☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
California | 68-0450397 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
195 N. First Street, Dixon, California | 95620 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbols(s) | Name of each exchange on which registered | ||
None | Not Applicable | Not Applicable |
Yes ☒ | No ☐ |
Yes ☒ | No ☐ |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☒ | Smaller reporting company ☒ |
Yes ☐ | No ☒ |
Page | |
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3 | |
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4 | |
5 | |
6 | |
7 | |
8 | |
(in thousands, except share amounts) | September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 264,403 | $ | 345,929 | $ | 197,105 | $ | 187,417 | ||||||||
Certificates of deposit | 11,091 | 13,272 | 20,696 | 20,948 | ||||||||||||
Investment securities – available-for-sale | 607,985 | 632,213 | ||||||||||||||
Loans, net of allowance for loan losses of $14,771 at September 30, 2022 and $13,952 at December 31, 2021 | 971,249 | 852,717 | ||||||||||||||
Investment securities – available-for-sale, at estimated fair value, net of allowance for credit losses of $0; amortized cost of $636,903 at September 30, 2023 and $683,784 at December 31, 2022 | 567,409 | 618,092 | ||||||||||||||
Loans, net of allowance for credit losses of $16,149 at September 30, 2023 and $14,792 at December 31, 2022 | 1,037,066 | 970,138 | ||||||||||||||
Loans held-for-sale | — | 1,063 | 369 | — | ||||||||||||
Stock in Federal Home Loan Bank and other equity securities, at cost | 9,440 | 7,097 | 10,518 | 9,440 | ||||||||||||
Premises and equipment, net | 6,018 | 6,552 | 10,058 | 6,122 | ||||||||||||
Core deposit intangible | 4,367 | — | ||||||||||||||
Interest receivable and other assets | 62,527 | 40,244 | 54,740 | 59,204 | ||||||||||||
Total Assets | $ | 1,932,713 | $ | 1,899,087 | $ | 1,902,328 | $ | 1,871,361 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Liabilities: | ||||||||||||||||
Demand deposits | $ | 846,037 | $ | 820,412 | $ | 770,620 | $ | 775,173 | ||||||||
Interest-bearing transaction deposits | 455,365 | 432,479 | 405,980 | 448,039 | ||||||||||||
Savings and MMDA's | 452,696 | 426,026 | ||||||||||||||
Savings and MMDA’s | 444,646 | 459,307 | ||||||||||||||
Time, $250,000 or less | 35,328 | 38,388 | 106,241 | 35,115 | ||||||||||||
Time, over $250,000 | 10,179 | 10,997 | 18,857 | 9,240 | ||||||||||||
Total deposits | 1,799,605 | 1,728,302 | 1,746,344 | 1,726,874 | ||||||||||||
Interest payable and other liabilities | 19,748 | 19,874 | 19,498 | 19,447 | ||||||||||||
Total Liabilities | 1,819,353 | 1,748,176 | 1,765,842 | 1,746,321 | ||||||||||||
Commitments and contingencies (Note 7) | ||||||||||||||||
Stockholders' Equity: | ||||||||||||||||
Common stock, no par value; 16,000,000 shares authorized; 13,922,049 shares issued and outstanding at September 30, 2022 and 13,848,904 shares issued and outstanding at December 31, 2021 | 110,557 | 109,793 | ||||||||||||||
Stockholders’ Equity: | ||||||||||||||||
Common stock, no par value; 32,000,000 shares authorized at September 30, 2023, 16,000,000 shares authorized at December 31, 2022; 14,732,351 shares issued and outstanding at September 30, 2023 and 14,652,584 shares issued and outstanding at December 31, 2022 | 116,768 | 116,099 | ||||||||||||||
Additional paid-in capital | 977 | 977 | 977 | 977 | ||||||||||||
Retained earnings | 55,119 | 44,338 | 67,945 | 54,492 | ||||||||||||
Accumulated other comprehensive loss, net | (53,293 | ) | (4,197 | ) | (49,204 | ) | (46,528 | ) | ||||||||
Total Stockholders’ Equity | 113,360 | 150,911 | 136,486 | 125,040 | ||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 1,932,713 | $ | 1,899,087 | $ | 1,902,328 | $ | 1,871,361 |
(in thousands, except per share amounts) | Three months ended September 30, 2022 | Three months ended September 30, 2021 | Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | Three months ended September 30, 2023 | Three months ended September 30, 2022 | Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | ||||||||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||||||||||||||
Loans | $ | 10,857 | $ | 9,905 | $ | 30,979 | $ | 29,616 | $ | 13,098 | $ | 10,857 | $ | 38,197 | $ | 30,979 | ||||||||||||||||
Due from banks interest bearing accounts | 1,118 | 211 | 1,793 | 503 | 2,064 | 1,118 | 6,967 | 1,793 | ||||||||||||||||||||||||
Investment securities | ||||||||||||||||||||||||||||||||
Taxable | 2,122 | 1,635 | 5,783 | 4,612 | 2,685 | 2,122 | 8,041 | 5,783 | ||||||||||||||||||||||||
Non-taxable | 250 | 153 | 634 | 436 | 199 | 250 | 692 | 634 | ||||||||||||||||||||||||
Other earning assets | 137 | 104 | 361 | 289 | 214 | 137 | 557 | 361 | ||||||||||||||||||||||||
Total interest and dividend income | 14,484 | 12,008 | 39,550 | 35,456 | 18,260 | 14,484 | 54,454 | 39,550 | ||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||
Deposits | 271 | 231 | 691 | 686 | 2,386 | 271 | 4,817 | 691 | ||||||||||||||||||||||||
Total interest expense | 271 | 231 | 691 | 686 | 2,386 | 271 | 4,817 | 691 | ||||||||||||||||||||||||
Net interest income | 14,213 | 11,777 | 38,859 | 34,770 | 15,874 | 14,213 | 49,637 | 38,859 | ||||||||||||||||||||||||
Provision (reversal of provision) for loan losses | 300 | (1,800 | ) | 900 | (1,500 | ) | ||||||||||||||||||||||||||
Net interest income after provision for loan losses | 13,913 | 13,577 | 37,959 | 36,270 | ||||||||||||||||||||||||||||
Provision for credit losses | 500 | 300 | 3,100 | 900 | ||||||||||||||||||||||||||||
Net interest income after provision for credit losses | 15,374 | 13,913 | 46,537 | 37,959 | ||||||||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 414 | 437 | 1,308 | 1,203 | 436 | 414 | 1,259 | 1,308 | ||||||||||||||||||||||||
Gains on sales of loans held-for-sale | 27 | 305 | 145 | 1,351 | 62 | 27 | 93 | 145 | ||||||||||||||||||||||||
Investment and brokerage services income | 137 | 174 | 443 | 470 | 136 | 137 | 387 | 443 | ||||||||||||||||||||||||
Mortgage brokerage income | 10 | 53 | 21 | 67 | 11 | 10 | 21 | 21 | ||||||||||||||||||||||||
Loan servicing income | 78 | 78 | 569 | 538 | 79 | 78 | 209 | 569 | ||||||||||||||||||||||||
Debit card income | 635 | 658 | 1,915 | 1,929 | 713 | 635 | 2,094 | 1,915 | ||||||||||||||||||||||||
Losses on sales/calls of available-for-sale securities | — | (20 | ) | (152 | ) | (221 | ) | — | — | (64 | ) | (152 | ) | |||||||||||||||||||
Gain on bargain purchase | — | — | 1,405 | — | ||||||||||||||||||||||||||||
Other income | 769 | 223 | 1,231 | 645 | 339 | 769 | 751 | 1,231 | ||||||||||||||||||||||||
Total non-interest income | 2,070 | 1,908 | 5,480 | 5,982 | 1,776 | 2,070 | 6,155 | 5,480 | ||||||||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 6,164 | 5,995 | 17,578 | 17,223 | 6,377 | 6,164 | 19,653 | 17,578 | ||||||||||||||||||||||||
Occupancy and equipment | 896 | 841 | 2,645 | 2,547 | 1,064 | 896 | 3,138 | 2,645 | ||||||||||||||||||||||||
Data processing | 912 | 839 | 2,587 | 2,557 | 933 | 912 | 2,949 | 2,587 | ||||||||||||||||||||||||
Stationery and supplies | 75 | 60 | 203 | 193 | 103 | 75 | 272 | 203 | ||||||||||||||||||||||||
Advertising | 99 | 100 | 276 | 250 | 111 | 99 | 322 | 276 | ||||||||||||||||||||||||
Directors’ fees | 60 | 88 | 196 | 210 | 83 | 60 | 234 | 196 | ||||||||||||||||||||||||
Amortization of core deposit intangible | 226 | — | 603 | — | ||||||||||||||||||||||||||||
Other expense | 1,703 | 1,311 | 4,854 | 4,111 | 1,986 | 1,703 | 5,363 | 4,854 | ||||||||||||||||||||||||
Total non-interest expenses | 9,909 | 9,234 | 28,339 | 27,091 | 10,883 | 9,909 | 32,534 | 28,339 | ||||||||||||||||||||||||
Income before provision for income taxes | 6,074 | 6,251 | 15,100 | 15,161 | 6,267 | 6,074 | 20,158 | 15,100 | ||||||||||||||||||||||||
Provision for income taxes | 1,506 | 1,742 | 3,945 | 4,168 | 1,648 | 1,506 | 5,486 | 3,945 | ||||||||||||||||||||||||
Net income | $ | 4,568 | $ | 4,509 | $ | 11,155 | $ | 10,993 | $ | 4,619 | $ | 4,568 | $ | 14,672 | $ | 11,155 | ||||||||||||||||
Basic earnings per common share | $ | 0.33 | $ | 0.32 | $ | 0.81 | $ | 0.78 | $ | 0.32 | $ | 0.32 | $ | 1.01 | $ | 0.77 | ||||||||||||||||
Diluted earnings per common share | $ | 0.33 | $ | 0.32 | $ | 0.80 | $ | 0.77 | $ | 0.32 | $ | 0.31 | $ | 1.01 | $ | 0.77 |
(in thousands) | Three months ended September 30, 2022 | Three months ended September 30, 2021 | Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | Three months ended September 30, 2023 | Three months ended September 30, 2022 | Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | ||||||||||||||||||||||||
Net income | $ | 4,568 | $ | 4,509 | $ | 11,155 | $ | 10,993 | $ | 4,619 | $ | 4,568 | $ | 14,672 | $ | 11,155 | ||||||||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||||||||||
Unrealized holding losses arising during the period, net of tax effect of $(7,461) and $(463) for the three months ended September 30, 2022 and September 30, 2021, respectively, and $(19,850) and $(2,145) for the nine months ended September 30, 2022 and September 30, 2021, respectively | (18,492 | ) | (1,147 | ) | (49,204 | ) | (5,316 | ) | ||||||||||||||||||||||||
Less: reclassification adjustment due to losses realized on sales of securities, net of tax effect of $— and $6 for the three months ended September 30, 2022 and September 30, 2021, respectively, and $44 and $64 for the nine months ended September 30, 2022 and September 30, 2021, respectively | — | 14 | 108 | 157 | ||||||||||||||||||||||||||||
Unrealized holding losses arising during the period, net of tax effect of $(2,097) and $(7,461) for the three months ended September 30, 2023 and September 30, 2022, respectively, and $(1,145) and $(19,850) for the nine months ended September 30, 2023 and September 30, 2022, respectively | (4,999 | ) | (18,492 | ) | (2,721 | ) | (49,204 | ) | ||||||||||||||||||||||||
Less: reclassification adjustment due to losses realized on sales of securities, net of tax effect of $0 for each of the three months ended September 30, 2023 and September 30, 2022, and $19 and $44 for the nine months ended September 30, 2023 and September 30, 2022, respectively | — | — | 45 | 108 | ||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | $ | (18,492 | ) | $ | (1,133 | ) | $ | (49,096 | ) | $ | (5,159 | ) | $ | (4,999 | ) | $ | (18,492 | ) | $ | (2,676 | ) | $ | (49,096 | ) | ||||||||
Comprehensive income (loss) | $ | (13,924 | ) | $ | 3,376 | $ | (37,941 | ) | $ | 5,834 | ||||||||||||||||||||||
Comprehensive (loss) income | $ | (380 | ) | $ | (13,924 | ) | $ | 11,996 | $ | (37,941 | ) |
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive Income (Loss), | Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | |||||||||||||||||||||||||||||||||||||||||
Shares | Amounts | Capital | Earnings | net of tax | Total | Shares | Amounts | Capital | Earnings | Loss, net of tax | Total | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 13,634,463 | $ | 107,527 | $ | 977 | $ | 37,115 | $ | 5,038 | $ | 150,657 | |||||||||||||||||||||||||||||||||||||
Net income | 3,178 | 3,178 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | (4,172 | ) | (4,172 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Stock dividend adjustment | 1,282 | 329 | (329 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Cash in lieu of fractional shares | (168 | ) | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 144 | 144 | ||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued related to restricted stock grants | 38,400 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised, net | 6,108 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 13,680,085 | $ | 108,000 | $ | 977 | $ | 39,956 | $ | 866 | $ | 149,799 | |||||||||||||||||||||||||||||||||||||
Net income | 3,306 | 3,306 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | 146 | 146 | ||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 148 | 148 | ||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued related to restricted stock grants | 3,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Stock repurchase and retirement | (82,549 | ) | (925 | ) | (925 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 13,600,536 | $ | 107,223 | $ | 977 | $ | 43,262 | $ | 1,012 | $ | 152,474 | |||||||||||||||||||||||||||||||||||||
Net income | 4,509 | 4,509 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | (1,133 | ) | (1,133 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 148 | 148 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock forfeited | (468 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Stock repurchase and retirement | (132,334 | ) | (1,454 | ) | (1,454 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 13,467,734 | $ | 105,917 | $ | 977 | $ | 47,771 | $ | (121 | ) | $ | 154,544 | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 13,848,904 | $ | 109,793 | $ | 977 | $ | 44,338 | $ | (4,197 | ) | $ | 150,911 | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 13,848,904 | $ | 109,793 | $ | 977 | $ | 44,338 | $ | (4,197 | ) | $ | 150,911 | ||||||||||||||||||||||||||||||||||||
Net income | 3,041 | 3,041 | 3,041 | 3,041 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | (19,963 | ) | (19,963 | ) | (19,963 | ) | (19,963 | ) | ||||||||||||||||||||||||||||||||||||||||
Stock dividend adjustment | 3,276 | 366 | (366 | ) | — | 3,276 | 366 | (366 | ) | — | ||||||||||||||||||||||||||||||||||||||
Cash in lieu of fractional shares | (161 | ) | (8 | ) | (8 | ) | (161 | ) | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | 164 | 164 | 164 | 164 | ||||||||||||||||||||||||||||||||||||||||||||
Common shares issued related to restricted stock grants | 67,596 | — | — | 67,596 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock options exercised, net | 11,615 | — | — | 11,615 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock repurchase and retirement | (1,401 | ) | (15 | ) | (15 | ) | (1,401 | ) | (15 | ) | (15 | ) | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 13,929,829 | $ | 110,308 | $ | 977 | $ | 47,005 | $ | (24,160 | ) | $ | 134,130 | 13,929,829 | $ | 110,308 | $ | 977 | $ | 47,005 | $ | (24,160 | ) | $ | 134,130 | ||||||||||||||||||||||||
Net income | 3,546 | 3,546 | 3,546 | 3,546 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | (10,641 | ) | (10,641 | ) | (10,641 | ) | (10,641 | ) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 168 | 168 | 168 | 168 | ||||||||||||||||||||||||||||||||||||||||||||
Common shares issued related to restricted stock grants | 1,500 | — | — | 1,500 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock repurchase and retirement | (7,280 | ) | (69 | ) | (69 | ) | (7,280 | ) | (69 | ) | (69 | ) | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 13,924,049 | $ | 110,407 | $ | 977 | $ | 50,551 | $ | (34,801 | ) | $ | 127,134 | 13,924,049 | $ | 110,407 | $ | 977 | $ | 50,551 | $ | (34,801 | ) | $ | 127,134 | ||||||||||||||||||||||||
Net income | 4,568 | 4,568 | 4,568 | 4,568 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | (18,492 | ) | (18,492 | ) | (18,492 | ) | (18,492 | ) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 168 | 168 | 168 | 168 | ||||||||||||||||||||||||||||||||||||||||||||
Stock repurchase and retirement | (2,000 | ) | (18 | ) | (18 | ) | (2,000 | ) | (18 | ) | (18 | ) | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | 13,922,049 | $ | 110,557 | $ | 977 | $ | 55,119 | $ | (53,293 | ) | $ | 113,360 | 13,922,049 | $ | 110,557 | $ | 977 | $ | 55,119 | $ | (53,293 | ) | $ | 113,360 | ||||||||||||||||||||||||
Balance at December 31, 2022 | 14,652,584 | $ | 116,099 | $ | 977 | $ | 54,492 | $ | (46,528 | ) | $ | 125,040 | ||||||||||||||||||||||||||||||||||||
Cumulative change from adoption of ASU 2016-13 on January 1, 2023 | (916 | ) | (916 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 (as adjusted for adoption of accounting standard) | 14,652,584 | 116,099 | 977 | 53,576 | (46,528 | ) | 124,124 | |||||||||||||||||||||||||||||||||||||||||
Net income | 5,489 | 5,489 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | 6,013 | 6,013 | ||||||||||||||||||||||||||||||||||||||||||||||
Stock dividend adjustment | 3,525 | 296 | (296 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Cash in lieu of fractional shares | (164 | ) | (7 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 192 | 192 | ||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued related to restricted stock grants | 72,242 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised, net of swapped shares | 11,000 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Stock repurchase and retirement | (3,580 | ) | (26 | ) | (26 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 14,735,607 | $ | 116,561 | $ | 977 | $ | 58,762 | $ | (40,515 | ) | $ | 135,785 | ||||||||||||||||||||||||||||||||||||
Net income | 4,564 | 4,564 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | (3,690 | ) | (3,690 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 188 | 188 | ||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued related to restricted stock grants | 1,500 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Stock repurchase and retirement | (16,474 | ) | (117 | ) | (117 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | 14,720,633 | $ | 116,632 | $ | 977 | $ | 63,326 | $ | (44,205 | ) | $ | 136,730 | ||||||||||||||||||||||||||||||||||||
Net income | 4,619 | 4,619 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | (4,999 | ) | (4,999 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 136 | 136 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock cancelled, net of common shares issued related to restricted stock grants | (10,209 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised, net | 21,927 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | 14,732,351 | $ | 116,768 | $ | 977 | $ | 67,945 | $ | (49,204 | ) | $ | 136,486 |
(in thousands) | (in thousands) | |||||||||||||||
Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | |||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||
Net income | $ | 11,155 | $ | 10,993 | $ | 14,672 | $ | 11,155 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 571 | 562 | 730 | 571 | ||||||||||||
Accretion and amortization of investment securities premiums and discounts, net | 3,545 | 3,039 | 1,591 | 3,545 | ||||||||||||
Valuation adjustment on mortgage servicing rights | (276 | ) | 24 | — | (276 | ) | ||||||||||
(Decrease) increase in deferred loan origination fees and costs, net | (2,259 | ) | 49 | |||||||||||||
Provision (reversal of provision) for loan losses | 900 | (1,500 | ) | |||||||||||||
Increase (decrease) in deferred loan origination fees and costs, net | 759 | (2,259 | ) | |||||||||||||
Amortization of core deposit intangible | 603 | — | ||||||||||||||
Provision for credit losses | 3,100 | 900 | ||||||||||||||
Stock-based compensation | 500 | 440 | 516 | 500 | ||||||||||||
Losses on sales/calls of available-for-sale securities | 152 | 221 | 64 | 152 | ||||||||||||
Amortization of operating lease right-of-use asset | 835 | 781 | 806 | 835 | ||||||||||||
Gains on sales of loans held-for-sale | (145 | ) | (1,351 | ) | (93 | ) | (145 | ) | ||||||||
Proceeds from sales of loans held-for-sale | 10,206 | 58,529 | 5,277 | 10,206 | ||||||||||||
Originations of loans held-for-sale | (8,998 | ) | (51,914 | ) | (5,553 | ) | (8,998 | ) | ||||||||
Gain on bargain purchase | (1,405 | ) | — | |||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
(Increase) decrease in interest receivable and other assets | (2,167 | ) | 1,019 | |||||||||||||
Decrease (increase) in interest receivable and other assets | 4,128 | (2,167 | ) | |||||||||||||
Decrease in interest payable and other liabilities | (995 | ) | (1,587 | ) | (196 | ) | (995 | ) | ||||||||
Net cash provided by operating activities | 13,024 | 19,305 | 24,999 | 13,024 | ||||||||||||
Cash Flows From Investing Activities | ||||||||||||||||
Proceeds from calls or maturities of available-for-sale securities | 11,090 | 15,190 | 30,766 | 11,090 | ||||||||||||
Proceeds from sales of available-for-sale securities | 6,349 | 21,917 | 16,987 | 6,349 | ||||||||||||
Principal repayments on available-for-sale securities | 77,635 | 68,753 | 54,864 | 77,635 | ||||||||||||
Purchases of available-for-sale securities | (143,445 | ) | (298,390 | ) | (57,391 | ) | (143,445 | ) | ||||||||
Proceeds from maturities of certificates of deposit | 4,416 | 5,145 | 3,687 | 4,416 | ||||||||||||
Proceeds from sales of certificates of deposit | 493 | — | — | 493 | ||||||||||||
Purchases of certificates of deposit | (2,728 | ) | (1,733 | ) | (3,435 | ) | (2,728 | ) | ||||||||
Net (increase) decrease in loans | (117,173 | ) | 55,576 | |||||||||||||
Net increase in loans | (66,781 | ) | (117,173 | ) | ||||||||||||
Purchases of Federal Home Loan Bank stock and other equity securities, at cost | (2,343 | ) | (617 | ) | (1,078 | ) | (2,343 | ) | ||||||||
Purchases of premises and equipment | (37 | ) | (803 | ) | (1,045 | ) | (37 | ) | ||||||||
Net cash used in investing activities | (165,743 | ) | (134,962 | ) | ||||||||||||
Cash and cash equivalents acquired in acquisition | 103,425 | — | ||||||||||||||
Net cash provided by (used in) investing activities | 79,999 | (165,743 | ) | |||||||||||||
Cash Flows From Financing Activities | ||||||||||||||||
Net increase in deposits | 71,303 | 271,495 | ||||||||||||||
Principal payments on Federal Home Loan Bank advances | — | (5,000 | ) | |||||||||||||
Net (decrease) increase in deposits | (95,160 | ) | 71,303 | |||||||||||||
Cash dividends paid in lieu of fractional shares | (8 | ) | (8 | ) | (7 | ) | (8 | ) | ||||||||
Repurchases of common stock | (102 | ) | (2,379 | ) | (143 | ) | (102 | ) | ||||||||
Net cash provided by financing activities | 71,193 | 264,108 | ||||||||||||||
Net cash (used in) provided by financing activities | (95,310 | ) | 71,193 | |||||||||||||
Net (decrease) increase in Cash and Cash Equivalents | (81,526 | ) | 148,451 | |||||||||||||
Net increase (decrease) in Cash and Cash Equivalents | 9,688 | (81,526 | ) | |||||||||||||
Cash and Cash Equivalents, beginning of period | 345,929 | 267,177 | 187,417 | 345,929 | ||||||||||||
Cash and Cash Equivalents, end of period | $ | 264,403 | $ | 415,628 | $ | 197,105 | $ | 264,403 | ||||||||
Supplemental Disclosures of Cash Flow Information: | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Interest | $ | 644 | $ | 679 | $ | 3,699 | $ | 644 | ||||||||
Income taxes | $ | 3,810 | $ | 3,270 | — | 3,810 | ||||||||||
Supplemental disclosures of non-cash investing and financing activities: | ||||||||||||||||
Stock dividend distributed | $ | 6,992 | $ | 6,636 | 5,652 | 6,992 | ||||||||||
Unrealized holding losses on available for sale securities, net of taxes | $ | (49,096 | ) | $ | (5,159 | ) | (2,676 | ) | (49,096 | ) | ||||||
Transfer of loans held-for-sale to loans held-for-investment | $ | — | $ | 1,765 | ||||||||||||
Market value of shares tendered in-lieu of cash to pay for exercise of options | $ | 65 | $ | 32 | 361 | 65 | ||||||||||
Recognition of right-of-use assets obtained in exchange for operating lease liabilities | $ | 869 | $ | 285 | 245 | 869 | ||||||||||
Non-cash assets acquired (liabilities assumed) in acquisition: | ||||||||||||||||
Total assets acquired | 12,612 | — | ||||||||||||||
Total liabilities assumed | (115,916 | ) | — |
1. | BASIS OF PRESENTATION |
2. | ACCOUNTING POLICIES |
(in thousands) | Amortized cost | Unrealized gains | Unrealized losses | Estimated fair value | ||||||||||||
Investment securities available-for-sale: | ||||||||||||||||
U.S. Treasury securities | $ | 115,583 | $ | — | $ | (6,385 | ) | $ | 109,198 | |||||||
Securities of U.S. government agencies and corporations | 120,824 | — | (10,457 | ) | 110,367 | |||||||||||
Obligations of states and political subdivisions | 59,263 | 3 | (7,710 | ) | 51,556 | |||||||||||
Collateralized mortgage obligations | 117,695 | — | (19,553 | ) | 98,142 | |||||||||||
Mortgage-backed securities | 267,401 | — | (28,679 | ) | 238,722 | |||||||||||
Total debt securities | $ | 680,766 | $ | 3 | $ | (72,784 | ) | $ | 607,985 |
(in thousands) | Amortized cost | Unrealized gains | Unrealized losses | Estimated fair value | ||||||||||||
Investment securities available-for-sale: | ||||||||||||||||
U.S. Treasury securities | $ | 86,534 | $ | 388 | $ | (711 | ) | $ | 86,211 | |||||||
Securities of U.S. government agencies and corporations | 104,106 | 330 | (1,826 | ) | 102,610 | |||||||||||
Obligations of states and political subdivisions | 44,842 | 1,444 | (301 | ) | 45,985 | |||||||||||
Collateralized mortgage obligations | 137,872 | 665 | (2,885 | ) | 135,652 | |||||||||||
Mortgage-backed securities | 262,738 | 1,971 | (2,954 | ) | 261,755 | |||||||||||
Total debt securities | $ | 636,092 | $ | 4,798 | $ | (8,677 | ) | $ | 632,213 |
(in thousands) | Amortized cost | Estimated fair value | ||||||
Maturity in years: | ||||||||
Due in one year or less | $ | 33,806 | $ | 33,355 | ||||
Due after one year through five years | 188,827 | 175,412 | ||||||
Due after five years through ten years | 39,515 | 34,802 | ||||||
Due after ten years | 33,522 | 27,552 | ||||||
Subtotal | 295,670 | 271,121 | ||||||
Mortgage-backed securities & Collateralized mortgage obligations | 385,096 | 336,864 | ||||||
Total | $ | 680,766 | $ | 607,985 |
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
(in thousands) | Fair Value | Unrealized losses | Fair Value | Unrealized losses | Fair Value | Unrealized losses | ||||||||||||||||||
U.S. Treasury securities | $ | 66,255 | $ | (2,844 | ) | $ | 42,943 | $ | (3,541 | ) | $ | 109,198 | $ | (6,385 | ) | |||||||||
Securities of U.S. government agencies and corporations | 43,768 | (1,913 | ) | 62,099 | (8,544 | ) | 105,867 | (10,457 | ) | |||||||||||||||
Obligations of states and political subdivisions | 42,252 | (5,103 | ) | 7,598 | (2,607 | ) | 49,850 | (7,710 | ) | |||||||||||||||
Collateralized mortgage obligations | 44,515 | (5,086 | ) | 51,469 | (14,467 | ) | 95,984 | (19,553 | ) | |||||||||||||||
Mortgage-backed securities | 127,156 | (11,660 | ) | 105,959 | (17,019 | ) | 233,115 | (28,679 | ) | |||||||||||||||
Total | $ | 323,946 | $ | (26,606 | ) | $ | 270,068 | $ | (46,178 | ) | $ | 594,014 | $ | (72,784 | ) |
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
(in thousands) | Fair Value | Unrealized losses | Fair Value | Unrealized losses | Fair Value | Unrealized losses | ||||||||||||||||||
U.S. Treasury Securities | $ | 63,254 | $ | (673 | ) | $ | 2,066 | $ | (38 | ) | $ | 65,320 | $ | (711 | ) | |||||||||
Securities of U.S. government agencies and corporations | 48,288 | (942 | ) | 30,158 | (884 | ) | 78,446 | (1,826 | ) | |||||||||||||||
Obligations of states and political subdivisions | 11,680 | (233 | ) | 934 | (68 | ) | 12,614 | (301 | ) | |||||||||||||||
Collateralized Mortgage obligations | 90,299 | (2,850 | ) | 1,298 | (35 | ) | 91,597 | (2,885 | ) | |||||||||||||||
Mortgage-backed securities | 175,943 | (2,816 | ) | 6,997 | (138 | ) | 182,940 | (2,954 | ) | |||||||||||||||
Total | $ | 389,464 | $ | (7,514 | ) | $ | 41,453 | $ | (1,163 | ) | $ | 430,917 | $ | (8,677 | ) |
($ in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Commercial | $ | 107,958 | $ | 135,894 | ||||
Commercial Real Estate | 646,365 | 526,924 | ||||||
Agriculture | 118,929 | 107,183 | ||||||
Residential Mortgage | 88,765 | 76,160 | ||||||
Residential Construction | 7,407 | 4,482 | ||||||
Consumer | 15,569 | 17,258 | ||||||
984,993 | 867,901 | |||||||
Allowance for loan losses | (14,771 | ) | (13,952 | ) | ||||
Net deferred origination fees and costs | 1,027 | (1,232 | ) | |||||
Loans, net | $ | 971,249 | $ | 852,717 |
3. | INVESTMENT SECURITIES |
(in thousands) | Amortized cost | Unrealized gains | Unrealized losses | Estimated fair value | ||||||||||||
Investment securities available-for-sale: | ||||||||||||||||
U.S. Treasury securities | $ | 101,564 | $ | 1 | $ | (4,587 | ) | $ | 96,978 | |||||||
Securities of U.S. government agencies and corporations | 123,822 | — | (8,858 | ) | 114,964 | |||||||||||
Obligations of states and political subdivisions | 51,386 | 1 | (6,903 | ) | 44,484 | |||||||||||
Collateralized mortgage obligations | 112,079 | 1 | (20,780 | ) | 91,300 | |||||||||||
Mortgage-backed securities | 248,052 | 1 | (28,370 | ) | 219,683 | |||||||||||
Total debt securities | $ | 636,903 | $ | 4 | $ | (69,498 | ) | $ | 567,409 |
(in thousands) | Amortized cost | Unrealized gains | Unrealized losses | Estimated fair value | ||||||||||||
Investment securities available-for-sale: | ||||||||||||||||
U.S. Treasury securities | $ | 119,644 | $ | 13 | $ | (5,842 | ) | $ | 113,815 | |||||||
Securities of U.S. government agencies and corporations | 128,697 | 20 | (9,806 | ) | 118,911 | |||||||||||
Obligations of states and political subdivisions | 58,955 | 13 | (5,642 | ) | 53,326 | |||||||||||
Collateralized mortgage obligations | 114,983 | — | (19,633 | ) | 95,350 | |||||||||||
Mortgage-backed securities | 261,505 | 56 | (24,871 | ) | 236,690 | |||||||||||
Total debt securities | $ | 683,784 | $ | 102 | $ | (65,794 | ) | $ | 618,092 |
(in thousands) | Amortized cost | Estimated fair value | ||||||
Maturity in years: | ||||||||
Due in one year or less | $ | 89,660 | $ | 87,943 | ||||
Due after one year through five years | 135,601 | 125,056 | ||||||
Due after five years through ten years | 24,901 | 21,549 | ||||||
Due after ten years | 26,610 | 21,878 | ||||||
Subtotal | 276,772 | 256,426 | ||||||
Mortgage-backed securities & Collateralized mortgage obligations | 360,131 | 310,983 | ||||||
Total | $ | 636,903 | $ | 567,409 |
(in thousands) | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Fair Value | Unrealized losses | Fair Value | Unrealized losses | Fair Value | Unrealized losses | |||||||||||||||||||
U.S. Treasury securities | $ | 10,775 | $ | (53 | ) | $ | 83,726 | $ | (4,534 | ) | $ | 94,501 | $ | (4,587 | ) | |||||||||
Securities of U.S. government agencies and corporations | 17,526 | (183 | ) | 97,438 | (8,675 | ) | 114,964 | (8,858 | ) | |||||||||||||||
Obligations of states and political subdivisions | 9,900 | (430 | ) | 34,011 | (6,473 | ) | 43,911 | (6,903 | ) | |||||||||||||||
Collateralized mortgage obligations | 11,689 | (244 | ) | 77,729 | (20,536 | ) | 89,418 | (20,780 | ) | |||||||||||||||
Mortgage-backed securities | 31,322 | (1,081 | ) | 185,973 | (27,289 | ) | 217,295 | (28,370 | ) | |||||||||||||||
Total | $ | 81,212 | $ | (1,991 | ) | $ | 478,877 | $ | (67,507 | ) | $ | 560,089 | $ | (69,498 | ) |
(in thousands) | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Fair Value | Unrealized losses | Fair Value | Unrealized losses | Fair Value | Unrealized losses | |||||||||||||||||||
U.S. Treasury Securities | $ | 54,574 | $ | (1,680 | ) | $ | 56,872 | $ | (4,162 | ) | $ | 111,446 | $ | (5,842 | ) | |||||||||
Securities of U.S. government agencies and corporations | 45,261 | (1,341 | ) | 69,635 | (8,465 | ) | 114,896 | (9,806 | ) | |||||||||||||||
Obligations of states and political subdivisions | 40,479 | (3,022 | ) | 10,049 | (2,620 | ) | 50,528 | (5,642 | ) | |||||||||||||||
Collateralized Mortgage obligations | 36,040 | (2,586 | ) | 59,310 | (17,047 | ) | 95,350 | (19,633 | ) | |||||||||||||||
Mortgage-backed securities | 99,250 | (6,131 | ) | 131,951 | (18,740 | ) | 231,201 | (24,871 | ) | |||||||||||||||
Total | $ | 275,604 | $ | (14,760 | ) | $ | 327,817 | $ | (51,034 | ) | $ | 603,421 | $ | (65,794 | ) |
4. | LOANS AND ALLOWANCE FOR CREDIT LOSSES |
($ in thousands) | September 30, 2023 | December 31, 2022 | ||||||
Commercial | $ | 93,753 | $ | 106,771 | ||||
Commercial Real Estate | 718,847 | 645,166 | ||||||
Agriculture | 109,942 | 114,040 | ||||||
Residential Mortgage | 101,755 | 92,669 | ||||||
Residential Construction | 14,021 | 10,167 | ||||||
Consumer | 14,826 | 15,287 | ||||||
1,053,144 | 984,100 | |||||||
Allowance for credit losses | (16,149 | ) | (14,792 | ) | ||||
Deferred origination fees and costs, net | 71 | 830 | ||||||
Loans, net | $ | 1,037,066 | $ | 970,138 |
Allowance for credit losses – Three months ended September 30, 2023 | ||||||||||||||||||||
($ in thousands) | Beginning balance | Charge-offs | Recoveries | Provision (recovery) | Ending Balance | |||||||||||||||
Commercial | $ | 1,775 | $ | (91 | ) | $ | 20 | $ | 32 | $ | 1,736 | |||||||||
Commercial Real Estate | 10,050 | — | — | 526 | 10,576 | |||||||||||||||
Agriculture | 939 | — | — | 80 | 1,019 | |||||||||||||||
Residential Mortgage | 1,824 | — | — | 79 | 1,903 | |||||||||||||||
Residential Construction | 487 | — | — | (155 | ) | 332 | ||||||||||||||
Consumer | 367 | (9 | ) | — | 4 | 362 | ||||||||||||||
Unallocated | 137 | — | — | 84 | 221 | |||||||||||||||
Allowance for credit losses on loans | 15,579 | (100 | ) | 20 | 650 | 16,149 | ||||||||||||||
Reserve for unfunded commitments | 1,200 | — | — | (150 | ) | 1,050 | ||||||||||||||
Total | $ | 16,779 | $ | (100 | ) | $ | 20 | $ | 500 | $ | 17,199 |
Allowance for credit losses – Nine months ended September 30, 2023 | ||||||||||||||||||||||||
($ in thousands) | Beginning balance | Adoption of CECL | Charge-offs | Recoveries | Provision (recovery) | Ending Balance | ||||||||||||||||||
Commercial | $ | 1,463 | $ | 623 | $ | (269 | ) | $ | 155 | $ | (236 | ) | $ | 1,736 | ||||||||||
Commercial Real Estate | 10,073 | (464 | ) | — | — | 967 | 10,576 | |||||||||||||||||
Agriculture | 1,757 | (671 | ) | (2,567 | ) | — | 2,500 | 1,019 | ||||||||||||||||
Residential Mortgage | 880 | 834 | (3 | ) | — | 192 | 1,903 | |||||||||||||||||
Residential Construction | 178 | 200 | — | — | (46 | ) | 332 | |||||||||||||||||
Consumer | 173 | 201 | (10 | ) | 1 | (3 | ) | 362 | ||||||||||||||||
Unallocated | 268 | 77 | — | — | (124 | ) | 221 | |||||||||||||||||
Allowance for credit losses on loans | 14,792 | 800 | (2,849 | ) | 156 | 3,250 | 16,149 | |||||||||||||||||
Reserve for unfunded commitments | 700 | 500 | — | — | (150 | ) | 1,050 | |||||||||||||||||
Total | $ | 15,492 | $ | 1,300 | $ | (2,849 | ) | $ | 156 | $ | 3,100 | $ | 17,199 |
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
($ in thousands) | Commercial | Commercial Real Estate | Agriculture | Residential Mortgage | Residential Construction | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | 1,650 | $ | 9,571 | $ | 1,694 | $ | 802 | $ | 151 | $ | 179 | $ | 228 | $ | 14,275 | ||||||||||||||||
Provision for (reversal of) loan losses | (385 | ) | 566 | 128 | 45 | (21 | ) | 26 | (59 | ) | 300 | |||||||||||||||||||||
Charge-offs | — | — | — | — | — | (30 | ) | — | (30 | ) | ||||||||||||||||||||||
Recoveries | 225 | — | — | — | — | 1 | — | 226 | ||||||||||||||||||||||||
Net (charge-offs)/recoveries | 225 | — | — | — | — | (29 | ) | — | 196 | |||||||||||||||||||||||
Balance as of September 30, 2022 | $ | 1,490 | $ | 10,137 | $ | 1,822 | $ | 847 | $ | 130 | $ | 176 | $ | 169 | $ | 14,771 |
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
($ in thousands) | Commercial | Commercial Real Estate | Agriculture | Residential Mortgage | Residential Construction | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | 1,604 | $ | 8,808 | $ | 1,482 | $ | 742 | $ | 74 | $ | 167 | $ | 1,075 | $ | 13,952 | ||||||||||||||||
Provision for (reversal of) loan losses | (66 | ) | 1,329 | 340 | 105 | 56 | 42 | (906 | ) | 900 | ||||||||||||||||||||||
Charge-offs | (297 | ) | — | — | — | — | (39 | ) | — | (336 | ) | |||||||||||||||||||||
Recoveries | 249 | — | — | — | — | 6 | — | 255 | ||||||||||||||||||||||||
Net (charge-offs)/recoveries | (48 | ) | — | — | — | — | (33 | ) | — | (81 | ) | |||||||||||||||||||||
Balance as of September 30, 2022 | $ | 1,490 | $ | 10,137 | $ | 1,822 | $ | 847 | $ | 130 | $ | 176 | $ | 169 | $ | 14,771 |
September 30, 2023 | ||||||||||||||||||||||||||||||||
($ in thousands) | Secured by 1-4 Family Residential Properties-1st lien | Secured by 1-4 Family Residential Properties-junior lien | Secured by 1-4 Family Residential Properties- revolving | Commercial | Construction and land development | Secured by farmland | Agriculture production loans | Total | ||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture | — | — | — | — | — | 1,008 | 4,012 | 5,020 | ||||||||||||||||||||||||
Residential Mortgage | 400 | — | — | — | — | — | — | 400 | ||||||||||||||||||||||||
Residential Construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Consumer | — | 372 | 327 | — | — | — | — | 699 | ||||||||||||||||||||||||
Total | $ | 400 | $ | 372 | $ | 327 | $ | — | $ | — | $ | 1,008 | $ | 4,012 | $ | 6,119 |
December 31, 2022 | ||||||||||||||||||||||||||||||||
($ in thousands) | Secured by 1-4 Family Residential Properties-1st lien | Secured by 1-4 Family Residential Properties-junior lien | Secured by 1-4 Family Residential Properties- revolving | Commercial | Construction and land development | Secured by farmland | Agriculture production loans | Total | ||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture | — | — | — | — | — | 1,148 | 6,268 | 7,416 | ||||||||||||||||||||||||
Residential Mortgage | 123 | — | — | — | — | — | — | 123 | ||||||||||||||||||||||||
Residential Construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Consumer | — | — | 637 | — | — | — | — | 637 | ||||||||||||||||||||||||
Total | $ | 123 | $ | — | $ | 637 | $ | — | $ | — | $ | 1,148 | $ | 6,268 | $ | 8,176 |
($ in thousands) | 30-59 days Past Due & Accruing | 60-89 days Past Due & Accruing | 90 days or More Past Due & Accruing | Nonaccrual Loans | Total Past Due & Nonaccrual Loans | Current & Accruing Loans | Total Loans | Nonaccrual loans with No ACL | ||||||||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||||||||||||||
Commercial | $ | 7 | $ | 47 | $ | — | $ | — | $ | 54 | $ | 93,699 | $ | 93,753 | $ | — | ||||||||||||||||
Commercial Real Estate | 1,910 | 1,956 | — | — | 3,866 | 714,981 | 718,847 | — | ||||||||||||||||||||||||
Agriculture | — | — | — | 5,020 | 5,020 | 104,922 | 109,942 | 5,020 | ||||||||||||||||||||||||
Residential Mortgage | 636 | — | — | 400 | 1,036 | 100,719 | 101,755 | 400 | ||||||||||||||||||||||||
Residential Construction | 3,420 | — | — | — | 3,420 | 10,601 | 14,021 | — | ||||||||||||||||||||||||
Consumer | 45 | — | — | 699 | 744 | 14,082 | 14,826 | 699 | ||||||||||||||||||||||||
Total | $ | 6,018 | $ | 2,003 | $ | — | $ | 6,119 | $ | 14,140 | $ | 1,039,004 | $ | 1,053,144 | $ | 6,119 | ||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
Commercial | $ | 41 | $ | — | $ | 403 | $ | — | $ | 444 | $ | 106,327 | $ | 106,771 | $ | — | ||||||||||||||||
Commercial Real Estate | — | — | — | — | — | 645,166 | 645,166 | — | ||||||||||||||||||||||||
Agriculture | — | — | — | 7,416 | 7,416 | 106,624 | 114,040 | 7,416 | ||||||||||||||||||||||||
Residential Mortgage | — | — | — | 123 | 123 | 92,546 | 92,669 | 123 | ||||||||||||||||||||||||
Residential Construction | — | — | — | — | — | 10,167 | 10,167 | — | ||||||||||||||||||||||||
Consumer | — | — | — | 637 | 637 | 14,650 | 15,287 | 637 | ||||||||||||||||||||||||
Total | $ | 41 | $ | — | $ | 403 | $ | 8,176 | $ | 8,620 | $ | 975,480 | $ | 984,100 | $ | 8,176 |
($ in thousands) | Current & Accruing | 30-59 Days Past Due & Accruing | 60-89 Days Past Due & Accruing | 90 Days or More Past Due & Accruing | Nonaccrual | Total Loans | ||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||
Commercial | $ | 106,987 | $ | 164 | $ | 404 | $ | 403 | $ | — | $ | 107,958 | ||||||||||||
Commercial Real Estate | 646,365 | — | — | — | — | 646,365 | ||||||||||||||||||
Agriculture | 111,304 | — | — | — | 7,625 | 118,929 | ||||||||||||||||||
Residential Mortgage | 88,520 | 78 | 41 | — | 126 | 88,765 | ||||||||||||||||||
Residential Construction | 7,260 | 147 | — | — | — | 7,407 | ||||||||||||||||||
Consumer | 14,846 | — | — | — | 723 | 15,569 | ||||||||||||||||||
Total | $ | 975,282 | $ | 389 | $ | 445 | $ | 403 | $ | 8,474 | $ | 984,993 | ||||||||||||
December 31, 2021 | ||||||||||||||||||||||||
Commercial | $ | 134,890 | $ | 394 | $ | 477 | $ | — | $ | 133 | $ | 135,894 | ||||||||||||
Commercial Real Estate | 526,337 | 32 | — | — | 555 | 526,924 | ||||||||||||||||||
Agriculture | 98,471 | — | — | — | 8,712 | 107,183 | ||||||||||||||||||
Residential Mortgage | 75,861 | 161 | — | — | 138 | 76,160 | ||||||||||||||||||
Residential Construction | 4,482 | — | — | — | — | 4,482 | ||||||||||||||||||
Consumer | 16,523 | — | 76 | — | 659 | 17,258 | ||||||||||||||||||
Total | $ | 856,564 | $ | 587 | $ | 553 | $ | — | $ | 10,197 | $ | 867,901 |
($ in thousands) | Unpaid Contractual Principal Balance | Recorded Investment with No Allowance | Recorded Investment with Allowance | Total Recorded Investment | Related Allowance | |||||||||||||||
September 30, 2022 | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial Real Estate | — | — | — | — | — | |||||||||||||||
Agriculture | 10,127 | 7,625 | — | 7,625 | — | |||||||||||||||
Residential Mortgage | 680 | 126 | 503 | 629 | 76 | |||||||||||||||
Residential Construction | — | — | — | — | — | |||||||||||||||
Consumer | 902 | 723 | 64 | 787 | 4 | |||||||||||||||
Total | $ | 11,709 | $ | 8,474 | $ | 567 | $ | 9,041 | $ | 80 | ||||||||||
December 31, 2021 | ||||||||||||||||||||
Commercial | $ | 142 | $ | 133 | $ | — | $ | 133 | $ | — | ||||||||||
Commercial Real Estate | 555 | 555 | — | 555 | — | |||||||||||||||
Agriculture | 10,680 | 8,712 | — | 8,712 | — | |||||||||||||||
Residential Mortgage | 701 | 138 | 517 | 655 | 81 | |||||||||||||||
Residential Construction | 241 | — | 241 | 241 | 10 | |||||||||||||||
Consumer | 815 | 659 | 64 | 723 | 2 | |||||||||||||||
Total | $ | 13,134 | $ | 10,197 | $ | 822 | $ | 11,019 | $ | 93 |
($ in thousands) | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||
Commercial | $ | 17 | $ | — | $ | 30 | $ | — | ||||||||
Commercial Real Estate | 681 | 19 | 4,297 | 466 | ||||||||||||
Agriculture | 7,855 | — | 9,130 | — | ||||||||||||
Residential Mortgage | 634 | 5 | 666 | 5 | ||||||||||||
Residential Construction | — | — | 248 | 4 | ||||||||||||
Consumer | 741 | 1 | 747 | 3 | ||||||||||||
Total | $ | 9,928 | $ | 25 | $ | 15,118 | $ | 478 |
($ in thousands) | Term Extension | Combination Term Extension and Interest Rate Reduction | Total Class of Financing Receivable | |||||||||
Commercial | $ | — | $ | — | — | |||||||
Commercial Real Estate | — | — | — | |||||||||
Agriculture | — | — | — | |||||||||
Residential Mortgage | — | — | — | |||||||||
Residential Construction | 3,420 | — | 24.39 | % | ||||||||
Consumer | — | — | — | |||||||||
Total | $ | 3,420 | $ | — | 24.39 | % |
($ in thousands) | Term Extension | Combination Term Extension and Interest Rate Reduction | Total Class of Financing Receivable | |||||||||
Commercial | $ | — | $ | 44 | 0.05 | % | ||||||
Commercial Real Estate | — | 398 | 0.06 | % | ||||||||
Agriculture | 4,005 | — | 3.64 | % | ||||||||
Residential Mortgage | — | — | — | |||||||||
Residential Construction | 3,420 | — | 24.39 | % | ||||||||
Consumer | — | — | — | |||||||||
Total | $ | 7,425 | $ | 442 | 28.14 | % |
($ in thousands) | Weighted-Average Interest Rate Reduction | Weighted-Average Term Extension (in months) | ||||||
Commercial | — | $ | — | |||||
Commercial Real Estate | — | — | ||||||
Agriculture | — | — | ||||||
Residential Mortgage | — | — | ||||||
Residential Construction | — | 1 | ||||||
Consumer | — | — | ||||||
Total | — | $ | 1 |
($ in thousands) | Weighted-Average Interest Rate Reduction | Weighted-Average Term Extension (in months) | ||||||
Commercial | 0.50 | % | $ | 38 | ||||
Commercial Real Estate | 0.25 | % | 26 | |||||
Agriculture | — | 4 | ||||||
Residential Mortgage | — | — | ||||||
Residential Construction | — | 1 | ||||||
Consumer | — | — | ||||||
Total | 0.27 | % | $ | 4 |
($ in thousands) | Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||
Commercial | $ | 50 | $ | 2 | $ | 342 | $ | 7 | ||||||||
Commercial Real Estate | 479 | 32 | 5,068 | 466 | ||||||||||||
Agriculture | 8,205 | — | 9,130 | — | ||||||||||||
Residential Mortgage | 643 | 14 | 848 | 18 | ||||||||||||
Residential Construction | 60 | — | 351 | 11 | ||||||||||||
Consumer | 746 | 16 | 750 | 5 | ||||||||||||
Total | $ | 10,183 | $ | 64 | $ | 16,489 | $ | 507 |
($ in thousands) | Nine months ended September 30, 2022 | |||||||||||
Number of Contracts | Pre- modification outstanding recorded investment | Post- modification outstanding recorded investment | ||||||||||
Consumer | 1 | $ | 75 | $ | 75 | |||||||
Total | 1 | $ | 75 | $ | 75 |
($ in thousands) | Nine Months Ended September 30, 2022 | |||||||||||
Number of Contracts | Pre-modification outstanding recorded investment | Post- modification outstanding recorded investment | ||||||||||
Consumer | 1 | $ | 75 | $ | 75 | |||||||
Total | 1 | $ | 75 | $ | 75 |
($ in thousands) | Three Months Ended September 30, 2021 | |||||||||||
Number of Contracts | Pre-modification outstanding recorded investment | Post- modification outstanding recorded investment | ||||||||||
Agriculture | 3 | 9,130 | 9,130 | |||||||||
Consumer | 1 | $ | 494 | $ | 494 | |||||||
Total | 4 | $ | 9,624 | $ | 9,624 |
($ in thousands) | Nine Months Ended September 30, 2021 | |||||||||||
Number of Contracts | Pre-modification outstanding recorded investment | Post- modification outstanding recorded investment | ||||||||||
Agriculture | 3 | 9,130 | 9,130 | |||||||||
Consumer | 2 | $ | 593 | $ | 593 | |||||||
Total | 5 | $ | 9,723 | $ | 9,723 |
(in thousands) | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year - As of September 30, 2023 | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Pass | $ | 7,398 | $ | 18,546 | $ | 22,473 | $ | 5,829 | $ | 7,999 | $ | 6,764 | $ | 20,995 | $ | 90,004 | ||||||||||||||||
Special Mention | — | — | — | 258 | 326 | — | 945 | 1,529 | ||||||||||||||||||||||||
Substandard | 44 | — | 1,576 | 553 | — | — | 47 | 2,220 | ||||||||||||||||||||||||
Doubtful/Loss | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Commercial loans | $ | 7,442 | $ | 18,546 | $ | 24,049 | $ | 6,640 | $ | 8,325 | $ | 6,764 | $ | 21,987 | $ | 93,753 | ||||||||||||||||
Year-to-date Period Charge-offs | — | (146 | ) | (36 | ) | — | (87 | ) | — | — | (269 | ) | ||||||||||||||||||||
Year-to-date Recoveries | — | — | — | — | 87 | 68 | — | 155 | ||||||||||||||||||||||||
Year-to-date Net Charge-offs | — | (146 | ) | (36 | ) | — | — | 68 | — | (114 | ) | |||||||||||||||||||||
Commercial Real Estate | ||||||||||||||||||||||||||||||||
Pass | $ | 98,815 | $ | 171,601 | $ | 197,873 | $ | 50,758 | $ | 52,652 | $ | 121,005 | $ | 6,953 | $ | 699,657 | ||||||||||||||||
Special Mention | — | — | 2,219 | 846 | 2,898 | 1,291 | — | 7,254 | ||||||||||||||||||||||||
Substandard | 398 | — | 1,728 | 2,117 | 6,671 | 1,022 | — | 11,936 | ||||||||||||||||||||||||
Doubtful/Loss | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Commercial Real Estate loans | $ | 99,213 | $ | 171,601 | $ | 201,820 | $ | 53,721 | $ | 62,221 | $ | 123,318 | $ | 6,953 | $ | 718,847 | ||||||||||||||||
Year-to-date Charge-offs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Year-to-date Recoveries | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Year-to-date Net Charge-offs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture | ||||||||||||||||||||||||||||||||
Pass | $ | 6,836 | $ | 21,080 | $ | 23,854 | $ | 8,868 | $ | 4,459 | 11,712 | $ | 27,050 | $ | 103,859 | |||||||||||||||||
Special Mention | — | — | — | — | — | 1,064 | — | 1,064 | ||||||||||||||||||||||||
Substandard | — | — | 1,525 | — | — | — | 3,494 | 5,019 | ||||||||||||||||||||||||
Doubtful/Loss | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Agriculture loans | $ | 6,836 | $ | 21,080 | $ | 25,379 | $ | 8,868 | $ | 4,459 | $ | 12,776 | $ | 30,544 | $ | 109,942 | ||||||||||||||||
Year-to-date Charge-offs | (1,825 | ) | — | — | — | — | — | (742 | ) | (2,567 | ) | |||||||||||||||||||||
Year-to-date Recoveries | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Year-to-date Net Charge-offs | (1,825 | ) | — | — | — | — | — | (742 | ) | (2,567 | ) |
(in thousands) | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year - As of September 30, 2023 | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||
Residential Mortgage | ||||||||||||||||||||||||||||||||
Pass | $ | 14,581 | $ | 23,310 | $ | 26,725 | $ | 15,053 | $ | 6,073 | $ | 15,574 | $ | — | $ | 101,316 | ||||||||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Substandard | — | — | 39 | — | — | 400 | — | 439 | ||||||||||||||||||||||||
Doubtful/Loss | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Residential Mortgage loans | $ | 14,581 | $ | 23,310 | $ | 26,764 | $ | 15,053 | $ | 6,073 | $ | 15,974 | $ | — | $ | 101,755 | ||||||||||||||||
Year-to-date Charge-offs | — | — | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||||
Year-to-date Recoveries | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Year-to-date Net Charge-offs | — | — | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||||
Residential Construction | ||||||||||||||||||||||||||||||||
Pass | $ | 3,086 | $ | 4,521 | $ | 2,994 | $ | — | $ | — | $ | — | $ | — | $ | 10,601 | ||||||||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Substandard | — | 3,420 | — | — | — | — | — | 3,420 | ||||||||||||||||||||||||
Doubtful/Loss | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Residential Construction loans | $ | 3,086 | $ | 7,941 | $ | 2,994 | $ | — | $ | — | $ | — | $ | — | $ | 14,021 | ||||||||||||||||
Year-to-date Charge-offs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Year-to-date Recoveries | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Year-to-date Net Charge-offs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Pass | $ | 357 | $ | 801 | $ | 138 | $ | 172 | $ | 64 | $ | 433 | $ | 12,162 | $ | 14,127 | ||||||||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Substandard | — | — | — | — | — | — | 699 | 699 | ||||||||||||||||||||||||
Doubtful/Loss | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Consumer loans | $ | 357 | $ | 801 | $ | 138 | $ | 172 | $ | 64 | $ | 433 | $ | 12,861 | $ | 14,826 | ||||||||||||||||
Year-to-date Charge-offs | (10 | ) | — | — | — | — | — | — | (10 | ) | ||||||||||||||||||||||
Year-to-date Recoveries | — | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||
Year-to-date Net Charge-offs | (10 | ) | — | — | — | — | 1 | — | (9 | ) | ||||||||||||||||||||||
Total Loans | ||||||||||||||||||||||||||||||||
Pass | $ | 131,073 | $ | 239,859 | $ | 274,057 | $ | 80,680 | $ | 71,247 | $ | 155,488 | $ | 67,160 | $ | 1,019,564 | ||||||||||||||||
Special Mention | — | — | 2,219 | 1,104 | 3,224 | 2,355 | 945 | 9,847 | ||||||||||||||||||||||||
Substandard | 442 | 3,420 | 4,868 | 2,670 | 6,671 | 1,422 | 4,240 | 23,733 | ||||||||||||||||||||||||
Doubtful/Loss | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Loans | $ | 131,515 | $ | 243,279 | $ | 281,144 | $ | 84,454 | $ | 81,142 | $ | 159,265 | $ | 72,345 | $ | 1,053,144 | ||||||||||||||||
Year-to-date Charge-offs | $ | (1,835 | ) | $ | (146 | ) | $ | (36 | ) | $ | — | $ | (87 | ) | $ | (3 | ) | $ | (742 | ) | $ | (2,849 | ) | |||||||||
Year-to-date Recoveries | $ | — | $ | — | $ | — | $ | — | $ | 87 | $ | 69 | $ | — | $ | 156 | ||||||||||||||||
Year-to-date Net Charge-offs | $ | (1,835 | ) | $ | (146 | ) | $ | (36 | ) | $ | — | $ | — | $ | 66 | $ | (742 | ) | $ | (2,693 | ) |
Pass | Special Mention | Substandard | Doubtful | Loss | Total | |||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||
Commercial | $ | 106,643 | $ | — | $ | 128 | $ | — | $ | — | $ | 106,771 | ||||||||||||
Commercial Real Estate | 631,693 | 6,748 | 6,725 | — | — | 645,166 | ||||||||||||||||||
Agriculture | 105,560 | 1,064 | 7,416 | — | — | 114,040 | ||||||||||||||||||
Residential Mortgage | 92,299 | 207 | 163 | — | — | 92,669 | ||||||||||||||||||
Residential Construction | 10,167 | — | — | — | — | 10,167 | ||||||||||||||||||
Consumer | 14,650 | — | 637 | — | — | 15,287 | ||||||||||||||||||
Total | $ | 961,012 | $ | 8,019 | $ | 15,069 | $ | — | $ | — | $ | 984,100 |
($ in thousands) | Pass | Special Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||
Commercial | $ | 105,357 | $ | 2,376 | $ | 225 | $ | — | $ | — | $ | 107,958 | ||||||||||||
Commercial Real Estate | 628,377 | 14,927 | 3,061 | — | — | 646,365 | ||||||||||||||||||
Agriculture | 109,005 | 2,299 | 7,625 | — | — | 118,929 | ||||||||||||||||||
Residential Mortgage | 88,376 | 220 | 169 | — | — | 88,765 | ||||||||||||||||||
Residential Construction | 7,407 | — | — | — | — | 7,407 | ||||||||||||||||||
Consumer | 14,846 | — | 723 | — | — | 15,569 | ||||||||||||||||||
Total | $ | 953,368 | $ | 19,822 | $ | 11,803 | $ | — | $ | — | $ | 984,993 | ||||||||||||
December 31, 2021 | ||||||||||||||||||||||||
Commercial | $ | 132,425 | $ | 2,376 | $ | 1,093 | $ | — | $ | — | $ | 135,894 | ||||||||||||
Commercial Real Estate | 516,120 | 6,524 | 4,280 | — | — | 526,924 | ||||||||||||||||||
Agriculture | 98,471 | — | 8,712 | — | — | 107,183 | ||||||||||||||||||
Residential Mortgage | 76,020 | — | 140 | — | — | 76,160 | ||||||||||||||||||
Residential Construction | 4,482 | — | — | — | — | 4,482 | ||||||||||||||||||
Consumer | 16,599 | — | 659 | — | — | 17,258 | ||||||||||||||||||
Total | $ | 844,117 | $ | 8,900 | $ | 14,884 | $ | — | $ | — | $ | 867,901 |
Three months ended September 30, 2022 | ||||||||||||||||||||||||||||||||
($ in thousands) | Commercial | Commercial Real Estate | Agriculture | Residential Mortgage | Residential Construction | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | 1,650 | $ | 9,571 | $ | 1,694 | $ | 802 | $ | 151 | $ | 179 | $ | 228 | $ | 14,275 | ||||||||||||||||
Provision for loan losses | (385 | ) | 566 | 128 | 45 | (21 | ) | 26 | (59 | ) | 300 | |||||||||||||||||||||
Charge-offs | — | — | — | — | — | (30 | ) | — | (30 | ) | ||||||||||||||||||||||
Recoveries | 225 | — | — | — | — | 1 | — | 226 | ||||||||||||||||||||||||
Net charge-offs | 225 | — | — | — | — | (29 | ) | — | 196 | |||||||||||||||||||||||
Balance as of September 30, 2022 | $ | 1,490 | $ | 10,137 | $ | 1,822 | $ | 847 | $ | 130 | $ | 176 | $ | 169 | $ | 14,771 |
Nine months ended September 30, 2022 | ||||||||||||||||||||||||||||||||
($ in thousands) | Commercial | Commercial Real Estate | Agriculture | Residential Mortgage | Residential Construction | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | 1,604 | $ | 8,808 | $ | 1,482 | $ | 742 | $ | 74 | $ | 167 | $ | 1,075 | $ | 13,952 | ||||||||||||||||
Provision for loan losses | (66 | ) | 1,329 | 340 | 105 | 56 | 42 | (906 | ) | 900 | ||||||||||||||||||||||
Charge-offs | (297 | ) | — | — | — | — | (39 | ) | — | (336 | ) | |||||||||||||||||||||
Recoveries | 249 | — | — | — | — | 6 | — | 255 | ||||||||||||||||||||||||
Net charge-offs | (48 | ) | — | — | — | — | (33 | ) | — | (81 | ) | |||||||||||||||||||||
Balance as of September 30, 2022 | $ | 1,490 | $ | 10,137 | $ | 1,822 | $ | 847 | $ | 130 | $ | 176 | $ | 169 | $ | 14,771 |
($ in thousands) | Commercial | Commercial Real Estate | Agriculture | Residential Mortgage | Residential Construction | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | — | $ | — | $ | 76 | $ | — | $ | 4 | $ | — | $ | 80 | ||||||||||||||||
Loans collectively evaluated for impairment | 1,490 | 10,137 | 1,822 | 771 | 130 | 172 | 169 | 14,691 | ||||||||||||||||||||||||
Ending Balance | $ | 1,490 | $ | 10,137 | $ | 1,822 | $ | 847 | $ | 130 | $ | 176 | $ | 169 | $ | 14,771 |
Three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||
($ in thousands) | Commercial | Commercial Real Estate | Agriculture | Residential Mortgage | Residential Construction | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | 1,555 | $ | 7,338 | $ | 5,259 | $ | 634 | $ | 55 | $ | 186 | $ | 352 | $ | 15,379 | ||||||||||||||||
Provision for loan losses | 119 | 797 | (3,227 | ) | 91 | 26 | (55 | ) | 449 | (1,800 | ) | |||||||||||||||||||||
Charge-offs | (36 | ) | — | — | — | — | (6 | ) | — | (42 | ) | |||||||||||||||||||||
Recoveries | 415 | — | — | — | — | 49 | — | 464 | ||||||||||||||||||||||||
Net charge-offs | 379 | — | — | — | — | 43 | — | 422 | ||||||||||||||||||||||||
Balance as of September 30, 2021 | $ | 2,053 | $ | 8,135 | $ | 2,032 | $ | 725 | $ | 81 | $ | 174 | $ | 801 | $ | 14,001 |
Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||
($ in thousands) | Commercial | Commercial Real Estate | Agriculture | Residential Mortgage | Residential Construction | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 2,252 | $ | 7,915 | $ | 3,834 | $ | 635 | $ | 128 | $ | 214 | $ | 438 | $ | 15,416 | ||||||||||||||||
Provision for loan losses | (239 | ) | 220 | (1,802 | ) | 90 | (47 | ) | (85 | ) | 363 | (1,500 | ) | |||||||||||||||||||
Charge-offs | (383 | ) | — | — | — | — | (12 | ) | — | (395 | ) | |||||||||||||||||||||
Recoveries | 423 | — | — | — | — | 57 | — | 480 | ||||||||||||||||||||||||
Net charge-offs | 40 | — | — | — | — | 45 | — | 85 | ||||||||||||||||||||||||
Balance as of September 30, 2021 | $ | 2,053 | $ | 8,135 | $ | 2,032 | $ | 725 | $ | 81 | $ | 174 | $ | 801 | $ | 14,001 |
($ in thousands) | Commercial | Commercial Real Estate | Agriculture | Residential Mortgage | Residential Construction | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | — | $ | 818 | $ | 82 | $ | 7 | $ | 3 | $ | — | $ | 910 | ||||||||||||||||
Loans collectively evaluated for impairment | 2,053 | 8,135 | 1,214 | 643 | 74 | 171 | 801 | 13,091 | ||||||||||||||||||||||||
Ending Balance | $ | 2,053 | $ | 8,135 | $ | 2,032 | $ | 725 | $ | 81 | $ | 174 | $ | 801 | $ | 14,001 |
($ in thousands) | Commercial | Commercial Real Estate | Agriculture | Residential Mortgage | Residential Construction | Consumer | Total | |||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | — | $ | 7,625 | $ | 629 | $ | — | $ | 787 | $ | 9,041 | ||||||||||||||
Loans collectively evaluated for impairment | 107,958 | 646,365 | 111,304 | 88,136 | 7,407 | 14,782 | 975,952 | |||||||||||||||||||||
Ending Balance | $ | 107,958 | $ | 646,365 | $ | 118,929 | $ | 88,765 | $ | 7,407 | $ | 15,569 | $ | 984,993 | ||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 133 | $ | 555 | $ | 8,712 | $ | 655 | $ | 241 | $ | 723 | $ | 11,019 | ||||||||||||||
Loans collectively evaluated for impairment | 135,761 | 526,369 | 98,471 | 75,505 | 4,241 | 16,535 | 856,882 | |||||||||||||||||||||
Ending Balance | $ | 135,894 | $ | 526,924 | $ | 107,183 | $ | 76,160 | $ | 4,482 | $ | 17,258 | $ | 867,901 |
5. | MORTGAGE OPERATIONS |
September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | |||||||||||||
Constant prepayment rate | 8.18 | % | 15.73 | % | 7.58 | % | 7.55 | % | ||||||||
Discount rate | 9.00 | % | 9.50 | % | 9.50 | % | 9.50 | % | ||||||||
Weighted average life (years) | 6.99 | 4.95 | 7.10 | 7.20 |
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
December 31, 2021 | Additions | Reductions | September 30, 2022 | December 31, 2022 | Additions | Reductions | September 30, 2023 | |||||||||||||||||||||||||
Mortgage servicing rights | $ | 1,807 | $ | 129 | $ | (221 | ) | $ | 1,715 | $ | 1,650 | $ | 35 | $ | (182 | ) | $ | 1,503 | ||||||||||||||
Valuation allowance | (276 | ) | — | 276 | — | — | — | — | — | |||||||||||||||||||||||
Mortgage servicing rights, net of valuation allowance | $ | 1,531 | $ | 129 | $ | 55 | $ | 1,715 | $ | 1,650 | $ | 35 | $ | (182 | ) | $ | 1,503 |
6. | FAIR VALUE MEASUREMENTS |
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
September 30, 2022 | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
September 30, 2023 | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 109,198 | $ | 109,198 | $ | — | $ | — | $ | 96,978 | $ | 96,978 | $ | — | $ | — | ||||||||||||||||
Securities of U.S. government agencies and corporations | 110,367 | — | 110,367 | — | 114,964 | — | 114,964 | — | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 51,556 | — | 51,556 | — | 44,484 | — | 44,484 | — | ||||||||||||||||||||||||
Collateralized mortgage obligations | 98,142 | — | 98,142 | — | 91,300 | — | 91,300 | — | ||||||||||||||||||||||||
Mortgage-backed securities | 238,722 | — | 238,722 | — | 219,683 | — | 219,683 | — | ||||||||||||||||||||||||
Total investments at fair value | $ | 607,985 | $ | 109,198 | $ | 498,787 | $ | — | $ | 567,409 | $ | 96,978 | $ | 470,431 | $ | — |
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
December 31, 2021 | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
December 31, 2022 | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 86,211 | $ | 86,211 | $ | — | $ | — | $ | 113,815 | $ | 113,815 | $ | — | $ | — | ||||||||||||||||
Securities of U.S. government agencies and corporations | 102,610 | — | 102,610 | — | 118,911 | — | 118,911 | — | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 45,985 | — | 45,985 | — | 53,326 | — | 53,326 | — | ||||||||||||||||||||||||
Collateralized mortgage obligations | 135,652 | — | 135,652 | — | 95,350 | — | 95,350 | — | ||||||||||||||||||||||||
Mortgage-backed securities | 261,755 | — | 261,755 | — | 236,690 | — | 236,690 | — | ||||||||||||||||||||||||
Total investments at fair value | $ | 632,213 | $ | 86,211 | $ | 546,002 | $ | — | $ | 618,092 | $ | 113,815 | $ | 504,277 | $ | — |
(in thousands) | ||||||||||||||||
September 30, 2023 | Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Individually evaluated loans | $ | 1,439 | $ | — | $ | — | $ | 1,439 | ||||||||
Total assets at fair value | $ | 1,439 | $ | — | $ | — | $ | 1,439 |
(in thousands) | ||||||||||||||||
December 31, 2021 | Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Impaired loans | $ | 33 | $ | — | $ | — | $ | 33 | ||||||||
Mortgage servicing rights | 1,531 | — | — | 1,531 | ||||||||||||
Total assets at fair value | $ | 1,564 | $ | — | $ | — | $ | 1,564 |
Method | Assumption Inputs | ||
Collateral, market, income, enterprise, liquidation, and discounted cash flows | External appraised values, management assumptions regarding market trends or other relevant factors, selling costs | ||
(in thousands) | September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||
Level | Carrying amount | Fair value | Carrying amount | Fair value | Level | Carrying amount | Fair value | Carrying amount | Fair value | |||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 264,403 | $ | 264,403 | $ | 345,929 | $ | 345,929 | 1 | $ | 197,105 | $ | 197,105 | $ | 187,417 | $ | 187,417 | ||||||||||||||||||||||
Certificates of deposit | 2 | 11,091 | 10,699 | 13,272 | 13,443 | 2 | 20,696 | 20,311 | 20,948 | 20,560 | ||||||||||||||||||||||||||||||
Stock in Federal Home Loan Bank and other equity securities | 3 | 9,440 | 9,440 | 7,097 | 7,097 | 3 | 10,518 | 10,518 | 9,440 | 9,440 | ||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||
Net loans | 3 | 971,249 | 922,116 | 852,717 | 830,967 | 3 | 1,037,066 | 933,513 | 970,138 | 929,163 | ||||||||||||||||||||||||||||||
Loans held-for-sale | 2 | — | — | 1,063 | 1,089 | 2 | 369 | 371 | — | — | ||||||||||||||||||||||||||||||
Interest receivable | 2 | 5,543 | 5,543 | 4,571 | 4,571 | 2 | 7,185 | 7,185 | 5,745 | 5,745 | ||||||||||||||||||||||||||||||
Mortgage servicing rights | 3 | 1,503 | 2,031 | 1,650 | 2,101 | |||||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||
Deposits | 3 | 1,799,605 | 1,423,719 | 1,728,302 | 1,678,658 | |||||||||||||||||||||||||||||||||||
Time deposits | 3 | 125,098 | 124,671 | 44,355 | 43,987 | |||||||||||||||||||||||||||||||||||
Interest payable | 2 | 89 | 89 | 42 | 42 | 2 | 1,211 | 1,211 | 93 | 93 |
7. | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK |
(in thousands) | September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | ||||||||||||
Undisbursed loan commitments | $ | 203,324 | $ | 192,874 | $ | 197,710 | $ | 205,610 | ||||||||
Standby letters of credit | 2,714 | 2,305 | 1,251 | 1,930 | ||||||||||||
Commitments to sell loans | — | 1,500 | 765 | — | ||||||||||||
$ | 206,038 | $ | 196,679 | $ | 199,726 | $ | 207,540 |
8. | STOCK PLANS |
Number of Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | Number of Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | |||||||||||||||||||||||||
Options outstanding at Beginning of Period | 652,255 | $ | 8.83 | 663,678 | $ | 8.56 | ||||||||||||||||||||||||||
Granted | — | — | — | — | ||||||||||||||||||||||||||||
Expired | — | — | — | — | ||||||||||||||||||||||||||||
Cancelled / Forfeited | — | — | — | — | ||||||||||||||||||||||||||||
Exercised | — | — | (51,485 | ) | 5.44 | |||||||||||||||||||||||||||
Options outstanding at End of Period | 652,255 | $ | 8.83 | $ | 488,177 | 5.53 | 612,193 | $ | 8.82 | $ | 523,161 | 4.95 | ||||||||||||||||||||
Exercisable (vested) at End of Period | 488,666 | $ | 8.41 | $ | 488,177 | 4.77 | 526,829 | $ | 8.67 | $ | 523,161 | 4.58 |
Number of Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | Number of Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | |||||||||||||||||||||||||
Options outstanding at Beginning of Period | 627,814 | $ | 8.58 | 684,837 | $ | 8.41 | ||||||||||||||||||||||||||
Granted | 42,965 | 10.25 | — | — | ||||||||||||||||||||||||||||
Expired | — | — | — | — | ||||||||||||||||||||||||||||
Cancelled / Forfeited | — | — | — | — | ||||||||||||||||||||||||||||
Exercised | (18,524 | ) | 3.51 | (72,644 | ) | 4.97 | ||||||||||||||||||||||||||
Options outstanding at End of Period | 652,255 | $ | 8.83 | $ | 488,177 | 5.53 | 612,193 | $ | 8.82 | $ | 523,161 | 4.95 | ||||||||||||||||||||
Exercisable (vested) at End of Period | 488,666 | $ | 8.41 | $ | 488,177 | 4.77 | 526,829 | $ | 8.67 | $ | 523,161 | 4.58 |
Number of Shares | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | Number of Shares | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | |||||||||||||||||||||
Non-vested Restricted stock outstanding at Beginning of Period | 209,725 | $ | 9.99 | 275,473 | $ | 9.17 | ||||||||||||||||||||||
Granted | — | — | 1,000 | 9.55 | ||||||||||||||||||||||||
Cancelled / Forfeited | — | — | (11,209 | ) | 9.46 | |||||||||||||||||||||||
Exercised/Released/Vested | — | — | (2,428 | ) | 9.31 | |||||||||||||||||||||||
Non-vested restricted stock outstanding at End of Period | 209,725 | $ | 9.99 | $ | 1,772,176 | 2.74 | 262,836 | $ | 9.56 | $ | 2,494,314 | 2.76 |
Number of Shares | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | Number of Shares | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | |||||||||||||||||||||
Non-vested Restricted stock outstanding at Beginning of Period | 167,397 | $ | 9.97 | 248,418 | $ | 9.34 | ||||||||||||||||||||||
Granted | 72,473 | 10.31 | 78,351 | 8.51 | ||||||||||||||||||||||||
Cancelled / Forfeited | — | — | (11,209 | ) | 9.46 | |||||||||||||||||||||||
Exercised/Released/Vested | (30,145 | ) | 10.68 | (52,724 | ) | 8.98 | ||||||||||||||||||||||
Non-vested restricted stock outstanding at End of Period | 209,725 | $ | 9.99 | $ | 1,772,176 | 2.74 | 262,836 | $ | 9.56 | $ | 2,494,314 | 2.76 |
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||
Risk Free Interest Rate | 0.21 | % | 0.21 | % | 4.75 | % | 4.75 | % | ||||||||
Expected Dividend Yield | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
Expected Life in Years | 1.00 | 1.00 | 1.00 | 1.00 | ||||||||||||
Expected Price Volatility | 25.73 | % | 25.73 | % | 16.58 | % | 16.58 | % |
9. | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
(in thousands) | Unrealized losses on securities | Officers’ retirement plan | Directors’ retirement plan | Accumulated other comprehensive loss | ||||||||||||
Balance as of June 30, 2023 | $ | (43,950 | ) | $ | (308 | ) | $ | 53 | $ | (44,205 | ) | |||||
Current period other comprehensive loss | (4,999 | ) | — | — | (4,999 | ) | ||||||||||
Balance as of September 30, 2023 | $ | (48,949 | ) | $ | (308 | ) | $ | 53 | $ | (49,204 | ) |
(in thousands) | Unrealized losses on securities | Officers’ retirement plan | Directors’ retirement plan | Accumulated other comprehensive loss | ||||||||||||
Balance as of December 31, 2022 | $ | (46,273 | ) | $ | (308 | ) | $ | 53 | $ | (46,528 | ) | |||||
Current period other comprehensive income | (2,676 | ) | — | — | (2,676 | ) | ||||||||||
Balance as of September 30, 2023 | $ | (48,949 | ) | $ | (308 | ) | $ | 53 | $ | (49,204 | ) |
(in thousands) | Unrealized losses on securities | Officers’ retirement plan | Directors’ retirement plan | Accumulated other comprehensive loss | Unrealized gains on securities | Officers’ retirement plan | Directors’ retirement plan | Accumulated other comprehensive loss | ||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | (33,368 | ) | $ | (1,420 | ) | $ | (13 | ) | $ | (34,801 | ) | $ | (33,368 | ) | $ | (1,420 | ) | $ | (13 | ) | $ | (34,801 | ) | ||||||||
Current period other comprehensive loss | (18,492 | ) | — | — | (18,492 | ) | (18,492 | ) | — | — | (18,492 | ) | ||||||||||||||||||||
Balance as of September 30, 2022 | $ | (51,860 | ) | $ | (1,420 | ) | $ | (13 | ) | $ | (53,293 | ) | $ | (51,860 | ) | $ | (1,420 | ) | $ | (13 | ) | $ | (53,293 | ) |
(in thousands) | Unrealized losses on securities | Officers’ retirement plan | Directors’ retirement plan | Accumulated other comprehensive loss | ||||||||||||
Balance as of December 31, 2021 | $ | (2,764 | ) | $ | (1,420 | ) | $ | (13 | ) | $ | (4,197 | ) | ||||
Current period other comprehensive loss | (49,096 | ) | — | — | (49,096 | ) | ||||||||||
Balance as of September 30, 2022 | $ | (51,860 | ) | $ | (1,420 | ) | $ | (13 | ) | $ | (53,293 | ) |
(in thousands) | Unrealized gains on securities | Officers’ retirement plan | Directors’ retirement plan | Accumulated other comprehensive loss | ||||||||||||
Balance as of June 30, 2021 | $ | 3,170 | $ | (2,105 | ) | $ | (53 | ) | $ | 1,012 | ||||||
Current period other comprehensive loss | (1,133 | ) | — | — | (1,133 | ) | ||||||||||
Balance as of September 30, 2021 | $ | 2,037 | $ | (2,105 | ) | $ | (53 | ) | $ | (121 | ) |
(in thousands) | Unrealized gains on securities | Officers’ retirement plan | Directors’ retirement plan | Accumulated other comprehensive loss | Unrealized gains on securities | Officers’ retirement plan | Directors’ retirement plan | Accumulated other comprehensive loss | ||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 7,196 | $ | (2,105 | ) | $ | (53 | ) | $ | 5,038 | ||||||||||||||||||||||
Balance as of December 31, 2021 | $ | (2,764 | ) | $ | (1,420 | ) | $ | (13 | ) | $ | (4,197 | ) | ||||||||||||||||||||
Current period other comprehensive loss | (5,159 | ) | — | — | (5,159 | ) | (49,096 | ) | — | — | (49,096 | ) | ||||||||||||||||||||
Balance as of September 30, 2021 | $ | 2,037 | $ | (2,105 | ) | $ | (53 | ) | $ | (121 | ) | |||||||||||||||||||||
Balance as of September 30, 2022 | $ | (51,860 | ) | $ | (1,420 | ) | $ | (13 | ) | $ | (53,293 | ) |
10. | OUTSTANDING SHARES AND EARNINGS PER SHARE |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||||||||
Net income | $ | 4,568 | $ | 4,509 | $ | 11,155 | $ | 10,993 | $ | 4,619 | $ | 4,568 | $ | 14,672 | $ | 11,155 | ||||||||||||||||
Weighted average common shares outstanding | 13,713,657 | 14,018,259 | 13,704,178 | 14,115,162 | 14,465,191 | 14,404,438 | 14,455,772 | 14,394,959 | ||||||||||||||||||||||||
Basic EPS | $ | 0.33 | $ | 0.32 | $ | 0.81 | $ | 0.78 | $ | 0.32 | $ | 0.32 | $ | 1.01 | $ | 0.77 | ||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||||||||
Net income | $ | 4,568 | $ | 4,509 | $ | 11,155 | $ | 10,993 | $ | 4,619 | $ | 4,568 | $ | 14,672 | $ | 11,155 | ||||||||||||||||
Weighted average common shares outstanding | 13,713,657 | 14,018,259 | 13,704,178 | 14,115,162 | 14,465,191 | 14,404,438 | 14,455,772 | 14,394,959 | ||||||||||||||||||||||||
Effect of dilutive shares | 143,497 | 188,615 | 154,998 | 178,363 | 160,012 | 150,672 | 129,448 | 162,748 | ||||||||||||||||||||||||
Adjusted weighted average common shares outstanding | 13,857,154 | 14,206,874 | 13,859,176 | 14,293,525 | 14,625,203 | 14,555,110 | 14,585,220 | 14,557,707 | ||||||||||||||||||||||||
Diluted EPS | $ | 0.33 | $ | 0.32 | $ | 0.80 | $ | 0.77 | $ | 0.32 | $ | 0.31 | $ | 1.01 | $ | 0.77 |
11. | LEASES |
(in thousands) | September 30, 2022 | September 30, 2023 | ||||||
2022 (remaining 3 months) | $ | 283 | ||||||
2023 | 1,097 | |||||||
2023 (remaining 3 months) | $ | 297 | ||||||
2024 | 1,000 | 1,040 | ||||||
2025 | 962 | 1,052 | ||||||
2026 | 672 | 672 | ||||||
2027 and thereafter | 2,131 | |||||||
2027 | 611 | |||||||
2028 and thereafter | 1,520 | |||||||
Total lease payments | 6,145 | 5,192 | ||||||
Less: interest | (453 | ) | (338 | ) | ||||
Present value of lease liabilities | $ | 5,692 | $ | 4,854 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||
Operating cash flows from operating leases | $ | 345 | $ | 318 | $ | 948 | $ | 901 | ||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 162 | 285 | 869 | 285 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||
Operating cash flows from operating leases | $ | 296 | $ | 345 | $ | 910 | $ | 948 | ||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | — | 162 | 245 | 869 |
September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | |||||||||||||
Weighted-average remaining lease term – operating leases, in years | 6.30 | 6.32 | 5.55 | 6.14 | ||||||||||||
Weighted-average discount rate – operating leases | 2.37 | % | 2.36 | % | 2.43 | % | 2.37 | % |
12. | BUSINESS COMBINATIONS |
Acquired Branches January 20, 2023 | ||||
Fair value of consideration received: | ||||
Cash consideration | $ | 103,425 | ||
Total fair value of consideration received | 103,425 | |||
Assets acquired: | ||||
Cash and cash equivalents | 1,284 | |||
Loans | 4,006 | |||
Premises and equipment | 3,621 | |||
Core deposit intangible | 4,970 | |||
Other assets | 15 | |||
Total assets acquired | 13,896 | |||
Liabilities assumed: | ||||
Deposits | 115,914 | |||
Other liabilities | 2 | |||
Total liabilities assumed | 115,916 | |||
Total net liabilities assumed | 102,020 | |||
Bargain purchase gain recognized | $ | 1,405 |
Acquired Branches January 20, 2023 | ||||
Cash consideration received | $ | 103,425 | ||
Less: | ||||
Cost basis of net liabilities assumed | (107,097 | ) | ||
Fair Value Adjustments: | ||||
Loans | (363 | ) | ||
Premises and equipment | 307 | |||
Core deposit intangible | 4,970 | |||
Deposits | 163 | |||
Bargain purchase gain recognized | $ | 1,405 |
Three months ended September 30, 2023 | Three months ended September 30, 2022 | Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | |||||||||||||
Summarized proforma income statement data: | ||||||||||||||||
Net interest income | $ | 15,874 | $ | 14,622 | $ | 49,875 | $ | 40,073 | ||||||||
Provision for loan losses | 500 | 300 | 3,100 | 900 | ||||||||||||
Non-interest income | 1,776 | 2,244 | 6,194 | 6,002 | ||||||||||||
Non-interest expense | 10,883 | 10,568 | 32,705 | 30,315 | ||||||||||||
Income before taxes | 6,267 | 5,998 | 20,264 | 14,860 | ||||||||||||
Provision for income taxes | 1,648 | 1,487 | 5,515 | 3,882 | ||||||||||||
Net income | $ | 4,619 | $ | 4,511 | $ | 14,749 | $ | 10,978 | ||||||||
Basic earnings per share | $ | 0.32 | $ | 0.31 | $ | 1.02 | $ | 0.76 | ||||||||
Diluted earnings per share | $ | 0.32 | $ | 0.31 | $ | 1.01 | $ | 0.75 |
● | Our business objectives, strategies and initiatives, our organizational structure, the growth of our business and our competitive position and prospects, and the effect of competition on our business and strategies |
● | Our assessment of significant factors and developments that have affected or may affect our results |
● | Legal and regulatory actions, and future legislative and regulatory developments, including the effects of the Dodd-Frank Wall Street Reform and Protection Act (the “Dodd-Frank Act”), the Economic Growth, Regulatory Relief and Consumer Protection Act (the “EGRRCPA”), and other legislation and governmental measures introduced in response to the financial crisis which began in 2008 and the ensuing recession affecting the banking system, financial markets and the U.S. economy, as well as the effect of the federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted in March 2020, in an effort to mitigate the consequences of the coronavirus pandemic and the governmental actions in response to the pandemic |
● | Regulatory and compliance controls, processes and requirements and their impact on our business |
● | The costs and effects of legal or regulatory actions |
● | Expectations regarding draws on performance letters of credit and liabilities that may result from recourse provisions in standby letters of credit |
● | Our intent to sell or hold, and the likelihood that we would be required to sell, various investment securities |
● | Our regulatory capital requirements, including the capital rules established after the 2008 financial crisis by the U.S. federal banking agencies and our current intention not to elect to use the community bank leverage ratio framework |
● | Expectations regarding our non-payment of a cash dividend on our common stock in the foreseeable future |
● | Credit quality and provision for credit losses and management of asset quality and credit risk, expectations regarding collections and |
● | Our allowances for |
● | Our assessment of economic conditions and trends and credit cycles and their impact on our business |
● | The seasonal nature of our business |
● | The impact of changes in interest rates and our strategy to manage our interest rate risk profile and the possible effect of changes in residential mortgage interest rates on new originations and refinancing of existing residential mortgage loans |
● | Loan portfolio composition and risk grade trends, expected charge-offs, portfolio credit quality, loan demand, our strategy regarding |
● | Our deposit base including renewal of time deposits and the outlook for deposit balances |
● | The impact on our net interest income and net interest margin of changes in interest rates |
● | The effect of possible changes in the initiatives and policies of the federal and state bank regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, the Securities and Exchange Commission and other standard setters |
● | Tax rates and the impact of changes in the U.S. tax laws |
● | Our pension and retirement plan costs |
● | Our liquidity strategies and beliefs concerning the adequacy of our liquidity position |
● | Critical accounting policies and estimates, the impact or anticipated impact of recent accounting pronouncements or changes in accounting principles |
● | Expected rates of return, maturities, loss exposure, growth rates, yields, and projected results, including expectations about the results of the Company’s acquisition of these branches from Columbia State Bank, completed in January 2023 |
● | The possible impact of weather-related or other natural conditions, including drought, fire or flooding, seismic events, and related governmental responses, including related electrical power outages, on economic conditions, especially in the agricultural sector |
● | Maintenance of insurance coverages appropriate for our operations |
● | Threats to the banking sector and our business due to cybersecurity issues and attacks and regulatory expectations related to cybersecurity |
● | Possible changes in the |
● | The effects of the coronavirus pandemic on the U.S., California and global economies and the actions of governments to reduce the spread of the virus and to mitigate the resulting economic consequences |
● | The possible effects on community banks and our business from the recent failures of other banks |
● | The possible adverse impacts on the banking industry and our business from a period of significant, prolonged inflation |
● | Descriptions of assumptions underlying or relating to any of the foregoing |
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||
(dollars in thousands except for per share amounts) | ||||||||||||||||||||||||||||||||
For the Period: | ||||||||||||||||||||||||||||||||
Net Income | $ | 4,568 | $ | 4,509 | $ | 11,155 | $ | 10,993 | $ | 4,619 | $ | 4,568 | $ | 14,672 | $ | 11,155 | ||||||||||||||||
Basic Earnings Per Common Share | $ | 0.33 | $ | 0.32 | $ | 0.81 | $ | 0.78 | $ | 0.32 | $ | 0.32 | $ | 1.01 | $ | 0.77 | ||||||||||||||||
Diluted Earnings Per Common Share | $ | 0.33 | $ | 0.32 | $ | 0.80 | $ | 0.77 | $ | 0.32 | $ | 0.31 | $ | 1.01 | $ | 0.77 | ||||||||||||||||
Net Income to Average Assets (annualized) | 0.95 | % | 0.94 | % | 0.79 | % | 0.81 | % | ||||||||||||||||||||||||
Net Income to Average Equity (annualized) | 14.07 | % | 11.62 | % | 11.00 | % | 9.71 | % | ||||||||||||||||||||||||
Return on Average Assets (annualized) | 0.96 | % | 0.95 | % | 1.02 | % | 0.79 | % | ||||||||||||||||||||||||
Return on Average Equity (annualized) | 13.11 | % | 14.07 | % | 14.41 | % | 11.00 | % | ||||||||||||||||||||||||
Average Equity to Average Assets | 6.75 | % | 8.11 | % | 7.19 | % | 8.34 | % | 7.30 | % | 6.75 | % | 7.09 | % | 7.19 | % |
September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | |||||||||||||
(in thousands except for ratios) | (in thousands except for ratios) | (in thousands except for ratios) | ||||||||||||||
At Period End: | ||||||||||||||||
Total Assets | $ | 1,932,713 | $ | 1,899,087 | $ | 1,902,328 | $ | 1,871,361 | ||||||||
Total Investment Securities, at fair value | $ | 607,985 | $ | 632,213 | $ | 567,409 | $ | 618,092 | ||||||||
Total Loans, Net (including loans held-for-sale) | $ | 971,249 | $ | 853,780 | $ | 1,037,435 | $ | 970,138 | ||||||||
Total Deposits | $ | 1,799,605 | $ | 1,728,302 | $ | 1,746,344 | $ | 1,726,874 | ||||||||
Loan-To-Deposit Ratio | 54.0 | % | 49.4 | % | 59.4 | % | 56.2 | % |
Three months ended September 30, 2022 | Three months ended September 30, 2021 | Three months ended September 30, 2023 | Three months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | |||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans (1) | $ | 949,424 | $ | 10,857 | 4.54 | % | $ | 851,221 | $ | 9,905 | 4.62 | % | $ | 1,031,647 | $ | 13,098 | 5.04 | % | $ | 949,424 | $ | 10,857 | 4.54 | % | ||||||||||||||||||||||||
Certificate of deposits | 11,423 | 57 | 1.98 | % | 13,358 | 69 | 2.05 | % | 20,794 | 194 | 3.70 | % | 11,423 | 57 | 1.98 | % | ||||||||||||||||||||||||||||||||
Interest bearing due from banks | 208,059 | 1,061 | 2.02 | % | 353,891 | 142 | 0.16 | % | 148,250 | 1,870 | 5.00 | % | 208,059 | 1,061 | 2.02 | % | ||||||||||||||||||||||||||||||||
Investment securities, taxable | 589,082 | 2,122 | 1.43 | % | 558,317 | 1,635 | 1.16 | % | 551,555 | 2,685 | 1.93 | % | 589,082 | 2,122 | 1.43 | % | ||||||||||||||||||||||||||||||||
Investment securities, non-taxable (2) | 40,272 | 250 | 2.46 | % | 28,569 | 153 | 2.12 | % | 31,765 | 199 | 2.49 | % | 40,272 | 250 | 2.46 | % | ||||||||||||||||||||||||||||||||
Other interest earning assets | 9,440 | 137 | 5.76 | % | 7,097 | 104 | 5.81 | % | 10,518 | 214 | 8.07 | % | 9,440 | 137 | 5.76 | % | ||||||||||||||||||||||||||||||||
Total average interest-earning assets | 1,807,700 | 14,484 | 3.18 | % | 1,812,453 | 12,008 | 2.63 | % | 1,794,529 | 18,260 | 4.04 | % | 1,807,700 | 14,484 | 3.18 | % | ||||||||||||||||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 41,157 | 41,600 | 49,630 | 41,157 | ||||||||||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 6,125 | 6,441 | 9,704 | 6,125 | ||||||||||||||||||||||||||||||||||||||||||||
Interest receivable and other assets | 54,289 | 38,869 | 59,579 | 54,289 | ||||||||||||||||||||||||||||||||||||||||||||
Total average assets | $ | 1,909,271 | $ | 1,899,363 | $ | 1,913,442 | $ | 1,909,271 | ||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing transaction deposits | 452,708 | 69 | 0.06 | % | 428,485 | 64 | 0.06 | % | 415,232 | 472 | 0.45 | % | 452,708 | 69 | 0.06 | % | ||||||||||||||||||||||||||||||||
Savings and MMDA’s | 447,797 | 171 | 0.15 | % | 451,340 | 124 | 0.11 | % | 443,536 | 819 | 0.73 | % | 447,797 | 171 | 0.15 | % | ||||||||||||||||||||||||||||||||
Time, $250,000 or less | 36,456 | 23 | 0.25 | % | 39,509 | 27 | 0.27 | % | 98,898 | 968 | 3.88 | % | 36,456 | 23 | 0.25 | % | ||||||||||||||||||||||||||||||||
Time, over $250,000 | 10,504 | 8 | 0.30 | % | 13,572 | 16 | 0.47 | % | 17,554 | 127 | 2.87 | % | 10,504 | 8 | 0.30 | % | ||||||||||||||||||||||||||||||||
Total average interest-bearing liabilities | 947,465 | 271 | 0.11 | % | 932,906 | 231 | 0.10 | % | 975,220 | 2,386 | 0.97 | % | 947,465 | 271 | 0.11 | % | ||||||||||||||||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing demand deposits | 814,300 | 792,951 | 779,615 | 814,300 | ||||||||||||||||||||||||||||||||||||||||||||
Interest payable and other liabilities | 18,662 | 19,560 | 18,858 | 18,662 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 1,780,427 | 1,745,417 | 1,773,693 | 1,780,427 | ||||||||||||||||||||||||||||||||||||||||||||
Total average stockholders’ equity | 128,844 | 153,946 | 139,749 | 128,844 | ||||||||||||||||||||||||||||||||||||||||||||
Total average liabilities and stockholders’ equity | $ | 1,909,271 | $ | 1,899,363 | $ | 1,913,442 | $ | 1,909,271 | ||||||||||||||||||||||||||||||||||||||||
Net interest income and net interest margin (3) | $ | 14,213 | 3.12 | % | $ | 11,777 | 2.58 | % | $ | 15,874 | 3.51 | % | $ | 14,213 | 3.12 | % |
(1) | Average balances for loans include loans held-for-sale and non-accrual loans and are net of the allowance for loan losses, but non-accrued interest thereon is generally excluded. Loan interest income includes |
(2) | Interest income and yields on tax-exempt securities are not presented on a taxable-equivalent basis. |
(3) | Net interest margin is computed by dividing net interest income by total average interest-earning assets. |
(4) | For disclosure purposes, yield /rates are annualized by dividing the number of days in the reported period by 365. |
Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 994,504 | $ | 38,197 | 5.14 | % | $ | 896,708 | $ | 30,979 | 4.62 | % | ||||||||||||
Certificate of deposits | 21,115 | 556 | 3.52 | % | 11,659 | 167 | 1.92 | % | ||||||||||||||||
Interest bearing due from banks | 174,391 | 6,411 | 4.92 | % | 231,712 | 1,626 | 0.94 | % | ||||||||||||||||
Investment securities, taxable | 568,322 | 8,041 | 1.89 | % | 597,040 | 5,783 | 1.30 | % | ||||||||||||||||
Investment securities, non-taxable (2) | 36,092 | 692 | 2.56 | % | 36,656 | 634 | 2.31 | % | ||||||||||||||||
Other interest earning assets | 9,985 | 557 | 7.46 | % | 8,513 | 361 | 5.67 | % | ||||||||||||||||
Total average interest-earning assets | 1,804,409 | 54,454 | 4.03 | % | 1,782,288 | 39,550 | 2.97 | % | ||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 47,135 | 46,737 | ||||||||||||||||||||||
Premises and equipment, net | 8,713 | 6,298 | ||||||||||||||||||||||
Interest receivable and other assets | 58,805 | 49,547 | ||||||||||||||||||||||
Total average assets | $ | 1,919,062 | $ | 1,884,870 | ||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing transaction deposits | 432,741 | 1,107 | 0.34 | % | 441,819 | 205 | 0.06 | % | ||||||||||||||||
Savings and MMDA’s | 460,198 | 1,926 | 0.56 | % | 443,063 | 395 | 0.12 | % | ||||||||||||||||
Time, $250,000 or less | 73,485 | 1,542 | 2.81 | % | 37,374 | 68 | 0.24 | % | ||||||||||||||||
Time, over $250,000 | 13,043 | 242 | 2.48 | % | 10,769 | 23 | 0.29 | % | ||||||||||||||||
Total average interest-bearing liabilities | 979,467 | 4,817 | 0.66 | % | 933,025 | 691 | 0.10 | % | ||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing demand deposits | 785,634 | 797,890 | ||||||||||||||||||||||
Interest payable and other liabilities | 17,837 | 18,380 | ||||||||||||||||||||||
Total liabilities | 1,782,938 | 1,749,295 | ||||||||||||||||||||||
Total average stockholders’ equity | 136,124 | 135,575 | ||||||||||||||||||||||
Total average liabilities and stockholders’ equity | $ | 1,919,062 | $ | 1,884,870 | ||||||||||||||||||||
Net interest income and net interest margin (3) | $ | 49,637 | 3.68 | % | $ | 38,859 | 2.92 | % |
Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 896,708 | $ | 30,979 | 4.62 | % | $ | 892,348 | $ | 29,616 | 4.44 | % | ||||||||||||
Certificate of deposits | 11,659 | 167 | 1.92 | % | 14,531 | 231 | 2.13 | % | ||||||||||||||||
Interest bearing due from banks | 231,712 | 1,626 | 0.94 | % | 305,667 | 272 | 0.12 | % | ||||||||||||||||
Investment securities, taxable | 597,040 | 5,783 | 1.30 | % | 485,291 | 4,612 | 1.27 | % | ||||||||||||||||
Investment securities, non-taxable (2) | 36,656 | 634 | 2.31 | % | 27,181 | 436 | 2.14 | % | ||||||||||||||||
Other interest earning assets | 8,513 | 361 | 5.67 | % | 6,860 | 289 | 5.63 | % | ||||||||||||||||
Total average interest-earning assets | 1,782,288 | 39,550 | 2.97 | % | 1,731,878 | 35,456 | 2.74 | % | ||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 46,737 | 38,326 | ||||||||||||||||||||||
Premises and equipment, net | 6,298 | 6,458 | ||||||||||||||||||||||
Interest receivable and other assets | 49,547 | 38,502 | ||||||||||||||||||||||
Total average assets | $ | 1,884,870 | $ | 1,815,164 | ||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing transaction deposits | 441,819 | 205 | 0.06 | % | 418,159 | 184 | 0.06 | % | ||||||||||||||||
Savings and MMDA’s | 443,063 | 395 | 0.12 | % | 432,662 | 345 | 0.11 | % | ||||||||||||||||
Time, $250,000 or less | 37,374 | 68 | 0.24 | % | 41,492 | 101 | 0.33 | % | ||||||||||||||||
Time, over $250,000 | 10,769 | 23 | 0.29 | % | 14,253 | 56 | 0.53 | % | ||||||||||||||||
Total average interest-bearing liabilities | 933,025 | 691 | 0.10 | % | 906,566 | 686 | 0.10 | % | ||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Federal Home Loan Bank Advances | — | 2,418 | ||||||||||||||||||||||
Non-interest-bearing demand deposits | 797,890 | 735,777 | ||||||||||||||||||||||
Interest payable and other liabilities | 18,380 | 19,064 | ||||||||||||||||||||||
Total liabilities | 1,749,295 | 1,663,825 | ||||||||||||||||||||||
Total average stockholders’ equity | 135,575 | 151,339 | ||||||||||||||||||||||
Total average liabilities and stockholders’ equity | $ | 1,884,870 | $ | 1,815,164 | ||||||||||||||||||||
Net interest income and net interest margin (3) | $ | 38,859 | 2.92 | % | $ | 34,770 | 2.68 | % |
(1) | Average balances for loans include loans held-for-sale and non-accrual loans and are net of the allowance for loan losses, but non-accrued interest thereon is generally excluded. Loan interest income includes |
(2) | Interest income and yields on tax-exempt securities are not presented on a taxable-equivalent basis. |
(3) Net interest margin is computed by dividing net interest income by total average interest-earning assets. |
(4) | For disclosure purposes, yield /rates are annualized by dividing the number of days in the reported period by 365. |
Three months ended September 30, 2022 | Three months ended June 30, 2022 | Three months ended September 30, 2023 | Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate (4) | |||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans (1) | $ | 949,424 | $ | 10,857 | 4.54 | % | $ | 897,608 | $ | 10,465 | 4.68 | % | $ | 1,031,647 | $ | 13,098 | 5.04 | % | $ | 988,094 | $ | 13,722 | 5.57 | % | ||||||||||||||||||||||||
Certificates of deposit | 11,423 | 57 | 1.98 | % | 11,056 | 53 | 1.92 | % | 20,794 | 194 | 3.70 | % | 21,491 | 188 | 3.51 | % | ||||||||||||||||||||||||||||||||
Interest bearing due from banks | 208,059 | 1,061 | 2.02 | % | 215,098 | 456 | 0.85 | % | 148,250 | 1,870 | 5.00 | % | 169,071 | 2,315 | 5.49 | % | ||||||||||||||||||||||||||||||||
Investment securities, taxable | 589,082 | 2,122 | 1.43 | % | 603,796 | 1,933 | 1.28 | % | 551,555 | 2,685 | 1.93 | % | 571,381 | 2,673 | 1.88 | % | ||||||||||||||||||||||||||||||||
Investment securities, non-taxable (2) | 40,272 | 250 | 2.46 | % | 35,190 | 206 | 2.35 | % | 31,765 | 199 | 2.49 | % | 34,953 | 220 | 2.52 | % | ||||||||||||||||||||||||||||||||
Other interest earning assets | 9,440 | 137 | 5.76 | % | 8,976 | 106 | 4.74 | % | 10,518 | 214 | 8.07 | % | 9,985 | 165 | 6.63 | % | ||||||||||||||||||||||||||||||||
Total average interest-earning assets | 1,807,700 | 14,484 | 3.18 | % | 1,771,724 | 13,219 | 2.99 | % | 1,794,529 | 18,260 | 4.04 | % | 1,794,975 | 19,283 | 4.31 | % | ||||||||||||||||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 41,157 | 47,651 | 49,630 | 46,004 | ||||||||||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 6,125 | 6,294 | 9,704 | 9,804 | ||||||||||||||||||||||||||||||||||||||||||||
Interest receivable and other assets | 54,289 | 51,856 | 59,579 | 59,479 | ||||||||||||||||||||||||||||||||||||||||||||
Total average assets | $ | 1,909,271 | $ | 1,877,525 | $ | 1,913,442 | $ | 1,910,262 | ||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing transaction deposits | 452,708 | 69 | 0.06 | % | 440,466 | 67 | 0.06 | % | 415,232 | 472 | 0.45 | % | 425,903 | 377 | 0.36 | % | ||||||||||||||||||||||||||||||||
Savings and MMDA’s | 447,797 | 171 | 0.15 | % | 446,890 | 115 | 0.10 | % | 443,536 | 819 | 0.73 | % | 455,943 | 582 | 0.51 | % | ||||||||||||||||||||||||||||||||
Time, $250,000 and under | 36,456 | 23 | 0.25 | % | 38,235 | 22 | 0.23 | % | 98,898 | 968 | 3.88 | % | 78,378 | 470 | 2.41 | % | ||||||||||||||||||||||||||||||||
Time, over $250,000 | 10,504 | 8 | 0.30 | % | 10,542 | 7 | 0.27 | % | 17,554 | 127 | 2.87 | % | 11,373 | 72 | 2.54 | % | ||||||||||||||||||||||||||||||||
Total average interest-bearing liabilities | 947,465 | 271 | 0.11 | % | 936,133 | 211 | 0.09 | % | 975,220 | 2,386 | 0.97 | % | 971,597 | 1,501 | 0.62 | % | ||||||||||||||||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing demand deposits | 814,300 | 793,243 | 779,615 | 783,045 | ||||||||||||||||||||||||||||||||||||||||||||
Interest payable and other liabilities | 18,662 | 17,730 | 18,858 | 17,210 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 1,780,427 | 1,747,106 | 1,773,693 | 1,771,852 | ||||||||||||||||||||||||||||||||||||||||||||
Total average stockholders’ equity | 128,844 | 130,419 | 139,749 | 138,410 | ||||||||||||||||||||||||||||||||||||||||||||
Total average liabilities and stockholders’ equity | $ | 1,909,271 | $ | 1,877,525 | $ | 1,913,442 | $ | 1,910,262 | ||||||||||||||||||||||||||||||||||||||||
Net interest income and net interest margin (3) | $ | 14,213 | 3.12 | % | $ | 13,008 | 2.94 | % | $ | 15,874 | 3.51 | % | $ | 17,782 | 3.97 | % |
(1) | Average balances for loans include loans held-for-sale and non-accrual loans and are net of the allowance for loan losses, but non-accrued interest is generally excluded. Loan interest income includes |
(2) | Interest income and yields on tax-exempt securities are not presented on a taxable equivalent basis. |
(3) | Net interest margin is computed by dividing net interest income by total average interest-earning assets. |
(4) | For disclosure purposes, yield/rates are annualized by dividing the number of days in the reported period by 365. |
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2023 Over Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2023 Over Nine Months Ended September 30, 2022 | Three Months Ended September 30, 2023 Over Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Over | Over | Over | Volume | Interest Rate | Change | Volume | Interest Rate | Change | Volume | Interest Rate | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Volume | Interest Rate | Change | Volume | Interest Rate | Change | Volume | Interest Rate | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Interest Income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in Interest Income: | Increase in Interest Income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | $ | 1,124 | $ | (172 | ) | $ | 952 | $ | 147 | $ | 1,216 | $ | 1,363 | $ | 672 | $ | (280 | ) | $ | 392 | $ | 986 | $ | 1,255 | $ | 2,241 | $ | 3,552 | $ | 3,666 | $ | 7,218 | $ | 631 | $ | (1,255 | ) | $ | (624 | ) | ||||||||||||||||||||||||||||||||
Certificates of Deposit | (10 | ) | (2 | ) | (12 | ) | (43 | ) | (21 | ) | (64 | ) | 2 | 2 | 4 | 67 | 70 | 137 | 192 | 197 | 389 | (5 | ) | 11 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
Due From Banks | (82 | ) | 1,001 | 919 | (83 | ) | 1,437 | 1,354 | (15 | ) | 620 | 605 | (374 | ) | 1,183 | 809 | (500 | ) | 5,285 | 4,785 | (258 | ) | (187 | ) | (445 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities - Taxable | 93 | 394 | 487 | 1,061 | 110 | 1,171 | (46 | ) | 235 | 189 | (140 | ) | 703 | 563 | (290 | ) | 2,548 | 2,258 | (75 | ) | 87 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities - Non-taxable | 70 | 27 | 97 | 161 | 37 | 198 | 33 | 11 | 44 | (54 | ) | 3 | (51 | ) | (10 | ) | 68 | 58 | (18 | ) | (3 | ) | (21 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | 34 | (1 | ) | 33 | 70 | 2 | 72 | 6 | 25 | 31 | 18 | 59 | 77 | 69 | 127 | 196 | 10 | 39 | 49 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,229 | $ | 1,247 | $ | 2,476 | $ | 1,313 | $ | 2,781 | $ | 4,094 | $ | 652 | $ | 613 | $ | 1,265 | $ | 503 | $ | 3,273 | $ | 3,776 | $ | 3,013 | $ | 11,891 | $ | 14,904 | $ | 285 | $ | (1,308 | ) | $ | (1,023 | ) | |||||||||||||||||||||||||||||||||||
Increase (Decrease) in Interest Expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in Interest Expense: | Increase in Interest Expense: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-Bearing Transaction Deposits | $ | 5 | $ | — | $ | 5 | $ | 21 | $ | — | $ | 21 | $ | 2 | $ | — | $ | 2 | $ | (6 | ) | $ | 409 | $ | 403 | $ | (4 | ) | $ | 906 | $ | 902 | $ | (9 | ) | $ | 104 | $ | 95 | |||||||||||||||||||||||||||||||||
Savings & MMDAs | (1 | ) | 48 | 47 | 10 | 40 | 50 | — | 56 | 56 | (1 | ) | 649 | 648 | 16 | 1,515 | 1,531 | (16 | ) | 253 | 237 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Time Certificates | (4 | ) | (8 | ) | (12 | ) | (17 | ) | (49 | ) | (66 | ) | (3 | ) | 5 | 2 | 123 | 941 | 1,064 | 138 | 1,555 | 1,693 | 249 | 304 | 553 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | — | $ | 40 | $ | 40 | $ | 14 | $ | (9 | ) | $ | 5 | $ | (1 | ) | $ | 61 | $ | 60 | $ | 116 | $ | 1,999 | $ | 2,115 | $ | 150 | $ | 3,976 | $ | 4,126 | $ | 224 | $ | 661 | $ | 885 | |||||||||||||||||||||||||||||||||||
Increase in Net Interest Income: | $ | 1,229 | $ | 1,207 | $ | 2,436 | $ | 1,299 | $ | 2,790 | $ | 4,089 | $ | 653 | $ | 552 | $ | 1,205 | $ | 387 | $ | 1,274 | $ | 1,661 | $ | 2,863 | $ | 7,915 | $ | 10,778 | $ | 61 | $ | (1,969 | ) | $ | (1,908 | ) |
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Three months ended September 30, 2022 | Three months ended September 30, 2021 | Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | Three months ended September 30, 2023 | Three months ended September 30, 2022 | Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | |||||||||||||||||||||||||
Other non-interest expenses | ||||||||||||||||||||||||||||||||
(Reversal of) provision for unfunded loan commitments | $ | — | $ | — | $ | 50 | $ | (300 | ) | |||||||||||||||||||||||
FDIC assessments | 126 | 170 | 401 | 425 | $ | 231 | $ | 126 | $ | 681 | $ | 401 | ||||||||||||||||||||
Contributions | 66 | 29 | 148 | 109 | 79 | 66 | 190 | 148 | ||||||||||||||||||||||||
Legal fees | 151 | 53 | 474 | 226 | 88 | 151 | 428 | 474 | ||||||||||||||||||||||||
Accounting and audit fees | 135 | 115 | 404 | 346 | 134 | 135 | 451 | 404 | ||||||||||||||||||||||||
Consulting fees | 239 | 123 | 428 | 340 | 163 | 239 | 599 | 428 | ||||||||||||||||||||||||
Postage expense | 36 | 35 | 129 | 120 | 27 | 36 | 123 | 129 | ||||||||||||||||||||||||
Telephone expense | 36 | 36 | 109 | 104 | 37 | 36 | 124 | 109 | ||||||||||||||||||||||||
Public relations | 52 | 32 | 183 | 89 | 87 | 52 | 230 | 183 | ||||||||||||||||||||||||
Training expense | 34 | 26 | 115 | 61 | 37 | 34 | 165 | 115 | ||||||||||||||||||||||||
Loan origination expense | 29 | 29 | 178 | 149 | 120 | 29 | 248 | 178 | ||||||||||||||||||||||||
Computer software depreciation | 9 | 17 | 32 | 50 | 1 | 9 | 17 | 32 | ||||||||||||||||||||||||
Sundry losses | 80 | 34 | 184 | 202 | 80 | 80 | 203 | 184 | ||||||||||||||||||||||||
Loan collection expense | 114 | 85 | 292 | 680 | ||||||||||||||||||||||||||||
Loan collection expense (recovery) | 160 | 114 | (294 | ) | 292 | |||||||||||||||||||||||||||
Debit card expense | 246 | 238 | 722 | 646 | 305 | 246 | 902 | 722 | ||||||||||||||||||||||||
Other non-interest expense | 350 | 289 | 1,005 | 864 | 437 | 350 | 1,296 | 1,055 | ||||||||||||||||||||||||
Total other non-interest expenses | $ | 1,703 | $ | 1,311 | $ | 4,854 | $ | 4,111 | $ | 1,986 | $ | 1,703 | $ | 5,363 | $ | 4,854 |
(in thousands) | (in thousands) | |||||||||||||||
September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | |||||||||||||
Undisbursed loan commitments | $ | 203,324 | $ | 192,874 | $ | 197,710 | $ | 205,610 | ||||||||
Standby letters of credit | 2,714 | 2,305 | 1,251 | 1,930 | ||||||||||||
Commitments to sell loans | — | 1,500 | 765 | — | ||||||||||||
$ | 206,038 | $ | 196,679 | $ | 199,726 | $ | 207,540 |
At September 30, 2022 | At December 31, 2021 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Gross | Guaranteed | Net | Gross | Guaranteed | Net | Gross | Guaranteed | Net | Gross | Guaranteed | Net | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | 133 | $ | 33 | $ | 100 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Commercial real estate | — | — | — | 555 | — | 555 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Agriculture | 7,625 | — | 7,625 | 8,712 | — | 8,712 | 5,020 | — | 5,020 | 7,416 | — | 7,416 | ||||||||||||||||||||||||||||||||||||
Residential mortgage | 126 | — | 126 | 138 | — | 138 | 400 | — | 400 | 123 | — | 123 | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Consumer | 723 | — | 723 | 659 | — | 659 | 699 | — | 699 | 637 | — | 637 | ||||||||||||||||||||||||||||||||||||
Total non-accrual loans | $ | 8,474 | $ | — | $ | 8,474 | $ | 10,197 | $ | 33 | $ | 10,164 | $ | 6,119 | $ | — | $ | 6,119 | $ | 8,176 | $ | — | $ | 8,176 |
At September 30, 2022 | At December 31, 2021 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Gross | Guaranteed | Net | Gross | Guaranteed | Net | Gross | Guaranteed | Net | Gross | Guaranteed | Net | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 8,474 | $ | — | $ | 8,474 | $ | 10,197 | $ | 33 | $ | 10,164 | $ | 6,119 | $ | — | $ | 6,119 | $ | 8,176 | $ | - | $ | 8,176 | ||||||||||||||||||||||||
Loans 90 days past due and still accruing | 403 | — | 403 | — | — | — | — | — | — | 403 | — | 403 | ||||||||||||||||||||||||||||||||||||
Total non-performing loans | 8,877 | — | 8,877 | 10,197 | 33 | 10,164 | 6,119 | — | 6,119 | 8,579 | — | 8,579 | ||||||||||||||||||||||||||||||||||||
Other real estate owned | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total non-performing assets | $ | 8,877 | $ | — | $ | 8,877 | $ | 10,197 | $ | 33 | $ | 10,164 | $ | 6,119 | $ | — | $ | 6,119 | $ | 8,579 | $ | — | $ | 8,579 | ||||||||||||||||||||||||
Non-performing loans (net of guarantees) to total loans | 0.9 | % | 1.2 | % | 0.6 | % | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||
Non-performing assets (net of guarantees) to total assets | 0.5 | % | 0.5 | % | 0.3 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses to non-performing loans (net of guarantees) | 166.4 | % | 137.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses to non-performing loans (net of guarantees) | 263.9 | % | 172.4 | % |
Nine months ended September 30, | Year ended December 31, | Nine months ended September 30, | Year ended December 31, | |||||||||||||||||||||
2022 | 2021 | 2021 | 2023 | 2022 | 2022 | |||||||||||||||||||
Balance at beginning of period | $ | 13,952 | $ | 15,416 | $ | 15,416 | $ | 14,792 | $ | 13,952 | $ | 13,952 | ||||||||||||
Provision for (reversal of) loan losses | 900 | (1,500 | ) | (1,500 | ) | |||||||||||||||||||
Impact of adopting ASC 326 | 800 | — | — | |||||||||||||||||||||
Provision for credit losses | 3,250 | 900 | 900 | |||||||||||||||||||||
Loans charged-off: | ||||||||||||||||||||||||
Commercial | (297 | ) | (383 | ) | (502 | ) | (269 | ) | (297 | ) | (297 | ) | ||||||||||||
Commercial Real Estate | — | — | — | — | — | — | ||||||||||||||||||
Agriculture | — | — | — | (2,567 | ) | — | — | |||||||||||||||||
Residential Mortgage | — | — | (5 | ) | (3 | ) | — | — | ||||||||||||||||
Residential Construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer | (39 | ) | (12 | ) | (12 | ) | (10 | ) | (39 | ) | (48 | ) | ||||||||||||
Total charged-off | (336 | ) | (395 | ) | (519 | ) | (2,849 | ) | (336 | ) | (345 | ) | ||||||||||||
Recoveries: | ||||||||||||||||||||||||
Commercial | 249 | 423 | 429 | 155 | 249 | 275 | ||||||||||||||||||
Commercial Real Estate | — | — | 14 | — | — | — | ||||||||||||||||||
Agriculture | — | — | — | — | — | — | ||||||||||||||||||
Residential Mortgage | — | — | — | — | — | — | ||||||||||||||||||
Residential Construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer | 6 | 57 | 112 | 1 | 6 | 10 | ||||||||||||||||||
Total recoveries | 255 | 480 | 555 | 156 | 255 | 285 | ||||||||||||||||||
Net (charge-offs) recoveries | (81 | ) | 85 | 36 | ||||||||||||||||||||
Net charge-offs | (2,693 | ) | (81 | ) | (60 | ) | ||||||||||||||||||
Balance at end of period | $ | 14,771 | $ | 14,001 | $ | 13,952 | $ | 16,149 | $ | 14,771 | $ | 14,792 | ||||||||||||
Ratio of net charge-offs to average loans outstanding during the period (annualized) | (0.01 | %) | 0.01 | % | 0.00 | % | (0.36 | %) | (0.01 | %) | (0.01 | %) | ||||||||||||
Allowance for loan losses to total loans | 1.50 | % | 1.67 | % | 1.61 | % | ||||||||||||||||||
Allowance for credit losses to total loans | 1.53 | % | 1.50 | % | 1.50 | % | ||||||||||||||||||
Nonaccrual loans to total loans | 0.9 | % | 1.4 | % | 1.2 | % | 0.6 | % | 0.9 | % | 0.8 | % | ||||||||||||
Allowance for loan losses to nonaccrual loans | 174.3 | % | 116.6 | % | 136.8 | % | ||||||||||||||||||
Allowance for credit losses to nonaccrual loans | 263.9 | % | 174.3 | % | 180.9 | % |
September 30, 2023 | December 31, 2022 | |||||||
Non-interest bearing transaction | 44.1 | % | 44.9 | % | ||||
Interest-bearing transaction | 23.2 | % | 25.9 | % | ||||
Savings and MMDA | 25.5 | % | 26.6 | % | ||||
Time | 7.2 | % | 2.6 | % |
(in thousands) | (in thousands) | |||||||||||||||
September 30, 2022 | December 31, 2021 | September 30, 2023 | December 31, 2022 | |||||||||||||
Three months or less | $ | 2,255 | $ | 1,400 | $ | 1,652 | $ | 1,211 | ||||||||
Over three to six months | 1,210 | 1,940 | 3,294 | 1,012 | ||||||||||||
Over six to twelve months | 3,157 | 3,253 | 8,159 | 3,769 | ||||||||||||
Over twelve months | 3,557 | 4,404 | 5,752 | 3,248 | ||||||||||||
Total | $ | 10,179 | $ | 10,997 | $ | 18,857 | $ | 9,240 |
(amounts in thousands except percentage amounts) | (amounts in thousands except percentage amounts) | |||||||||||||||||||||||
Actual | Well Capitalized Ratio Requirement | Actual | Well Capitalized | |||||||||||||||||||||
Capital | Ratio | Capital | Ratio | Ratio Requirement | ||||||||||||||||||||
Leverage | $ | 165,756 | 8.50 | % | 5.0 | % | $ | 180,092 | 9.21 | % | 5.0 | % | ||||||||||||
Common Equity Tier 1 | $ | 165,756 | 14.29 | % | 6.5 | % | $ | 180,092 | 14.31 | % | 6.5 | % | ||||||||||||
Tier 1 Risk-Based | $ | 165,756 | 14.29 | % | 8.0 | % | $ | 180,092 | 14.31 | % | 8.0 | % | ||||||||||||
Total Risk-Based | $ | 180,266 | 15.54 | % | 10.0 | % | $ | 195,844 | 15.56 | % | 10.0 | % |
(a) | (b) | (c) | (d) | |||||||||||||
Period | Total number of shares purchased | Average price paid per share | Number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs | ||||||||||||
July 1 - July 31, 2022 | — | — | — | 32,614 | ||||||||||||
August 1 - August 31, 2022 | — | — | — | 32,614 | ||||||||||||
September 1 - September 30, 2022 | 2,000 | $ | 8.77 | 2,000 | 30,614 | |||||||||||
Total | 2,000 | 2,000 |
Exhibit Number | Description of Document | |
Rule 13a — 14(a) Certification of Chief Executive Officer | ||
Rule 13a — 14(a) Certification of Chief Financial Officer | ||
Statement of the Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) | ||
Statement of the Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) | ||
101.INS | ||
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | ||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
* Management contract or compensatory plan, contract, or arrangement. |
** In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act. |
FIRST NORTHERN COMMUNITY BANCORP | ||||
Date: | November 9, | By: | /s/ Kevin Spink | |
Kevin Spink, Executive Vice President / Chief Financial Officer | ||||
(Principal Financial Officer and Duly Authorized Officer) |