provides specialty floor plan lending to small automobile dealers in over 20 states.
⁽³⁾	Tax exempt investments are calculated giving effect to a 21% federal tax rate, or $19,000 and $19,000 for the three months ended June 30, 2022 and 2021, respectively.
⁽⁴⁾	Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
⁽⁵⁾	Tax-equivalent net interest rate spread represents the difference between the tax equivalent yield on average interest-earning assets and the cost of average interest-bearing liabilities.
⁽⁶⁾	Tax-equivalent net interest margin represents tax equivalent net interest income divided by average total interest-earning assets.

	For the Three Months Ended June 30, 2022
	Compared to the Three Months Ended June 30, 2021
	Increase (decrease) due to:
(In thousands)	Volume			Rate			Total
Interest-earning assets:
Loans - Core Bank (1)	$	89		$	73		$	162
Loans - CarBucks (1)		1,300			(607	)		693
Investment - taxable		(19	)		194			175
Investments - tax exempt (2)		(11	)		10			(1	)
Interest-earning deposits		43			152			195
Other investments, at cost		(14	)		(3	)		(17	)
Total interest-earning assets		1,388			(181	)		1,207

Interest-bearing liabilities:
Savings accounts		1			—			1
Time deposits		(58	)		(94	)		(152	)
Money market accounts		126			(5	)		121
Interest bearing transaction accounts		(5	)		(10	)		(15	)
FHLB advances		(17	)		(14	)		(31	)
Junior subordinated debentures		1			17			18
Other borrowings		1			—			1
Total interest-bearing liabilities		49			(106	)		(57	)
Change in tax-equivalent net interest income	$	1,339		$	(75	)	$	1,264

(1)	Nonaccrual loans are included in the above analysis.
(2)	Interest income on tax exempt loans and investments are adjusted for based on a 21% federal tax rate.

	As of and for the Three Months Ended June 30, 2022
	Core Bank		CarBucks			Other			Total
Interest income	$	8,789	$	5,205		$	604		$	14,598
Interest expense		7		756			450			1,213
Net interest income		8,782		4,449			154			13,385
Provision for loan losses		157		(38	)		—			119
Noninterest income		502		57			78			637
Noninterest expense		5,325		2,786			916			9,027
Net income before taxes		3,802		1,758			(684	)		4,876
Income tax expense		878		425			(120	)		1,183
Net income	$	2,924	$	1,333		$	(564	)	$	3,693

Total assets	$	1,010,324	$	106,307		$	137,401		$	1,254,032

	For the Six Months Ended June 30, 2022
	Compared to the Six Months Ended June 30, 2021
	Increase (decrease) due to:
(In thousands)	Volume			Rate			Total
Interest-earning assets:
Loans - Core Bank (1)	$	365		$	(453	)	$	(88	)
Loans - CarBucks (1)		2,347			(961	)		1,386
Investment - taxable		2			370			372
Investments - tax exempt (2)		(15	)		13			(2	)
Interest-earning deposits		72			144			216
Other investments, at cost		(30	)		(5	)		(35	)
Total interest-earning assets		2,741			(892	)		1,849

Interest-bearing liabilities:
Savings accounts		2		$	—			2
Time deposits		(162	)		(329	)		(491	)
Money market accounts		246			(75	)		171
Interest bearing transaction accounts		(12	)		(22	)		(34	)
FHLB advances		(34	)		(27	)		(61	)
Junior subordinated debentures		3			16			19
Other borrowings		1			—			1
Total interest-bearing liabilities		44			(437	)		(393	)
Change in tax-equivalent net interest income	$	2,697		$	(455	)	$	2,242

	As of and for the Six Months Ended June 30, 2022
	Core Bank			CarBucks			Other			Total
Interest income	$	17,118		$	10,511		$	1,140		$	28,769
Interest expense		210			1,245			883			2,338
Net interest income		16,908			9,266			257			26,431
Provision for loan losses		(167	)		594			—			427
Noninterest income		985			121			157			1,263
Noninterest expense		10,615			5,465			932			17,012
Net income before taxes		7,445			3,328			(518	)		10,255
Income tax expense		1,782			796			(124	)		2,454
Net income	$	5,663		$	2,532		$	(394	)	$	7,801

Total assets	$	1,010,324		$	106,307		$	137,401		$	1,254,032

	As of and for the Six Months Ended June 30, 2021
	Core Bank			CarBucks			Other			Total
Interest income	$	17,026		$	9,125		$	769		$	26,920
Interest expense		1,162			705			865			2,732
Net interest income		15,864			8,420			(96	)		24,188
Provision for loan losses		591			(40	)		—			551
Noninterest income		1,024			75			244			1,343
Noninterest expense		10,158			4,875			37			15,070
Net income before taxes		6,139			3,660			111			9,910
Income tax expense		1,457			869			27			2,353
Net income	$	4,682		$	2,791		$	84		$	7,557

Total assets	$	930,199		$	86,833		$	146,439		$	1,163,471

	Total		Used		Unused
	Capacity		Capacity		Capacity
FHLB
Loan collateral capacity	$	370,879
Pledgeable marketable securities		121,627
FHLB totals		492,506	$	5,000	$	487,506
Fed funds lines		49,000		—		49,000
	$	541,506	$	5,000	$	536,506

	Actual					For Capital Adequacy Purposes (1)				To Be Well-Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
As of June 30, 2022:
Tier 1 Leverage Capital	$	131,873		10.53	%	$	50,072		>4.0%	$	62,589		>5.0%
Common Equity Tier 1 Capital	$	131,873		12.75	%	$	72,406		>7.0%	$	67,234		>6.5%
Tier 1 Risk-based Capital	$	131,873		12.75	%	$	87,921		>8.5%	$	82,749		>8.0%
Total Risk-based Capital	$	144,817		14.00	%	$	108,609		>10.5%	$	103,437		>10.0%

As of December 31, 2021:
Tier 1 Leverage Capital	$	123,344		10.21	%	$	48,317		>4.0%	$	60,396		>5.0%
Common Equity Tier 1 Capital	$	123,344		12.24	%	$	70,517		>7.0%	$	65,480		>6.5%
Tier 1 Risk-based Capital	$	123,344		12.24	%	$	85,628		>8.5%	$	80,591		>8.0%
Total Risk-based Capital	$	135,951		13.50	%	$	105,776		>10.5%	$	100,739		>10.0%

	Actual					For Capital Adequacy Purposes (2)
	Amount		Ratio			Amount		Ratio
As of June 30, 2022:
Tier I Leverage Capital	$	110,960		8.86	%	$	50,085		>4.0%
Common Equity Tier 1 Capital	$	102,713		9.92	%	$	72,470		>7.0%
Tier I Risk-based Capital	$	110,960		10.72	%	$	88,000		>8.5%
Total Risk Based Capital	$	151,592		14.64	%	$	108,706		>10.5%

As of December 31, 2021:
Tier I Leverage Capital	$	103,730		8.59	%	$	48,327		>4.0%
Common Equity Tier 1 Capital	$	95,482		9.47	%	$	70,574		>7.0%
Tier I Risk-based Capital	$	103,730		10.29	%	$	85,696		>8.5%
Total Risk Based Capital	$	143,963		14.28	%	$	105,860		>10.5%

Exhibit No.	Description
2.1	Agreement and Plan of Merger and Reorganization, dated June 21, 2022, by and between GrandSouth Bancorporation and First Bancorp (incorporated by reference to Exhibit 2.1 to GrandSouth Bancorporation’s Current Report on Form 8-K filed with the SEC on June 21, 2022).
31.1	Certification of Chief Executive Officer of GrandSouth Bancorporation pursuant to Exchange Act Rule 13a-14(a).
31.2	Certification of Chief Financial Officer of GrandSouth Bancorporation pursuant to Exchange Act Rule 13a-14(a).
32.1	Certifications of the Chief Executive Officer and the Chief Financial Officer of GrandSouth Bancorporation pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Financial Statements filed in Inline XBRL format.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

Date: August 15, 2022	GrandSouth Bancorporation
	By:	/s/ John B. Garrett
	Name: John B. Garrett
	Title: Chief Financial Officer
	(Authorized Officer)