SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 11/09/23 Bank7 Corp. 10-Q 9/30/23 78:17M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 4.19M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 29K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 29K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 24K 10: R1 Document and Entity Information HTML 77K 11: R2 Unaudited Condensed Consolidated Balance Sheets HTML 102K 12: R3 Unaudited Condensed Consolidated Balance Sheets HTML 39K (Parenthetical) 13: R4 Unaudited Condensed Consolidated Statements of HTML 143K Comprehensive Income 14: R5 Unaudited Condensed Consolidated Statements of HTML 29K Comprehensive Income (Parenthetical) 15: R6 Unaudited Condensed Consolidated Statements of HTML 117K Shareholders' Equity 16: R7 Unaudited Condensed Consolidated Statements of HTML 28K Shareholders' Equity (Parenthetical) 17: R8 Unaudited Condensed Consolidated Statements of HTML 126K Cash Flows 18: R9 Nature of Operations and Summary of Significant HTML 97K Accounting Policies 19: R10 Recent Events, Including Mergers and Acquisitions HTML 55K 20: R11 Restriction on Cash and Due from Banks HTML 27K 21: R12 Earnings per Share HTML 62K 22: R13 Debt Securities HTML 206K 23: R14 Loans and Allowance for Credit Losses HTML 942K 24: R15 Shareholders' Equity HTML 172K 25: R16 Related-Party Transactions HTML 31K 26: R17 Employee Benefits HTML 78K 27: R18 Disclosures About Fair Value of Assets and HTML 147K Liabilities 28: R19 Financial Instruments with Off-Balance Sheet Risk HTML 34K 29: R20 Significant Estimates and Concentrations HTML 28K 30: R21 Subsequent Events HTML 28K 31: R22 Nature of Operations and Summary of Significant HTML 106K Accounting Policies (Policies) 32: R23 Nature of Operations and Summary of Significant HTML 56K Accounting Policies (Tables) 33: R24 Recent Events, Including Mergers and Acquisitions HTML 49K (Tables) 34: R25 Earnings per Share (Tables) HTML 59K 35: R26 Debt Securities (Tables) HTML 214K 36: R27 Loans and Allowance for Credit Losses (Tables) HTML 936K 37: R28 Shareholders' Equity (Tables) HTML 165K 38: R29 Employee Benefits (Tables) HTML 72K 39: R30 Disclosures About Fair Value of Assets and HTML 134K Liabilities (Tables) 40: R31 Financial Instruments with Off-Balance Sheet Risk HTML 32K (Tables) 41: R32 Nature of Operations and Summary of Significant HTML 94K Accounting Policies, Impact of ASC 326 on Allowance for Credit Losses (Details) 42: R33 Nature of Operations and Summary of Significant HTML 36K Accounting Policies, Loans and Allowance for Credit Losses (Details) 43: R34 Recent Events, Including Mergers and Acquisitions HTML 77K (Details) 44: R35 Restriction on Cash and Due from Banks (Details) HTML 25K 45: R36 Earnings per Share (Details) HTML 73K 46: R37 Debt Securities, Amortized Cost and Fair Value of HTML 61K Debt Securities (Details) 47: R38 Debt Securities, Contractual Maturity (Details) HTML 73K 48: R39 Debt Securities, Realized Gains and Losses from HTML 33K Sale, Repayment and Call of Debt Securities (Details) 49: R40 Debt Securities, Pledged Securities (Details) HTML 27K 50: R41 Debt Securities, Continuous Unrealized Loss HTML 77K Position (Details) 51: R42 Loans and Allowance for Credit Losses, Summary of HTML 65K Loans (Details) 52: R43 Loans and Allowance for Credit Losses, Allowance HTML 53K for Credit Losses Methodology (Details) 53: R44 Loans and Allowance for Credit Losses, Activity in HTML 125K Allowance for Credit Losses (Details) 54: R45 Loans and Allowance for Credit Losses, Amortized HTML 267K Cost of Loan Portfolio by Year of Origination Based on Internal Rating Category (Details) 55: R46 Loans and Allowance for Credit Losses, Loan HTML 82K Portfolio Based on Internal Rating Category (Details) 56: R47 Loans and Allowance for Credit Losses, Loan HTML 95K Portfolio Aging Analysis of Recorded Investment in Loans (Details) 57: R48 Loans and Allowance for Credit Losses, Nonaccrual HTML 61K Loans (Details) 58: R49 Loans and Allowance for Credit Losses, Impaired HTML 76K Loans and TDR's (Details) 59: R50 Loans and Allowance for Credit Losses, HTML 86K Collateral-Dependent Gross Loans Held for Investment (Details) 60: R51 Loans and Allowance for Credit Losses, HTML 90K Modifications to Borrowers Experiencing Financial Difficulty (Details) 61: R52 Loans and Allowance for Credit Losses, Information HTML 58K Regarding Nonperforming Assets (Details) 62: R53 Shareholders' Equity, Repurchase Plan (Details) HTML 33K 63: R54 Shareholders' Equity, Actual Capital Amounts and HTML 102K Ratios (Details) 64: R55 Shareholders' Equity, Payout Restrictions Based on HTML 25K Capital Conservation Buffer (Details) 65: R56 Related-Party Transactions (Details) HTML 31K 66: R57 Employee Benefits (Details) HTML 144K 67: R58 Disclosures About Fair Value of Assets and HTML 33K Liabilities, Recurring and Nonrecurring Basis (Details) 68: R59 Disclosures About Fair Value of Assets and HTML 34K Liabilities, Quantitative Information (Details) 69: R60 Disclosures About Fair Value of Assets and HTML 63K Liabilities, Estimated Fair Value of Financial Instruments Not Recorded at Fair Value (Details) 70: R61 Financial Instruments with Off-Balance Sheet Risk, HTML 30K Financial Instruments with Contract Amounts Representing Credit Risk (Details) 71: R62 Financial Instruments with Off-Balance Sheet Risk HTML 34K , Adopted ASU 2016-13 (Details) 72: R63 Significant Estimates and Concentrations (Details) HTML 46K 73: R64 Subsequent Events (Details) HTML 28K 76: XML IDEA XML File -- Filing Summary XML 144K 74: XML XBRL Instance -- ef20012321_10q_htm XML 5.38M 75: EXCEL IDEA Workbook of Financial Report Info XLSX 194K 6: EX-101.CAL XBRL Calculations -- bsvn-20230930_cal XML 243K 7: EX-101.DEF XBRL Definitions -- bsvn-20230930_def XML 968K 8: EX-101.LAB XBRL Labels -- bsvn-20230930_lab XML 2.03M 9: EX-101.PRE XBRL Presentations -- bsvn-20230930_pre XML 1.34M 5: EX-101.SCH XBRL Schema -- bsvn-20230930 XSD 174K 77: JSON XBRL Instance as JSON Data -- MetaLinks 509± 780K 78: ZIP XBRL Zipped Folder -- 0001140361-23-052295-xbrl Zip 501K
i ☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i ☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i Oklahoma
|
i 20-0763496
|
|
( State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
i 1039 N.W. 63rd Street, i Oklahoma City, i Oklahoma
|
i 73116-7361
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
i Common Stock, $0.01 Par Value Per Share | i BSVN |
i NASDAQ Global Select Market System
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
i Non-accelerated filer
|
☒
|
Smaller reporting company
|
i ☒
|
Emerging growth company
|
i ☒
|
Page
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements
|
|
3 |
||
4 |
||
5 |
||
6 |
||
7 |
||
Item 2.
|
40 |
|
Item 3.
|
58 |
|
Item 4.
|
60 |
|
PART II.
|
60 |
|
Item 1.
|
60 |
|
Item 1A.
|
60 |
|
Item 2.
|
61 |
|
Item 3.
|
61 |
|
Item 4.
|
61 |
|
Item 5.
|
61 |
|
Item 6.
|
62 |
|
Signatures |
62 |
Assets
|
(unaudited)
|
|||||||
Cash and due from banks
|
$
|
i 169,490
|
$
|
i 109,115
|
||||
Interest-bearing time deposits in other banks
|
i 17,182
|
i 5,474
|
||||||
Available-for-sale debt securities
|
i 167,138 | i 173,165 | ||||||
Loans, net of allowance for credit losses of $ i 20,649 and $ i 14,734 at September 30,
2023 and December 31, 2022,
respectively
|
i 1,372,128
|
i 1,255,722
|
||||||
Loans held for sale
|
i 1,143 | i - | ||||||
Premises and equipment, net
|
i 14,963 | i 13,106 | ||||||
Nonmarketable equity securities
|
i 1,251
|
i 1,209
|
||||||
Core deposit intangibles
|
i 1,107 | i 1,336 | ||||||
Goodwill
|
i 8,458
|
i 8,603
|
||||||
Interest receivable and other assets
|
i 19,539
|
i 16,439
|
||||||
Total assets
|
$
|
i 1,772,399
|
$
|
i 1,584,169
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$
|
i 480,827
|
$
|
i 441,509
|
||||
Interest-bearing
|
i 1,112,745
|
i 989,891
|
||||||
Total deposits
|
i 1,593,572
|
i 1,431,400
|
||||||
Income taxes payable
|
i 419
|
i 1,054
|
||||||
Interest payable and other liabilities
|
i 10,501
|
i 7,615
|
||||||
Total liabilities
|
i 1,604,492
|
i 1,440,069
|
||||||
Shareholders’ equity
|
||||||||
Common stock, $ i i 0.01 /
par value; i i 50,000,000 / shares authorized; shares issued and outstanding: i i 9,184,975 /
and i i 9,131,973 / at September 30, 2023 and
December 31, 2022 respectively
|
i 92
|
i 91
|
||||||
Additional paid-in capital
|
i 97,068
|
i 95,263
|
||||||
Retained earnings
|
i 79,825
|
i 58,049
|
||||||
Accumulated other comprehensive loss
|
( i 9,078 | ) | ( i 9,303 | ) | ||||
|
||||||||
Total shareholders’ equity
|
i 167,907
|
i 144,100
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
i 1,772,399
|
$
|
i 1,584,169
|
|
Three months ended
September 30,
|
Nine
months ended
|
||||||||||||||
|
2022
|
2023
|
2022
|
|||||||||||||
Interest Income
|
||||||||||||||||
Loans, including fees
|
$
|
i 28,880
|
$
|
i 20,466
|
$
|
i 81,117
|
$
|
i 50,597
|
||||||||
Interest-bearing time deposits in other banks
|
i 159
|
i 10
|
i 270
|
i 39
|
||||||||||||
Debt securities, taxable
|
i 699 | i 690 | i 2,106 | i 1,625 | ||||||||||||
Debt securities, tax-exempt
|
i 81 | i 90 | i 253 | i 273 | ||||||||||||
Other interest and dividend income
|
i 1,903
|
i 435
|
i 5,398
|
i 754
|
||||||||||||
Total interest income
|
i 31,722
|
i 21,691
|
i 89,144
|
i 53,288
|
||||||||||||
Interest Expense
|
||||||||||||||||
Deposits
|
i 10,976
|
i 2,646
|
i 27,894
|
i 4,241
|
||||||||||||
Total interest expense
|
i 10,976
|
i 2,646
|
i 27,894
|
i 4,241
|
||||||||||||
Net Interest Income
|
i 20,746
|
i 19,045
|
i 61,250
|
i 49,047
|
||||||||||||
Provision for Credit Losses
|
i 4,159
|
i 2,348
|
i 5,645
|
i 2,843
|
||||||||||||
Net Interest Income After Provision for Credit Losses
|
i 16,587
|
i 16,697
|
i 55,605
|
i 46,204
|
||||||||||||
Noninterest Income
|
||||||||||||||||
Mortgage lending income
|
i 6
|
i 134
|
i 172
|
i 395
|
||||||||||||
Loss on sales, prepayments, and calls of available-for-sale debt securities
|
( i 7 | ) | ( i 10 | ) | ( i 15 | ) | ( i 127 | ) | ||||||||
Service charges on deposit accounts
|
i 213
|
i 210
|
i 647
|
i 678
|
||||||||||||
Other
|
i 795
|
i 506
|
i 1,668
|
i 1,261
|
||||||||||||
Total noninterest income
|
i 1,007
|
i 840
|
i 2,472
|
i 2,207
|
||||||||||||
Noninterest Expense
|
||||||||||||||||
Salaries and employee benefits
|
i 4,910
|
i 3,996
|
i 14,299
|
i 12,148
|
||||||||||||
Furniture and equipment
|
i 254
|
i 390
|
i 755
|
i 1,134
|
||||||||||||
Occupancy
|
i 662
|
i 614
|
i 1,980
|
i 1,736
|
||||||||||||
Data and item processing
|
i 424
|
i 522
|
i 1,280
|
i 1,468
|
||||||||||||
Accounting, marketing and legal fees
|
i 14
|
i 340
|
i 491
|
i 782
|
||||||||||||
Regulatory assessments
|
i 279
|
i 551
|
i 1,013
|
i 973
|
||||||||||||
Advertising and public relations
|
i 74
|
i 83
|
i 273
|
i 314
|
||||||||||||
Travel, lodging and entertainment
|
i 85
|
i 94
|
i 255
|
i 216
|
||||||||||||
Other
|
i 688
|
i 543
|
i 2,068
|
i 1,745
|
||||||||||||
Total noninterest expense
|
i 7,390
|
i 7,133
|
i 22,414
|
i 20,516
|
||||||||||||
Income Before Taxes
|
i 10,204
|
i 10,404
|
i 35,663
|
i 27,895
|
||||||||||||
Income tax expense
|
i 2,351
|
i 2,363
|
i 8,457
|
i 6,646
|
||||||||||||
Net Income
|
$
|
i 7,853
|
$
|
i 8,041
|
$
|
i 27,206
|
$
|
i 21,249
|
||||||||
Earnings per common share - basic
|
$
|
i 0.86
|
$
|
i 0.88
|
$
|
i 2.97
|
$
|
i 2.34
|
||||||||
Earnings per common share - diluted
|
i 0.85
|
i 0.87
|
i 2.94
|
i 2.31
|
||||||||||||
Weighted average common shares outstanding - basic
|
i 9,158,027
|
i 9,100,789
|
i 9,152,788
|
i 9,095,724
|
||||||||||||
Weighted average common shares outstanding - diluted
|
i 9,273,595
|
i 9,209,754
|
i 9,262,003
|
i 9,194,928
|
||||||||||||
Other Comprehensive Income (Loss)
|
||||||||||||||||
Unrealized gains (losses) on securities, net of (tax expense) tax benefit of $ i 485 and $ i 1.7
million for the
three months ended September 30, 2023 and 2022, respectively; ($ i 70) and $ i 3.2
million for the
nine months ended September 30, 2023 and 2022, respectively
|
$ | ( i 372 | ) | $ | ( i 2,674 | ) | $ | i 214 | $ | ( i 10,691 | ) | |||||
Reclassification adjustment for realized loss included in net income net of tax of $ i 2 and $ i 2
for the three months
ended September 30, 2023
and 2022, respectively; $ i 4
and $ i 29 for the nine months ended September 30, 2023 and 2022, respectively
|
i 5 | i 8 | i 11 | i 98 | ||||||||||||
Other comprehensive income (loss)
|
$ | ( i 367 | ) | $ | ( i 2,666 | ) | $ | i 225 | $ | ( i 10,593 | ) | |||||
Comprehensive Income
|
$ | i 7,486 | $ | i 5,375 | $ | i 27,431 | $ | i 10,656 |
|
Three Months Ended
September 30,
|
Nine Months Ended
|
||||||||||||||
|
2022
|
2023
|
2022
|
|||||||||||||
Common Stock (Shares)
|
||||||||||||||||
Balance at beginning of period
|
i 9,154,934
|
i 9,098,655
|
i 9,131,973
|
i 9,071,417
|
||||||||||||
Exercise of employee stock options
|
i 13,124 | i 1,250 | i 26,986 | i 16,062 | ||||||||||||
Shares issued for restricted stock units
|
i 26,625
|
i 26,000
|
i 40,734
|
i 41,584
|
||||||||||||
Shares acquired and canceled
|
( i 9,708 | ) | ( i 10,166 | ) | ( i 14,718 | ) | ( i 13,324 | ) | ||||||||
Balance at end of period
|
i 9,184,975
|
i 9,115,739
|
i 9,184,975
|
i 9,115,739
|
||||||||||||
Common Stock (Amount)
|
||||||||||||||||
Balance at beginning of period
|
$
|
i 92
|
$
|
i 91
|
$
|
i 91
|
$
|
i 91
|
||||||||
Shares issued for restricted stock units
|
i - |
i - |
i 1 |
i -
|
||||||||||||
Balance at end of period
|
$
|
i 92
|
$
|
i 91
|
$
|
i 92
|
$
|
i 91
|
||||||||
Additional Paid-in Capital
|
||||||||||||||||
Balance at beginning of period
|
$
|
i 96,498
|
$
|
i 95,016
|
$
|
i 95,263
|
$
|
i 94,024
|
||||||||
Shares purchased and retired for restricted stock units
|
( i 231 | ) | ( i 235 | ) | ( i 367 | ) | ( i 312 | ) | ||||||||
Exercise of stock options
|
i 236 | i 21 | i 480 | i 283 | ||||||||||||
Stock-based compensation expense
|
i 565
|
i 252
|
i 1,692
|
i 1,059
|
||||||||||||
Balance at end of period
|
$
|
i 97,068
|
$
|
i 95,054
|
$
|
i 97,068
|
$
|
i 95,054
|
||||||||
Retained Earnings
|
||||||||||||||||
Balance at beginning of period
|
$
|
i 73,901
|
$
|
i 44,174
|
$
|
i 58,049
|
$
|
i 33,149
|
||||||||
Net income
|
i 7,853
|
i 8,041
|
i 27,206
|
i 21,249
|
||||||||||||
Cumulative effect of change in accounting principle, net of tax of $ i 178 (Note 1)
|
- | - | ( i 572 | ) | - | |||||||||||
Cash dividends declared ($ i 0.21 and $ i 0.12 per share for the three months ended September 30,
2023 and 2022, respectively; $ i 0.53
and $ i 0.36 per share for the nine
months ended September 30, 2023
and 2022, respectively)
|
( i 1,929
|
)
|
( i 1,092
|
)
|
( i 4,858
|
)
|
( i 3,275
|
)
|
||||||||
Balance at end of period
|
$
|
i 79,825
|
$
|
i 51,123
|
$
|
i 79,825
|
$
|
i 51,123
|
||||||||
Accumulated Other Comprehensive Loss |
||||||||||||||||
Balance at beginning of period
|
$ | ( i 8,711 | ) | $ | ( i 7,783 | ) | $ | ( i 9,303 | ) | $ | i 144 | |||||
Comprehensive income (loss)
|
( i 367 | ) | ( i 2,666 | ) | i 225 | ( i 10,593 | ) | |||||||||
Balance at end of period
|
$ | ( i 9,078 | ) | $ | ( i 10,449 | ) | $ | ( i 9,078 | ) | $ | ( i 10,449 | ) | ||||
Total Shareholders’ equity
|
$
|
i 167,907
|
$
|
i 135,819
|
$
|
i 167,907
|
$
|
i 135,819
|
Nine Months Ended
|
||||||||
2022
|
||||||||
Operating Activities
|
||||||||
Net income
|
$
|
i 27,206
|
$
|
i 21,249
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization
|
i 973
|
i 1,063
|
||||||
Provision for credit losses
|
i 5,645
|
i 2,843
|
||||||
Amortization of premiums and discounts on securities
|
i 278 | i 657 | ||||||
Gain on sales of loans
|
( i 172
|
)
|
( i 395
|
)
|
||||
Net loss on sale of available-for-sale debt securities
|
i 15 | i 127 | ||||||
Stock-based compensation expense
|
i 1,692
|
i 1,059
|
||||||
Gain on sale of premises and equipment
|
( i 77 | ) | ( i 24 | ) | ||||
Cash receipts from the sale of loans originated for sale
|
i 5,985
|
i 25,542
|
||||||
Cash disbursements for loans originated for sale
|
( i 6,956
|
)
|
( i 24,887
|
)
|
||||
Deferred income tax benefit
|
( i 1,633
|
)
|
( i 236
|
)
|
||||
Changes in
|
||||||||
Interest receivable and other assets
|
( i 1,392
|
)
|
i 810
|
|||||
Interest payable and other liabilities
|
i 1,403
|
i 2,127
|
||||||
Net cash provided by operating activities
|
i 32,967
|
i 29,935
|
||||||
Investing Activities
|
||||||||
Maturities of interest-bearing time deposits in other banks
|
i 5,228
|
i 2,490
|
||||||
Purchases of interest-bearing time deposits in other banks
|
( i 16,936 | ) | ( i 747 | ) | ||||
Proceeds from sale of available-for-sale debt securities
|
i - | i 11,820 | ||||||
Maturities, prepayments and calls of available-for-sale debt securities
|
i 6,029 | i 17,032 | ||||||
Purchases of available-for-sale debt securities
|
i - | ( i 133,052 | ) | |||||
Net change in loans
|
( i 122,242
|
)
|
( i 204,756
|
)
|
||||
Purchases of premises and equipment
|
( i 2,602
|
)
|
( i 273
|
)
|
||||
Proceeds from sale of premises and equipment | i 78 | i 3,370 | ||||||
Change in nonmarketable equity securities
|
( i 42
|
)
|
i 9
|
|||||
Net cash used in investing activities
|
( i 130,487
|
)
|
( i 304,107
|
)
|
||||
Financing Activities
|
||||||||
Net change in deposits
|
i 162,172
|
i 219,865
|
||||||
Cash distributions
|
( i 4,391
|
)
|
( i 3,275
|
)
|
||||
Shares purchased and retired for restricted stock units
|
( i 367 | ) | ( i 312 | ) | ||||
Net settlement of stock options
|
i 480 | i 283 | ||||||
Common stock issued for restricted stock units
|
i 1 | i - | ||||||
Net cash provided by financing activities
|
i 157,895
|
i 216,561
|
||||||
Net Increase/(Decrease) in Cash and Due from Banks
|
i 60,375
|
( i 57,611
|
)
|
|||||
Cash and Due from Banks, Beginning of Period
|
i 109,115
|
i 204,852
|
||||||
Cash and Due from Banks, End of Period
|
$
|
i 169,490
|
$
|
i 147,241
|
||||
Supplemental Disclosure of Cash Flows Information
|
||||||||
Interest paid
|
$
|
i 26,899
|
$
|
i 4,220
|
||||
Income taxes paid
|
$ | i 10,612 | $ | i 6,843 | ||||
Dividends declared and not paid
|
$
|
i 1,929
|
$
|
i 1,092
|
||||
Measurement period goodwill adjustment
|
$ | ( i 146 | ) | $ | ( i 411 | ) |
Note 1:
|
Nature
of Operations and Summary of Significant Accounting Policies
|
As Reported
Under ASC 326
|
Pre ASC 326
Adoption
|
Impact of ASC
326 Adoption
|
||||||||||
Construction & development
|
$
|
i 1,933
|
$
|
i 1,889
|
$
|
i 44
|
||||||
1 - 4 family real estate
|
i 752
|
i 890
|
( i 138
|
)
|
||||||||
Commercial real estate - other
|
i 4,912
|
i 5,080
|
( i 168
|
)
|
||||||||
Total commercial real estate
|
$
|
i 7,597
|
$
|
i 7,859
|
$
|
( i 262
|
)
|
|||||
Commercial & industrial
|
i 6,653
|
i 5,937
|
i 716
|
|||||||||
Agricultural
|
i 616
|
i 765
|
( i 149
|
)
|
||||||||
Consumer
|
i 118
|
i 173
|
( i 55
|
)
|
||||||||
Allowance for credit losses on loans
|
$
|
i 14,984
|
$
|
i 14,734
|
$
|
i 250
|
||||||
Allowance for credit losses on off-balance sheet credit exposures (unfunded commitments), see Note (6) and Note (11)
|
i 500
|
i -
|
i 500
|
|||||||||
Total Impact
|
$
|
i 15,484
|
$
|
i 14,734
|
$
|
i 750
|
●
|
Segment loans into pools according to similar risk characteristics;
|
●
|
Develop historical loss rates for each loan pool segment;
|
●
|
Incorporate the impact of forecasts;
|
●
|
Incorporate the impact of other qualitative factors; and
|
●
|
Calculate and review pool specific allowance for credit loss estimate.
|
Note
2:
|
Recent Events, Including Mergers and
Acquisitions
|
Estimated Fair Value
|
||||
(in thousands)
|
||||
Assets Acquired
|
||||
Cash and cash equivalents
|
$
|
i 41,747
|
||
Available-for-sale debt securities
|
i 86,166
|
|||
Federal funds sold
|
i 7,941
|
|||
Loans
|
i 117,335
|
|||
Premises and equipment
|
i 8,669
|
|||
Core deposit intangible
|
i 1,254
|
|||
Prepaid expenses and other assets
|
i 4,512
|
|||
Total assets acquiried
|
$ |
i 267,624
|
||
Liabilities Assumed
|
||||
Deposits
|
$
|
i 243,487
|
||
Accounts payable and accrued expenses
|
i 2,086
|
|||
Total liabilities assumed
|
$ |
i 245,573
|
||
Net assets acquired
|
$
|
i 22,051
|
||
Consideration transferred
|
i 29,498
|
|||
Goodwill
|
$ |
i 7,447
|
Note 3: |
Restriction on Cash and Due from Banks
|
Note 4: |
Earnings per Share
|
As of and for the three months
ended September 30,
|
As of and for the nine months
ended September 30,
|
|||||||||||||||
2022
|
2023 |
2022 |
||||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Numerator
|
||||||||||||||||
Net income
|
$ | i 7,853 | $ | i 8,041 | $ | i 27,206 | $ | i 21,249 | ||||||||
Denominator
|
||||||||||||||||
Weighted-average shares outstanding for basic earnings per share
|
i 9,158,027 |
i 9,100,789 |
i 9,152,788 | i 9,095,724 | ||||||||||||
Dilutive effect of stock compensation (1)
|
i 115,568 |
i 108,965 |
i 109,215 | i 99,204 | ||||||||||||
Denominator for diluted earnings per share
|
i 9,273,595 |
i 9,209,754 |
i 9,262,003 | i 9,194,928 | ||||||||||||
Earnings per common share
|
||||||||||||||||
Basic
|
$ | i 0.86 | $ | i 0.88 | $ | i 2.97 | $ | i 2.34 | ||||||||
Diluted
|
$ | i 0.85 | $ | i 0.87 | $ | i 2.94 | $ | i 2.31 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Fair Value
|
||||||||||||
Available-for-sale as of September 30, 2023
|
||||||||||||||||
U.S. Federal agencies
|
$
|
i 146
|
$
|
i -
|
$
|
( i 6
|
)
|
$
|
i 140
|
|||||||
Mortgage-backed securities(1)(2)
|
i 39,611
|
i -
|
( i 5,531
|
)
|
i 34,080
|
|||||||||||
State and political subdivisions
|
i 27,707
|
i -
|
( i 2,483
|
)
|
i 25,224
|
|||||||||||
U.S. Treasuries
|
i 106,032
|
i -
|
( i 2,594
|
)
|
i 103,438
|
|||||||||||
Corporate debt securities
|
i 5,500
|
i -
|
( i 1,244
|
)
|
i 4,256
|
|||||||||||
Total available-for-sale
|
i 178,996
|
i -
|
( i 11,858
|
)
|
i 167,138
|
|||||||||||
Total debt securities
|
i 178,996
|
i -
|
( i 11,858
|
)
|
i 167,138
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Fair Value
|
||||||||||||
Available-for-sale as of December 31, 2022
|
||||||||||||||||
U.S. Federal agencies
|
$
|
i 1,292
|
$
|
i -
|
$
|
( i 150
|
)
|
$
|
i 1,142
|
|||||||
Mortgage-backed securities(1)(2)
|
i 42,953
|
i -
|
( i 4,879
|
)
|
i 38,074
|
|||||||||||
State and political subdivisions
|
i 30,632
|
i -
|
( i 2,276
|
)
|
i 28,356
|
|||||||||||
U.S. Treasuries
|
i 104,940
|
i -
|
( i 4,280
|
)
|
i 100,660
|
|||||||||||
Corporate debt securities
|
i 5,500
|
i -
|
( i 567
|
)
|
i 4,933
|
|||||||||||
Total available-for-sale
|
i 185,317
|
i -
|
( i 12,152
|
)
|
i 173,165
|
|||||||||||
Total debt securities
|
i 185,317
|
i -
|
( i 12,152
|
)
|
i 173,165
|
(in thousands)
|
Amortized Cost
|
Fair Value
|
||||||
Available-for-sale as of September 30, 2023
|
||||||||
Due in one year or less
|
$
|
i 104,150
|
$
|
i 102,416
|
||||
Due after one year through five years
|
i 16,153
|
i 14,875
|
||||||
Due after five years through ten years
|
i 18,920
|
i 15,638
|
||||||
Due after ten years
|
i 162
|
i 129
|
||||||
Mortgage-backed securities
|
i 39,611
|
i 34,080
|
||||||
Total available-for-sale
|
i 178,996
|
i 167,138
|
(in thousands)
|
Amortized Cost
|
Fair Value
|
||||||
Available-for-sale as of December 31, 2022
|
||||||||
Due in one year or less
|
$
|
i 2,133
|
$
|
i 2,115
|
||||
Due after one year through five years
|
i 118,108
|
i 113,415
|
||||||
Due after five years through ten years
|
i 21,495
|
i 19,030
|
||||||
Due after ten years
|
i 628
|
i 531
|
||||||
Mortgage-backed securities
|
i 42,953
|
i 38,074
|
||||||
Total available-for-sale
|
i 185,317
|
i 173,165
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2022
|
2023
|
2022
|
||||||||||||||
(in thousands)
|
||||||||||||||||
Proceeds from sales, maturities, prepayments and calls
|
$
|
i 1,831
|
$
|
i 9,024
|
$
|
i 6,029
|
$
|
i 28,852
|
||||||||
Gross realized gains on sales, prepayments and calls
|
i -
|
i -
|
i -
|
i 10
|
||||||||||||
Gross realized losses on sales, prepayments and calls
|
( i 7
|
)
|
( i 10
|
)
|
( i 15
|
)
|
( i 137
|
)
|
||||||||
Total realized (losses), net
|
$
|
( i 7
|
)
|
$
|
( i 10
|
)
|
$
|
( i 15
|
)
|
$
|
( i 127
|
)
|
(in thousands) |
||||||||
Book value of pledged securities
|
$
|
i 21,322
|
$
|
i 85,280
|
Less than Twelve Months
|
Twelve Months or Longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Available-for-sale as of September 30, 2023
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
i -
|
$
|
i -
|
$
|
i 140
|
$
|
( i 6
|
)
|
$
|
i 140
|
$
|
( i 6
|
)
|
||||||||||
Mortgage-backed securities
|
i -
|
i -
|
i 34,080
|
( i 5,531
|
)
|
i 34,080
|
( i 5,531
|
)
|
||||||||||||||||
State and political subdivisions(1)
|
i 753
|
( i 7
|
)
|
i 24,471
|
( i 2,476
|
)
|
i 25,224
|
( i 2,483
|
)
|
|||||||||||||||
U.S. Treasuries
|
i -
|
i -
|
i 103,438
|
( i 2,594
|
)
|
i 103,438
|
( i 2,594
|
)
|
||||||||||||||||
Corporate debt securities
|
i 805
|
( i 195
|
)
|
i 3,451
|
( i 1,049
|
)
|
i 4,256
|
( i 1,244
|
)
|
|||||||||||||||
Total available-for-sale
|
$
|
i 1,558
|
$
|
( i 202
|
)
|
$
|
i 165,580
|
$
|
( i 11,656
|
)
|
$
|
i 167,138
|
$
|
( i 11,858
|
)
|
Less than Twelve Months
|
Twelve Months or Longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Available-for-sale as of December 31, 2022
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
i 1,142
|
$
|
( i 150
|
)
|
$
|
i -
|
$
|
i -
|
$
|
i 1,142
|
$
|
( i 150
|
)
|
||||||||||
Mortgage-backed securities
|
i 38,074
|
( i 4,879
|
)
|
i -
|
i -
|
i 38,074
|
( i 4,879
|
)
|
||||||||||||||||
State and political subdivisions
|
i 28,356
|
( i 2,276
|
)
|
i -
|
i -
|
i 28,356
|
( i 2,276
|
)
|
||||||||||||||||
U.S. Treasuries
|
i 100,660
|
( i 4,280
|
)
|
i -
|
i -
|
i 100,660
|
( i 4,280
|
)
|
||||||||||||||||
Corporate debt securities
|
i 4,933
|
( i 567
|
)
|
i -
|
i -
|
i 4,933
|
( i 567
|
)
|
||||||||||||||||
Total available-for-sale
|
$
|
i 173,165
|
$
|
( i 12,152
|
)
|
$
|
i -
|
$
|
i -
|
$
|
i 173,165
|
$
|
( i 12,152
|
)
|
Note 6: |
Loans and Allowance for Credit Losses
|
Construction & development
|
$
|
i 139,053
|
$
|
i 163,203
|
||||
1 - 4 family real estate
|
i 91,540
|
i 76,928
|
||||||
Commercial real estate - other
|
i 516,975
|
i 439,001
|
||||||
Total commercial real estate
|
$ |
i 747,568
|
$ |
i 679,132
|
||||
Commercial & industrial
|
i 568,684
|
i 513,011
|
||||||
Agricultural
|
i 64,688
|
i 66,145
|
||||||
Consumer
|
i 14,993
|
i 14,949
|
||||||
Gross loans
|
i 1,395,933
|
i 1,273,237
|
||||||
Less allowance for credit losses
|
( i 20,649
|
)
|
( i 14,734
|
)
|
||||
Less deferred loan fees
|
( i 3,156
|
)
|
( i 2,781
|
)
|
||||
Net loans
|
$
|
i 1,372,128
|
$
|
i 1,255,722
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
i 1,592
|
$
|
i 1,116
|
$
|
i 6,089
|
$
|
i 6,712
|
$
|
i 601
|
$
|
i 267
|
$
|
i 16,377
|
||||||||||||||
Charge-offs
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||||||||
Recoveries
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 1
|
i 1
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 1
|
i 1
|
|||||||||||||||||||||
Provision (credit) for credit losses
|
( i 111
|
)
|
i 30
|
i 640
|
i 3,718
|
i 8
|
( i 14
|
)
|
i 4,271
|
|||||||||||||||||||
Balance, end of period
|
$
|
i 1,481
|
$
|
i 1,146
|
$
|
i 6,729
|
$
|
i 10,430
|
$
|
i 609
|
$
|
i 254
|
$
|
i 20,649
|
||||||||||||||
Unfunded Commitments
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | i 227 | $ | i 4 | $ | i 14 | $ | i 305 | $ | i 24 | $ | i 2 | $ | i 576 | ||||||||||||||
Provision (credit) for credit losses
|
( i 69 | ) | i - | ( i 6 | ) | ( i 25 | ) | ( i 13 | ) | i 1 | ( i 112 | ) | ||||||||||||||||
Balance, end of period
|
$ | i 158 | $ | i 4 | $ | i 8 | $ | i 280 | $ | i 11 | $ | i 3 | $ | i 464 | ||||||||||||||
Total Allowance for Credit Losses
|
$ | i 1,639 | $ | i 1,150 | $ | i 6,737 | $ | i 10,710 | $ | i 620 | $ | i 257 | $ | i 21,113 |
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
September 30, 2022
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
i 1,792
|
$
|
i 649
|
$
|
i 3,216
|
$
|
i 4,449
|
$
|
i 558
|
$
|
i 155
|
$
|
i 10,819
|
||||||||||||||
Charge-offs
|
i -
|
i -
|
i -
|
i -
|
i -
|
( i 19
|
)
|
( i 19
|
)
|
|||||||||||||||||||
Recoveries
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 5
|
i 5
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
i -
|
i -
|
i -
|
i -
|
i -
|
( i 14
|
)
|
( i 14
|
)
|
|||||||||||||||||||
Provision (credit) for credit losses
|
i 466
|
i 150
|
i 746
|
i 829
|
i 137
|
i 20
|
i 2,348
|
|||||||||||||||||||||
Balance, end of period
|
$
|
i 2,258
|
$
|
i 799
|
$
|
i 3,962
|
$
|
i 5,278
|
$
|
i 695
|
$
|
i 161
|
$
|
i 13,153
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
|||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
i 1,889
|
$
|
i 890
|
$
|
i 5,080
|
$
|
i 5,937
|
$
|
i 765
|
$
|
i 173
|
$
|
i 14,734
|
||||||||||||||
Impact of CECL adoption
|
i 44 | ( i 138 | ) | ( i 168 | ) | i 716 | ( i 149 | ) | ( i 55 | ) | i 250 | |||||||||||||||||
Charge-offs
|
i -
|
i -
|
i -
|
i -
|
( i 7
|
)
|
( i 16
|
)
|
( i 23
|
)
|
||||||||||||||||||
Recoveries
|
i -
|
i -
|
i -
|
i -
|
i 2
|
i 5
|
i 7
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
i -
|
i -
|
i -
|
i -
|
( i 5
|
)
|
( i 11
|
)
|
( i 16
|
)
|
||||||||||||||||||
Provision (credit) for credit losses
|
( i 452
|
)
|
i 394
|
i 1,817
|
i 3,777
|
( i 2
|
)
|
i 147
|
i 5,681
|
|||||||||||||||||||
Balance, end of period
|
$
|
i 1,481
|
$
|
i 1,146
|
$
|
i 6,729
|
$
|
i 10,430
|
$
|
i 609
|
$
|
i 254
|
$
|
i 20,649
|
||||||||||||||
Unfunded Commitments
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | i - | $ | i - | $ | i - | $ | i - | $ | i - | $ | i - | $ | i - | ||||||||||||||
Impact of CECL adoption
|
i 171 | i 4 | i 24 | i 274 | i 25 | i 2 | i 500 | |||||||||||||||||||||
Provision (credit) for credit losses
|
( i 13 | ) | i - | ( i 16 | ) | i 6 | ( i 14 | ) | i 1 | ( i 36 | ) | |||||||||||||||||
Balance, end of period
|
$ | i 158 | $ | i 4 | $ | i 8 | $ | i 280 | $ | i 11 | $ | i 3 | $ | i 464 | ||||||||||||||
Total Allowance for Credit Losses | $ | i 1,639 | $ | i 1,150 | $ | i 6,737 | $ | i 10,710 | $ | i 620 | $ | i 257 | $ | i 21,113 |
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
|||||||||||||||||||||
Balance, beginning of period
|
$
|
i 1,695
|
$
|
i 630
|
$
|
i 3,399
|
$
|
i 3,621
|
$
|
i 730
|
$
|
i 241
|
$
|
i 10,316
|
||||||||||||||
Charge-offs
|
i -
|
i -
|
i -
|
i -
|
i -
|
( i 20
|
)
|
( i 20
|
)
|
|||||||||||||||||||
Recoveries
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 14
|
i 14
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
i -
|
i -
|
i -
|
i -
|
i -
|
( i 6
|
)
|
( i 6
|
)
|
|||||||||||||||||||
Provision (credit) for credit losses
|
i 563
|
i 169
|
i 563
|
i 1,657
|
( i 35
|
)
|
( i 74
|
)
|
i 2,843
|
|||||||||||||||||||
Balance, end of period
|
$
|
i 2,258
|
$
|
i 799
|
$
|
i 3,962
|
$
|
i 5,278
|
$
|
i 695
|
$
|
i 161
|
$
|
i 13,153
|
• |
Grade 1 (Pass) – These loans generally conform to Bank policies, and are characterized by policy conforming advance rates on collateral, and have well-defined repayment sources. In addition, these
credits are extended to borrowers and/or guarantors with a strong balance sheet and either substantial liquidity or a reliable income history.
|
• |
Grade
2 (Watch) – These
loans are still considered “Pass” credits; however, various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in loan documentation, or other risk issues determined by the Lending
Officer, Commercial Loan Committee (CLC), or Credit Quality Committee (CQC) warrant a heightened sense and frequency of monitoring.
|
• |
Grade
3 (Special Mention)
– These loans must have observable weaknesses or evidence of imprudent handling or structural issues. The weaknesses require close attention and the remediation of those weaknesses is necessary. No risk of probable loss exists.
Credits in this category are expected to quickly migrate to a “2” or a “4” as this is viewed as a transitory loan grade.
|
• |
Grade
4 (Substandard) –
These loans are not adequately protected by the sound worth and debt service capacity of the borrower, but may be well secured. They have defined weaknesses relative to cash flow, collateral, financial condition, or other factors that
might jeopardize repayment of all of the principal and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not remediated.
|
As of September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Revolving Loans Amortized Cost Basis
|
Total
|
||||||||||||||||||||||||
Construction & development
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
$
|
i 26,403
|
$
|
i 10,300
|
$
|
i 4,857
|
$
|
i 214
|
$
|
i 104
|
$
|
i 46
|
$
|
i 96,336
|
$
|
i 138,260
|
||||||||||||||||
2 (Watch)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
3 (Special Mention)
|
i 563
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 230
|
i 793
|
||||||||||||||||||||||||
4 (Substandard)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
Total construction & development
|
i 26,966
|
i 10,300
|
i 4,857
|
i 214
|
i 104
|
i 46
|
i 96,566
|
i 139,053
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
i - | i - | i - | i - | i - | i - | i - | i - | ||||||||||||||||||||||||
1 - 4 family real estate
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
i 31,511
|
i 27,605
|
i 14,110
|
i 4,540
|
i 1,847
|
i 1,141
|
i 10,786
|
i 91,540
|
||||||||||||||||||||||||
2 (Watch)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
3 (Special Mention)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
4 (Substandard)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
Total 1 - 4 family real estate
|
i 31,511
|
i 27,605
|
i 14,110
|
i 4,540
|
i 1,847
|
i 1,141
|
i 10,786
|
i 91,540
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
i - | i - | i - | i - | i - | i - | i - | i - | ||||||||||||||||||||||||
Commercial real estate - other
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
i 147,441
|
i 159,184
|
i 36,185
|
i 42,601
|
i 3,657
|
i 4,139
|
i 107,802
|
i 501,009
|
||||||||||||||||||||||||
2 (Watch)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
3 (Special Mention)
|
i 14,738
|
i -
|
i -
|
i -
|
i -
|
i 1,094
|
i -
|
i 15,832
|
||||||||||||||||||||||||
4 (Substandard)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 134
|
i -
|
i 134
|
||||||||||||||||||||||||
Total commercial real estate - other
|
i 162,179
|
i 159,184
|
i 36,185
|
i 42,601
|
i 3,657
|
i 5,367
|
i 107,802
|
i 516,975
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
i - | i - | i - | i - | i - | i - | i - | i - | ||||||||||||||||||||||||
Commercial and industrial
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
i 142,077
|
i 68,443
|
i 41,428
|
i 3,129
|
i 1,849
|
i 4,130
|
i 242,714
|
i 503,770
|
||||||||||||||||||||||||
2 (Watch)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
3 (Special Mention)
|
i 10,452
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 1,333
|
i 11,785
|
||||||||||||||||||||||||
4 (Substandard)
|
i 42,744
|
i 7,963
|
i 112
|
i 12
|
i -
|
i -
|
i 2,298
|
i 53,129
|
||||||||||||||||||||||||
Total commercial and industrial
|
i 195,273
|
i 76,406
|
i 41,540
|
i 3,141
|
i 1,849
|
i 4,130
|
i 246,345
|
i 568,684
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
i - | i - | i - | i - | i - | i - | i - | i - | ||||||||||||||||||||||||
Agriculural
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
i 5,993
|
i 6,291
|
i 24,893 |
i 4,535
|
i 1,109
|
i 1,300
|
i 20,460
|
i 64,581
|
||||||||||||||||||||||||
2 (Watch)
|
i 56
|
i 51
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 107
|
||||||||||||||||||||||||
3 (Special Mention)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
4 (Substandard)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
Total agriculural
|
i 6,049
|
i 6,342
|
i 24,893
|
i 4,535
|
i 1,109
|
i 1,300
|
i 20,460
|
i 64,688
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
i - | i 7 | i - | i - | i - | i - | i - | i 7 | ||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||||||
1 (Pass)
|
i 3,649
|
i 1,988
|
i 2,799
|
i 2,900
|
i 705
|
i 1,934
|
i 938
|
i 14,913
|
||||||||||||||||||||||||
2 (Watch)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
3 (Special Mention)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||||||||
4 (Substandard)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 80
|
i -
|
i 80
|
||||||||||||||||||||||||
Total consumer
|
i 3,649
|
i 1,988
|
i 2,799
|
i 2,900
|
i 705
|
i 2,014
|
i 938
|
i 14,993
|
||||||||||||||||||||||||
Current-period gross charge-offs
|
i 11 | i - | i - | i - | i 5 | i - | i - | i 16 | ||||||||||||||||||||||||
Total loans held for investment
|
$
|
i 425,627
|
$
|
i 281,825
|
$
|
i 124,384
|
$
|
i 57,931
|
$
|
i 9,271
|
$
|
i 13,998
|
$
|
i 482,897
|
$
|
i 1,395,933
|
||||||||||||||||
Total current-period gross charge-offs
|
$ | i 11 | $ | i 7 | $ | i - | $ | i - | $ | i 5 | $ | i - | $ | i - | $ | i 23 |
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
|||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
i 163,203
|
$
|
i 76,928
|
$
|
i 397,295
|
$
|
i 493,412
|
$
|
i 65,857
|
$
|
i 14,927
|
$
|
i 1,211,622
|
||||||||||||||
2 (Watch)
|
i -
|
i -
|
i 14,976
|
i -
|
i 288
|
i -
|
i 15,264
|
|||||||||||||||||||||
3 (Special Mention)
|
i -
|
i -
|
i 24,747
|
i 584
|
i -
|
i -
|
i 25,331
|
|||||||||||||||||||||
4 (Substandard)
|
i -
|
i -
|
i 1,983
|
i 19,015
|
i -
|
i 22
|
i 21,020
|
|||||||||||||||||||||
Total
|
$
|
i 163,203
|
$
|
i 76,928
|
$
|
i 439,001
|
$
|
i 513,011
|
$
|
i 66,145
|
$
|
i 14,949
|
$
|
i 1,273,237
|
Past Due
|
Total Loans |
|||||||||||||||||||||||||||
30–59
Days
|
60–89
Days
|
Greater than
90 Days
|
Total
|
Current
|
Total
Loans
|
> 90 Days &
Accruing
|
||||||||||||||||||||||
Construction & development
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i 139,053
|
$
|
i 139,053
|
$
|
i -
|
||||||||||||||
1 - 4 family real estate
|
i -
|
i -
|
i -
|
i -
|
i 91,540
|
i 91,540
|
i -
|
|||||||||||||||||||||
Commercial real estate - other
|
i 134
|
i -
|
i -
|
i 134
|
i 516,841
|
i 516,975
|
i -
|
|||||||||||||||||||||
Commercial & industrial(1)
|
i 58
|
i -
|
i 9,776
|
i 9,834
|
i 558,850
|
i 568,684
|
i 9,776
|
|||||||||||||||||||||
Agricultural
|
i -
|
i -
|
i -
|
i -
|
i 64,688
|
i 64,688
|
i -
|
|||||||||||||||||||||
Consumer
|
i 123
|
i -
|
i 80
|
i 203
|
i 14,790
|
i 14,993
|
i 80
|
|||||||||||||||||||||
Total
|
$
|
i 315
|
$
|
i -
|
$
|
i 9,856
|
$
|
i 10,171
|
$
|
i 1,385,762
|
$
|
i 1,395,933
|
$
|
i 9,856
|
||||||||||||||
Construction & development
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i 163,203
|
$
|
i 163,203
|
$
|
i -
|
||||||||||||||
1 - 4 family real estate
|
i -
|
i -
|
i -
|
i -
|
i 76,928
|
i 76,928
|
i -
|
|||||||||||||||||||||
Commercial real estate - other
|
i -
|
i 617
|
i -
|
i 617
|
i 438,384
|
i 439,001
|
i -
|
|||||||||||||||||||||
Commercial & industrial(1)
|
i 21
|
i -
|
i 9,923
|
i 9,944
|
i 503,067
|
i 513,011
|
i 9,923
|
|||||||||||||||||||||
Agricultural
|
i 4
|
i -
|
i -
|
i 4
|
i 66,141
|
i 66,145
|
i -
|
|||||||||||||||||||||
Consumer
|
i 291
|
i 82
|
i 22
|
i 395
|
i 14,554
|
i 14,949
|
i 18
|
|||||||||||||||||||||
Total
|
$
|
i 316
|
$
|
i 699
|
$
|
i 9,945
|
$
|
i 10,960
|
$
|
i 1,262,277
|
$
|
i 1,273,237
|
$
|
i 9,941
|
|
Recorded
|
Recorded
|
||||||||||||||||||||||
|
Amortized
|
Investment
|
Investment
|
Total
|
Interest
|
|||||||||||||||||||
|
Cost
|
with No
|
with an
|
Recorded
|
Related
|
Income
|
||||||||||||||||||
|
Basis
|
Allowance
|
Allowance
|
Investment
|
Allowance
|
Recognized
|
||||||||||||||||||
September 30, 2023
|
||||||||||||||||||||||||
Construction & development
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
||||||||||||
1 - 4 Family Real Estate
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||
Commercial Real Estate - other
|
i 134
|
i 134
|
i -
|
i 134
|
i -
|
i 16
|
||||||||||||||||||
Commercial & industrial
|
i 41,109
|
i 14,378
|
i 26,731
|
i 41,109
|
i 3,115
|
i 2,609
|
||||||||||||||||||
Agricultural
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||
Consumer
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
||||||||||||||||||
Total
|
$
|
i 41,243
|
$
|
i 14,512
|
$
|
i 26,731
|
$
|
i 41,243
|
$
|
i 3,115
|
$
|
i 2,625
|
|
Recorded
|
Recorded
|
||||||||||||||||||||||||||
|
Unpaid
|
Investment
|
Investment
|
Total
|
Average
|
Interest
|
||||||||||||||||||||||
|
Principal
|
with No
|
with an
|
Recorded
|
Related
|
Recorded
|
Income
|
|||||||||||||||||||||
|
Balance
|
Allowance
|
Allowance
|
Investment
|
Allowance
|
Investment
|
Recognized
|
|||||||||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i 21
|
$
|
i -
|
||||||||||||||
1 - 4 Family Real Estate
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||||||||
Commercial Real Estate - other
|
i 2,808
|
i 1,983
|
i -
|
i 1,983
|
i -
|
i 11,749
|
i 141
|
|||||||||||||||||||||
Commercial & industrial
|
i 19,882
|
i 18,882
|
i 133
|
i 19,015
|
i 133
|
i 11,773
|
i 1,214
|
|||||||||||||||||||||
Agricultural
|
i -
|
i -
|
i -
|
i -
|
i -
|
i 14
|
i -
|
|||||||||||||||||||||
Consumer
|
i 31
|
i 22
|
i -
|
i 22
|
i -
|
i 27
|
i -
|
|||||||||||||||||||||
Total
|
$
|
i 22,721
|
$
|
i 20,887
|
$
|
i 133
|
$
|
i 21,020
|
$
|
i 133
|
$
|
i 23,584
|
$
|
i 1,355
|
|
|
Collateral Type
|
|||||||||||||||||||
|
Business
|
Specific
|
||||||||||||||||||
|
Real Estate
|
Assets
|
Other Assets
|
Total
|
Allocation
|
|||||||||||||||
September 30, 2023
|
||||||||||||||||||||
Construction & development
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
||||||||||
1 - 4 Family Real Estate
|
i -
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Commercial Real Estate - other
|
i 134
|
i -
|
i -
|
i 134
|
i -
|
|||||||||||||||
Commercial & industrial
|
i -
|
i 43,237
|
i 9,776
|
i 53,013
|
i 3,000
|
|||||||||||||||
Agricultural
|
i -
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Consumer
|
i -
|
i -
|
i 80
|
i 80
|
i -
|
|||||||||||||||
Total
|
$
|
i 134
|
$
|
i 43,237
|
$
|
i 9,856
|
$
|
i 53,227
|
$
|
i 3,000
|
|
Term Extension and Payment Deferral
|
||||||||
|
Amortized Cost Basis
|
% of Total Class
|
Financial Effect
|
||||||
|
|
||||||||
September
30, 2023
|
|
||||||||
Construction & development
|
$
|
i -
|
i -
|
%
|
|||||
1 - 4 Family Real Estate
|
i -
|
i -
|
|
||||||
Commercial Real Estate - other
|
i -
|
i -
|
|
||||||
Commercial & industrial
|
i 26,615
|
i 4.6
|
Extended the maturity of loan by i four months, and payment of principal and interest deferred until the sale of collateral
|
||||||
Agricultural
|
i -
|
i -
|
|
||||||
Consumer
|
i -
|
i -
|
|
||||||
|
|
||||||||
Total
|
$
|
i 26,615
|
i 4.6
|
%
|
|
|
Current
|
30-89 Days Past Due
|
90+ Days Past Due
|
Non-Accruing
|
||||||||||||
|
||||||||||||||||
September 30, 2023
|
||||||||||||||||
Construction & development
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
||||||||
1 - 4 Family Real Estate
|
i -
|
i -
|
i -
|
i -
|
||||||||||||
Commercial Real Estate - other
|
i -
|
i -
|
i -
|
i -
|
||||||||||||
Commercial & industrial
|
i -
|
i -
|
i -
|
i 26,615
|
||||||||||||
Agricultural
|
i -
|
i -
|
i -
|
i -
|
||||||||||||
Consumer
|
i -
|
i -
|
i -
|
i -
|
||||||||||||
|
||||||||||||||||
Total
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i 26,615
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
Nonaccrual loans
|
$
|
i -
|
$
|
i -
|
$
|
i 1,348
|
$
|
i 6,686
|
$
|
i -
|
$
|
i 5
|
$
|
i 8,039
|
||||||||||||||
Troubled-debt restructurings (1)
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||||||||
Accruing loans 90 or more days past due
|
i -
|
i -
|
i -
|
i 9,923
|
i -
|
i 18
|
i 9,941
|
|||||||||||||||||||||
Total nonperforming loans
|
$
|
i -
|
$
|
i -
|
$
|
i 1,348
|
$
|
i 16,609
|
$
|
i -
|
$
|
i 23
|
$
|
i 17,980
|
(1)
|
$ i 1.2 million of TDRs as of December 31, 2022, are included in the nonaccrual loans balance.
|
Note 7: |
Shareholders’ Equity
|
Nine Months Ended
|
||||||||
2022
|
||||||||
Number of shares repurchased | i - | i - | ||||||
Average price of shares repurchased
|
$
|
i -
|
$
|
i -
|
||||
Shares remaining to be repurchased | i 750,000 | i 750,000 |
Actual
|
Minimum
Capital Requirements
|
With Capital
Conservation Buffer
|
Minimum
To Be Well Capitalized
Under Prompt
Corrective Action
|
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||||||||
As of September 30, 2023
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
i 185,826
|
i 12.64
|
%
|
$
|
i 117,623
|
i 8.00
|
%
|
$
|
i 154,381
|
i 10.50
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
i 185,773
|
i 12.64
|
%
|
i 117,542
|
i 8.00
|
%
|
i 154,273
|
i 10.50
|
%
|
|
i 146,927
|
i 10.00
|
%
|
|||||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
i 167,419
|
i 11.39
|
%
|
i 88,218
|
i 6.00
|
%
|
i 124,975
|
i 8.50
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
i 167,379
|
i 11.39
|
%
|
i 88,156
|
i 6.00
|
%
|
i 124,888
|
i 8.50
|
%
|
i 117,542
|
i 8.00
|
%
|
||||||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
i 167,419
|
i 11.39
|
%
|
i 66,163
|
i 4.50
|
%
|
i 102,921
|
i 7.00
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
i 167,379
|
i 11.39
|
%
|
i 66,117
|
i 4.50
|
%
|
i 102,849
|
i 7.00
|
%
|
i 95,503
|
i 6.50
|
%
|
||||||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
i 167,419
|
i 9.76
|
%
|
i 68,634
|
i 4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
Bank
|
i 167,379
|
i 9.75
|
%
|
i 68,644
|
i 4.00
|
%
|
N/A
|
N/A
|
i 85,805
|
i 5.00
|
%
|
|||||||||||||||||||||
As of December 31, 2022
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
i 158,158
|
i 12.41
|
%
|
$
|
i 101,990
|
i 8.00
|
%
|
$
|
i 133,862
|
i 10.50
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
i 158,158
|
i 12.42
|
%
|
i 101,909
|
i 8.00
|
%
|
i 133,756
|
i 10.50
|
%
|
$
|
i 127,387
|
i 10.00
|
%
|
|||||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
i 143,424
|
i 11.25
|
%
|
i 76,493
|
i 6.00
|
%
|
i 108,365
|
i 8.50
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
i 143,424
|
i 11.26
|
%
|
i 76,432
|
i 6.00
|
%
|
i 108,279
|
i 8.50
|
%
|
i 101,909
|
i 8.00
|
%
|
||||||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
i 143,424
|
i 11.25
|
%
|
i 57,370
|
i 4.50
|
%
|
i 89,241
|
i 7.00
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
i 143,424
|
i 11.26
|
%
|
i 57,324
|
i 4.50
|
%
|
i 89,171
|
i 7.00
|
%
|
i 82,801
|
i 6.50
|
%
|
||||||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
i 143,424
|
i 9.19
|
%
|
i 62,460
|
i 4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
Bank
|
i 143,424
|
i 9.18
|
%
|
i 62,489
|
i 4.00
|
%
|
N/A
|
N/A
|
i 78,111
|
i 5.00
|
%
|
Note 8:
|
Related-Party Transactions
|
Note 9:
|
Employee Benefits
|
Options
|
Wgtd. Avg.
Exercise Price
|
Wgtd. Avg.
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Nine Months Ended September 30, 2023
|
||||||||||||||||
Outstanding at December 31, 2022
|
i 251,550
|
$
|
i 17.52
|
|||||||||||||
Options Granted
|
i -
|
i -
|
||||||||||||||
Options Exercised
|
i 26,986
|
i 17.83
|
||||||||||||||
Options Forfeited
|
( i 2,188
|
)
|
i -
|
|||||||||||||
Outstanding at September 30, 2023
|
i 222,376
|
i 17.51
|
i 5.90
|
$
|
i 1,119,462
|
|||||||||||
Exercisable at September 30, 2023
|
i 174,621
|
i 18.00
|
i 5.52
|
$
|
i 787,299
|
For the Nine Months Ended | ||||
Risk-free interest rate
|
i 3.47
|
%
|
||
Dividend yield
|
i 1.96
|
%
|
||
Stock price volatility
|
i 34.92
|
%
|
||
Expected term
|
i 7.01
|
|
Number of
Shares
|
Wgtd. Avg.
Grant Date
Fair Value
|
||||||
Nine Months Ended September 30, 2023
|
||||||||
Outstanding at December 31, 2022
|
i 112,591
|
$
|
i 19.15
|
|||||
Shares granted
|
i 163,311
|
i 29.76
|
||||||
Shares vested
|
( i 40,734
|
)
|
i 19.04
|
|||||
Shares forfeited
|
( i 7,087
|
)
|
i 27.34
|
|||||
End of the period balance
|
i 228,081
|
$
|
i 26.51
|
Number of
Shares
|
Wgtd. Avg.
Grant Date
Fair Value
|
|||||||
Nine Months Ended September 30, 2022
|
||||||||
Outstanding at December 31, 2021
|
i 172,993
|
$
|
i 19.02
|
|||||
Shares granted
|
i 3,000
|
i 4.03
|
||||||
Shares vested
|
( i 41,584
|
)
|
i 17.93
|
|||||
Shares forfeited
|
( i 750
|
)
|
i 22.13
|
|||||
End of the period balance
|
i 133,659
|
$
|
i 19.01
|
Note 10: |
Disclosures About Fair Value of Assets and Liabilities
|
Level 1 |
Quoted prices
in active markets for identical assets or liabilities
|
Level 2 |
Observable
inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities
|
Level 3 |
Unobservable
inputs supported by little or no market activity and significant to the fair value of the assets or liabilities
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
September 30, 2023
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
i 37,501
|
$
|
i -
|
$
|
i -
|
$
|
i 37,501
|
||||||||
Impaired loans (collateral- dependent)
|
$
|
i 6,553
|
$
|
i -
|
$
|
i -
|
$
|
i 6,553
|
Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Weighted-
Average
|
||||||||
Collateral-dependent impaired loans
|
$
|
i 37,501
|
Appraisals from comparable assets
|
Estimated cost to sell
|
i 20 |
%
|
|||||
Collateral-dependent impaired loans
|
$
|
i 6,553
|
Appraisals from comparable assets
|
Estimated cost to sell
|
i 20 | % |
Carrying |
Fair Value Measurements
|
|||||||||||||||||||
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
i 169,490
|
$
|
i 169,490
|
$
|
i -
|
$
|
i -
|
$
|
i 169,490
|
||||||||||
Interest-bearing time
deposits in other banks
|
i 17,182
|
i -
|
i 17,182
|
i -
|
i 17,182
|
|||||||||||||||
Loans, net of allowance
|
i 1,372,128
|
i -
|
i 1,331,087
|
i 37,501
|
i 1,368,588
|
|||||||||||||||
Loans held for sale
|
i 1,143 | i - | i 1,143 | i - | i 1,143 | |||||||||||||||
Nonmarketable equity securities
|
i 1,251
|
i -
|
i 1,251
|
i -
|
i 1,251
|
|||||||||||||||
Interest receivable
|
i 8,769
|
i -
|
i 8,769
|
i -
|
i 8,769
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
i 1,593,572
|
$
|
i -
|
$
|
i 1,591,894
|
$
|
i -
|
$
|
i 1,591,894
|
||||||||||
Interest payable
|
i 1,334
|
i -
|
i 1,334
|
i -
|
i 1,334
|
|||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
i 109,115
|
$
|
i 109,115
|
$
|
i -
|
$
|
i -
|
$
|
i 109,115
|
||||||||||
Interest-bearing time
deposits in other banks
|
i 5,474
|
i -
|
i 5,474
|
i -
|
i 5,474
|
|||||||||||||||
Loans, net of allowance
|
i 1,255,722
|
i -
|
i 1,245,825
|
i 6,553
|
i 1,252,378
|
|||||||||||||||
Nonmarketable equity securities
|
i 1,209
|
i -
|
i 1,209
|
i -
|
i 1,209
|
|||||||||||||||
Interest receivable
|
i 8,124
|
i -
|
i 8,124
|
i -
|
i 8,124
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
i 1,431,400
|
$
|
i -
|
$
|
i 1,429,565
|
$
|
i -
|
$
|
i 1,429,565
|
||||||||||
Interest payable
|
i 339
|
i -
|
i 339
|
i -
|
i 339
|
Note 11: |
Financial Instruments with Off-Balance Sheet Risk
|
Commitments to extend credit
|
$
|
i 245,079
|
$
|
i 198,027
|
||||
Financial and performance standby letters of credit
|
i 2,148
|
i 1,043
|
||||||
$
|
i 247,227
|
$
|
i 199,070
|
Note 12: |
Significant Estimates and Concentrations
|
Note 13: |
Subsequent Events
|
Net Interest Margin
|
||||||||||||||||||||||||
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
2022
|
||||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Short-term investments
|
$
|
176,589
|
$
|
2,062
|
4.63
|
%
|
$
|
99,751
|
$
|
445
|
1.77
|
%
|
||||||||||||
Debt securities, taxable
|
151,174
|
699
|
1.83
|
163,699
|
690
|
1.67
|
||||||||||||||||||
Debt securities, tax exempt(1)
|
19,430
|
81
|
1.65
|
21,811
|
90
|
1.64
|
||||||||||||||||||
Loans held for sale
|
232
|
-
|
-
|
1,281
|
-
|
-
|
||||||||||||||||||
Total loans(2)
|
1,344,038
|
28,880
|
8.52
|
1,213,080
|
20,466
|
6.69
|
||||||||||||||||||
Total interest-earning assets
|
1,691,463
|
31,722
|
7.44
|
1,499,622
|
21,691
|
5.74
|
||||||||||||||||||
Noninterest-earning assets
|
23,407
|
23,197
|
||||||||||||||||||||||
Total assets
|
$
|
1,714,870
|
$
|
1,522,819
|
||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
823,331
|
7,733
|
3.73
|
%
|
$
|
761,927
|
2,338
|
1.22
|
%
|
||||||||||||||
Time deposits
|
292,235
|
3,243
|
4.40
|
152,910
|
308
|
0.80
|
||||||||||||||||||
Total interest-bearing deposits
|
1,115,566
|
10,976
|
3.90
|
914,837
|
2,646
|
1.15
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
1,115,566
|
10,976
|
3.90
|
$
|
914,837
|
2,646
|
1.15
|
||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
422,691
|
$
|
463,882
|
||||||||||||||||||||
Other noninterest-bearing liabilities
|
11,649
|
8,132
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
434,340
|
472,014
|
||||||||||||||||||||||
Shareholders' equity
|
164,964
|
135,968
|
||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,714,870
|
$
|
1,522,819
|
||||||||||||||||||||
Net interest income
|
$
|
20,746
|
$
|
19,045
|
||||||||||||||||||||
Net interest spread
|
3.54
|
%
|
4.59
|
%
|
||||||||||||||||||||
Net interest margin
|
4.87
|
%
|
5.04
|
%
|
(1) |
Taxable-equivalent yield of 2.15% as of September 30, 2023, applying a 23.0% effective tax rate
|
(2) |
Non-accrual loans of $41.2 million and $8.2 million as of September 30, 2023 and September 30, 2022, respectively, are included in loans.
|
- |
Interest income on total loans totaled $28.9 million, an increase of $8.4 million or 41.1%, due to an increase in average loans of $131.0 million, or 10.8%, and increased loan yields;
|
- |
Loan yields totaled 8.52% compared to 6.69% for the same period in 2022, primarily due to the continued fed rate hikes; and
|
- |
Net interest margin for the third quarter of 2023 was 4.87% compared to 5.04% for the third quarter of 2022.
|
Net Interest Margin
|
||||||||||||||||||||||||
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
2022
|
||||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Short-term investments
|
$
|
162,432
|
$
|
5,668
|
4.67
|
%
|
$
|
139,133
|
$
|
793
|
0.76
|
%
|
||||||||||||
Debt securities, taxable
|
152,702
|
2,106
|
1.84
|
142,913
|
1,625
|
1.52
|
||||||||||||||||||
Debt securities, tax exempt(1)
|
19,828
|
253
|
1.71
|
22,087
|
273
|
1.65
|
||||||||||||||||||
Loans held for sale
|
115
|
-
|
-
|
686
|
-
|
-
|
||||||||||||||||||
Total loans(2)
|
1,299,754
|
81,117
|
8.34
|
1,103,114
|
50,597
|
6.13
|
||||||||||||||||||
Total interest-earning assets
|
1,634,831
|
$
|
89,144
|
7.29
|
1,407,933
|
53,288
|
5.06
|
|||||||||||||||||
Noninterest-earning assets
|
22,560
|
24,069
|
||||||||||||||||||||||
Total assets
|
$
|
1,657,391
|
$
|
1,432,002
|
||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
812,962
|
20,346
|
3.35
|
%
|
$
|
699,670
|
3,351
|
0.64
|
%
|
||||||||||||||
Time deposits
|
257,418
|
7,548
|
3.92
|
168,608
|
890
|
0.71
|
||||||||||||||||||
Total interest-bearing deposits
|
1,070,380
|
27,894
|
3.48
|
868,278
|
4,241
|
0.65
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
1,070,380
|
27,894
|
3.48
|
868,278
|
4,241
|
0.65
|
|||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
420,356
|
424,720
|
|||||||||||||||||||||
Other noninterest-bearing liabilities
|
10,496
|
7,128
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
430,852
|
431,848
|
||||||||||||||||||||||
Shareholders' equity
|
156,159
|
131,876
|
||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,657,391
|
$
|
1,432,002
|
||||||||||||||||||||
Net interest income
|
$
|
61,250
|
$
|
49,047
|
||||||||||||||||||||
Net interest spread
|
3.81
|
%
|
4.41
|
%
|
||||||||||||||||||||
Net interest margin
|
5.01
|
%
|
4.66
|
%
|
(1) |
Taxable-equivalent yield of 2.24% as of September 30, 2023, applying a 23.7% effective tax rate
|
(2) |
Non-accrual loans of $41.2 million and $8.2 million as of September 30, 2023 and September 30, 2022, respectively, are included in loans.
|
- |
Interest income on total loans totaled $81.2 million, an increase of $30.5 million or 60.3%, due to an increase in average loans of $196.6 million, or 17.8%, and increased loan yields;
|
- |
Loan yields totaled 8.3% compared to 6.1% for the same period in 2022, primarily due to the continued fed rate hikes;
|
- |
Interest income on debt securities totaled $2.4 million an increase of $461,000 or 24.3%, as a result of debt securities purchased during the first quarter of 2022; and
|
- |
Net interest margin for the first nine months of 2023 was 5.01% compared to 4.66% for the same period in 2022.
|
Analysis of Changes in Interest Income and Expenses
|
||||||||||||
For the Three Months Ended
September 30, 2023 vs 2022
|
||||||||||||
Change due to:
|
||||||||||||
Volume(1)
|
Rate(1)
|
Interest
Variance |
||||||||||
(Dollars in thousands)
|
||||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Short-term investments
|
$
|
343
|
$
|
1,274
|
$
|
1,617
|
||||||
Debt securities
|
(63
|
)
|
63
|
-
|
||||||||
Total loans
|
2,208
|
6,206
|
8,414
|
|||||||||
Total increase (decrease) in interest income
|
2,488
|
7,543
|
10,031
|
|||||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Transaction accounts
|
189
|
5,206
|
5,395
|
|||||||||
Time deposits
|
281
|
2,654
|
2,935
|
|||||||||
Total interest-bearing deposits
|
470
|
7,860
|
8,330
|
|||||||||
Total increase (decrease) in interest expense
|
470
|
7,860
|
8,330
|
|||||||||
Increase (Decrease) in net interest income
|
$
|
2,018
|
$
|
(317
|
)
|
$
|
1,701
|
Analysis of Changes in Interest Income and Expenses
|
||||||||||||
For the Nine Months Ended
September 30, 2023 vs 2022
|
||||||||||||
Change due to:
|
||||||||||||
Volume(1)
|
Rate(1)
|
Interest
Variance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Short-term investments
|
$
|
45
|
$
|
4,830
|
$
|
4,875
|
||||||
Debt securities
|
29
|
432
|
461
|
|||||||||
Total loans
|
3,038
|
27,482
|
30,520
|
|||||||||
Total increase (decrease) in interest income
|
3,112
|
32,744
|
35,856
|
|||||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Transaction accounts
|
183
|
16,812
|
16,995
|
|||||||||
Time deposits
|
159
|
6,499
|
6,658
|
|||||||||
Total interest-bearing deposits
|
342
|
23,311
|
23,653
|
|||||||||
Total increase (decrease) in interest expense
|
342
|
23,311
|
23,653
|
|||||||||
Increase (Decrease) in net interest income
|
$
|
2,770
|
$
|
9,433
|
$
|
12,203
|
As of September 30, 2023
|
||||||||||||||||||||||||||||||||||||||||
Within One Year
|
After One Year But
Within Five Years |
After Five Years But
Within Ten Years |
After Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
|||||||||||||||||||||||||||||||
Available-for-sale
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
32
|
2.39
|
%
|
$
|
108
|
2.93
|
%
|
$
|
-
|
0
|
%
|
$
|
-
|
0
|
%
|
$
|
140
|
2.81
|
%
|
||||||||||||||||||||
Mortgage-backed securities
|
-
|
1.22
|
10,403
|
1.31
|
2,359
|
1.54
|
21,318
|
1.70
|
34,080
|
1.57
|
||||||||||||||||||||||||||||||
State and political subdivisions
|
4,032
|
1.20
|
13,017
|
1.24
|
8,046
|
1.54
|
129
|
1.66
|
25,224
|
1.33
|
||||||||||||||||||||||||||||||
U.S. Treasuries
|
98,352
|
1.19
|
1,750
|
1.01
|
3,336
|
1.54
|
-
|
-
|
103,438
|
1.18
|
||||||||||||||||||||||||||||||
Corporate debt securities
|
-
|
-
|
-
|
-
|
4,256
|
1.54
|
-
|
-
|
4,256
|
3.36
|
||||||||||||||||||||||||||||||
Total
|
$
|
102,416
|
1.19
|
%
|
$
|
25,278
|
1.26
|
%
|
$
|
17,997
|
1.91
|
%
|
$
|
21,447
|
1.70
|
%
|
$
|
167,138
|
1.36
|
%
|
||||||||||||||||||||
Percentage of total
|
61.28
|
%
|
15.12
|
%
|
10.77
|
%
|
12.83
|
%
|
100.00
|
%
|
For the Three Months Ended
|
||||||||||||||||
2022
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest income:
|
||||||||||||||||
Mortgage lending income
|
$
|
6
|
$
|
134
|
$
|
(128
|
)
|
-95.52
|
%
|
|||||||
Loss on sales of available-for-sale debt securities
|
(7
|
)
|
(10
|
)
|
3
|
-30.00
|
%
|
|||||||||
Service charges on deposit accounts
|
213
|
210
|
3
|
1.43
|
%
|
|||||||||||
Other income and fees
|
795
|
506
|
289
|
57.11
|
%
|
|||||||||||
Total noninterest income
|
$
|
1,007
|
$
|
840
|
$
|
167
|
19.88
|
%
|
For the Nine Months Ended
|
||||||||||||||||
2022
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest income:
|
||||||||||||||||
Mortgage lending income
|
$
|
172
|
$
|
395
|
$
|
(223
|
)
|
-56.46
|
%
|
|||||||
Loss on sales of available-for-sale debt securities
|
(15
|
)
|
(127
|
)
|
112
|
-88.19
|
%
|
|||||||||
Service charges on deposit accounts
|
647
|
678
|
(31
|
)
|
-4.57
|
%
|
||||||||||
Other income and fees
|
1,668
|
1,261
|
407
|
32.28
|
%
|
|||||||||||
Total noninterest income
|
$
|
2,472
|
$
|
2,207
|
$
|
265
|
12.01
|
%
|
For the Three Months Ended
|
||||||||||||||||
2022
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
$
|
4,910
|
$
|
3,996
|
$
|
914
|
22.87
|
%
|
||||||||
Furniture and equipment
|
254
|
390
|
(136
|
)
|
-34.87
|
%
|
||||||||||
Occupancy
|
662
|
614
|
48
|
7.82
|
%
|
|||||||||||
Data and item processing
|
424
|
522
|
(98
|
)
|
-18.77
|
%
|
||||||||||
Accounting, marketing, and legal fees
|
14
|
340
|
(326
|
)
|
-95.88
|
%
|
||||||||||
Regulatory assessments
|
279
|
551
|
(272
|
)
|
-49.36
|
%
|
||||||||||
Advertising and public relations
|
74
|
83
|
(9
|
)
|
-10.84
|
%
|
||||||||||
Travel, lodging and entertainment
|
85
|
94
|
(9
|
)
|
-9.57
|
%
|
||||||||||
Other expense
|
688
|
543
|
145
|
26.70
|
%
|
|||||||||||
Total noninterest expense
|
$
|
7,390
|
$
|
7,133
|
$
|
257
|
3.60
|
%
|
For the Nine Months Ended
|
||||||||||||||||
2022
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
$
|
14,299
|
$
|
12,148
|
$
|
2,151
|
17.71
|
%
|
||||||||
Furniture and equipment
|
755
|
1,134
|
(379
|
)
|
-33.42
|
%
|
||||||||||
Occupancy
|
1,980
|
1,736
|
244
|
14.06
|
%
|
|||||||||||
Data and item processing
|
1,280
|
1,468
|
(188
|
)
|
-12.81
|
%
|
||||||||||
Accounting, marketing, and legal fees
|
491
|
782
|
(291
|
)
|
-37.21
|
%
|
||||||||||
Regulatory assessments
|
1,013
|
973
|
40
|
4.11
|
%
|
|||||||||||
Advertising and public relations
|
273
|
314
|
(41
|
)
|
-13.06
|
%
|
||||||||||
Travel, lodging and entertainment
|
255
|
216
|
39
|
18.06
|
%
|
|||||||||||
Other expense
|
2,068
|
1,745
|
323
|
18.51
|
%
|
|||||||||||
Total noninterest expense
|
$
|
22,414
|
$
|
20,516
|
$
|
1,898
|
9.25
|
%
|
As of September 30,
|
As of December 31
|
|||||||||||||||
2023
|
2022
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Construction & development
|
$
|
139,053
|
10.0
|
%
|
$
|
163,203
|
12.8
|
%
|
||||||||
1-4 family real estate
|
91,540
|
6.6
|
%
|
76,928
|
6.0
|
%
|
||||||||||
Commercial real estate - other
|
516,975
|
37.0
|
%
|
439,001
|
34.5
|
%
|
||||||||||
Total commercial real estate
|
747,568
|
53.6
|
%
|
679,132
|
53.3
|
%
|
||||||||||
Commercial & industrial
|
568,684
|
40.7
|
%
|
513,011
|
40.3
|
%
|
||||||||||
Agricultural
|
64,688
|
4.6
|
%
|
66,145
|
5.2
|
%
|
||||||||||
Consumer
|
14,993
|
1.1
|
%
|
14,949
|
1.2
|
%
|
||||||||||
Gross loans
|
1,395,933
|
100.0
|
%
|
1,273,237
|
100.0
|
%
|
||||||||||
Less: unearned income, net
|
(3,156
|
)
|
(2,781
|
)
|
||||||||||||
Total Loans, net of unearned income
|
1,392,777
|
1,270,456
|
||||||||||||||
Less: Allowance for credit losses
|
(20,649
|
)
|
(14,734
|
)
|
||||||||||||
Net loans
|
$
|
1,372,128
|
$
|
1,255,722
|
As of September 30, 2023
|
||||||||||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years |
Due after Five Years
Through Fifteen Years |
Due after Fifteen Years
|
|||||||||||||||||||||||||||||||||
Fixed
Rate |
Adjustable
Rate |
Fixed
Rate |
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
7,306
|
$
|
68,731
|
$
|
6,742
|
$
|
42,350
|
$
|
-
|
$
|
13,589
|
$
|
335
|
$
|
-
|
$
|
139,053
|
||||||||||||||||||
1-4 family real estate
|
10,760
|
11,164
|
39,491
|
19,148
|
28
|
5,435
|
5,514
|
-
|
91,540
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
46,278
|
77,209
|
153,640
|
206,163
|
137
|
21,946
|
11,602
|
-
|
516,975
|
|||||||||||||||||||||||||||
Total commercial real estate
|
64,344
|
157,104
|
199,873
|
267,661
|
165
|
40,970
|
17,451
|
-
|
747,568
|
|||||||||||||||||||||||||||
Commercial & industrial
|
15,460
|
331,247
|
41,492
|
166,400
|
3,452
|
10,013
|
620
|
-
|
568,684
|
|||||||||||||||||||||||||||
Agricultural
|
13,063
|
25,091
|
9,185
|
13,165
|
59
|
1,254
|
2,871
|
-
|
64,688
|
|||||||||||||||||||||||||||
Consumer
|
2,388
|
17
|
5,897
|
110
|
582
|
2,908
|
3,091
|
-
|
14,993
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
95,255
|
$
|
513,459
|
$
|
256,447
|
$
|
447,336
|
$
|
4,258
|
$
|
55,145
|
$
|
24,033
|
$
|
-
|
$
|
1,395,933
|
As of December 31, 2022
|
||||||||||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years |
Due after Five Years
Through Fifteen Years |
Due after Fifteen Years
|
|||||||||||||||||||||||||||||||||
Fixed
Rate |
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate |
Fixed
Rate
|
Adjustable
Rate |
Total
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
11,749
|
$
|
81,002
|
$
|
7,556
|
$
|
57,439
|
$
|
-
|
$
|
1,160
|
$
|
-
|
$
|
4,297
|
$
|
163,203
|
||||||||||||||||||
1-4 family real estate
|
10,550
|
12,664
|
24,741
|
15,782
|
314
|
6,606
|
-
|
6,271
|
76,928
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
2,680
|
59,870
|
131,105
|
207,819
|
6,635
|
17,146
|
-
|
13,746
|
439,001
|
|||||||||||||||||||||||||||
Total commercial real estate
|
24,979
|
153,536
|
163,402
|
281,040
|
6,949
|
24,912
|
-
|
24,314
|
679,132
|
|||||||||||||||||||||||||||
Commercial & industrial
|
43,823
|
234,573
|
60,275
|
159,571
|
3,745
|
10,390
|
-
|
634
|
513,011
|
|||||||||||||||||||||||||||
Agricultural
|
1,798
|
17,514
|
8,767
|
33,270
|
469
|
980
|
140
|
3,207
|
66,145
|
|||||||||||||||||||||||||||
Consumer
|
1,683
|
22
|
6,310
|
156
|
587
|
2,860
|
82
|
3,249
|
14,949
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
72,283
|
$
|
405,645
|
$
|
238,754
|
$
|
474,037
|
$
|
11,750
|
$
|
39,142
|
$
|
222
|
$
|
31,404
|
$
|
1,273,237
|
For the Nine Months Ended
|
||||||||
2022
|
||||||||
(Dollars in thousands)
|
||||||||
Balance at beginning of the period
|
$
|
14,734
|
$
|
10,316
|
||||
Impact of CECL adoption
|
250
|
-
|
||||||
Provision for credit losses for loans
|
5,681
|
2,843
|
||||||
Charge-offs:
|
||||||||
Construction & development
|
-
|
-
|
||||||
1-4 family real estate
|
-
|
-
|
||||||
Commercial real estate - other
|
-
|
-
|
||||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
(7
|
)
|
-
|
|||||
Consumer
|
(16
|
)
|
(20
|
)
|
||||
Total charge-offs
|
(23
|
)
|
(20
|
)
|
||||
Recoveries:
|
||||||||
Construction & development
|
-
|
-
|
||||||
1-4 family real estate
|
-
|
-
|
||||||
Commercial real estate - other
|
-
|
-
|
||||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
2
|
-
|
||||||
Consumer
|
5
|
14
|
||||||
Total recoveries
|
7
|
14
|
||||||
Net recoveries (charge-offs)
|
(16
|
)
|
(6
|
)
|
||||
Balance at end of the period
|
$
|
20,649
|
$
|
13,153
|
||||
Net recoveries (charge-offs) to average loans
|
0.00
|
%
|
0.00
|
%
|
As of September 30,
|
As of December 31,
|
|||||||||||||||
2022
|
||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Construction & development
|
$
|
1,481
|
7.2
|
%
|
$
|
1,889
|
12.8
|
%
|
||||||||
1-4 family real estate
|
1,146
|
5.5
|
%
|
890
|
6.0
|
%
|
||||||||||
Commercial real estate - Other
|
6,729
|
32.6
|
%
|
5,080
|
34.5
|
%
|
||||||||||
Commercial & industrial
|
10,430
|
50.6
|
%
|
5,937
|
40.3
|
%
|
||||||||||
Agricultural
|
609
|
2.9
|
%
|
765
|
5.2
|
%
|
||||||||||
Consumer
|
254
|
1.2
|
%
|
173
|
1.2
|
%
|
||||||||||
Total
|
$
|
20,649
|
100.0
|
%
|
$
|
14,734
|
100.0
|
%
|
As of
September 30,
|
As of
|
|||||||
2022
|
||||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans
|
$
|
41,243
|
$
|
8,039
|
||||
Accruing loans 90 or more days past due
|
9,856
|
9,941
|
||||||
Total nonperforming assets
|
$
|
51,099
|
$
|
17,980
|
||||
Ratio of nonperforming loans to total loans
|
3.67
|
%
|
1.42
|
%
|
||||
Ratio of nonaccrual loans to total loans
|
2.96
|
%
|
0.63
|
%
|
||||
Ratio of allowance for credit losses to total loans
|
1.48
|
%
|
1.16
|
%
|
||||
Ratio of allowance for credit losses to nonaccrual loans
|
50.07
|
%
|
183.28
|
%
|
||||
Ratio of nonperforming assets to total assets
|
2.88
|
%
|
1.13
|
%
|
As of September 30, 2023
|
||||||||||||||||||||||||||||
Loans 30-59 days past due
|
Loans 60-89 days past due
|
Loans 90+ days past due
|
Loans 90+ days past due and accruing
|
Total past due loans
|
Current
|
Total loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
139,053
|
$
|
139,053
|
||||||||||||||
1-4 family real estate
|
-
|
-
|
-
|
-
|
-
|
91,540
|
91,540
|
|||||||||||||||||||||
Commercial real estate
|
134
|
-
|
-
|
-
|
134
|
516,841
|
516,975
|
|||||||||||||||||||||
Commercial & industrial
|
58
|
-
|
9,776
|
9,776
|
9,834
|
558,850
|
568,684
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
64,688
|
64,688
|
|||||||||||||||||||||
Consumer
|
123
|
-
|
80
|
80
|
203
|
14,790
|
14,993
|
|||||||||||||||||||||
Total
|
$
|
315
|
$
|
-
|
$
|
9,856
|
$
|
9,856
|
$
|
10,171
|
$
|
1,385,762
|
$
|
1,395,933
|
As of December 31, 2022
|
||||||||||||||||||||||||||||
Loans 30-59 days past due
|
Loans 60-89 days past due
|
Loans 90+ days past due
|
Loans 90+ days past due and accruing
|
Total Past Due Loans
|
Current
|
Total loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
163,203
|
$
|
163,203
|
||||||||||||||
1-4 family real estate
|
-
|
-
|
-
|
-
|
-
|
76,928
|
76,928
|
|||||||||||||||||||||
Commercial real estate
|
-
|
617
|
-
|
-
|
617
|
438,384
|
439,001
|
|||||||||||||||||||||
Commercial & industrial
|
21
|
-
|
9,923
|
9,923
|
9,944
|
503,067
|
513,011
|
|||||||||||||||||||||
Agricultural
|
4
|
-
|
-
|
-
|
4
|
66,141
|
66,145
|
|||||||||||||||||||||
Consumer
|
291
|
82
|
22
|
18
|
395
|
14,554
|
14,949
|
|||||||||||||||||||||
Total
|
$
|
316
|
$
|
699
|
$
|
9,945
|
$
|
9,941
|
$
|
10,960
|
$
|
1,262,277
|
$
|
1,273,237
|
|
As of September 30, 2023
|
|||||||||||||||||||
|
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
|||||||||||||||
|
||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Construction & development
|
$
|
138,260
|
$
|
-
|
$
|
793
|
$
|
-
|
$
|
139,053
|
||||||||||
1-4 family real estate
|
91,540
|
-
|
-
|
-
|
91,540
|
|||||||||||||||
Commercial real estate - Other
|
501,009
|
-
|
15,832
|
134
|
516,975
|
|||||||||||||||
Commercial & industrial
|
503,770
|
-
|
11,785
|
53,129
|
568,684
|
|||||||||||||||
Agricultural
|
64,581
|
107
|
-
|
-
|
64,688
|
|||||||||||||||
Consumer
|
14,913
|
-
|
-
|
80
|
14,993
|
|||||||||||||||
Total
|
$
|
1,314,073
|
$
|
107
|
$
|
28,410
|
$
|
53,343
|
$
|
1,395,933
|
|
As of December 31, 2022
|
|||||||||||||||||||
|
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
|||||||||||||||
|
||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Construction & development
|
$
|
163,203
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
163,203
|
||||||||||
1-4 family real estate
|
76,928
|
-
|
-
|
-
|
76,928
|
|||||||||||||||
Commercial real estate - Other
|
397,295
|
14,976
|
24,747
|
1,983
|
439,001
|
|||||||||||||||
Commercial & industrial
|
493,412
|
-
|
584
|
19,015
|
513,011
|
|||||||||||||||
Agricultural
|
65,857
|
288
|
-
|
-
|
66,145
|
|||||||||||||||
Consumer
|
14,927
|
-
|
-
|
22
|
14,949
|
|||||||||||||||
Total
|
$
|
1,211,622
|
$
|
15,264
|
$
|
25,331
|
$
|
21,020
|
$
|
1,273,237
|
|
As of September 30,
|
|||||||||||||||
|
2022
|
|||||||||||||||
|
Amount
|
Percentage of Total
|
Amount
|
Percentage of Total
|
||||||||||||
|
||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Noninterest-bearing demand
|
$
|
480,827
|
30.1
|
%
|
$
|
441,509
|
30.9
|
%
|
||||||||
Interest-bearing transaction deposits
|
722,301
|
45.3
|
%
|
669,852
|
46.8
|
%
|
||||||||||
Savings deposits
|
133,198
|
8.4
|
%
|
136,537
|
9.5
|
%
|
||||||||||
Time deposits ($250,000 or less)
|
168,371
|
10.6
|
%
|
140,929
|
9.8
|
%
|
||||||||||
Time deposits (more than $250,000)
|
88,875
|
5.6
|
%
|
42,573
|
3.0
|
%
|
||||||||||
Total interest-bearing deposits
|
1,112,745
|
69.9
|
%
|
989,891
|
69.1
|
%
|
||||||||||
Total deposits
|
$
|
1,593,572
|
100.0
|
%
|
$
|
1,431,400
|
100.0
|
%
|
|
As of September 30, 2023 Maturity Within:
|
|||||||||||||||||||
|
Three Months
|
Three to Six Months
|
Six to 12 Months
|
After 12 Months
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Time deposits ($250,000 or less)
|
$
|
64,130
|
$
|
44,202
|
$
|
45,618
|
$
|
14,421
|
$
|
168,371
|
||||||||||
Time deposits (more than $250,000)
|
26,218
|
30,753
|
10,404
|
21,500
|
88,875
|
|||||||||||||||
Total time deposits
|
$
|
90,348
|
$
|
74,955
|
$
|
56,022
|
$
|
35,921
|
$
|
257,246
|
|
As of December 31, 2022 Maturity Within:
|
|||||||||||||||||||
|
Three Months
|
Three to Six Months
|
Six to 12 Months
|
After 12 Months
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Time deposits ($250,000 or less)
|
$
|
58,184
|
$
|
25,333
|
$
|
38,844
|
$
|
18,568
|
$
|
140,929
|
||||||||||
Time deposits (more than $250,000)
|
12,292
|
5,579
|
17,001
|
7,701
|
42,573
|
|||||||||||||||
Total time deposits
|
$
|
70,476
|
$
|
30,912
|
$
|
55,845
|
$
|
26,269
|
$
|
183,502
|
|
Actual
|
With Capital
Conservation Buffer |
Minimum to be "Well-Capitalized" Under Prompt Corrective Action
|
|||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
As of September 30, 2023
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
$
|
185,826
|
12.64
|
%
|
$
|
154,381
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
185,773
|
12.64
|
%
|
154,273
|
10.50
|
%
|
$
|
146,927
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
167,419
|
11.39
|
%
|
124,975
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
167,379
|
11.39
|
%
|
124,888
|
8.50
|
%
|
117,542
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
167,419
|
11.39
|
%
|
102,921
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
167,379
|
11.39
|
%
|
102,849
|
7.00
|
%
|
95,503
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Company
|
167,419
|
9.76
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
167,379
|
9.75
|
%
|
N/A
|
N/A
|
85,805
|
5.00
|
%
|
|
Actual
|
With Capital Conservation Buffer
|
Minimum to be "Well-Capitalized" Under Prompt Corrective Action
|
|||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
As of December 31, 2022
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
$
|
158,158
|
12.41
|
%
|
$
|
133,862
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
158,158
|
12.42
|
%
|
133,756
|
10.50
|
%
|
$
|
127,387
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
143,424
|
11.25
|
%
|
108,365
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
143,424
|
11.26
|
%
|
108,279
|
8.50
|
%
|
101,909
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
143,424
|
11.25
|
%
|
89,241
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
143,424
|
11.26
|
%
|
89,171
|
7.00
|
%
|
82,801
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Company
|
143,424
|
9.19
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
143,424
|
9.18
|
%
|
N/A
|
N/A
|
78,111
|
5.00
|
%
|
|
Payments Due as of September 30, 2023
|
|||||||||||||||||||
|
Within One Year
|
One to Three Years
|
Three to Five Years
|
After Five Years
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Deposits without a stated maturity
|
$
|
1,336,326
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,336,326
|
||||||||||
Time deposits
|
221,325
|
34,753
|
1,168
|
-
|
257,246
|
|||||||||||||||
Operating lease commitments
|
380
|
768
|
369
|
1,088
|
2,605
|
|||||||||||||||
Total contractual obligations
|
$
|
1,558,031
|
$
|
35,521
|
$
|
1,537
|
$
|
1,088
|
$
|
1,596,177
|
|
Payments Due as of December 31, 2022
|
|||||||||||||||||||
|
Within One Year
|
One to Three Years
|
Three to Five Years
|
After Five Years
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Deposits without a stated maturity
|
$
|
1,245,798
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,245,798
|
||||||||||
Time deposits
|
157,233
|
26,002
|
267
|
-
|
183,502
|
|||||||||||||||
Operating lease commitments
|
532
|
815
|
453
|
530
|
2,330
|
|||||||||||||||
Total contractual obligations
|
$
|
1,403,563
|
$
|
26,817
|
$
|
720
|
$
|
530
|
$
|
1,431,630
|
|
September 30,
|
|||||||
|
2022
|
|||||||
|
(Dollars in thousands)
|
|||||||
Commitments to extend credit
|
$
|
245,079
|
$
|
198,027
|
||||
Standby letters of credit
|
2,148
|
1,043
|
||||||
Total
|
$
|
247,227
|
$
|
199,070
|
September 30 ,
|
|||||||||||||||||
2022
|
|||||||||||||||||
Change in Interest Rates (Basis Points)
|
Percent Change in Net Interest Income
|
Percent Change in Fair Value of Equity
|
Percent Change in Net Interest Income
|
Percent Change in Fair Value of Equity
|
|||||||||||||
+400
|
19.59
|
%
|
19.89
|
%
|
13.41
|
%
|
20.90
|
%
|
|||||||||
+300
|
15.67
|
%
|
19.00
|
%
|
9.96
|
%
|
20.13
|
%
|
|||||||||
+200
|
11.74
|
%
|
18.05
|
%
|
6.50
|
%
|
19.17
|
%
|
|||||||||
+100
|
7.76
|
%
|
16.99
|
%
|
2.99
|
%
|
18.04
|
%
|
|||||||||
Base
|
3.53
|
%
|
15.86
|
%
|
-0.77
|
%
|
16.91
|
%
|
|||||||||
-100
|
-1.33
|
%
|
14.50
|
%
|
-4.82
|
%
|
15.25
|
%
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
BANK7 CORP.
|
|
DATED: November 9, 2023
|
By: /s/ Thomas L. Travis
|
Vice Chairman and Chief Executive Officer
|
|
DATED: November 9, 2023
|
By: /s/ Kelly J. Harris
|
Executive Vice President and Chief Financial Officer
|
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/23 | ||||
Filed on: | 11/9/23 | |||
10/31/23 | 4, 4/A | |||
10/19/23 | ||||
For Period end: | 9/30/23 | |||
1/1/23 | ||||
12/31/22 | 10-K, ARS | |||
9/30/22 | 10-Q | |||
12/31/21 | 10-K | |||
12/9/21 | 8-K, 8-K/A | |||
10/28/21 | 4 | |||
3/26/20 | ||||
List all Filings |