☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
2020
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Mississippi | 64-0666512 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
521 Main Street, Philadelphia, MS | 39350 | |
(Address of principal executive offices) | (Zip Code) |
Symbol(s) on Which Registered ☒☑ Yes ☐ No☒☑ Yes ☐ NoIndicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule12b-2 of the Exchange Act.Large accelerated filer ☐ Accelerated filer ☒☑Non-accelerated filer ☐ Smaller Reporting Company ☒☑Emerging growth company ☐ ☒☑ No6, 2019:5, 2020: 5,578,131
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 21,106,679 | $ | 12,592,130 | ||||
Interest bearing deposits with other banks | 61,234,815 | 8,079,742 | ||||||
Investment securities available for sale, at fair value | 434,145,569 | 444,746,454 | ||||||
Loans, net of allowance for loan losses of $3,805,579 in 2019 and $3,371,695 in 2018 | 469,692,103 | 425,905,093 | ||||||
Premises and equipment, net | 20,029,997 | 19,717,305 | ||||||
Other real estate owned, net | 3,383,444 | 3,440,148 | ||||||
Accrued interest receivable | 3,596,005 | 4,165,783 | ||||||
Cash surrender value of life insurance | 25,866,655 | 25,383,931 | ||||||
Deferred tax assets, net | 1,899,036 | 6,633,539 | ||||||
Other assets | 8,649,342 | 7,965,952 | ||||||
|
|
|
| |||||
TOTAL ASSETS | $ | 1,049,603,645 | $ | 958,630,077 | ||||
|
|
|
| |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 168,317,216 | $ | 170,029,729 | ||||
Interest-bearing NOW and money market accounts | 326,982,928 | 298,220,430 | ||||||
Savings deposits | 78,474,191 | 76,735,710 | ||||||
Certificates of deposit | 220,539,672 | 211,235,641 | ||||||
|
|
|
| |||||
Total deposits | 794,314,007 | 756,221,510 | ||||||
Securities sold under agreement to repurchase | 144,502,629 | 107,965,505 | ||||||
Accrued interest payable | 685,777 | 470,710 | ||||||
Deferred compensation payable | 9,336,912 | 9,052,972 | ||||||
Other liabilities | 1,765,255 | 1,053,063 | ||||||
|
|
|
| |||||
Total liabilities | 950,604,580 | 874,763,760 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, $0.20 par value, 22,500,000 shares authorized, 4,912,030 shares issued and outstanding at September 30, 2019 and 4,904,530 at December 31, 2018 | 982,406 | 980,906 | ||||||
Additionalpaid-in capital | 4,419,406 | 4,298,499 | ||||||
Retained earnings | 93,957,055 | 93,561,515 | ||||||
Accumulated other comprehensive loss, net of tax benefit of $119,614 at September 30, 2019 and $4,978,232 at December 31, 2018 | (359,802 | ) | (14,974,603 | ) | ||||
|
|
|
| |||||
Total shareholders’ equity | 98,999,065 | 83,866,317 | ||||||
|
|
|
| |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,049,603,645 | $ | 958,630,077 | ||||
|
|
|
|
September 30, 2020 (Unaudited) | December 31, 2019 (Audited) | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 13,710 | $ | 15,937 | ||||
Interest bearing deposits with other banks | 42,543 | 58,557 | ||||||
Federal funds sold | — | 1,600 | ||||||
Investment securities available for sale, at fair value | 582,698 | 464,383 | ||||||
Loans, net of allowance for loan losses of $4,494 in 2020 and $3,755 in 2019 | 651,139 | 573,312 | ||||||
Premises and equipment, net | 25,141 | 24,672 | ||||||
Other real estate owned, net | 3,413 | 3,552 | ||||||
Accrued interest receivable | 5,861 | 4,181 | ||||||
Cash surrender value of life insurance | 25,515 | 25,088 | ||||||
Deferred tax assets, net | 2,145 | 3,684 | ||||||
Other assets | 22,052 | 20,468 | ||||||
TOTAL ASSETS | $ | 1,374,217 | $ | 1,195,434 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 253,762 | $ | 190,406 | ||||
Interest-bearing NOW and money market accounts | 469,777 | 369,354 | ||||||
Savings deposits | 100,527 | 83,065 | ||||||
Certificates of deposit | 225,091 | 256,171 | ||||||
Total deposits | 1,049,157 | 898,996 | ||||||
Securities sold under agreement to repurchase | 176,978 | 170,410 | ||||||
Federal Home Loan Bank advances | 15,000 | — | ||||||
Accrued interest payable | 561 | 1,128 | ||||||
Deferred compensation payable | 9,584 | 9,453 | ||||||
Other liabilities | 5,438 | 2,647 | ||||||
Total liabilities | 1,256,718 | 1,082,634 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, $0.20 par value, 22,500,000 shares authorized, 5,587,070 shares issued and outstanding at September 30, 2020 and 5,578,131 at December 31, 2019 | 1,118 | 1,116 | ||||||
Additional paid-in capital | 18,092 | 17,883 | ||||||
Retained earnings | 95,273 | 94,590 | ||||||
Accumulated other comprehensive income (loss), net of tax (expense) benefit of ($1,003) at September 30, 2020 and $262 at December 31, 2019 | 3,016 | (789 | ) | |||||
Total shareholders’ equity | 117,499 | 112,800 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,374,217 | $ | 1,195,434 | ||||
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
INTEREST INCOME | ||||||||||||||||
Interest and fees on loans | $ | 5,940,805 | $ | 5,166,554 | $ | 17,220,751 | $ | 14,867,465 | ||||||||
Interest on securities | ||||||||||||||||
Taxable | 1,945,053 | 2,074,424 | 6,252,649 | 6,320,482 | ||||||||||||
Nontaxable | 345,238 | 622,050 | 1,474,886 | 1,933,104 | ||||||||||||
Other interest | 212,319 | 24,291 | 529,098 | 144,635 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total interest income | 8,443,415 | 7,887,319 | 25,477,384 | 23,265,686 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Deposits | 1,922,396 | 709,985 | 5,567,837 | 1,726,700 | ||||||||||||
Other borrowed funds | 602,730 | 458,039 | 1,575,580 | 1,062,505 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total interest expense | 2,525,126 | 1,168,024 | 7,143,417 | 2,789,205 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INTEREST INCOME | 5,918,289 | 6,719,295 | 18,333,967 | 20,476,481 | ||||||||||||
PROVISION FOR LOAN LOSSES | 11,738 | 288,576 | 472,036 | 140,765 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 5,906,551 | 6,430,719 | 17,861,931 | 20,335,716 | ||||||||||||
OTHER INCOME | ||||||||||||||||
Service charges on deposit accounts | 1,125,631 | 1,170,956 | 3,268,578 | 3,381,809 | ||||||||||||
Other service charges and fees | 863,407 | 761,935 | 2,316,715 | 2,147,452 | ||||||||||||
Other operating income | 516,862 | 287,683 | 1,039,696 | 870,153 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total other income | 2,505,900 | 2,220,574 | 6,624,989 | 6,399,414 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
OTHER EXPENSES | ||||||||||||||||
Salaries and employee benefits | 3,508,723 | 3,668,012 | 10,525,116 | 11,011,291 | ||||||||||||
Occupancy expense | 1,287,320 | 1,486,232 | 4,119,609 | 4,373,233 | ||||||||||||
Other expense | 2,071,595 | 1,739,780 | 5,185,179 | 5,505,070 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total other expenses | 6,867,638 | 6,894,024 | 19,829,904 | 20,889,594 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,544,813 | 1,757,269 | 4,657,016 | 5,845,536 | ||||||||||||
PROVISION FOR INCOME TAXES | 211,925 | 260,475 | 726,615 | 888,215 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCOME | $ | 1,332,888 | $ | 1,496,794 | $ | 3,930,401 | $ | 4,957,321 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCOME PER SHARE -Basic | $ | 0.27 | $ | 0.31 | $ | 0.80 | $ | 1.01 | ||||||||
|
|
|
|
|
|
|
| |||||||||
-Diluted | $ | 0.27 | $ | 0.31 | $ | 0.80 | $ | 1.01 | ||||||||
|
|
|
|
|
|
|
| |||||||||
DIVIDENDS PAID PER SHARE | $ | 0.24 | $ | 0.24 | $ | 0.72 | $ | 0.72 | ||||||||
|
|
|
|
|
|
|
|
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
INTEREST INCOME | ||||||||||||||||
Interest and fees on loans | $ | 7,805 | $ | 5,941 | $ | 22,917 | $ | 17,221 | ||||||||
Interest on securities | ||||||||||||||||
Taxable | 2,406 | 1,945 | 6,163 | 6,253 | ||||||||||||
Nontaxable | 360 | 345 | 1,064 | 1,475 | ||||||||||||
Other interest | 8 | 212 | 271 | 529 | ||||||||||||
Total interest income | 10,579 | 8,443 | 30,415 | 25,478 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Deposits | 1,506 | 1,922 | 5,087 | 5,568 | ||||||||||||
Other borrowed funds | 167 | 603 | 687 | 1,575 | ||||||||||||
Total interest expense | 1,673 | 2,525 | 5,774 | 7,143 | ||||||||||||
NET INTEREST INCOME | 8,906 | 5,918 | 24,641 | 18,335 | ||||||||||||
PROVISION FOR LOAN LOSSES | 247 | 12 | 1,183 | 472 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 8,659 | 5,906 | 23,458 | 17,863 | ||||||||||||
OTHER INCOME | ||||||||||||||||
Service charges on deposit accounts | 771 | 1,126 | 2,488 | 3,268 | ||||||||||||
Other service charges and fees | 1,031 | 863 | 2,675 | 2,317 | ||||||||||||
Other operating income | 835 | 517 | 2,325 | 1,039 | ||||||||||||
Total other income | 2,637 | 2,506 | 7,488 | 6,624 | ||||||||||||
OTHER EXPENSES | ||||||||||||||||
Salaries and employee benefits | 4,389 | 3,509 | 13,131 | 10,525 | ||||||||||||
Occupancy expense | 1,861 | 1,287 | 5,556 | 4,120 | ||||||||||||
Other expense | 2,403 | 2,071 | 6,377 | 5,185 | ||||||||||||
Total other expenses | 8,653 | 6,867 | 25,064 | 19,830 | ||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 2,643 | 1,545 | 5,882 | 4,657 | ||||||||||||
PROVISION FOR INCOME TAXES | 560 | 212 | 1,177 | 727 | ||||||||||||
NET INCOME | $ | 2,083 | $ | 1,333 | $ | 4,705 | $ | 3,930 | ||||||||
NET INCOME PER SHARE -Basic | $ | 0.37 | $ | 0.27 | $ | 0.84 | $ | 0.80 | ||||||||
-Diluted | $ | 0.37 | $ | 0.27 | $ | 0.84 | $ | 0.80 | ||||||||
DIVIDENDS PAID PER SHARE | $ | 0.24 | $ | 0.24 | $ | 0.72 | $ | 0.72 | ||||||||
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | 1,332,888 | $ | 1,496,794 | $ | 3,930,401 | $ | 4,957,321 | ||||||||
Other comprehensive income (loss) | ||||||||||||||||
Securitiesavailable-for-sale | ||||||||||||||||
Unrealized holding gains (losses) | 3,311,002 | (3,006,277 | ) | 19,283,111 | (13,656,532 | ) | ||||||||||
Income tax effect | (826,095 | ) | 750,067 | (4,811,136 | ) | 3,407,305 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
2,484,907 | (2,256,210 | ) | 14,471,975 | (10,249,227 | ) | |||||||||||
Reclassification adjustment for gains included in net income | 244,457 | 11,047 | 190,308 | 11,047 | ||||||||||||
Income tax effect | (60,992 | ) | (2,756 | ) | (47,482 | ) | (2,756 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
183,465 | 8,291 | 142,826 | 8,291 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total other comprehensive income (loss) | 2,668,372 | (2,247,919 | ) | 14,614,801 | (10,240,936 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Comprehensive income (loss) | $ | 4,001,260 | $ | (751,125 | ) | $ | 18,545,202 | $ | (5,283,615 | ) | ||||||
|
|
|
|
|
|
|
|
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income | $ | 2,083 | $ | 1,333 | $ | 4,705 | $ | 3,930 | ||||||||
Other comprehensive (loss) income | ||||||||||||||||
Securities available-for-sale | ||||||||||||||||
Unrealized holding (losses) gains | (3,831 | ) | 3,311 | 4,367 | 19,283 | |||||||||||
Income tax benefit (expense) | 956 | (826 | ) | (1,090 | ) | (4,811 | ) | |||||||||
(2,875 | ) | 2,485 | 3,277 | 14,472 | ||||||||||||
Reclassification adjustment for gains included in net income | 293 | 244 | 703 | 190 | ||||||||||||
Income tax expense | (73 | ) | (61 | ) | (175 | ) | (47 | ) | ||||||||
220 | 183 | 528 | 143 | |||||||||||||
Total other comprehensive (loss) income | (2,655 | ) | 2,668 | 3,805 | 14,615 | |||||||||||
Comprehensive (loss) income | $ | (572 | ) | $ | 4,001 | $ | 8,510 | $ | 18,545 | |||||||
For the Nine Months | ||||||||
Ended September 30, | ||||||||
2019 | 2018 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net cash provided by operating activities | $ | 8,867,757 | $ | 8,832,306 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Proceeds from maturities and calls of securities available for sale | 39,516,994 | 32,579,774 | ||||||
Proceeds from sale of investment securities | 96,171,622 | 17,609,890 | ||||||
Purchases of investment securities available for sale | (108,814,987 | ) | (10,550,000 | ) | ||||
Purchases of bank premises and equipment | (955,550 | ) | (268,708 | ) | ||||
Proceeds from sales of bank premises and equipment | — | 264,000 | ||||||
(Increase) decrease in interest bearing deposits with other banks | (53,155,073 | ) | 180,675 | |||||
Proceeds from sale of other real estate | 170,356 | 802,372 | ||||||
Net increase in loans | (44,381,330 | ) | (29,407,770 | ) | ||||
|
|
|
| |||||
Net cash (used in) provided by investing activities | (71,447,968 | ) | 11,210,233 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net increase in deposits | 38,092,497 | 36,694,834 | ||||||
Increase (decrease) in securities sold under agreement to repurchase | 36,537,124 | (53,589,022 | ) | |||||
Increase in federal funds purchased | — | 5,000,000 | ||||||
Repayment of Federal Home Loan Bank advances | — | (10,000,000 | ) | |||||
Proceeds from exercise of stock options | — | 27,000 | ||||||
Payment of dividends | (3,534,861 | ) | (3,528,904 | ) | ||||
|
|
|
| |||||
Net cash provided by (used in) financing activities | 71,094,760 | (25,396,092 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in cash and due from banks | 8,514,549 | (5,353,553 | ) | |||||
Cash and due from banks, beginning of period | 12,592,130 | 17,962,990 | ||||||
|
|
|
| |||||
Cash and due from banks, end of period | $ | 21,106,679 | $ | 12,609,437 | ||||
|
|
|
|
For the Nine Months | ||||||||
Ended September 30, | ||||||||
2020 | 2019 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net cash provided by operating activities | $ | 10,240 | $ | 8,868 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Proceeds from maturities and calls of securities available for sale | 179,028 | 39,517 | ||||||
Proceeds from sale of investment securities | 150,350 | 96,172 | ||||||
Purchases of investment securities available for sale | (446,873 | ) | (108,815 | ) | ||||
Purchases of bank premises and equipment | (1,271 | ) | (956 | ) | ||||
Proceeds from sales of bank premises and equipment | 124 | — | ||||||
Decrease in federal funds sold | 1,600 | — | ||||||
Decrease (increase) in interest bearing deposits with other banks | 16,014 | (53,155 | ) | |||||
Proceeds from sale of other real estate | 1,303 | 170 | ||||||
Net increase in loans | (80,536 | ) | (44,381 | ) | ||||
Net cash used in investing activities | (180,261 | ) | (71,448 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net increase in deposits | 150,162 | 38,092 | ||||||
Increase in securities sold under agreement to repurchase | 6,568 | 36,538 | ||||||
Increase in Federal Home Loan Bank advances | 15,000 | — | ||||||
Proceeds from exercise of stock options | 86 | — | ||||||
Payment of dividends | (4,022 | ) | (3,535 | ) | ||||
Net cash provided by financing activities | 167,794 | 71,095 | ||||||
Net (decrease) increase in cash and due from banks | (2,227 | ) | 8,515 | |||||
Cash and due from banks, beginning of period | 15,937 | 12,592 | ||||||
Cash and due from banks, end of period | $ | 13,710 | $ | 21,107 | ||||
2020
13, 2020.
The Company’s operating leases relate primarily to branch properties and related equipment. As a result of implementing ASU2016-02, we recognized an operating leaseright-of-use (“ROU”) asset of $1.086 million and an operating lease liability of $1.086 million on January 1, 2019, with no impact on our consolidated statements of income or condensed consolidated statements of cash flows compared to the prior lease accounting model. The ROU asset and liability are recorded in other assets and other liabilities, respectively, in the consolidated statements of condition. See Note 9. Premises and Equipment for additional information.
Newly Issued, But Not Yet Effective Accounting Standards
In June 2016, the FASB issued ASU2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU2016-13”). ASU2016-13 makes significant changes to the accounting for credit losses on financial instruments and disclosures about them. The new current expected credit loss (CECL) impairment model will require an estimate of expected credit losses, measured over the contractual life of an instrument, which considers reasonable and supportable forecasts of future economic conditions in addition
to information about past events and current conditions. The standard provides significant flexibility and requires a high degree of judgment with regards to pooling financial assets with similar risk characteristics, determining the contractual terms of said financial assets and adjusting the relevant historical loss information in order to develop an estimate of expected lifetime losses. In addition, ASU2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. The amendments in ASU2016-13 are currently effective for fiscal years beginning after December 31, 2019, and interim periods within those years for public business entities that are SEC filers. However, in October 2019, the FASB approved deferral of the effective date for ASU 2016-13 for certain companies. The new effective date for the Company is January 1, 2023. ASU2016-13 permits the use of estimation techniques that are practical and relevant to the Company’s circumstances, as long as they are applied consistently over time and faithfully estimate expected credit losses in accordance with the standard. The ASU lists several common credit loss methods that are acceptable such as a discounted cash flow method, loss-rate method and probability of default/loss given default (PD/LGD) method. Depending on the nature of each identified pool of financial assets with similar risk characteristics, the Company currently plans on implementing a PD/LGD method or a loss-rate method to estimate expected credit losses. The Company expects ASU2016-13 to have a significantmaterial impact on the Company’s accounting policies, internal controls overCorporation’s financial reporting and footnote disclosures. The Company has assessed its data and system needs and has begun designing its financial models to estimate expected credit losses in accordance with the standard. Further development, testing and evaluation of said models is required to determine the impact that adoption of this standard will have on the financial condition and results of operations of the Company.
statements.
PriorFor further information regarding the merger with Charter, see the Notes to any determinationConsolidated Financial Statements of purchase accounting adjustments, as a result ofCitizens Holding Company included in the acquisition,Company’s Annual Report on Form
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Basic weighted average shares outstanding | 4,900,030 | 4,899,520 | 4,896,871 | 4,888,372 | ||||||||||||
Dilutive effect of granted options | 1,465 | 5,093 | 2,321 | 9,586 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Diluted weighted average shares outstanding | 4,901,495 | 4,904,613 | 4,899,192 | 4,897,958 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net income | $ | 1,332,888 | $ | 1,496,794 | $ | 3,930,401 | $ | 4,957,321 | ||||||||
Net income per share-basic | $ | 0.27 | $ | 0.31 | $ | 0.80 | $ | 1.01 | ||||||||
Net income per share-diluted | $ | 0.27 | $ | 0.31 | $ | 0.80 | $ | 1.01 |
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Basic weighted average shares outstanding | 5,578,281 | 4,900,030 | 5,574,060 | 4,896,871 | ||||||||||||
Dilutive effect of granted options | 2,447 | 1,465 | 2,824 | 2,321 | ||||||||||||
Diluted weighted average shares outstanding | 5,580,728 | 4,901,495 | 5,576,884 | 4,899,192 | ||||||||||||
Net income | $ | 2,083 | $ | 1,333 | $ | 4,705 | $ | 3,930 | ||||||||
Net income per share-basic | $ | 0.37 | $ | 0.27 | $ | 0.84 | $ | 0.80 | ||||||||
Net income per share-diluted | $ | 0.37 | $ | 0.27 | $ | 0.84 | $ | 0.80 |
Directors’ Plan | 2013 Plan | |||||||||||||||
Weighted | Weighted | |||||||||||||||
Number | Average | Number | Average | |||||||||||||
of | Exercise | of | Exercise | |||||||||||||
Shares | Price | Shares | Price | |||||||||||||
Outstanding at December 31, 2018 | 52,500 | $ | 21.55 | — | $ | — | ||||||||||
Granted | — | — | — | — | ||||||||||||
Exercised | — | — | — | — | ||||||||||||
Expired | (12,000 | ) | 21.75 | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding at September 30, 2019 | 40,500 | $ | 21.49 | — | $ | — | ||||||||||
|
|
|
|
|
|
|
|
2020:
Directors’ Plan | 2013 Plan | |||||||||||||||
Weighted | Weighted | |||||||||||||||
Number | Average | Number | Average | |||||||||||||
of | Exercise | of | Exercise | |||||||||||||
Shares | Price | Shares | Price | |||||||||||||
Outstanding at December 31, 2019 | 40,500 | $ | 21.49 | 0 | $ | 0 | ||||||||||
Granted | 0 | 0 | 0 | 0 | ||||||||||||
Exercised | (7,500 | ) | 19.26 | 0 | 0 | |||||||||||
Expired | (13,500 | ) | 25.72 | 0 | 0 | |||||||||||
Outstanding at September 30, 2020 | 19,500 | $ | 19.42 | 0 | $ | 0 | ||||||||||
2020.
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
September 30, 2019 | Cost | Gains | Losses | Fair Value | ||||||||||||
Securitiesavailable-for-sale | ||||||||||||||||
Obligations of U.S. Government agencies | $ | 98,400,709 | $ | 22,134 | $ | 441,703 | $ | 97,981,140 | ||||||||
Mortgage backed securities | 276,342,668 | 839,052 | 1,583,407 | 275,598,313 | ||||||||||||
State, County, Municipals | 59,881,608 | 744,167 | 59,659 | 60,566,116 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 434,624,985 | $ | 1,605,353 | $ | 2,084,769 | $ | 434,145,569 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
December 31, 2018 | Cost | Gains | Losses | Fair Value | ||||||||||||
Securitiesavailable-for-sale | ||||||||||||||||
Obligations of U.S. Government agencies | $ | 99,365,930 | $ | — | $ | 3,388,147 | $ | 95,977,783 | ||||||||
Mortgage backed securities | 259,742,501 | 4,921 | 12,373,269 | 247,374,153 | ||||||||||||
State, County, Municipals | 105,590,858 | 67,888 | 4,264,228 | 101,394,518 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 464,699,289 | $ | 72,809 | $ | 20,025,644 | $ | 444,746,454 | ||||||||
|
|
|
|
|
|
|
|
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
September 30, 2020 | Cost | Gains | Losses | Fair Value | ||||||||||||
Securities available-for-sale | ||||||||||||||||
Obligations of U.S. Government agencies | $ | 6,906 | $ | 193 | $ | — | $ | 7,099 | ||||||||
Mortgage backed securities | 506,070 | 5,225 | 4,003 | 507,292 | ||||||||||||
State, County, Municipals | 65,195 | 2,607 | 4 | 67,798 | ||||||||||||
Other Securities | 500 | 9 | — | 509 | ||||||||||||
Total | $ | 578,671 | $ | 8,034 | $ | 4,007 | $ | 582,698 | ||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
December 31, 2019 | Cost | Gains | Losses | Fair Value | ||||||||||||
Securities available-for-sale | ||||||||||||||||
Obligations of U.S. Government agencies | $ | 97,400 | $ | — | $ | 289 | $ | 97,111 | ||||||||
Mortgage backed securities | 308,310 | 640 | 2,050 | 306,900 | ||||||||||||
State, County, Municipals | 59,724 | 708 | 60 | 60,372 | ||||||||||||
Total | $ | 465,434 | $ | 1,348 | $ | 2,399 | $ | 464,383 | ||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Available-for-sale | ||||||||||||||||
Due in one year or less | $ | 345,000 | $ | 344,200 | $ | 1,875,288 | $ | 1,877,665 | ||||||||
Due after one year through five years | 95,296,476 | 94,888,785 | 91,948,838 | 89,121,194 | ||||||||||||
Due after five years through ten years | 12,338,444 | 12,457,030 | 32,801,788 | 31,718,293 | ||||||||||||
Due after ten years | 50,302,397 | 50,857,242 | 78,330,873 | 74,655,149 | ||||||||||||
Residential mortgage backed securities | 217,007,709 | 216,247,964 | 187,776,954 | 179,235,806 | ||||||||||||
Commercial mortgage backed securities | 59,334,959 | 59,350,348 | 71,965,548 | 68,138,347 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 434,624,985 | $ | 434,145,569 | $ | 464,699,289 | $ | 444,746,454 | ||||||||
|
|
|
|
|
|
|
|
September 30, 2020 | December 31, 2019 | |||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Available-for-sale | ||||||||||||||||
Due in one year or less | $ | 500 | $ | 509 | $ | 345 | $ | 345 | ||||||||
Due after one year through five years | 3,230 | 3,314 | 89,920 | 89,681 | ||||||||||||
Due after five years through ten years | 17,644 | 18,381 | 18,678 | 18,808 | ||||||||||||
Due after ten years | 51,227 | 53,202 | 48,181 | 48,649 | ||||||||||||
Residential mortgage backed securities | 474,568 | 473,950 | 259,309 | 258,415 | ||||||||||||
Commercial mortgage backed securities | 31,502 | 33,342 | 49,001 | 48,485 | ||||||||||||
Total | $ | 578,671 | $ | 582,698 | $ | 465,434 | $ | 464,383 | ||||||||
2019.
September 30, 2019 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
Obligations of U.S. government agencies | $ | 38,652,471 | $ | 308,973 | $ | 20,367,270 | $ | 132,730 | $ | 59,019,741 | $ | 441,703 | ||||||||||||
Mortgage backed securities | 32,441,833 | 187,039 | 108,373,816 | 1,396,368 | 140,815,649 | 1,583,407 | ||||||||||||||||||
State, County, Municipal | 7,174,822 | 24,415 | 3,732,036 | 35,244 | 10,906,858 | 59,659 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 78,269,126 | $ | 520,427 | $ | 132,473,122 | $ | 1,564,342 | $ | 210,742,248 | $ | 2,084,769 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
December 31, 2018 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
Obligations of U.S. government agencies | $ | — | $ | — | $ | 95,977,783 | $ | 3,388,147 | $ | 95,977,783 | $ | 3,388,147 | ||||||||||||
Mortgage backed securities | 12,257,636 | 179,281 | 234,928,705 | 12,193,988 | 247,186,341 | 12,373,269 | ||||||||||||||||||
State, County, Municipal | 12,623,964 | 285,275 | 76,535,741 | 3,978,953 | 89,159,705 | 4,264,228 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 24,881,600 | $ | 464,556 | $ | 407,442,229 | $ | 19,561,088 | $ | 432,323,829 | $ | 20,025,644 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Mortgage backed securities | $ | 288,233 | $ | 4,003 | $ | — | $ | — | $ | 288,233 | $ | 4,003 | ||||||||||||
State, County, Municipal | 3,366 | 4 | — | — | 3,366 | 4 | ||||||||||||||||||
Total | $ | 291,599 | $ | 4,007 | $ | — | $ | — | $ | 291,599 | $ | 4,007 | ||||||||||||
December 31, 2019 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Obligations of U.S. government agencies | $ | 76,682 | $ | 217 | $ | 20,429 | $ | 72 | $ | 97,111 | $ | 289 | ||||||||||||
Mortgage backed securities | 101,730 | 871 | 76,630 | 1,179 | 178,360 | 2,050 | ||||||||||||||||||
State, County, Municipal | 8,280 | 37 | 3,731 | 23 | 12,011 | 60 | ||||||||||||||||||
Total | $ | 186,692 | $ | 1,125 | $ | 100,790 | $ | 1,274 | $ | 287,482 | $ | 2,399 | ||||||||||||
September 30, 2019 | December 31, 2018 | |||||||
Real Estate: | ||||||||
Land Development and Construction | $ | 63,491 | $ | 41,134 | ||||
Farmland | 15,985 | 14,498 | ||||||
1-4 Family Mortgages | 86,516 | 88,747 | ||||||
Commercial Real Estate | 205,968 | 203,595 | ||||||
|
|
|
| |||||
Total Real Estate Loans | 371,960 | 347,974 | ||||||
Business Loans: | ||||||||
Commercial and Industrial Loans | 87,480 | 66,421 | ||||||
Farm Production and Other Farm Loans | 742 | 907 | ||||||
|
|
|
| |||||
Total Business Loans | 88,222 | 67,328 | ||||||
Consumer Loans: | ||||||||
Credit Cards | 1,744 | 1,648 | ||||||
Other Consumer Loans | 11,584 | 12,372 | ||||||
|
|
|
| |||||
Total Consumer Loans | 13,328 | 14,020 | ||||||
|
|
|
| |||||
Total Gross Loans | 473,510 | 429,322 | ||||||
Unearned Income | (12 | ) | (45 | ) | ||||
Allowance for Loan Losses | (3,806 | ) | (3,372 | ) | ||||
|
|
|
| |||||
Loans, net | $ | 469,692 | $ | 425,905 | ||||
|
|
|
|
September 30, 2020 | December 31, 2019 | |||||||
Real Estate: | ||||||||
Land Development and Construction | $ | 85,684 | $ | 66,428 | ||||
Farmland | 14,728 | 15,595 | ||||||
1-4 Family Mortgages | 90,040 | 87,631 | ||||||
Commercial Real Estate | 242,070 | 207,604 | ||||||
Total Real Estate Loans | 432,522 | 377,258 | ||||||
Business Loans: | ||||||||
Commercial and Industrial Loans (1) | 136,559 | 84,611 | ||||||
Farm Production and Other Farm Loans | 572 | 683 | ||||||
Total Business Loans | 137,131 | 85,294 | ||||||
Consumer Loans: | ||||||||
Credit Cards | 1,742 | 1,833 | ||||||
Other Consumer Loans | 11,055 | 12,060 | ||||||
Total Consumer Loans | 12,797 | 13,893 | ||||||
Total Gross Loans | 582,450 | 476,445 | ||||||
Unearned Income | (2 | ) | (8 | ) | ||||
Allowance for Loan Losses | (4,494 | ) | (3,755 | ) | ||||
Loans, net | $ | 577,954 | $ | 472,682 | ||||
(1) | Includes PPP loans of $48,830 and $-0- |
September 30, 2019 | December 31, 2018 | |||||||
Real Estate: | ||||||||
Land Development and Construction | $ | 113 | $ | — | ||||
Farmland | 246 | 200 | ||||||
1-4 Family Mortgages | 2,057 | 1,831 | ||||||
Commercial Real Estate | 9,484 | 7,612 | ||||||
|
|
|
| |||||
Total Real Estate Loans | 11,900 | 9,643 | ||||||
Business Loans: | ||||||||
Commercial and Industrial Loans | 363 | 76 | ||||||
Farm Production and Other Farm Loans | 31 | 31 | ||||||
|
|
|
| |||||
Total Business Loans | 394 | 107 | ||||||
Consumer Loans: | ||||||||
Other Consumer Loans | 65 | 89 | ||||||
|
|
|
| |||||
Total Consumer Loans | 65 | 89 | ||||||
|
|
|
| |||||
Total Nonaccrual Loans | $ | 12,359 | $ | 9,839 | ||||
|
|
|
|
September 30, 2020 | December 31, 2019 | |||||||
Real Estate: | ||||||||
Land Development and Construction | $ | 315 | $ | 111 | ||||
Farmland | 346 | 232 | ||||||
1-4 Family Mortgages | 1,975 | 2,160 | ||||||
Commercial Real Estate | 7,077 | 9,082 | ||||||
Total Real Estate Loans | 9,713 | 11,585 | ||||||
Business Loans: | ||||||||
Commercial and Industrial Loans | 442 | 338 | ||||||
Farm Production and Other Farm Loans | 10 | 10 | ||||||
Total Business Loans | 452 | 348 | ||||||
Consumer Loans: | ||||||||
Other Consumer Loans | 40 | 60 | ||||||
Total Consumer Loans | 40 | 60 | ||||||
Total Nonaccrual Loans | $ | 10,205 | $ | 11,993 | ||||
Accruing | ||||||||||||||||||||||||
Loans | Loans | |||||||||||||||||||||||
Loans | 90 or more | 90 or more | ||||||||||||||||||||||
30-89 Days | Days | Total Past | Current | Total | Days | |||||||||||||||||||
Past Due | Past Due | Due Loans | Loans | Loans | Past Due | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 2,218 | $ | — | $ | 2,218 | $ | 61,273 | $ | 63,491 | $ | — | ||||||||||||
Farmland | 339 | — | 339 | 15,646 | 15,985 | — | ||||||||||||||||||
1-4 Family Mortgages | 1,832 | 912 | 2,744 | 83,772 | 86,516 | 220 | ||||||||||||||||||
Commercial Real Estate | 1,688 | 2,335 | 4,023 | 201,945 | 205,968 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Real Estate Loans | 6,077 | 3,247 | 9,324 | 362,636 | 371,960 | 220 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 648 | 262 | 910 | 86,570 | 87,480 | — | ||||||||||||||||||
Farm Production and Other Farm Loans | — | 31 | 31 | 711 | 742 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Business Loans | 648 | 293 | 941 | 87,281 | 88,222 | — | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Credit Cards | 18 | 47 | 65 | 1,679 | 1,744 | 47 | ||||||||||||||||||
Other Consumer Loans | 141 | 5 | 146 | 11,438 | 11,584 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Consumer Loans | 159 | 52 | 211 | 13,117 | 13,328 | 47 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Loans | $ | 6,884 | $ | 3,592 | $ | 10,476 | $ | 463,034 | $ | 473,510 | $ | 267 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89 Days Past Due | Loans 90 or more Days Past Due | Total Past Due Loans | Current Loans | Total Loans | Accruing Loans 90 or more Days Past Due | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 5 | $ | 0 | $ | 5 | $ | 85,679 | $ | 85,684 | $ | — | ||||||||||||
Farmland | 171 | 0 | 171 | 14,557 | 14,728 | 0 | ||||||||||||||||||
1-4 Family Mortgages | 1,418 | 490 | 1,908 | 88,132 | 90,040 | 130 | ||||||||||||||||||
Commercial Real Estate | 312 | 1,145 | 1,457 | 240,613 | 242,070 | 116 | ||||||||||||||||||
Total Real Estate Loans | 1,906 | 1,635 | 3,541 | 428,981 | 432,522 | 246 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 116 | 415 | 531 | 136,028 | 136,559 | 0 | ||||||||||||||||||
Farm Production and Other Farm Loans | 8 | — | 8 | 564 | 572 | — | ||||||||||||||||||
Total Business Loans | 124 | 415 | 539 | 136,592 | 137,131 | 0 | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Credit Cards | 12 | 0 | 12 | 1,730 | 1,742 | 0 | ||||||||||||||||||
Other Consumer Loans | 34 | 0 | 34 | 11,021 | 11,055 | 0 | ||||||||||||||||||
Total Consumer Loans | 46 | 0 | 46 | 12,751 | 12,797 | 0 | ||||||||||||||||||
Total Loans | $ | 2,076 | $ | 2,050 | $ | 4,126 | $ | 578,324 | $ | 582,450 | $ | 246 | ||||||||||||
Accruing | ||||||||||||||||||||||||
Loans | Loans | |||||||||||||||||||||||
Loans | 90 or more | 90 or more | ||||||||||||||||||||||
30-89 Days | Days | Total Past | Current | Total | Days | |||||||||||||||||||
Past Due | Past Due | Due Loans | Loans | Loans | Past Due | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 1,494 | $ | 54 | $ | 1,548 | $ | 39,586 | $ | 41,134 | $ | 54 | ||||||||||||
Farmland | 779 | 29 | 808 | 13,690 | 14,498 | — | ||||||||||||||||||
1-4 Family Mortgages | 3,456 | 330 | 3,786 | 84,961 | 88,747 | — | ||||||||||||||||||
Commercial Real Estate | 1,059 | 2,981 | 4,040 | 199,555 | 203,595 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Real Estate Loans | 6,788 | 3,394 | 10,182 | 337,792 | 347,974 | 54 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 1,672 | 21 | 1,693 | 64,728 | 66,421 | — | ||||||||||||||||||
Farm Production and Other Farm Loans | 9 | — | 9 | 898 | 907 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Business Loans | 1,681 | 21 | 1,702 | 65,626 | 67,328 | — | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Credit Cards | 16 | 4 | 20 | 1,628 | 1,648 | 4 | ||||||||||||||||||
Other Consumer Loans | 212 | 33 | 245 | 12,127 | 12,372 | 15 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Consumer Loans | 228 | 37 | 265 | 13,755 | 14,020 | 19 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Loans | $ | 8,697 | $ | 3,452 | $ | 12,149 | $ | 417,173 | $ | 429,322 | $ | 73 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89 Days Past Due | Loans 90 or more Days Past Due | Total Past Due Loans | Current Loans | Total Loans | Accruing Loans 90 or more Days Past Due | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 736 | $ | — | $ | 736 | $ | 65,692 | $ | 66,428 | $ | — | ||||||||||||
Farmland | 171 | 39 | 210 | 15,385 | 15,595 | 39 | ||||||||||||||||||
1-4 Family Mortgages | 3,116 | 777 | 3,893 | 83,738 | 87,631 | 147 | ||||||||||||||||||
Commercial Real Estate | 8,511 | 2,080 | 10,591 | 197,013 | 207,604 | 18 | ||||||||||||||||||
Total Real Estate Loans | 12,534 | 2,896 | 15,430 | 361,828 | 377,258 | 204 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 586 | 312 | 898 | 83,713 | 84,611 | 52 | ||||||||||||||||||
Farm Production and Other Farm Loans | 17 | — | 17 | 666 | 683 | — | ||||||||||||||||||
Total Business Loans | 603 | 312 | 915 | 84,379 | 85,294 | 52 | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Credit Cards | 45 | 18 | 63 | 1,770 | 1,833 | 18 | ||||||||||||||||||
Other Consumer Loans | 172 | 42 | 214 | 11,846 | 12,060 | — | ||||||||||||||||||
Total Consumer Loans | 217 | 60 | 277 | 13,616 | 13,893 | 18 | ||||||||||||||||||
Total Loans | $ | 13,354 | $ | 3,268 | $ | 16,622 | $ | 459,823 | $ | 476,445 | $ | 274 | ||||||||||||
Unpaid Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 316 | $ | 263 | $ | 53 | $ | 316 | $ | 13 | $ | 214 | ||||||||||||
Farmland | 152 | 152 | — | 152 | — | 202 | ||||||||||||||||||
1-4 Family Mortgages | 1,042 | 1,036 | 6 | 1,042 | 3 | 941 | ||||||||||||||||||
Commercial Real Estate | 7,984 | 3,273 | 4,519 | 7,792 | 649 | 8,791 | ||||||||||||||||||
Total Real Estate Loans | 9,494 | 4,724 | 4,578 | 9,302 | 665 | 10,147 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 416 | 56 | 360 | 416 | 129 | 280 | ||||||||||||||||||
Total Business Loans | 416 | 56 | 360 | 416 | 129 | 280 | ||||||||||||||||||
Total Loans | $ | 9,910 | $ | 4,780 | $ | 4,938 | $ | 9,718 | $ | 794 | $ | 10,427 | ||||||||||||
Recorded | Recorded | |||||||||||||||||||||||
Unpaid | Investment | Investment | Total | Average | ||||||||||||||||||||
Principal | With No | With | Recorded | Related | Recorded | |||||||||||||||||||
Balance | Allowance | Allowance | Investment | Allowance | Investment | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 113 | $ | 59 | $ | 54 | $ | 113 | $ | 17 | $ | 57 | ||||||||||||
Farmland | 253 | 253 | — | 253 | — | $ | 261 | |||||||||||||||||
1-4 Family Mortgages | 863 | 761 | 102 | 863 | 30 | $ | 1,008 | |||||||||||||||||
Commercial Real Estate | 11,919 | 6,104 | 4,099 | 10,203 | 459 | $ | 9,544 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Real Estate Loans | 13,148 | 7,177 | 4,255 | 11,432 | 506 | $ | 10,869 | |||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 144 | — | 144 | 144 | 72 | $ | 72 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Business Loans | 144 | — | 144 | 144 | 72 | $ | 72 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Loans | $ | 13,292 | $ | 7,177 | $ | 4,399 | $ | 11,576 | $ | 578 | $ | 10,941 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans (in thousands) as
Unpaid Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 111 | $ | 58 | $ | 53 | $ | 111 | $ | 16 | $ | 56 | ||||||||||||
Farmland | 252 | 252 | — | 252 | — | 261 | ||||||||||||||||||
1-4 Family Mortgages | 839 | 740 | 99 | 839 | 28 | 996 | ||||||||||||||||||
Commercial Real Estate | 11,506 | 5,949 | 3,840 | 9,789 | 566 | 9,337 | ||||||||||||||||||
Total Real Estate Loans | 12,708 | 6,999 | 3,992 | 10,991 | 610 | 10,650 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 144 | 0 | 144 | 144 | 72 | 72 | ||||||||||||||||||
Total Business Loans | 144 | 0 | 144 | 144 | 72 | 72 | ||||||||||||||||||
Total Loans | $ | 12,852 | $ | 6,999 | $ | 4,136 | $ | 11,135 | $ | 682 | $ | 10,722 | ||||||||||||
Pre-Modification | Post-Modification | |||||||||||
Outstanding | Outstanding | |||||||||||
Number of | Recorded | Recorded | ||||||||||
September 30, 2019 | Loans | Investment | Investment | |||||||||
Commercial real estate | 3 | $ | 4,871 | $ | 2,607 | |||||||
|
|
|
|
|
| |||||||
Total | 3 | $ | 4,871 | $ | 2,607 | |||||||
|
|
|
|
|
| |||||||
Pre-Modification | Post-Modification | |||||||||||
Outstanding | Outstanding | |||||||||||
Number of | Recorded | Recorded | ||||||||||
December 31, 2018 | Loans | Investment | Investment | |||||||||
Commercial real estate | 3 | $ | 4,871 | $ | 2,782 | |||||||
|
|
|
|
|
| |||||||
Total | 3 | $ | 4,871 | $ | 2,782 | |||||||
|
|
|
|
|
|
September 30, 2020 | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||
Commercial real estate | 3 | $ | 4,871 | $ | 2,377 | |||||||
Total | 3 | $ | 4,871 | $ | 2,377 | |||||||
December 31, 2019 | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||
Commercial real estate | 3 | $ | 4,871 | $ | 2,495 | |||||||
Total | 3 | $ | 4,871 | $ | 2,495 | |||||||
Number of Loans | Recorded Investment | |||||||
Totals at January 1, 2018 | 3 | $ | 3,047 | |||||
Reductions due to: | ||||||||
Principal paydowns | (265 | ) | ||||||
|
|
|
| |||||
Totals at January 1, 2019 | 3 | $ | 2,782 | |||||
Reductions due to: | ||||||||
Principal paydowns | (175 | ) | ||||||
|
|
|
| |||||
Total at September 30, 2019 | 3 | $ | 2,607 | |||||
|
|
|
|
Number of Loans | Recorded Investment | |||||||
Totals at January 1, 2019 | 3 | $ | 2,782 | |||||
Reductions due to: | ||||||||
Principal paydowns | (287 | ) | ||||||
Totals at January 1, 2020 | 3 | $ | 2,495 | |||||
Reductions due to: | ||||||||
Principal paydowns | (118 | ) | ||||||
Total at September 30, 2020 | 3 | $ | 2,377 | |||||
2020.
Special | ||||||||||||||||||||||||
Satisfactory | Mention | Substandard | Doubtful | Loss | Total | |||||||||||||||||||
1,2,3,4 | 5,6 | 7 | 8 | 9 | Loans | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 59,807 | $ | 1,716 | $ | 1,968 | $ | — | $ | — | $ | 63,491 | ||||||||||||
Farmland | 14,747 | 379 | 859 | — | — | 15,985 | ||||||||||||||||||
1-4 Family Mortgages | 77,590 | 1,924 | 7,002 | — | — | 86,516 | ||||||||||||||||||
Commercial Real Estate | 165,914 | 22,631 | 17,423 | — | — | 205,968 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Real Estate Loans | 318,058 | 26,650 | 27,252 | — | — | 371,960 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 83,337 | 144 | 3,999 | — | — | 87,480 | ||||||||||||||||||
Farm Production and Other Farm Loans | 707 | — | 4 | — | 31 | 742 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Business Loans | 84,044 | 144 | 4,003 | — | 31 | 88,222 | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Credit Cards | 1,679 | — | 65 | — | — | 1,744 | ||||||||||||||||||
Other Consumer Loans | 11,380 | 50 | 113 | 41 | — | 11,584 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Consumer Loans | 13,059 | 50 | 178 | 41 | — | 13,328 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Loans | $ | 415,161 | $ | 26,844 | $ | 31,433 | $ | 41 | $ | 31 | $ | 473,510 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Satisfactory 1,2,3,4 | Special Mention 5,6 | Substandard 7 | Doubtful 8 | Loss 9 | Total Loans | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 82,960 | $ | 1,921 | $ | 803 | $ | — | $ | — | $ | 85,684 | ||||||||||||
Farmland | 13,825 | 91 | 812 | — | — | 14,728 | ||||||||||||||||||
1-4 Family Mortgages | 81,766 | 2,274 | 6,000 | — | — | 90,040 | ||||||||||||||||||
Commercial Real Estate | 206,592 | 20,711 | 14,767 | — | — | 242,070 | ||||||||||||||||||
Total Real Estate Loans | 385,143 | 24,997 | 22,382 | — | — | 432,522 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 128,017 | 4,776 | 3,759 | — | 7 | 136,559 | ||||||||||||||||||
Farm Production and Other Farm Loans | 530 | 8 | 24 | — | 10 | 572 | ||||||||||||||||||
Total Business Loans | 128,547 | 4,784 | 3,783 | — | 17 | 137,131 | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Credit Cards | 1,730 | — | 12 | — | — | 1,742 | ||||||||||||||||||
Other Consumer Loans | 10,930 | 48 | 46 | 31 | — | 11,055 | ||||||||||||||||||
Total Consumer Loans | 12,660 | 48 | 58 | 31 | — | 12,797 | ||||||||||||||||||
Total Loans | $ | 526,350 | $ | 29,829 | $ | 26,223 | $ | 31 | $ | 17 | $ | 582,450 | ||||||||||||
Special | ||||||||||||||||||||||||
Satisfactory | Mention | Substandard | Doubtful | Loss | Total | |||||||||||||||||||
1,2,3,4 | 5,6 | 7 | 8 | 9 | Loans | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 39,726 | $ | 840 | $ | 568 | $ | — | $ | — | $ | 41,134 | ||||||||||||
Farmland | 13,248 | 339 | 911 | — | — | 14,498 | ||||||||||||||||||
1-4 Family Mortgages | 79,659 | 1,751 | 7,337 | — | — | 88,747 | ||||||||||||||||||
Commercial Real Estate | 172,217 | 17,938 | 13,440 | — | — | 203,595 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Real Estate Loans | 304,850 | 20,868 | 22,256 | — | — | 347,974 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 63,994 | 81 | 2,346 | — | — | 66,421 | ||||||||||||||||||
Farm Production and Other Farm Loans | 876 | — | 31 | — | — | 907 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Business Loans | 64,870 | 81 | 2,377 | — | — | 67,328 | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Credit Cards | 1,628 | — | 20 | — | — | 1,648 | ||||||||||||||||||
Other Consumer Loans | 12,181 | 65 | 71 | 55 | — | 12,372 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Consumer Loans | 13,809 | 65 | 91 | 55 | — | 14,020 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Loans | $ | 383,529 | $ | 21,014 | $ | 24,724 | $ | 55 | $ | — | $ | 429,322 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2019:
Satisfactory 1,2,3,4 | Special Mention 5,6 | Substandard 7 | Doubtful 8 | Loss 9 | Total Loans | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 64,112 | $ | 1,682 | $ | 634 | $ | — | $ | — | $ | 66,428 | ||||||||||||
Farmland | 14,533 | 331 | 731 | — | — | 15,595 | ||||||||||||||||||
1-4 Family Mortgages | 79,068 | 1,917 | 6,646 | — | — | 87,631 | ||||||||||||||||||
Commercial Real Estate | 169,270 | 21,266 | 17,068 | — | — | 207,604 | ||||||||||||||||||
�� | ||||||||||||||||||||||||
Total Real Estate Loans | 326,983 | 25,196 | 25,079 | — | — | 377,258 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 80,289 | 128 | 4,194 | — | — | 84,611 | ||||||||||||||||||
Farm Production and Other Farm Loans | 669 | — | 4 | — | 10 | 683 | ||||||||||||||||||
Total Business Loans | 80,958 | 128 | 4,198 | — | 10 | 85,294 | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Credit Cards | 1,770 | — | 63 | — | — | 1,833 | ||||||||||||||||||
Other Consumer Loans | 11,907 | 59 | 53 | 41 | — | 12,060 | ||||||||||||||||||
Total Consumer Loans | 13,677 | 59 | 116 | 41 | — | 13,893 | ||||||||||||||||||
Total Loans | $ | 421,618 | $ | 25,383 | $ | 29,393 | $ | 41 | $ | 10 | $ | 476,445 | ||||||||||||
September 30, 2020 | December 31, 2019 | |||||||
Real Estate: | ||||||||
Land Development and Construction | $ | 9,113 | $ | 14,722 | ||||
Farmland | 486 | 510 | ||||||
1-4 Family Mortgages | 26,097 | 35,952 | ||||||
Commercial Real Estate | 26,321 | 32,436 | ||||||
Total Real Estate Loans | 62,017 | 83,620 | ||||||
Business Loans: | ||||||||
Commercial and Industrial Loans | 9,280 | 14,153 | ||||||
Farm Production and Other Farm Loans | 845 | 884 | ||||||
Total Business Loans | 10,125 | 15,037 | ||||||
Consumer Loans: | ||||||||
Other Consumer Loans | 1,043 | 1,973 | ||||||
Total Consumer Loans | 1,043 | 1,973 | ||||||
Total Purchased Loans | $ | 73,185 | $ | 100,630 | ||||
Loans 30-89 Days Past Due | Loans 90 or more Days Past Due | Total Past Due Loans | Current Loans | Total Loans | Accruing Loans 90 or more Days Past Due | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 397 | $ | — | $ | 397 | $ | 8,716 | $ | 9,113 | $ | — | ||||||||||||
Farmland | — | — | — | 486 | 486 | — | ||||||||||||||||||
1-4 Family Mortgages | 149 | 77 | 226 | 25,871 | 26,097 | — | ||||||||||||||||||
Commercial Real Estate | — | 2 | 2 | 26,319 | 26,321 | — | ||||||||||||||||||
Total Real Estate Loans | 546 | 79 | 625 | 61,392 | 62,017 | — | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 429 | — | 429 | 8,851 | 9,280 | — | ||||||||||||||||||
Farm Production and Other Farm Loans | — | — | — | 845 | 845 | — | ||||||||||||||||||
Total Business Loans | 429 | — | 429 | 9,696 | 10,125 | — | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Other Consumer Loans | — | — | — | 1,043 | 1,043 | — | ||||||||||||||||||
Total Consumer Loans | — | — | — | 1,043 | 1,043 | — | ||||||||||||||||||
Total Loans | $ | 975 | $ | 79 | $ | 1,054 | $ | 72,131 | $ | 73,185 | $ | — | ||||||||||||
Loans 30-89 Days Past Due | Loans 90 or more Days Past Due | Total Past Due Loans | Current Loans | Total Loans | Accruing Loans 90 or more Days Past Due | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 528 | $ | — | $ | 528 | $ | 14,194 | $ | 14,722 | $ | — | ||||||||||||
Farmland | — | — | — | 510 | 510 | — | ||||||||||||||||||
1-4 Family Mortgages | 444 | — | 444 | 35,508 | 35,952 | — | ||||||||||||||||||
Commercial Real Estate | 603 | — | 603 | 31,833 | 32,436 | — | ||||||||||||||||||
Total Real Estate Loans | 1,575 | — | 1,575 | 82,045 | 83,620 | — | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 379 | 3 | 382 | 13,771 | 14,153 | — | ||||||||||||||||||
Farm Production and Other Farm Loans | — | — | — | 884 | 884 | — | ||||||||||||||||||
Total Business Loans | 379 | 3 | 382 | 14,655 | 15,037 | — | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Other Consumer Loans | 49 | 8 | 57 | 1,916 | 1,973 | — | ||||||||||||||||||
Total Consumer Loans | 49 | 8 | 57 | 1,916 | 1,973 | — | ||||||||||||||||||
Total Loans | $ | 2,003 | $ | 11 | $ | 2,014 | $ | 98,616 | $ | 100,630 | $ | — | ||||||||||||
Satisfactory 1,2,3,4 | Special Mention 5,6 | Substandard 7 | Doubtful 8 | Loss 9 | Total Loans | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 7,787 | $ | 1,297 | $ | 29 | $ | — | $ | — | $ | 9,113 | ||||||||||||
Farmland | 320 | 166 | — | — | — | 486 | ||||||||||||||||||
1-4 Family Mortgages | 23,612 | 1,559 | 926 | — | — | 26,097 | ||||||||||||||||||
Commercial Real Estate | 24,529 | 1,506 | 286 | — | — | 26,321 | ||||||||||||||||||
Total Real Estate Loans | 56,248 | 4,528 | 1,241 | — | — | 62,017 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 8,674 | 434 | 172 | — | — | 9,280 | ||||||||||||||||||
Farm Production and Other Farm Loans | 845 | — | — | — | — | 845 | ||||||||||||||||||
Total Business Loans | 9,519 | 434 | 172 | — | — | 10,125 | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Other Consumer Loans | 984 | 31 | 28 | — | — | 1,043 | ||||||||||||||||||
Total Consumer Loans | 984 | 31 | 28 | — | — | 1,043 | ||||||||||||||||||
Total Loans | $ | 66,751 | $ | 4,993 | $ | 1,441 | $ | — | $ | — | $ | 73,185 | ||||||||||||
Satisfactory 1,2,3,4 | Special Mention 5,6 | Substandard 7 | Doubtful 8 | Loss 9 | Total Loans | |||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Land Development and Construction | $ | 13,890 | $ | 789 | $ | 43 | $ | — | $ | — | $ | 14,722 | ||||||||||||
Farmland | 510 | — | — | — | — | 510 | ||||||||||||||||||
1-4 Family Mortgages | 33,737 | 1,535 | 680 | — | — | 35,952 | ||||||||||||||||||
Commercial Real Estate | 30,780 | 1,656 | — | — | — | 32,436 | ||||||||||||||||||
Total Real Estate Loans | 78,917 | 3,980 | 723 | — | — | 83,620 | ||||||||||||||||||
Business Loans: | ||||||||||||||||||||||||
Commercial and Industrial Loans | 13,545 | 608 | — | — | — | 14,153 | ||||||||||||||||||
Farm Production and Other Farm Loans | 884 | — | — | — | — | 884 | ||||||||||||||||||
Total Business Loans | 14,429 | 608 | — | — | — | 15,037 | ||||||||||||||||||
Consumer Loans: | ||||||||||||||||||||||||
Other Consumer Loans | 1,937 | 36 | — | — | — | 1,973 | ||||||||||||||||||
Total Consumer Loans | 1,937 | 36 | — | — | — | 1,973 | ||||||||||||||||||
Total Loans | $ | 95,283 | $ | 4,624 | $ | 723 | $ | — | $ | — | $ | 100,630 | ||||||||||||
September 30, 2020 | December 31, 2019 | |||||||
Real Estate: | ||||||||
Land Development and Construction | $ | 13 | $ | 43 | ||||
Farmland | 0 | 0 | ||||||
1-4 Family Mortgages | 330 | 706 | ||||||
Commercial Real Estate | 2 | 0 | ||||||
Total Real Estate Loans | 345 | 749 | ||||||
Total purchased credit deteriorated (PCD) loans | $ | 345 | $ | 749 | ||||
September 30, 2020 | December 31, 2019 | |||||||
Real Estate: | ||||||||
Land Development and Construction | $ | — | $ | — | ||||
1-4 Family Mortgages | 151 | 33 | ||||||
Commercial Real Estate | 2 | — | ||||||
Total Real Estate Loans | 153 | 33 | ||||||
Business Loans: | ||||||||
Commercial and Industrial Loans | 52 | — | ||||||
Total Business Loans | 52 | — | ||||||
Consumer Loans: | ||||||||
Other Consumer Loans | — | — | ||||||
Total Consumer Loans | — | — | ||||||
Total Purchased Nonaccrual Loans | $ | 205 | $ | 33 | ||||
Total Purchased Credit Deteriorated Loans | ||||
Contractually-required principal | $ | 993 | ||
Nonaccretable difference | (68 | ) | ||
Cash flows expected to be collected | 925 | |||
Accretable yield | (36 | ) | ||
Fair Value | $ | 889 | ||
Balance at January 1, 2020 | $ | (16 | ) | |
Additions through acquisition | — | |||
Reclasses from nonaccretable difference | (13 | ) | ||
Accretion | 11 | |||
Charge-off | — | |||
Balance at September 30, 2020 | $ | (18 | ) | |
October 1, 2019 | ||||
At acquisition date: | ||||
Contractually-required principal | $ | 104,127 | ||
Nonaccretable difference | (68 | ) | ||
Cash flows expected to be collected | 104,059 | |||
Accretable yield | (394 | ) | ||
Fair Value | $ | 103,665 | ||
September 30, 2020 | Real Estate | Business Loans | Consumer | Total | ||||||||||||
Beginning Balance, January 1, 2020 | $ | 3,075 | $ | 371 | $ | 309 | $ | 3,755 | ||||||||
Provision for loan losses | 729 | 450 | 4 | 1,183 | ||||||||||||
Charge-offs | 309 | 222 | 91 | 622 | ||||||||||||
Recoveries | 104 | 35 | 39 | 178 | ||||||||||||
Net charge-offs | 205 | 187 | 52 | 444 | ||||||||||||
Ending Balance | $ | 3,599 | $ | 634 | $ | 261 | $ | 4,494 | ||||||||
Period end allowance allocated to: | ||||||||||||||||
Loans individually evaluated for impairment | $ | 665 | $ | 129 | $ | — | $ | 794 | ||||||||
Loans collectively evaluated for impairment | 2,934 | 505 | 261 | 3,700 | ||||||||||||
Ending Balance, September 30, 2020 | $ | 3,599 | $ | 634 | $ | 261 | $ | 4,494 | ||||||||
Real | Business | |||||||||||||||
September 30, 2019 | Estate | Loans | Consumer | Total | ||||||||||||
Beginning Balance, January 1, 2019 | $ | 2,844,681 | $ | 221,841 | $ | 305,173 | $ | 3,371,695 | ||||||||
Provision for loan losses | (883 | ) | 269,917 | 203,002 | 472,036 | |||||||||||
Chargeoffs | 15,073 | 91,291 | 76,972 | 183,336 | ||||||||||||
Recoveries | 101,119 | 8,858 | 35,207 | 145,184 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net (recoveries) chargeoffs | (86,046 | ) | 82,433 | 41,765 | 38,152 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Ending Balance | $ | 2,929,844 | $ | 409,325 | $ | 466,410 | $ | 3,805,579 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Period end allowance allocated to: | ||||||||||||||||
Loans individually evaluated for impairment | $ | 506,560 | $ | 71,962 | $ | — | $ | 578,522 | ||||||||
Loans collectively evaluated for impairment | 2,423,284 | 337,363 | 466,410 | 3,227,057 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Ending Balance, September 30, 2019 | $ | 2,929,844 | $ | 409,325 | $ | 466,410 | $ | 3,805,579 | ||||||||
|
|
|
|
|
|
|
|
The following table details activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2018:
Real | Business | |||||||||||||||
September 30, 2018 | Estate | Loans | Consumer | Total | ||||||||||||
Beginning Balance, January 1, 2018 | $ | 2,151,715 | $ | 346,781 | $ | 520,732 | $ | 3,019,228 | ||||||||
Provision for (reversal of) loan losses | 615,927 | (289,894 | ) | (185,268 | ) | 140,765 | ||||||||||
Chargeoffs | 202,352 | 31,236 | 117,401 | 350,989 | ||||||||||||
Recoveries | 91,071 | 203,777 | 69,091 | 363,939 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net chargeoffs (recoveries) | 111,281 | (172,541 | ) | 48,310 | (12,950 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Ending Balance | $ | 2,656,361 | $ | 229,428 | $ | 287,154 | $ | 3,172,943 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Period end allowance allocated to: | ||||||||||||||||
Loans individually evaluated for impairment | $ | 409,496 | $ | — | $ | — | $ | 409,496 | ||||||||
Loans collectively evaluated for impairment | 2,246,865 | 229,428 | 287,154 | 2,763,447 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Ending Balance, September 30, 2018 | $ | 2,656,361 | $ | 229,428 | $ | 287,154 | $ | 3,172,943 | ||||||||
|
|
|
|
|
|
|
|
September 30, 2019 | Real Estate | Business Loans | Consumer | Total | ||||||||||||
Beginning Balance, January 1, 2019 | $ | 2,845 | $ | 222 | $ | 305 | $ | 3,372 | ||||||||
Provision for loan losses | (1 | ) | 270 | 203 | 472 | |||||||||||
Charge-offs | 15 | 92 | 77 | 184 | ||||||||||||
Recoveries | 101 | 9 | 35 | 145 | ||||||||||||
Net (recoveries) charge-offs | (86 | ) | 83 | 42 | 39 | |||||||||||
Ending Balance | $ | 2,930 | $ | 409 | $ | 466 | $ | 3,805 | ||||||||
Period end allowance allocated to: | ||||||||||||||||
Loans individually evaluated for impairment | $ | 506 | $ | 72 | $ | — | $ | 578 | ||||||||
Loans collectively evaluated for impairment | 2,424 | 337 | 466 | 3,227 | ||||||||||||
Ending Balance, September 30, 2019 | $ | 2,930 | $ | 409 | $ | 466 | $ | 3,805 | ||||||||
Real | Business | |||||||||||||||
September 30, 2019 | Estate | Loans | Consumer | Total | ||||||||||||
Loans individually evaluated for specific impairment | $ | 11,432 | $ | 144 | $ | — | $ | 11,576 | ||||||||
Loans collectively evaluated for general impairment | 360,528 | 88,078 | 13,328 | 461,934 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 371,960 | $ | 88,222 | $ | 13,328 | $ | 473,510 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Real | Business | |||||||||||||||
December 31, 2018 | Estate | Loans | Consumer | Total | ||||||||||||
Loans individually evaluated for specific impairment | $ | 10,306 | $ | — | $ | — | $ | 10,306 | ||||||||
Loans collectively evaluated for general impairment | 337,668 | 67,328 | 14,020 | 419,016 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 347,974 | $ | 67,328 | $ | 14,020 | $ | 429,322 | |||||||||
|
|
|
|
|
|
|
|
September 30, 2020 | Real Estate | Business Loans | Consumer | Total | ||||||||||||
Loans individually evaluated for specific impairment | $ | 9,302 | $ | 416 | $ | — | $ | 9,718 | ||||||||
Loans collectively evaluated for general impairment | 484,892 | 146,840 | 13,840 | 645,572 | ||||||||||||
Acquired with deteriorated credit quality | 345 | — | — | 345 | ||||||||||||
$494,539 | $147,256 | $13,840 | $655,635 | |||||||||||||
December 31, 2019 | Real Estate | Business Loans | Consumer | Total | ||||||||||||
Loans individually evaluated for specific impairment | $ | 10,991 | $ | 144 | $ | — | $ | 11,135 | ||||||||
Loans collectively evaluated for general impairment | 449,138 | 100,187 | 15,866 | 565,191 | ||||||||||||
Acquired with deteriorated credit quality | 749 | — | — | 749 | ||||||||||||
$460,878 | $100,331 | $15,866 | $577,075 | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2019 | September 30, 2019 | |||||||
(in thousands) | ||||||||
Operating lease cost | $ | 92 | $ | 277 | ||||
Short-term lease cost | 6 | 17 | ||||||
Variable lease cost | — | — | ||||||
|
|
|
| |||||
$ | 98 | $ | 294 | |||||
|
|
|
|
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||
(in thousands) | ||||||||
Operating lease cost | $ | 118 | $ | 303 | ||||
Short-term lease cost | 6 | 17 | ||||||
Variable lease cost | — | — | ||||||
$ | 124 | $ | 320 | |||||
Nine Months Ended | ||||
September 30, 2019 | ||||
(in thousands) | ||||
Lease payments due: | ||||
Within one year | $ | 348 | ||
After one year but within two years | 324 | |||
After two years but within three years | 194 | |||
After three year but within four years | 21 | |||
After four years but within five years | — | |||
After five years | — | |||
|
| |||
Total undiscounted cash flows | 887 | |||
Discount on cash flows | (36 | ) | ||
|
| |||
Total lease liability | $ | 851 | ||
|
|
Nine Months Ended September 30, 2020 | ||||
(in thousands) | ||||
Lease payments due: | ||||
Within one year | $ | 415 | ||
After one year but within two years | 1,994 | |||
After two years but within three years | 22 | |||
After three year but within four years | 0 | |||
After four years but within five years | — | |||
After five years | — | |||
Total undiscounted cash flows | 2,431 | |||
Discount on cash flows | (9 | ) | ||
Total lease liability | $ | 2,422 | ||
Total | ||||
Balance at January 1, 2020 | $ | 13,103 | ||
Measurement period adjustment to goodwill from Charter acquisition | (73 | ) | ||
Balance at September 30, 2020 | $ | 13,030 | ||
September 30, 2020 | December 31, 2019 | |||||||
Core deposit intangible | $ | 766 | $ | 766 | ||||
Accumulated amortization | (109 | ) | (27 | ) | ||||
Total finite-lived intangible assets | $ | 657 | $ | 739 | ||||
Year ending December 31, | Amount | |||
2020 | $ | 27 | ||
2021 | 109 | |||
2022 | 109 | |||
2023 | 109 | |||
2024 | 109 | |||
Thereafter | 194 | |||
$ | 657 | |||
Accumulated | ||||||||||||||||||||||||
Number | Additional | Other | ||||||||||||||||||||||
of Shares | Common | Paid-In | Comprehensive | Retained | ||||||||||||||||||||
Issued | Stock | Capital | Income (Loss) | Earnings | Total | |||||||||||||||||||
Balance, January 1, 2019 | 4,904,530 | $ | 980,906 | $ | 4,298,499 | $ | (14,974,603 | ) | $ | 93,561,515 | $ | 83,866,317 | ||||||||||||
Net income | — | — | — | — | 1,226,771 | 1,226,771 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,177,087 | ) | (1,177,087 | ) | ||||||||||||||||
Options exercised | — | — | — | — | — | — | ||||||||||||||||||
Restricted stock granted | — | — | — | — | — | — | ||||||||||||||||||
Stock compensation expense | — | — | 41,344 | — | — | 41,344 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | 6,621,712 | — | 6,621,712 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, March 31, 2019 | 4,904,530 | $ | 980,906 | $ | 4,339,843 | $ | (8,352,891 | ) | $ | 93,611,199 | $ | 90,579,057 | ||||||||||||
Net income | — | — | — | — | 1,370,742 | 1,370,742 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,178,887 | ) | (1,178,887 | ) | ||||||||||||||||
Options exercised | — | — | — | — | — | — | ||||||||||||||||||
Restricted stock granted | 7,500 | 1,500 | (1,500 | ) | — | — | — | |||||||||||||||||
Stock compensation expense | — | — | 40,694 | — | — | 40,694 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | 5,324,717 | — | 5,324,717 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, June 30, 2019 | 4,912,030 | $ | 982,406 | $ | 4,379,037 | $ | (3,028,174 | ) | $ | 93,803,054 | $ | 96,136,323 | ||||||||||||
Net income | — | — | — | — | 1,332,888 | 1,332,888 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,178,887 | ) | (1,178,887 | ) | ||||||||||||||||
Options exercised | — | — | — | — | — | — | ||||||||||||||||||
Restricted stock granted | — | — | — | — | — | — | ||||||||||||||||||
Stock compensation expense | — | — | 40,369 | — | — | 40,369 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | 2,668,372 | — | 2,668,372 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, September 30, 2019 | 4,912,030 | $ | 982,406 | $ | 4,419,406 | $ | (359,802 | ) | $ | 93,957,055 | $ | 98,999,065 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated | ||||||||||||||||||||||||
Number | Additional | Other | ||||||||||||||||||||||
of Shares | Common | Paid-In | Comprehensive | Retained | ||||||||||||||||||||
Issued | Stock | Capital | Income (Loss) | Earnings | Total | |||||||||||||||||||
Balance, January 1, 2018 | 4,894,705 | $ | 978,941 | $ | 4,103,139 | $ | (8,225,419 | ) | $ | 91,594,379 | $ | 88,451,040 | ||||||||||||
Net income | — | — | — | — | 1,772,387 | 1,772,387 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,174,729 | ) | (1,174,729 | ) | ||||||||||||||||
Options exercised | — | — | — | — | — | — | ||||||||||||||||||
Restricted stock granted | — | — | — | — | — | — | ||||||||||||||||||
Stock compensation expense | — | — | 45,056 | — | — | 45,056 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | (7,068,858 | ) | — | (7,068,858 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, March 31, 2018 | 4,894,705 | $ | 978,941 | $ | 4,148,195 | $ | (15,294,277 | ) | $ | 92,192,037 | $ | 82,024,896 | ||||||||||||
Net income | — | — | — | — | 1,688,140 | 1,688,140 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,177,087 | ) | (1,177,087 | ) | ||||||||||||||||
Options exercised | 2,325 | 465 | 26,535 | — | — | 27,000 | ||||||||||||||||||
Restricted stock granted | 7,500 | 1,500 | (1,500 | ) | — | — | — | |||||||||||||||||
Stock compensation expense | — | — | 42,581 | — | — | 42,581 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | (924,159 | ) | — | (924,159 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, June 30, 2018 | 4,904,530 | $ | 980,906 | $ | 4,215,811 | $ | (16,218,436 | ) | $ | 92,703,090 | $ | 81,681,371 | ||||||||||||
Net income | — | — | — | — | 1,496,794 | 1,496,794 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,177,088 | ) | (1,177,088 | ) | ||||||||||||||||
Options exercised | — | — | — | — | — | — | ||||||||||||||||||
Restricted stock granted | — | — | — | — | — | — | ||||||||||||||||||
Stock compensation expense | — | — | 41,344 | — | — | 41,344 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | (2,247,919 | ) | — | (2,247,919 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, September 30, 2018 | 4,904,530 | 980,906 | 4,257,155 | (18,466,355 | ) | 93,022,796 | 79,794,502 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares Issued | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total | |||||||||||||||||||
Balance, January 1, 2020 | 5,578,131 | $ | 1,116 | $ | 17,883 | $ | (789 | ) | $ | 94,590 | $ | 112,800 | ||||||||||||
Net income | — | — | — | — | 1,160 | 1,160 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,339 | ) | (1,339 | ) | ||||||||||||||||
Options exercised | 4,500 | 1 | 86 | — | — | 87 | ||||||||||||||||||
Restricted stock granted | — | — | — | — | — | — | ||||||||||||||||||
Stock compensation expense | — | — | 40 | — | — | 40 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | 5,996 | — | 5,996 | ||||||||||||||||||
Balance, March 31, 2020 | 5,582,631 | $ | 1,117 | $ | 18,009 | $ | 5,207 | $ | 94,411 | $ | 118,744 | |||||||||||||
Net income | — | — | — | — | 1,462 | 1,462 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,342 | ) | (1,342 | ) | ||||||||||||||||
Restricted stock forfeited | (4,500 | ) | (1 | ) | 1 | — | — | — | ||||||||||||||||
Restricted stock granted | 8,250 | 2 | (2 | ) | — | — | — | |||||||||||||||||
Stock compensation expense | — | — | 41 | — | — | 41 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | 464 | — | 464 | ||||||||||||||||||
Balance, June 30, 2020 | 5,586,381 | $ | 1,118 | $ | 18,049 | $ | 5,671 | $ | 94,531 | $ | 119,369 | |||||||||||||
Net income | — | — | — | — | 2,083 | 2,083 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,341 | ) | (1,341 | ) | ||||||||||||||||
Options exercised | 689 | — | — | — | — | — | ||||||||||||||||||
Restricted stock granted | — | — | — | — | — | — | ||||||||||||||||||
Stock compensation expense | — | — | 43 | — | — | 43 | ||||||||||||||||||
Other comprehensive loss, net | — | — | — | (2,655 | ) | — | (2,655 | ) | ||||||||||||||||
Balance, September 30, 2020 | 5,587,070 | $ | 1,118 | $ | 18,092 | $ | 3,016 | $ | 95,273 | $ | 117,499 | |||||||||||||
Number of Shares Issued | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total | |||||||||||||||||||
Balance, January 1, 2019 | 4,904,530 | $ | 981 | $ | 4,298 | $ | (14,975 | ) | $ | 93,562 | $ | 83,866 | ||||||||||||
Net income | — | — | — | — | 1,227 | 1,227 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,177 | ) | (1,177 | ) | ||||||||||||||||
Options exercised | — | — | — | — | — | — | ||||||||||||||||||
Restricted stock granted | — | — | — | — | — | — | ||||||||||||||||||
Stock compensation expense | — | — | 41 | — | — | 41 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | 6,622 | — | 6,622 | ||||||||||||||||||
Balance, March 31, 2019 | 4,904,530 | $ | 981 | $ | 4,339 | $ | (8,353 | ) | $ | 93,612 | $ | 90,579 | ||||||||||||
Net income | — | — | — | — | 1,371 | 1,371 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,179 | ) | (1,179 | ) | ||||||||||||||||
Options exercised | — | — | — | — | — | — | ||||||||||||||||||
Restricted stock granted | 7,500 | 2 | (2 | ) | — | — | — | |||||||||||||||||
Stock compensation expense | — | — | 41 | — | — | 41 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | 5,325 | — | 5,325 | ||||||||||||||||||
Balance, June 30, 2019 | 4,912,030 | $ | 983 | $ | 4,378 | $ | (3,028 | ) | $ | 93,804 | $ | 96,137 | ||||||||||||
Net income | — | — | — | — | 1,333 | 1,333 | ||||||||||||||||||
Dividends paid ($0.24 per share) | — | — | — | — | (1,179 | ) | (1,179 | ) | ||||||||||||||||
Options exercised | — | — | — | — | — | — | ||||||||||||||||||
Restricted stock granted | — | — | — | — | — | — | ||||||||||||||||||
Stock compensation expense | — | — | 40 | — | — | 40 | ||||||||||||||||||
Other comprehensive income, net | — | — | — | 2,668 | — | 2,668 | ||||||||||||||||||
Balance, September 30, 2019 | 4,912,030 | $ | 983 | $ | 4,418 | $ | (360 | ) | $ | 93,958 | $ | 98,999 | ||||||||||||
Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities; | |
Level 2 | Inputs other than quoted prices in active markets for identical assets and liabilities included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active; or | |
Level 3 | Unobservable inputs for an asset or liability, such as discounted cash flow models or valuations. |
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Securities available for sale | ||||||||||||||||
Obligations of U.S. Government Agencies | $ | — | $ | 97,981,140 | $ | — | $ | 97,981,140 | ||||||||
Mortgage-backed securities | — | 275,598,313 | — | 275,598,313 | ||||||||||||
State, county and municipal obligations | — | 60,566,116 | — | 60,566,116 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 434,145,569 | $ | — | $ | 434,145,569 | ||||||||
|
|
|
|
|
|
|
|
2020:
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Securities available for sale | ||||||||||||||||
Obligations of U.S. Government Agencies | $ | — | $ | 7,099 | $ | — | $ | 7,099 | ||||||||
Mortgage-backed securities | — | 507,292 | — | 507,292 | ||||||||||||
State, county and municipal obligations | — | 67,798 | — | 67,798 | ||||||||||||
Other securities | 509 | — | — | 509 | ||||||||||||
Total | $ | 509 | $ | 582,189 | $ | — | $ | 582,698 | ||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Securities available for sale | ||||||||||||||||
Obligations of U.S. Government Agencies | $ | — | $ | 95,977,783 | $ | — | $ | 95,977,783 | ||||||||
Mortgage-backed securities | — | 247,374,153 | — | 247,374,153 | ||||||||||||
State, county and municipal obligations | — | 101,394,518 | — | 101,394,518 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 444,746,454 | $ | — | $ | 444,746,454 | ||||||||
|
|
|
|
|
|
|
|
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Securities available for sale | ||||||||||||||||
Obligations of U.S. Government Agencies | $ | — | $ | 97,111 | $ | — | $ | 97,111 | ||||||||
Mortgage-backed securities | — | 306,900 | — | 306,900 | ||||||||||||
State, county and municipal obligations | — | 60,372 | — | 60,372 | ||||||||||||
Total | $ | — | $ | 464,383 | $ | — | $ | 464,383 | ||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Impaired loans | $ | — | $ | — | $ | 3,543 | $ | 3,543 | ||||||||
Other real estate owned | — | — | 163 | 163 | ||||||||||||
Total | $ | — | $ | — | $ | 3,706 | $ | 3,706 | ||||||||
Financial instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Range of Inputs | ||||||||
Impaired loans | $ | 3,543 | Appraised value of collateral less estimated costs to sell | Estimated costs to sell | 25 | % | ||||||
OREO | $ | 163 | Appraised value of collateral less estimated costs to sell | Estimated costs to sell | 25 | % |
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Impaired loans | $ | — | $ | — | $ | 3,819,908 | $ | 3,819,908 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | — | $ | 3,819,908 | $ | 3,819,908 | ||||||||
|
|
|
|
|
|
|
|
The following table presents information as
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Impaired loans | $ | — | $ | — | $ | 4,576 | $ | 4,576 | ||||||||
Total | $ | — | $ | — | $ | 4,576 | $ | 4,576 | ||||||||
Significant Unobservable Inputs | Range of Inputs | |||||||||
Financial instrument | Fair Value | Valuation Technique | ||||||||
Impaired loans | $ | 3,819,908 | Appraised value of collateral less estimated costs to sell | Estimated costs to sell | 25% |
For assets measured at fair value on a nonrecurring basiswas remeasured during 2018 that were still held on the Corporation’s balance sheet at December 31, 2018, the following table provides the hierarchy level and the fair value of the related assets:
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Impaired loans | $ | — | $ | — | $ | 3,364,538 | $ | 3,364,538 | ||||||||
Other real estate owned | — | — | 188,609 | 188,609 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | — | $ | 3,553,147 | $ | 3,553,147 | ||||||||
|
|
|
|
|
|
|
|
Impaired loansperiod, with a carrying value of $4,398,430$4,137 and $3,364,538$5,003 had an allocated allowance for loan losses of $578,522$594 and $401,347$427 at September 30, 20192020 and December 31, 2018,2019, respectively. The allocated allowance is based on the carrying value of the impaired loan and the fair value of the underlying collateral less estimated costs to sell.
After monitoring the carrying amounts for subsequent declines or impairments after foreclosure, management determined that a fair value adjustment to OREO in the amount of $20192020 and the year ended December 31, 2018.
2019, respectively.
The following represents the carrying value and estimated fair value of the Corporation’s financial instruments at September 30, 2019:
Fair Value Measurements Using: | ||||||||||||||||||||
Quoted Prices | ||||||||||||||||||||
in Active | Significant | |||||||||||||||||||
Markets for | Other | Significant | Total | |||||||||||||||||
Carrying | Identical | Observable | Unobservable | Fair | ||||||||||||||||
September 30, 2019 | Value | Assets | Inputs | Inputs | Value | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and due from banks | $ | 21,106,679 | $ | 21,106,679 | $ | — | $ | — | $ | 21,106,679 | ||||||||||
Interest bearing deposits with banks | 61,234,815 | 61,234,815 | — | — | 61,234,815 | |||||||||||||||
Securitiesavailable-for-sale | 434,145,569 | — | 434,145,569 | — | 434,145,569 | |||||||||||||||
Net loans | 469,692,103 | — | — | 466,369,797 | 466,369,797 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | $ | 794,314,007 | $ | 573,774,335 | $ | 222,487,675 | $ | — | $ | 796,262,010 | ||||||||||
Securities sold under agreement to repurchase | 144,502,629 | 144,502,629 | — | — | 144,502,629 |
2020:
Fair Value Measurements Using: | ||||||||||||||||||||
Quoted Prices | ||||||||||||||||||||
in Active | Significant | |||||||||||||||||||
Markets for | Other | Significant | Total | |||||||||||||||||
Carrying | Identical | Observable | Unobservable | Fair | ||||||||||||||||
September 30, 2020 | Value | Assets | Inputs | Inputs | Value | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and due from banks | $ | 13,710 | $ | 13,710 | $ | — | $ | — | $ | 13,710 | ||||||||||
Interest bearing deposits with banks | 42,543 | 42,543 | — | — | 42,543 | |||||||||||||||
Securities available-for-sale | 582,698 | 509 | 582,189 | — | 582,698 | |||||||||||||||
Net loans | 651,139 | — | — | 643,680 | 643,680 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | $ | 1,049,157 | $ | 824,066 | $ | 226,439 | $ | — | $ | 1,050,505 | ||||||||||
Securities sold under agreement to repurchase | 176,978 | 176,978 | — | — | 176,978 | |||||||||||||||
Federal Home Loan Bank advances | 15,000 | 15,000 | — | — | 15,000 |
Fair Value Measurements Using: | ||||||||||||||||||||
Quoted Prices | ||||||||||||||||||||
in Active | Significant | |||||||||||||||||||
Markets for | Other | Significant | Total | |||||||||||||||||
Carrying | Identical | Observable | Unobservable | Fair | ||||||||||||||||
December 31, 2018 | Value | Assets | Inputs | Inputs | Value | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and due from banks | $ | 12,592,130 | $ | 12,592,130 | $ | — | $ | — | $ | 12,592,130 | ||||||||||
Interest bearing deposits with banks | 8,079,742 | 8,079,742 | — | — | 8,079,742 | |||||||||||||||
Securitiesavailable-for-sale | 444,746,454 | — | 444,746,454 | — | 444,746,454 | |||||||||||||||
Net loans | 425,905,093 | — | — | 420,992,074 | 420,992,074 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | $ | 756,221,510 | $ | 544,985,869 | $ | 210,477,092 | $ | — | $ | 755,462,961 | ||||||||||
Securities sold under agreement to repurchase | 107,965,505 | 107,965,505 | — | — | 107,965,505 |
Fair Value Measurements Using: | ||||||||||||||||||||
Quoted Prices | ||||||||||||||||||||
in Active | Significant | |||||||||||||||||||
Markets for | Other | Significant | Total | |||||||||||||||||
Carrying | Identical | Observable | Unobservable | Fair | ||||||||||||||||
December 31, 2019 | Value | Assets | Inputs | Inputs | Value | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and due from banks | $ | 15,937 | $ | 15,937 | $ | — | $ | — | $ | 15,937 | ||||||||||
Interest bearing deposits with banks | 58,557 | 58,557 | — | — | 58,557 | |||||||||||||||
Federal funds sold | 1,600 | 1,600 | — | — | 1,600 | |||||||||||||||
Securities available-for-sale | 464,383 | — | 464,383 | — | 464,383 | |||||||||||||||
Net loans | 573,312 | — | — | 569,640 | 569,640 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | $ | 898,996 | $ | 642,825 | $ | 258,100 | $ | — | $ | 900,925 | ||||||||||
Securities sold under agreement to repurchase | 170,410 | 170,410 | — | — | 170,410 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Corporation.
rates.
Minimum Capital | ||||||||||||||||||||||||
Minimum Capital | Requirement to be | |||||||||||||||||||||||
Requirement to be | Adequately | |||||||||||||||||||||||
Actual | Well Capitalized | Capitalized | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||
Citizens Holding Company | ||||||||||||||||||||||||
Tier 1 leverage ratio | $ | 96,209 | 9.27 | % | $ | 51,917 | 5.00 | % | $ | 41,534 | 4.00 | % | ||||||||||||
Common Equity tier 1 capital ratio | 96,209 | 15.91 | % | 67,492 | 6.50 | % | 46,725 | 4.50 | % | |||||||||||||||
Tier 1 risk-based capital ratio | 96,209 | 15.91 | % | 48,381 | 8.00 | % | 36,286 | 6.00 | % | |||||||||||||||
Total risk-based capital ratio | 100,015 | 16.54 | % | 60,476 | 10.00 | % | 48,381 | 8.00 | % | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Citizens Holding Company | ||||||||||||||||||||||||
Tier 1 leverage ratio | $ | 95,691 | 9.93 | % | $ | 48,191 | 5.00 | % | $ | 38,553 | 4.00 | % | ||||||||||||
Common Equity tier 1 capital ratio | 95,691 | 17.40 | % | 62,648 | 6.50 | % | 43,372 | 4.50 | % | |||||||||||||||
Tier 1 risk-based capital ratio | 95,691 | 17.40 | % | 43,986 | 8.00 | % | 32,990 | 6.00 | % | |||||||||||||||
Total risk-based capital ratio | 99,063 | 18.02 | % | 54,983 | 10.00 | % | 43,986 | 8.00 | % |
Minimum Capital | ||||||||||||||||||||||||
Minimum Capital | Requirement to be | |||||||||||||||||||||||
Requirement to be | Adequately | |||||||||||||||||||||||
Actual | Well Capitalized | Capitalized | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
September 30, 2020 | ||||||||||||||||||||||||
Citizens Holding Company | ||||||||||||||||||||||||
Tier 1 leverage ratio | $ | 100,649 | 7.31 | % | $ | 68,799 | 5.00 | % | $ | 55,039 | 4.00 | % | ||||||||||||
Common Equity tier 1 capital ratio | 100,649 | 13.01 | % | 89,439 | 6.50 | % | 61,919 | 4.50 | % | |||||||||||||||
Tier 1 risk-based capital ratio | 100,649 | 13.01 | % | 61,872 | 8.00 | % | 46,404 | 6.00 | % | |||||||||||||||
Total risk-based capital ratio | 105,143 | 13.59 | % | 77,340 | 10.00 | % | 61,872 | 8.00 | % | |||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Citizens Holding Company | ||||||||||||||||||||||||
Tier 1 leverage ratio | $ | 98,733 | 8.33 | % | $ | 59,270 | 5.00 | % | $ | 47,416 | 4.00 | % | ||||||||||||
Common Equity tier 1 capital ratio | 98,733 | 13.86 | % | 77,051 | 6.50 | % | 53,343 | 4.50 | % | |||||||||||||||
Tier 1 risk-based capital ratio | 98,733 | 13.86 | % | 56,972 | 8.00 | % | 42,729 | 6.00 | % | |||||||||||||||
Total risk-based capital ratio | 102,488 | 14.39 | % | 71,215 | 10.00 | % | 56,972 | 8.00 | % |
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest Income, including fees | $ | 8,443,415 | $ | 7,887,319 | $ | 25,477,384 | $ | 23,265,686 | ||||||||
Interest Expense | 2,525,126 | 1,168,024 | 7,143,417 | 2,789,205 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Interest Income | 5,918,289 | 6,719,295 | 18,333,967 | 20,476,481 | ||||||||||||
Provision for loan losses | 11,738 | 288,576 | 472,036 | 140,765 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Interest Income after | ||||||||||||||||
Provision for loan losses | 5,906,551 | 6,430,719 | 17,861,931 | 20,335,716 | ||||||||||||
Other Income | 2,505,900 | 2,220,574 | 6,624,989 | 6,399,414 | ||||||||||||
Other Expense | 6,867,638 | 6,894,024 | 19,829,904 | 20,889,594 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Income Before Provision For | ||||||||||||||||
Income Taxes | 1,544,813 | 1,757,269 | 4,657,016 | 5,845,536 | ||||||||||||
Provision for Income Taxes | 211,925 | 260,475 | 726,615 | 888,215 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Income | $ | 1,332,888 | $ | 1,496,794 | $ | 3,930,401 | $ | 4,957,321 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Income Per share - Basic | $ | 0.27 | $ | 0.31 | $ | 0.80 | $ | 1.01 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Income Per Share-Diluted | $ | 0.27 | $ | 0.31 | $ | 0.80 | $ | 1.01 | ||||||||
|
|
|
|
|
|
|
|
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Interest Income, including fees | $ | 10,579 | $ | 8,443 | $ | 30,415 | $ | 25,478 | ||||||||
Interest Expense | 1,673 | 2,525 | 5,774 | 7,143 | ||||||||||||
Net Interest Income | 8,906 | 5,918 | 24,641 | 18,335 | ||||||||||||
Provision for loan losses | 247 | 12 | 1,183 | 472 | ||||||||||||
Net Interest Income after | ||||||||||||||||
Provision for loan losses | 8,659 | 5,906 | 23,458 | 17,863 | ||||||||||||
Other Income | 2,637 | 2,506 | 7,488 | 6,624 | ||||||||||||
Other Expense | 8,653 | 6,867 | 25,064 | 19,830 | ||||||||||||
Income Before Provision For | ||||||||||||||||
Income Taxes | 2,643 | 1,545 | 5,882 | 4,657 | ||||||||||||
Provision for Income Taxes | 560 | 212 | 1,177 | 727 | ||||||||||||
Net Income | $ | 2,083 | $ | 1,333 | $ | 4,705 | $ | 3,930 | ||||||||
Net Income Per share - Basic | $ | 0.37 | $ | 0.27 | $ | 0.84 | $ | 0.80 | ||||||||
Net Income Per Share-Diluted | $ | 0.37 | $ | 0.27 | $ | 0.84 | $ | 0.80 | ||||||||
2019.
One
The annualizedprimary concerns in managing net interest marginincome are the volume, mix and repricing of assets and liabilities.
Three Months Ended September 30, | ||||||||||||||||||||||||
Average Balance | Income/Expense | Average Yield/Rate | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Loans, net of unearned (1) | $ | 647,530 | $ | 468,310 | $ | 7,814 | $ | 5,951 | 4.83 | % | 5.08 | % | ||||||||||||
Investment Securities | ||||||||||||||||||||||||
Taxable | 566,102 | 395,281 | 2,406 | 1,945 | 1.70 | % | 1.97 | % | ||||||||||||||||
Tax-exempt | 67,729 | 61,133 | 481 | 513 | 2.84 | % | 3.36 | % | ||||||||||||||||
Total Investment Securities | 633,831 | 456,414 | 2,887 | 2,458 | 0.46 | % | 0.54 | % | ||||||||||||||||
Federal Funds Sold and Other | 18,408 | 43,696 | 8 | 212 | 0.17 | % | 1.94 | % | ||||||||||||||||
Total Interest Earning Assets (1)(2) | 1,299,769 | 968,420 | 10,709 | 8,621 | 3.30 | % | 3.56 | % | ||||||||||||||||
Non-Earning Assets | 89,905 | 73,068 | ||||||||||||||||||||||
Total Assets | $ | 1,389,674 | $ | 1,041,488 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Interest-bearing Demand | ||||||||||||||||||||||||
Deposits (3) | $ | 475,857 | $ | 336,998 | $ | 715 | $ | 801 | 0.60 | % | 0.95 | % | ||||||||||||
Savings | 98,756 | 77,884 | 27 | 32 | 0.11 | % | 0.16 | % | ||||||||||||||||
Time | 225,248 | 220,096 | 764 | 1,089 | 1.36 | % | 1.98 | % | ||||||||||||||||
Total Deposits | 799,861 | 634,978 | 1,506 | 1,922 | 0.19 | % | 0.30 | % | ||||||||||||||||
Borrowed Funds | ||||||||||||||||||||||||
Short-term Borrowings | 198,656 | 131,269 | 167 | 602 | 0.34 | % | 1.83 | % | ||||||||||||||||
Long-term Borrowings | — | — | — | — | 0.00 | % | 0.00 | % | ||||||||||||||||
Total Borrowed Funds | 198,656 | 131,269 | 167 | 602 | 0.34 | % | 1.83 | % | ||||||||||||||||
Total Interest-Bearing Liabilities (3) | 998,517 | 766,247 | 1,673 | 2,524 | 0.67 | % | 1.32 | % | ||||||||||||||||
Non-Interest Bearing Liabilities | ||||||||||||||||||||||||
Demand Deposits | 257,222 | 172,252 | ||||||||||||||||||||||
Other Liabilities | 13,543 | 6,417 | ||||||||||||||||||||||
Shareholders’ Equity | 120,392 | 96,572 | ||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,389,674 | $ | 1,041,488 | ||||||||||||||||||||
Interest Rate Spread | 2.63 | % | 2.24 | % | ||||||||||||||||||||
Net Interest Margin | $ | 9,036 | $ | 6,097 | 2.81 | % | 2.49 | % | ||||||||||||||||
Less | ||||||||||||||||||||||||
Tax Equivalent Adjustment | 130 | 179 | ||||||||||||||||||||||
Net Interest Income | $ | 8,906 | $ | 5,918 | ||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
Average Balance | Income/Expense | Average Yield/Rate | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Loans, net of unearned (1) | $ | 613,155 | $ | 453,044 | $ | 22,943 | $ | 17,250 | 4.99 | % | 5.08 | % | ||||||||||||
Investment Securities | ||||||||||||||||||||||||
Taxable | 481,077 | 392,896 | 6,157 | 6,253 | 1.71 | % | 2.12 | % | ||||||||||||||||
Tax-exempt | 63,546 | 85,252 | 1,434 | 1,976 | 3.01 | % | 3.09 | % | ||||||||||||||||
Total Investment Securities | 544,623 | 478,148 | 7,591 | 8,229 | 1.86 | % | 2.29 | % | ||||||||||||||||
Federal Funds Sold and Other | 49,677 | 29,141 | 243 | 488 | 0.65 | % | 2.23 | % | ||||||||||||||||
Total Interest Earning Assets (1)(2) | 1,207,455 | 960,333 | 30,777 | 25,967 | 3.40 | % | 3.61 | % | ||||||||||||||||
Non-Earning Assets | 100,843 | 66,367 | ||||||||||||||||||||||
Total Assets | $ | 1,308,298 | $ | 1,026,700 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Interest-bearing Demand Deposits (3) | $ | 442,907 | $ | 343,294 | $ | 2,395 | $ | 2,349 | 0.72 | % | 0.91 | % | ||||||||||||
Savings | 92,335 | 77,166 | 84 | 92 | 0.12 | % | 0.16 | % | ||||||||||||||||
Time | 232,082 | 219,449 | 2,610 | 3,127 | 1.50 | % | 1.90 | % | ||||||||||||||||
Total Deposits | 767,324 | 639,909 | 5,089 | 5,568 | 0.88 | % | 1.16 | % | ||||||||||||||||
Borrowed Funds | ||||||||||||||||||||||||
Short-term Borrowings | 182,644 | 117,393 | 687 | 1,575 | 0.50 | % | 1.79 | % | ||||||||||||||||
Long-term Borrowings | — | — | — | — | 0.00 | % | 0.00 | % | ||||||||||||||||
Total Borrowed Funds | 182,644 | 117,393 | 687 | 1,575 | 0.50 | % | 1.79 | % | ||||||||||||||||
Total Interest-Bearing Liabilities (3) | 949,968 | 757,302 | 5,776 | 7,143 | 0.81 | % | 1.26 | % | ||||||||||||||||
Non-Interest Bearing Liabilities | ||||||||||||||||||||||||
Demand Deposits | 228,078 | 167,321 | ||||||||||||||||||||||
Other Liabilities | 12,713 | 11,192 | ||||||||||||||||||||||
Shareholders’ Equity | 117,539 | 90,885 | ||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,308,298 | $ | 1,026,700 | ||||||||||||||||||||
Interest Rate Spread | 2.59 | % | 2.35 | % | ||||||||||||||||||||
Net Interest Margin | $ | 25,001 | $ | 18,824 | 2.76 | % | 2.62 | % | ||||||||||||||||
Less | ||||||||||||||||||||||||
Tax Equivalent Adjustment | 360 | 489 | ||||||||||||||||||||||
Net Interest Income | $ | 24,641 | $ | 18,335 | ||||||||||||||||||||
(1) | Overdrafts, while not considered an earning asset, are included in Loans, net of unearned in the average volume calculation due to the immaterial impact on the yield. |
(2) | Earnings Assets in the table above does include the dividend paying stock of the Federal Home Loan Bank. |
(3) | Demand deposits are not included in the average volume calculation as they are not interest bearing liabilities. They are included within the non-interest bearing liabilities section above. |
Interest bearing deposits averaged $634,978,452 for the three months ended September 30, 2019. This represents an increase of $39,364,580, or 6.6%, from the average of interest-bearing deposits of $595,613,872 for the three months ended September 30, 2018. This was due to an increase in interest-bearing NOW and money market accounts, savings and certificates of deposit.
Other borrowed funds averaged $131,268,828 for the three months ended September 30, 2019. This represents an increase of $20,987,455, or 19.0%, over the other borrowed funds of $110,281,373 for the three months ended September 30, 2018. This increase in other borrowed funds was due to an increase in securities sold under agreements to repurchase partially offset by a decrease in federal funds purchased and FHLB advances for the three months ended September 30, 2019, when2020 compared to the three months ended September 30, 2018.
Interest bearing deposits averaged $639,908,371 for the nine months ended September 30, 2019. This represents an increasesame respective periods in 2019:
Three Months Ended September 30, 2020 | ||||||||||||
2020 Change from 2019 | ||||||||||||
Volume | Rate | Total | ||||||||||
INTEREST INCOME | ||||||||||||
Loans | $ | 2,289 | (414 | ) | $ | 1,875 | ||||||
Taxable Securities | 841 | (380 | ) | 461 | ||||||||
Non-Taxable Securities | 175 | (87 | ) | 88 | ||||||||
Federal Funds Sold and Other | (123 | ) | (81 | ) | (204 | ) | ||||||
TOTAL INTEREST INCOME | $ | 3,183 | $ | (963 | ) | $ | 2,220 | |||||
INTEREST EXPENSE | ||||||||||||
Interest-bearing demand deposits | $ | 330 | (295 | ) | 35 | |||||||
Savings Deposits | 9 | (11 | ) | (2 | ) | |||||||
Time Deposits | 25 | (342 | ) | (317 | ) | |||||||
Short-term borrowings | 309 | (744 | ) | (435 | ) | |||||||
Long-term borrowings | — | — | — | |||||||||
TOTAL INTEREST EXPENSE | $ | 673 | $ | (1,392 | ) | (719 | ) | |||||
NET INTEREST INCOME | $ | 2,509 | $ | 429 | $ | 2,939 | ||||||
Net interest income was $5,918,289 for the three months ended September 30, 2019, a decrease of $801,006 from $6,719,295 for the three months ended September 30, 2018, primarily due to an increase in the rates paid on deposits from the same period in 2018. The changes in volume in earning assets, deposits and borrowed funds are discussed above. As for changes in interest rates in the three months ended September 30, 2019, the yields on earning assets decreased and the rates paid on deposits increased from the same period in 2018. The yield on all interest-bearing assets decreased 1 basis point to 3.57% in the three months ended September 30, 2019 from 3.58% for the same period in 2018. At the same time, the rate paid on all interest-bearing liabilities for the three months ended September 30, 2019 increased 59 basis points to 1.25% from 0.66% in the same period in 2018. As longer term interest-bearing assets and liabilities mature and reprice, management believes that the yields on interest bearing assets and rates on interest bearing liabilities will both decrease.
Net interest income was $18,333,967 for the nine months ended September 30, 2019, a decrease of $2,142,514 from $20,476,481 for the nine months ended September 30, 2018, primarily due to an increase in the rates paid on deposits from the same period in 2018. The changes in volume in earning assets, deposits and borrowed funds are discussed above. As for changes in interest rates in the nine months ended September 30, 2019, the yields on earning assets increased and the rates paid on deposits increased from the same period in 2018. The yield on all interest-bearing assets increased 11 basis points to 3.61% in the nine months ended September 30, 2019 from 3.50% for the same period in 2018. At the same time, the rate paid on all interest-bearing liabilities for the nine months ended September 30, 2019 increased 74 basis points to 1.26% from 0.52% in the same period in 2018. As longer term interest-bearing assets and liabilities mature and reprice, management believes that the yields on interest bearing assets and rates on interest bearing liabilities will both decrease.
The following table shows the interest and fees and corresponding yields for loans only.
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest and Fees | $ | 5,940,805 | $ | 5,166,554 | $ | 17,220,751 | $ | 14,867,465 | ||||||||
Average Gross Loans | 468,309,743 | 422,551,745 | 453,528,704 | 413,851,534 | ||||||||||||
Annualized Yield | 5.07 | % | 4.89 | % | 5.06 | % | 4.79 | % |
Nine Months Ended September 30, 2020 | ||||||||||||
2020 Change from 2019 | ||||||||||||
Volume | Rate | Total | ||||||||||
INTEREST INCOME | ||||||||||||
Loans | $ | 6,134 | (403 | ) | $ | 5,731 | ||||||
Taxable Securities | 1,403 | (1,499 | ) | (96 | ) | |||||||
Non-Taxable Securities | (356 | ) | (39 | ) | (395 | ) | ||||||
Federal Funds Sold and Other | 344 | (589 | ) | (245 | ) | |||||||
TOTAL INTEREST INCOME | $ | 7,526 | $ | (2,531 | ) | $ | 4,995 | |||||
INTEREST EXPENSE | ||||||||||||
Interest-bearing demand deposits | $ | 682 | (493 | ) | 189 | |||||||
Savings Deposits | 18 | (22 | ) | (4 | ) | |||||||
Time Deposits | 180 | (659 | ) | (479 | ) | |||||||
Short-term borrowings | 875 | (1,763 | ) | (888 | ) | |||||||
Long-term borrowings | — | — | — | |||||||||
TOTAL INTEREST EXPENSE | $ | 1,755 | $ | (2,937 | ) | (1,182 | ) | |||||
NET INTEREST INCOME | $ | 5,770 | $ | 406 | $ | 6,177 | ||||||
Quarter Ended | Year Ended | Amount of | Percent of | |||||||||||||
September 30, | December 31, | Increase | Increase | |||||||||||||
2019 | 2018 | (Decrease) | (Decrease) | |||||||||||||
BALANCES: | ||||||||||||||||
Gross Loans | $ | 473,509,900 | $ | 429,322,113 | $ | 44,187,787 | 10.29 | % | ||||||||
Allowance for Loan Losses | 3,805,579 | 3,371,695 | 433,884 | 12.87 | % | |||||||||||
Nonaccrual Loans | 12,358,742 | 9,838,870 | 2,519,872 | 25.61 | % | |||||||||||
Ratios: | ||||||||||||||||
Allowance for loan losses to gross loans | 0.80 | % | 0.79 | % | ||||||||||||
Net loans charged off (recovered) to allowance for loan losses | 1.00 | % | -0.55 | % |
Quarter Ended | Year Ended | Amount of | Percent of | |||||||||||||
September 30, | December 31, | Increase | Increase | |||||||||||||
2020 | 2019 | (Decrease) | (Decrease) | |||||||||||||
BALANCES: | ||||||||||||||||
Gross Loans | $ | 655,633 | $ | 577,075 | $ | 78,558 | 13.61 | % | ||||||||
Allowance for Loan Losses | 4,494 | 3,755 | 739 | 19.68 | % | |||||||||||
Nonaccrual Loans | 10,410 | 11,993 | (1,583 | ) | -13.20 | % | ||||||||||
Ratios: | ||||||||||||||||
Allowance for loan losses to gross loans | 0.69 | % | 0.65 | % | ||||||||||||
Net loans charged off (recovered) to allowance for loan losses | 9.90 | % | 5.06 | % |
September 30, 20192020 is a result of management’s assessment of inherent loss in the loan portfolio, including the impact caused by current local, national and international economic conditions coupled with an increase in loan demand. As a result of the
2019.
nine month period ended September 30, 2020.
We are working with customers directly affected by
Other income includes service charges on deposit accounts, wire transfer fees, safe deposit box rentals and other revenue not derived from interest on earning assets. rates driving increased mortgage volume.
2018. 2019. The reason for the significant decrease was discussed above. Other service charges and fees increased by $169,263,$358, or 7.9%15.5%, to $2,316,715$2,675 in the nine months ended September 30, 2019,2020, compared to $2,147,452$2,317 for the same period in 2018.2019. Other operating income not derived from service charges or fees increased $169,543,$1,286, or 19.5%123.8% to $1,039,696$2,325 in the nine months ended September 30, 2019,2020, compared to $870,153$1,039 for the same period in 2018. This2019. The reason for the significant increase was due mainly to an increase in gains from security sales due to strategic investment decisions and other income partially offset by a decrease in mortgage loan origination income from long-term mortgage loans originated for sale in the secondary market.
discussed above.
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
Other operating income | 2019 | 2018 | 2019 | 2018 | ||||||||||||
BOLI Income | $ | 120,000 | $ | 124,666 | $ | 366,000 | $ | 375,101 | ||||||||
Mortgage Loan Origination Income | 72,640 | 101,077 | 179,239 | 273,367 | ||||||||||||
Income from security sales, net | 244,457 | — | 190,308 | 11,047 | ||||||||||||
Other Income | 79,765 | 61,940 | 304,149 | 210,638 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Other Income | $ | 516,862 | $ | 287,683 | $ | 1,039,696 | $ | 870,153 | ||||||||
|
|
|
|
|
|
|
|
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
Other operating income | 2020 | 2019 | 2020 | 2019 | ||||||||||||
BOLI income | $ | 123 | $ | 120 | $ | 352 | $ | 366 | ||||||||
Mortgage loan origination income | 361 | 73 | 890 | 179 | ||||||||||||
Income from security sales, net | 293 | 244 | 703 | 190 | ||||||||||||
Other income | 58 | 80 | 380 | 304 | ||||||||||||
Total Other Income | $ | 835 | $ | 517 | $ | 2,325 | $ | 1,039 | ||||||||
2020.
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
Other Operating Expense | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Advertising | $ | 127,647 | $ | 108,140 | $ | 430,943 | $ | 434,657 | ||||||||
Office Supplies | 265,073 | 245,248 | 718,447 | 736,630 | ||||||||||||
Professional Fees | 442,413 | 181,036 | 1,114,122 | 425,905 | ||||||||||||
Telephone expense | 118,971 | 124,490 | 352,747 | 401,496 | ||||||||||||
Postage and Freight | 121,307 | 136,285 | (176,857 | ) | 425,353 | |||||||||||
Loan Collection Expense | 186,612 | 5,819 | 196,286 | 22,641 | ||||||||||||
Regulatory and related expense | 90,434 | 84,084 | 259,311 | 277,437 | ||||||||||||
Debit Card/ATM expense | 172,166 | 121,434 | 408,809 | 343,817 | ||||||||||||
Travel and Convention | 78,705 | 54,745 | 179,214 | 166,759 | ||||||||||||
Other expenses | 468,267 | 678,499 | 1,702,157 | 2,270,375 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Other Expense | $ | 2,071,595 | $ | 1,739,780 | $ | 5,185,179 | $ | 5,505,070 | ||||||||
|
|
|
|
|
|
|
|
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
Other Operating Expense | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Advertising | $ | 159 | $ | 128 | $ | 519 | $ | 431 | ||||||||
Office Supplies | 270 | 265 | 873 | 718 | ||||||||||||
Professional Fees | 272 | 442 | 791 | 1,114 | ||||||||||||
Telephone expense | 139 | 119 | 435 | 353 | ||||||||||||
Postage and Freight | 142 | 121 | 421 | (177 | ) | |||||||||||
Loan Collection Expense | 57 | 187 | 100 | 196 | ||||||||||||
Writedown of other real estate owned | 230 | — | 230 | — | ||||||||||||
Regulatory and related expense | 203 | 90 | 442 | 259 | ||||||||||||
Debit Card/ATM expense | 162 | 172 | 445 | 409 | ||||||||||||
Travel and Convention | 29 | 79 | 100 | 179 | ||||||||||||
Other expenses | 740 | 468 | 2,021 | 1,703 | ||||||||||||
Total Other Expense | $ | 2,403 | $ | 2,071 | $ | 6,377 | $ | 5,185 | ||||||||
Amount of | Percent of | |||||||||||||||
September 30, | December 31, | Increase | Increase | |||||||||||||
2019 | 2018 | (Decrease) | (Decrease) | |||||||||||||
Cash and Due From Banks | $ | 21,106,679 | $ | 12,592,130 | $ | 8,514,549 | 67.62 | % | ||||||||
Interest Bearing deposits with Other Banks | 61,234,815 | 8,079,742 | 53,155,073 | 657.88 | % | |||||||||||
Investment Securities | 434,145,569 | 444,746,454 | (10,600,885 | ) | -2.38 | % | ||||||||||
Loans, net | 469,692,103 | 425,905,093 | 43,787,010 | 10.28 | % | |||||||||||
Premises and Equipment | 20,029,997 | 19,717,305 | 312,692 | 1.59 | % | |||||||||||
Total Assets | 1,049,603,645 | 958,630,077 | 90,973,568 | 9.49 | % | |||||||||||
Total Deposits | 794,314,007 | 756,221,510 | 38,092,497 | 5.04 | % | |||||||||||
Total Shareholders’ Equity | 98,999,065 | 83,866,317 | 15,132,748 | 18.04 | % |
September 30, | December 31, | Amount of Increase | Percent of Increase | |||||||||||||
2020 | 2019 | (Decrease) | (Decrease) | |||||||||||||
Cash and Due From Banks | $ | 13,710 | $ | 15,937 | $ | (2,227 | ) | -13.97 | % | |||||||
Interest Bearing deposits with Other Banks | 42,543 | 58,557 | (16,014 | ) | -27.35 | % | ||||||||||
Investment Securities | 582,698 | 464,383 | 118,315 | 25.48 | % | |||||||||||
Loans, net | 651,139 | 573,312 | 77,827 | 13.57 | % | |||||||||||
Premises and Equipment | 25,141 | 24,672 | 469 | 1.90 | % | |||||||||||
Total Assets | 1,374,217 | 1,195,434 | 178,783 | 14.96 | % | |||||||||||
Total Deposits | 1,049,157 | 898,996 | 150,161 | 16.70 | % | |||||||||||
Total Shareholders’ Equity | 117,499 | 112,800 | 4,699 | 4.17 | % |
Amount of | Percent of | |||||||||||||||
September 30, | December 31, | Increase | Increase | |||||||||||||
2019 | 2018 | (Decrease) | (Decrease) | |||||||||||||
Noninterest-Bearing Deposits | $ | 168,317,216 | $ | 170,029,729 | $ | (1,712,513 | ) | -1.01 | % | |||||||
Interest-Bearing Deposits | 326,982,928 | 298,220,430 | 28,762,498 | 9.64 | % | |||||||||||
Savings Deposits | 78,474,191 | 76,735,710 | 1,738,481 | 2.27 | % | |||||||||||
Certificates of Deposit | 220,539,672 | 211,235,641 | 9,304,031 | 4.40 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total deposits | $ | 794,314,007 | $ | 756,221,510 | $ | 38,092,497 | 5.04 | % | ||||||||
|
|
|
|
|
|
|
|
Interest-bearing,
Amount of | Percent of | |||||||||||||||
September 30, | December 31, | Increase | Increase | |||||||||||||
2020 | 2019 | (Decrease) | (Decrease) | |||||||||||||
Noninterest-Bearing Deposits | $ | 253,762 | $ | 190,406 | $ | 63,356 | 33.27 | % | ||||||||
Interest-Bearing Deposits | 469,777 | 369,354 | 100,423 | 27.19 | % | |||||||||||
Savings Deposits | 100,527 | 83,065 | 17,462 | 21.02 | % | |||||||||||
Certificates of Deposit | 225,091 | 256,171 | (31,080 | ) | -12.13 | % | ||||||||||
Total deposits | $ | 1,049,157 | $ | 898,996 | $ | 150,161 | 16.70 | % | ||||||||
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
September 30, 2019 | December 31, 2018 | |||||||||||||||
Following | Months | Following | Months | |||||||||||||
12 months | 13-24 | 12 months | 13-24 | |||||||||||||
+400 basis points | 11.7 | % | 23.2 | % | -3.6 | % | 6.2 | % | ||||||||
+300 basis points | 10.8 | % | 19.4 | % | -1.8 | % | 5.7 | % | ||||||||
+200 basis points | 9.3 | % | 14.8 | % | -0.4 | % | 4.9 | % | ||||||||
+100 basis points | 4.9 | % | 7.6 | % | 0.5 | % | 3.2 | % | ||||||||
Flat rates | — | — | — | — | ||||||||||||
-100 basis points | -8.5 | % | -7.7 | % | -1.7 | % | -1.1 | % | ||||||||
-200 basis points | -14.0 | % | -15.3 | % | -11.5 | % | -9.5 | % |
2019:
September 30, 2020 | December 31, 2019 | |||||||||||||||
Following | Months | Following | Months | |||||||||||||
12 months | 13-24 | 12 months | 13-24 | |||||||||||||
+400 basis points | 14.3 | % | 6.6 | % | 6.4 | % | 20.9 | % | ||||||||
+300 basis points | 15.5 | % | 6.1 | % | 6.3 | % | 17.5 | % | ||||||||
+200 basis points | 16.0 | % | 5.2 | % | 5.7 | % | 13.3 | % | ||||||||
+100 basis points | 14.0 | % | 3.9 | % | 3.0 | % | 7.0 | % | ||||||||
Flat rates | — | — | — | — | ||||||||||||
-100 basis points | -10.4 | % | -8.3 | % | -7.3 | % | -7.5 | % | ||||||||
-200 basis points | -16.8 | % | -18.0 | % | -14.5 | % | -15.1 | % |
Economic Value of Equity at Risk (%) | ||||||||
September 30, 2019 | December 31, 2018 | |||||||
+400 basis points | 15.1 | % | -5.3 | % | ||||
+300 basis points | 15.1 | % | -3.0 | % | ||||
+200 basis points | 13.4 | % | -1.2 | % | ||||
+100 basis points | 8.3 | % | -0.1 | % | ||||
Flat rates | — | — | ||||||
-100 basis points | -21.3 | % | -9.4 | % | ||||
-200 basis points | -47.1 | % | -27.1 | % |
Economic Value of Equity at Risk (%) | ||||||||
September 30, 2020 | December 31, 2019 | |||||||
+400 basis points | 26.0 | % | 7.1 | % | ||||
+300 basis points | 31.7 | % | 8.0 | % | ||||
+200 basis points | 34.9 | % | 7.8 | % | ||||
+100 basis points | 25.7 | % | 5.4 | % | ||||
Flat rates | — | — | ||||||
-100 basis points | -31.0 | % | -18.5 | % | ||||
-200 basis points | -44.1 | % | -42.3 | % |
ITEM 4. | CONTROLS AND PROCEDURES. |
ITEM 1. | LEGAL PROCEEDINGS. |
ITEM 1A. | RISK FACTORS. |
There have been no material changes to the risk factors as disclosed in the Corporation’s Annual Report on Form10-K for the Corporation’s year ended December 31, 2018.
ITEM 6. | EXHIBITS. |
Exhibits | ||
31(a) | Certification of the Chief Executive Officer pursuant to Rule13a-14(a)/15d-14(a). | |
31(b) | Certification of the Chief Financial Officer pursuant to Rule13a-14(a)/15d-14(a). | |
32(a) | Certification of the Chief Executive Officer pursuant to 18 U.S.C. § 1350. | |
32(b) | Certification of the Chief Financial Officer pursuant to 18 U.S.C. § 1350. | |
101 | Financial Statements submitted in XBRL format. |
CITIZENS HOLDING COMPANY | ||
BY: | /s/ Greg L. McKee | |
Greg L. McKee | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
BY: | /s/ | |
Treasurer and Chief Financial Officer | ||
(Principal Financial Officer and Chief Accounting Officer) | ||
DATE: November |
47