| Mississippi (State or other jurisdiction of incorporation or organization) | | | 6021 (Primary Standard Industrial Classification Code Number) | | | 64-0862173 (I.R.S. Employer Identification No.) | |
| Mark C. Kanaly William W. Hooper Alston & Bird LLP One Atlantic Center 1201 West Peachtree Street Atlanta, Georgia 30309 (404) 881-7000 | | | 201 17th Street NW, Suite | |
| Large accelerated filer ☒ | | | Accelerated filer ☐ | | | Non-accelerated filer ☐ | | | Smaller reporting company ☐ | | | Emerging growth company ☐ | |
| | | |
| M. Ray “Hoppy” Cole, Jr. Chairman of the Board of Directors, President and Chief Executive Officer The First Bancshares, Inc. | | | Leonard Moreland Chief Executive Officer Heritage Southeast Bancorporation, Inc. | |
The First Bancshares, Inc. 6480 U.S. Hwy, 98 West Hattiesburg, Mississippi 39402 Attention: Chandra B. Kidd, Secretary Telephone: (601) 268-8998 E-Mail: ckidd@thefirstbank.com |
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| | | First Bancshares Common Stock | | | HSBI Common Stock | | | Implied Value of One Share of First Bancshares Common Stock | | |||||||||
July 26, 2022 | | | | $ | 29.68 | | | | | $ | 21.70 | | | | | $ | 28.64 | | |
[ ], 2022 | | | | | | | | | | | | | | | | | | | |
| | | First Bancshares Common Stock | | | Implied Value of One Share of BBI Common Stock to be Converted to First Bancshares Common Stock | | ||||||
April 25, 2022 | | | | $ | 32.92 | | | | | $ | 5.63 | | |
[ ], 2022 | | | | $ | [ ] | | | | | $ | [ ] | | |
| | | As of and for the Three Months Ended March 31, | | | As of and for the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | |||||||||||||||||||||
| | | (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | | (in thousands, except ratios, share and per share data) | | |||||||||||||||||||||||||||||||||||||||
Selected Consolidated Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | $ | 42,741 | | | | | $ | 45,187 | | | | | $ | 176,745 | | | | | $ | 179,348 | | | | | $ | 148,529 | | | | | $ | 99,978 | | | | | $ | 66,069 | | |
Interest expense | | | | | 4,102 | | | | | | 5,958 | | | | | | 19,681 | | | | | | 26,664 | | | | | | 26,723 | | | | | | 15,091 | | | | | | 6,909 | | |
Net interest income | | | | | 38,639 | | | | | | 39,229 | | | | | | 157,064 | | | | | | 152,684 | | | | | | 121,806 | | | | | | 84,887 | | | | | | 59,160 | | |
Provision for loan losses | | | | | — | | | | | | — | | | | | | (1,104) | | | | | | 25,151 | | | | | | 3,738 | | | | | | 2,120 | | | | | | 506 | | |
Net interest income after provision for loan losses | | | | | 38,639 | | | | | | 39,229 | | | | | | 158,168 | | | | | | 127,533 | | | | | | 118,068 | | | | | | 82,767 | | | | | | 58,654 | | |
Noninterest income | | | | | 11,157 | | | | | | 9,472 | | | | | | 37,473 | | | | | | 41,876 | | | | | | 26,947 | | | | | | 20,561 | | | | | | 14,363 | | |
Noninterest expense | | | | | 28,590 | | | | | | 27,264 | | | | | | 114,559 | | | | | | 106,341 | | | | | | 88,569 | | | | | | 76,311 | | | | | | 55,446 | | |
Income before income tax expense | | | | | 21,206 | | | | | | 21,437 | | | | | | 81,082 | | | | | | 63,068 | | | | | | 56,446 | | | | | | 27,017 | | | | | | 17,571 | | |
Income tax expense | | | | | 4,377 | | | | | | 4,793 | | | | | | 16,915 | | | | | | 10,563 | | | | | | 12,701 | | | | | | 5,792 | | | | | | 6,955 | | |
Net income | | | | | 16,829 | | | | | | 16,644 | | | | | | 64,167 | | | | | | 52,505 | | | | | | 43,745 | | | | | | 21,225 | | | | | | 10,616 | | |
Preferred dividends and stock accretion | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income available to common shareholders | | | | $ | 16,829 | | | | | $ | 16,644 | | | | | $ | 64,167 | | | | | $ | 52,505 | | | | | $ | 43,745 | | | | | $ | 21,225 | | | | | $ | 10,616 | | |
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale | | | | $ | 1,613,903 | | | | | $ | 1,157,326 | | | | | $ | 1,774,058 | | | | | $ | 1,049,657 | | | | | $ | 791,777 | | | | | $ | 508,928 | | | | | $ | 366,862 | | |
Securities held to maturity | | | | | 372,062 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,000 | | | | | | 6,000 | | |
Loans, net of allowance for loan losses | | | | | 2,938,626 | | | | | | 3,022,430 | | | | | | 2,928,811 | | | | | | 3,087,858 | | | | | | 2,586,450 | | | | | | 2,050,357 | | | | | | 1,217,018 | | |
Total assets | | | | | 6,196,095 | | | | | | 5,442,798 | | | | | | 6,077,414 | | | | | | 5,152,760 | | | | | | 3,941,863 | | | | | | 3,003,986 | | | | | | 1,813,238 | | |
Deposits | | | | | 5,437,738 | | | | | | 4,620,297 | | | | | | 5,226,784 | | | | | | 4,215,280 | | | | | | 3,076,533 | | | | | | 2,457,459 | | | | | | 1,470,565 | | |
Shareholders’ equity | | | | | 590,440 | | | | | | 643,949 | | | | | | 676,172 | | | | | | 644,815 | | | | | | 543,658 | | | | | | 363,254 | | | | | | 222,468 | | |
Per Share Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per common share, basic | | | | $ | .81 | | | | | $ | .79 | | | | | $ | 3.05 | | | | | $ | 2.53 | | | | | $ | 2.57 | | | | | $ | 1.63 | | | | | $ | 1.12 | | |
Earnings per common share, diluted | | | | | .81 | | | | | | .79 | | | | | | 3.03 | | | | | | 2.52 | | | | | | 2.55 | | | | | | 1.62 | | | | | | 1.11 | | |
| | | As of and for the Three Months Ended March 31, | | | As of and for the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | |||||||||||||||||||||
| | | (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | | (in thousands, except ratios, share and per share data) | | |||||||||||||||||||||||||||||||||||||||
Cash dividends paid per common share | | | | | 3,423 | | | | | | 2,688 | | | | | | 11,991 | | | | | | 8,589 | | | | | | 5,190 | | | | | | 2,557 | | | | | | 1,416 | | |
Weighted average common shares outstanding, basic | | | | | 20,697,946 | | | | | | 21,009,088 | | | | | | 21,017,189 | | | | | | 20,718,544 | | | | | | 17,050,095 | | | | | | 12,985,733 | | | | | | 9,484,460 | | |
Weighted average common shares outstanding, diluted | | | | | 20,846,997 | | | | | | 21,200,558 | | | | | | 21,166,709 | | | | | | 20,822,650 | | | | | | 17,184,085 | | | | | | 13,093,925 | | | | | | 9,561,260 | | |
Book value per common share | | | | $ | 28.82 | | | | | $ | 30.64 | | | | | $ | 32.17 | | | | | $ | 30.54 | | | | | $ | 28.91 | | | | | $ | 24.49 | | | | | $ | 19.92 | | |
Performance Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | | | 1.09% | | | | | | 1.25% | | | | | | 1.17% | | | | | | 1.10% | | | | | | 1.26% | | | | | | 0.87% | | | | | | .60% | | |
Return on average equity | | | | | 10.1 | | | | | | 10.3 | | | | | | 9.8 | | | | | | 8.6 | | | | | | 9.5 | | | | | | 7.6 | | | | | | 6.2 | | |
Net interest margin | | | | | 2.73 | | | | | | 3.28 | | | | | | 3.16 | | | | | | 3.59 | | | | | | 3.98 | | | | | | 3.89 | | | | | | 3.75 | | |
Net interest margin, fully tax equivalent basis(1) | | | | | 2.78 | | | | | | 3.34 | | | | | | 3.21 | | | | | | 3.64 | | | | | | 4.02 | | | | | | 3.94 | | | | | | 3.83 | | |
| | | As of and for the Three Months Ended March 31, | | | As of and for the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | |||||||||||||||||||||
| | | (unaudited) | | | | | | | ||||||||||||||||||||||||||||||||||
| | | (in thousands, except ratios, share and per share data) | | |||||||||||||||||||||||||||||||||||||||
Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans to total loans and other real estate | | | | | 0.83 | | | | | | 0.98 | | | | | | 0.94 | | | | | | 1.07 | | | | | | 1.48 | | | | | | 1.21 | | | | | | 0.46 | | |
Allowance for loan losses to total loans | | | | | 1.06 | | | | | | 1.07 | | | | | | 1.04 | | | | | | 1.14 | | | | | | 0.53 | | | | | | 0.49 | | | | | | 0.67 | | |
Allowance for loan losses to nonaccrual loans | | | | | 1.28x | | | | | | 1.09x | | | | | | 1.10x | | | | | | 1.06x | | | | | | .36x | | | | | | .46x | | | | | | 1.5x | | |
Net charge-offs to average total loans | | | | | (0.1) | | | | | | 0.5 | | | | | | 0.13 | | | | | | 0.11 | | | | | | (0.004) | | | | | | 0.01 | | | | | | (0.02) | | |
Consolidated Capital Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | | | 8.2 | | | | | | 9.0 | | | | | | 9.2 | | | | | | 9.2 | | | | | | 10.3 | | | | | | 10.2 | | | | | | 11.7 | | |
Common equity Tier 1 capital ratio | | | | | 13.0 | | | | | | 13.8 | | | | | | 13.7 | | | | | | 13.5 | | | | | | 12.5 | | | | | | 11.5 | | | | | | 14.2 | | |
Tier 1 risk-based capital ratio | | | | | 13.5 | | | | | | 14.3 | | | | | | 14.1 | | | | | | 14.0 | | | | | | 13.0 | | | | | | 12.2 | | | | | | 14.9 | | |
Total risk-based capital ratio | | | | | 17.8 | | | | | | 19.3 | | | | | | 18.6 | | | | | | 19.1 | | | | | | 15.8 | | | | | | 15.6 | | | | | | 15.5 | | |
Total shareholders’ equity to total assets | | | | | 9.5 | | | | | | 11.8 | | | | | | 11.1 | | | | | | 12.5 | | | | | | 13.8 | | | | | | 12.1 | | | | | | 12.3 | | |
| | | First Bancshares Common Stock | | | | |||||||||||||||||||
| | | Sale Price | | | Dividends Declared Per Share | | | | | | | | ||||||||||||
| | | High | | | Low | | | | ||||||||||||||||
2019 | | | | | | | | | | | | | | | | | | | | | | ||||
First Quarter | | | | $ | 33.09 | | | | | $ | 29.09 | | | | | $ | 0.07 | | | | | ||||
Second Quarter | | | | $ | 31.72 | | | | | $ | 28.07 | | | | | $ | 0.08 | | | | | ||||
Third Quarter | | | | $ | 34.28 | | | | | $ | 29.43 | | | | | $ | 0.08 | | | | | ||||
Fourth Quarter | | | | $ | 35.88 | | | | | $ | 30.93 | | | | | $ | 0.08 | | | | | ||||
2020 | | | | | | | | | | | | | | | | | | | | | | ||||
First Quarter | | | | $ | 35.62 | | | | | $ | 15.27 | | | | | $ | 0.10 | | | | | ||||
Second Quarter | | | | $ | 25.48 | | | | | $ | 16.05 | | | | | $ | 0.10 | | | | | ||||
Third Quarter | | | | $ | 23.96 | | | | | $ | 19.10 | | | | | $ | 0.10 | | | | | ||||
Fourth Quarter | | | | $ | 31.00 | | | | | $ | 20.66 | | | | | $ | 0.12 | | | | | ||||
2021 | | | | | | | | | | | | | | | | | | | | | | ||||
First Quarter | | | | $ | 38.39 | | | | | $ | 29.17 | | | | | $ | 0.13 | | | | | ||||
Second Quarter | | | | $ | 40.46 | | | | | $ | 36.36 | | | | | $ | 0.14 | | | | | ||||
Third Quarter | | | | $ | 41.41 | | | | | $ | 34.76 | | | | | $ | 0.15 | | | | | ||||
Fourth Quarter | | | | $ | 42.89 | | | | | $ | 36.30 | | | | | $ | 0.16 | | | | | ||||
2022 | | | | | | | | | | | | | | | | | | | | | | ||||
First Quarter | | | | $ | 40.81 | | | | | $ | 33.33 | | | | | $ | 0.17 | | | | | ||||
Second Quarter (through , 2022) | | | | | — | | | | | | — | | | | | | — | | | | |
| | | First Bancshares Historical | | | BBI Historical | | | Pro Forma Adjustments | | | Notes | | | Pro Forma First Bancshares and BBI Combined | | ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks and interest-bearing bank balances and interest-bearing time deposits | | | | $ | 356,771 | | | | | $ | 42,312 | | | | | $ | (12,300) | | | | (12) | | | | $ | 386,783 | | |
Securities and Federal Home Loan Bank Stock | | | | | 2,104,989 | | | | | | 23,357 | | | | | | — | | | | | | | | | 2,128,346 | | |
Loans, net | | | | | 3,092,524 | | | | | | 478,599 | | | | | | (2,808) | | | | (2)(3)(4) | | | | | 3,568,315 | | |
Mortgage loans held for sale | | | | | 6,703 | | | | | | 1,379 | | | | | | — | | | | | | | | | 8,082 | | |
Other assets | | | | | 123,329 | | | | | | 31,292 | | | | | | — | | | | | | | | | 154,621 | | |
Buildings, Furniture & Fixtures and Equipment | | | | | 132,724 | | | | | | 15,941 | | | | | | (802) | | | | (8) | | | | | 147,863 | | |
Deferred tax asset | | | | | 36,062 | | | | | | 25,972 | | | | | | 1,491 | | | | (1) | | | | | 63,525 | | |
Core deposit intangible | | | | | 27,381 | | | | | | — | | | | | | 9,791 | | | | (5) | | | | | 37,172 | | |
Goodwill | | | | | 156,942 | | | | | | 414 | | | | | | 8,093 | | | | (7) | | | | | 165,449 | | |
Total assets | | | | $ | 6,037,425 | | | | | $ | 619,266 | | | | | $ | 3,465 | | | | | | | | $ | 6,660,156 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 5,306,197 | | | | | $ | 486,111 | | | | | $ | 547 | | | | (9) | | | | $ | 5,792,855 | | |
Federal Home Loan Bank Advances and other borrowings | | | | | 129,495 | | | | | | 35,000 | | | | | | — | | | | | | | | | 164,495 | | |
Trust Preferred | | | | | 15,381 | | | | | | — | | | | | | — | | | | | | | | | 15,381 | | |
Other liabilities | | | | | 25,900 | | | | | | 14,802 | | | | | | — | | | | | | | | | 40,702 | | |
Total Liabilities | | | | | 5,476,973 | | | | | | 535,913 | | | | | | 547 | | | | | | | | | 6,013,433 | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity | | | | | 560,452 | | | | | | 83,353 | | | | | | 2,918 | | | | (6) | | | | | 646,723 | | |
Total liabilities and stockholders’ equity | | | | $ | 6,037,425 | | | | | $ | 619,266 | | | | | $ | 3,465 | | | | | | | | $ | 6,660,156 | | |
| | | Pro Forma First Bancshares and BBI Combined | | | HSBI Historical | | | Pro Forma Adjustments | | | Notes | | | Pro Forma First Bancshares and HSBI Combined | | ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks and interest-bearing bank balances and interest-bearing time deposits | | | | $ | 386,783 | | | | | $ | 298,424 | | | | | $ | (21,125) | | | | (12)(13) | | | | $ | 664,082 | | |
Securities and Federal Home Loan Bank Stock | | | | | 2,128,346 | | | | | | 193,809 | | | | | | — | | | | | | | | | 2,322,155 | | |
Loans, net | | | | | 3,568,315 | | | | | | 1,095,963 | | | | | | (13,280) | | | | (2)(3)(4) | | | | | 4,650,998 | | |
Mortgage loans held for sale | | | | | 8,082 | | | | | | — | | | | | | — | | | | | | | | | 8,082 | | |
Other assets | | | | | 154,621 | | | | | | 43,090 | | | | | | — | | | | | | | | | 197,711 | | |
Buildings, Furniture & Fixtures and Equipment | | | | | 147,863 | | | | | | 33,812 | | | | | | 1,400 | | | | (8) | | | | | 183,075 | | |
Deferred tax asset | | | | | 63,525 | | | | | | 12,850 | | | | | | 1 | | | | (1) | | | | | 76,376 | | |
Core deposit intangible | | | | | 37,172 | | | | | | 6,809 | | | | | | 19,100 | | | | (5) | | | | | 63,081 | | |
Goodwill | | | | | 165,449 | | | | | | 28,275 | | | | | | 42,628 | | | | (7) | | | | | 236,352 | | |
Total assets | | | | $ | 6,660,156 | | | | | $ | 1,713,032 | | | | | $ | 28,724 | | | | | | | | $ | 8,401,912 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 5,792,855 | | | | | $ | 1,486,448 | | | | | $ | 1,900 | | | | (9) | | | | $ | 7,281,203 | | |
Federal Home Loan Bank Advances and other borrowings | | | | | 164,495 | | | | | | 56,954 | | | | | | — | | | | | | | | | 221,449 | | |
Trust Preferred | | | | | 15,381 | | | | | | 9,480 | | | | | | (2,100) | | | | (10) | | | | | 22,761 | | |
Other liabilities | | | | | 40,702 | | | | | | 10,163 | | | | | | — | | | | | | | | | 50,865 | | |
Total Liabilities | | | | | 6,013,433 | | | | | | 1,563,045 | | | | | | (200) | | | | | | | | | 7,576,278 | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity | | | | | 646,723 | | | | | | 149,987 | | | | | | 28,924 | | | | (6) | | | | | 825,634 | | |
Total liabilities and stockholders’ equity | | | | $ | 6,660,156 | | | | | $ | 1,713,032 | | | | | $ | 28,724 | | | | | | | | $ | 8,401,912 | | |
| | | First Bancshares Historical | | | BBI Historical | | | Pro Forma Adjustments | | | Notes | | | Pro Forma First Bancshares and BBI Combined | | ||||||||||||
Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans | | | | $ | 68,817 | | | | | $ | 9,593 | | | | | $ | 1,032 | | | | (17) | | | | $ | 79,442 | | |
Investment Securities and Other Income | | | | | 19,771 | | | | | | 341 | | | | | | — | | | | | | | | | 20,112 | | |
Total Interest Income | | | | | 88,588 | | | | | | 9,934 | | | | | | 1,032 | | | | | | | | | 99,554 | | |
Interest Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 4,188 | | | | | | 862 | | | | | | (275) | | | | (14) | | | | | 4,775 | | |
Borrowed Funds | | | | | 3,660 | | | | | | 154 | | | | | | — | | | | | | | | | 3,814 | | |
Total Interest Expense | | | | | 7,848 | | | | | | 1,016 | | | | | | (275) | | | | | | | | | 8,589 | | |
Net Interest Income | | | | | 80,740 | | | | | | 8,918 | | | | | | 1,307 | | | | | | | | | 90,965 | | |
Provision for Loan Losses | | | | | 600 | | | | | | — | | | | | | 3,145 | | | | (3) | | | | | 3,745 | | |
Net interest income after provision for loan losses | | | | | 80,140 | | | | | | 8,918 | | | | | | (1,838) | | | | | | | | | 87,220 | | |
Non-Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fees and service charges | | | | | 4,078 | | | | | | 507 | | | | | | — | | | | | | | | | 4,585 | | |
Other | | | | | 15,743 | | | | | | 3,539 | | | | | | — | | | | | | | | | 19,282 | | |
Total non-interest income | | | | | 19,821 | | | | | | 4,046 | | | | | | — | | | | | | | | | 23,867 | | |
Non-Interest Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 34,036 | | | | | | 6,483 | | | | | | — | | | | | | | | | 40,519 | | |
Occupancy and equipment | | | | | 7,704 | | | | | | 903 | | | | | | (3) | | | | (15) | | | | | 8,604 | | |
Other operating expense | | | | | 14,097 | | | | | | 2,804 | | | | | | — | | | | | | | | | 16,901 | | |
Amortization of core deposit intangible | | | | | 2,128 | | | | | | — | | | | | | 163 | | | | (16) | | | | | 2,291 | | |
Merger related expense | | | | | 1,580 | | | | | | — | | | | | | — | | | | | | | | | 1,580 | | |
Total non-interest expense | | | | | 59,545 | | | | | | 10,190 | | | | | | 160 | | | | | | | | | 69,895 | | |
Income before provision for income taxes | | | | | 40,416 | | | | | | 2,774 | | | | | | (1,998) | | | | | | | | | 41,192 | | |
Provision for income taxes | | | | | 7,834 | | | | | | 725 | | | | | | (505) | | | | (18) | | | | | 8,054 | | |
Net Income (loss) | | | | | 32,582 | | | | | | 2,049 | | | | | | (1,493) | | | | | | | | | 33,138 | | |
Net income (loss) applicable to common shareholders | | | | $ | 32,582 | | | | | $ | 2,049 | | | | | $ | (1,493) | | | | | | | | $ | 33,138 | | |
Net Income Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 1.58 | | | | | | | | | | | | | | | | | | | | $ | 1.37 | | |
Diluted | | | | $ | 1.57 | | | | | | | | | | | | | | | | | | | | $ | 1.37 | | |
Dividends per common share | | | | $ | 0.35 | | | | | | | | | | | | | | | | | | | | $ | 0.35 | | |
Weighted-average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 20,602,698 | | | | | | | | | | | | 3,498,936 | | | | | | | | | 24,101,634 | | |
Diluted | | | | | 20,725,545 | | | | | | | | | | | | | | | | | | | | | 24,224,481 | | |
| | | Pro Forma First Bancshares and BBI Combined | | | HSBI Historical | | | Pro Forma Adjustments | | | Notes | | | Pro Forma First Bancshares and HSBI Combined | | ||||||||||||
Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans | | | | $ | 79,442 | | | | | $ | 25,535 | | | | | $ | 3,100 | | | | (17) | | | | $ | 108,077 | | |
Investment Securities and Other Income | | | | | 20,112 | | | | | | 2,116 | | | | | | — | | | | | | | | | 22,228 | | |
Total Interest Income | | | | | 99,554 | | | | | | 27,651 | | | | | | 3,100 | | | | | | | | | 130,305 | | |
Interest Expense | | | | | — | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 4,775 | | | | | | 1,320 | | | | | | (475) | | | | (14) | | | | | 5,620 | | |
Borrowed Funds | | | | | 3,814 | | | | | | 801 | | | | | | 81 | | | | (19) | | | | | 4,969 | | |
Total Interest Expense | | | | | 8,589 | | | | | | 2,121 | | | | | | (394) | | | | | | | | | 10,316 | | |
Net Interest Income | | | | | 90,965 | | | | | | 25,530 | | | | | | 3,494 | | | �� | | | | | | 118,877 | | |
Provision for Loan Losses | | | | | 4,046 | | | | | | — | | | | | | 3,376 | | | | (3) | | | | | 7,422 | | |
Net interest income after provision for loan losses | | | | | 85,807 | | | | | | 25,530 | | | | | | 118 | | | | | | | | | 112,868 | | |
Non-Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fees and service charges | | | | | 4,585 | | | | | | 5,960 | | | | | | — | | | | | | | | | 10,545 | | |
Other | | | | | 19,282 | | | | | | 2,492 | | | | | | — | | | | | | | | | 21,774 | | |
Total non-interest income | | | | | 23,867 | | | | | | 8,452 | | | | | | — | | | | | | | | | 32,319 | | |
Non-Interest Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 40,519 | | | | | | 14,318 | | | | | | — | | | | | | | | | 54,837 | | |
Occupancy and equipment | | | | | 8,604 | | | | | | 2,775 | | | | | | — | | | | | | | | | 11,379 | | |
Other operating expense | | | | | 16,901 | | | | | | 6,914 | | | | | | 35 | | | | (15) | | | | | 23,850 | | |
Amortization of core deposit intangible | | | | | 2,291 | | | | | | — | | | | | | 955 | | | | (16) | | | | | 3,246 | | |
Merger related expense | | | | | 1,580 | | | | | | 918 | | | | | | — | | | | | | | | | 2,498 | | |
Total non-interest expense | | | | | 69,895 | | | | | | 24,925 | | | | | | 990 | | | | | | | | | 95,810 | | |
Income before provision for income taxes | | | | | 41,192 | | | | | | 9,057 | | | | | | (872) | | | | | | | | | 49,377 | | |
Provision for income taxes | | | | | 8,054 | | | | | | 1,888 | | | | | | (221) | | | | (18) | | | | | 9,721 | | |
Net Income (loss) | | | | | 33,138 | | | | | | 7,169 | | | | | | (651) | | | | | | | | | 39,656 | | |
Net income (loss) applicable to common shareholders | | | | $ | 33,138 | | | | | $ | 7,169 | | | | | $ | (651) | | | | | | | | $ | 39,656 | | |
Net Income Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 1.37 | | | | | | | | | | | | | | | | | | | | $ | 1.28 | | |
Diluted | | | | $ | 1.37 | | | | | | | | | | | | | | | | | | | | $ | 1.27 | | |
Dividends per common share | | | | $ | 0.35 | | | | | | | | | | | | | | | | | | | | $ | 0.27 | | |
Weighted-average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 24,101,634 | | | | | | | | | | | | 6,962,435 | | | | | | | | | 31,064,069 | | |
Diluted | | | | | 24,224,481 | | | | | | | | | | | | | | | | | | | | | 31,186,916 | | |
| | | First Bancshares Historical | | | BBI Historical | | | Pro Forma Adjustments | | | Notes | | | Pro Forma First Bancshares and BBI Combined | | ||||||||||||
Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans | | | | $ | 151,203 | | | | | $ | 18,579 | | | | | $ | 2,064 | | | | (17) | | | | $ | 171,846 | | |
Investment Securities and Other Income | | | | | 25,542 | | | | | | 436 | | | | | | — | | | | | | | | | 25,978 | | |
Total Interest Income | | | | | 176,745 | | | | | | 19,015 | | | | | | 2,064 | | | | | | | | | 197,824 | | |
Interest Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 12,062 | | | | | | 2,125 | | | | | | (550) | | | | (14) | | | | | 14,737 | | |
Borrowed Funds | | | | | 7,619 | | | | | | 324 | | | | | | — | | | | | | | | | 7,943 | | |
Total Interest Expense | | | | | 19,681 | | | | | | 2,449 | | | | | | (550) | | | | | | | | | 22,680 | | |
Net Interest Income | | | | | 157,064 | | | | | | 16,566 | | | | | | 2,614 | | | | | | | | | 176,244 | | |
Provision for Loan Losses | | | | | (1,104) | | | | | | 372 | | | | | | 3,145 | | | | (3) | | | | | 2,413 | | |
Net interest income after provision for loan losses | | | | | 158,168 | | | | | | 16,194 | | | | | | (531) | | | | | | | | | 173,831 | | |
Non-Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fees and service charges | | | | | 20,334 | | | | | | 1,023 | | | | | | — | | | | | | | | | 21,357 | | |
Other | | | | | 17,139 | | | | | | 5,516 | | | | | | — | | | | | | | | | 22,655 | | |
Total non-interest income | | | | | 37,473 | | | | | | 6,539 | | | | | | — | | | | | | | | | 44,012 | | |
Non-Interest Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 65,856 | | | | | | 12,344 | | | | | | — | | | | | | | | | 78,200 | | |
Occupancy and equipment | | | | | 12,713 | | | | | | 1,712 | | | | | | (21) | | | | (15) | | | | | 14,404 | | |
Other operating expense | | | | | 30,246 | | | | | | 5,534 | | | | | | — | | | | | | | | | 35,780 | | |
Amortization of core deposit intangible | | | | | 4,137 | | | | | | — | | | | | | 326 | | | | (16) | | | | | 4,463 | | |
Merger related expense | | | | | 1,607 | | | | | | — | | | | | | — | | | | | | | | | 1,607 | | |
Total non-interest expense | | | | | 114,559 | | | | | | 19,590 | | | | | | 305 | | | | | | | | | 134,454 | | |
Income before provision for income taxes | | | | | 81,082 | | | | | | 3,143 | | | | | | (836) | | | | | | | | | 83,389 | | |
Provision for income taxes | | | | | 16,915 | | | | | | 850 | | | | | | (212) | | | | (18) | | | | | 17,553 | | |
Net Income (loss) | | | | | 64,167 | | | | | | 2,293 | | | | | | (624) | | | | | | | | | 65,836 | | |
Preferred dividends and stock accretion | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) applicable to common shareholders | | | | $ | 64,167 | | | | | $ | 2,293 | | | | | $ | (624) | | | | | | | | $ | 65,836 | | |
Net Income Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 3.05 | | | | | | | | | | | | | | | | | | | | $ | 2.69 | | |
Diluted | | | | $ | 3.03 | | | | | | | | | | | | | | | | | | | | $ | 2.67 | | |
Dividends per common share | | | | $ | 0.5800 | | | | | | | | | | | | | | | | | | | | $ | 0.5800 | | |
Weighted-average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 21,017,189 | | | | | | | | | | | | 3,498,936 | | | | | | | | | 24,516,125 | | |
Diluted | | | | | 21,166,709 | | | | | | | | | | | | | | | | | | | | | 24,665,645 | | |
| | | First Bancshares and BBI Pro Forma Historical | | | HSBI Historical | | | Pro Forma Adjustments | | | Notes | | | Pro Forma First Bancshares and HSBI Combined | | ||||||||||||
Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans | | | | $ | 171,846 | | | | | $ | 54,125 | | | | | $ | 6,200 | | | | (17) | | | | $ | 232,171 | | |
Investment Securities and Other Income | | | | | 25,978 | | | | | | 2,329 | | | | | | — | | | | | | | | | 28,307 | | |
Total Interest Income | | | | | 197,824 | | | | | | 56,454 | | | | | | 6,200 | | | | | | | | | 260,478 | | |
Interest Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 14,737 | | | | | | 3,292 | | | | | | (950) | | | | (14) | | | | | 17,079 | | |
Borrowed Funds | | | | | 7,943 | | | | | | 1,880 | | | | | | 162 | | | | (19) | | | | | 9,985 | | |
Total Interest Expense | | | | | 22,680 | | | | | | 5,172 | | | | | | (788) | | | | | | | | | 27,064 | | |
Net Interest Income | | | | | 176,244 | | | | | | 51,282 | | | | | | 6,988 | | | | | | | | | 234,514 | | |
Provision for Loan Losses | | | | | 2,413 | | | | | | — | | | | | | 3,376 | | | | (3) | | | | | 5,789 | | |
Net interest income after provision for loan losses | | | | | 173,831 | | | | | | 51,282 | | | | | | 3,612 | | | | | | | | | 228,725 | | |
Non-Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fees and service charges | | | | | 21,357 | | | | | | 11,978 | | | | | | — | | | | | | | | | 33,335 | | |
Other | | | | | 22,655 | | | | | | 6,991 | | | | | | — | | | | | | | | | 29,646 | | |
Total non-interest income | | | | | 44,012 | | | | | | 18,969 | | | | | | — | | | | | | | | | 62,981 | | |
Non-Interest Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 78,200 | | | | | | 26,531 | | | | | | — | | | | | | | | | 104,731 | | |
Occupancy and equipment | | | | | 14,404 | | | | | | 5,424 | | | | | | — | | | | | | | | | 19,828 | | |
Other operating expense | | | | | 35,780 | | | | | | 14,383 | | | | | | 70 | | | | (15) | | | | | 50,233 | | |
Amortization of core deposit intangible | | | | | 4,463 | | | | | | 950 | | | | | | 1,910 | | | | (16) | | | | | 7,323 | | |
Merger related expense | | | | | 1,607 | | | | | | 5,160 | | | | | | — | | | | | | | | | 6,767 | | |
Total non-interest expense | | | | | 134,454 | | | | | | 52,448 | | | | | | 1,980 | | | | | | | | | 188,882 | | |
Income before provision for income taxes | | | | | 83,389 | | | | | | 17,803 | | | | | | 1,632 | | | | | | | | | 102,824 | | |
Provision for income taxes | | | | | 17,553 | | | | | | 3,989 | | | | | | 413 | | | | (18) | | | | | 21,955 | | |
Net Income (loss) | | | | | 65,836 | | | | | | 13,814 | | | | | | 1,219 | | | | | | | | | 80,869 | | |
Preferred dividends and stock accretion | | | | | | | | | | | | | | | | | | | | | | | | | | — | | |
Net income (loss) applicable to common shareholders | | | | $ | 65,836 | | | | | $ | 13,814 | | | | | $ | 1,219 | | | | | | | | | 80,869 | | |
Net Income Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 2.69 | | | | | | | | | | | | | | | | | | | | $ | 2.57 | | |
Diluted | | | | $ | 2.67 | | | | | | | | | | | | | | | | | | | | $ | 2.56 | | |
Dividends per common share | | | | $ | 0.58 | | | | | | | | | | | | | | | | | | | | $ | 0.5800 | | |
Weighted-average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 24,516,125 | | | | | | | | | | | | 6,962,435 | | | | | | | | | 31,478,560 | | |
Diluted | | | | | 24,665,645 | | | | | | | | | | | | | | | | | | | | | 31,628,080 | | |
| | | BBI Common Stock | | | BBI Preferred Stock | | ||||||||||||||||||
| | | Sale Price | | | Sale Price | | ||||||||||||||||||
| | | High | | | Low | | | High | | | Low | | ||||||||||||
2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Second Quarter | | | | $ | 3.45 | | | | | $ | 3.45 | | | | | $ | 3.45 | | | | | $ | 3.45 | | |
Third Quarter | | | | $ | 3.30 | | | | | $ | 3.30 | | | | | $ | — | | | | | $ | — | | |
Fourth Quarter | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Second Quarter | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Third Quarter | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Fourth Quarter | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
2022 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Second Quarter (through , 2022) | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| HSBI common shares outstanding as of June 30, 2022 | | | | | 7,020,849 | | |
| HSBI common shares issuable under HSBI SERP Agreements | | | | | 194,110 | | |
| Price per share, based upon First Bancshares’ price of $30.66 on July 27, 2022 | | | | | 29.59 | | |
| Total pro forma purchase price from common stock | | | | | 213,490,637 | | |
| Consideration to be paid to holders of HSBI options | | | | | 647,914 | | |
| Total Pro Forma Purchase Price | | | | $ | 214,138,551 | | |
| Preliminary Purchase Price: | | | | | | | | | | | | | |
| Cash paid and value of stock issued | | | | | | | | | | $ | 214,138 | | |
| Identifiable Assets | | | | | | | | | | | | | |
| Cash and due from banks | | | | $ | 298,424 | | | | | | | | |
| Securities, FHLB Stock and FNBB Stock | | | | | 193,809 | | | | | | | | |
| Loans (net), leases, and interest receivable | | | | | 1,082,683 | | | | | | | | |
| Core Deposit Intangible | | | | | 25,909 | | | | | | | | |
| Personal and Real Property | | | | | 35,212 | | | | | | | | |
| Other Assets | | | | | 55,940 | | | | | | | | |
| Total assets acquired | | | | | 1,691,977 | | | | | | | | |
| Fair value of liabilities acquired: | | | | | | | | | | | | | |
| Deposits | | | | | 1,488,348 | | | | | | | | |
| Other borrowings | | | | | 64,334 | | | | | | | | |
| Other liabilities | | | | | 10,163 | | | | | | | | |
| Total liabilities assumed | | | | | 1,562,845 | | | | | | | | |
| Fair Value of net assets acquired | | | | | | | | | | | 129,132 | | |
| Preliminary pro forma goodwill | | | | | | | | | | | 85,007 | | |
| Transaction Price Per Share / | | | 177% | | |||
| Transaction Price Per Share / LTM Earnings per Share. | | | | ||||
| Transaction Price Per Share / 2022 Est. Earnings per Share(1) | | | |||||
| ||||||||
| Tangible Book Premium(2) / Core Deposits | | | | ||||
Market Premium as of July 22, 2022 | | | 30.5% | |
| | Beginning Value April 20, 2021 | | Ending Value April 20, 2022 | | | Beginning Value 7/22/2021 | | Ending Value 7/22/2022 | | ||||||||||||||||
First Bancshares | | | | 100% | | | | | 92.1% | | | |||||||||||||||
First Bancshares Peer Group | | | | 100% | | | | | 101.9% | | | |||||||||||||||
HSBI | | | | 100% | | | | | 85.7% | | | |||||||||||||||
HSBI Peer Group | | | | 100% | | | | | 97.3% | | | |||||||||||||||
S&P 500 Bank Index | | | | 100% | | | | | 97.3% | | | | | | 100% | | | | | 84.8% | | | ||||
NASDAQ Bank Index | | | | 100% | | | | | 104.9% | | | | | | 100% | | | | | 95.2% | | |
| | Beginning Value April 20, 2019 | | Ending Value April 20, 2022 | | | Beginning Value 7/22/2019 | | Ending Value 7/22/2022 | | ||||||||||||||||
First Bancshares | | | | 100% | | | | | 111.1% | | | |||||||||||||||
First Bancshares Peer Group | | | | 100% | | | | | 123.9% | | | |||||||||||||||
HSBI | | | | 100% | | | | | 86.3% | | | |||||||||||||||
HSBI Peer Group | | | | 100% | | | | | 99.9% | | | |||||||||||||||
S&P 500 Bank Index | | | | 100% | | | | | 115.0% | | | | | | 100% | | | | | 100.5% | | | ||||
NASDAQ Bank Index | | | | 100% | | | | | 125.9% | | | | | | 100% | | | | | 113.0% | | |
| | | Beginning Value 7/22/2021 | | | Ending Value 7/22/2022 | | ||||||
FBMS | | | | | 100% | | | | | | 79.4% | | |
FBMS Peer Group | | | | | 100% | | | | | | 110.4% | | |
S&P 500 Bank Index | | | | | 100% | | | | | | 84.8% | | |
NASDAQ Bank Index . | | | | | 100% | | | | | | 95.2% | | |
| | | Beginning Value 7/22/2019 | | | Ending Value 7/22/2022 | | ||||||
FBMS | | | | | 100% | | | | | | 97.4% | | |
FBMS Peer Group | | | | | 100% | | | | | | 122.6% | | |
S&P 500 Bank Index | | | | | 100% | | | | | | 100.5% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 113.0% | | |
| | | | ||
| John Marshall Bancorp Inc. | | | First Community Corp. | |
| FVCBankcorp Inc. | | | Peoples Bancorp of NC Inc. | |
| USCB Financial | | | First National | |
| Virginia National Bankshares Corp. | | | Citizens Holding Co. | |
| Southern States Bancshares | | | Old Point Financial | |
| MainStreet Bancshares | | | Auburn National Bancorp. | |
| | BBI | | BBI Peer Group Median | | BBI Peer Group Mean | | BBI Peer Group High | | BBI Peer Group Low | | | HSBI | | HSBI Peer Group Median | | HSBI Peer Group Mean | | HSBI Peer Group Low | | HSBI Peer Group High | | ||||||||||||||||||||||||||||||||||||||||
Total assets ($mm) | | | | 620 | | | | | 575 | | | | | 594 | | | | | 682 | | | | | 505 | | | | | | 1,713 | | | | | 1,746 | | | | | 1,764 | | | | | 1,110 | | | | | 2,334 | | | ||||||||||
Loans / Deposits (%) | | | | 92.7 | | | | | 71.1 | | | | | 67.3 | | | | | 85.0 | | | | | 47.4 | | | | | | 74.8 | | | | | 68.6 | | | | | 69.0 | | | | | 42.1 | | | | | 99.4 | | | ||||||||||
Non-performing assets / Total assets (%) | | | | 1.81 | | | | | 0.52 | | | | | 0.55 | | | | | 1.73 | | | | | 0.01 | | | | | | 0.17 | | | | | 0.20 | | | | | 0.22 | | | | | 0.00 | | | | | 0.40 | | | ||||||||||
Tangible common equity/Tang. assets (%)(1)(4) | | | | 13.12 | | | | | 8.02 | | | | | 8.85 | | | | | 16.84 | | | | | 6.37 | | | ||||||||||||||||||||||||||||||||||||
Tangible common equity/Tangible assets (%) | | | | 6.85 | | | | | 7.68 | | | | | 7.61 | | | | | 3.70 | | | | | 9.76 | | | ||||||||||||||||||||||||||||||||||||
Leverage Ratio (%) | | | | 10.04 | | | | | 8.67 | | | | | 8.85 | | | | | 11.94 | | | | | 6.98 | | | | | | 9.89 | | | | | 9.33 | | | | | 9.70 | | | | | 7.70 | | | | | 14.47 | | | ||||||||||
Total RBC Ratio (%) | | | | 12.82 | | | | | 16.14 | | | | | 16.25 | | | | | 20.24 | | | | | 12.29 | | | | | | 13.73 | | | | | 15.42 | | | | | 15.40 | | | | | 13.15 | | | | | 18.90 | | | ||||||||||
CRE / Total RBC Ratio (%) | | | | 235.5 | | | | | 184.7 | | | | | 191.7 | | | | | 481.9 | | | | | 99.6 | | | | | | — | | | | | 226.9 | | | | | 253.3 | | | | | 153.2 | | | | | 386.1 | | | ||||||||||
LTM Return on average assets (%) | | | | 0.40 | | | | | 0.59 | | | | | 0.55 | | | | | 0.75 | | | | | 0.02 | | | | | | 0.81 | | | | | 1.02 | | | | | 0.99 | | | | | 0.55 | | | | | 1.38 | | | ||||||||||
LTM Return on average equity (%) | | | | 3.0 | | | | | 7.3 | | | | | 6.7 | | | | | 10.4 | | | | | 0.2 | | | | | | 9.2 | | | | | 11.0 | | | | | 10.5 | | | | | 6.2 | | | | | 14.5 | | | ||||||||||
LTM Net interest margin (%)(1)(10) | | | | 3.22 | | | | | 2.75 | | | | | 2.91 | | | | | 3.50 | | | | | 2.52 | | | ||||||||||||||||||||||||||||||||||||
LTM Efficiency ratio (%)(1)(11) | | | | 84.7 | | | | | 78.6 | | | | | 79.1 | | | | | 101.1 | | | | | 59.1 | | | ||||||||||||||||||||||||||||||||||||
LTM Net interest margin (%) | | | | — | | | | | 3.13 | | | | | 3.13 | | | | | 2.49 | | | | | 4.10 | | | ||||||||||||||||||||||||||||||||||||
LTM Efficiency ratio (%) | | | | 51.4 | | | | | 63.2 | | | | | 63.1 | | | | | 45.6 | | | | | 81.9 | | | ||||||||||||||||||||||||||||||||||||
Price/Tangible book value (%) | | | | — | | | | | 80 | | | | | 75 | | | | | 116 | �� | | | | 26 | | | | | | 135 | | | | | 127 | | | | | 131 | | | | | 96 | | | | | 202 | | | ||||||||||
Price/LTM Earnings per share (x) | | | | — | | | | | 13.0 | | | | | 12.5 | | | | | 23.9 | | | | | 5.2 | | | | | | 11.2 | | | | | 11.4 | | | | | 10.9 | | | | | 6.3 | | | | | 17.3 | | | ||||||||||
Current Dividend Yield (%) | | | | — | | | | | 2.2 | | | | | 2.7 | | | | | 6.4 | | | | | 0.7 | | | | | | — | | | | | 3.3 | | | | | 3.1 | | | | | 0.9 | | | | | 5.4 | | | ||||||||||
Market value ($mm) | | | | — | | | | | 39 | | | | | 38 | | | | | 69 | | | | | 14 | | | | | | 151 | | | | | 163 | | | | | 174 | | | | | 93 | | | | | 339 | | |
| | | German American Bancorp, Inc. | | |
| Westamerica Bancorporation | | | First Mid Bancshares, Inc. | |
| National Bank Holdings Corporation | | | Lakeland Financial | |
| Allegiance Bancshares, Inc. | | | Peapack-Gladstone Financial Corp. | |
| Southside Bancshares, Inc. | | | | |
| Univest Financial Corporation | | | Preferred Bank | |
| The Bancorp, Inc. | | | TrustCo Bank Corp NY | |
| Metropolitan Bank Holding Corp. | | | Old Second Bancorp, Inc. | |
| Byline Bancorp, Inc. | | | QCR Holdings, Inc. | |
| Hanmi Financial Corporation | | | | |
| | | First Bancshares | | | First Bancshares Peer Group Median | | | First Bancshares Peer Group Mean | | | First Bancshares Peer Group High | | | First Bancshares Peer Group Low | | |||||||||||||||
Total assets ($mm) | | | | | 6,174 | | | | | | 5,995 | | | | | | 5,901 | | | | | | 6,212 | | | | | | 5,500 | | |
Loans / Deposits (%) | | | | | 54.6 | | | | | | 82.4 | | | | | | 79.7 | | | | | | 104.8 | | | | | | 48.3 | | |
Non-performing assets / Total assets (%)(1) | | | | | — | | | | | | 0.47 | | | | | | 0.43 | | | | | | 1.03 | | | | | | 0.05 | | |
Tang. common equity/Tang. assets (%)(2) | | | | | 6.77 | | | | | | 9.01 | | | | | | 8.98 | | | | | | 13.46 | | | | | | 5.66 | | |
Leverage Ratio (%) | | | | | — | | | | | | 9.40 | | | | | | 9.50 | | | | | | 13.35 | | | | | | 6.06 | | |
Total RBC Ratio (%) | | | | | — | | | | | | 14.68 | | | | | | 14.85 | | | | | | 20.79 | | | | | | 11.76 | | |
CRE / Total RBC Ratio (%) | | | | | — | | | | | | 222.7 | | | | | | 214.0 | | | | | | 375.5 | | | | | | 18.9 | | |
LTM Return on average assets (%) | | | | | 1.11 | | | | | | 1.33 | | | | | | 1.27 | | | | | | 1.87 | | | | | | 0.50 | | |
LTM Return on average equity (%) | | | | | 9.9 | | | | | | 12.7 | | | | | | 12.1 | | | | | | 17.4 | | | | | | 6.0 | | |
LTM Net interest margin (%) | | | | | 2.97 | | | | | | 3.07 | | | | | | 3.26 | | | | | | 6.72 | | | | | | 2.38 | | |
LTM Efficiency ratio (%) | | | | | 59.2 | | | | | | 55.7 | | | | | | 55.9 | | | | | | 75.1 | | | | | | 30.7 | | |
Price/Tangible book value (%) | | | | | 172 | | | | | | 148 | | | | | | 159 | | | | | | 376 | | | | | | 102 | | |
Price/LTM Earnings per share (x) | | | | | 10.9 | | | | | | 11.3 | | | | | | 12.2 | | | | | | 22.9 | | | | | | 6.3 | | |
Price/2022E Earnings per share (x) | | | | | 10.9 | | | | | | 11.2 | | | | | | 11.9 | | | | | | 19.0 | | | | | | 8.4 | | |
Price/2023E Earnings per share (x) | | | | | 10.0 | | | | | | 10.1 | | | | | | 10.8 | | | | | | 17.1 | | | | | | 8.1 | | |
Current Dividend Yield (%) | | | | | 2.0 | | | | | | 2.9 | | | | | | 2.7 | | | | | | 4.4 | | | | | | 0.4 | | |
Market value ($mm) | | | | | 699 | | | | | | 752 | | | | | | 842 | | | | | | 1,989 | | | | | | 314 | | |
| | | FBMS | | | FBMS Peer Group Median | | | FBMS Peer Group Mean | | | FBMS Peer Group Low | | | FBMS Peer Group High | | |||||||||||||||
Total assets ($mm) | | | | | 6,037 | | | | | | 6,737 | | | | | | 6,726 | | | | | | 6,176 | | | | | | 7,239 | | |
Loans / Deposits (%) | | | | | 59.0 | | | | | | 75.7 | | | | | | 75.1 | | | | | | 15.6 | | | | | | 99.7 | | |
Non-performing assets / Total assets (%)(1) | | | | | 0.43 | | | | | | 0.31 | | | | | | 0.31 | | | | | | 0.01 | | | | | | 0.74 | | |
Tangible common equity/Tangible assets (%) | | | | | 6.43 | | | | | | 8.35 | | | | | | 8.29 | | | | | | 5.95 | | | | | | 9.86 | | |
Leverage Ratio (%)(2) | | | | | — | | | | | | 9.45 | | | | | | 9.44 | | | | | | 7.00 | | | | | | 10.78 | | |
Total RBC Ratio (%)(2) | | | | | — | | | | | | 14.64 | | | | | | 15.04 | | | | | | 12.78 | | | | | | 20.60 | | |
CRE / Total RBC Ratio (%) | | | | | — | | | | | | 221.5 | | | | | | 221.2 | | | | | | 17.4 | | | | | | 415.8 | | |
LTM Return on average assets (%) | | | | | 1.08 | | | | | | 1.25 | | | | | | 1.28 | | | | | | 0.47 | | | | | | 1.78 | | |
LTM Return on average equity (%) | | | | | 10.3 | | | | | | 11.5 | | | | | | 12.2 | | | | | | 5.3 | | | | | | 18.2 | | |
LTM Net interest margin (%) | | | | | 3.06 | | | | | | 3.08 | | | | | | 3.13 | | | | | | 2.48 | | | | | | 3.87 | | |
LTM Efficiency ratio (%) | | | | | 58.3 | | | | | | 53.2 | | | | | | 52.6 | | | | | | 29.4 | | | | | | 63.3 | | |
Price/Tangible book value (%) | | | | | 159 | | | | | | 170 | | | | | | 180 | | | | | | 102 | | | | | | 321 | | |
Price/LTM Earnings per share (x) | | | | | 9.6 | | | | | | 10.7 | | | | | | 12.3 | | | | | | 7.0 | | | | | | 24.1 | | |
Price/2022E Earnings per share (x) | | | | | 9.3 | | | | | | 9.9 | | | | | | 11.2 | | | | | | 7.9 | | | | | | 17.8 | | |
Price/2023E Earnings per share (x) | | | | | 8.5 | | | | | | 9.2 | | | | | | 10.3 | | | | | | 6.9 | | | | | | 17.0 | | |
Current Dividend Yield (%) | | | | | 2.5 | | | | | | 2.3 | | | | | | 2.3 | | | | | | 0.0 | | | | | | 5.5 | | |
Market value ($mm) | | | | | 597 | | | | | | 908 | | | | | | 984 | | | | | | 529 | | | | | | 1,784 | | |
Acquiror | | | Target | |
| | | ||
F.N.B. Corp. | | | UB Bancorp | |
Brookline Bancorp Inc. | | | PCSB Financial Corp. | |
Seacoast Bnkg Corp. of FL | | | Drummond Banking Co. | |
United Community Banks Inc. | | | Progress Financial Corp. | |
National Bank | | | Bancshares of Jackson Hole Inc | |
Nicolet Bankshares Inc. | | | Charter Bankshares Inc. | |
Seacoast Bnkg Corp. of FL | | | Apollo Bancshares/Apollo Bank | |
Farmers National Banc Corp. | | | Emclaire Financial Corp | |
Fulton Financial Corp. | | | Prudential Bancorp | |
Origin Bancorp Inc. | | | BT Holdings Inc. | |
QCR Holdings Inc. | | | Guaranty Federal Bcshs Inc. | |
OceanFirst Financial | | | Partners Bancorp | |
German American Bancorp Inc. | | | Citizens Union Bancorp | |
Stock Yards Bancorp Inc. | | | Commonwealth Bancshares Inc. | |
CVB Financial Corp. | | | Suncrest Bank | |
TriCo Bancshares | | | Valley Republic Bancorp | |
Lakeland Bancorp | | | 1st Constitution Bancorp | |
Mid Penn Bancorp Inc. | | | Riverview Financial Corp. | |
Valley National Bancorp | | | Westchester Bank Holding Corp. | |
Columbia Banking System Inc. | | | Bank of Commerce Holdings | |
Nicolet Bankshares Inc. | | | County Bancorp Inc. | |
Simmons First National Corp. | | | Landmark Community Bank | |
United Bankshares Inc. | | | Community Bankers Trust Corp | |
First Bancorp | | | Select Bancorp Inc. | |
Nicolet Bankshares Inc. | | | Mackinac Financial Corp | |
Peoples Bancorp Inc. | | | Premier Financial Bancorp Inc. | |
Banc of California Inc. | | | Pacific Mercantile Bancorp | |
Stock Yards Bancorp Inc. | | | Kentucky Bancshares Inc. | |
| | | First Bancshares/ BBI | | | Nationwide Precedent Transactions | | |||||||||||||||||||||
| | | Median | | | Mean | | | High | | | Low | | |||||||||||||||
Deal Value ($mm) | | | 121 | | | | | 64 | | | | | | 75 | | | | | | 135 | | | | | | 38 | | |
Deal Value / LTM EPS (x) | | | 48.7 | | | | | 17.2 | | | | | | 20.0 | | | | | | 59.0 | | | | | | 10.2 | | |
Deal Value / TBVPS (%) | | | 144 / 158(1) | | | | | 144 | | | | | | 140 | | | | | | 174 | | | | | | 88 | | |
Core Deposit Premium (%) | | | 9.3 | | | | | 5.2 | | | | | | 5.0 | | | | | | 8.9 | | | | | | (3.0) | | |
| | | FBMS/ HSBI | | | Nationwide Precedent Transactions | | ||||||||||||||||||||||||
| | | Median | | | Mean | | | Low | | | High | | ||||||||||||||||||
Deal Value ($M) | | | | | 204 | | | | | | 191 | | | | | | 208 | | | | | | 107 | | | | | | 320 | | |
Transaction Price / LTM EPS (x) | | | | | 14.7 | | | | | | 14.1 | | | | | | 15.6 | | | | | | 9.2 | | | | | | 29.2 | | |
Transaction Price / TBV Per Share (%) | | | | | 177 | | | | | | 157 | | | | | | 158 | | | | | | 107 | | | | | | 203 | | |
Core Deposit Premium (%) | | | | | 6.5 | | | | | | 6.8 | | | | | | 6.9 | | | | | | 1.7 | | | | | | 11.7 | | |
1-Day Market Premium (%) | | | | | 30.5 | | | | | | 20.1 | | | | | | 26.6 | | | | | | 9.5 | | | | | | 69.4 | | |
Discount Rate | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | | 16.0x | | ||||||||||||||||||
12% | | | | $ | 3.09 | | | | | $ | 3.37 | | | | | $ | 3.65 | | | | | $ | 3.93 | | | | | $ | 4.21 | | | | | $ | 4.49 | | |
13% | | | | | 2.96 | | | | | | 3.23 | | | | | | 3.50 | | | | | | 3.77 | | | | | | 4.03 | | | | | | 4.30 | | |
14% | | | | | 2.84 | | | | | | 3.10 | | | | | | 3.35 | | | | | | 3.61 | | | | | | 3.87 | | | | | | 4.13 | | |
15% | | | | | 2.72 | | | | | | 2.97 | | | | | | 3.22 | | | | | | 3.46 | | | | | | 3.71 | | | | | | 3.96 | | |
16% | | | | | 2.61 | | | | | | 2.85 | | | | | | 3.09 | | | | | | 3.33 | | | | | | 3.56 | | | | | | 3.80 | | |
Discount Rate | | | 9.00x | | | 9.75x | | | 10.50x | | | 11.25x | | | 12.00x | | | 12.75x | | ||||||||||||||||||
9.0% | | | | | 22.36 | | | | | | 24.22 | | | | | | 26.08 | | | | | | 27.95 | | | | | | 29.81 | | | | | | 31.67 | | |
10.0% | | | | | 21.46 | | | | | | 23.24 | | | | | | 25.03 | | | | | | 26.82 | | | | | | 28.61 | | | | | | 30.40 | | |
11.0% | | | | | 20.60 | | | | | | 22.32 | | | | | | 24.03 | | | | | | 25.75 | | | | | | 27.47 | | | | | | 29.18 | | |
12.0% | | | | | 19.79 | | | | | | 21.43 | | | | | | 23.08 | | | | | | 24.73 | | | | | | 26.38 | | | | | | 28.03 | | |
13.0% | | | | | 19.01 | | | | | | 20.59 | | | | | | 22.18 | | | | | | 23.76 | | | | | | 25.35 | | | | | | 26.93 | | |
Discount Rate | | | 75% | | | 80% | | | 85% | | | 90% | | | 95% | | | 100% | | ||||||||||||||||||
12% | | | | $ | 2.54 | | | | | $ | 2.71 | | | | | $ | 2.88 | | | | | $ | 3.05 | | | | | $ | 3.22 | | | | | $ | 3.39 | | |
13% | | | | | 2.44 | | | | | | 2.60 | | | | | | 2.76 | | | | | | 2.92 | | | | | | 3.08 | | | | | | 3.25 | | |
14% | | | | | 2.34 | | | | | | 2.49 | | | | | | 2.65 | | | | | | 2.80 | | | | | | 2.96 | | | | | | 3.11 | | |
15% | | | | | 2.24 | | | | | | 2.39 | | | | | | 2.54 | | | | | | 2.69 | | | | | | 2.84 | | | | | | 2.99 | | |
16% | | | | | 2.15 | | | | | | 2.29 | | | | | | 2.44 | | | | | | 2.58 | | | | | | 2.72 | | | | | | 2.87 | | |
Discount Rate | | | 100% | | | 110% | | | 120% | | | 130% | | | 140% | | | 150% | | ||||||||||||||||||
9.0% | | | | | 21.00 | | | | | | 23.10 | | | | | | 25.20 | | | | | | 27.30 | | | | | | 29.40 | | | | | | 31.51 | | |
10.0% | | | | | 20.16 | | | | | | 22.17 | | | | | | 24.19 | | | | | | 26.21 | | | | | | 28.22 | | | | | | 30.24 | | |
11.0% | | | | | 19.35 | | | | | | 21.29 | | | | | | 23.22 | | | | | | 25.16 | | | | | | 27.09 | | | | | | 29.03 | | |
12.0% | | | | | 18.59 | | | | | | 20.45 | | | | | | 22.31 | | | | | | 24.16 | | | | | | 26.02 | | | | | | 27.88 | | |
13.0% | | | | | 17.86 | | | | | | 19.64 | | | | | | 21.43 | | | | | | 23.22 | | | | | | 25.00 | | | | | | 26.79 | | |
Annual Estimate Variance | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | | 16.0x | | ||||||||||||||||||
(10%) | | | | $ | 2.54 | | | | | $ | 2.77 | | | | | $ | 3.00 | | | | | $ | 3.24 | | | | | $ | 3.47 | | | | | $ | 3.70 | | |
(5%) | | | | | 2.68 | | | | | | 2.93 | | | | | | 3.17 | | | | | �� | 3.42 | | | | | | 3.66 | | | | | | 3.90 | | |
0.0% | | | | | 2.82 | | | | | | 3.08 | | | | | | 3.34 | | | | | | 3.60 | | | | | | 3.85 | | | | | | 4.11 | | |
5% | | | | | 2.97 | | | | | | 3.24 | | | | | | 3.51 | | | | | | 3.77 | | | | | | 4.04 | | | | | | 4.31 | | |
10% | | | | | 3.11 | | | | | | 3.39 | | | | | | 3.67 | | | | | | 3.95 | | | | | | 4.24 | | | | | | 4.52 | | |
Annual Estimate Variance | | | 9.00x | | | 9.75x | | | 10.50x | | | 11.25x | | | 12.00x | | | 12.75x | | ||||||||||||||||||
(10.0%) | | | | | 18.27 | | | | | | 19.79 | | | | | | 21.32 | | | | | | 22.84 | | | | | | 24.36 | | | | | | 25.89 | | |
(5.0%) | | | | | 19.29 | | | | | | 20.89 | | | | | | 22.50 | | | | | | 24.11 | | | | | | 25.72 | | | | | | 27.32 | | |
0.0% | | | | | 20.30 | | | | | | 21.99 | | | | | | 23.69 | | | | | | 25.38 | | | | | | 27.07 | | | | | | 28.76 | | |
5.0% | | | | | 21.32 | | | | | | 23.09 | | | | | | 24.87 | | | | | | 26.65 | | | | | | 28.42 | | | | | | 30.20 | | |
10.0% | | | | | 22.33 | | | | | | 24.19 | | | | | | 26.05 | | | | | | 27.92 | | | | | | 29.78 | | | | | | 31.64 | | |
Discount Rate | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | ||||||||||||||||||
10% | | | | $ | 28.02 | | | | | $ | 30.54 | | | | | $ | 33.05 | | | | | $ | 35.57 | | | | | $ | 38.09 | | | | | $ | 40.61 | | |
11% | | | | | 26.89 | | | | | | 29.30 | | | | | | 31.71 | | | | | | 34.13 | | | | | | 36.54 | | | | | | 38.95 | | |
12% | | | | | 25.82 | | | | | | 28.13 | | | | | | 30.44 | | | | | | 32.75 | | | | | | 35.06 | | | | | | 37.37 | | |
13% | | | | | 24.79 | | | | | | 27.01 | | | | | | 29.23 | | | | | | 31.44 | | | | | | 33.66 | | | | | | 35.88 | | |
14% | | | | | 23.82 | | | | | | 25.95 | | | | | | 28.07 | | | | | | 30.20 | | | | | | 32.33 | | | | | | 34.45 | | |
Discount Rate | | | 8.0x | | | 9.5x | | | 11.0x | | | 12.5x | | | 14.0x | | | 15.5x | | ||||||||||||||||||
9.0% | | | | | 23.76 | | | | | | 27.70 | | | | | | 31.63 | | | | | | 35.57 | | | | | | 39.51 | | | | | | 43.44 | | |
10.0% | | | | | 22.85 | | | | | | 26.63 | | | | | | 30.41 | | | | | | 34.18 | | | | | | 37.96 | | | | | | 41.74 | | |
11.0% | | | | | 21.98 | | | | | | 25.61 | | | | | | 29.24 | | | | | | 32.86 | | | | | | 36.49 | | | | | | 40.12 | | |
12.0% | | | | | 21.16 | | | | | | 24.64 | | | | | | 28.12 | | | | | | 31.61 | | | | | | 35.09 | | | | | | 38.57 | | |
13.0% | | | | | 20.37 | | | | | | 23.72 | | | | | | 27.06 | | | | | | 30.41 | | | | | | 33.76 | | | | | | 37.10 | | |
Discount Rate | | | 115% | | | 130% | | | 145% | | | 160% | | | 175% | | | 190% | | ||||||||||||||||||
10% | | | | $ | 27.68 | | | | | $ | 30.92 | | | | | $ | 34.16 | | | | | $ | 37.40 | | | | | $ | 40.64 | | | | | $ | 43.88 | | |
11% | | | | | 26.56 | | | | | | 29.67 | | | | | | 32.77 | | | | | | 35.87 | | | | | | 38.98 | | | | | | 42.08 | | |
12% | | | | | 25.50 | | | | | | 28.48 | | | | | | 31.45 | | | | | | 34.42 | | | | | | 37.40 | | | | | | 40.37 | | |
13% | | | | | 24.49 | | | | | | 27.35 | | | | | | 30.20 | | | | | | 33.05 | | | | | | 35.90 | | | | | | 38.75 | | |
14% | | | | | 23.54 | | | | | | 26.27 | | | | | | 29.01 | | | | | | 31.74 | | | | | | 34.47 | | | | | | 37.21 | | |
Discount Rate | | | 120% | | | 140% | | | 160% | | | 180% | | | 200% | | | 220% | | ||||||||||||||||||
9.0% | | | | | 28.45 | | | | | | 32.73 | | | | | | 37.01 | | | | | | 41.29 | | | | | | 45.57 | | | | | | 49.85 | | |
10.0% | | | | | 27.35 | | | | | | 31.46 | | | | | | 35.56 | | | | | | 39.67 | | | | | | 43.78 | | | | | | 47.89 | | |
11.0% | | | | | 26.30 | | | | | | 30.25 | | | | | | 34.19 | | | | | | 38.13 | | | | | | 42.08 | | | | | | 46.02 | | |
12.0% | | | | | 25.31 | | | | | | 29.09 | | | | | | 32.88 | | | | | | 36.67 | | | | | | 40.46 | | | | | | 44.24 | | |
13.0% | | | | | 24.36 | | | | | | 28.00 | | | | | | 31.63 | | | | | | 35.27 | | | | | | 38.91 | | | | | | 42.55 | | |
Annual Estimate Variance | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | ||||||||||||||||||
(10%) | | | | $ | 23.73 | | | | | $ | 25.83 | | | | | $ | 27.93 | | | | | $ | 30.04 | | | | | $ | 32.14 | | | | | $ | 34.24 | | |
(5%) | | | | | 24.90 | | | | | | 27.12 | | | | | | 29.34 | | | | | | 31.55 | | | | | | 33.77 | | | | | | 35.99 | | |
0.0% | | | | | 26.07 | | | | | | 28.40 | | | | | | 30.74 | | | | | | 33.07 | | | | | | 35.41 | | | | | | 37.74 | | |
5% | | | | | 27.23 | | | | | | 29.69 | | | | | | 32.14 | | | | | | 34.59 | | | | | | 37.04 | | | | | | 39.49 | | |
10% | | | | | 28.40 | | | | | | 30.97 | | | | | | 33.54 | | | | | | 36.11 | | | | | | 38.68 | | | | | | 41.24 | | |
Annual Estimate Variance | | | 8.0x | | | 9.5x | | | 11.0x | | | 12.5x | | | 14.0x | | | 15.5x | | ||||||||||||||||||
(10.0%) | | | | | 20.59 | | | | | | 23.95 | | | | | | 27.30 | | | | | | 30.66 | | | | | | 34.02 | | | | | | 37.37 | | |
(5.0%) | | | | | 21.58 | | | | | | 25.13 | | | | | | 28.67 | | | | | | 32.21 | | | | | | 35.76 | | | | | | 39.30 | | |
0.0% | | | | | 22.58 | | | | | | 26.31 | | | | | | 30.04 | | | | | | 33.77 | | | | | | 37.50 | | | | | | 41.23 | | |
5.0% | | | | | 23.57 | | | | | | 27.49 | | | | | | 31.41 | | | | | | 35.32 | | | | | | 39.24 | | | | | | 43.15 | | |
10.0% | | | | | 24.57 | | | | | | 28.67 | | | | | | 32.77 | | | | | | 36.88 | | | | | | 40.98 | | | | | | 45.08 | | |
| Atlantic Union Bancshares Corporation | | | First Bancorp | |
| Trustmark Corporation | | | Amerant Bancorp Inc. | |
| WesBanco, Inc. | | | Origin Bancorp, Inc. | |
| Renasant Corporation | | | Stock Yards Bancorp, Inc. | |
| TowneBank | | | City Holding Company | |
| ServisFirst Bancshares, Inc. | | | Republic Bancorp, Inc. | |
| FB Financial Corporation | | | Community Trust Bancorp, Inc. | |
| Seacoast Banking Corporation of Florida | | | Business First Bancshares, Inc. | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | First Bancshares | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
LTM Core Return on Average Assets(1) | | | | | 1.14% | | | | | | 1.13% | | | | | | 1.28% | | | | | | 1.25% | | | | | | 1.38% | | |
LTM Core Return on Average Tangible Common Equity(1) | | | | | 13.6% | | | | | | 12.6% | | | | | | 14.6% | | | | | | 14.1% | | | | | | 16.3% | | |
LTM Core Return on PTPP ROAA(2) | | | | | 1.46% | | | | | | 1.43% | | | | | | 1.62% | | | | | | 1.58% | | | | | | 1.85% | | |
LTM Net Interest Margin | | | | | 3.07% | | | | | | 2.92% | | | | | | 3.13% | | | | | | 3.12% | | | | | | 3.20% | | |
LTM Fee Income / Revenue Ratio | | | | | 18.0% | | | | | | 19.6% | | | | | | 24.4% | | | | | | 24.7% | | | | | | 30.3% | | |
LTM Efficiency Ratio | | | | | 56.4% | | | | | | 63.6% | | | | | | 58.0% | | | | | | 58.3% | | | | | | 53.2% | | |
| | | March 31, 2022 First Bancshares | | | March 31, 2022 PF First Bancshares(1) | | | June 30, 2022 PF First Bancshares(1) | | | Selected Companies | | ||||||||||||||||||||||||||||||
| | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | ||||||||||||||||||||||||||||||
Tangible Common Equity / Tangible Assets | | | | | 6.74% | | | | | | 7.24% | | | | | | 6.96% | | | | | | 7.27% | | | | | | 7.81% | | | | | | 8.36% | | | | | | 8.60% | | |
CET1 Ratio | | | | | 13.00% | | | | | | 13.63% | | | | | | 13.97% | | | | | | 10.72% | | | | | | 11.23% | | | | | | 11.99% | | | | | | 12.51% | | |
Total Capital Ratio | | | | | 17.80% | | | | | | 17.99% | | | | | | 18.33% | | | | | | 13.37% | | | | | | 14.64% | | | | | | 14.67% | | | | | | 16.29% | | |
Loans / Deposits | | | | | 54.6% | | | | | | 57.8% | | | | | | 62.3% | | | | | | 71.0% | | | | | | 75.2% | | | | | | 77.4% | | | | | | 82.5% | | |
Loan Loss Reserve / Loans | | | | | 1.06% | | | | | | 1.10% | | | | | | 0.98% | | | | | | 0.92% | | | | | | 1.20% | | | | | | 1.14% | | | | | | 1.38% | | |
Nonperforming Assets / Loans + OREO(2) | | | | | 1.09% | | | | | | — | | | | | | — | | | | | | 0.66% | | | | | | 0.53% | | | | | | 0.61% | | | | | | 0.37% | | |
LTM Net Charge-offs / Average Loans | | | | | (0.01)% | | | | | | — | | | | | | — | | | | | | 0.09% | | | | | | 0.05% | | | | | | 0.10% | | | | | | 0.02% | | |
| | | March 31, 2022 First Bancshares | | | March 31, 2022 PF First Bancshares(1) | | | June 30, 2022 PF First Bancshares(1) | | | Selected Companies | | ||||||||||||||||||||||||||||||
| | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | ||||||||||||||||||||||||||||||
One-Year Stock Price Change | | | | | (21.3)% | | | | | | — | | | | | | — | | | | | | (3.7)% | | | | | | 2.2% | | | | | | 5.4% | | | | | | 12.4% | | |
Year-To-Date Stock Price Change | | | | | (23.1)% | | | | | | — | | | | | | — | | | | | | (11.3)% | | | | | | (5.6)% | | | | | | (8.2)% | | | | | | (3.1)% | | |
Price / Tangible Book Value per Share | | | | | 150% | | | | | | 150% | | | | | | 160% | | | | | | 149% | | | | | | 158% | | | | | | 191% | | | | | | 198% | | |
Price / LTM EPS | | | | | 9.7x | | | | | | 9.7x | | | | | | 9.7x | | | | | | 10.2x | | | | | | 11.5x | | | | | | 13.4x | | | | | | 14.5x | | |
Price / 2022 EPS Estimate | | | | | 9.4x | | | | | | 9.4x | | | | | | 9.4x | | | | | | 11.2x | | | | | | 12.0x | | | | | | 13.1x | | | | | | 14.3x | | |
Price / 2023 EPS Estimate | | | | | 8.6x | | | | | | 8.6x | | | | | | 8.6x | | | | | | 9.7x | | | | | | 11.0x | | | | | | 11.4x | | | | | | 13.0x | | |
Dividend Yield(2) | | | | | 2.4% | | | | | | — | | | | | | — | | | | | | 1.6% | | | | | | 2.6% | | | | | | 2.5% | | | | | | 3.0% | | |
MRQ Dividend Payout Ratio(2) | | | | | 22.2% | | | | | | — | | | | | | — | | | | | | 29.1% | | | | | | 36.0% | | | | | | 38.7% | | | | | | 42.0% | | |
| First Guaranty Bancshares, Inc. | | | Southern States Bancshares, Inc. | |
| Professional Holding Corp. | | | MainStreet Bancshares, Inc. | |
| Colony Bankcorp, Inc. | | | National Bankshares, Inc. | |
| Blue Ridge Bankshares, Inc. | | | First Community Corporation | |
| Investar Holding Corporation | | | Peoples Bancorp of North Carolina, Inc. | |
| C&F Financial Corporation | | | Limestone Bancorp, Inc. | |
| John Marshall Bancorp, Inc. | | | First National Corporation | |
| FVCBankcorp, Inc. | | | Old Point Financial Corporation | |
| USCB Financial Holding, Inc. | | | Citizens Holding Company | |
| Virginia National Bankshares Corporation | | | Auburn National Bancorporation, Inc. | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | HSBI | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
LTM Core Return on Average Assets(1) | | | | | 1.14% | | | | | | 0.81% | | | | | | 1.05% | | | | | | 0.99% | | | | | | 1.21% | | |
LTM Core Return on Average Tangible Common Equity(1) | | | | | 16.4% | | | | | | 10.1% | | | | | | 12.7% | | | | | | 12.1% | | | | | | 13.4% | | |
LTM Core Return on PTPP ROAA(2) | | | | | 1.46% | | | | | | 1.16% | | | | | | 1.36% | | | | | | 1.36% | | | | | | 1.63% | | |
LTM Net Interest Margin | | | | | 3.34% | | | | | | 2.90% | | | | | | 3.18% | | | | | | 3.21% | | | | | | 3.53% | | |
LTM Fee Income / Revenue Ratio | | | | | 26.8% | | | | | | 9.2% | | | | | | 15.9% | | | | | | 18.3% | | | | | | 24.0% | | |
LTM Efficiency Ratio | | | | | 65.3% | | | | | | 68.2% | | | | | | 62.0% | | | | | | 63.4% | | | | | | 58.9% | | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | HSBI | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
Tangible Common Equity / Tangible Assets | | | | | 6.95% | | | | | | 6.75% | | | | | | 7.41% | | | | | | 7.30% | | | | | | 8.29% | | |
CET1 Ratio | | | | | — | | | | | | 10.99% | | | | | | 11.95% | | | | | | 12.60% | | | | | | 13.79% | | |
Total Capital Ratio | | | | | — | | | | | | 13.39% | | | | | | 14.49% | | | | | | 14.97% | | | | | | 15.66% | | |
Loans / Deposits | | | | | 73.7% | | | | | | 62.4% | | | | | | 73.0% | | | | | | 72.3% | | | | | | 85.2% | | |
Loan Loss Reserve / Loans | | | | | 1.42% | | | | | | 0.89% | | | | | | 1.05% | | | | | | 1.06% | | | | | | 1.17% | | |
Nonperforming Assets / Loans + OREO(1) | | | | | 0.33% | | | | | | 0.59% | | | | | | 0.32% | | | | | | 0.41% | | | | | | 0.20% | | |
LTM Net Charge-offs / Average Loans | | | | | (0.01)% | | | | | | 0.11% | | | | | | 0.03% | | | | | | 0.10% | | | | | | 0.00% | | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | HSBI | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
One-Year Stock Price Change | | | | | (13.7)% | | | | | | (11.6)% | | | | | | (2.5)% | | | | | | 1.8% | | | | | | 10.2% | | |
Year-To-Date Stock Price Change | | | | | (17.2)% | | | | | | (15.7)% | | | | | | (7.6)% | | | | | | (1.8)% | | | | | | 7.9% | | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | HSBI | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
Price / Tangible Book Value per Share | | | | | 135% | | | | | | 121% | | | | | | 132% | | | | | | 163% | | | | | | 143% | | |
Price / LTM EPS | | | | | 11.7x | | | | | | 9.4x | | | | | | 11.0x | | | | | | 11.2x | | | | | | 12.3x | | |
Price / 2022 EPS Estimate | | | | | — | | | | | | 9.0x | | | | | | 9.7x | | | | | | 9.9x | | | | | | 10.4x | | |
Price / 2023 EPS Estimate | | | | | — | | | | | | 8.5x | | | | | | 8.7x | | | | | | 9.0x | | | | | | 9.1x | | |
Dividend Yield(1) | | | | | — | | | | | | 2.0% | | | | | | 2.9% | | | | | | 2.9% | | | | | | 3.6% | | |
MRQ Dividend Payout Ratio(1) | | | | | — | | | | | | 14.7% | | | | | | 28.1% | | | | | | 29.0% | | | | | | 37.5% | | |
Acquiror | | | Acquired Company | | | Date Announced | |
First Bancorp | | | GrandSouth Bancorporation | | | 6/21/22 | |
F.N.B. Corporation | | | UB Bancorp | | | 6/1/22 | |
DFCU Financial | | | First Citrus Bancorporation, Inc. | | | 5/12/22 | |
United Community Banks, Inc. | | | Progress Financial Corporation | | | 5/4/22 | |
Seacoast Banking Corporation of Florida | | | Drummond Banking Company | | | 5/4/22 | |
The First Bancshares, Inc. | | | Beach Bancorp, Inc. | | | 4/26/22 | |
Seacoast Banking Corporation of Florida | | | Apollo Bancshares, Inc. | | | 3/29/22 | |
BancPlus Corporation | | | First Trust Corporation | | | 9/29/21 | |
German American Bancorp, Inc. | | | Citizens Union Bancorp of Shelbyville, Inc. | | | 9/20/21 | |
Stock Yards Bancorp, Inc. | | | Commonwealth Bancshares, Inc. | | | 8/3/21 | |
Simmons First National Corporation | | | Landmark Community Bank | | | 6/7/21 | |
Simmons First National Corporation | | | Triumph Bancshares, Inc. | | | 6/7/21 | |
First Foundation Inc. | | | TGR Financial, Inc. | | | 6/3/21 | |
United Bankshares, Inc. | | | Community Bankers Trust Corporation | | | 6/3/21 | |
First Bancorp | | | Select Bancorp, Inc. | | | 6/1/21 | |
United Community Banks, Inc. | | | Aquesta Financial Holdings, Inc. | | | 5/27/21 | |
Peoples Bancorp Inc. | | | Premier Financial Bancorp, Inc. | | | 3/29/21 | |
Seacoast Banking Corporation of Florida | | | Legacy Bank of Florida | | | 3/23/21 | |
Stock Yards Bancorp, Inc. | | | Kentucky Bancshares, Inc. | | | 1/27/21 | |
BancorpSouth Bank | | | FNS Bancshares, Inc. | | | 1/13/21 | |
| | | First Bancshares / HSBI | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | |
Price / Tangible Book Value per Share | | | 181% | | | 154% | | | 167% | | | 172% | | | 185% | |
Pay-to-Trade | | | 1.13x | | | 0.79x | | | 0.87x | | | 0.88x | | | 0.93x | |
Price / LTM Core Net Income(1) | | | 10.8x | | | 13.1x | | | 14.8x | | | 14.8x | | | 17.5x | |
Price / 1-Year Fwd. Net Income | | | 10.4x | | | 13.9x | | | 17.0x | | | 15.2x | | | 17.4x | |
Core Deposit Premium | | | 6.9% | | | 7.0% | | | 8.5% | | | 8.7% | | | 9.9% | |
One-Day Market Premium | | | 32.0% | | | 11.2% | | | 31.8% | | | 34.7% | | | 57.9% | |
| | | First Bancshares % of Total | | | HSBI % of Total | | ||||||
Ownership at 0.965x merger exchange ratio: | | | | | 78% | | | | | | 22% | | |
Balance Sheet: | | | | | | | | | | | | | |
Assets | | | | | 79% | | | | | | 21% | | |
Gross Loans Held for Investment | | | | | 76% | | | | | | 24% | | |
Deposits | | | | | 80% | | | | | | 20% | | |
Tangible Common Equity | | | | | 80% | | | | | | 20% | | |
Income Statement: | | | | | | | | | | | | | |
LTM Core Net Income(1) | | | | | 77% | | | | | | 23% | | |
LTM Core PTPP Net Income(2) | | | | | 74% | | | | | | 26% | | |
2022 Estimated Earnings | | | | | 81% | | | | | | 19% | | |
2023 Estimated Earnings | | | | | 80% | | | | | | 20% | | |
Market Information: | | | | | | | | | | | | | |
Pre-Deal Market Capitalization | | | | | 82% | | | | | | 18% | | |
| | | For the Years Ending December 31, | | |||||||||||||||||||||||||||||||||
| | | 2022 | | | 2023 | | | 2024 | | | 2025 | | | 2026 | | | 2027 | | ||||||||||||||||||
Assets (in thousands) | | | | $ | 1,738 | | | | | $ | 1,821 | | | | | $ | 1,919 | | | | | $ | 2,022 | | | | | $ | 2,130 | | | | | $ | 2,244 | | |
Net Income (in thousands) | | | | $ | 16.7 | | | | | $ | 20.5 | | | | | $ | 21.9 | | | | | $ | 23.1 | | | | | $ | 24.4 | | | | | $ | 25.7 | | |
Merger Ratios | | |||
| | | Aggregate | |
Aggregate Deal Value / LTM Net Income | | | 14.6x | |
Aggregate Deal Value / LTM Core Net Income(1) | | | 10.8x | |
Aggregate Deal Value / 2022E Core Net Income(1)(2) | | | 10.9x | |
Aggregate Deal Value / 2023E Net Income(2) | | | 9.8x | |
Aggregate Deal Value / 2023E Net Income + Cost Savings(2) | | | 6.2x | |
Aggregate Deal Value / Tangible Book Value | | | 174% | |
Tangible Book Premium / Core Deposits(3) | | | 6.0% | |
Aggregate Deal Value / HSBI’s Closing Stock Price as of 7/26/2022 | | | 27.7% | |
One Year Stock Performance | | ||||||||||||
| | | Beginning Index Value on 7/26/2021 | | | Ending Index Value on 7/26/2022 | | ||||||
S&P Bank Index | | | | | 100.0% | | | | | | 83.5% | | |
NASDAQ Bank Index | | | | | 100.0% | | | | | | 95.2% | | |
First Bancshares | | | | | 100.0% | | | | | | 78.7% | | |
HSBI | | | | | 100.0% | | | | | | 86.3% | | |
Five Year Stock Performance | | ||||||||||||
| | | Beginning Index Value on 7/26/2017 | | | Ending Index Value on 7/26/2022 | | ||||||
S&P Bank Index | | | | | 100.0% | | | | | | 108.6% | | |
NASDAQ Bank Index | | | | | 100.0% | | | | | | 110.8% | | |
First Bancshares | | | | | 100.0% | | | | | | 108.5% | | |
HSBI | | | | | 100.0% | | | | | | 111.3% | | |
Contribution Analysis | | ||||||||||||||||||||||||||||||
| | | First Bancshares Stand-alone | | | First Bancshares % of Total | | | HSBI Stand-alone | | | HSBI % of Total | | | Implied Exchange Ratio | | |||||||||||||||
Balance Sheet (Estimated 12/31/2022) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | | | $ | 6,853,133 | | | | | | 80% | | | | | $ | 1,738,456 | | | | | | 20% | | | | | | 0.8452 | | |
Gross Loans (Incl. HFS) | | | | $ | 3,723,987 | | | | | | 76% | | | | | $ | 1,149,945 | | | | | | 24% | | | | | | 1.0288 | | |
Total Deposits | | | | $ | 5,943,797 | | | | | | 80% | | | | | $ | 1,503,036 | | | | | | 20% | | | | | | 0.8425 | | |
Core Deposits | | | | $ | 5,432,631 | | | | | | 79% | | | | | $ | 1,452,384 | | | | | | 21% | | | | | | 0.8907 | | |
Tangible Common Equity | | | | $ | 475,492 | | | | | | 79% | | | | | $ | 124,937 | | | | | | 21% | | | | | | 0.8754 | | |
Income Statement | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Standalone Core Net Income (2021A)(1) | | | | $ | 63,177 | | | | | | 78% | | | | | $ | 18,077 | | | | | | 22% | | | | | | 0.9533 | | |
Standalone Core Net Income (YTD 1H 2022A)(1) | | | | $ | 31,614 | | | | | | 78% | | | | | $ | 8,821 | | | | | | 22% | | | | | | 0.9296 | | |
Standalone Core Net Income (2022E)(1) | | | | $ | 66,753 | | | | | | 78% | | | | | $ | 18,387 | | | | | | 22% | | | | | | 0.9178 | | |
Standalone Net Income (2023E) | | | | $ | 77,610 | | | | | | 79% | | | | | $ | 20,533 | | | | | | 21% | | | | | | 0.8815 | | |
Net Income 2023E with Synergies(2) | | | | $ | 77,610 | | | | | | 71% | | | | | $ | 31,039 | | | | | | 29% | | | | | | 1.3325 | | |
Pro Forma Ownership | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Implied Shares Outstanding | | | | | 24,038,746 | | | | | | 78% | | | | | | 6,962,435 | | | | | | 22% | | | | | | 0.9650 | | |
| Amerant Bancorp Inc. | | | Origin Bancorp, Inc. | |
| American National Bankshares Inc. | | | Primis Financial Corp. | |
| Business First Bancshares, Inc. | | | Red River Bancshares, Inc. | |
| Capital City Bank Group, Inc. | | | SmartFinancial, Inc. | |
| City Holding Company | | | Southern First Bancshares, Inc. | |
| First Community Bankshares, Inc. | | | Summit Financial Group, Inc. | |
| Home Bancorp, Inc. | | | | |
Financial Condition and Performance | | ||||||||||||||||||||||||||||||
| | | First Bancshares | | | Comparable Companies | | ||||||||||||||||||||||||
| | | Median | | | Average | | | Minimum | | | Maximum | | ||||||||||||||||||
Total Assets (in millions) | | | | $ | 6,037 | | | | | $ | 3,644 | | | | | $ | 4,633 | | | | | $ | 3,212 | | | | | $ | 8,151 | | |
Loan / Deposit Ratio | | | | | 61% | | | | | | 77% | | | | | | 78% | | | | | | 53% | | ��� | | | | 99% | | |
Non-Performing Assets / Total Assets | | | | | 0.43% | | | | | | 0.36% | | | | | | 0.40% | | | | | | 0.07% | | | | | | 1.03% | | |
Tangible Common Equity Ratio | | | | | 6.4% | | | | | | 7.8% | | | | | | 7.8% | | | | | | 6.5% | | | | | | 9.6% | | |
Net Interest Margin (LTM) | | | | | 3.10% | | | | | | 3.03% | | | | | | 3.15% | | | | | | 2.50% | | | | | | 3.70% | | |
Efficiency Ratio (LTM) | | | | | 56% | | | | | | 58% | | | | | | 61% | | | | | | 49% | | | | | | 76% | | |
Core Return on Average Assets (LTM)(1) | | | | | 1.05% | | | | | | 1.28% | | | | | | 1.20% | | | | | | 0.82% | | | | | | 1.59% | | |
Core Return on Average Tangible Common Equity (LTM)(1) | | | | | 14.3% | | | | | | 14.7% | | | | | | 14.1% | | | | | | 9.1% | | | | | | 19.7% | | |
Market Performance Multiples | | ||||||||||||||||||||||||||||||
| | | First Bancshares | | | Comparable Companies | | ||||||||||||||||||||||||
| | | Median | | | Average | | | Minimum | | | Maximum | | ||||||||||||||||||
Market Capitalization (in millions) | | | | $ | 609 | | | | | $ | 423 | | | | | $ | 556 | | | | | $ | 313 | | | | | $ | 1,254 | | |
Price Change (LTM) | | | | | (21.3)% | | | | | | 5.1% | | | | | | 7.3% | | | | | | (13.7)% | | | | | | 34.1% | | |
Price Change (YTD) | | | | | (23.1)% | | | | | | (7.3)% | | | | | | (7.1)% | | | | | | (29.4)% | | | | | | 21.4% | | |
Price / LTM Core Earnings Per Share(1) | | | | | 9.9x | | | | | | 11.3x | | | | | | 10.9x | | | | | | 7.7x | | | | | | 14.0x | | |
Price / 2023E Earnings Per Share(2) | | | | | 9.2x | | | | | | 10.1x | | | | | | 9.8x | | | | | | 7.2x | | | | | | 13.0x | | |
Price / Tangible Book Value | | | | | 162% | | | | | | 146% | | | | | | 153% | | | | | | 109% | | | | | | 246% | | |
Dividend Yield (LTM) | | | | | 2.43% | | | | | | 2.30% | | | | | | 2.18% | | | | | | 0.52% | | | | | | 3.48% | | |
One Year Daily Avg. Vol. | | | | | 71,089 | | | | | | 27,541 | | | | | | 36,437 | | | | | | 7,030 | | | | | | 104,125 | | |
| Auburn National Bancorporation, Inc. | | | National Bankshares, Inc. | |
| C&F Financial Corporation | | | Old Point Financial Corporation | |
| Colony Bankcorp, Inc. | | | Peoples Bancorp of North Carolina, Inc. | |
| First Community Corporation | | | Professional Holding Corp. | |
| First National Corporation | | | Southern States Bancshares, Inc. | |
| FVCBankorp, Inc. | | | USCB Financial Holdings, Inc. | |
| John Marshall Bancorp, Inc. | | | Virginia National Bankshares Corporation | |
Financial Condition and Performance | | ||||||||||||||||||||||||||||||
| | | | | | | | | Comparable Companies | | |||||||||||||||||||||
| | | HSBI | | | Median | | | Average | | | Minimum | | | Maximum | | |||||||||||||||
Total Assets (in millions) | | | | $ | 1,713 | | | | | $ | 1,919 | | | | | $ | 1,948 | | | | | $ | 1,084 | | | | | $ | 2,867 | | |
Loan / Deposit Ratio | | | | | 74% | | | | | | 68% | | | | | | 67% | | | | | | 42% | | | | | | 85% | | |
Non-Performing Assets / Total Assets | | | | | 0.17% | | | | | | 0.20% | | | | | | 0.21% | | | | | | 0.02% | | | | | | 0.41% | | |
Tangible Common Equity Ratio | | | | | 6.8% | | | | | | 7.3% | | | | | | 7.5% | | | | | | 6.1% | | | | | | 9.8% | | |
Net Interest Margin (LTM) | | | | | 3.31% | | | | | | 3.13% | | | | | | 3.14% | | | | | | 2.49% | | | | | | 4.16% | | |
Efficiency Ratio (LTM) | | | | | 65% | | | | | | 63% | | | | | | 64% | | | | | | 48% | | | | | | 82% | | |
Core Return on Average Assets (LTM)(1) | | | | | 1.10% | | | | | | 1.02% | | | | | | 1.02% | | | | | | 0.57% | | | | | | 1.33% | | |
Core Return on Average Tangible Common Equity (LTM)(1) | | | | | 15.9% | | | | | | 12.4% | | | | | | 11.8% | | | | | | 6.3% | | | | | | 16.2% | | |
Market Performance Multiples | | ||||||||||||||||||||||||||||||
| | | | | | | | | Comparable Companies | | |||||||||||||||||||||
| | | HSBI | | | Median | | | Average | | | Minimum | | | Maximum | | |||||||||||||||
Market Capitalization (in millions) | | | | $ | 152 | | | | | $ | 180 | | | | | $ | 197 | | | | | $ | 95 | | | | | $ | 367 | | |
Price Change (LTM) | | | | | (13.7)% | | | | | | (6.4)% | | | | | | (0.8)% | | | | | | (22.9)% | | | | | | 45.4% | | |
Price Change (YTD) | | | | | (17.2)% | | | | | | (11.5)% | | | | | | (4.1)% | | | | | | (17.9)% | | | | | | 31.9% | | |
Price / LTM Core Earnings Per Share(1) | | | | | 8.4x | | | | | | 10.9x | | | | | | 11.0x | | | | | | 5.6x | | | | | | 16.8x | | |
Price / 2023E Earnings Per Share(2) | | | | | 7.7x | | | | | | 9.0x | | | | | | 9.3x | | | | | | 7.4x | | | | | | 11.1x | | |
Price / Tangible Book Value | | | | | 133% | | | | | | 124% | | | | | | 127% | | | | | | 93% | | | | | | 179% | | |
Dividend Yield (LTM) | | | | | — | | | | | | 3.01% | | | | | | 3.10% | | | | | | 1.57% | | | | | | 4.58% | | |
One Year Daily Avg. Vol. | | | | | 3,672 | | | | | | 8,489 | | | | | | 18,346 | | | | | | 3,042 | | | | | | 53,889 | | |
Announcement Date | | | Acquirer | | | Target | |
7/25/2022* | | | HomeTrust Bancshares, Inc. | | | Quantum Capital Corp. | |
7/23/2021 | | | South State Corporation | | | Atlantic Capital Bancshares, Inc. | |
4/22/2021 | | | Colony Bankcorp, Inc. | | | SouthCrest Financial Group, Inc. | |
12/18/2019 | | | First Bancshares, Inc. | | | Southwest Georgia Financial Corporation | |
12/17/2018 | | | Ameris Bancorp | | | Fidelity Southern Corporation | |
5/13/2018 | | | Cadence Bancorporation | | | State Bank Financial Corporation | |
4/24/2018 | | | CenterState Bank Corporation | | | Charter Financial Corporation | |
4/24/2018 | | | National Commerce Corporation | | | Landmark Bancshares, Inc. | |
3/28/2018 | | | Renasant Corporation | | | Brand Group Holdings, Inc. | |
1/26/2018 | | | Ameris Bancorp | | | Hamilton State Bancshares, Inc. | |
Announcement Date | | | Acquirer | | | Target | |
6/21/2022* | | | First Bancorp | | | GrandSouth Bancorporation | |
6/01/2022* | | | F.N.B. Corporation | | | UB Bancorp | |
5/04/2022* | | | Seacoast Banking Corporation of Florida | | | Drummond Banking Company | |
5/04/2022* | | | United Community Banks, Inc. | | | Progress Financial Corporation | |
3/29/2022* | | | Seacoast Banking Corporation of Florida | | | Apollo Bancshares, Inc./Apollo Bank | |
6/07/2021 | | | Simmons First National Corporation | | | Landmark Community Bank | |
6/03/2021 | | | First Foundation Inc. | | | TGR Financial, Inc. | |
6/03/2021 | | | United Bankshares, Inc. | | | Community Bankers Trust Corporation | |
6/01/2021 | | | First Bancorp | | | Select Bancorp, Inc. | |
3/29/2021 | | | Peoples Bancorp Inc. | | | Premier Financial Bancorp, Inc. | |
3/09/2020 | | | United Community Banks, Inc. | | | Three Shores Bancorporation, Inc. | |
Announcement Date | | | Acquirer | | | Target | |
6/21/2022* | | | First Bancorp | | | GrandSouth Bancorporation | |
6/01/2022* | | | F.N.B. Corporation | | | UB Bancorp | |
5/04/2022* | | | Seacoast Banking Corporation of Florida | | | Drummond Banking Company | |
5/04/2022* | | | United Community Banks, Inc. | | | Progress Financial Corporation | |
4/01/2022* | | | National Bank Holdings Corporation | | | Bancshares of Jackson Hole, Incorporated | |
3/30/2022* | | | Nicolet Bankshares, Inc. | | | Charter Bankshares, Inc. | |
3/29/2022* | | | Seacoast Banking Corporation of Florida | | | Apollo Bancshares, Inc./Apollo Bank | |
3/24/2022* | | | Farmers National Banc Corp. | | | Emclaire Financial Corp | |
9/20/2021 | | | German American Bancorp, Inc. | | | Citizens Union Bancorp of Shelbyville, Inc. | |
8/03/2021 | | | Stock Yards Bancorp, Inc. | | | Commonwealth Bancshares, Inc. | |
7/27/2021 | | | CVB Financial Corp. | | | Suncrest Bank | |
7/27/2021 | | | TriCo Bancshares | | | Valley Republic Bancorp | |
7/12/2021 | | | Lakeland Bancorp, Inc. | | | 1st Constitution Bancorp | |
6/23/2021 | | | Columbia Banking System, Inc. | | | Bank of Commerce Holdings | |
4/12/2021 | | | Nicolet Bankshares, Inc. | | | Mackinac Financial Corporation | |
1/27/2021 | | | Stock Yards Bancorp, Inc. | | | Kentucky Bancshares, Inc. | |
| | | Financial Condition and Performance | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | Georgia | | | Southeastern U.S. | | | United States | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | HSBI | | | Median | | | Average | | | Minimum | | | Maximum | | | Median | | | Average | | | Minimum | | | Maximum | | | Median | | | Average | | | Minimum | | | Maximum | | |||||||||||||||||||||||||||||||||||||||
Total Assets (in millions) | | | | $ | 1,713 | | | | | $ | 1,715 | | | | | $ | 2,183 | | | | | $ | 548 | | | | | $ | 4,892 | | | | | $ | 1,699 | | | | | $ | 1,544 | | | | | $ | 1,007 | | | | | $ | 2,274 | | | | | $ | 1,254 | | | | | $ | 1,348 | | | | | $ | 1,025 | | | | | $ | 1,860 | | |
Return on Average Assets (Last Twelve Months) | | | | | 1.10% | | | | | | 1.03% | | | | | | 1.15% | | | | | | 0.51% | | | | | | 2.49% | | | | | | 1.14% | | | | | | 1.09% | | | | | | 0.79% | | | | | | 1.40% | | | | | | 1.15% | | | | | | 1.13% | | | | | | 0.91% | | | | | | 1.40% | | |
Return on Average Equity (Last Twelve Months) | | | | | 12.2% | | | | | | 11.3% | | | | | | 11.1% | | | | | | 6.3% | | | | | | 24.8% | | | | | | 10.9% | | | | | | 11.2% | | | | | | 6.2% | | | | | | 17.8% | | | | | | 11.1% | | | | | | 11.8% | | | | | | 8.2% | | | | | | 17.8% | | |
Tangible Common Equity Ratio | | | | | 6.8% | | | | | | 8.8% | | | | | | 9.3% | | | | | | 6.5% | | | | | | 11.5% | | | | | | 8.8% | | | | | | 8.9% | | | | | | 6.6% | | | | | | 11.1% | | | | | | 9.0% | | | | | | 8.6% | | | | | | 6.6% | | | | | | 9.9% | | |
Efficiency Ratio (Last Twelve Months) | | | | | 65% | | | | | | 62% | | | | | | 62% | | | | | | 43% | | | | | | 79% | | | | | | 59% | | | | | | 59% | | | | | | 51% | | | | | | 65% | | | | | | 63% | | | | | | 61% | | | | | | 44% | | | | | | 72% | | |
Non-Performing Assets / Total Assets | | | | | 0.17% | | | | | | 0.46% | | | | | | 0.71% | | | | | | 0.00% | | | | | | 2.51% | | | | | | 0.40% | | | | | | 0.45% | | | | | | 0.00% | | | | | | 1.16% | | | | | | 0.40% | | | | | | 0.45% | | | | | | 0.19% | | | | | | 0.97% | | |
| | | Transaction Multiples | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | Georgia | | | Southeastern U.S. | | | United States | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | HSBI(1) | | | Median | | | Average | | | Minimum | | | Maximum | | | Median | | | Average | | | Minimum | | | Maximum | | | Median | | | Average | | | Minimum | | | Maximum | | |||||||||||||||||||||||||||||||||||||||
Aggregate Deal Value / Tangible Book Value | | | | | 174% | | | | | | 188% | | | | | | 196% | | | | | | 146% | | | | | | 272% | | | | | | 168% | | | | | | 168% | | | | | | 133% | | | | | | 195% | | | | | | 164% | | | | | | 164% | | | | | | 119% | | | | | | 204% | | |
Aggregate Deal Value / Last Twelve Months EPS | | | | | 10.8x | | | | | | 16.0x | | | | | | 17.5x | | | | | | 4.2x | | | | | | 28.7x | | | | | | 13.9x | | | | | | 14.9x | | | | | | 9.2x | | | | | | 23.8x | | | | | | 12.9x | | | | | | 13.6x | | | | | | 9.2x | | | | | | 20.0x | | |
Tangible Book Premium / Core Deposits(2) | | | | | 6.0% | | | | | | 15.7% | | | | | | 13.5% | | | | | | 4.5% | | | | | | 25.1% | | | | | | 8.0% | | | | | | 8.2% | | | | | | 4.4% | | | | | | 11.7% | | | | | | 7.1% | | | | | | 7.1% | | | | | | 4.1% | | | | | | 9.7% | | |
One Day Market Premium | | | | | 27.7% | | | | | | 11.2% | | | | | | 17.3% | | | | | | (5.2)% | | | | | | 59.2% | | | | | | 10.2% | | | | | | 13.7% | | | | | | (17.1)% | | | | | | 41.9% | | | | | | 14.1% | | | | | | 27.0% | | | | | | 9.7% | | | | | | 69.4% | | |
Pay-to-Trade(3) | | | | | 110% | | | | | | 99% | | | | | | 102% | | | | | | 72% | | | | | | 145% | | | | | | 93% | | | | | | 94% | | | | | | 75% | | | | | | 114% | | | | | | 93% | | | | | | 92% | | | | | | 67% | | | | | | 120% | | |
| | | Earnings Per Share Multiple | | |||||||||||||||||||||||||||||||||||||||
Discount Rate | | | 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | |||||||||||||||||||||
11.0% | | | | $ | 18.93 | | | | | $ | 21.03 | | | | | $ | 23.13 | | | | | $ | 25.23 | | | | | $ | 27.34 | | | | | $ | 29.44 | | | | | $ | 31.54 | | |
11.5% | | | | $ | 18.51 | | | | | $ | 20.56 | | | | | $ | 22.62 | | | | | $ | 24.67 | | | | | $ | 26.73 | | | | | $ | 28.79 | | | | | $ | 30.84 | | |
12.0% | | | | $ | 18.10 | | | | | $ | 20.11 | | | | | $ | 22.12 | | | | | $ | 24.13 | | | | | $ | 26.14 | | | | | $ | 28.15 | | | | | $ | 30.16 | | |
12.5% | | | | $ | 17.70 | | | | | $ | 19.66 | | | | | $ | 21.63 | | | | | $ | 23.60 | | | | | $ | 25.56 | | | | | $ | 27.53 | | | | | $ | 29.50 | | |
13.0% | | | | $ | 17.31 | | | | | $ | 19.23 | | | | | $ | 21.16 | | | | | $ | 23.08 | | | | | $ | 25.00 | | | | | $ | 26.92 | | | | | $ | 28.85 | | |
13.5% | | | | $ | 16.93 | | | | | $ | 18.81 | | | | | $ | 20.69 | | | | | $ | 22.57 | | | | | $ | 24.46 | | | | | $ | 26.34 | | | | | $ | 28.22 | | |
14.0% | | | | $ | 16.56 | | | | | $ | 18.40 | | | | | $ | 20.24 | | | | | $ | 22.08 | | | | | $ | 23.92 | | | | | $ | 25.76 | | | | | $ | 27.60 | | |
14.5% | | | | $ | 16.20 | | | | | $ | 18.00 | | | | | $ | 19.80 | | | | | $ | 21.60 | | | | | $ | 23.41 | | | | | $ | 25.21 | | | | | $ | 27.01 | | |
15.0% | | | | $ | 15.85 | | | | | $ | 17.62 | | | | | $ | 19.38 | | | | | $ | 21.14 | | | | | $ | 22.90 | | | | | $ | 24.66 | | | | | $ | 26.42 | | |
| | | Tangible Book Value Per Share Multiple | | |||||||||||||||||||||||||||||||||||||||
Discount Rate | | | 70% | | | 90% | | | 110% | | | 130% | | | 150% | | | 170% | | | 190% | | |||||||||||||||||||||
11.0% | | | | $ | 15.25 | | | | | $ | 19.60 | | | | | $ | 23.96 | | | | | $ | 28.32 | | | | | $ | 32.67 | | | | | $ | 37.03 | | | | | $ | 41.39 | | |
11.5% | | | | $ | 14.91 | | | | | $ | 19.17 | | | | | $ | 23.43 | | | | | $ | 27.69 | | | | | $ | 31.95 | | | | | $ | 36.21 | | | | | $ | 40.47 | | |
12.0% | | | | $ | 14.58 | | | | | $ | 18.74 | | | | | $ | 22.91 | | | | | $ | 27.07 | | | | | $ | 31.24 | | | | | $ | 35.40 | | | | | $ | 39.57 | | |
12.5% | | | | $ | 14.26 | | | | | $ | 18.33 | | | | | $ | 22.40 | | | | | $ | 26.48 | | | | | $ | 30.55 | | | | | $ | 34.62 | | | | | $ | 38.70 | | |
13.0% | | | | $ | 13.94 | | | | | $ | 17.93 | | | | | $ | 21.91 | | | | | $ | 25.90 | | | | | $ | 29.88 | | | | | $ | 33.86 | | | | | $ | 37.85 | | |
13.5% | | | | $ | 13.64 | | | | | $ | 17.54 | | | | | $ | 21.43 | | | | | $ | 25.33 | | | | | $ | 29.23 | | | | | $ | 33.12 | | | | | $ | 37.02 | | |
14.0% | | | | $ | 13.34 | | | | | $ | 17.16 | | | | | $ | 20.97 | | | | | $ | 24.78 | | | | | $ | 28.59 | | | | | $ | 32.40 | | | | | $ | 36.22 | | |
14.5% | | | | $ | 13.05 | | | | | $ | 16.78 | | | | | $ | 20.51 | | | | | $ | 24.24 | | | | | $ | 27.97 | | | | | $ | 31.70 | | | | | $ | 35.43 | | |
15.0% | | | | $ | 12.77 | | | | | $ | 16.42 | | | | | $ | 20.07 | | | | | $ | 23.72 | | | | | $ | 27.37 | | | | | $ | 31.02 | | | | | $ | 34.67 | | |
Sensitivity to 2027 EPS | | | Earnings Per Share Multiple | | |||||||||||||||||||||||||||||||||||||||
| 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | |||||||||||||||||||||||
20.0% | | | | $ | 20.77 | | | | | $ | 23.08 | | | | | $ | 25.39 | | | | | $ | 27.69 | | | | | $ | 30.00 | | | | | $ | 32.31 | | | | | $ | 34.62 | | |
15.0% | | | | $ | 19.91 | | | | | $ | 22.12 | | | | | $ | 24.33 | | | | | $ | 26.54 | | | | | $ | 28.75 | | | | | $ | 30.96 | | | | | $ | 33.18 | | |
10.0% | | | | $ | 19.04 | | | | | $ | 21.16 | | | | | $ | 23.27 | | | | | $ | 25.39 | | | | | $ | 27.50 | | | | | $ | 29.62 | | | | | $ | 31.73 | | |
5.0% | | | | $ | 18.17 | | | | | $ | 20.19 | | | | | $ | 22.21 | | | | | $ | 24.23 | | | | | $ | 26.25 | | | | | $ | 28.27 | | | | | $ | 30.29 | | |
0.0% | | | | $ | 17.31 | | | | | $ | 19.23 | | | | | $ | 21.16 | | | | | $ | 23.08 | | | | | $ | 25.00 | | | | | $ | 26.92 | | | | | $ | 28.85 | | |
(5.0%) | | | | $ | 16.44 | | | | | $ | 18.27 | | | | | $ | 20.10 | | | | | $ | 21.92 | | | | | $ | 23.75 | | | | | $ | 25.58 | | | | | $ | 27.41 | | |
(10.0%) | | | | $ | 15.58 | | | | | $ | 17.31 | | | | | $ | 19.04 | | | | | $ | 20.77 | | | | | $ | 22.50 | | | | | $ | 24.23 | | | | | $ | 25.96 | | |
(15.0%) | | | | $ | 14.71 | | | | | $ | 16.35 | | | | | $ | 17.98 | | | | | $ | 19.62 | | | | | $ | 21.25 | | | | | $ | 22.89 | | | | | $ | 24.52 | | |
(20.0%) | | | | $ | 13.85 | | | | | $ | 15.39 | | | | | $ | 16.92 | | | | | $ | 18.46 | | | | | $ | 20.00 | | | | | $ | 21.54 | | | | | $ | 23.08 | | |
| | | Earnings Per Share Multiple | | |||||||||||||||||||||||||||||||||||||||
Discount Rate | | | 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | |||||||||||||||||||||
10.0% | | | | $ | 25.22 | | | | | $ | 27.68 | | | | | $ | 30.14 | | | | | $ | 32.60 | | | | | $ | 35.06 | | | | | $ | 37.52 | | | | | $ | 39.98 | | |
10.5% | | | | $ | 24.68 | | | | | $ | 27.09 | | | | | $ | 29.49 | | | | | $ | 31.90 | | | | | $ | 34.30 | | | | | $ | 36.71 | | | | | $ | 39.11 | | |
11.0% | | | | $ | 24.16 | | | | | $ | 26.51 | | | | | $ | 28.86 | | | | | $ | 31.21 | | | | | $ | 33.56 | | | | | $ | 35.91 | | | | | $ | 38.26 | | |
11.5% | | | | $ | 23.65 | | | | | $ | 25.95 | | | | | $ | 28.25 | | | | | $ | 30.55 | | | | | $ | 32.84 | | | | | $ | 35.14 | | | | | $ | 37.44 | | |
12.0% | | | | $ | 23.15 | | | | | $ | 25.40 | | | | | $ | 27.65 | | | | | $ | 29.90 | | | | | $ | 32.15 | | | | | $ | 34.39 | | | | | $ | 36.64 | | |
12.5% | | | | $ | 22.67 | | | | | $ | 24.87 | | | | | $ | 27.07 | | | | | $ | 29.27 | | | | | $ | 31.46 | | | | | $ | 33.66 | | | | | $ | 35.86 | | |
13.0% | | | | $ | 22.20 | | | | | $ | 24.35 | | | | | $ | 26.50 | | | | | $ | 28.65 | | | | | $ | 30.80 | | | | | $ | 32.95 | | | | | $ | 35.10 | | |
13.5% | | | | $ | 21.74 | | | | | $ | 23.85 | | | | | $ | 25.95 | | | | | $ | 28.05 | | | | | $ | 30.15 | | | | | $ | 32.26 | | | | | $ | 34.36 | | |
14.0% | | | | $ | 21.30 | | | | | $ | 23.35 | | | | | $ | 25.41 | | | | | $ | 27.47 | | | | | $ | 29.52 | | | | | $ | 31.58 | | | | | $ | 33.64 | | |
| | | Tangible Book Value Per Share Multiple | | |||||||||||||||||||||||||||||||||||||||
Discount Rate | | | 90% | | | 110% | | | 130% | | | 150% | | | 170% | | | 190% | | | 210% | | |||||||||||||||||||||
10.0% | | | | $ | 22.43 | | | | | $ | 26.73 | | | | | $ | 31.03 | | | | | $ | 35.33 | | | | | $ | 39.63 | | | | | $ | 43.93 | | | | | $ | 48.23 | | |
10.5% | | | | $ | 21.95 | | | | | $ | 26.16 | | | | | $ | 30.36 | | | | | $ | 34.56 | | | | | $ | 38.77 | | | | | $ | 42.97 | | | | | $ | 47.17 | | |
11.0% | | | | $ | 21.49 | | | | | $ | 25.60 | | | | | $ | 29.71 | | | | | $ | 33.82 | | | | | $ | 37.93 | | | | | $ | 42.04 | | | | | $ | 46.15 | | |
11.5% | | | | $ | 21.04 | | | | | $ | 25.06 | | | | | $ | 29.08 | | | | | $ | 33.10 | | | | | $ | 37.11 | | | | | $ | 41.13 | | | | | $ | 45.15 | | |
12.0% | | | | $ | 20.60 | | | | | $ | 24.53 | | | | | $ | 28.46 | | | | | $ | 32.39 | | | | | $ | 36.32 | | | | | $ | 40.25 | | | | | $ | 44.18 | | |
12.5% | | | | $ | 20.18 | | | | | $ | 24.02 | | | | | $ | 27.86 | | | | | $ | 31.70 | | | | | $ | 35.55 | | | | | $ | 39.39 | | | | | $ | 43.23 | | |
13.0% | | | | $ | 19.76 | | | | | $ | 23.52 | | | | | $ | 27.28 | | | | | $ | 31.04 | | | | | $ | 34.79 | | | | | $ | 38.55 | | | | | $ | 42.31 | | |
13.5% | | | | $ | 19.36 | | | | | $ | 23.03 | | | | | $ | 26.71 | | | | | $ | 30.38 | | | | | $ | 34.06 | | | | | $ | 37.74 | | | | | $ | 41.41 | | |
14.0% | | | | $ | 18.96 | | | | | $ | 22.56 | | | | | $ | 26.15 | | | | | $ | 29.75 | | | | | $ | 33.35 | | | | | $ | 36.94 | | | | | $ | 40.54 | | |
Sensitivity to 2027 EPS | | | Earnings Per Share Multiple | | |||||||||||||||||||||||||||||||||||||||
| 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | |||||||||||||||||||||||
20.0% | | | | $ | 27.20 | | | | | $ | 29.90 | | | | | $ | 32.59 | | | | | $ | 35.29 | | | | | $ | 37.99 | | | | | $ | 40.69 | | | | | $ | 43.38 | | |
15.0% | | | | $ | 26.19 | | | | | $ | 28.77 | | | | | $ | 31.36 | | | | | $ | 33.94 | | | | | $ | 36.53 | | | | | $ | 39.11 | | | | | $ | 41.70 | | |
10.0% | | | | $ | 25.18 | | | | | $ | 27.65 | | | | | $ | 30.12 | | | | | $ | 32.59 | | | | | $ | 35.07 | | | | | $ | 37.54 | | | | | $ | 40.01 | | |
5.0% | | | | $ | 24.17 | | | | | $ | 26.53 | | | | | $ | 28.89 | | | | | $ | 31.25 | | | | | $ | 33.61 | | | | | $ | 35.97 | | | | | $ | 38.33 | | |
0.0% | | | | $ | 23.15 | | | | | $ | 25.40 | | | | | $ | 27.65 | | | | | $ | 29.90 | | | | | $ | 32.15 | | | | | $ | 34.39 | | | | | $ | 36.64 | | |
(5.0%) | | | | $ | 22.14 | | | | | $ | 24.28 | | | | | $ | 26.41 | | | | | $ | 28.55 | | | | | $ | 30.68 | | | | | $ | 32.82 | | | | | $ | 34.96 | | |
(10.0%) | | | | $ | 21.13 | | | | | $ | 23.15 | | | | | $ | 25.18 | | | | | $ | 27.20 | | | | | $ | 29.22 | | | | | $ | 31.25 | | | | | $ | 33.27 | | |
(15.0%) | | | | $ | 20.12 | | | | | $ | 22.03 | | | | | $ | 23.94 | | | | | $ | 25.85 | | | | | $ | 27.76 | | | | | $ | 29.67 | | | | | $ | 31.58 | | |
(20.0%) | | | | $ | 19.11 | | | | | $ | 20.91 | | | | | $ | 22.70 | | | | | $ | 24.50 | | | | | $ | 26.30 | | | | | $ | 28.10 | | | | | $ | 29.90 | | |
| | | Earnings Per Share Multiple | | |||||||||||||||||||||||||||||||||||||||
Discount Rate | | | 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | |||||||||||||||||||||
10.0% | | | | $ | 27.37 | | | | | $ | 30.07 | | | | | $ | 32.77 | | | | | $ | 35.47 | | | | | $ | 38.17 | | | | | $ | 40.86 | | | | | $ | 43.56 | | |
10.5% | | | | $ | 26.78 | | | | | $ | 29.42 | | | | | $ | 32.06 | | | | | $ | 34.70 | | | | | $ | 37.34 | | | | | $ | 39.98 | | | | | $ | 42.62 | | |
11.0% | | | | $ | 26.21 | | | | | $ | 28.79 | | | | | $ | 31.37 | | | | | $ | 33.95 | | | | | $ | 36.53 | | | | | $ | 39.11 | | | | | $ | 41.69 | | |
11.5% | | | | $ | 25.66 | | | | | $ | 28.18 | | | | | $ | 30.70 | | | | | $ | 33.23 | | | | | $ | 35.75 | | | | | $ | 38.27 | | | | | $ | 40.79 | | |
12.0% | | | | $ | 25.12 | | | | | $ | 27.59 | | | | | $ | 30.05 | | | | | $ | 32.52 | | | | | $ | 34.99 | | | | | $ | 37.45 | | | | | $ | 39.92 | | |
12.5% | | | | $ | 24.59 | | | | | $ | 27.01 | | | | | $ | 29.42 | | | | | $ | 31.83 | | | | | $ | 34.24 | | | | | $ | 36.65 | | | | | $ | 39.07 | | |
13.0% | | | | $ | 24.08 | | | | | $ | 26.44 | | | | | $ | 28.80 | | | | | $ | 31.16 | | | | | $ | 33.52 | | | | | $ | 35.88 | | | | | $ | 38.24 | | |
13.5% | | | | $ | 23.58 | | | | | $ | 25.89 | | | | | $ | 28.20 | | | | | $ | 30.50 | | | | | $ | 32.81 | | | | | $ | 35.12 | | | | | $ | 37.43 | | |
14.0% | | | | $ | 23.09 | | | | | $ | 25.35 | | | | | $ | 27.61 | | | | | $ | 29.87 | | | | | $ | 32.12 | | | | | $ | 34.38 | | | | | $ | 36.64 | | |
| | | Tangible Book Value Per Share Multiple | | |||||||||||||||||||||||||||||||||||||||
Discount Rate | | | 90% | | | 110% | | | 130% | | | 150% | | | 170% | | | 190% | | | 210% | | |||||||||||||||||||||
10.0% | | | | $ | 23.09 | | | | | $ | 27.53 | | | | | $ | 31.98 | | | | | $ | 36.42 | | | | | $ | 40.87 | | | | | $ | 45.32 | | | | | $ | 49.76 | | |
10.5% | | | | $ | 22.60 | | | | | $ | 26.94 | | | | | $ | 31.29 | | | | | $ | 35.64 | | | | | $ | 39.98 | | | | | $ | 44.33 | | | | | $ | 48.67 | | |
11.0% | | | | $ | 22.12 | | | | | $ | 26.37 | | | | | $ | 30.62 | | | | | $ | 34.87 | | | | | $ | 39.12 | | | | | $ | 43.37 | | | | | $ | 47.62 | | |
11.5% | | | | $ | 21.66 | | | | | $ | 25.81 | | | | | $ | 29.97 | | | | | $ | 34.12 | | | | | $ | 38.28 | | | | | $ | 42.43 | | | | | $ | 46.58 | | |
12.0% | | | | $ | 21.21 | | | | | $ | 25.27 | | | | | $ | 29.33 | | | | | $ | 33.39 | | | | | $ | 37.46 | | | | | $ | 41.52 | | | | | $ | 45.58 | | |
12.5% | | | | $ | 20.77 | | | | | $ | 24.74 | | | | | $ | 28.71 | | | | | $ | 32.68 | | | | | $ | 36.66 | | | | | $ | 40.63 | | | | | $ | 44.60 | | |
13.0% | | | | $ | 20.34 | | | | | $ | 24.22 | | | | | $ | 28.11 | | | | | $ | 31.99 | | | | | $ | 35.88 | | | | | $ | 39.77 | | | | | $ | 43.65 | | |
13.5% | | | | $ | 19.92 | | | | | $ | 23.72 | | | | | $ | 27.52 | | | | | $ | 31.32 | | | | | $ | 35.12 | | | | | $ | 38.92 | | | | | $ | 42.73 | | |
14.0% | | | | $ | 19.51 | | | | | $ | 23.23 | | | | | $ | 26.95 | | | | | $ | 30.67 | | | | | $ | 34.39 | | | | | $ | 38.10 | | | | | $ | 41.82 | | |
Sensitivity to 2027 EPS | | | Earnings Per Share Multiple | | |||||||||||||||||||||||||||||||||||||||
| 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | |||||||||||||||||||||||
20.0% | | | | $ | 29.56 | | | | | $ | 32.52 | | | | | $ | 35.48 | | | | | $ | 38.44 | | | | | $ | 41.40 | | | | | $ | 44.36 | | | | | $ | 47.32 | | |
15.0% | | | | $ | 28.45 | | | | | $ | 31.29 | | | | | $ | 34.12 | | | | | $ | 36.96 | | | | | $ | 39.79 | | | | | $ | 42.63 | | | | | $ | 45.47 | | |
10.0% | | | | $ | 27.34 | | | | | $ | 30.05 | | | | | $ | 32.77 | | | | | $ | 35.48 | | | | | $ | 38.19 | | | | | $ | 40.90 | | | | | $ | 43.62 | | |
5.0% | | | | $ | 26.23 | | | | | $ | 28.82 | | | | | $ | 31.41 | | | | | $ | 34.00 | | | | | $ | 36.59 | | | | | $ | 39.18 | | | | | $ | 41.77 | | |
0.0% | | | | $ | 25.12 | | | | | $ | 27.59 | | | | | $ | 30.05 | | | | | $ | 32.52 | | | | | $ | 34.99 | | | | | $ | 37.45 | | | | | $ | 39.92 | | |
(5.0%) | | | | $ | 24.01 | | | | | $ | 26.35 | | | | | $ | 28.70 | | | | | $ | 31.04 | | | | | $ | 33.38 | | | | | $ | 35.72 | | | | | $ | 38.07 | | |
(10.0%) | | | | $ | 22.90 | | | | | $ | 25.12 | | | | | $ | 27.34 | | | | | $ | 29.56 | | | | | $ | 31.78 | | | | | $ | 34.00 | | | | | $ | 36.22 | | |
(15.0%) | | | | $ | 21.79 | | | | | $ | 23.89 | | | | | $ | 25.98 | | | | | $ | 28.08 | | | | | $ | 30.18 | | | | | $ | 32.27 | | | | | $ | 34.37 | | |
(20.0%) | | | | $ | 20.68 | | | | | $ | 22.65 | | | | | $ | 24.63 | | | | | $ | 26.60 | | | | | $ | 28.57 | | | | | $ | 30.55 | | | | | $ | 32.52 | | |
Control Premium Analysis | | ||||||||||||||||||||||||
| | | HSBI | | | OTC | | | NASDAQ & NYSE | | | All Public Banks | | ||||||||||||
Average Control Premium 2010 – Present | | | | | 27.7% | | | | | | 49.0% | | | | | | 25.7% | | | | | | 38.7% | | |
| | | For the Year Ending December 31, | | |||||||||||||||
| | | 2022 | | | 2023 | | | 2024 | | |||||||||
Assets (in thousands) | | | | $ | 1,688 | | | | | $ | 1,734 | | | | | $ | 1,782 | | |
Net Income (in thousands) | | | | $ | 16.2 | | | | | $ | 19.9 | | | | | $ | 22.9 | | |
Dividend Per Share | | | | $ | 0.00 | | | | | $ | 0.00 | | | | | $ | 0.00 | | |
Name | | | Employment Agreement: Change-in- Control Payment ($) | | | SERP: Cash-Based Retirement Benefit($) | | | SERP: Stock-Based Retirement Benefit($)(1) | | | Value of Restricted Shares($)(2) | | | Option Cash-Out Consideration($)(3) | | |||||||||||||||
Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jeff Arnold | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Roy Hall | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ken Lehman | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
John Mansour | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 58,257 | | |
Leonard Moreland | | | | | 1,202,838 | | | | | | 828,087 | | | | | | 898,850 | | | | | | — | | | | | | — | | |
John Presley | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
David Rupp | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Brad Serff | | | | | 821,102 | | | | | | 1,553,826 | | | | | | — | | | | | | — | | | | | | 197,974 | | |
Name | | | Employment Agreement: Change-in- Control Payment ($) | | | SERP: Cash-Based Retirement Benefit($) | | | SERP: Stock-Based Retirement Benefit($)(1) | | | Value of Restricted Shares($)(2) | | | Option Cash-Out Consideration($)(3) | | |||||||||||||||
Non-Director Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Paul Hoerig | | | | | 388,592 | | | | | | 975,862 | | | | | | — | | | | | | 177,521 | | | | | | — | | |
Phil Resch | | | | | 332,599 | | | | | | 664,842 | | | | | | — | | | | | | — | | | | | | — | | |
Kathy Zovlonsky | | | | | 278,557 | | | | | | 480,000 | | | | | | — | | | | | | — | | | | | | 29,806 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | |
Name | | | Title | | | Number of Restricted Shares | | | Number of Stock Options | | ||||||
Carl Chaney | | | Chairman of the Board and Director | | | | | — | | | | | | 604,140 | | |
Charles N. “Chip” Reeves | | | Director, President and Chief Executive Officer | | | | | 85,357 | | | | | | 604,140 | | |
Richard A. Mocsari | | | Executive Vice President and Chief Financial Officer | | | | | 51,408 | | | | | | 150,028 | | |
Andrew G. Peterson | | | Executive Vice President and Chief Credit Officer | | | | | 44,890 | | | | | | 85,586 | | |
| | | Common Stock | | | Preferred | | ||||||||||||||||||
| | | Amount and Nature of Beneficial Ownership | | | Percent of Class | | | Amount and Nature of Beneficial Ownership | | | Percent of Class | | ||||||||||||
Directors | | | | | | | | | | | | | | | | | | | | | | | | | |
Carl J. Chaney | | | | | 667,605(a) | | | | | | 4.40% | | | | | | 0 | | | | | | — | | |
Charles N. “Chip” Reeves | | | | | 793,264(b) | | | | | | 5.22% | | | | | | 0 | | | | | | — | | |
James C. Cherry | | | | | 34,000(c) | | | | | | 0.23% | | | | | | 0 | | | | | | — | | |
C. LeDon Anchors | | | | | 3,000 | | | | | | 0.02% | | | | | | 0 | | | | | | — | | |
Derek J. Ferber | | | | | 1,455,535(d) | | | | | | 9.88% | | | | | | 535,155 | | | | | | 9.90% | | |
Joseph W. Henderson | | | | | 30,000(e) | | | | | | 0.20% | | | | | | 0 | | | | | | — | | |
Jonathan A. Levy | | | | | 70,285(f) | | | | | | 0.48% | | | | | | 0 | | | | | | — | | |
Jonathan C. Lorenz | | | | | 120,000 | | | | | | 0.81% | | | | | | 0 | | | | | | — | | |
Brian Murphy | | | | | 202,898(g) | | | | | | 1.38% | | | | | | 0 | | | | | | — | | |
Nicola Harbeson “Terri” Roberts | | | | | 8,800 | | | | | | 0.06% | | | | | | 0 | | | | | | — | | |
Thomas M. Wells | | | | | 1,455,535(h) | | | | | | 9.88% | | | | | | 2,050,447 | | | | | | 37.93% | | |
J. Dan Speight | | | | | 36,560 | | | | | | 0.25% | | | | | | 0 | | | | | | | | |
Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | |
Charles N. Reeves | | | | | 793,264(b) | | | | | | 5.22% | | | | | | 0 | | | | | | — | | |
Richard A. Mocsari | | | | | 123,642(i) | | | | | | 0.83% | | | | | | 0 | | | | | | — | | |
Andrew G. Peterson | | | | | 72,716(j) | | | | | | 0.49% | | | | | | 0 | | | | | | — | | |
Directors and Officers (as a group, 14 persons) | | | | | 5,073,839 | | | | | | 32.02% | | | | | | 2,585,602 | | | | | | 47.83% | | |
Name and Address of holders 5% or more of the outstanding shares | | | | | | | | | | | | | | | | | | | | | | | | | |
EJF Sidecar Fund, Series LLC — Small Financial Equities | | | | | 1,455,535 | | | | | | 9.88% | | | | | | 2,545,954 | | | | | | 47.10% | | |
Series 2107 Wilson Boulevard, Suite 410, Arlington, VA | | | | | | ||||||||||||||||||||
Thomas M. Wells, Trustee David F Bolger | | | | | 1,455,535(h) | | | | | | 9.88% | | | | | | 1,917,447(h) | | | | | | 35.47% | | |
2018 Irrevocable Stock Trust Route 17 North, PO BOX 1827, Paramus, NJ | | | | | |
| | | Common Stock | | | Preferred | | ||||||||||||||||||
| | | Amount and Nature of Beneficial Ownership | | | Percent of Class | | | Amount and Nature of Beneficial Ownership | | | Percent of Class | | ||||||||||||
Thomas M Wells TTEE David F Bolger Children’s | | | | | | | | | | | 0.00% | | | | | | 58,000(h) | | | | | | 1.07% | | |
Trust UA of the 14th Amended and Restated Revocable Trust FBO James T Bolger U/A/D 05/28/2008 Route 17 North, PO Box 1827, Paramus, NJ | | | | | | ||||||||||||||||||||
Thomas M Wells Wells Mountain Investments LLC | | | | | | | | | | | 0.00% | | | | | | 75,000(h) | | | | | | 1.39% | | |
Route 17 North, PO Box 1827, Paramus, NJ | | | | | | ||||||||||||||||||||
Bridge Equities V, LLC | | | | | 724,365(d) | | | | | | 4.92% | | | | | | 266,325(d) | | | | | | 4.93% | | |
5425 Wisconsin Ave., Ste. 701, Chevy Chase, MD | | | | | | ||||||||||||||||||||
Financial Hybrid Opportunity SPV I LLC | | | | | 516,937(d) | | | | | | 3.51% | | | | | | 190,063(d) | | | | | | 3.52% | | |
Kashdin 1313 Dolley Madison Blvd., STE 306, Mclean, VA | | | | | | ||||||||||||||||||||
Financial Hybrid Opportunity Fund LLC LLC | | | | | 214,233(d) | | | | | | 1.45% | | | | | | 78,767(d) | | | | | | 1.46% | | |
Kashdin 1313 Dolley Madison Blvd., STE 306, Mclean, VA | | | | | | ||||||||||||||||||||
Endeavour Regional Bank Opportunities Fund II LP | | | | | 834,195(k) | | | | | | 5.66% | | | | | | | | | | | | 0.00% | | |
410 Greenwich Ave, Greenwhich, CT | | | | | | ||||||||||||||||||||
Endeavour Capital Private Investments I LP | | | | | 621,340(k) | | | | | | 4.22% | | | | | | 144,465(k) | | | | | | 2.67% | | |
410 Greenwich Ave, Greenwhich, CT | | | | | | ||||||||||||||||||||
Strategic Value Private Investors LP | | | | | 1,422,591 | | | | | | 9.66% | | | | | | 129,583 | | | | | | 2.40% | | |
127 Public Sq, STE 1510, Cleveland, OH | | | | | |
Name | | | Principal Occupation | |
| | Chairman, | | |
Leonard Moreland | | | CEO, | |
| | President and | | |
| | | ||
| | Principal, | | |
| | | ||
| | | ||
| | |||
|
Name | | | Principal Occupation | |
| | | ||
| | Executive Vice President and Chief Financial Officer | | |
| | Executive Vice President and Chief Credit & Risk Officer | | |
Brad Serff | | | President and Chief Banking Officer | |
Kathy Zovlonsky | | | Executive Vice President and Chief Administration Officer | |
| | | For the Three Months Ended June 30, 2022 | | | For the Three Months Ended June 30, 2021 | | ||||||||||||||||||||||||||||||
(dollars in thousands) | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | ||||||||||||||||||
Interest earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, excluding PPP | | | | $ | 1,092,048 | | | | | $ | 12,939 | | | | | | 4.75% | | | | | $ | 993,380 | | | | | $ | 12,592 | | | | | | 5.08% | | |
PPP loans | | | | | 1,521 | | | | | | 114 | | | | | | 30.15% | | | | | | 77,291 | | | | | | 1,024 | | | | | | 5.32% | | |
Total loans(1) | | | | | 1,093,569 | | | | | | 13,053 | | | | | | 4.79% | | | | | | 1,070,671 | | | | | | 13,616 | | | | | | 5.10% | | |
Investment securities | | | | | 204,316 | | | | | | 654 | | | | | | 1.28% | | | | | | 168,884 | | | | | | 376 | | | | | | 0.91% | | |
Deposits with banks | | | | | 288,146 | | | | | | 593 | | | | | | 0.83% | | | | | | 276,318 | | | | | | 79 | | | | | | 0.11% | | |
Total interest-earning assets | | | | | 1,586,031 | | | | | | 14,300 | | | | | | 3.62% | | | | | | 1,515,873 | | | | | | 14,071 | | | | | | 3.72% | | |
Other assets | | | | | 124,825 | | | | | | | | | | | | | | | | | | 141,872 | | | | | | | | | | | | | | |
Total assets | | | | | 1,710,856 | | | | | | | | | | | | | | | | | | 1,657,745 | | | | | | | | | | | | | | |
| | | For the Three Months Ended June 30, 2022 | | | For the Three Months Ended June 30, 2021 | | ||||||||||||||||||||||||||||||
(dollars in thousands) | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | ||||||||||||||||||
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | | | | | 280,090 | | | | | | 42 | | | | | | 0.06% | | | | | | 272,642 | | | | | | 47 | | | | | | 0.07% | | |
Money market and savings | | | | | 462,612 | | | | | | 168 | | | | | | 0.14% | | | | | | 427,499 | | | | | | 151 | | | | | | 0.14% | | |
Time deposits | | | | | 216,435 | | | | | | 455 | | | | | | 0.84% | | | | | | 257,303 | | | | | | 645 | | | | | | 1.01% | | |
Total deposits | | | | | 959,137 | | | | | | 665 | | | | | | 0.28% | | | | | | 957,444 | | | | | | 843 | | | | | | 0.35% | | |
Repurchase agreements | | | | | 24,688 | | | | | | 9 | | | | | | 0.15% | | | | | | 12,914 | | | | | | 6 | | | | | | 0.20% | | |
Other borrowings | | | | | 44,150 | | | | | | 421 | | | | | | 3.83% | | | | | | 25,676 | | | | | | 205 | | | | | | 3.20% | | |
Subordinated debt | | | | | — | | | | | | — | | | | | | | | | | | | 18,309 | | | | | | 290 | | | | | | 6.36% | | |
Total interest-bearing liabilities | | | | | 1,027,975 | | | | | | 1,095 | | | | | | 0.43% | | | | | | 1,014,343 | | | | | | 1,344 | | | | | | 0.53% | | |
Non-interest-bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | | | 526,808 | | | | | | | | | | | | | | | | | | 487,335 | | | | | | | | | | | | | | |
Other liabilities | | | | | 6,319 | | | | | | | | | | | | | | | | | | 8,653 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 149,754 | | | | | | | | | | | | | | | | | | 147,414 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 1,710,856 | | | | | | | | | | | | | | | | | $ | 1,657,745 | | | | | | | | | | | | | | |
Net interest income | | | | | | | | | | $ | 13,205 | | | | | | | | | | | | | | | | | $ | 12,727 | | | | | | | | |
Net interest spread | | | | | | | | | | | | | | | | | 3.19% | | | | | | | | | | | | | | | | | | 3.19% | | |
Net interest margin | | | | | | | | | | | | | | | | | 3.34% | | | | | | | | | | | | | | | | | | 3.37% | | |
| | | For the Six Months Ended June 30, 2022 | | | For the Six Months Ended June 30, 2021 | | ||||||||||||||||||||||||||||||
(dollars in thousands) | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | ||||||||||||||||||
Interest earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, excluding PPP | | | | $ | 1,074,257 | | | | | $ | 25,186 | | | | | | 4.73% | | | | | $ | 990,791 | | | | | $ | 25,217 | | | | | | 5.13% | | |
PPP loans | | | | | 4,780 | | | | | | 350 | | | | | | 14.75% | | | | | | 80,401 | | | | | | 2,095 | | | | | | 5.26% | | |
Total loans(1) | | | | | 1,079,037 | | | | | | 25,536 | | | | | | 4.77% | | | | | | 1,071,192 | | | | | | 27,312 | | | | | | 5.14% | | |
Investment securities | | | | | 201,114 | | | | | | 1,410 | | | | | | 1.40% | | | | | | 172,633 | | | | | | 892 | | | | | | 1.03% | | |
Deposits with banks | | | | | 282,372 | | | | | | 705 | | | | | | 0.50% | | | | | | 237,223 | | | | | | 134 | | | | | | 0.11% | | |
Total interest-earning assets | | | | | 1,562,523 | | | | | | 27,651 | | | | | | 3.57% | | | | | | 1,481,048 | | | | | | 28,338 | | | | | | 3.86% | | |
Other assets | | | | | 129,179 | | | | | | | | | | | | | | | | | | 143,544 | | | | | | | | | | | | | | |
Total assets | | | | | 1,691,702 | | | | | | | | | | | | | | | | | | 1,624,592 | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | | | | | 275,176 | | | | | | 79 | | | | | | 0.06% | | | | | | 272,866 | | | | | | 121 | | | | | | 0.09% | | |
Money market and savings | | | | | 455,311 | | | | | | 325 | | | | | | 0.14% | | | | | | 415,166 | | | | | | 353 | | | | | | 0.17% | | |
Time deposits | | | | | 219,916 | | | | | | 916 | | | | | | 0.84% | | | | | | 263,445 | | | | | | 1355 | | | | | | 1.04% | | |
Total deposits | | | | | 950,403 | | | | | | 1,320 | | | | | | 0.28% | | | | | | 951,477 | | | | | | 1,829 | | | | | | 0.39% | | |
Repurchase agreements | | | | | 27,876 | | | | | | 24 | | | | | | 0.17% | | | | | | 13,401 | | | | | | 16 | | | | | | 0.25% | | |
Other borrowings | | | | | 44,003 | | | | | | 777 | | | | | | 3.56% | | | | | | 24,821 | | | | | | 397 | | | | | | 3.23% | | |
Subordinated debt | | | | | — | | | | | | — | | | | | | | | | | | | 18,976 | | | | | | 600 | | | | | | 6.37% | | |
Total interest-bearing liabilities | | | | | 1,022,282 | | | | | | 2,121 | | | | | | 0.42% | | | | | | 1,008,675 | | | | | | 2,842 | | | | | | 0.57% | | |
Non-interest-bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | | | 511,712 | | | | | | | | | | | | | | | | | | 461,435 | | | | | | | | | | | | | | |
Other liabilities | | | | | 6,192 | | | | | | | | | | | | | | | | | | 8,612 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 151,516 | | | | | | | | | | | | | | | | | | 145,870 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 1,691,702 | | | | | | | | | | | | | | | | | $ | 1,624,592 | | | | | | | | | | | | | | |
Net interest income | | | | | | | | | | $ | 25,530 | | | | | | | | | | | | | | | | | $ | 25,496 | | | | | | | | |
Net interest spread | | | | | | | | | | | | | | | | | 3.15% | | | | | | | | | | | | | | | | | | 3.29% | | |
Net interest margin | | | | | | | | | | | | | | | | | 3.29% | | | | | | | | | | | | | | | | | | 3.47% | | |
| | | For the Year Ended December 31, 2021 | | | For the Year Ended December 31, 2020 | | ||||||||||||||||||||||||||||||
(dollars in thousands) | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | ||||||||||||||||||
Interest earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, excluding PPP | | | | $ | 1,010,986 | | | | | | 50,588 | | | | | | 5.00% | | | | | $ | 945,784 | | | | | | 51,805 | | | | | | 5.48% | | |
PPP loans | | | | | 54,004 | | | | | | 3,537 | | | | | | 6.55% | | | | | | 71,072 | | | | | | 2,154 | | | | | | 3.03% | | |
Total loans(1) | | | | | 1,064,990 | | | | | | 54,125 | | | | | | 5.08% | | | | | | 1,016,856 | | | | | | 53,959 | | | | | | 5.31% | | |
Investment securities | | | | | 177,021 | | | | | | 1,975 | | | | | | 1.12% | | | | | | 141,803 | | | | | | 1,831 | | | | | | 1.30% | | |
Deposits with banks | | | | | 254,495 | | | | | | 354 | | | | | | 0.14% | | | | | | 150,985 | | | | | | 524 | | | | | | 0.34% | | |
Total interest-earning assets | | | | | 1,496,506 | | | | | | 56,454 | | | | | | 3.77% | | | | | | 1,309,644 | | | | | | 56,314 | | | | | | 4.30% | | |
Other assets | | | | | 140,659 | | | | | | | | | | | | | | | | | | 149,061 | | | | | | | | | | | | | | |
Total assets | | | | | 1,637,165 | | | | | | | | | | | | | | | | | | 1,458,705 | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | �� | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | | | | | 268,835 | | | | | | 199 | | | | | | 0.07% | | | | | | 229,354 | | | | | | 341 | | | | | | 0.15% | | |
Money market and savings | | | | | 422,657 | | | | | | 656 | | | | | | 0.16% | | | | | | 334,588 | | | | | | 1,501 | | | | | | 0.45% | | |
Time deposits | | | | | 250,190 | | | | | | 2,437 | | | | | | 0.97% | | | | | | 302,423 | | | | | | 4,566 | | | | | | 1.51% | | |
Total deposits | | | | | 941,682 | | | | | | 3,292 | | | | | | | | | | | | 866,365 | | | | | | 6,408 | | | | | | 0.74% | | |
Repurchase agreements | | | | | 17,571 | | | | | | 33 | | | | | | 0.19% | | | | | | 15,152 | | | | | | 107 | | | | | | 0.70% | | |
Other borrowings | | | | | 30,565 | | | | | | 1,003 | | | | | | 3.28% | | | | | | 30,352 | | | | | | 1,034 | | | | | | 3.41% | | |
Subordinated debt | | | | | 13,104 | | | | | | 844 | | | | | | 6.44% | | | | | | 9,926 | | | | | | 622 | | | | | | 6.27% | | |
Total interest-bearing liabilities | | | | | 1,002,922 | | | | | | 5,172 | | | | | | 0.52% | | | | | | 921,795 | | | | | | 8,171 | | | | | | 0.89% | | |
| | | For the Year Ended December 31, 2021 | | | For the Year Ended December 31, 2020 | | ||||||||||||||||||||||||||||||
(dollars in thousands) | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | | Average Balance | | | Income/ Expense | | | Yield/ Rate | | ||||||||||||||||||
Non-interest-bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | | | 477,470 | | | | | | | | | | | | | | | | | | 387,822 | | | | | | | | | | | | | | |
Other liabilities | | | | | 8,254 | | | | | | | | | | | | | | | | | | 8,366 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 148,519 | | | | | | | | | | | | | | | | | | 140,722 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 1,637,165 | | | | | | | | | | | | | | | | | $ | 1,458,705 | | | | | | | | | | | | | | |
Net interest income | | | | | | | | | | �� | 51,282 | | | | | | | | | | | | | | | | | | 48,143 | | | | | | | | |
Net interest spread | | | | | | | | | | | | | | | | | 3.26% | | | | | | | | | | | | | | | | | | 3.41% | | |
Net interest margin | | | | | | | | | | | | | | | | | 3.43% | | | | | | | | | | | | | | | | | | 3.68% | | |
| | | Three Months Ended June 30, 2022 vs. June 30, 2021 | | |||||||||||||||||||||||||||
| | | Net Interest Income | | | Increase (Decrease) | | | Changes Due To | | |||||||||||||||||||||
| | | 2022 | | | 2021 | | | Rate | | | Volume | | ||||||||||||||||||
Interest earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, excluding PPP | | | | $ | 12,939 | | | | | $ | 12,592 | | | | | $ | 347 | | | | | $ | (904) | | | | | $ | 1,251 | | |
PPP loans | | | | | 114 | | | | | | 1,024 | | | | | | (910) | | | | | | 94 | | | | | | (1,004) | | |
Total loans | | | | | 13,053 | | | | | | 13,616 | | | | | | (563) | | | | | | (810) | | | | | | 247 | | |
Interest on securities | | | | | 654 | | | | | | 376 | | | | | | 278 | | | | | | 220 | | | | | | 58 | | |
Interest on deposits with banks | | | | | 593 | | | | | | 79 | | | | | | 514 | | | | | | 510 | | | | | | 4 | | |
Expense from interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on NOW accounts | | | | | 42 | | | | | | 47 | | | | | | (5) | | | | | | (6) | | | | | | 1 | | |
Interest on money market and savings accounts | | | | | 168 | | | | | | 151 | | | | | | 17 | | | | | | 7 | | | | | | 10 | | |
Interest on time deposits | | | | | 455 | | | | | | 645 | | | | | | (190) | | | | | | (87) | | | | | | (103) | | |
Interest on other borrowings | | | | | 430 | | | | | | 211 | | | | | | 219 | | | | | | 74 | | | | | | 145 | | |
Interest on subordinated debt | | | | | — | | | | | | 290 | | | | | | (290) | | | | | | — | | | | | | (290) | | |
| | | Six Months Ended June 30, 2022 vs. June 30, 2021 | | |||||||||||||||||||||||||||
| | | Net Interest Income | | | Increase (Decrease) | | | Changes Due To | | |||||||||||||||||||||
| | | 2022 | | | 2021 | | | Rate | | | Volume | | ||||||||||||||||||
Interest earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, excluding PPP | | | | $ | 25,186 | | | | | $ | 25,217 | | | | | $ | (31) | | | | | $ | (2,155) | | | | | $ | 2,124 | | |
PPP loans | | | | | 350 | | | | | | 2,095 | | | | | | (1,745) | | | | | | 225 | | | | | | (1,970) | | |
Total loans | | | | | 25,536 | | | | | | 27,312 | | | | | | (1,776) | | | | | | (1,930) | | | | | | 154 | | |
Interest on securities | | | | | 1,410 | | | | | | 892 | | | | | | 517 | | | | | | 399 | | | | | | 118 | | |
Interest on deposits with banks | | | | | 705 | | | | | | 134 | | | | | | 571 | | | | | | 552 | | | | | | 19 | | |
Expense from interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on NOW accounts | | | | | 79 | | | | | | 121 | | | | | | (43) | | | | | | (44) | | | | | | 1 | | |
Interest on money market and savings accounts | | | | | 325 | | | | | | 353 | | | | | | (28) | | | | | | (56) | | | | | | 28 | | |
Interest on time deposits | | | | | 916 | | | | | | 1355 | | | | | | (439) | | | | | | (215) | | | | | | (224) | | |
Interest on other borrowings | | | | | 801 | | | | | | 413 | | | | | | 388 | | | | | | 80 | | | | | | 308 | | |
Interest on subordinated debt | | | | | — | | | | | | 600 | | | | | | (600) | | | | | | — | | | | | | (600) | | |
| | | Years Ended December 31, 2021 vs. December 31, 2020 | | |||||||||||||||||||||||||||
| | | Net Interest Income | | | Increase (Decrease) | | | Changes Due To | | |||||||||||||||||||||
| | | 2021 | | | 2020 | | | Rate | | | Volume | | ||||||||||||||||||
Interest earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, excluding PPP | | | | $ | 50,588 | | | | | $ | 51,805 | | | | | $ | (1,488) | | | | | $ | (5,078) | | | | | $ | 3,590 | | |
PPP loans | | | | | 3,537 | | | | | | 2,154 | | | | | | 1,383 | | | | | | 1,900 | | | | | | (517) | | |
Total loans | | | | | 54,125 | | | | | | 53,959 | | | | | | (105) | | | | | | (3,178) | | | | | | 3,073 | | |
Interest on securities | | | | | 1,975 | | | | | | 1,831 | | | | | | 145 | | | | | | (303) | | | | | | 448 | | |
Interest on deposits with banks | | | | | 354 | | | | | | 524 | | | | | | (170) | | | | | | (456) | | | | | | 286 | | |
Expense from interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on NOW accounts | | | | | 199 | | | | | | 341 | | | | | | (142) | | | | | | (201) | | | | | | 59 | | |
Interest on money market and savings accounts | | | | | 656 | | | | | | 1,501 | | | | | | (845) | | | | | | (1,241) | | | | | | 396 | | |
Interest on time deposits | | | | | 2,437 | | | | | | 4,566 | | | | | | (2,129) | | | | | | (1,340) | | | | | | (789) | | |
Interest on other borrowings | | | | | 1,036 | | | | | | 1,141 | | | | | | (105) | | | | | | (171) | | | | | | 66 | | |
Interest on subordinated debt | | | | | 844 | | | | | | 622 | | | | | | 222 | | | | | | 23 | | | | | | 199 | | |
| | | Three months ended June 30, | | | Six months ended June 30, | | | Year ended December 31, | | |||||||||||||||||||||||||||
(dollars in thousands) | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2021 | | | 2020 | | ||||||||||||||||||
Service charges and fees | | | | $ | 1,482 | | | | | $ | 1,291 | | | | | $ | 2,959 | | | | | $ | 2,574 | | | | | $ | 5,753 | | | | | $ | 5,923 | | |
Interchange and ATM fees | | | | | 1,548 | | | | | | 1,665 | | | | | | 3,001 | | | | | | 3,201 | | | | | | 6,225 | | | | | | 5,774 | | |
Bank owned life insurance income | | | | | 233 | | | | | | 249 | | | | | | 470 | | | | | | 440 | | | | | | 900 | | | | | | 797 | | |
Securities gains, net | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,313 | | |
Gain on sale of loans, net | | | | | 430 | | | | | | 738 | | | | | | 849 | | | | | | 1,644 | | | | | | 3,817 | | | | | | 1,811 | | |
Other | | | | | 632 | | | | | | 664 | | | | | | 1,173 | | | | | | 1,244 | | | | | | 2,274 | | | | | | 2,000 | | |
Total noninterest income | | | | $ | 4,325 | | | | | $ | 4,607 | | | | | $ | 8,452 | | | | | $ | 9,103 | | | | | $ | 18,969 | | | | | $ | 17,618 | | |
| | | Three months ended June 30, | | | Six months ended June 30, | | | Year ended December 31, | | |||||||||||||||||||||||||||
(dollars in thousands) | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2021 | | | 2020 | | ||||||||||||||||||
Salaries and employee benefits | | | | $ | 7,977 | | | | | $ | 6,551 | | | | | $ | 14,318 | | | | | $ | 13,079 | | | | | $ | 26,531 | | | | | $ | 27,525 | | |
Occupancy | | | | | 1,425 | | | | | | 1,443 | | | | | | 2,775 | | | | | | 2,845 | | | | | | 5,424 | | | | | | 5,312 | | |
Communications, data processing and equipment | | | | | 1,730 | | | | | | 1,732 | | | | | | 3,465 | | | | | | 3,504 | | | | | | 7,108 | | | | | | 7,036 | | |
Professional fees | | | | | 309 | | | | | | 466 | | | | | | 581 | | | | | | 887 | | | | | | 1,487 | | | | | | 1,989 | | |
FDIC assessment and other regulatory charges | | | | | 217 | | | | | | 247 | | | | | | 406 | | | | | | 507 | | | | | | 965 | | | | | | 1,003 | | |
Other real estate expenses, including losses on sales and impairments, net | | | | | 6 | | | | | | 165 | | | | | | 13 | | | | | | 172 | | | | | | 292 | | | | | | 1,196 | | |
Advertising and public relations | | | | | 66 | | | | | | 190 | | | | | | 167 | | | | | | 383 | | | | | | 580 | | | | | | 1,011 | | |
Postage, printing and supplies | | | | | 149 | | | | | | 119 | | | | | | 314 | | | | | | 300 | | | | | | 626 | | | | | | 925 | | |
Amortization of intangibles | | | | | 237 | | | | | | 237 | | | | | | 475 | | | | | | 475 | | | | | | 950 | | | | | | 950 | | |
Transaction costs | | | | | 315 | | | | | | 1,612 | | | | | | 919 | | | | | | 1,612 | | | | | | 5,160 | | | | | | — | | |
Other | | | | | 751 | | | | | | 729 | | | | | | 1,492 | | | | | | 1,572 | | | | | | 3,325 | | | | | | 3,972 | | |
Total noninterest expense | | | | $ | 13,182 | | | | | $ | 13,491 | | | | | $ | 24,925 | | | | | $ | 25,336 | | | | | $ | 52,448 | | | | | $ | 50,919 | | |
| | | June 30, 2022 | | | December 31, 2021 | | | December 31, 2020 | | |||||||||||||||||||||||||||
(dollars in thousands) | | | Amortized cost | | | Fair Value | | | Amortized cost | | | Fair Value | | | Amortized cost | | | Fair Value | | ||||||||||||||||||
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
State and political subdivisions | | | | $ | 26,376 | | | | | $ | 22,536 | | | | | $ | 26,438 | | | | | $ | 26,043 | | | | | $ | 25,126 | | | | | $ | 25,629 | | |
Residential mortgage-backed | | | | | 148,954 | | | | | | 137,800 | | | | | | 141,719 | | | | | | 139,886 | | | | | | 86,087 | | | | | | 86,634 | | |
Collateralized mortgage obligations | | | | | 29,760 | | | | | | 27,524 | | | | | | 26,558 | | | | | | 26,061 | | | | | | 49,857 | | | | | | 50,464 | | |
Commercial mortgage-backed | | | | | 2,854 | | | | | | 2,686 | | | | | | 3,275 | | | | | | 3,294 | | | | | | 4,971 | | | | | | 5,102 | | |
Corporate debt securities | | | | | 2,500 | | | | | | 2,436 | | | | | | 2,000 | | | | | | 2,025 | | | | | | 1,500 | | | | | | 1,500 | | |
Total available-for-sale | | | | $ | 210,444 | | | | | $ | 192,982 | | | | | $ | 199,990 | | | | | $ | 197,309 | | | | | $ | 167,541 | | | | | $ | 169,329 | | |
| | | One year or less | | | After one to five years | | | After five to ten years | | | After ten years | | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | | | Amount | | | Average Yield | | | Amount | | | Average Yield | | | Amount | | | Average Yield | | | Amount | | | Average yield | | ||||||||||||||||||||||||
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
State and political subdivisions | | | | $ | — | | | | | | — | | | | | $ | 1,784 | | | | | | 1.42% | | | | | $ | 21,007 | | | | | | 1.71% | | | | | $ | 3,585 | | | | | | 1.96% | | |
Residential mortgage-backed | | | | | — | | | | | | — | | | | | | 2,846 | | | | | | 1.83% | | | | | | 2,303 | | | | | | 0.65% | | | | | | 143,805 | | | | | | 1.94% | | |
Collateralized mortgage obligations | | | | | — | | | | | | — | | | | | | 8,231 | | | | | | 2.21% | | | | | | 4,820 | | | | | | 1.27% | | | | | | 16,709 | | | | | | 2.32% | | |
Commercial mortgage-backed | | | | | 232 | | | | | | 2.32% | | | | | | — | | | | | | — | | | | | | 2,622 | | | | | | 2.03% | | | | | | — | | | | | | — | | |
Corporate debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,500 | | | | | | 5.04% | | | | | | — | | | | | | — | | |
Total available-for-sale | | | | $ | 232 | | | | | | 2.32% | | | | | $ | 12,861 | | | | | | 2.02% | | | | | $ | 33,252 | | | | | | 1.85% | | | | | $ | 164,099 | | | | | | 1.98% | | |
| | | At June 30, 2022 | | | At December 31, 2021 | | | At December 31, 2020 | | |||||||||||||||||||||||||||
(dollars in thousands) | | | Amount | | | % of total loans | | | Amount | | | % of total loans | | | Amount | | | % of total loans | | ||||||||||||||||||
Real estate loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 182,601 | | | | | | 16.41% | | | | | $ | 159,630 | | | | | | 15.10% | | | | | $ | 142,513 | | | | | | 13.31% | | |
Single-family | | | | | 160,335 | | | | | | 14.41% | | | | | | 158,667 | | | | | | 15.01% | | | | | | 171,153 | | | | | | 15.98% | | |
Commercial | | | | | 532,592 | | | | | | 47.85% | | | | | | 512,486 | | | | | | 48.48% | | | | | | 466,571 | | | | | | 43.57% | | |
Commercial loans (not secured by real estate) | | | | | 226,819 | | | | | | 20.38% | | | | | | 214,202 | | | | | | 20.27% | | | | | | 273,968 | | | | | | 25.58% | | |
Consumer loans (not secured by real estate) | | | | | 10,614 | | | | | | 0.95% | | | | | | 12,081 | | | | | | 1.14% | | | | | | 16,677 | | | | | | 1.56% | | |
Total loans | | | | | 1,112,961 | | | | | | | | | | | | 1,057,066 | | | | | | | | | | | | 1,070,882 | | | | | | | | |
Unearned income | | | | | (1,702) | | | | | | | | | | | | (1,741) | | | | | | | | | | | | (2,850) | | | | | | | | |
Total | | | | | 1,111,259 | | | | | | | | | | | | 1,055,325 | | | | | | | | | | | | 1,068,032 | | | | | | | | |
| | | | | | | | | After One Year Through Five Years | | | After Five Years Through 15 Years | | | After 15 Years | | | | | | | | |||||||||||||||||||||||||||
(In thousands) | | | One Year or Less | | | Fixed Rate | | | Floating Rate | | | Fixed Rate | | | Floating Rate | | | Fixed Rate | | | Floating Rate | | | Total | | ||||||||||||||||||||||||
Construction and land development | | | | $ | 82,776 | | | | | $ | 32,135 | | | | | $ | 16,962 | | | | | $ | 22,568 | | | | | $ | 11,719 | | | | | $ | 99 | | | | | $ | 16,342 | | | | | $ | 182,601 | | |
Single-family | | | | | 24,174 | | | | | | 54,297 | | | | | | 12,567 | | | | | | 20,227 | | | | | | 19,572 | | | | | | 6,351 | | | | | | 23,147 | | | | | | 160,335 | | |
Commercial | | | | | 37,530 | | | | | | 180,427 | | | | | | 19,612 | | | | | | 117,346 | | | | | | 86,528 | | | | | | 4,427 | | | | | | 86,722 | | | | | | 532,592 | | |
Commercial loans (not secured by real estate) | | | | | 27,563 | | | | | | 52,047 | | | | | | 123,555 | | | | | | 7,887 | | | | | | 14,048 | | | | | | 869 | | | | | | 850 | | | | | | 226,819 | | |
Consumer loans (not secured by real estate) | | | | | 2,237 | | | | | | 5,841 | | | | | | 883 | | | | | | 848 | | | | | | 804 | | | | | | 1 | | | | | | — | | | | | | 10,614 | | |
Total | | | | $ | 174,280 | | | | | $ | 324,747 | | | | | $ | 173,579 | | | | | $ | 168,876 | | | | | $ | 132,671 | | | | | $ | 11,747 | | | | | $ | 127,061 | | | | | $ | 1,112,961 | | |
| | | As of and for the three months endedJune 30 | | | As of and for the six months ended June 30 | | | As of and for the year ended December 31, | | |||||||||||||||||||||||||||
(dollars in thousands) | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2021 | | | 2020 | | ||||||||||||||||||
Balance at beginning of period | | | | $ | 15,396 | | | | | $ | 15,256 | | | | | $ | 15,228 | | | | | $ | 14,117 | | | | | $ | 14,117 | | | | | $ | 5,946 | | |
Loan charge-offs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 111 | | |
Single-family | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 29 | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | 86 | | | | | | 86 | | | | | | 418 | | |
Commercial loans (not secured by real estate) | | | | | 585 | | | | | | 82 | | | | | | 593 | | | | | | 122 | | | | | | 541 | | | | | | 752 | | |
Consumer loans (not secured by real estate) | | | | | 66 | | | | | | 113 | | | | | | 157 | | | | | | 185 | | | | | | 463 | | | | | | 430 | | |
Total loan charge-offs | | | | | 651 | | | | | | 195 | | | | | | 750 | | | | | | 393 | | | | | | 1,090 | | | | | | 1,740 | | |
Recoveries of loans previously charged-off: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | | 7 | | | | | | — | | | | | | 212 | | | | | | 712 | | | | | | 717 | | | | | | 40 | | |
Single-family | | | | | 2 | | | | | | 7 | | | | | | 5 | | | | | | 233 | | | | | | 321 | | | | | | 51 | | |
Commercial | | | | | 44 | | | | | | 11 | | | | | | 52 | | | | | | 316 | | | | | | 820 | | | | | | 105 | | |
Commercial loans (not secured by real estate) | | | | | 479 | | | | | | 67 | | | | | | 508 | | | | | | 151 | | | | | | 266 | | | | | | 246 | | |
Consumer loans (not secured by real estate) | | | | | 19 | | | | | | 13 | | | | | | 41 | | | | | | 23 | | | | | | 77 | | | | | | 119 | | |
Total loan recoveries | | | | | 551 | | | | | | 98 | | | | | | 818 | | | | | | 1,435 | | | | | | 2,201 | | | | | | 561 | | |
Net (charge-offs) recoveries | | | | | (100) | | | | | | (97) | | | | | | 68 | | | | | | 1,042 | | | | | | 1,111 | | | | | | (1,179) | | |
Provision for loan losses | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,350 | | |
Balance at end of period | | | | $ | 15,296 | | | | | $ | 15,159 | | | | | $ | 15,296 | | | | | $ | 15,159 | | | | | $ | 15,228 | | | | | $ | 14,117 | | |
Allowance for loan losses to total loans | | | | | 1.38% | | | | | | 1.43% | | | | | | 1.38% | | | | | | 1.43% | | | | | | 1.44% | | | | | | 1.32% | | |
Nonaccrual loans to total loans | | | | | 0.19% | | | | | | 0.13% | | | | | | 0.19% | | | | | | 0.13% | | | | | | 0.16% | | | | | | 0.92% | | |
Allowance for loan losses to nonaccrual loans | | | | | 736.1% | | | | | | 1,113.0% | | | | | | 736.1% | | | | | | 1,113.0% | | | | | | 877.7% | | | | | | 143.1% | | |
| | | June 30, | | | June 30, | | ||||||||||||||||||
(dollars in thousands) | | | 2022 | | | % of total average loans per class | | | 2021 | | | % of total average loans per class | | ||||||||||||
Construction and land development | | | | $ | 212 | | | | | | 0.12% | | | | | $ | 712 | | | | | | 0.48% | | |
Single-family | | | | | 5 | | | | | | 0.00% | | | | | | 233 | | | | | | 0.14% | | |
Commercial | | | | | 52 | | | | | | 0.01% | | | | | | 230 | | | | | | 0.05% | | |
Commercial loans (not secured by real estate) | | | | | (85) | | | | | | -0.04% | | | | | | 29 | | | | | | 0.01% | | |
Consumer loans (not secured by real estate) | | | | | (116) | | | | | | -1.04% | | | | | | (162) | | | | | | -1.09% | | |
Total loan charge-offs | | | | $ | 68 | | | | | | 0.01% | | | | | $ | 1,042 | | | | | | 0.10% | | |
| | | December 31, | | | December 31, | | ||||||||||||||||||
(dollars in thousands) | | | 2021 | | | % of total average loans per class | | | 2020 | | | % of total average loans per class | | ||||||||||||
Construction and land development | | | | $ | 717 | | | | | | 0.48% | | | | | $ | (71) | | | | | | -0.05% | | |
Single-family | | | | | 321 | | | | | | 0.20% | | | | | | 22 | | | | | | 0.01% | | |
Commercial | | | | | 734 | | | | | | 0.15% | | | | | | (313) | | | | | | -0.07% | | |
Commercial loans (not secured by real estate) | | | | | (275) | | | | | | -0.11% | | | | | | (506) | | | | | | -0.21% | | |
Consumer loans (not secured by real estate) | | | | | (386) | | | | | | -2.72% | | | | | | (311) | | | | | | -1.80% | | |
Total loan charge-offs | | | | $ | 1,111 | | | | | | -0.10% | | | | | $ | (1,179) | | | | | | -0.12% | | |
| | | At June 30, 2022 | | | At December 31, 2021 | | | At December 31, 2020 | | |||||||||||||||||||||||||||
(dollars in thousands) | | | Amount | | | % of loans in each category to total loans | | | Amount | | | % of loans in each category to total loans | | | Amount | | | % of loans in each category to total loans | | ||||||||||||||||||
Balance at End of Period Applicable to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 2,820 | | | | | | 0.25% | | | | | $ | 2,807 | | | | | | 0.27% | | | | | $ | 2,499 | | | | | | 0.23% | | |
Single-family | | | | | 1,902 | | | | | | 0.17% | | | | | | 1,894 | | | | | | 0.18% | | | | | | 1,981 | | | | | | 0.18% | | |
Commercial | | | | | 6,526 | | | | | | 0.59% | | | | | | 6,497 | | | | | | 0.61% | | | | | | 5,315 | | | | | | 0.50% | | |
Commercial loans (not secured by real estate) | | | | | 3,606 | | | | | | 0.32% | | | | | | 3,590 | | | | | | 0.34% | | | | | | 3,574 | | | | | | 0.33% | | |
Consumer loans (not secured by real estate) | | | | | 302 | | | | | | 0.03% | | | | | | 300 | | | | | | 0.03% | | | | | | 449 | | | | | | 0.04% | | |
Unallocated | | | | | 140 | | | | | | | | | | | | 140 | | | | | | | | | | | | 299 | | | | | | | | |
| | | June 30, 2022 | | | December 31, | | ||||||||||||
(dollars in thousands) | | | 2021 | | | 2020 | | ||||||||||||
Nonperforming assets: | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans: | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 24 | | | | | $ | 27 | | | | | $ | 33 | | |
Single-family | | | | | 471 | | | | | | 363 | | | | | | 1,651 | | |
Commercial | | | | | 354 | | | | | | 277 | | | | | | 7,772 | | |
Commercial loans (not secured by real estate) | | | | | 1,229 | | | | | | 1,059 | | | | | | 406 | | |
Consumer loans (not secured by real estate) | | | | | — | | | | | | 8 | | | | | | 4 | | |
Total nonaccrual loans | | | | $ | 2,078 | | | | | $ | 1,734 | | | | | $ | 9,866 | | |
Loans 90 days past due and accruing | | | | | — | | | | | | 4 | | | | | | — | | |
Total nonperforming loans | | | | | 2,078 | | | | | | 1,738 | | | | | | 9,866 | | |
Other real estate owned | | | | | 857 | | | | | | 857 | | | | | | 2,593 | | |
Total nonperforming assets | | | | $ | 2,935 | | | | | $ | 2,595 | | | | | $ | 12,459 | | |
Troubled debt restructurings: | | | | | | | | | | | | | | | | | | | |
TDRs included in nonperforming loans | | | | | — | | | | | | — | | | | | | 147 | | |
TDRs in compliance with modified terms | | | | | 833 | | | | | | 866 | | | | | | 6,004 | | |
Percentage of nonperforming loans to total loans. | | | | | 0.19% | | | | | | 0.16% | | | | | | 0.92% | | |
Allowance for loan losses as a percentage of nonperforming loans | | | | | 736.1% | | | | | | 875.7% | | | | | | 143.1% | | |
| | | June 30, 2022 | | | December 31, 2021 | | | December 31, 2020 | | |||||||||||||||||||||||||||
(dollars in thousands) | | | Average amount | | | Average rate paid | | | Average amount | | | Average rate paid | | | Average amount | | | Average rate paid | | ||||||||||||||||||
Non-interest bearing demand | | | | $ | 511,711 | | | | | | — | | | | | $ | 477,470 | | | | | | — | | | | | $ | 387,822 | | | | | | — | | |
NOW | | | | | 275,176 | | | | | | 0.06% | | | | | | 268,835 | | | | | | 0.07% | | | | | | 229,354 | | | | | | 0.15% | | |
Money market | | | | | 312,998 | | | | | | 0.20% | | | | | | 294,807 | | | | | | 0.21% | | | | | | 233,110 | | | | | | 0.57% | | |
Savings | | | | | 142,313 | | | | | | 0.02% | | | | | | 127,850 | | | | | | 0.03% | | | | | | 101,478 | | | | | | 0.16% | | |
Time | | | | | 219,916 | | | | | | 0.84% | | | | | | 250,190 | | | | | | 0.97% | | | | | | 302,422 | | | | | | 1.51% | | |
Total deposits | | | | $ | 1,462,114 | | | | | | 0.28% | | | | | $ | 1,419,152 | | | | | | 0.35% | | | | | $ | 1,254,186 | | | | | | 0.74% | | |
(dollars in thousands) | | | June 30, 2022 | | | December 31, 2021 | | ||||||
Three months or less | | | | $ | 3,735 | | | | | $ | 4,688 | | |
Over three through twelve months | | | | | 18,116 | | | | | | 12,848 | | |
Over twelve months through three years | | | | | 27,848 | | | | | | 28.927 | | |
Over three years | | | | | — | | | | | | 4,391 | | |
Total | | | | $ | 49,700 | | | | | $ | 50,854 | | |
(dollars in thousands) | | | June 30, 2022 | | |||
Three months or less | | | | $ | 735 | | |
Over three through twelve months | | | | | 8,616 | | |
Over twelve months through three years | | | | | 10,598 | | |
Over three years | | | | | — | | |
Total | | | | $ | 19,950 | | |
| | | Ending Balance | | | Period End Rate | | | Maximum Month End Balance | | | Period Average | | ||||||||||||||||||
(dollars in thousands) | | | Balance | | | Rate | | ||||||||||||||||||||||||
At or for the six months ended June 30, 2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities sold under agreements to repurchase | | | | $ | 22,266 | | | | | | 0.10% | | | | | $ | 33,212 | | | | | $ | 27,877 | | | | | | 0.17% | | |
Line of credit | | | | | 34,688 | | | | | | 4.54% | | | | | | 34,688 | | | | | | 34,561 | | | | | | 3.44% | | |
Total | | | | $ | 56,954 | | | | | | | | | | | $ | 67,900 | | | | | $ | 62,438 | | | | | | 1.98% | | |
At or for year ended December 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities sold under agreements to repurchase | | | | $ | 23,988 | | | | | | 0.05% | | | | | $ | 27,098 | | | | | $ | 17,571 | | | | | | 0.19% | | |
Line of credit | | | | | 34,188 | | | | | | 3.14% | | | | | | 34,188 | | | | | | 21,239 | | | | | | 3.19% | | |
Total | | | | $ | 58,176 | | | | | | | | | | | $ | 61,286 | | | | | $ | 38,810 | | | | | | 1.83% | | |
| | | Minimum Capital Adequacy with Capital Conservation Buffer, if applicable(1) | | | Well Capitalized Under Prompt Corrective Action Provisions(2) | | | June 30, 2022 | | | December 31, 2021 | | | December 31, 2020 | | |||||||||||||||
Heritage | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common equity tier 1 capital ratio | | | | | 7.00% | | | | | | N/A | | | | | | 9.35% | | | | | | 9.27% | | | | | | 8.57% | | |
Total risk-based capital ratio | | | | | 10.50% | | | | | | N/A | | | | | | 11.26% | | | | | | 11.30% | | | | | | 12.44% | | |
Tier 1 risk-based capital ratio | | | | | 8.50% | | | | | | N/A | | | | | | 10.10% | | | | | | 10.07% | | | | | | 9.44% | | |
Tier 1 leverage ratio | | | | | 4.00% | | | | | | N/A | | | | | | 7.95% | | | | | | 7.80% | | | | | | 7.09% | | |
| | | Minimum Capital Adequacy with Capital Conservation Buffer, if applicable(1) | | | Well Capitalized Under Prompt Corrective Action Provisions(2) | | | June 30, 2022 | | | December 31, 2021 | | | December 31, 2020 | | |||||||||||||||
Heritage Southeast Bank | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common equity tier 1 capital ratio | | | | | 7.00% | | | | | | 6.50% | | | | | | 12.58% | | | | | | 12.67% | | | | | | 11.95% | | |
Total risk-based capital ratio | | | | | 10.50% | | | | | | 10.00% | | | | | | 13.73% | | | | | | 13.90% | | | | | | 13.19% | | |
Tier 1 risk-based capital ratio | | | | | 8.50% | | | | | | 8.00% | | | | | | 12.58% | | | | | | 12.67% | | | | | | 11.95% | | |
Tier 1 leverage ratio | | | | | 4.00% | | | | | | 5.00% | | | | | | 9.89% | | | | | | 9.81% | | | | | | 8.98% | | |
| | | June 30, 2022 | | | December 31, 2021 | | | December 31, 2020 | | |||||||||||||||||||||||||||
(dollars in thousands) | | | Fixed Rate | | | Variable Rate | | | Fixed Rate | | | Variable Rate | | | Fixed Rate | | | Variable Rate | | ||||||||||||||||||
Commitments to extend credit | | | | $ | 99,498 | | | | | $ | 332,614 | | | | | $ | 90,804 | | | | | $ | 313,549 | | | | | $ | 75,712 | | | | | $ | 184,749 | | |
Standby letters of credit | | | | | 5,408 | | | | | | 1,082 | | | | | | 4,293 | | | | | | 993 | | | | | | 4,475 | | | | | | 859 | | |
Total | | | | $ | 104,906 | | | | | $ | 333,696 | | | | | $ | 95,097 | | | | | $ | 314,542 | | | | | $ | 80,187 | | | | | $ | 185,608 | | |
| | | Rights of First Bancshares Shareholders (which will company following the merger) | | | Rights of | | |
Corporate Governance | | | First Bancshares is a Mississippi corporation. The rights of First Bancshares shareholders are governed by the MBCA, the First Bancshares Articles and the First Bancshares Bylaws. | | | Holders of | | |
Authorized Capital Stock | | | First Bancshares’ authorized capital stock consists of 40,000,000 shares of common stock, par value $1.00 per share, and 10,000,000 shares of preferred stock, par value $1.00 per share. The First Bancshares Articles authorize First Bancshares’ board of directors to issue shares of preferred stock in one or more series and to fix the designations, preferences, rights, qualifications, limitations or restrictions of the shares of First Bancshares preferred stock in each series. As of the date of this joint proxy statement/prospectus, there were [ ] shares of First Bancshares common stock outstanding and no | | | The HSBI Articles authorize HSBI’s board of As of the date of this proxy statement/prospectus, | |
| | | Rights of First Bancshares Shareholders (which will company following the merger) | | | Rights of | | |
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HSBI preferred stock outstanding. | | |||||||
Voting Rights | | | Each holder of shares of First Bancshares common stock is entitled to one vote for each share held on all questions submitted to holders of shares of First Bancshares common stock. Election of First Bancshares directors requires the approval by a plurality of the votes cast by the holders of shares entitled to vote in the election of directors at a shareholder meeting at which a quorum is present. Other matters (other than the election of directors or a matter for which the affirmative vote of the holders of a specified portion of the shares entitled to vote is required by Mississippi law or the First Bancshares Articles) require the votes cast within a voting group (defined as all classes or series of the First Bancshares’ shares entitled to vote generally on a matter shall for that purpose be considered a single voting group) in favor of the action to exceed the votes cast opposing the action, where the vote on the matter occurred at a shareholder meeting at which a quorum is present. | | | The HSBI Bylaws provide that each outstanding share of Unless a greater affirmative number is required by |
No shareholder has the right of cumulative voting in the election of directors. | | |||||||
Size of the Board of Directors | | | The First Bancshares Bylaws provide for a board of directors consisting of between nine and 25 directors as fixed from time to time by First Bancshares’ board. Currently, there are | | | The HSBI Articles provided for an initial board of directors of six members, but that the authorized number of directors The HSBI Bylaws provide that the board of | |
| | | Rights of First Bancshares Shareholders (which will be the the following the merger) | | | Rights of | | |
| | | | | | There are currently nine directors serving on the HSBI board of directors. | | |
Independent Directors | | | A majority of the First Bancshares board of directors must be comprised of independent directors as defined in the listing rules of NASDAQ. | | | | ||
Term of Directors and Classified Board | | | First Bancshares Articles provide for the election of directors to three classes, as nearly equal in number as possible, to hold office for staggered terms. Directors elected to each class shall hold office until the expiration of the three-year term applicable to the class of directorship to which the respective director is elected and until their successors are elected and qualified, or they shall hold office until death or retirement or until resignation or removal in the manner provided in the First Bancshares Bylaws. | | | | ||
Removal of Directors | | | The First Bancshares Bylaws provide that a director may only be removed for cause at a meeting of the shareholders for which notice of the removal action has been given. | | | |
Filling Vacancies of Directors | | | Under First Bancshares Bylaws, if during the year a vacancy in the board of directors should occur, the remaining directors on First Bancshares’ board may appoint a First Bancshares shareholder to serve until the next annual meeting of shareholders; provided however, that if the vacant director was elected by a particular voting group, then only the remaining directors elected by the voting group, or if none, the voting group, may elect the new director. | | | |
| | | Rights of First Bancshares Shareholders (which will be the the following the merger) | | | Rights of | | |
Amendments to Articles | | | The MBCA provides that a corporation’s articles of incorporation may be amended by the board of directors without shareholder approval: (1) if the corporation has only one class of shares outstanding, (a) to change each issued and unissued authorized share of the class into a greater number of whole shares of that class or (b) increase the number of authorized shares of the class to the extent necessary to permit the issuance of shares as a share dividend; or (2) to accomplish certain ministerial tasks. | | |
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Bylaw Amendments | | | Under the MBCA, the board of directors has the power to amend or repeal the bylaws of a Mississippi corporation such as First Bancshares, unless such power is expressly reserved for the shareholders. Article 10 of the First Bancshares Bylaws provides that the bylaws may be amended, altered, or repealed by the board of directors, except with regard to the provisions establishing the number of directors and process for removal of directors, which may only be amended by the affirmative vote of holders of outstanding shares entitled to more than 80% of the votes entitled to be cast on the alteration, amendment, or repeal. | | | |
| | | Rights of First Bancshares Shareholders (which will be the the combined company following the merger) | | | Rights of HSBI Shareholders | | |
Merger, Consolidations or Sales of Substantially All Assets; Anti-Takeover Provisions | | | Under the MBCA, a merger, share exchange, sale, lease, exchange or other disposal of all or substantially all of a Mississippi corporation’s assets, or its dissolution, is approved if the votes cast in favor of the transaction exceed the votes cast against the transaction at a meeting of the shareholders of the corporation where a quorum is present and acting throughout, except approval of a merger by shareholders of the surviving corporation is not required in the instances specified in the MBCA. The First Bancshares Articles do include a control share acquisition provision requiring any person who plans to acquire a control block of stock (generally defined as 10%) to obtain approval by the majority vote of disinterested shareholders or the affirmative vote of 75% of eligible members of the board of directors in order to vote the control shares. If a control share is made without first obtaining this approval, all stock beneficially owned by the acquiring person in excess of 10% will be considered “excess stock” and will not be entitled to vote. |
Any person who proposes to make or has made a control share acquisition may deliver a statement to First Bancshares describing the person’s background and the control share acquisition and requesting a special meeting of shareholders of First Bancshares to decide whether to grant voting rights to the shares acquired in the control share acquisition. The acquiring person must pay the expenses of this meeting. If no request is made, the voting rights to be accorded the shares acquired in the control share acquisition | | | Under the GBCC, a plan of merger or share exchange must be adopts a plan of merger or share exchange which must be approved by the shareholders as required by the GBCC. For a plan of merger or share exchange to be approved, the board of directors of the corporation shall transmit to the shareholders a recommendation that the shareholders approve the plan, unless the board of directors makes a determination that, because of conflicts of interest or other special circumstances, it should refrain from making such a recommendation or recommend that the shareholders reject or vote against the plan. Unless otherwise provided in the GBCC or the articles or bylaws of a corporation, a plan of merger or share exchange to be authorized must be approved by (1) a majority of all the votes entitled to be cast on the plan by all shares entitled to vote on the plan, voting as a single voting group; and (2) a majority of all the votes entitled to be cast by holders of the shares of each voting group entitled to vote separately on the plan as a voting group by the articles of incorporation. The HSBI Articles provide that HSBI elects to be governed by the provisions of the GBCC pertaining to business combinations with interested shareholders and fair price requirements, or any successor law or regulations. | |
| | | Rights of First Bancshares Shareholders (which will be the rights of shareholders of the combined company following the merger) | | | Rights of HSBI Shareholders | | |
| | | shall be presented to the next special or annual meeting of the shareholders. If the acquiring person does not deliver his or her statement to First Bancshares, it may elect to repurchase the acquiring person’s shares at fair market value. Control shares acquired in a control share acquisition are not subject to redemption after an acquiring person’s statement has been filed unless the shares are not accorded full voting rights by the shareholders. | | | | | |
Annual Meetings of the Shareholders | | | First Bancshares holds an annual meeting of shareholders, at a time determined by the board of directors, to elect directors and to transact any business that properly may come before the meeting. The annual meeting may be combined with any other meeting of shareholders, whether annual or special. | | |
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Special Meetings of the Shareholders | | | Under the First Bancshares Bylaws, special meetings of the shareholders, for any purpose or purposes, may be called by the Chairman of the Board, the Chief Executive Officer, or the board of directors, or within 75 days of a written request of shareholders holding in the aggregate 10% or more of the total voting power entitled to vote on an issue. Such a request must state the purpose or purposes of the proposed special meeting. | | | | ||
Advance Notice Provisions for Shareholder Nominations and Shareholder Business | | | The First Bancshares Bylaws set forth advance notice procedures for the nomination, other than by | | | None. | |
| | | Rights of First Bancshares Shareholders (which will be the rights of shareholders of the combined company following the merger) | | | Rights of HSBI Shareholders | |
Proposals at Annual Meetings | | | First Bancshares’ board of directors or one of its committees, of candidates for election as directors and for other shareholder proposals. The bylaws provide that, for any shareholder proposal to be presented in connection with an annual meeting, the shareholder must give timely written notice thereof to First Bancshares’ Secretary in compliance with the advance notice and eligibility requirements contained in First Bancshares Bylaws. To be timely, a shareholder’s notice must be delivered to or mailed to and received by the Secretary at First Bancshares’ corporate headquarters on or before the later to occur of (i) 60 days prior to the annual meeting or (ii) ten days after notice of the meeting is provided to the shareholders pursuant to the First Bancshares Bylaws. The notice must contain the detailed information specified in the First Bancshares Bylaws about the shareholder making the nomination or proposal and, as applicable, each nominee or the proposed business. Nominations that are not made in accordance with the foregoing provisions may be ruled out of order by the presiding officer or the chairman of the meeting. | | | |
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Notice of Shareholder Meetings | | | First Bancshares must give written notice of the date, time, and place of each annual and special shareholders’ meeting no fewer than ten days nor more than 60 days before the meeting date to each shareholder of record entitled to vote at the meeting. The notice of an annual meeting need not state the purpose of the meeting unless otherwise required by the bylaws. The notice of a special | | | The HSBI Bylaws provide that written notice of each shareholder meeting stating the place, day, and hour of the meeting and the purpose or purposes for which the meeting is called shall be given by or at the discretion of the secretary, the chief executive officer or the officer or person calling the meeting, not less than 10 days nor more than 60 days before the meeting. | |
| | | Rights of First Bancshares Shareholders (which will be the rights of shareholders of the combined company following the merger) | | | Rights of HSBI Shareholders | | |
| | | meeting, however, must state the purpose for which the meeting is called. | | | | ||
Liability and Indemnification of Directors and Officers | | | The First Bancshares Bylaws require First Bancshares to indemnify its directors (referred to in this subsection as the indemnitees) against liability and reasonable expenses (including attorneys’ fees) incurred in connection with any proceeding an indemnitee is made a party to if he or she met the required standard of conduct. To meet the standard of conduct, the indemnitee must have conducted himself or herself in good faith, and he or she must have reasonably believed that any conduct was in First Bancshares’ best interests, or in any criminal proceeding, the indemnitee had no reasonable cause to believe his or her conduct was unlawful. Unless otherwise ordered by a court, First Bancshares is not obligated to indemnify an indemnitee in connection with (1) any appropriation, in violation of his duties, of any business opportunity of First Bancshares, (b) acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (c) under Section 79-4-8.33 of the MBCA, or (d) any transaction from which the director derived an improper personal benefit. |
First Bancshares is allowed to extend its indemnification rights to any other officer, employee, or agent of the company upon a resolution of the board of directors to that effect. An indemnitee may apply to the court conducting the proceeding, or to another court, for indemnification or advance for expenses. The court shall (1) order | | | The HSBI Articles require HSBI to indemnify any person who was or is threatened to be made a party to a pending, threatened or completed legal action, by reason of the fact that such person was a director, officer, employee or agent of the corporation or was serving at the request of the corporation, for all expenses, judgements, fines, and amounts paid in settlement actually and reasonably incurred by such person in connection with such legal action to the full extent permissible under Georgia law. Reasonable expenses incurred by an officer, director, employee or agent of the corporation in defending any legal action may be paid by HSBI in advance of the final disposition of such action if authorized by the board of directors or as otherwise required by the GBCC and to the fullest extent permitted by the GBCC upon receipt of an undertaking by or on behalf of such person to repay such amount if it shall ultimately be determined that the person is not entitled to be indemnified by the corporation. The indemnification and advancement of expenses provided for in the HSBI Articles are not exclusive of any other rights to which the person seeking indemnification or advancement of expenses may be entitled under any insurance or other agreement, or pursuant to a vote of the stockholders or directors otherwise, in actions in the person’s official capacity and in actions in another capacity while holding an office. HSBI has the power to purchase and maintain insurance | |
| | | Rights of First Bancshares Shareholders (which will be the rights of shareholders of the combined company following the merger) | | | Rights of HSBI Shareholders | |
| | | indemnification if the court determines that the indemnitee is entitled to mandatory indemnification under applicable provisions of the MBCA or (2) order indemnification or advance for expenses if the court determines that (a) the indemnitee is entitled to indemnification or advance for expenses under the First Bancshares Bylaws or (b) in view of all relevant circumstances it is fair and reasonable to indemnify or advance expenses to such indemnitee even if he or she has not met the standard of conduct described above. First Bancshares must indemnify an indemnitee who is wholly successful, on the merits or otherwise, in the defense of any proceeding to which the indemnitee was a party against reasonable expenses incurred in the proceeding. First Bancshares generally must advance funds to pay for or reimburse the reasonable expenses incurred by an indemnitee who is a party to a proceeding. |
| | The HSBI Articles further provided that if the GBCC is amended to permit further indemnification of the directors, officers, employees, and agents of HSBI, then HSBI will indemnify such persons to the fullest extent permitted by the GBCC, as amended. | | |||||
Limitation of Director Liability | | | The First Bancshares Articles provide that no director of First Bancshares will be personally liable to First Bancshares or its shareholders for monetary damages for breach of fiduciary duty as a director, unless he or she has (i) appropriated any business opportunity that rightly belonged to First Bancshares, (ii) acted or omitted to act not in good faith or which involves the intentional misconduct or a knowing violation of law, (iii) provided under Section 79-4-8.33 of the MBCA, or (iv) derived an improper personal benefit for any transaction. Under Miss. Code Ann. Section 81-5-105(1), the duties of a director or officer of a bank or | | | The HSBI Articles provide that the directors of HSBI discharge their duties in a manner in which the directors believe in good faith to be in the best interests of the corporation and with the care of ordinary prudent persons in like positions would exercise under similar circumstances. The HSBI Articles provide that no director of the corporation be personally liable to the corporation or its stockholders for monetary damages for breach of his or her duties as a director, including the duty of care under the GBCC, except for no liability is eliminated for any appropriation of business opportunities in violation of a director’s duties, intentional | |
| | | Rights of First Bancshares Shareholders (which will be the rights of shareholders of the combined company following the merger) | | | Rights of HSBI Shareholders | |
| | | bank holding company to the bank or bank holding company and its shareholders are to discharge the director’s or officer’s duties in good faith and with the diligence, care, judgment and skill as provided in subsection (2). Under Miss. Code Ann. Section 81-5-105(2), a director or officer of a bank or bank holding company cannot be held personally liable for money damages to a corporation or its shareholder unless the officer or director acts in a grossly negligent manner or engages in conduct that demonstrates a greater disregard of the duty of care than gross negligence. In addition, Miss. Code Ann. Section 81-5-105(4) provides that the provisions of Miss. Code Ann. Section 81-5-105 are the sole and exclusive law governing the relation and liability of directors and officers to their bank or bank holding company, or their successor, or to the shareholders thereof, or to any other person or entity. |
If the MBCA were applicable in defining the fiduciary duties of officers and directors, Miss. Code Ann. Section 79-4-8.31 provides that a director is not liable to a corporation or its shareholders for any decision to take or not take action, or any failure to take any action, as a director, unless the party asserting liability proves certain matters. The party must show that (1) the director was a party to or had a direct or indirect financial interest in a transaction, which transaction was not otherwise approved in accordance with the MBCA, and (2) the challenged conduct consisted or was a result of (a) action not in good faith; (b) a decision which the director did not reasonably believe to be in the best interests of the | | | misconduct or knowing violations of law, for the types of liabilities described in Section 14-2-832 of the GBCC, or for transactions where the director derived an improper benefit. The HSBI Articles further provide that HSBI will not indemnify a director, officer, employee, or agent for any liability incurred in a legal action or proceeding initiated by or participated in as an intervenor or amicus curiae by the person seeking indemnification unless such initiation or participation in the legal action or proceeding is authorized by the affirmative vote of a majority of the directors then in office. | |
| | | Rights of First Bancshares Shareholders (which will be the rights of shareholders of the combined company following the merger) | | | Rights of HSBI Shareholders | |
| | | corporation or as to which the director was not appropriately informed; (c) a lack of objectivity, due to familial, financial or business relationships, or a lack of independence, due to the director’s domination or control by another interested person, where such relationship, domination or control could reasonably be expected to have affected the director’s judgment respecting the challenged conduct in a manner adverse to the corporation, and after a reasonable expectation to such effect has been established, the director cannot demonstrate that he reasonably believed the challenged conduct to be in the best interests of the corporation; (d) the director’s sustained failure to stay informed about the corporation’s business and affairs or otherwise discharge his oversight functions; or (e) receipt of a financial benefit to which the director was not entitled or any other breach of the director’s duty to deal fairly with the corporation and its shareholders that is actionable under law. | | |
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Dividends | | | The MBCA prohibits a Mississippi corporation from making any distributions to its shareholders, including the payment of cash dividends that would render the corporation unable to pay its debts as they become due in the usual course of business. Also prohibited is any distribution that would result in the corporation’s total assets being less than the sum of its total liabilities plus the amount that would be needed, if it were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of shareholders whose preferential rights are superior to those receiving the distribution. | | | Under the | |
| | | Rights of First Bancshares Shareholders (which will company following the merger) | | | Rights of | | |
Appraisal/Dissenters’ Rights | | | Under Section 79-4-13.02 of the MBCA, appraisal rights are available only in connection with specific transactions. However, appraisal rights are not available for shareholders if the shares are (i) listed on the New York Stock Exchange or designated as a national market system security on an interdealer quotation system by the National Association of Securities Dealers, Inc.; or (ii) not so listed or designated, but has at least 2,000 shareholders and the outstanding shares of such class or series has a market value of at least $20,000,000 (exclusive of the value of such shares held by its subsidiaries, senior executives, directors and beneficial shareholders owning more than 10% of such shares). | | | Pursuant to Article 13 of the GBCC, a holder of record of HSBI stock who objects to the proposed merger and who fully complies with all of the provisions of Article 13 of the GBCC (but not otherwise) shall be entitled to demand and receive payment of “fair value” for all (but generally not less than all) of his or her shares of HSBI stock if the proposed merger is consummated, as determined by a Georgia court of law. Under the | |
Disqualified Individual | | | Estimated Total Section 280G Value of the Change in Control Payment | | |||
Brad Serff | | | | $ | 821,102 | | |
Disqualified Individual | | | Estimated Total Section 280G Value of the Vesting and Payout of the SERP | | |||
Brad Serff | | | | $ | 473,005 | | |
Disqualified Individual | | | Estimated Total Section 280G Value of the Payments | | | Safe Harbor Amount | | | Estimated Excess Parachute Payments | | | Estimated Value of the Waived Amounts Submitted for Shareholder Approval under the 280G Proposal | | ||||||||||||
Brad Serff | | | | $ | 1,294,107 | | | | | $ | 1,208,155 | | | | | $ | 85,951 | | | | | $ | 85,951 | | |
| | | Common Stock | | |||||||||
| | | Amount and Nature of Beneficial Ownership(b) | | | Percent of Class | | ||||||
Directors(a) | | | | | | | | | | | | | |
Jeff Arnold | | | | | 52,798 | | | | | | * | | |
Roy Hall | | | | | 10,156 | | | | | | * | | |
Ken Lehman | | | | | 3,069,241 | | | | | | 43.7% | | |
John Mansour | | | | | 17,121(c) | | | | | | * | | |
Leonard Moreland | | | | | 34,771(d) | | | | | | * | | |
John Presley | | | | | 510 | | | | | | * | | |
David Rupp | | | | | 4,400 | | | | | | * | | |
Brad Serff | | | | | 25,981(e) | | | | | | * | | |
Executive Officers | | | | | | | | | | | | | |
Paul Hoerig | | | | | 9,460(f) | | | | | | * | | |
Phil Resch | | | | | 33,985 | | | | | | * | | |
Kathy Zovlonsky | | | | | 10,803(g) | | | | | | * | | |
Directors and Officers (as a group, 11 persons) | | | | | 3,269,226 | | | | | | 46.4% | | |
Name and Address of holders 5% or more of the outstanding shares | | | | | | | | | | | | | |
Brent Scarbrough(h) | | | | | 404,045 | | | | | | 5.8% | | |
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THE FIRST BANCSHARES, INC. By: /s/ M. Ray (Hoppy) Cole, Jr. Name: M. Ray (Hoppy) Cole, Jr. Title: Vice Chairman, President and Chief Executive Officer HERITAGE SOUTHEAST BANCORPORATION, INC. By: /s/ Leonard A. Moreland Name: Leonard A. Moreland Title: Chief Executive Officer | ||||||||
THE FIRST BANCSHARES, INC.
Name: M. Ray (Hoppy) Cole, Jr. Title: Vice Chairman, President and Chief Executive Officer SHAREHOLDER
Total Number of Shares of HSBI Stock Subject to this Agreement: |
By: | |
Printed Name: | |
By: | |||||||||||
|
By: | |
| If to FBMS: | | | The First Bancshares, Inc. | |
| | | | 6480 U.S. Highway 98 West | |
| | | | Hattiesburg, MS 39402-8417 Attn: M. Ray Cole, Jr., President & CEO E-mail: hcole@thefirstbank.com | |
| If to Director: | | | The address of Director’s principal residence as it appears in HSBI’s records as of the date hereof, as subsequently modified by Director’s provision of notice regarding the same to FBMS. | |
THE FIRST BANCSHARES, INC. By: Name: M. Ray (Hoppy) Cole, Jr. Title: Vice Chairman, President and Chief Executive Officer DIRECTOR Printed Name: | ||||||||
THE FIRST BANCSHARES, INC. By: Name: M. Ray (Hoppy) Cole, Jr. Title: Vice Chairman, President and Chief Executive Officer | ||||||||
| | | 2021 | | | 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 3,199,261 | | | | | $ | 3,740,303 | | |
Interest-bearing deposits in banks | | | | | 95,127,847 | | | | | | 70,705,713 | | |
Restricted cash | | | | | 1,910,551 | | | | | | 5,450,551 | | |
Cash and cash equivalents | | | | | 100,237,659 | | | | | | 79,896,567 | | |
Securities available for sale, at fair value | | | | | 6,591,744 | | | | | | 14,655,575 | | |
Restricted equity securities, at cost | | | | | 1,846,100 | | | | | | 2,406,100 | | |
Mortgage loans held for sale | | | | | 3,498,542 | | | | | | 6,485,691 | | |
Loans | | | | | 434,464,837 | | | | | | 405,891,590 | | |
Less allowance for loan losses | | | | | 5,446,595 | | | | | | 4,699,306 | | |
Loans, net | | | | | 429,018,242 | | | | | | 401,192,284 | | |
Premises and equipment, net | | | | | 12,182,457 | | | | | | 13,808,049 | | |
Foreclosed assets | | | | | 10,978,912 | | | | | | 16,764,868 | | |
Accrued interest receivable | | | | | 1,218,060 | | | | | | 1,480,789 | | |
Goodwill | | | | | 414,427 | | | | | | 414,427 | | |
Deferred tax assets, net | | | | | 26,542,790 | | | | | | 27,323,182 | | |
Other assets | | | | | 5,047,568 | | | | | | 9,325,435 | | |
| | | | $ | 597,576,501 | | | | | $ | 573,752,967 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | | $ | 122,908,458 | | | | | $ | 94,415,940 | | |
Interest-bearing demand deposits | | | | | 206,020,710 | | | | | | 157,157,342 | | |
Savings deposits | | | | | 27,884,743 | | | | | | 27,270,813 | | |
Other time deposits | | | | | 118,555,057 | | | | | | 152,490,987 | | |
Total deposits | | | | | 475,368,968 | | | | | | 431,335,082 | | |
Other borrowings | | | | | — | | | | | | 14,661,623 | | |
Federal Home Loan Bank advances | | | | | 35,000,000 | | | | | | 40,000,000 | | |
Accrued interest payable | | | | | 181,379 | | | | | | 298,485 | | |
Other liabilities | | | | | 5,597,043 | | | | | | 8,607,455 | | |
Total liabilities | | | | | 516,147,390 | | | | | | 494,902,645 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $1 par value;15,000,000 authorized; Class A, non- cumulative convertible perpetual preferred 5,405,604 shares issued and outstanding | | | | | 5,405,604 | | | | | | 5,405,604 | | |
Common stock, $1 par value;30,000,000 shares authorized; 14,732,382 shares issued and outstanding | | | | | 14,732,382 | | | | | | 14,732,382 | | |
Additional paid-in capital | | | | | 120,987,926 | | | | | | 120,496,523 | | |
Accumulated deficit | | | | | (59,831,403) | | | | | | (62,123,961) | | |
Accumulated other comprehensive income | | | | | 134,602 | | | | | | 339,774 | | |
Total stockholders’ equity | | | | | 81,429,111 | | | | | | 78,850,322 | | |
| | | | $ | 597,576,501 | | | | | $ | 573,752,967 | | |
| | | 2021 | | | 2020 | | ||||||
Interest income: | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 18,578,502 | | | | | $ | 17,950,272 | | |
Investment securities | | | | | 308,759 | | | | | | 815,018 | | |
Interest-bearing deposits in banks | | | | | 127,505 | | | | | | 133,742 | | |
Total interest income | | | | | 19,014,766 | | | | | | 18,899,032 | | |
Interest expense: | | | | | | | | | | | | | |
Deposits | | | | | 2,124,950 | | | | | | 3,702,473 | | |
Other | | | | | 323,901 | | | | | | 386,468 | | |
Total interest expense | | | | | 2,448,851 | | | | | | 4,088,941 | | |
Net interest income | | | | | 16,565,915 | | | | | | 14,810,091 | | |
Provision for loan losses | | | | | 371,995 | | | | | | 1,729,151 | | |
Net interest income after provision for loan losses | | | | | 16,193,920 | | | | | | 13,080,940 | | |
Noninterest income: | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 422,558 | | | | | | 379,896 | | |
Other service charges, commissions, and fees | | | | | 600,097 | | | | | | 472,359 | | |
Mortgage banking income | | | | | 4,126,679 | | | | | | 5,883,950 | | |
Net gain on sales of securities available for sale | | | | | — | | | | | | 280 | | |
Net gain on sales of foreclosed assets | | | | | 703,286 | | | | | | 940,447 | | |
Rental income from foreclosed assets | | | | | 126,439 | | | | | | 116,663 | | |
Other income | | | | | 559,760 | | | | | | 1,456,963 | | |
Total noninterest income | | | | | 6,538,819 | | | | | | 9,250,558 | | |
Noninterest expense: | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 12,344,172 | | | | | | 12,707,669 | | |
Occupancy and equipment expenses | | | | | 1,712,010 | | | | | | 2,283,368 | | |
Legal and professional expenses | | | | | 563,358 | | | | | | 1,049,302 | | |
Data processing expenses | | | | | 1,741,477 | | | | | | 1,684,517 | | |
Marketing and advertising expenses | | | | | 345,884 | | | | | | 367,468 | | |
Regulatory assessment expenses | | | | | 450,706 | | | | | | 437,633 | | |
Valuation adjustment on foreclosed assets | | | | | 110,016 | | | | | | 1,777,301 | | |
Foreclosed asset expenses | | | | | 364,969 | | | | | | 427,848 | | |
Other expenses | | | | | 1,957,524 | | | | | | 2,688,096 | | |
Total noninterest expense | | | | | 19,590,116 | | | | | | 23,423,202 | | |
Income (loss) before income tax (benefits) | | | | | 3,142,623 | | | | | | (1,091,704) | | |
Income tax expense (benefits) | | | | | 850,065 | | | | | | (107,213) | | |
Net income (loss) | | | | $ | 2,292,558 | | | | | $ | (984,491) | | |
| | | 2021 | | | 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 29,689 | | | | | | 29,092 | | |
Interest-bearing deposits with banks | | | | | 261,513 | | | | | | 189,533 | | |
Cash and cash equivalents | | | | | 291,202 | | | | | | 218,625 | | |
Securities available for sale | | | | | 197,309 | | | | | | 169,329 | | |
Other investments | | | | | 786 | | | | | | 1,203 | | |
Loans, net of unearned income: | | | | | | | | | | | | | |
Originated | | | | | 901,883 | | | | | | 801,050 | | |
Acquired | | | | | 153,442 | | | | | | 266,982 | | |
Allowance for loan losses | | | | | (15,228) | | | | | | (14,117) | | |
Loans, net | | | | | 1,040,097 | | | | | | 1,053,915 | | |
Premises and equipment, net | | | | | 35,136 | | | | | | 37,165 | | |
Cash surrender value of bank owned life insurance | | | | | 34,634 | | | | | | 28,734 | | |
Other real estate owned | | | | | 857 | | | | | | 2,593 | | |
Accrued interest receivable | | | | | 3,240 | | | | | | 3,844 | | |
Goodwill | | | | | 28,275 | | | | | | 28,275 | | |
Core deposit intangible, net | | | | | 7,283 | | | | | | 8,232 | | |
Deferred tax asset, net | | | | | 12,093 | | | | | | 14,900 | | |
Other assets | | | | | 3,653 | | | | | | 4,375 | | |
Total assets | | | | $ | 1,654,565 | | | | | | 1,571,190 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | |
Noninterest-bearing | | | | $ | 485,754 | | | | | | 415,476 | | |
Interest-bearing | | | | | 941,684 | | | | | | 947,080 | | |
Total deposits | | | | | 1,427,438 | | | | | | 1,362,556 | | |
Securities sold under agreements to repurchase | | | | | 23,988 | | | | | | 13,187 | | |
Lines of credit | | | | | 34,188 | | | | | | 14,688 | | |
Subordinated notes | | | | | — | | | | | | 19,646 | | |
Junior subordinated debentures | | | | | 9,403 | | | | | | 9,250 | | |
Accrued expenses and other liabilities | | | | | 5,588 | | | | | | 9,030 | | |
Total liabilities | | | | | 1,500,605 | | | | | | 1,428,357 | | |
Commitments | | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.10 par value, 50,000,000 shares authorized; 7,026,210 and 7,023,344 shares issued and outstanding | | | | | 703 | | | | | | 702 | | |
Additional paid in capital | | | | | 117,444 | | | | | | 116,825 | | |
Retained earnings | | | | | 37,797 | | | | | | 23,983 | | |
Accumulated other comprehensive income (loss) | | | | | (1,984) | | | | | | 1,323 | | |
Total shareholders’ equity | | | | | 153,960 | | | | | | 142,833 | | |
Total liabilities and shareholders’ equity | | | | $ | 1,654,565 | | | | | | 1,571,190 | | |
| | | 2021 | | | 2020 | | ||||||
Net income (loss) | | | | $ | 2,292,558 | | | | | $ | (984,491) | | |
Other comprehensive income (loss): Unrealized holding gains on securities available for sale arising during the period, net of tax (benefit) of $(69,673) and $116,402, respectively | | | | | (205,172) | | | | | | 342,778 | | |
Reclassification adjustment for gains realized in net income, net of tax of $— and $71, respectively | | | | | — | | | | | | (209) | | |
Other comprehensive income (loss) | | | | | (205,172) | | | | | | 342,569 | | |
Comprehensive income (loss) | | | | $ | 2,087,386 | | | | | $ | (641,922) | | |
| | | 2021 | | | 2020 | | ||||||
Interest and dividend revenue: | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 54,125 | | | | | | 53,959 | | |
Investment securities | | | | | 1,975 | | | | | | 1,831 | | |
Federal funds sold, deposits in banks and other investments | | | | | 354 | | | | | | 524 | | |
Total interest and dividend revenue | | | | | 56,454 | | | | | | 56,314 | | |
Interest expense: | | | | | | | | | | | | | |
Deposits | | | | | 3,292 | | | | | | 6,408 | | |
Federal funds purchased and repurchase agreements | | | | | 33 | | | | | | 106 | | |
Federal Home Loan Bank advances | | | | | — | | | | | | 38 | | |
Line of credit | | | | | 678 | | | | | | 612 | | |
Junior subordinated debentures | | | | | 325 | | | | | | 385 | | |
Subordinated debt | | | | | 844 | | | | | | 622 | | |
Total interest expense | | | | | 5,172 | | | | | | 8,171 | | |
Net interest revenue | | | | | 51,282 | | | | | | 48,143 | | |
Provision for loan losses | | | | | — | | | | | | 9,350 | | |
Net interest revenue after provision for loan losses | | | | | 51,282 | | | | | | 38,793 | | |
Noninterest revenue: | | | | | | | | | | | | | �� |
Service charges and fees | | | | | 5,753 | | | | | | 5,923 | | |
Interchange and ATM fees | | | | | 6,225 | | | | | | 5,774 | | |
Bank owned life insurance income | | | | | 900 | | | | | | 797 | | |
Securities gains, net | | | | | — | | | | | | 1,313 | | |
Gain on sale of loans | | | | | 3,817 | | | | | | 1,811 | | |
Other | | | | | 2,274 | | | | | | 2,000 | | |
Total noninterest revenue | | | | | 18,969 | | | | | | 17,618 | | |
Operating expenses: | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 26,531 | | | | | | 27,525 | | |
Occupancy | | | | | 5,424 | | | | | | 5,312 | | |
Communications, data processing and equipment | | | | | 7,108 | | | | | | 7,036 | | |
Professional fees | | | | | 1,487 | | | | | | 1,989 | | |
FDIC assessment and other regulatory charges | | | | | 965 | | | | | | 1,003 | | |
Other real estate expenses, including losses on sales and impairments, net | | | | | 292 | | | | | | 1,196 | | |
Advertising and public relations | | | | | 580 | | | | | | 1,011 | | |
Postage, printing and supplies | | | | | 626 | | | | | | 925 | | |
Amortization of intangibles | | | | | 950 | | | | | | 950 | | |
Professional and other expenses related to pending transaction | | | | | 5,160 | | | | | | — | | |
Other | | | | | 3,325 | | | | | | 3,972 | | |
Total other operating expenses | | | | | 52,448 | | | | | | 50,919 | | |
Income before income tax expense | | | | | 17,803 | | | | | | 5,492 | | |
Income tax expense | | | | | 3,989 | | | | | | 1,050 | | |
Net income | | | | $ | 13,814 | | | | | | 4,442 | | |
Weighted-average number of shares outstanding: | | | | | | | | | | | | | |
Basic | | | | | 6,970,955 | | | | | | 6,911,275 | | |
Diluted | | | | | 7,209,886 | | | | | | 7,126,457 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic | | | | $ | 1.98 | | | | | | 0.64 | | |
Diluted | | | | $ | 1.92 | | | | | | 0.62 | | |
| | | Preferred Stock Class A | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||||||||||||||
| | | Shares | | | Par Value | | | Shares | | | Par Value | | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | | | | | 5,405,604 | | | | | $ | 27,028,020 | | | | | | 14,732,382 | | | | | $ | 73,661,910 | | | | | $ | 39,507,839 | | | | | $ | (61,139,470) | | | | | $ | (2,795) | | | | | $ | 79,055,504 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (984,491) | | | | | | — | | | | | | (984,491) | | |
Change in par value from $5 to $1 per share for common and preferred stock under share exchange agreement | | | | | — | | | | | | (21,622,416) | | | | | | — | | | | | | (58,929,528) | | | | | | 80,551,944 | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 436,740 | | | | | | — | | | | | | — | | | | | | 436,740 | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 342,569 | | | | | | 342,569 | | |
Balance, December 31, 2020 | | | | | 5,405,604 | | | | | | 5,405,604 | | | | | | 14,732,382 | | | | | | 14,732,382 | | | | | | 120,496,523 | | | | | | (62,123,961) | | | | | | 339,774 | | | | | | 78,850,322 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,292,558 | | | | | | — | | | | | | 2,292,558 | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 491,403 | | | | | | — | | | | | | — | | | | | | 491,403 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (205,172) | | | | | | (205,172) | | |
Balance, December 31, 2021 | | | | | 5,405,604 | | | | | $ | 5,405,604 | | | | | | 14,732,382 | | | | | $ | 14,732,382 | | | | | $ | 120,987,926 | | | | | $ | (59,831,403) | | | | | $ | 134,602 | | | | | $ | 81,429,111 | | |
| | | 2021 | | | 2020 | | ||||||
Net income | | | | $ | 13,814 | | | | | | 4,442 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized gains (losses) on securities available for sale | | | | | (4,469) | | | | | | 3,835 | | |
Reclassification adjustment for gains on sales of securities available for sale | | | | | — | | | | | | (1,313) | | |
Total other comprehensive income (loss) before income taxes | | | | | (4,469) | | | | | | 2,522 | | |
Income tax expense (benefit) related to other comprehensive income: | | | | | | | | | | | | | |
Unrealized (gains) losses on securities available for sale | | | | | 1,162 | | | | | | (997) | | |
Reclassification adjustment for gains on sales of securities available for sale | | | | | — | | | | | | 341 | | |
Total income tax expense (benefit) related to other comprehensive (income) loss | | | | | 1,162 | | | | | | (656) | | |
Total other comprehensive income (loss), net of tax | | | | | (3,307) | | | | | | 1,866 | | |
Comprehensive income | | | | $ | 10,507 | | | | | | 6,308 | | |
OPERATING ACTIVITIES | | | 2021 | | | 2020 | | ||||||
Net income (loss) | | | | $ | 2,292,558 | | | | | $ | (984,491) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation, amortization, and accretion | | | | | (872,250) | | | | | | (323,371) | | |
Provision for loan losses | | | | | 371,995 | | | | | | 1,729,151 | | |
Provision for deferred taxes | | | | | 850,065 | | | | | | (107,213) | | |
Valuation adjustment on foreclosed assets | | | | | 110,016 | | | | | | 1,777,301 | | |
Net gain on sales of foreclosed assets | | | | | (703,286) | | | | | | (940,447) | | |
Net gain on sales of securities available for sale | | | | | — | | | | | | (280) | | |
Net gain on sales of premises and equipment | | | | | (6,154) | | | | | | (68,972) | | |
Stock-based compensation | | | | | 491,403 | | | | | | 436,740 | | |
Write-down of premises and equipment | | | | | — | | | | | | 14,040 | | |
Originations of mortgage loans held for sale | | | | | (103,594,854) | | | | | | (180,479,373) | | |
Proceeds from sales of mortgage loans held for sale | | | | | 110,600,034 | | | | | | 189,883,073 | | |
Gain on sales of mortgage loans held for sale | | | | | (4,018,031) | | | | | | (5,561,492) | | |
Changes in: | | | | | | | | | | | | | |
Accrued interest receivable | | | | | 262,729 | | | | | | 83,784 | | |
Accrued interest payable | | | | | (117,106) | | | | | | (152,343) | | |
Other assets | | | | | 1,610,768 | | | | | | 330,945 | | |
Other liabilities | | | | | (343,312) | | | | | | 536,965 | | |
Net cash provided by operating activities | | | | | 6,934,575 | | | | | | 6,174,017 | | |
INVESTING ACTIVITIES | | | | | | | | | | | | | |
Proceeds from sales of securities available for sale | | | | | — | | | | | | 14,406,461 | | |
Proceeds from maturities and principal reductions of securities available for sale | | | | | 7,788,986 | | | | | | 30,883,676 | | |
Decrease (increase) in restricted equity securities | | | | | 560,000 | | | | | | (221,600) | | |
Net increase in loans | | | | | (26,769,841) | | | | | | (80,316,991) | | |
Proceeds from sales of foreclosed assets | | | | | 6,479,824 | | | | | | 5,543,768 | | |
Proceeds from sales of premises and equipment | | | | | 1,074,625 | | | | | | 467,085 | | |
Purchases of premises and equipment | | | | | (99,340) | | | | | | (2,668,107) | | |
Net cash used in investing activities | | | | | (10,965,746) | | | | | | (31,905,708) | | |
FINANCING ACTIVITIES | | | | | | | | | | | | | |
Net increase in deposits | | | | | 44,033,886 | | | | | | 40,723,690 | | |
Net (decrease) increase in other borrowings | | | | | (14,661,623) | | | | | | 14,656,635 | | |
Federal Home Loan Bank advances | | | | | — | | | | | | 5,000,000 | | |
Federal Home Loan Bank repayments | | | | | (5,000,000) | | | | | | — | | |
Net cash provided by financing activities | | | | | 24,372,263 | | | | | | 60,380,325 | | |
Net change in cash and cash equivalents | | | | | 20,341,092 | | | | | | 34,648,634 | | |
Cash and cash equivalents at beginning of year | | | | | 79,896,567 | | | | | | 45,247,933 | | |
Cash and cash equivalents at end of year | | | | $ | 100,237,659 | | | | | $ | 79,896,567 | | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid | | | | $ | 475,773 | | | | | $ | 4,241,284 | | |
NONCASH TRANSACTIONS | | | | | | | | | | | | | |
Loans transferred to foreclosed assets | | | | $ | 100,598 | | | | | $ | 675,417 | | |
Internally financed sales of foreclosed assets | | | | $ | 237,295 | | | | | $ | 142,500 | | |
Premises transferred to foreclosed assets | | | | $ | — | | | | | $ | 2,288,230 | | |
| | | Common Shares | | | Common Stock | | | Additional Paid in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||
Balance, December 31, 2019 | | | | | 7,029,033 | | | | | $ | 703 | | | | | | 116,234 | | | | | | 19,541 | | | | | | (543) | | | | | | 135,935 | | |
Stock-based compensation | | | | | (15,349) | | | | | | (2) | | | | | | 592 | | | | | | — | | | | | | — | | | | | | 590 | | |
SERP distribution | | | | | 9,660 | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 4,442 | | | | | | — | | | | | | 4,442 | | |
Change in accumulated other comprehensive income (loss), net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,866 | | | | | | 1,866 | | |
Balance, December 31, 2020 | | | | | 7,023,344 | | | | | $ | 702 | | | | | | 116,825 | | | | | | 23,983 | | | | | | 1,323 | | | | | | 142,833 | | |
Stock-based compensation | | | | | (6,794) | | | | | | | | | | | | 620 | | | | | | — | | | | | | — | | | | | | 620 | | |
SERP distribution | | | | | 9,660 | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 13,814 | | | | | | — | | | | | | 13,814 | | |
Change in accumulated other comprehensive income (loss), net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,307) | | | | | | (3,307) | | |
Balance, December 31, 2021 | | | | | 7,026,210 | | | | | $ | 703 | | | | | | 117,444 | | | | | | 37,797 | | | | | | (1,984) | | | | | | 153,960 | | |
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 13,814 | | | | | | 4,442 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation, amortization and accretion | | | | | 4,952 | | | | | | 6,904 | | |
Provision for loan losses | | | | | — | | | | | | 9,350 | | |
Deferred income tax expense | | | | | 3,957 | | | | | | 1,042 | | |
Loss on sale and disposal of premises and equipment | | | | | 9 | | | | | | 11 | | |
Gain on sales of securities available for sale | | | | | — | | | | | | (1,313) | | |
Loss (gain) on sale of other real estate owned | | | | | 202 | | | | | | (177) | | |
Writedowns of other real estate owned | | | | | 51 | | | | | | 1,111 | | |
Stock-based compensation | | | | | 620 | | | | | | 590 | | |
Increase in cash surrender value of bank owned life insurance | | | | | (900) | | | | | | (797) | | |
Change in assets and liabilities: | | | | | | | | | | | | | |
Other assets and accrued interest receivable | | | | | 1,339 | | | | | | (2,476) | | |
Accrued expenses and other liabilities | | | | | (3,442) | | | | | | (962) | | |
Net cash provided by operating activities | | | | | 20,602 | | | | | | 17,725 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Proceeds from maturities and calls of securities available for sale | | | | | 55,395 | | | | | | 49,759 | | |
Purchases of securities available for sale | | | | | (89,916) | | | | | | (167,567) | | |
Proceeds from sales of securities available for sale | | | | | — | | | | | | 76,087 | | |
Purchases of other investments | | | | | — | | | | | | (129) | | |
Proceeds from sale of other investments | | | | | 417 | | | | | | 248 | | |
Net change in loans | | | | | 15,143 | | | | | | (160,149) | | |
Proceeds from sales of other real estate owned | | | | | 1,983 | | | | | | 6,746 | | |
Purchase of bank owned life insurance policies | | | | | (5,000) | | | | | | (1,135) | | |
Purchases of premises and equipment | | | | | (1,469) | | | | | | (5,032) | | |
Proceeds from sale of premises and equipment | | | | | 239 | | | | | | 25 | | |
Net cash used in investing activities | | | | | (23,208) | | | | | | (201,147) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Net change in deposits | | | | | 64,882 | | | | | | 208,085 | | |
Net change in securities sold under agreements to repurchase | | | | | 10,801 | | | | | | 892 | | |
Repayments of FHLB advances | | | | | — | | | | | | (5,167) | | |
Proceeds from line of credit | | | | | 19,500 | | | | | | 15,600 | | |
Repayment of line of credit | | | | | — | | | | | | (10,000) | | |
Proceeds from issuance of subordinated notes | | | | | — | | | | | | 20,000 | | |
Payments of subordinated notes issuance costs | | | | | — | | | | | | (373) | | |
Redemption of subordinated notes | | | | | (20,000) | | | | | | — | | |
Net cash provided by financing activities | | | | | 75,183 | | | | | | 229,037 | | |
Net change in cash and cash equivalents | | | | $ | 72,577 | | | | | | 45,615 | | |
Cash and cash equivalents at beginning of year | | | | | 218,625 | | | | | | 173,010 | | |
Cash and cash equivalents at end of year | | | | $ | 291,202 | | | | | | 218,625 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Cash paid during the year for interest | | | | $ | 5,725 | | | | | | 8,717 | | |
Noncash investing and financing activities: | | | | | | | | | | | | | |
Transfer of loans to other real estate owned | | | | $ | — | | | | | | 1,377 | | |
Transfer of other real estate owned to premises and equipment | | | | $ | — | | | | | | 276 | | |
Transfer of premises and equipment to other real estate owned | | | | $ | 500 | | | | | | — | | |
Financed sales of other real estate owned | | | | $ | — | | | | | | 121 | | |
SERP Distribution | | | | $ | 1 | | | | | | 1 | | |
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
December 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal securities | | | | $ | 179,986 | | | | | $ | 554 | | | | | $ | — | | | | | $ | 180,540 | | |
Mortgage-backed securities – GSE residential | | | | | 6,231,447 | | | | | | 184,569 | | | | | | (4,812) | | | | | | 6,411,204 | | |
| | | | $ | 6,411,433 | | | | | $ | 185,123 | | | | | $ | (4,812) | | | | | $ | 6,591,744 | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal securities | | | | $ | 339,919 | | | | | $ | 1,060 | | | | | $ | — | | | | | $ | 340,979 | | |
Mortgage-backed securities – GSE residential | | | | | 13,860,500 | | | | | | 457,478 | | | | | | (3,382) | | | | | | 14,314,596 | | |
| | | | $ | 14,200,419 | | | | | $ | 458,538 | | | | | $ | (3,382) | | | | | $ | 14,655,575 | | |
| | | 2021 | | | 2020 | | ||||||
Net income available to common shareholders | | | | $ | 13,814 | | | | | | 4,442 | | |
Weighted average number of common shares outstanding | | | | | 6,970,955 | | | | | | 6,911,275 | | |
Effect of dilutive options, warrants, and SERP shares | | | | | 238,931 | | | | | | 215,182 | | |
Weighted average number of common shares outstanding used to calculate diluted earnings per common share | | | | | 7,209,886 | | | | | | 7,126,457 | | |
| | | Amortized Cost | | | Fair Value | | ||||||
Due in one year or less | | | | $ | 179,986 | | | | | $ | 180,540 | | |
Mortgage-backed securities | | | | | 6,231,447 | | | | | | 6,411,204 | | |
| | | | $ | 6,411,433 | | | | | $ | 6,591,744 | | |
| | | As Recorded by HBI | | | As Recorded by PB | | | Fair Value Adjustments | | | | | | | | | As Recorded by Company | | ||||||||||||
Cash and cash equivalents | | | | $ | 78,057 | | | | | | 18,460 | | | | | | — | | | | | | | | | | | | 96,517 | | |
Investment securities | | | | | 73,334 | | | | | | — | | | | | | — | | | | | | | | | | | | 73,334 | | |
Other investments | | | | | 532 | | | | | | 368 | | | | | | — | | | | | | | | | | | | 900 | | |
Loans, net | | | | | 395,177 | | | | | | 60,047 | | | | | | (6,181) | | | | | | a | | | | | | 449,043 | | |
Premises and equipment | | | | | 16,774 | | | | | | 2,469 | | | | | | (58) | | | | | | b | | | | | | 19,185 | | |
Cash surrender value of life insurance | | | | | 13,263 | | | | | | 2,525 | | | | | | — | | | | | | | | | | | | 15,788 | | |
Other real estate owned | | | | | 7,749 | | | | | | 6,300 | | | | | | (4,702) | | | | | | c | | | | | | 9,347 | | |
Core deposit intangible | | | | | — | | | | | | — | | | | | | 9,498 | | | | | | d | | | | | | 9,498 | | |
Deferred tax asset | | | | | 12,061 | | | | | | 3,835 | | | | | | (1,626) | | | | | | e | | | | | | 14,270 | | |
Other assets | | | | | 2,718 | | | | | | 395 | | | | | | — | | | | | | | | | | | | 3,113 | | |
Total assets | | | | $ | 599,665 | | | | | | 94,399 | | | | | | (3,069) | | | | | | | | | | | | 690,995 | | |
| | | As Recorded by HBI | | | As Recorded by PB | | | Fair Value Adjustments | | | | | | | | | As Recorded by Company | | ||||||||||||
Interest-bearing deposits | | | | | 400,359 | | | | | | 57,604 | | | | | | 63 | | | | | | f | | | | | | 458,026 | | |
Total deposits | | | | | 535,306 | | | | | | 74,612 | | | | | | 63 | | | | | | | | | | | | 609,981 | | |
Federal Home Loan Bank advances | | | | | — | | | | | | 4,500 | | | | | | — | | | | | | | | | | | | 4,500 | | |
Junior subordinated debentures | | | | | 10,310 | | | | | | — | | | | | | (1,265) | | | | | | g | | | | | | 9,045 | | |
Other liabilities | | | | | 5,570 | | | | | | 1,349 | | | | | | — | | | | | | | | | | | | 6,919 | | |
Total liabilities | | | | | 551,186 | | | | | | 80,461 | | | | | | (1,202) | | | | | | | | | | | | 630,445 | | |
Net identifiable assets acquired over liabilities assumed | | | | | 48,479 | | | | | | 13,938 | | | | | | (1,867) | | | | | | | | | | | | 60,550 | | |
Goodwill | | | | | — | | | | | | — | | | | | | 28,275 | | | | | | | | | | | | 28,275 | | |
Net assets acquired over liabilities assumed | | | | $ | 48,479 | | | | | | 13,938 | | | | | | 26,408 | | | | | | | | | | | | 88,825 | | |
Consideration: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares of common stock issued | | | | | 3,573,627 | | | | | | 500,382 | | | | | | 4,074,009 | | | | | | | | | | | | | | |
Estimated value per share of the Company’s stock | | | | $ | 21.80 | | | | | | 21.80 | | | | | | 21.80 | | | | | | | | | | | | | | |
Fair value of Company stock issued | | | | | 77,905 | | | | | | 10,908 | | | | | | 88,813 | | | | | | | | | | | | | | |
Cash paid for shares | | | | | 10 | | | | | | 2 | | | | | | 12 | | | | | | | | | | | | | | |
Fair value of total consideration transferred | | | | $ | 77,915 | | | | | | 10,910 | | | | | | 88,825 | | | | | | | | | | | | | | |
|
| | | For the Year Ended December 31, 2019 | | |||
Net interest income | | | | $ | 46,307 | | |
Net earnings | | | | | 8,950 | | |
Diluted earnings per common share | | | | | 1.23 | | |
As of December 31, 2021: | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
State and political subdivisions | | | | $ | 26,438 | | | | | | 48 | | | | | | (443) | | | | | | 26,043 | | |
Residential mortgage-backed securities | | | | | 141,719 | | | | | | 262 | | | | | | (2,095) | | | | | | 139,886 | | |
Collateralized mortgage obligations | | | | | 26,558 | | | | | | 53 | | | | | | (550) | | | | | | 26,061 | | |
Commercial mortgage-backed securities | | | | | 3,275 | | | | | | 19 | | | | | | — | | | | | | 3,294 | | |
Corporate debt securities | | | | | 2,000 | | | | | | 28 | | | | | | (3) | | | | | | 2,025 | | |
| | | | $ | 199,990 | | | | | | 410 | | | | | | (3,091) | | | | | | 197,309 | | |
As of December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | |
State and political subdivisions | | | | | 25,126 | | | | | | 566 | | | | | | (63) | | | | | | 25,629 | | |
Residential mortgage-backed securities | | | | | 86,087 | | | | | | 701 | | | | | | (154) | | | | | | 86,634 | | |
Collateralized mortgage obligations | | | | | 49,857 | | | | | | 617 | | | | | | (10) | | | | | | 50,464 | | |
Commercial mortgage-backed securities | | | | | 4,971 | | | | | | 131 | | | | | | — | | | | | | 5,102 | | |
Corporate debt securities | | | | | 1,500 | | | | | | — | | | | | | — | | | | | | 1,500 | | |
| | | | $ | 167,541 | | | | | | 2,015 | | | | | | (227) | | | | | | 169,329 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Federal Home Loan Bank stock | | | | $ | 1,599,500 | | | | | $ | 2,159,500 | | |
First National Bankers Bank stock | | | | | 246,600 | | | | | | 246,600 | | |
| | | | $ | 1,846,100 | | | | | $ | 2,406,100 | | |
| | | Less Than Twelve Months | | | Over Twelve Months | | | Totals | | |||||||||||||||||||||||||||
| | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||||||||
December 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage-backed securities – GSE residential | | | | $ | — | | | | | $ | — | | | | | $ | (4,812) | | | | | $ | 121,677 | | | | | $ | (4,812) | | | | | $ | 121,677 | | |
| | | | $ | — | | | | | $ | — | | | | | $ | (4,812) | | | | | $ | 121,677 | | | | | $ | (4,812) | | | | | $ | 121,677 | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage-backed securities – GSE residential | | | | $ | (1,153) | | | | | $ | 566,390 | | | | | $ | (2,229) | | | | | $ | 157,819 | | | | | $ | (3,382) | | | | | $ | 724,209 | | |
| | | | $ | (1,153) | | | | | $ | 566,390 | | | | | $ | (2,229) | | | | | $ | 157,819 | | | | | $ | (3,382) | | | | | $ | 724,209 | | |
| | | Less than 12 Months | | | More than 12 Months | | | Total | | |||||||||||||||||||||||||||
December 31, 2021: | | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | ||||||||||||||||||
State and political subdivisions | | | | $ | 12,247 | | | | | | 202 | | | | | | 5,654 | | | | | | 241 | | | | | | 17,901 | | | | | | 443 | | |
Residential mortgage-backed securities | | | | | 100,380 | | | | | | 1,682 | | | | | | 20,947 | | | | | | 413 | | | | | | 121,327 | | | | | | 2,095 | | |
Collateralized mortgage obligations | | | | | 16,873 | | | | | | 344 | | | | | | 3,341 | | | | | | 206 | | | | | | 20,214 | | | | | | 550 | | |
Corporate Bonds | | | | | 496 | | | | | | 3 | | | | | | — | | | | | | — | | | | | | 496 | | | | | | 3 | | |
| | | | $ | 129,996 | | | | | | 2,231 | | | | | | 29,942 | | | | | | 860 | | | | | | 159,938 | | | | | | 3,091 | | |
| | | Less than 12 Months | | | More than 12 Months | | | Total | | |||||||||||||||||||||||||||
December 31, 2020: | | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | ||||||||||||||||||
State and political subdivisions | | | | $ | 6,863 | | | | | | 63 | | | | | | — | | | | | | — | | | | | | 6,863 | | | | | | 63 | | |
Residential mortgage-backed securities | | | | | 48,643 | | | | | | 154 | | | | | | — | | | | | | — | | | | | | 48,643 | | | | | | 154 | | |
Collateralized mortgage obligations | | | | | 6,280 | | | | | | 10 | | | | | | — | | | | | | — | | | | | | 6,280 | | | | | | 10 | | |
| | | | $ | 61,786 | | | | | | 227 | | | | | | — | | | | | | — | | | | | | 61,786 | | | | | | 227 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Real estate mortgages: | | | | | | | | | | | | | |
Commercial | | | | $ | 212,846,488 | | | | | $ | 195,876,199 | | |
Construction and land development | | | | | 51,884,358 | | | | | | 51,651,552 | | |
1 – 4 family mortgages | | | | | 68,076,120 | | | | | | 70,605,796 | | |
Other | | | | | 1,774,179 | | | | | | 3,257,745 | | |
Commercial, financial, and agricultural | | | | | 97,270,853 | | | | | | 83,811,651 | | |
Consumer and other | | | | | 3,193,310 | | | | | | 1,634,003 | | |
| | | | | 435,045,308 | | | | | | 406,836,946 | | |
Deferred loan fees | | | | | (580,471) | | | | | | (945,356) | | |
Allowance for loan losses | | | | | (5,446,595) | | | | | | (4,699,306) | | |
Loans, net | | | | $ | 429,018,242 | | | | | $ | 401,192,284 | | |
| | | Amortized Cost | | | Fair Value | | ||||||
State and political subdivisions, commercial mortgage-backed securities, and corporate debt securities: | | | | | | | | | | | | | |
1 to 5 years | | | | $ | 1,047 | | | | | | 1,051 | | |
5 to 10 years | | | | | 17,308 | | | | | | 17,156 | | |
More than 10 | | | | | 13,358 | | | | | | 13,153 | | |
Mortgage-backed securities | | | | | 168,277 | | | | | | 165,947 | | |
| | | | $ | 199,990 | | | | | | 197,309 | | |
| | | 2021 | | | 2020 | | ||||||
Real estate loans: | | | | | | | | | | | | | |
Construction and land development | | | | $ | 146,365 | | | | | | 113,965 | | |
Single-family residential | | | | | 124,222 | | | | | | 106,970 | | |
Commercial | | | | | 413,598 | | | | | | 306,167 | | |
Multifamily | | | | | 5,271 | | | | | | 12,729 | | |
Total real estate loans | | | | | 689,456 | | | | | | 539,831 | | |
Commercial loans (not secured by real estate) | | | | | 203,914 | | | | | | 250,812 | | |
Consumer loans (not secured by real estate) | | | | | 10,254 | | | | | | 13,257 | | |
Gross loans | | | | | 903,624 | | | | | | 803,900 | | |
Unearned income | | | | | (1,741) | | | | | | (2,850) | | |
Loans, net of unearned income | | | | $ | 901,883 | | | | | | 801,050 | | |
December 31, 2021: | | | Loans 30 – 89 Days Past Due | | | Loans 90 or More Days Past Due | | | Total Past Due Loans | | | Total Current Loans | | | Total Loans | | | Accruing Loans 90 or More Days Past Due | | ||||||||||||||||||
Construction and land development | | | | $ | 225 | | | | | | — | | | | | | 225 | | | | | | 146,140 | | | | | | 146,365 | | | | | | — | | |
Single-family residential | | | | | 20 | | | | | | 25 | | | | | | 45 | | | | | | 124,177 | | | | | | 124,222 | | | | | | — | | |
Commercial | | | | | 102 | | | | | | 108 | | | | | | 210 | | | | | | 413,388 | | | | | | 413,598 | | | | | | — | | |
Multifamily | | | | | — | | | | | | — | | | | | | — | | | | | | 5,271 | | | | | | 5,271 | | | | | | — | | |
Commercial loans (not secured by real estate) | | | | | 641 | | | | | | 64 | | | | | | 705 | | | | | | 203,209 | | | | | | 203,914 | | | | | | — | | |
Consumer loans (not secured by real estate) | | | | | 10 | | | | | | — | | | | | | 10 | | | | | | 10,244 | | | | | | 10,254 | | | | | | — | | |
Total | | | | $ | 998 | | | | | | 197 | | | | | | 1,195 | | | | | | 902,429 | | | | | | 903,624 | | | | | | — | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 53 | | | | | | — | | | | | | 53 | | | | | | 113,912 | | | | | | 113,965 | | | | | | — | | |
Single-family residential | | | | | 167 | | | | | | 29 | | | | | | 196 | | | | | | 106,774 | | | | | | 106,970 | | | | | | — | | |
Commercial | | | | | 240 | | | | | | 166 | | | | | | 406 | | | | | | 305,761 | | | | | | 306,167 | | | | | | — | | |
Multifamily | | | | | — | | | | | | — | | | | | | — | | | | | | 12,729 | | | | | | 12,729 | | | | | | — | | |
Commercial loans (not secured by real estate) | | | | | 1,261 | | | | | | 57 | | | | | | 1,318 | | | | | | 249,494 | | | | | | 250,812 | | | | | | — | | |
Consumer loans (not secured by real estate) | | | | | 23 | | | | | | — | | | | | | 23 | | | | | | 13,234 | | | | | | 13,257 | | | | | | — | | |
Total | | | | $ | 1,744 | | | | | | 252 | | | | | | 1,996 | | | | | | 801,904 | | | | | | 803,900 | | | | | | — | | |
| | | 2021 | | | 2020 | | ||||||
Single-family residential | | | | | 25 | | | | | | 943 | | |
Commercial | | | | | 108 | | | | | | 3,475 | | |
Commercial loans (not secured by real estate) | | | | | 828 | | | | | | 115 | | |
Consumer loans (not secured by real estate) | | | | | — | | | | | | 2 | | |
Total | | | | $ | 961 | | | | | | 4,535 | | |
December 31, 2021: | | | Unpaid Contractual Principal Balance | | | Recorded Investment with no Allowance | | | Recorded Investment with Allowance | | | Recorded Investment in Impaired Loans | | | Related Allowance | | | Average Outstanding Impaired Loans | | ||||||||||||||||||
Construction and land development | | | | $ | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Single-family residential | | | | | 25 | | | | | | 25 | | | | | | — | | | | | | — | | | | | | — | | | | | | 554 | | |
Commercial | | | | | 974 | | | | | | 974 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,627 | | |
Commercial (not secured by real estate) | | | | | 829 | | | | | | 142 | | | | | | 687 | | | | | | 687 | | | | | | 320 | | | | | | 472 | | |
| | | | $ | 1,828 | | | | | | 1,141 | | | | | | 687 | | | | | | 687 | | | | | | 320 | | | | | | 5,653 | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 434 | | |
Single-family residential | | | | | 906 | | | | | | 906 | | | | | | — | | | | | | 906 | | | | | | — | | | | | | 1,315 | | |
Commercial | | | | | 8,819 | | | | | | 8,019 | | | | | | — | | | | | | 8,019 | | | | | | — | | | | | | 10,206 | | |
Commercial loans (not secured by real estate) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 96 | | |
| | | | $ | 9,725 | | | | | | 8,925 | | | | | | — | | | | | | 8,925 | | | | | | — | | | | | | 12,051 | | |
| | | Real Estate | | | Commercial | | | Consumer and Other | | | Unallocated | | | Total | | |||||||||||||||
December 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 4,151,334 | | | | | $ | 352,441 | | | | | $ | 14,646 | | | | | $ | 180,885 | | | | | $ | 4,699,306 | | |
Charge-offs | | | | | (48,739) | | | | | | (27,554) | | | | | | — | | | | | | — | | | | | | (76,293) | | |
Recoveries | | | | | 341,127 | | | | | | 108,411 | | | | | | 2,049 | | | | | | — | | | | | | 451,587 | | |
Provision (recovery) | | | | | (547,173) | | | | | | 634,910 | | | | | | (989) | | | | | | 285,247 | | | | | | 371,995 | | |
Ending balance | | | | $ | 3,896,549 | | | | | $ | 1,068,208 | | | | | $ | 15,706 | | | | | $ | 466,132 | | | | | $ | 5,446,595 | | |
Ending balance – individually evaluated for impairment | | | | $ | 12,384 | | | | | $ | 3,592 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,976 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 3,884,165 | | | | | $ | 1,064,616 | | | | | $ | 15,706 | | | | | $ | 466,132 | | | | | $ | 5,430,619 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | | | $ | 334,581,145 | | | | | $ | 97,270,853 | | | | | $ | 3,193,310 | | | | | $ | — | | | | | $ | 435,045,308 | | |
Ending balance – individually evaluated for impairment | | | | $ | 2,315,494 | | | | | $ | 620,315 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,935,809 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 332,265,651 | | | | | $ | 96,650,538 | | | | | $ | 3,193,310 | | | | | $ | — | | | | | $ | 432,109,499 | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 2,582,286 | | | | | $ | 138,445 | | | | | $ | 7,256 | | | | | $ | 98,241 | | | | | $ | 2,826,228 | | |
Charge-offs | | | | | — | | | | | | (52) | | | | | | — | | | | | | — | | | | | | (52) | | |
Recoveries | | | | | 114,028 | | | | | | 24,371 | | | | | | 5,580 | | | | | | — | | | | | | 143,979 | | |
Provision | | | | | 1,455,020 | | | | | | 189,677 | | | | | | 1,810 | | | | | | 82,644 | | | | | | 1,729,151 | | |
Ending balance | | | | $ | 4,151,334 | | | | | $ | 352,441 | | | | | $ | 14,646 | | | | | $ | 180,885 | | | | | $ | 4,699,306 | | |
Ending balance – individually evaluated for impairment | | | | $ | 7,566 | | | | | $ | 15,000 | | | | | $ | 3,848 | | | | | $ | — | | | | | $ | 26,414 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 4,143,768 | | | | | $ | 337,441 | | | | | $ | 10,798 | | | | | $ | 180,885 | | | | | $ | 4,672,892 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | | | $ | 321,391,292 | | | | | $ | 83,811,651 | | | | | $ | 1,634,003 | | | | | $ | — | | | | | $ | 406,836,946 | | |
Ending balance – individually evaluated for impairment | | | | $ | 3,540,116 | | | | | $ | 673,422 | | | | | $ | 25,956 | | | | | $ | — | | | | | $ | 4,239,494 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 317,851,176 | | | | | $ | 83,138,229 | | | | | $ | 1,608,047 | | | | | $ | — | | | | | $ | 402,597,452 | | |
Risk Grade | | | Pass | | | Special Mention | | | Substandard | | | Doubtful – Loss | | | Total | | |||||||||||||||
December 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 145,061 | | | | | | 1,304 | | | | | | — | | | | | | — | | | | | | 146,365 | | |
Single-family residential | | | | | 122,588 | | | | | | 1,556 | | | | | | 78 | | | | | | — | | | | | | 124,222 | | |
Commercial | | | | | 409,587 | | | | | | 3,471 | | | | | | 540 | | | | | | — | | | | | | 413,598 | | |
Multifamily | | | | | 5,271 | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,271 | | |
Commercial (not secured by real estate) | | | | | 201,798 | | | | | | 1,096 | | | | | | 1,020 | | | | | | — | | | | | | 203,914 | | |
Consumer (not secured by real estate) | | | | | 10,252 | | | | | | 2 | | | | | | — | | | | | | — | | | | | | 10,254 | | |
| | | | $ | 894,557 | | | | | | 7,429 | | | | | | 1,638 | | | | | | — | | | | | | 903,624 | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 113,731 | | | | | | 234 | | | | | | — | | | | | | — | | | | | | 113,965 | | |
Single-family residential | | | | | 103,828 | | | | | | 1,976 | | | | | | 1,166 | | | | | | — | | | | | | 106,970 | | |
Commercial | | | | | 293,336 | | | | | | 8,807 | | | | | | 4,024 | | | | | | — | | | | | | 306,167 | | |
Multifamily | | | | | 12,729 | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,729 | | |
Commercial (not secured by real estate) | | | | | 249,636 | | | | | | 1,046 | | | | | | 130 | | | | | | — | | | | | | 250,812 | | |
Consumer (not secured by real estate) | | | | | 13,244 | | | | | | 11 | | | | | | 2 | | | | | | — | | | | | | 13,257 | | |
| | | | $ | 786,504 | | | | | | 12,074 | | | | | | 5,322 | | | | | | — | | | | | | 803,900 | | |
December 31, 2021: | | | Number of Contracts | | | Pre- Modification Outstanding Recorded Investment | | | Post- Modification Outstanding Recorded Investment | | | Troubled Debt Restructurings that have Subsequently Defaulted | | ||||||||||||||||||
| Number of Contracts | | | Recorded Investment | | ||||||||||||||||||||||||||
Commercial | | | | | 2 | | | | | | 1,339 | | | | | | 866 | | | | | | — | | | | | | — | | |
| | | | | 2 | | | | | $ | 1,339 | | | | | | 866 | | | | | | — | | | | | $ | — | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Single-family residential | | | | | 3 | | | | | $ | 327 | | | | | | 287 | | | | | | 2 | | | | | $ | 147 | | |
Commercial | | | | | 4 | | | | | | 5,819 | | | | | | 4,804 | | | | | | — | | | | | | — | | |
| | | | | 7 | | | | | $ | 6,146 | | | | | | 5,091 | | | | | | 2 | | | | | $ | 147 | | |
| | | 2021 | | | 2020 | | ||||||
Real estate loans: | | | | | | | | | | | | | |
Construction and land development | | | | $ | 13,265 | | | | | | 28,548 | | |
Single-family residential | | | | | 34,444 | | | | | | 64,182 | | |
Commercial | | | | | 92,296 | | | | | | 146,233 | | |
Multifamily | | | | | 1,321 | | | | | | 1,442 | | |
Total real estate loans | | | | | 141,326 | | | | | | 240,405 | | |
Commercial loans (not secured by real estate) | | | | | 10,288 | | | | | | 23,156 | | |
Consumer loans (not secured by real estate) | | | | | 1,828 | | | | | | 3,421 | | |
Total acquired loans | | | | $ | 153,442 | | | | | | 266,982 | | |
| | | December 31, 2021 | | |||||||||||||||||||||||||||||||||||||||
| | | Real Estate | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
Risk Grade | | | Commercial | | | Construction and Land Development | | | 1 – 4 Family Mortgages | | | Other | | | Commercial, Financial, and Agricultural | | | Consumer and Other | | | Total | | |||||||||||||||||||||
01 | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,974,875 | | | | | $ | 1,607,466 | | | | | $ | 3,582,341 | | |
02 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,906,034 | | | | | | 7,921 | | | | | | 5,913,955 | | |
03 | | | | | 20,163,398 | | | | | | 600,000 | | | | | | 1,544,974 | | | | | | — | | | | | | 13,997,671 | | | | | | 108,457 | | | | | | 36,414,500 | | |
04 | | | | | 156,190,209 | | | | | | 37,818,098 | | | | | | 41,891,016 | | | | | | 1,774,179 | | | | | | 64,995,813 | | | | | | 1,371,796 | | | | | | 304,041,111 | | |
05 | | | | | 26,375,053 | | | | | | 5,676,596 | | | | | | 18,861,070 | | | | | | — | | | | | | 9,146,460 | | | | | | 97,670 | | | | | | 60,156,849 | | |
06 | | | | | 9,329,382 | | | | | | 7,789,664 | | | | | | 5,451,528 | | | | | | — | | | | | | 1,250,000 | | | | | | — | | | | | | 23,820,574 | | |
07 | | | | | 788,446 | | | | | | — | | | | | | 327,532 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,115,978 | | |
Total | | | | $ | 212,846,488 | | | | | $ | 51,884,358 | | | | | $ | 68,076,120 | | | | | $ | 1,774,179 | | | | | $ | 97,270,853 | | | | | $ | 3,193,310 | | | | | $ | 435,045,308 | | |
| | | December 31, 2020 | | |||||||||||||||||||||||||||||||||||||||
| | | Real Estate | | | | | | | | | | | | | | |||||||||||||||||||||||||||
Risk Grade | | | Commercial | | | Construction and Land Development | | | 1 – 4 Family Mortgages | | | Other | | | Commercial, Financial, and Agricultural | | | Consumer and Other | | | Total | | |||||||||||||||||||||
01 | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 37,489,188 | | | | | $ | 357,940 | | | | | $ | 37,847,128 | | |
02 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,743,644 | | | | | | — | | | | | | 5,743,644 | | |
03 | | | | | 19,607,244 | | | | | | 7,858,879 | | | | | | 21,991 | | | | | | — | | | | | | 10,234,712 | | | | | | 105,353 | | | | | | 37,828,179 | | |
04 | | | | | 129,878,882 | | | | | | 20,063,576 | | | | | | 34,127,061 | | | | | | 3,246,674 | | | | | | 24,608,928 | | | | | | 928,962 | | | | | | 212,854,083 | | |
05 | | | | | 32,742,051 | | | | | | 13,885,255 | | | | | | 29,056,929 | | | | | | 11,071 | | | | | | 2,075,399 | | | | | | 215,792 | | | | | | 77,986,497 | | |
06 | | | | | 12,147,305 | | | | | | 9,575,629 | | | | | | 6,549,144 | | | | | | — | | | | | | 3,617,664 | | | | | | — | | | | | | 31,889,742 | | |
07 | | | | | 1,500,717 | | | | | | 268,213 | | | | | | 850,671 | | | | | | — | | | | | | 42,116 | | | | | | 25,956 | | | | | | 2,687,673 | | |
Total | | | | $ | 195,876,199 | | | | | $ | 51,651,552 | | | | | $ | 70,605,796 | | | | | $ | 3,257,745 | | | | | $ | 83,811,651 | | | | | $ | 1,634,003 | | | | | $ | 406,836,946 | | |
December 31, 2021: | | | Loans 30 – 89 Days Past Due | | | Loans 90 or More Days Past Due | | | Total Past Due Loans | | | Total Current Loans | | | Total Loans | | | Accruing Loans 90 or More Days Past Due | | ||||||||||||||||||
Construction and land development | | | | $ | 38 | | | | | | — | | | | | | 38 | | | | | | 13,227 | | | | | | 13,265 | | | | | | — | | |
Single-family residential | | | | | 458 | | | | | | — | | | | | | 458 | | | | | | 33,986 | | | | | | 34,444 | | | | | | — | | |
Commercial | | | | | 33 | | | | | | — | | | | | | 33 | | | | | | 92,263 | | | | | | 92,296 | | | | | | — | | |
Multifamily | | | | | — | | | | | | — | | | | | | — | | | | | | 1,321 | | | | | | 1,321 | | | | | | — | | |
Commercial loans (not secured by real estate) | | | | | 139 | | | | | | 69 | | | | | | 208 | | | | | | 10,081 | | | | | | 10,288 | | | | | | — | | |
Consumer loans (not secured by real estate) | | | | | 5 | | | | | | 4 | | | | | | 9 | | | | | | 1,818 | | | | | | 1,828 | | | | | | — | | |
Total | | | | $ | 673 | | | | | | 73 | | | | | | 746 | | | | | | 152,696 | | | | | | 153,442 | | | | | | — | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 65 | | | | | | — | | | | | | 65 | | | | | | 28,483 | | | | | | 28,548 | | | | | | — | | |
Single-family residential | | | | | 803 | | | | | | 121 | | | | | | 924 | | | | | | 63,258 | | | | | | 64,182 | | | | | | — | | |
Commercial | | | | | 185 | | | | | | — | | | | | | 185 | | | | | | 146,048 | | | | | | 146,233 | | | | | | — | | |
Multifamily | | | | | — | | | | | | — | | | | | | — | | | | | | 1,442 | | | | | | 1,442 | | | | | | — | | |
Commercial loans (not secured by real estate) | | | | | 310 | | | | | | 127 | | | | | | 437 | | | | | | 22,719 | | | | | | 23,156 | | | | | | — | | |
Consumer loans (not secured by real estate) | | | | | 37 | | | | | | — | | | | | | 37 | | | | | | 3,384 | | | | | | 3,421 | | | | | | — | | |
Total | | | | $ | 1,400 | | | | | | 248 | | | | | | 1,648 | | | | | | 265,334 | | | | | | 266,982 | | | | | | — | | |
| | | | | | | | | Past Due Status (Accruing Loans) | | | | | | | | | | | | | | |||||||||||||||||||||
| | | Current | | | 30 – 59 Days | | | 60 – 89 Days | | | 90+ Days | | | Total Past Due | | | Nonaccrual | | | Total | | |||||||||||||||||||||
December 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgages: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | | $ | 212,846,488 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 212,846,488 | | |
Construction and land development | | | | | 51,884,358 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 51,884,358 | | |
1-4 family mortgages | | | | | 67,519,493 | | | | | | 169,009 | | | | | | 173,995 | | | | | | — | | | | | | 343,004 | | | | | | 213,623 | | | | | | 68,076,120 | | |
Other | | | | | 1,774,179 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,774,179 | | |
Commercial, financial, and agricultural | | | | | 97,266,158 | | | | | | — | | | | | | 4,695 | | | | | | — | | | | | | 4,695 | | | | | | — | | | | | | 97,270,853 | | |
Consumer and other | | | | | 3,191,357 | | | | | | 1,251 | | | | | | 702 | | | | | | — | | | | | | 1,953 | | | | | | — | | | | | | 3,193,310 | | |
Total | | | | $ | 434,482,033 | | | | | $ | 170,260 | | | | | $ | 179,392 | | | | | $ | — | | | | | $ | 349,652 | | | | | $ | 213,623 | | | | | $ | 435,045,308 | | |
| | | | | | | | | Past Due Status (Accruing Loans) | | | | | | | | | | | | | | |||||||||||||||||||||
| | | Current | | | 30 – 59 Days | | | 60 – 89 Days | | | 90+ Days | | | Total Past Due | | | Nonaccrual | | | Total | | |||||||||||||||||||||
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgages: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | | $ | 195,633,414 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 242,785 | | | | | $ | 195,876,199 | | |
Construction and land development | | | | | 50,848,334 | | | | | | 736,540 | | | | | | — | | | | | | — | | | | | | 736,540 | | | | | | 66,678 | | | | | | 51,651,552 | | |
1-4 family mortgages | | | | | 69,181,081 | | | | | | 623,227 | | | | | | 182,512 | | | | | | — | | | | | | 805,739 | | | | | | 618,976 | | | | | | 70,605,796 | | |
Other | | | | | 3,257,745 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,257,745 | | |
Commercial, financial, and agricultural | | | | | 83,769,535 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 42,116 | | | | | | 83,811,651 | | |
Consumer and other | | | | | 1,608,007 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,996 | | | | | | 1,634,003 | | |
Total | | | | $ | 404,298,116 | | | | | $ | 1,359,767 | | | | | $ | 182,512 | | | | | $ | — | | | | | $ | 1,542,279 | | | | | $ | 996,551 | | | | | $ | 406,836,946 | | |
| | | 2021 | | | 2020 | | ||||||
Construction and land development | | | | $ | 27 | | | | | | 33 | | |
Single-family residential | | | | | 338 | | | | | | 708 | | |
Commercial | | | | | 169 | | | | | | 4,297 | | |
Commercial loans (not secured by real estate) | | | | | 231 | | | | | | 291 | | |
Consumer loans (not secured by real estate) | | | | | 8 | | | | | | 2 | | |
Total | | | | $ | 773 | | | | | | 5,331 | | |
| | | Contractually Required Payments | | | Non- Accretable Difference | | | Cash Flows Expected to be Collected | | |||||||||
Single-family residential | | | | $ | 699 | | | | | | 337 | | | | | | 362 | | |
Commercial | | | | | 1,898 | | | | | | 283 | | | | | | 1,615 | | |
Commercial loans (not secured by real estate) | | | | | 155 | | | | | | 44 | | | | | | 111 | | |
Total | | | | $ | 20,753 | | | | | | 7,340 | | | | | | 13,413 | | |
Risk Grade | | | Pass | | | Special Mention | | | Substandard | | | Doubtful – Loss | | | Total | | |||||||||||||||
December 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 13,238 | | | | | | — | | | | | | 27 | | | | | | — | | | | | | 13,265 | | |
Single-family residential | | | | | 33,186 | | | | | | 921 | | | | | | 338 | | | | | | — | | | | | | 34,444 | | |
Commercial | | | | | 85,398 | | | | | | 6,729 | | | | | | 169 | | | | | | — | | | | | | 92,296 | | |
Multifamily | | | | | 1,321 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,321 | | |
Commercial (not secured by real estate) | | | | | 9,418 | | | | | | 639 | | | | | | 231 | | | | | | — | | | | | | 10,288 | | |
Consumer (not secured by real estate) | | | | | 1,819 | | | | | | — | | | | | | 8 | | | | | | — | | | | | | 1,828 | | |
| | | | $ | 144,380 | | | | | | 8,289 | | | | | | 773 | | | | | | — | | | | | | 153,442 | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 26,570 | | | | | | 1,945 | | | | | | 33 | | | | | | — | | | | | | 28,548 | | |
Single-family residential | | | | | 62,865 | | | | | | 579 | | | | | | 738 | | | | | | — | | | | | | 64,182 | | |
Commercial | | | | | 130,305 | | | | | | 11,631 | | | | | | 4,297 | | | | | | — | | | | | | 146,233 | | |
Multifamily | | | | | 1,442 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,442 | | |
Commercial (not secured by real estate) | | | | | 21,583 | | | | | | 1,210 | | | | | | 363 | | | | | | — | | | | | | 23,156 | | |
Consumer (not secured by real estate) | | | | | 3,419 | | | | | | — | | | | | | 2 | | | | | | — | | | | | | 3,421 | | |
| | | | $ | 246,184 | | | | | | 15,365 | | | | | | 5,433 | | | | | | — | | | | | | 266,982 | | |
| | | Recorded Investment | | | Charge-offs | | | Unpaid Principal Balance | | | Related Allowance | | | Average Recorded Investment(1) | | | Interest Income Recognized | | ||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 147,048 | | | | | $ | — | | | | | $ | 147,048 | | | | | $ | — | | | | | $ | 49,291 | | | | | $ | 8,446 | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,811 | | | | | | — | | |
Real estate – 1-4 family mortgages | | | | | 113,235 | | | | | | — | | | | | | 113,235 | | | | | | — | | | | | | 518,644 | | | | | | 8,763 | | |
Real estate – other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial, financial, and agricultural | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 155,159 | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,671 | | | | | | — | | |
Total with no related allowance recorded | | | | $ | 260,283 | | | | | $ | — | | | | | $ | 260,283 | | | | | $ | — | | | | | $ | 766,576 | | | | | $ | 17,209 | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 1,520,599 | | | | | $ | — | | | | | $ | 1,520,599 | | | | | $ | 9,303 | | | | | $ | 1,675,989 | | | | | $ | 74,360 | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 49,885 | | | | | | — | | |
Real estate – 1-4 family mortgages | | | | | 534,613 | | | | | | — | | | | | | 534,613 | | | | | | 3,081 | | | | | | 399,009 | | | | | | 13,542 | | |
Real estate – other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial, financial, and agricultural | | | | | 620,315 | | | | | | — | | | | | | 620,315 | | | | | | 3,592 | | | | | | 468,235 | | | | | | 25,275 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total with an allowance recorded | | | | $ | 2,675,527 | | | | | $ | — | | | | | $ | 2,675,527 | | | | | $ | 15,976 | | | | | $ | 2,593,118 | | | | | $ | 113,177 | | |
Total impaired loans | | | | $ | 2,935,810 | | | | | $ | — | | | | | $ | 2,935,810 | | | | | $ | 15,976 | | | | | $ | 3,359,694 | | | | | $ | 130,386 | | |
December 31, 2021: | | | Heritage Bancorporation | | | Providence | | | Total | | |||||||||
Acquired Loan Balance | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | | | $ | 240,113 | | | | | | 26,869 | | | | | | 266,982 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | — | | |
Accretion | | | | | (1,221) | | | | | | (104) | | | | | | (1,325) | | |
Other net change in balances | | | | | (98,372) | | | | | | (13,843) | | | | | | (112,215) | | |
Balance, end of period | | | | $ | 140,520 | | | | | | 12,922 | | | | | | 153,442 | | |
Accretable Discount | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | | | $ | 2,911 | | | | | | 444 | | | | | | 3,355 | | |
Charge-offs, other net changes in balance | | | | | — | | | | | | — | | | | | | — | | |
Accretion | | | | | (1,221) | | | | | | (104) | | | | | | (1,325) | | |
Balance, end of period | | | | $ | 1,690 | | | | | | 340 | | | | | | 2,030 | | |
Non-Accretable Difference | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | | | $ | 664 | | | | | | — | | | | | | 664 | | |
Charge-offs, other net changes in balance | | | | | (664) | | | | | | — | | | | | | (664) | | |
Balance, end of period | | | | $ | — | | | | | | — | | | | | | — | | |
Acquired Loan Balance | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | | | $ | 355,487 | | | | | | 47,692 | | | | | | 403,179 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | — | | |
Accretion | | | | | (1,350) | | | | | | (192) | | | | | | (1,542) | | |
Other net change in balances | | | | | (114,024) | | | | | | (20,631) | | | | | | (134,655) | | |
Balance, end of period | | | | $ | 240,113 | | | | | | 26,869 | | | | | | 266,982 | | |
Accretable Discount | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | | | $ | 4,261 | | | | | | 636 | | | | | | 4,897 | | |
Charge-offs, other net changes in balance | | | | | — | | | | | | — | | | | | | — | | |
Accretion | | | | | (1,350) | | | | | | (192) | | | | | | (1,542) | | |
Balance, end of period | | | | $ | 2,911 | | | | | | 444 | | | | | | 3,355 | | |
Non-Accretable Difference | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | | | $ | 7,340 | | | | | | — | | | | | | 7,340 | | |
Charge-offs, other net changes in balance | | | | | (6,676) | | | | | | — | | | | | | (6,676) | | |
Balance, end of period | | | | $ | 664 | | | | | | — | | | | | | 664 | | |
| | | Recorded Investment | | | Charge-offs | | | Unpaid Principal Balance | | | Related Allowance | | | Average Recorded Investment(1) | | | Interest Income Recognized | | ||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 2,072,071 | | | | | $ | — | | | | | $ | 2,072,071 | | | | | $ | — | | | | | $ | 2,271,461 | | | | | $ | 97,017 | | |
Construction and land development | | | | | 268,213 | | | | | | — | | | | | | 268,213 | | | | | | — | | | | | | 279,854 | | | | | | 9,164 | | |
Real estate – 1-4 family mortgages | | | | | 1,090,349 | | | | | | — | | | | | | 1,090,349 | | | | | | — | | | | | | 1,634,932 | | | | | | 27,189 | | |
Real estate – other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial, financial, and agricultural | | | | | 640,633 | | | | | | — | | | | | | 640,633 | | | | | | — | | | | | | 642,606 | | | | | | 24,474 | | |
Consumer and other | | | | | 22,108 | | | | | | — | | | | | | 22,108 | | | | | | — | | | | | | 21,164 | | | | | | — | | |
Total with no related allowance recorded | | | | $ | 4,093,374 | | | | | $ | — | | | | | $ | 4,093,374 | | | | | $ | — | | | | | $ | 4,850,017 | | | | | $ | 157,844 | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 26,220 | | | | | $ | — | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,517 | | | | | | — | | |
Real estate – 1-4 family mortgages | | | | | 109,483 | | | | | | — | | | | | | 109,483 | | | | | | 7,566 | | | | | | 109,919 | | | | | | 2,253 | | |
Real estate – other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial, financial, and agricultural | | | | | 32,789 | | | | | | — | | | | | | 32,789 | | | | | | 15,000 | | | | | | 35,675 | | | | | | — | | |
Consumer and other | | | | | 3,848 | | | | | | — | | | | | | 3,848 | | | | | | 3,848 | | | | | | 962 | | | | | | — | | |
Total with an allowance recorded | | | | $ | 146,120 | | | | | $ | — | | | | | $ | 146,120 | | | | | $ | 26,414 | | | | | $ | 201,293 | | | | | $ | 2,253 | | |
Total impaired loans | | | | $ | 4,239,494 | | | | | $ | — | | | | | $ | 4,239,494 | | | | | $ | 26,414 | | | | | $ | 5,051,310 | | | | | $ | 160,097 | | |
December 31, 2021: | | | Construction and Land Development | | | Single Family Residential | | | Real Estate Commercial | | | Multifamily | | | Commercial Loans – not secured by Real Estate | | | Consumer Loans – not secured by Real Estate | | | Unallocated | | | Total | | | ||||||||||||||||||||||||||
Allowance for loan Losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Beginning balance | | | | $ | 2,499 | | | | | | 1,981 | | | | | | 5,144 | | | | | | 171 | | | | | | 3,574 | | | | | | 449 | | | | | | 299 | | | | | | 14,117 | | | | ||
Provision for loan losses | | | | | (409) | | | | | | (407) | | | | | | 548 | | | | | | (101) | | | | | | 291 | | | | | | 237 | | | | | | (159) | | | | | | — | | | | ||
Charge-offs | | | | | — | | | | | | — | | | | | | (86) | | | | | | — | | | | | | (541) | | | | | | (463) | | | | | | — | | | | | | (1,090) | | | | ||
Recoveries | | | | | 717 | | | | | | 320 | | | | | | 812 | | | | | | 9 | | | | | | 266 | | | | | | 77 | | | | | | — | | | | | | 2,201 | | | | ||
Ending balance | | | | $ | 2,807 | | | | | | 1,894 | | | | | | 6,418 | | | | | | 79 | | | | | | 3,590 | | | | | | 300 | | | | | | 140 | | | | | | 15,228 | | | | ||
Ending balance, individually evaluated for impairment | | | | $ | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 320 | | | | | | — | | | | | | — | | | | | | 320 | | | | ||
Ending balance, collectively evaluated for impairment | | | | | 2,807 | | | | | | 1,894 | | | | | | 6,418 | | | | | | 79 | | | | | | 3,270 | | | | | | 300 | | | | | | 140 | | | | | | 14,908 | | | | ||
| | | | $ | 2,807 | | | | | | 1,894 | | | | | | 6,418 | | | | | | 79 | | | | | | 3,590 | | | | | | 300 | | | | | | 140 | | | | | | 15,228 | | | | ||
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Ending balance, individually evaluated for impairment | | | | $ | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,512 | | | | | | — | | | | | | — | | | | | | 1,512 | | | | ||
Ending balance, collectively evaluated for impairment | | | | | 159,630 | | | | | | 158,666 | | | | | | 505,894 | | | | | | 6,592 | | | | | | 212,690 | | | | | | 12,082 | | | | | | — | | | | | | 1,055,554 | | | | ||
| | | | $ | 159,630 | | | | | | 158,666 | | | | | | 505,894 | | | | | | 6,592 | | | | | | 214,202 | | | | | | 12,082 | | | | | | — | | | | | | 1,057,066 | | | | ||
Allowance for loan Losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Beginning balance | | | | $ | 1,162 | | | | | | 867 | | | | | | 1,936 | | | | | | 143 | | | | | | 1,504 | | | | | | 102 | | | | | | 232 | | | | | | 5,946 | | | | ||
Provision for loan losses | | | | | 1,408 | | | | | | 1,091 | | | | | | 3,520 | | | | | | 28 | | | | | | 2,577 | | | | | | 659 | | | | | | 67 | | | | | | 9,350 | | | | ||
Charge-offs | | | | | (111) | | | | | | (28) | | | | | | (417) | | | | | | — | | | | | | (753) | | | | | | (431) | | | | | | — | | | | | | (1,740) | | | | | |
Recoveries | | | | | 40 | | | | | | 51 | | | | | | 105 | | | | | | — | | | | | | 246 | | | | | | 119 | | | | | | — | | | | | | 561 | | | | ||
Ending balance | | | | $ | 2,499 | | | | | | 1,981 | | | | | | 5,144 | | | | | | 171 | | | | | | 3,574 | | | | | | 449 | | | | | | 299 | | | | | | 14,117 | | | | ||
Ending balance, individually evaluated for impairment | | | | $ | — | | | | | | — | | | | | | 286 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 286 | | | | ||
Ending balance, collectively evaluated for impairment | | | | | 2,499 | | | | | | 1,981 | | | | | | 4,858 | | | | | | 171 | | | | | | 3,574 | | | | | | 449 | | | | | | 299 | | | | | | 13,831 | | | | ||
| | | | $ | 2,499 | | | | | | 1,981 | | | | | | 5,144 | | | | | | 171 | | | | | | 3,574 | | | | | | 449 | | | | | | 299 | | | | | | 14,117 | | | | ||
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Ending balance, individually evaluated for impairment | | | | $ | — | | | | | | 1,061 | | | | | | 11,691 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,752 | | | | ||
Ending balance, collectively evaluated for impairment | | | | | 142,513 | | | | | | 169,729 | | | | | | 439,094 | | | | | | 14,171 | | | | | | 273,857 | | | | | | 16,678 | | | | | | — | | | | | | 1,056,042 | | | | ||
Ending balance, acquired loans with deteriorated credit quality | | | | | — | | | | | | 362 | | | | | | 1,615 | | | | | | — | | | | | | 111 | | | | | | — | | | | | | — | | | | | | 2,088 | | | | ||
| | | | $ | 142,513 | | | | | | 171,152 | | | | | | 452,400 | | | | | | 14,171 | | | | | | 273,968 | | | | | | 16,678 | | | | | | — | | | | | | 1,070,882 | | | |
| | | 2021 | | | 2020 | | ||||||
Land and land improvements | | | | $ | 7,341 | | | | | | 7,349 | | |
Buildings and improvements | | | | | 27,968 | | | | | | 25,763 | | |
Furniture and equipment | | | | | 9,883 | | | | | | 10,476 | | |
Construction in progress | | | | | 609 | | | | | | 3,768 | | |
| | | | | 45,801 | | | | | | 47,356 | | |
Less accumulated depreciation | | | | | (10,665) | | | | | | (10,191) | | |
| | | | $ | 35,136 | | | | | | 37,165 | | |
December 31, 2021 | | | Non Purchased OREO | | | Purchased OREO | | | Total OREO | | |||||||||
Construction and land development | | | | $ | — | | | | | | 857 | | | | | | 857 | | |
Total other real estate owned | | | | $ | — | | | | | | 857 | | | | | | 857 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | | $ | 27 | | | | | | 2,103 | | | | | | 2,130 | | |
Commercial | | | | | 50 | | | | | | 413 | | | | | | 463 | | |
Total other real estate owned | | | | $ | 77 | | | | | | 2,516 | | | | | | 2,593 | | |
| | | Troubled-Debt Restructurings | | |||||||||||||||
| | | Investment Number of Loans | | | Recorded Investment Prior to Modification | | | Recorded After Modification | | |||||||||
December 31, 2020: | | | | | | | | | | | | | | | | | | | |
Real estate mortgages: | | | | | | | | | | | | | | | | | | | |
Commercial | | | | | 1 | | | | | $ | 97,238 | | | | | $ | 97,238 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Balance, beginning of year | | | | $ | 16,764,868 | | | | | $ | 20,324,343 | | |
Additions | | | | | 100,598 | | | | | | 2,963,647 | | |
Disposals | | | | | (6,479,824) | | | | | | (5,686,268) | | |
Net gain on sales | | | | | 703,286 | | | | | | 940,447 | | |
Valuation adjustment on foreclosed assets | | | | | (110,016) | | | | | | (1,777,301) | | |
Balance, end of year | | | | $ | 10,978,912 | | | | | $ | 16,764,868 | | |
December 31, 2021 | | | Non Purchased OREO | | | Purchased OREO | | | Total OREO | | |||||||||
Balance at the beginning of the year | | | | $ | 77 | | | | | | 2,516 | | | | | | 2,593 | | |
Transferred from Premises | | | | | — | | | | | | 500 | | | | | | 500 | | |
Cash sales | | | | | (73) | | | | | | (1,910) | | | | | | (1,983) | | |
Loss on sales | | | | | (4) | | | | | | (198) | | | | | | (202) | | |
Write-downs | | | | | — | | | | | | (51) | | | | | | (51) | | |
Balance at the end of the year | | | | $ | — | | | | | | 857 | | | | | | 857 | | |
December 31, 2020 | | | Non Purchased OREO | | | Purchased OREO | | | Total OREO | | |||||||||
Balance at the beginning of the year | | | | $ | 2,350 | | | | | | 6,943 | | | | | | 9,293 | | |
Foreclosures | | | | | 1,377 | | | | | | — | | | | | | 1,377 | | |
Transferred to Premises | | | | | — | | | | | | (276) | | | | | | (276) | | |
Cash sales | | | | | (3,380) | | | | | | (3,366) | | | | | | (6,746) | | |
Financed sales | | | | | (121) | | | | | | — | | | | | | (121) | | |
Gains (Loss) on sales | | | | | (34) | | | | | | 211 | | | | | | 177 | | |
Write-downs | | | | | (115) | | | | | | (996) | | | | | | (1,111) | | |
Balance at the end of the year | | | | $ | 77 | | | | | | 2,516 | | | | | | 2,593 | | |
| | | 2021 | | | 2020 | | ||||||
Noninterest-bearing deposits | | | | $ | 485,754 | | | | | | 415,476 | | |
Interest-bearing demand deposits | | | | | 275,115 | | | | | | 283,009 | | |
Money market and savings deposits | | | | | 439,964 | | | | | | 385,246 | | |
Time deposits | | | | | 226,605 | | | | | | 278,825 | | |
| | | | $ | 1,427,438 | | | | | | 1,362,556 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Land | | | | $ | 3,652,456 | | | | | $ | 4,268,074 | | |
Buildings and improvements | | | | | 13,597,471 | | | | | | 13,312,092 | | |
Leasehold improvements | | | | | 201,691 | | | | | | 105,967 | | |
Computer software | | | | | 114,602 | | | | | | 122,920 | | |
Furniture, fixtures, and equipment | | | | | 2,392,125 | | | | | | 4,042,790 | | |
Construction in progress | | | | | 5,700 | | | | | | 81,786 | | |
| | | | | 19,964,045 | | | | | | 21,933,629 | | |
Accumulated depreciation and amortization | | | | | (7,781,588) | | | | | | (8,125,580) | | |
| | | | $ | 12,182,457 | | | | | $ | 13,808,049 | | |
| | | | | | December 31, | | |||||||||
| | | Balance Sheet Classification | | | 2021 | | | 2020 | | ||||||
Right-of-use assets: | | | | | | | | | | | | | | | | |
Operating leases | | | Other assets | | | | $ | 589,606 | | | | | $ | 862,389 | | |
Lease liabilities | | | | | | | | | | | | | | | | |
Operating leases | | | Other liabilities | | | | $ | 609,878 | | | | | $ | 896,918 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Operating lease cost | | | | $ | 418,689 | | | | | $ | 797,986 | | |
| | | Operating Leases | | |||
2022 | | | | $ | 252,062 | | |
2023 | | | | | 229,244 | | |
2024 | | | | | 146,650 | | |
Total undiscounted lease payments | | | | | 627,956 | | |
Less imputed interest | | | | | 18,078 | | |
Net lease liabilities | | | | $ | 609,878 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Operating lease weighted average remaining lease term (years) | | | | | 2.53 | | | | | | 3.37 | | |
Operating lease weighted average discount rate | | | | | 2.36% | | | | | | 2.40% | | |
| 2022 | | | | $ | 118,542 | | |
| 2023 | | | | | 49,277 | | |
| 2024 | | | | | 42,521 | | |
| 2025 | | | | | 12,875 | | |
| 2026 | | | | | 2,633 | | |
| 2027 and thereafter | | | | | 757 | | |
| | | | | $ | 226,605 | | |
| 2022 | | | | $ | 44,863,205 | | |
| 2023 | | | | | 63,388,054 | | |
| 2024 | | | | | 8,276,179 | | |
| 2025 | | | | | 678,761 | | |
| 2026 | | | | | 1,348,857 | | |
| | | | | $ | 118,555,057 | | |
| | | | | | | | | | | | | | | December 31, | | |||||||||
Maturity | | | Type | | | Option(1) | | | Interest Rate | | | 2021 | | | 2020 | | |||||||||
March 2021 | | | Fixed | | | n/a | | | | | 0.76% | | | | | $ | — | | | | | $ | 5,000,000 | | |
September 2029 | | | Floating | | | March 2022 | | | | | 0.67% | | | | | | 12,500,000 | | | | | | 12,500,000 | | |
November 2029 | | | Floating | | | May 2022 | | | | | 0.92% | | | | | | 10,000,000 | | | | | | 10,000,000 | | |
December 2029 | | | Floating | | | June 2022 | | | | | 0.98% | | | | | | 12,500,000 | | | | | | 12,500,000 | | |
| | | | | | | | | | | | | | | | $ | 35,000,000 | | | | | $ | 40,000,000 | | |
| Beginning balance | | | | $ | 3,081 | | |
| New loans and advances | | | | | 1,858 | | |
| Repayments | | | | | (1,861) | | |
| Ending balance | | | | $ | 3,078 | | |
| | | 2021 | | | 2020 | |
Risk-free interest rate | | | 1.133% | | | 0.817% | |
Expected term | | | 7 years | | | 7 years | |
Expected stock price volatility | | | 21.58% | | | 12.18% | |
Dividend yield | | | 0.00% | | | 0.00% | |
| | | Year Ended December 31, 2021 | | | Year Ended December 31, 2020 | | ||||||||||||||||||||||||||||||
| | | Shares | | | Weighted- Average Exercise Price | | | Weighted Average Remaining Contractual Term (Years) | | | Shares | | | Weighted- Average Exercise Price | | | Weighted Average Remaining Contractual Term (Years) | | ||||||||||||||||||
Outstanding at beginning of year | | | | | 1,843,958 | | | | | $ | 5.00 | | | | | | 8.3 | | | | | | 1,861,755 | | | | | $ | 5.00 | | | | | | 9.3 | | |
Granted | | | | | 65,000 | | | | | | 5.00 | | | | | | — | | | | | | 84,579 | | | | | | 5.00 | | | | | | — | | |
Exercised | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Forfeited or expired | | | | | 120,586 | | | | | | 5.00 | | | | | | — | | | | | | 102,376 | | | | | | 5.00 | | | | | | — | | |
Outstanding at end of year | | | | | 1,788,373 | | | | | $ | 5.00 | | | | | | 7.3 | | | | | | 1,843,958 | | | | | $ | 5.00 | | | | | | 8.3 | | |
| | | Year Ended December 31, 2021 | | |||||||||||||||
| | | Shares | | | Weighted- Average Fair Mrkt Price | | | Weighted Average Life till Fully Vested | | |||||||||
Nonvested at beginning of | | | | | — | | | | | $ | — | | | | | | — | | |
Granted | | | | | 219,019 | | | | | | 3.79 | | | | | | | | |
Vested | | | | | — | | | | | | — | | | | | | | | |
Forfeited | | | | | — | | | | | | — | | | | | | | | |
Outstanding at end of year | | | | | 219,019 | | | | | $ | 3.79 | | | | | | 3.44 | | |
| | | Shares | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Term | | |||||||||
Outstanding, December 31, 2020 | | | | | 39,547 | | | | | $ | 9.59 | | | | | | | | |
Exercised | | | | | (1,293) | | | | | | 6.67 | | | | | | | | |
Outstanding, December 31, 2021 | | | | | 38,254 | | | | | | 9.72 | | | | | | 3.8 | | |
Options exercisable at end of year | | | | | 34,395 | | | | | | 9.58 | | | | | | 3.7 | | |
| | | Years Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Current tax receivable: | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | |
| | | | $ | — | | | | | $ | — | | |
| | | Years Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Deferred tax benefit | | | | | | | | | | | | | |
Federal | | | | $ | 701,949 | | | | | $ | (71,324) | | |
State | | | | | 148,116 | | | | | | (35,889) | | |
Total | | | | $ | 850,065 | | | | | $ | (107,213) | | |
| | | Shares | | | Weighted Average Grant Date Fair Value | | ||||||
Outstanding, December 31, 2020 | | | | | 87,151 | | | | | $ | 13.97 | | |
Vested | | | | | 46,939 | | | | | | 14.79 | | |
Forfeited | | | | | 903 | | | | | | 23.37 | | |
Outstanding, December 31, 2021 | | | | | 39,309 | | | | | | 12.79 | | |
| | | Years Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Tax expense (benefit) based on statutory rate | | | | $ | 659,950 | | | | | $ | (229,258) | | |
State tax benefit, net of federal benefit | | | | | 107,126 | | | | | | (35,889) | | |
Other, net | | | | | 82,989 | | | | | | 157,934 | | |
Change in valuation allowance | | | | | — | | | | | | — | | |
| | | | $ | 850,065 | | | | | $ | (107,213) | | |
| | | Years Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Allowance for loan losses | | | | $ | 1,380,439 | | | | | $ | 1,191,039 | | |
PPP loan origination fees and costs | | | | | 12,382 | | | | | | 186,182 | | |
Deferred gains | | | | | 6,336 | | | | | | 6,547 | | |
Federal net operating loss carryforward | | | | | 18,011,436 | | | | | | 19,897,581 | | |
State net operating loss carryforward | | | | | 5,740,200 | | | | | | 4,628,994 | | |
Charitable contribution carryforward | | | | | 2,303 | | | | | | 463 | | |
Nondeductible write-downs on other real estate owned | | | | | 994,722 | | | | | | 1,147,843 | | |
Branch write-downs | | | | | — | | | | | | 38,011 | | |
Accrued compensation | | | | | 260,034 | | | | | | 293,999 | | |
Lease liability, net | | | | | 5,138 | | | | | | 8,751 | | |
Accumulated depreciation and amortization | | | | | 152,095 | | | | | | 73,470 | | |
Stock based compensation | | | | | 29,434 | | | | | | — | | |
| | | | | 26,594,519 | | | | | | 27,472,880 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Prepaid employee compensation | | | | | (6,020) | | | | | | (34,331) | | |
Net unrealized gain on securities available for sale | | | | | (45,709) | | | | | | (115,367) | | |
| | | | | (51,729) | | | | | | (149,698) | | |
Net deferred tax assets | | | | $ | 26,542,790 | | | | | $ | 27,323,182 | | |
| | 2021 | | 2020 | | | 2021 | | 2020 | | ||||||||||||||||
Financial instruments whose contract amounts represent credit risk: | | | | | | | | | | | | |||||||||||||||
Commitments to extend credit | | | $ | 48,842,775 | | | | $ | 50,373,713 | | | | | $ | 404,353 | | | | | 260,461 | | | ||||
Standby letters-of-credit | | | $ | 1,405,000 | | | | $ | 264,000 | | | |||||||||||||||
Financial and performance letters of credit | | | | 5,286 | | | | | 5,334 | | | |||||||||||||||
| | | $ | 409,639 | | | | | 265,795 | | |
| | | 2021 | | | 2020 | | ||||||
Current | | | | $ | 32 | | | | | | 8 | | |
Deferred | | | | | 3,957 | | | | | | 1,042 | | |
Total income tax expense | | | | $ | 3,989 | | | | | | 1,050 | | |
| | | 2021 | | | 2020 | | ||||||
Pretax income at statutory rates | | | | $ | 3,739 | | | | | | 1,153 | | |
Add (deduct): | | | | | | | | | | | | | |
Tax-exempt interest income | | | | | (42) | | | | | | (15) | | |
Life insurance income | | | | | (189) | | | | | | (167) | | |
State income taxes, net of federal benefit | | | | | 504 | | | | | | 47 | | |
Other, net | | | | | (23) | | | | | | 32 | | |
Total income tax expense | | | | $ | 3,989 | | | | | | 1,050 | | |
| | | 2021 | | | 2020 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Unrealized losses on securities available for sale | | | | $ | 685 | | | | | | — | | |
Deferred loans fees | | | | | 445 | | | | | | 728 | | |
Provision for loan losses | | | | | 3,516 | | | | | | 2,947 | | |
Other real estate owned | | | | | 184 | | | | ��� | | 615 | | |
Acquisition fair value adjustments | | | | | 289 | | | | | | 2,025 | | |
Other expenses | | | | | 261 | | | | | | 211 | | |
Accrued other | | | | | 105 | | | | | | 658 | | |
Transaction costs | | | | | 186 | | | | | | — | | |
Share-based compensation | | | | | 272 | | | | | | 262 | | |
Deferred compensation | | | | | 875 | | | | | | 760 | | |
State tax credits | | | | | 769 | | | | | | 518 | | |
Net operating losses | | | | | 7,060 | | | | | | 9,582 | | |
Total deferred tax assets | | | | | 14,647 | | | | | | 18,306 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Unrealized gains on securities available for sale | | | | | — | | | | | | 465 | | |
Premises & equipment | | | | | 669 | | | | | | 831 | | |
Core deposit intangible | | | | | 1,821 | | | | | | 2,042 | | |
Other liabilities | | | | | 64 | | | | | | 68 | | |
Total deferred tax liabilities | | | | | 2,554 | | | | | | 3,406 | | |
Net deferred tax asset | | | | $ | 12,093 | | | | | | 14,900 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Notional amount-interest rate swap contracts | | | | $ | 272,629,003 | | | | | $ | 217,876,856 | | |
Weighted-average pay rate-interest rate swap contracts | | | | | 3.93% | | | | | | 2.67% | | |
Weighted-average receive rate-interest rate swap contracts | | | | | 3.93% | | | | | | 2.67% | | |
Weighted-average maturity in years-interest rate swap contracts | | | | | 6.09 | | | | | | 7.45 | | |
| | | Fair Value | | |||||||||||||||||||||
| | | December 31, 2021 | | | December 31, 2020 | | ||||||||||||||||||
| | | Derivative Assets | | | Derivative Liabilities | | | Derivative Assets | | | Derivative Liabilities | | ||||||||||||
Interest rate swap contracts | | | | $ | 2,901,723 | | | | | $ | 2,901,723 | | | | | $ | 5,281,783 | | | | | $ | 5,281,783 | | |
| | | Actual | | | For Capital Adequacy Purposes | | | To Be Well Capitalized Under Prompt Corrective Action Provisions | | |||||||||||||||||||||||||||
As of December 31, 2021: | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Total Capital to Risk-Weighted Assets | | | | $ | 173,088 | | | | | | 13.90% | | | | | $ | 99,654 | | | | | | 8.00% | | | | | $ | 124,568 | | | | | | 10.00% | | |
Tier 1 Capital to Risk-Weighted Assets | | | | | 157,860 | | | | | | 12.67% | | | | | | 74,741 | | | | | | 6.00% | | | | | | 99,654 | | | | | | 8.00% | | |
Common Equity Tier 1 Capital to Risk-Weighted Assets | | | | | 157,860 | | | | | | 12.67% | | | | | | 56,056 | | | | | | 4.50% | | | | | | 80,969 | | | | | | 6.50% | | |
Tier 1 Capital to Average Assets | | | | | 157,860 | | | | | | 9.81% | | | | | | 64,397 | | | | | | 4.00% | | | | | | 80,497 | | | | | | 5.00% | | |
As of December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital to Risk-Weighted Assets | | | | $ | 150,084 | | | | | | 13.19% | | | | | $ | 91,015 | | | | | | 8.00% | | | | | $ | 113,769 | | | | | | 10.00% | | |
Tier 1 Capital to Risk-Weighted Assets | | | | | 135,967 | | | | | | 11.95% | | | | | | 68,261 | | | | | | 6.00% | | | | | | 91,015 | | | | | | 8.00% | | |
Common Equity Tier 1 Capital to Risk-Weighted Assets | | | | | 135,967 | | | | | | 11.95% | | | | | | 51,196 | | | | | | 4.50% | | | | | | 73,950 | | | | | | 6.50% | | |
Tier 1 Capital to Average Assets | | | | | 135,967 | | | | | | 8.98% | | | | | | 60,585 | | | | | | 4.00% | | | | | | 75,731 | | | | | | 5.00% | | |
| | | Actual | | | For Capital Adequacy Purposes | | | To Be Well Capitalized Under Prompt Corrective Action Provisions | | |||||||||||||||||||||||||||
| | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
| | | (Dollars in Thousands) | | |||||||||||||||||||||||||||||||||
As of December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital Ratio (total capital to to risk weighted assets) | | | | $ | 62,344 | | | | | | 13.75% | | | | | $ | 36,269 | | | | | | 8.00% | | | | | $ | 45,336 | | | | | | 10.00% | | |
Core Capital Ratio (Tier 1 capital to risk weighted assets) | | | | $ | 56,897 | | | | | | 12.55% | | | | | $ | 27,201 | | | | | | 6.00% | | | | | $ | 36,269 | | | | | | 8.00% | | |
CET1 Ratio (common equity Tier 1 capital to risk weighted assets) | | | | $ | 56,897 | | | | | | 12.55% | | | | | $ | 20,401 | | | | | | 4.50% | | | | | $ | 29,468 | | | | | | 6.50% | | |
Leverage Ratio (Tier 1 capital to average assets) | | | | $ | 56,897 | | | | | | 9.77% | | | | | $ | 23,300 | | | | | | 4.00% | | | | | $ | 29,126 | | | | | | 5.00% | | |
As of December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital Ratio (total capital to to risk weighted assets) | | | | $ | 58,295 | | | | | | 14.38% | | | | | $ | 32,427 | | | | | | 8.00% | | | | | $ | 40,534 | | | | | | 10.00% | | |
Core Capital Ratio (Tier 1 capital to risk weighted assets) | | | | $ | 53,596 | | | | | | 13.22% | | | | | $ | 24,320 | | | | | | 6.00% | | | | | $ | 32,724 | | | | | | 8.00% | | |
CET1 Ratio (common equity Tier 1 capital to risk weighted assets) | | | | $ | 53,596 | | | | | | 13.22% | | | | | $ | 18,240 | | | | | | 4.50% | | | | | $ | 26,347 | | | | | | 6.50% | | |
Leverage Ratio (Tier 1 capital to average assets) | | | | $ | 53,596 | | | | | | 10.20% | | | | | $ | 21,025 | | | | | | 4.00% | | | | | $ | 26,281 | | | | | | 5.00% | | |
| Level 1 - | | | Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. | |
| Level 2 - | | | Valuation is based upon quoted prices for similar assets or liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. | |
| Level 3 - | | | Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |
| | | Fair Value Measurements Using | | | | | | | | |||||||||||||||
| | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Carrying Value | | ||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale Municipal securities | | | | $ | — | | | | | $ | 180,540 | | | | | $ | — | | | | | $ | 180,540 | | |
Mortgage-backed securities – GSE residential | | | | | — | | | | | | 6,411,204 | | | | | | — | | | | | | 6,411,204 | | |
Total securities | | | | | — | | | | | | 6,591,744 | | | | | | — | | | | | | 6,591,744 | | |
Mortgage loans held for sale | | | | | — | | | | | | 3,498,542 | | | | | | — | | | | | | 3,498,542 | | |
Derivative assets | | | | | — | | | | | | 2,901,723 | | | | | | — | | | | | | 2,901,723 | | |
Derivative liabilities | | | | | — | | | | | | (2,901,723) | | | | | | — | | | | | | (2,901,723) | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale Municipal securities | | | | $ | — | | | | | $ | 340,979 | | | | | $ | — | | | | | $ | 340,979 | | |
Mortgage-backed securities – GSE residential | | | | | — | | | | | | 14,314,596 | | | | | | — | | | | | | 14,314,596 | | |
Total securities | | | | | — | | | | | | 14,655,575 | | | | | | — | | | | | | 14,655,575 | | |
Mortgage loans held for sale | | | | | — | | | | | | 6,485,691 | | | | | | — | | | | | | 6,485,691 | | |
Derivative assets | | | | | — | | | | | | 5,281,783 | | | | | | — | | | | | | 5,281,783 | | |
Derivative liabilities | | | | | — | | | | | | (5,281,783) | | | | | | — | | | | | | (5,281,783) | | |
December 31, 2021: | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
State and political subdivisions | | | | $ | — | | | | | | 26,043 | | | | | | — | | | | | | 26,043 | | |
Residential mortgage-backed securities | | | | | — | | | | | | 139,886 | | | | | | — | | | | | | 139,886 | | |
Collateralized mortgage obligations | | | | | — | | | | | | 26,061 | | | | | | — | | | | | | 26,061 | | |
Commercial mortgage-backed securities | | | | | — | | | | | | 3,294 | | | | | | — | | | | | | 3,294 | | |
Corporate debt securities | | | | | — | | | | | | — | | | | | | 2,025 | | | | | | 2,025 | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
State and political subdivisions | | | | $ | — | | | | | | 25,629 | | | | | | — | | | | | | 25,629 | | |
Residential mortgage-backed securities | | | | | — | | | | | | 86,634 | | | | | | — | | | | | | 86,634 | | |
Collateralized mortgage obligations | | | | | — | | | | | | 50,464 | | | | | | — | | | | | | 50,464 | | |
Commercial mortgage-backed securities | | | | | — | | | | | | 5,102 | | | | | | — | | | | | | 5,102 | | |
Corporate debt securities | | | | | — | | | | | | — | | | | | | 1,500 | | | | | | 1,500 | | |
| | | Fair Value Measurements Using | | | | | | | | |||||||||||||||
| | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) | | ||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | — | | | | | $ | — | | | | | $ | 2,736,940 | | | | | $ | (12,301) | | |
Foreclosed assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | 2,736,940 | | | | | $ | (12,301) | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | — | | | | | $ | — | | | | | $ | 146,120 | | | | | $ | 17,700 | | |
Foreclosed assets | | | | | — | | | | | | — | | | | | | 8,051,330 | | | | | | (1,434,222) | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | 8,197,450 | | | | | $ | (1,416,522) | | |
December 31, 2021: | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||
Acquired PCI loans | | | | $ | — | | | | | | — | | | | | | — | | | | | | — | | |
Other real estate owned | | | | | — | | | | | | — | | | | | | 857 | | | | | | 857 | | |
Total | | | | $ | — | | | | | | — | | | | | | 857 | | | | | | 857 | | |
December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired PCI loans | | | | $ | — | | | | | | — | | | | | | 2,088 | | | | | | 2,088 | | |
Other real estate owned | | | | | — | | | | | | — | | | | | | 2,593 | | | | | | 2,593 | | |
Total | | | | $ | — | | | | | | — | | | | | | 4,681 | | | | | | 4,681 | | |
| | | Carrying Amount | | | Valuation Technique | | | Significant Unobservable Input | | |||
December 31, 2021 | | | | | | | | | | | | | |
Nonrecurring: | | | | | | | | | | | | | |
Impaired loans | | | | $ | 2,736,940 | | | | Discounted Cashflow | | | None | |
Foreclosed assets | | | | $ | — | | | | Appraisals | | | Appraisal discounts | |
December 31, 2020 | | | | | | | | | | | | | |
Nonrecurring: | | | | | | | | | | | | | |
Impaired loans | | | | $ | 146,120 | | | | Appraisals | | | Appraisal discounts | |
Foreclosed assets | | | | $ | 8,051,330 | | | | Appraisals | | | Appraisal discounts | |
| | | Carrying Amount | | | Fair Value Measurements at December 31, 2021 | | ||||||||||||||||||||||||
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial assets | | | | | | | |||||||||||||||||||||||||
Cash and cash equivalents | | | | $ | 100,237,659 | | | | | $ | 100,237,659 | | | | | $ | — | | | | | $ | — | | | | | $ | 100,237,659 | | |
Securities available for sale | | | | | 6,591,744 | | | | | | — | | | | | | 6,591,744 | | | | | | — | | | | | | 6,591,744 | | |
Restricted equity securities | | | | | 1,846,100 | | | | | | — | | | | | | 1,846,100 | | | | | | — | | | | | | 1,846,100 | | |
Mortgage loans held for sale | | | | | 3,498,542 | | | | | | — | | | | | | 3,498,542 | | | | | | — | | | | | | 3,498,542 | | |
Loans receivable, net | | | | | 429,018,242 | | | | | | — | | | | | | — | | | | | | 426,062,514 | | | | | | 426,062,514 | | |
Accrued interest receivable | | | | | 1,218,059 | | | | | | — | | | | | | 35,326 | | | | | | 1,182,733 | | | | | | 1,218,059 | | |
Derivative assets | | | | | 2,901,723 | | | | | | — | | | | | | 2,901,723 | | | | | | — | | | | | | 2,901,723 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 475,368,966 | | | | | $ | — | | | | | $ | 476,741,789 | | | | | $ | — | | | | | $ | 476,741,789 | | |
Other borrowings | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Federal Home Loan Bank | | | | | 35,000,000 | | | | | | — | | | | | | — | | | | | | 34,638,586 | | | | | | 34,638,586 | | |
Accrued interest payable | | | | | 181,379 | | | | | | — | | | | | | 158,858 | | | | | | 22,521 | | | | | | 181,379 | | |
Derivative liabilities | | | | | 2,901,723 | | | | | | — | | | | | | 2,901,723 | | | | | | — | | | | | | 2,901,723 | | |
| | | Carrying Amount | | | Estimated Fair Value | | ||||||||||||||||||
| | | Level 1 | | | Level 2 | | | Level 3 | | |||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 291,202 | | | | | | 291,202 | | | | | | — | | | | | | — | | |
Securities available for sale | | | | | 197,309 | | | | | | — | | | | | | 195,284 | | | | | | 2,025 | | |
Other investments | | | | | 786 | | | | | | — | | | | | | 786 | | | | | | — | | |
Loans, net | | | | | 1,055,325 | | | | | | — | | | | | | 1,037,781 | | | | | | — | | |
Cash surrender value of bank owned life insurance | | | | | 34,634 | | | | | | — | | | | | | 34,634 | | | | | | — | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 1,427,438 | | | | | | — | | | | | | 1,427,438 | | | | | | — | | |
Securities sold under repurchase agreements | | | | | 23,988 | | | | | | — | | | | | | 23,988 | | | | | | — | | |
Lines of credit | | | | | 34,188 | | | | | | — | | | | | | 34,188 | | | | | | — | | |
Junior subordinated debentures | | | | | 9,403 | | | | | | — | | | | | | 9,403 | | | | | | — | | |
Subordinated notes | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 218,625 | | | | | | 218,625 | | | | | | — | | | | | | — | | |
Securities available for sale | | | | | 169,329 | | | | | | — | | | | | | 167,829 | | | | | | 1,500 | | |
Other investments | | | | | 1,203 | | | | | | — | | | | | | 1,203 | | | | | | — | | |
Loans, net | | | | | 1,068,032 | | | | | | — | | | | | | 1,065,634 | | | | | | 2,088 | | |
Cash surrender value of bank owned life insurance | | | | | 28,734 | | | | | | — | | | | | | 28,734 | | | | | | — | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 1,362,556 | | | | | | — | | | | | | 1,365,255 | | | | | | — | | |
Securities sold under repurchase agreements | | | | | 13,187 | | | | | | — | | | | | | 13,187 | | | | | | — | | |
Lines of credit | | | | | 14,688 | | | | | | — | | | | | | 14,688 | | | | | | — | | |
Junior subordinated debentures | | | | | 9,250 | | | | | | — | | | | | | 9,250 | | | | | | — | | |
Subordinated notes | | | | | 19,646 | | | | | | — | | | | | | 19,646 | | | | | | — | | |
| | | Carrying Amount | | | Fair Value Measurements at December 31, 2020 | | ||||||||||||||||||||||||
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 79,896,567 | | | | | $ | 79,896,567 | | | | | $ | — | | | | | $ | — | | | | | $ | 79,896,567 | | |
Securities available for sale | | | | | 14,655,576 | | | | | | — | | | | | | 14,655,576 | | | | | | — | | | | | | 14,655,576 | | |
Restricted equity securities | | | | | 2,406,100 | | | | | | — | | | | | | 2,406,100 | | | | | | — | | | | | | 2,406,100 | | |
Mortgage loans held for sale | | | | | 6,485,691 | | | | | | — | | | | | | 6,485,691 | | | | | | — | | | | | | 6,485,691 | | |
Loans receivable, net | | | | | 401,192,284 | | | | | | — | | | | | | — | | | | | | 407,192,735 | | | | | | 407,192,735 | | |
Accrued interest receivable | | | | | 1,480,789 | | | | | | — | | | | | | 65,600 | | | | | | 1,415,189 | | | | | | 1,480,789 | | |
Derivative assets | | | | | 5,281,783 | | | | | | — | | | | | | 5,281,783 | | | | | | — | | | | | | 5,281,783 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 431,335,082 | | | | | $ | — | | | | | $ | 434,081,255 | | | | | $ | — | | | | | $ | 434,081,255 | | |
Other borrowings | | | | | 14,661,623 | | | | | | 14,661,623 | | | | | | — | | | | | | — | | | | | | 14,661,623 | | |
Federal Home Loan Bank | | | | | 40,000,000 | | | | | | — | | | | | | — | | | | | | 40,871,753 | | | | | | 40,871,753 | | |
Accrued interest payable | | | | | 298,485 | | | | | | — | | | | | | 237,790 | | | | | | 60,695 | | | | | | 298,485 | | |
Derivative liabilities | | | | | 5,281,783 | | | | | | — | | | | | | 5,281,783 | | | | | | — | | | | | | 5,281,783 | | |
| | | 2021 | | | 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Cash | | | | $ | 146 | | | | | | 3,885 | | |
Investment in subsidiary | | | | | 196,202 | | | | | | 181,392 | | |
Other assets | | | | | 1,215 | | | | | | 1,490 | | |
Total assets | | | | $ | 197,563 | | | | | | 186,767 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Lines of credit | | | | $ | 34,188 | | | | | | 14,688 | | |
Subordinated notes | | | | | — | | | | | | 19,646 | | |
Junior subordinated debentures | | | | | 9,403 | | | | | | 9,250 | | |
Other liabilities | | | | | 12 | | | | | | 350 | | |
Total liabilities | | | | | 43,603 | | | | | | 43,934 | | |
Shareholders’ equity | | | | | 153,960 | | | | | | 142,833 | | |
Total liabilities and shareholders’ equity | | | | $ | 197,563 | | | | | | 186,767 | | |
| | | 2021 | | | 2020 | | ||||||
Noninterest income | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | $ | 422,558 | | | | | $ | 379,896 | | |
Other service charges, commissions, and fees | | | | | 600,097 | | | | | | 472,359 | | |
Mortgage banking income(a) | | | | | 4,126,679 | | | | | | 5,883,950 | | |
Net gain on sales of securities available for sale(a) | | | | | — | | | | | | 280 | | |
Net gain on sales of foreclosed assets(a) | | | | | 703,286 | | | | | | 940,447 | | |
Rental and Other income from foreclosed assets | | | | | 126,439 | | | | | | 116,663 | | |
Other income | | | | | 559,760 | | | | | | 1,456,963 | | |
| | | | $ | 6,538,819 | | | | | $ | 9,250,558 | | |
| | | 2021 | | | 2020 | | ||||||
Revenues: | | | | | | | | | | | | | |
Other | | | | $ | 5 | | | | | | 7 | | |
Total revenues | | | | | 5 | | | | | | 7 | | |
Expenses: | | | | | | | | | | | | | |
Interest | | | | | 1,847 | | | | | | 1,619 | | |
Transaction costs | | | | | 3,783 | | | | | | — | | |
Other expense | | | | | 154 | | | | | | 134 | | |
Total expenses | | | | | 5,784 | | | | | | 1,753 | | |
Loss before income tax benefit and equity in undistributed income of subsidiary | | | | | (5,779) | | | | | | (1,746) | | |
Income tax benefit | | | | | (1,476) | | | | | | (446) | | |
Loss before equity in undistributed income of subsidiary | | | | | (4,303) | | | | | | (1,300) | | |
Equity in undistributed income of subsidiary | | | | | 18,117 | | | | | | 5,742 | | |
Net income | | | | $ | 13,814 | | | | | | 4,442 | | |
| | | 2021 | | | 2020 | | ||||||
Operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 13,814 | | | | | | 4,442 | | |
Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | | | | | | |
Amortization | | | | | 507 | | | | | | 173 | | |
Equity in undistributed income of subsidiary | | | | | (18,117) | | | | | | (5,742) | | |
Stock-based compensation | | | | | 619 | | | | | | 590 | | |
Change in assets and liabilities: | | | | | | | | | | | | | |
Other assets | | | | | 275 | | | | | | 9 | | |
Other liabilities | | | | | (338) | | | | | | (1,016) | | |
Net cash used in operating activities | | | | | (3,239) | | | | | | (1,544) | | |
Investing activities (net of effect of business combinations): | | | | | | | | | | | | | |
Investment in subsidiary | | | | | — | | | | | | (20,500) | | |
Net cash used in investing activities | | | | | — | | | | | | (20,500) | | |
Financing activities: | | | | | | | | | | | | | |
Proceeds from other borrowings | | | | | 19,500 | | | | | | 15,600 | | |
Repayment of other borrowings | | | | | — | | | | | | (10,000) | | |
Proceeds from subordinated debt offering | | | | | — | | | | | | 19,627 | | |
Repurchase of subordinated debt | | | | | (20,000) | | | | | | — | | |
Net cash provided by financing activities | | | | | (500) | | | | | | 25,227 | | |
Net change in cash | | | | | (3,739) | | | | | | 3,183 | | |
Cash at beginning of year | | | | | 3,885 | | | | | | 702 | | |
Cash at end of year | | | | $ | 146 | | | | | | 3,885 | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Cash | | | | $ | 237,282 | | | | | $ | 249,111 | | |
Investment in subsidiaries | | | | | 81,177,547 | | | | | | 78,591,330 | | |
Deferred tax asset, net | | | | | 16,561 | | | | | | 14,037 | | |
Other assets | | | | | 1,221 | | | | | | 2,844 | | |
Total assets | | | | | 81,432,611 | | | | | $ | 78,857,322 | | |
Liabilities | | | | | | | | | | | | | |
Other liabilities | | | | $ | 3,500 | | | | | $ | 7,000 | | |
Stockholders’ equity | | | | | 81,429,111 | | | | | | 78,850,322 | | |
Total liabilities and stockholders’ equity | | | | $ | 81,432,611 | | | | | $ | 78,857,322 | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Expenses | | | | | | | | | | | | | |
Other operating expenses | | | | $ | 9,952 | | | | | $ | 55,046 | | |
Loss before income tax benefit and equity in undistributed loss of subsidiaries | | | | | (9,952) | | | | | | (55,046) | | |
Income tax benefit | | | | | 2,523 | | | | | | 14,037 | | |
Loss before equity in undistributed income (loss) of subsidiaries | | | | | (7,429) | | | | | | (41,009) | | |
Equity in undistributed income (loss) of subsidiaries | | | | | 2,299,987 | | | | | | (943,482) | | |
Net income (loss) | | | | $ | 2,292,558 | | | | | $ | (984,491) | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 2,292,558 | | | | | $ | (984,491) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | | | | | | | | | |
Equity in undistributed income (loss) of subsidiaries | | | | | (2,299,987) | | | | | | 943,482 | | |
Other operating activities | | | | | (4,400) | | | | | | (9,881) | | |
Net cash used in operating activities | | | | | (11,829) | | | | | | (50,890) | | |
FINANCING ACTIVITIES | | | | | | | | | | | | | |
Proceeds from sale of stock to subsidiary bank | | | | | — | | | | | | 300,001 | | |
Net cash provided by financial activities | | | | | — | | | | | | 300,001 | | |
Net increase (decrease) in cash | | | | | (11,829) | | | | | | 249,111 | | |
Cash at beginning of year | | | | | 249,111 | | | | | | — | | |
Cash at end of year | | | | $ | 237,282 | | | | | $ | 249,111 | | |
| | | (Unaudited) 2022 | | | 2021 | | ||||||
Assets | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 32,404 | | | | | | 29,689 | | |
Interest-bearing deposits with banks | | | | | 266,020 | | | | | | 261,513 | | |
Cash and cash equivalents | | | | | 298,424 | | | | | | 291,202 | | |
Securities available for sale | | | | | 192,982 | | | | | | 197,309 | | |
Other investments | | | | | 827 | | | | | | 786 | | |
Loans, net of unearned income: | | | | | | | | | | | | | |
Originated | | | | | 990,379 | | | | | | 901,883 | | |
Acquired | | | | | 120,880 | | | | | | 153,442 | | |
Allowance for loan losses | | | | | (15,296) | | | | | | (15,228) | | |
Loans, net | | | | | 1,095,963 | | | | | | 1,040,097 | | |
Premises and equipment, net | | | | | 33,812 | | | | | | 35,136 | | |
Cash surrender value of bank owned life insurance | | | | | 35,104 | | | | | | 34,634 | | |
Other real estate owned | | | | | 857 | | | | | | 857 | | |
Accrued interest receivable | | | | | 3,190 | | | | | | 3,240 | | |
Goodwill | | | | | 28,275 | | | | | | 28,275 | | |
Core deposit intangible, net | | | | | 6,809 | | | | | | 7,283 | | |
Deferred tax asset, net | | | | | 13,975 | | | | | | 12,093 | | |
Other assets | | | | | 2,814 | | | | | | 3,653 | | |
Total assets | | | | $ | 1,713,032 | | | | | | 1,654,565 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | |
Noninterest-bearing | | | | $ | 527,023 | | | | | | 485,754 | | |
Interest-bearing | | | | | 959,425 | | | | | | 941,684 | | |
Total deposits | | | | | 1,486,448 | | | | | | 1,427,438 | | |
Securities sold under agreements to repurchase | | | | | 22,266 | | | | | | 23,988 | | |
Lines of credit | | | | | 34,688 | | | | | | 34,188 | | |
Junior subordinated debentures | | | | | 9,480 | | | | | | 9,403 | | |
Accrued expenses and other liabilities | | | | | 10,163 | | | | | | 5,588 | | |
Total liabilities | | | | | 1,563,045 | | | | | | 1,500,605 | | |
Commitments | | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.10 par value, 50,000,000 shares authorized; 7,020,849 and 7,026,210 shares issued and outstanding | | | | | 702 | | | | | | 703 | | |
Additional paid in capital | | | | | 117,328 | | | | | | 117,444 | | |
Retained earnings | | | | | 44,966 | | | | | | 37,797 | | |
Accumulated other comprehensive income (loss) | | | | | (13,009) | | | | | | (1,984) | | |
Total shareholders’ equity | | | | | 149,987 | | | | | | 153,960 | | |
Total liabilities and shareholders’ equity | | | | $ | 1,713,032 | | | | | | 1,654,565 | | |
| | | Actual | | |||||||||
| | | 03/31/22 Unaudited | | | 12/31/21 Audited | | ||||||
Assets | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 3,492,669 | | | | | $ | 3,199,260 | | |
Interest-bearing deposits in banks | | | | | 73,429,537 | | | | | | 95,127,848 | | |
Restricted Cash | | | | | 991,551 | | | | | | 1,910,551 | | |
Cash and cash equivalents | | | | | 77,913,757 | | | | | | 100,237,659 | | |
Securities available for sale | | | | | 17,351,033 | | | | | | 6,591,744 | | |
Restricted equity securities, at cost | | | | | 1,858,000 | | | | | | 1,846,100 | | |
Mortgage loans held for sale | | | | | 1,318,881 | | | | | | 3,498,542 | | |
Loans | | | | | 454,414,912 | | | | | | 434,464,837 | | |
Less allowance for loan losses | | | | | (5,467,636) | | | | | | (5,446,595) | | |
Loans, net | | | | | 448,947,276 | | | | | | 429,018,242 | | |
Accrued interest receivable | | | | | 1,253,184 | | | | | | 1,218,060 | | |
Premises and equipment, net | | | | | 12,015,597 | | | | | | 12,182,457 | | |
Foreclosed assets | | | | | 10,949,562 | | | | | | 10,978,912 | | |
Goodwill | | | | | 414,427 | | | | | | 414,427 | | |
Deferred Tax Assets | | | | | 26,389,316 | | | | | | 26,542,790 | | |
Other assets – BOLI | | | | | 10,004,256 | | | | | | — | | |
Other assets | | | | | 11,255,146 | | | | | | 5,047,568 | | |
Total Assets | | | | $ | 619,670,435 | | | | | $ | 597,576,501 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | | $ | 129,262,610 | | | | | $ | 122,908,458 | | |
Interest-bearing demand deposits | | | | | 221,198,028 | | | | | | 206,020,710 | | |
Savings deposits | | | | | 27,609,355 | | | | | | 27,884,743 | | |
Other time deposits | | | | | 113,668,165 | | | | | | 118,555,057 | | |
Total deposits | | | | | 491,738,158 | | | | | | 475,368,968 | | |
Federal Home Loan Bank advances | | | | | 35,000,000 | | | | | | 35,000,000 | | |
Accrued interest payable | | | | | 178,267 | | | | | | 181,379 | | |
Other liabilities | | | | | 10,824,260 | | | | | | 5,597,043 | | |
Total liabilities | | | | | 537,740,685 | | | | | | 516,147,390 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $1 par value; 15,000,000 authorized; Class A, non- cumulative convertible perpetual preferred 5,405,604 shares issued and outstanding | | | | | 5,405,604 | | | | | | 5,405,604 | | |
Common stock, $1 par value; 30,000,000 shares authorized; 14,732,382 shares issued and outstanding | | | | | 14,732,382 | | | | | | 14,732,382 | | |
Additional paid-in capital | | | | | 121,146,031 | | | | | | 120,987,926 | | |
Accumulated deficit | | | | | (59,196,272) | | | | | | (59,831,403) | | |
Accumulated other comprehensive income (loss) | | | | | (157,995) | | | | | | 134,602 | | |
Total stockholders’ equity | | | | | 81,929,750 | | | | | | 81,429,111 | | |
Total Liabilities and Stockholders’ Equity | | | | $ | 619,670,435 | | | | | $ | 597,576,501 | | |
| | | 2022 | | | 2021 | | ||||||
Interest and dividend revenue: | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 25,536 | | | | | | 27,312 | | |
Investment securities | | | | | 1,410 | | | | | | 892 | | |
Federal funds sold, deposits in banks and other investments | | | | | 705 | | | | | | 134 | | |
Total interest and dividend revenue | | | | | 27,651 | | | | | | 28,338 | | |
Interest expense: | | | | | | | | | | | | | |
Deposits | | | | | 1,320 | | | | | | 1,829 | | |
Repurchase agreements | | | | | 24 | | | | | | 16 | | |
Line of credit | | | | | 589 | | | | | | 234 | | |
Junior subordinated debentures | | | | | 188 | | | | | | 163 | | |
Subordinated debt | | | | | — | | | | | | 600 | | |
Total interest expense | | | | | 2,121 | | | | | | 2,842 | | |
Net interest revenue | | | | | 25,530 | | | | | | 25,496 | | |
Provision for loan losses | | | | | — | | | | | | — | | |
Net interest revenue after provision for loan losses | | | | | 25,530 | | | | | | 25,496 | | |
Noninterest revenue: | | | | | | | | | | | | | |
Service charges and fees | | | | | 2,959 | | | | | | 2,574 | | |
Interchange and ATM fees | | | | | 3,001 | | | | | | 3,201 | | |
Bank owned life insurance income | | | | | 470 | | | | | | 440 | | |
Gain on sale of loans | | | | | 849 | | | | | | 1,644 | | |
Other | | | | | 1,173 | | | | | | 1,244 | | |
Total noninterest revenue | | | | | 8,452 | | | | | | 9,103 | | |
Operating expenses: | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 14,318 | | | | | | 13,079 | | |
Occupancy | | | | | 2,775 | | | | | | 2,845 | | |
Communications, data processing and equipment | | | | | 3,465 | | | | | | 3,504 | | |
Professional fees | | | | | 581 | | | | | | 887 | | |
FDIC assessment and other regulatory charges | | | | | 406 | | | | | | 507 | | |
Other real estate expenses, including losses on sales and impairments, net | | | | | 13 | | | | | | 172 | | |
Advertising and public relations | | | | | 167 | | | | | | 383 | | |
Postage, printing and supplies | | | | | 314 | | | | | | 300 | | |
Amortization of intangibles | | | | | 475 | | | | | | 475 | | |
Transaction costs | | | | | 919 | | | | | | 1.612 | | |
Other | | | | | 1,492 | | | | | | 1,572 | | |
Total other operating expenses | | | | | 24,925 | | | | | | 25,336 | | |
Income before income tax expense | | | | | 9,057 | | | | | | 9,263 | | |
Income tax expense | | | | | 1,888 | | | | | | 2,061 | | |
Net income | | | | $ | 7,169 | | | | | | 7,202 | | |
Weighted-average number of shares outstanding: | | | | | | | | | | | | | |
Basic | | | | | 7,009,946 | | | | | | 6,964,250 | | |
Diluted | | | | | 7,222,787 | | | | | | 7,208,987 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic | | | | $ | 1.02 | | | | | | 1.03 | | |
Diluted | | | | $ | 0.99 | | | | | | 1.00 | | |
| | | Three Months Ended | | |||||||||
| | | 03/31/22 Unaudited | | | 03/31/21 Unaudited | | ||||||
Interest income: | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 4,457,362 | | | | | $ | 4,441,582 | | |
Investment securities | | | | | 72,697 | | | | | | 96,467 | | |
Interest-bearing deposits in bank | | | | | 39,110 | | | | | | 20,680 | | |
Total interest income | | | | | 4,569,169 | | | | | | 4,558,729 | | |
Interest expense: | | | | | | | | | | | | | |
Deposits | | | | | 425,383 | | | | | | 663,568 | | |
Other | | | | | 74,361 | | | | | | 92,202 | | |
Total interest expense | | | | | 499,744 | | | | | | 755,770 | | |
Net interest income | | | | | 4,069,425 | | | | | | 3,802,959 | | |
Provision for loan losses | | | | | — | | | | | | 140,000 | | |
Net interest income after provision for loan losses | | | | | 4,069,425 | | | | | | 3,662,959 | | |
Noninterest income: | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 125,561 | | | | | | 103,012 | | |
Other service charges, commissions and fees | | | | | 120,670 | | | | | | 120,756 | | |
Mortgage banking income | | | | | 640,863 | | | | | | 1,257,112 | | |
Net gain on sales of SBA Loans | | | | | 45,167 | | | | | | — | | |
Net loss on sales of fixed assets | | | | | 47,426 | | | | | | 5,488 | | |
Net gain on sales of foreclosed assets | | | | | 18,300 | | | | | | 43,381 | | |
Rental income from foreclosed assets | | | | | 28,250 | | | | | | 47,959 | | |
Other income | | | | | 611,459 | | | | | | 277,201 | | |
Total noninterest income | | | | | 1,637,696 | | | | | | 1,854,909 | | |
Noninterest expense: | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 2,976,158 | | | | | | 2,941,249 | | |
Occupancy and equipment expense | | | | | 470,956 | | | | | | 430,013 | | |
Legal and professional expenses | | | | | 145,462 | | | | | | 144,360 | | |
Data processing expenses | | | | | 460,619 | | | | | | 437,962 | | |
Marketing and advertising expenses | | | | | 81,363 | | | | | | 106,485 | | |
Regulatory assessment expenses | | | | | 117,612 | | | | | | 95,170 | | |
Valuation adjustment on foreclosed assets | | | | | — | | | | | | 1,127 | | |
Foreclosed asset expenses | | | | | 32,281 | | | | | | 131,696 | �� | |
Other expenses | | | | | 534,704 | | | | | | 491,035 | | |
Total noninterest expense | | | | | 4,819,155 | | | | | | 4,779,097 | | |
Income before income taxes | | | | | 887,966 | | | | | | 738,771 | | |
Income tax expense/(benefit) | | | | | 252,835 | | | | | | 229,970 | | |
Net Income | | | | $ | 635,131 | | | | | $ | 508,801 | | |
| | | 2022 | | | 2021 | | ||||||
Net income | | | | $ | 7,169 | | | | | | 7,202 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized losses on securities available for sale | | | | | (14,781) | | | | | | (1,753) | | |
Income tax benefit related to other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized losses on securities available for sale | | | | | (3,756) | | | | | | (456) | | |
Total other comprehensive income (loss), net of tax | | | | | (11,025) | | | | | | (1,297) | | |
Comprehensive income (loss) | | | | $ | (3,856) | | | | | | 5,905 | | |
| | | 3/31/2022 Unaudited | | | 3/31/2021 Unaudited | | ||||||
Net income | | | | $ | 635,131 | | | | | $ | 508,801 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized holding losses on securities available for sale arising during the period, net of tax benefit of ($99,361) and ($9,579), respectively | | | | | (292,597) | | | | | | (28,208) | | |
Other comprehensive income (loss) | | | | | (292,597) | | | | | | (28,208) | | |
Comprehensive income | | | | $ | 342,534 | | | | | $ | 480,593 | | |
| | | Common Shares | | | Common Stock | | | Additional Paid in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||
Balance, December 31, 2020 | | | | | 7,023,344 | | | | | $ | 702 | | | | | | 116,825 | | | | | | 23,983 | | | | | | 1,323 | | | | | | 142,833 | | |
Stock-based compensation | | | | | (6,793) | | | | | | — | | | | | | 327 | | | | | | — | | | | | | — | | | | | | 327 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 7,202 | | | | | | — | | | | | | 7,202 | | |
Change in accumulated other comprehensive income (loss), net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,297) | | | | | | (1,297) | | |
Balance, June 30, 2021 | | | | | 7,016,551 | | | | | $ | 702 | | | | | | 117,152 | | | | | | 31,185 | | | | | | 26 | | | | | | 149,065 | | |
Balance, December 31, 2021 | | | | | 7,026,210 | | | | | $ | 703 | | | | | | 117,444 | | | | | | 37,797 | | | | | | (1,984) | | | | | | 153,960 | | |
Stock-based compensation | | | | | (5,361) | | | | | | (1) | | | | | | (116) | | | | | | — | | | | | | — | | | | | | (117) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 7,169 | | | | | | — | | | | | | 7,169 | | |
Change in accumulated other comprehensive income (loss), net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (11,025) | | | | | | (11,025) | | |
Balance, June 30, 2022 | | | | | 7,020,849 | | | | | $ | 702 | | | | | | 117,328 | | | | | | 44,966 | | | | | | (13,009) | | | | | | 149,987 | | |
| | | Unaudited 3/31/2022 | | | Unaudited 3/31/2021 | | ||||||
OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net Income (Loss) | | | | | 635,131 | | | | | | 508,801 | | |
Adjustments to reconcile net income (loss) to net cash Used in Operating Activities: | | | | | | | | | | | | | |
Depreciation, amortization, and accretion | | | | | (195,319) | | | | | | (208,896) | | |
Provision for loan losses | | | | | — | | | | | | 140,000 | | |
Provision for deferred taxes | | | | | 252,835 | | | | | | 229,970 | | |
Valuation adjustment on foreclosed assets | | | | | — | | | | | | 1,127 | | |
Net gain on sale of foreclosed assets | | | | | (18,300) | | | | | | (43,381) | | |
Net (gain) loss on sales of premises and equipment | | | | | (47,426) | | | | | | (5,488) | | |
Stock-based compensation | | | | | 158,105 | | | | | | 109,175 | | |
Originations of mortgage loans held for sale | | | | | (14,115,588) | | | | | | (32,711,586) | | |
Proceeds from sales of mortgage loans held for sale | | | | | 16,895,798 | | | | | | 35,364,552 | | |
Gain on sales of mortgage loans held for sale | | | | | (600,549) | | | | | | (1,361,487) | | |
Gain on sales of SBA Loans | | | | | (45,167) | | | | | | — | | |
Changes in: | | | | | | | | | | | | | |
Accrued interest receivable | | | | | (35,125) | | | | | | 96,658 | | |
Accrued interest payable | | | | | (3,397) | | | | | | (24,256) | | |
Other assets | | | | | (91,714) | | | | | | (16,477) | | |
Other liabilities | | | | | (888,363) | | | | | | (978,907) | | |
BOLI Investment | | | | | (4,256) | | | | | | — | | |
Net cash used in operating activities | | | | | 1,896,665 | | | | | | 1,099,805 | | |
INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchase of securities available for sale | | | | | (12,000,000) | | | | | | — | | |
Purchase of BOLI investment | | | | | (10,000,000) | | | | | | — | | |
Proceeds from maturities and principal paydowns of securities AFS | | | | | 848,753 | | | | | | 3,053,652 | | |
(Increase) decrease in restricted equity securities | | | | | (11,900) | | | | | | 560,000 | | |
Net (increase) decrease in loans | | | | | (19,542,784) | | | | | | (16,477,926) | | |
Proceeds from sales of foreclosed assets | | | | | 47,650 | | | | | | 1,127,579 | | |
Proceeds from sales of premises and equipment | | | | | 246,873 | | | | | | 666,492 | | |
Purchase of premises and equipment | | | | | (178,350) | | | | | | (26,155) | | |
Net cash provided by (used in) investing activities | | | | | (40,589,758) | | | | | | (11,096,358) | | |
FINANCING ACTIVITIES | | | | | | | | | | | | | |
Net increase (decrease) in deposits | | | | | 16,369,191 | | | | | | 51,959,743 | | |
Net increase (decrease) in other borrowings (PPPLF) | | | | | — | | | | | | (5,295,013) | | |
Federal Home Loan Bank repayments | | | | | — | | | | | | (5,000,000) | | |
Net cash provided by (used in) financing activities | | | | | 16,369,191 | | | | | | 41,664,730 | | |
Net change in cash and cash equivalents | | | | | (22,323,902) | | | | | | 31,668,177 | | |
Cash and cash equivalents at beginning of year | | | | | 100,237,659 | | | | | | 79,896,567 | | |
Cash and cash equivalents at end of period | | | | | 77,913,757 | | | | | | 111,564,744 | | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | | | | | | | | | | | | | |
Interest paid | | | | | 503,141 | | | | | | 780,026 | | |
| | | 2022 | | | 2021 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 7,169 | | | | | | 7,202 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation, amortization and accretion | | | | | 2,345 | | | | | | 2,343 | | |
Provision for loan losses | | | | | — | | | | | | — | | |
Deferred income tax expense | | | | | 1,874 | | | | | | 2,043 | | |
Loss on sale and disposal of premises and equipment | | | | | 37 | | | | | | 10 | | |
Loss (gain) on sale of other real estate owned | | | | | — | | | | | | 101 | | |
Writedowns of other real estate owned | | | | | — | | | | | | 51 | | |
Stock-based compensation | | | | | (117) | | | | | | 327 | | |
Increase in cash surrender value of bank owned life insurance | | | | | (470) | | | | | | (440) | | |
Change in assets and liabilities: | | | | | | | | | | | | | |
Other assets and accrued interest receivable | | | | | 890 | | | | | | 794 | | |
Accrued expenses and other liabilities | | | | | 4,575 | | | | | | (1,717) | | |
Net cash provided by operating activities | | | | | 16,303 | | | | | | 10,714 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Proceeds from maturities and calls of securities available for sale | | | | | 23,258 | | | | | | 29,941 | | |
Purchases of securities available for sale | | | | | (34,627) | | | | | | (37,058) | | |
Purchases of other investments | | | | | (41) | | | | | | — | | |
Proceeds from redemption of other investments | | | | | — | | | | | | 417 | | |
Net change in loans | | | | | (55,396) | | | | | | 11,422 | | |
Proceeds from sales of other real estate owned | | | | | — | | | | | | 1,409 | | |
Purchase of bank owned life insurance policies | | | | | — | | | | | | (5,000) | | |
Purchases of premises and equipment | | | | | (138) | | | | | | (1,053) | | |
Proceeds from sale of premises and equipment | | | | | 75 | | | | | | 199 | | |
Net cash used in investing activities | | | | | (66,869) | | | | | | 277 | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Net change in deposits | | | | | 59,010 | | | | | | 72,911 | | |
Net change in securities sold under agreements to repurchase | | | | | (1,722) | | | | | | 2,055 | | |
Proceeds from line of credit | | | | | 500 | | | | | | 8,000 | | |
Redemption of subordinated notes | | | | | — | | | | | | (6,500) | | |
Net cash provided by financing activities | | | | | 57,788 | | | | | | 76,466 | | |
Net change in cash and cash equivalents | | | | | 7,222 | | | | | | 87,457 | | |
Cash and cash equivalents at beginning of year | | | | | 291,202 | | | | | | 218,625 | | |
Cash and cash equivalents at beginning of year | | | | | 298,424 | | | | | | 306,082 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Cash paid during the year for interest | | | | | 2,227 | | | | | | 3,209 | | |
Noncash investing and financing activities: | | | | | | | | | | | | | |
Transfer of premises and equipment to other real estate owned | | | | | — | | | | | | 500 | | |
| | | Preferred Stock Class A | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||||||||||||||
| | | Shares | | | Par Value | | | Shares | | | Par Value | | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 (Audited) | | | | | 5,405,604 | | | | | $ | 5,405,604 | | | | | | 14,732,382 | | | | | $ | 14,732,382 | | | | | | 120,496,523 | | | | | | (62,123,961) | | | | | | 339,774 | | | | | | 78,850,322 | | |
Net income/(loss) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 508,801 | | | | | | | | | | | | 508,801 | | |
Stock-based Compensation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 109,175 | | | | | | | | | | | | | | | | | | 109,175 | | |
Other comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (28,208) | | | | | | (28,208) | | |
Balance, March 31, 2021 (Unaudited) | | | | | 5,405,604 | | | | | $ | 5,405,604 | | | | | | 14,732,382 | | | | | $ | 14,732,382 | | | | | $ | 120,605,698 | | | | | | (61,615,160) | | | | | $ | 311,566 | | | | | $ | 79,440,090 | | |
Balance, December 31, 2021 (Audited) | | | | | 5,405,604 | | | | | $ | 5,405,604 | | | | | | 14,732,382 | | | | | $ | 14,732,382 | | | | | | 120,987,926 | | | | | | (59,831,403) | | | | | $ | 134,602 | | | | | | 81,429,111 | | |
Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 635,131 | | | | | | | | | | | | 635,131 | | |
Stock-based Compensation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 158,105 | | | | | | | | | | | | | | | | | | 158,105 | | |
Other comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (292,597) | | | | | | (292,597) | | |
Balance, March 31, 2022 (Unaudited) | | | | | 5,405,604 | | | | | $ | 5,405,604 | | | | | | 14,732,382 | | | | | $ | 14,732,382 | | | | | $ | 121,146,031 | | | | | | (59,196,272) | | | | | $ | (157,995) | | | | | $ | 81,929,750 | | |
| Signature | | | Title | | | Date | |
| /s/ | |||||||
M. Ray (Hoppy) Cole, Jr. | | | | | | |||
| /s/ Donna T. (Dee Dee) Lowery Donna T. (Dee Dee) Lowery | | | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | | | | |
| /s/ Rodney D. Bennett Rodney D. Bennett | | | Director | | | | |
| /s/ David W. Bomboy David W. Bomboy | | | Director | | | | |
| /s/ E. Ricky Gibson E. Ricky Gibson | | | Director | | | October 11, 2022 | |
| /s/ Charles R. Lightsey Charles R. Lightsey | | | Director | | | October 11, 2022 | |
| Signature | | | Title | | | Date | |
| /s/ | | | Director | | | | |
| /s/ Fred A. McMurry Fred A. McMurry | | | Director | | | | |
| /s/ Thomas E. Mitchell Thomas E. Mitchell | | | Director | | | | |
| /s/ Renee Moore Renee Moore | | | Director | | | | |
| /s/ Ted E. Parker Ted E. Parker | | | Director | | | | |
| /s/ J. Douglas Seidenburg J. Douglas Seidenburg | | | Director | | | | |
| /s/ Andrew D. Stetelman Andrew D. Stetelman | | | Director | | | |