DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 09, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GNTY | ||
Entity Registrant Name | GUARANTY BANCSHARES, INC. | ||
Entity Central Index Key | 0001058867 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Common Stock, Shares Outstanding | 12,089,639 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity File Number | 001-38087 | ||
Entity Tax Identification Number | 75-1656431 | ||
Entity Address, Address Line One | 16475 Dallas Parkway, Suite 600 | ||
Entity Address, City or Town | Addison | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75001 | ||
City Area Code | 888 | ||
Local Phone Number | 572 - 9881 | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | TX | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 304.9 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2021 . | ||
Auditor Name | Whitley Penn LLP | ||
Auditor Location | Plano, Texas | ||
Auditor Firm ID | 726 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | |||
Cash and due from banks | $ 42,979 | $ 47,836 | |
Federal funds sold | 431,975 | 218,825 | |
Interest-bearing deposits | 24,651 | 85,130 | |
Total cash and cash equivalents | 499,605 | 351,791 | |
Securities available for sale | 342,206 | 380,795 | |
Securities held to maturity | 184,263 | 0 | |
Loans held for sale | 4,129 | 5,542 | |
Loans, net of allowance for credit losses of $30,492 and $33,619, respectively | 1,876,076 | 1,831,737 | |
Accrued interest receivable | 8,901 | 9,834 | |
Premises and equipment, net | 53,470 | 55,212 | |
Other real estate owned | 0 | 404 | |
Cash surrender value of life insurance | 37,141 | 35,510 | |
Core deposit intangible, net | 2,313 | 2,999 | |
Goodwill | 32,160 | 32,160 | |
Other assets | 45,806 | 34,848 | |
Total assets | 3,086,070 | 2,740,832 | |
Deposits | |||
Noninterest-bearing | 1,014,518 | 779,740 | |
Interest-bearing | 1,656,309 | 1,506,650 | |
Total deposits | 2,670,827 | 2,286,390 | |
Securities sold under agreements to repurchase | 14,151 | 15,631 | |
Accrued interest and other liabilities | 26,568 | 25,257 | |
Line of credit | 5,000 | 12,000 | |
Federal Home Loan Bank advances | 47,500 | 109,101 | |
Subordinated debentures | 19,810 | 19,810 | |
Total liabilities | 2,783,856 | 2,468,189 | |
Commitments and contingencies (see Note 16) | |||
Shareholders' equity | |||
Preferred stock, $5.00 par value, 15,000,000 shares authorized, no shares issued | 0 | 0 | |
Common stock, $1.00 par value, 50,000,000 shares authorized, 14,138,978 and 12,951,676 shares issued, and 12,122,717 and 10,935,415 shares outstanding, respectively | 14,139 | 12,952 | |
Additional paid-in capital | 225,544 | 188,032 | |
Retained earnings | 107,645 | 113,449 | |
Treasury stock, 2,016,261 shares at cost | (51,419) | (51,419) | |
Accumulated other comprehensive income | 6,305 | 9,629 | |
Total shareholders' equity | 302,214 | 272,643 | |
Total liabilities and shareholders' equity | $ 3,086,070 | $ 2,740,832 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 30,433 | $ 33,619 |
Preferred stock, par value (in USD per share) | $ 5 | $ 5 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 14,138,978 | 12,951,676 |
Common stock, shares outstanding (in shares) | 12,122,717 | 10,935,415 |
Treasury stock (in shares) | 2,016,261 | 2,016,261 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income | |||
Loans, including fees | $ 92,497 | $ 93,335 | $ 90,980 |
Securities | |||
Taxable | 4,762 | 4,565 | 5,916 |
Nontaxable | 4,218 | 4,189 | 3,830 |
Federal funds sold and interest-bearing deposits | 1,073 | 953 | 1,835 |
Total interest income | 102,550 | 103,042 | 102,561 |
Interest expense | |||
Deposits | 5,651 | 11,624 | 21,611 |
FHLB advances and federal funds purchased | 413 | 470 | 1,389 |
Subordinated debentures | 700 | 702 | 648 |
Other borrowed money | 228 | 264 | 43 |
Total interest expense | 6,992 | 13,060 | 23,691 |
Net interest income | 95,558 | 89,982 | 78,870 |
(Reversal) Provision for credit losses | (1,700) | 13,200 | 1,250 |
Net interest income after provision for credit losses | 97,258 | 76,782 | 77,620 |
Noninterest income | |||
Service charges | 3,772 | 3,064 | 3,715 |
Net realized loss on securities transactions | 0 | 0 | (22) |
Net realized gain on sale of loans | 5,528 | 6,834 | 2,850 |
Merchant and debit card fees | 6,717 | 5,515 | 4,264 |
Other income | 8,559 | 7,624 | 6,155 |
Total noninterest income | 24,576 | 23,037 | 16,962 |
Noninterest expense | |||
Employee compensation and benefits | 42,345 | 37,193 | 35,907 |
Occupancy expenses | 10,944 | 10,220 | 9,834 |
Other expenses | 19,989 | 19,109 | 16,784 |
Total noninterest expense | 73,278 | 66,522 | 62,525 |
Income before income taxes | 48,556 | 33,297 | 32,057 |
Income tax provision | 8,750 | 5,895 | 5,778 |
Net earnings | $ 39,806 | $ 27,402 | $ 26,279 |
Basic earnings per share (in USD per share) | $ 3.30 | $ 2.25 | $ 2.05 |
Diluted earnings per share (in USD per share) | $ 3.26 | $ 2.24 | $ 2.05 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 39,806 | $ 27,402 | $ 26,279 |
Other comprehensive (loss) income: | |||
Unrealized (losses) gains on securities, net of tax | (4,663) | 12,047 | 7,502 |
Unrealized gains (losses) on interest rate swaps | |||
Unrealized holding gains (losses) arising during the period | 873 | (625) | (133) |
Reclassification of realized losses on interest rate swap termination from accumulated other comprehensive income | 466 | 0 | 0 |
Unrealized gains (losses) on interest rate swaps | 1,339 | (625) | (133) |
Total other comprehensive (loss) income | (3,324) | 11,422 | 7,369 |
Comprehensive income | $ 36,482 | $ 38,824 | $ 33,648 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Impact of adoption of ASC 326 | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsImpact of adoption of ASC 326 | Treasury Stock | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2018 | $ 244,583 | $ 12,835 | $ 185,174 | $ 80,088 | $ (24,352) | $ (9,162) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 26,279 | 26,279 | ||||||
Other comprehensive income (loss) | 7,369 | 7,369 | ||||||
10% stock dividend | 0 | |||||||
Exercise of stock options | 925 | 39 | 886 | |||||
Restricted stock grants | 31 | (31) | ||||||
Purchase of treasury stock | (10,140) | 10,140 | ||||||
Stock based compensation | 663 | 663 | ||||||
Dividends: Common Stock | (8,128) | 8,128 | ||||||
Ending balance at Dec. 31, 2019 | 261,551 | 12,905 | 186,692 | 98,239 | (34,492) | (1,793) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 27,402 | 27,402 | ||||||
Other comprehensive income (loss) | 11,422 | 11,422 | ||||||
10% stock dividend | 0 | |||||||
Exercise of stock options | 638 | 27 | 611 | |||||
Restricted stock grants | 20 | (20) | ||||||
Purchase of treasury stock | (16,927) | 16,927 | ||||||
Stock based compensation | 749 | 749 | ||||||
Dividends: Common Stock | (8,599) | 8,599 | ||||||
Ending balance at Dec. 31, 2020 | 272,643 | $ (3,593) | 12,952 | 188,032 | 113,449 | $ (3,593) | (51,419) | 9,629 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 39,806 | 39,806 | ||||||
Other comprehensive income (loss) | (3,324) | (3,324) | ||||||
10% stock dividend | 35,947 | 1,094 | 34,853 | (35,947) | ||||
Exercise of stock options | 2,019 | 90 | 1,929 | |||||
Restricted stock grants | 3 | (3) | ||||||
Stock based compensation | 733 | 733 | ||||||
Dividends: Common Stock | (9,663) | 9,663 | ||||||
Ending balance at Dec. 31, 2021 | $ 302,214 | $ 14,139 | $ 225,544 | $ 107,645 | $ (51,419) | $ 6,305 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (in USD per share) | $ 0.80 | $ 0.71 | $ 0.64 | |
Impact of adoption of ASC 326, tax | $ 955 | |||
Stock dividend rate percentage | 10.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net earnings | $ 39,806 | $ 27,402 | $ 26,279 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 4,358 | 4,117 | 3,886 |
Amortization | 1,154 | 1,349 | 1,378 |
Deferred taxes | (143) | (3,056) | (534) |
Premium amortization, net of discount accretion | 4,368 | 3,988 | 3,820 |
Net realized loss on securities transactions | 0 | 0 | 22 |
Gain on sale of loans | (5,528) | (6,834) | (2,850) |
(Reversal) Provision for credit losses | (1,700) | 13,200 | 1,250 |
Origination of loans held for sale | (118,500) | (161,169) | (76,011) |
Proceeds from loans held for sale | 125,441 | 164,829 | 78,288 |
Write-down of other real estate and repossessed assets | 6 | 358 | 343 |
Net gain on sale of premises, equipment, other real estate owned and other assets | (23) | 37 | 78 |
Stock based compensation | 733 | 749 | 663 |
Gain on BOLI death benefits | (277) | 0 | 0 |
Net change in accrued interest receivable and other assets | (8,565) | (3,908) | (16,698) |
Net change in accrued interest payable and other liabilities | 2,414 | 1,459 | 12,132 |
Net cash (used in) provided by operating activities | 43,544 | 42,521 | 32,046 |
Securities available for sale: | |||
Purchases | (1,223,595) | (662,046) | (706,238) |
Proceeds from Sales | 0 | 0 | 3,957 |
Proceeds from maturities and principal repayments | 1,079,462 | 657,653 | 730,272 |
Securities held to maturity: | |||
Purchases | (15,057) | 0 | 0 |
Proceeds from maturities and principal repayments | 890 | 3,024 | 5,646 |
Net originations of loans | (43,148) | (159,357) | (46,940) |
Purchases of premises and equipment | (2,896) | (5,902) | (5,090) |
Proceeds from BOLI death benefit | 464 | 0 | 0 |
Proceeds from sale of premises, equipment, other real estate owned and other assets | 1,202 | 860 | 653 |
Net cash provided by investing activities | (202,678) | (165,768) | (17,740) |
Cash flows from financing activities | |||
Net change in deposits | 384,437 | 329,586 | 85,324 |
Net change in securities sold under agreements to repurchase | (1,480) | 4,531 | (1,128) |
Proceeds from FHLB advances | 160,000 | 390,000 | 260,500 |
Repayment of FHLB advances | (221,601) | (336,017) | (320,518) |
Proceeds from line of credit | 10,000 | 30,000 | 0 |
Repayment of line of credit | (17,000) | (18,000) | 0 |
Proceeds from issuance of debentures | 0 | 10,000 | 0 |
Repayments of debentures | 0 | (1,000) | (2,000) |
Purchase of treasury stock | 0 | (16,927) | (10,140) |
Exercise of stock options | 2,019 | 638 | 925 |
Cash dividends paid | (9,427) | (8,487) | (8,065) |
Net cash used in financing activities | 306,948 | 384,324 | 4,898 |
Net change in cash and cash equivalents | 147,814 | 261,077 | 19,204 |
Cash and cash equivalents at beginning of period | 351,791 | 90,714 | 71,510 |
Cash and cash equivalents at end of period | 499,605 | 351,791 | 90,714 |
Supplemental disclosures of cash flow information | |||
Interest paid | 7,315 | 13,898 | 23,700 |
Income taxes paid | 9,650 | 8,245 | 5,536 |
Supplemental schedule of noncash investing and financing activities | |||
Cash dividends accrued | 2,424 | 2,188 | 2,076 |
Lease right of use assets obtained in exchange for lease liabilities | 1,085 | 1,737 | 11,554 |
Available for sale securities transferred to held to maturity | 172,292 | 0 | 0 |
Transfer of loans to other real estate owned and repossessed assets | 509 | 666 | 340 |
Stock dividend | $ 35,947 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies followed in the preparation of the consolidated financial statements. The policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Principles of Consolidation : The consolidated financial statements include the accounts of Guaranty Bancshares, Inc. and its wholly-owned subsidiary Guaranty Bank & Trust, N.A., (the “Bank” or "Guaranty Bank & Trust"). All entities combined are collectively referred to as the “Company”. All significant intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation : Guaranty Bank & Trust has six wholly-owned non-bank subsidiaries, Guaranty Company, Inc., G B COM, INC., 2800 South Texas Avenue LLC, Pin Oak Realty Holdings, Inc., Pin Oak Asset Management, LLC (formerly Pin Oak Energy Holdings, LLC) and White Oak Aviation, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. Nature of Operations : Guaranty Bancshares, Inc. (“Guaranty”) is a bank holding company headquartered in Mount Pleasant, Texas that provides, through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A. (the “Bank”), a broad array of financial products and services to individuals and corporate customers, primarily in its markets of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The terms “the Company,” “we,” “us” and “our” mean Guaranty and its subsidiaries, when appropriate. The Company’s main sources of income are derived from granting loans throughout its markets and investing in securities issued or guaranteed by the U.S. Treasury, U.S. government agencies and state and political subdivisions. The Company’s primary lending products are real estate, commercial and consumer loans. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ abilities to honor contracts is dependent on the economy of the State of Texas and primarily the economies of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The Company primarily funds its lending activities with deposit operations. The Company’s primary deposit products are checking accounts, money market accounts and certificates of deposit. Use of Estimates : To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. Actual future results could differ. Cash and Cash Equivalents : Cash and cash equivalents include cash, due from banks, interest-bearing deposits with other banks that have initial maturities less than 90 days and federal funds sold. Net cash flows are reported for loan and deposit transactions, and short-term borrowings with initial maturities less than 90 days. Marketable Securities : Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Management determines the appropriate classification of securities at the time of purchase or transfer. Interest income includes amortization and accretion of purchase premiums and discounts. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities that are in an unrealized loss position for credit-related factors, in order to determine if an allowance for credit losses is required. This evaluation is performed on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, any previous allowance for credit loss is written off and the amortized cost basis of the securities is written down to fair value, through earnings. For debt securities that do not meet the aforementioned criteria, management will determine if the decline in fair value has resulted from a credit loss or other factors and apply the following: 1) recognize an allowance for credit loss by a charge to earnings for the credit-related component of the decline in fair value (subject to a floor of the excess of the amortized cost over fair value) and 2) recognize the noncredit-related component of the fair value decline, if any, in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. To the extent that expected cash flows improve, the standard permits reversal of allowance amounts in the current period earnings. Non-marketable Securities : Other securities, such as stock in The Independent Bankers Financial Corporation, the Federal Reserve Bank, and the Federal Home Loan Bank are accounted for on the cost basis and are carried in other assets. Stock in Valesco Commerce Street Capital, L.P., Valesco Fund II, L.P., Independent Bankers Capital Fund III, L.P., Independent Bankers Capital Fund IV, L.P., Lightspring Capital I, L.P. and Pharos Capital Partners IV-A, L.P. are accounted for on the cost basis in other assets. Loans Held for Sale : Certain residential mortgage loans are originated for sale in the secondary mortgage loan market. These loans are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. To mitigate the interest rate risk, fixed commitments may be obtained at the time loans are originated or identified for sale. All sales are made without recourse. Gains or losses on sales of mortgage loans are recognized at settlement dates based on the difference between the selling price and the carrying value of the related mortgage loans sold. Loans : Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for credit losses, discounts and any deferred fees or costs on originated loans. Interest income was reported on the level-yield interest method and included amortization of net deferred loan fees and costs over the loan term. Nonaccrual Loans : Loans are placed on nonaccrual status at ninety days past due or as determined by management, and interest is considered a loss. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. COVID-19 : On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, of which virus variants continue to spread through the United States and around the world. The declaration of a global pandemic indicates that almost all public commerce and business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The outbreak of COVID-19, and its subsequent variants, could adversely impact a broad range of industries in which the Company’s customers operate and impair their ability to fulfill their financial obligations to the Company. Government leaders and the Federal Reserve have taken several actions designed to mitigate the economic fallout resulting from the coronavirus. The Coronavirus Aid, Relief and Economic Security (“CARES”) Act, signed into law on March 27, 2020, authorized more than $ 2 trillion to battle COVID-19 and its economic effects, including immediate cash relief for individual citizens, loan programs for small businesses, support for hospitals and other medical providers, and various types of economic relief for impacted businesses and industries. The goal of CARES Act was to prevent severe economic downturn. The CARES Act also provided for temporary interest only or payment deferral modifications for loans without classifying them as troubled debt restructurings under current accounting rules. Additional government-backed hardship relief measures were signed into law in early 2021, as well as extension of many of the CARES Act provisions, throughout 2021. Due to the COVID-19 pandemic, market interest rates declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time. On March 16, 2020, the Federal Open Market Committee reduced the target federal funds rate range to 0.00 % to 0.25 %, at which it remains as of December 31, 2021. These reductions in interest rates and other effects of the COVID-19 outbreak may adversely affect the Company’s financial condition and results of operations, as well as business and consumer confidence. As a result of the spread of COVID-19 and its variants, economic uncertainties have arisen which can negatively impact net interest income and noninterest income. Other financial impacts could occur though such potential impact remains unknown at this time. Allowance for Credit Losses : Held to Maturity Debt Securities The allowance for credit losses on held to maturity securities is a contra-asset valuation account that is deducted from the amortized cost basis of held to maturity securities to present management's best estimate of the net amount expected to be collected. Held to maturity securities are charged-off against the allowance when deemed uncollectible. Adjustments to the allowance are reported in our income statement as a component of provision for credit losses. Management measures expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management has made the accounting policy election to exclude accrued interest receivable on held to maturity securities from the estimate of credit losses. Available for Sale Debt Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the securities amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of the cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected are less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provisions for or reversal of credit loss expense. Losses are charged against the allowance when management believes a security is uncollectible or when either of the criteria regarding intent to sell or required to sell is met. Accrued interest receivable on securities is excluded from the estimate of credit losses. Loans The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected over the lifetime of the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. We use the weighted-average remaining maturity method (WARM method) as the basis for the estimation of expected credit losses. The WARM method uses a historical average annual charge-off rate. This average annual charge-off rate contains loss content over a historical lookback period and is used as a foundation for estimating the credit loss reserve for the remaining outstanding balances of loans in a segment at the balance sheet date. The average annual charge-off rate is applied to the contractual term, further adjusted for estimated prepayments, to determine the unadjusted historical charge-off rate. The calculation of the unadjusted historical charge-off rate is then adjusted for current conditions and for reasonable and supportable forecast periods. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in our historic loss factors. The allowance for credit losses is measured on a collective (pool or segment) basis when similar risk characteristics exist. Our loan portfolio segments include both regulatory call report codes and by internally identified risk ratings for our commercial loan segments and by delinquency status for our consumer loan segments. We also have separately identified our mortgage warehouse loans, internally originated SBA loans, SBA loans acquired from Westbound Bank in 2018 and loans originated under the Paycheck Protection Program ("PPP") for inherent risk analysis. Accrued interest receivable on loans is excluded from the estimate of credit losses. Below is a summary of the segments and certain of the inherent risks in the Company’s loan portfolio: Commercial and industrial: This portfolio segment includes general secured and unsecured commercial loans which are not secured by real estate or may be secured by real estate but made for the primary purpose of a short-term revolving line of credit. Credit risks inherent in this portfolio segment include fluctuations in the local and national economy. Construction and development: This portfolio segment includes all loans for the purpose of construction, including both business and residential structures; and real estate development loans, including non-agricultural vacant land. Credit risks inherent in this portfolio include fluctuations in property values, unemployment, and changes in the local and national economy. Commercial real estate: The commercial real estate portfolio segment includes all commercial loans that are secured by real estate, other than those included in the construction and development, farmland, multi-family, and 1-4 family residential segments. Risks inherent in this portfolio segment include fluctuations in property values and changes in the local and national economy impacting the sale or lease of the finished structures. Farmland: The farmland portfolio includes loans that are secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing & pastureland and timberland. This segment includes land with a 1-4 family residential structure if the value of the land exceeds the value of the residence. Risks inherent in this portfolio segment include adverse changes in climate, fluctuations in feed and cattle prices and changes in property values. Consumer: This portfolio segment consists of non-real estate loans to consumers. This includes secured and unsecured loans such as auto and personal loans. The risks inherent in this portfolio segment include those factors that would impact the consumer’s ability to meet their obligations under the loan. These include increases in the local unemployment rate and fluctuations in consumer and business sales. 1-4 family residential: This portfolio segment includes loans to both commercial and consumer borrowers secured by real estate for housing units of up to four families. Risks inherent in this portfolio segment include increases in the local unemployment rate, changes in the local economy and factors that would impact the value of the underlying collateral, such as changes in property values. Multi-family residential: This portfolio segment includes loans secured by structures containing five or more residential housing units. Risks inherent in this portfolio segment include increases to the local unemployment rate, changes in the local economy, and factors that would impact property values. Agricultural: The agricultural portfolio segment includes loans to individuals and companies in the dairy and cattle industries and farmers. Loans in the segment are secured by collateral including cattle, crops and equipment. Risks inherent in this portfolio segment include adverse changes in climate and fluctuations in feed and cattle prices. The following groups of loans are considered to carry specific similar inherent risk characteristics, which the Bank considers separately during its calculation of the allowance for credit losses. These groups of loans are reported within the segments identified in the previous table. Mortgage Warehouse: The mortgage warehouse portfolio includes loans in which we purchase mortgage loan ownership interests from unaffiliated mortgage originators that are generally held by us for a period of less than 30-days, typically 5-10 days before they are sold to an approved investor. These loans are consistently underwritten based on standards established by the approved investor. Risks inherent in this portfolio include borrower or mortgage originator fraud. SBA – Acquired Loans The SBA – acquired loans segment consists of partially SBA guaranteed loans that were acquired from Westbound Bank in June 2018. These loans are commercial real estate and commercial and industrial in nature and were underwritten with guidelines that are less conservative than our Company. Risks inherent in this portfolio include increases in interest rates, as most are variable rate loans, generally lower levels of borrower equity, less conservative underwriting guidelines, fluctuations in real estate values and changes in the local and national economy. SBA – Originated Loans The SBA – originated loans segment consists of loans that are partially guaranteed by the SBA and were originated and underwritten by Guaranty Bank & Trust loan officers. Risks inherent in this portfolio include increases in interest rates due to variable rate structures, generally lower levels of borrower equity or net worth, fluctuations in real estate values and changes in the local and national economy. SBA – Paycheck Protection Program Loans Loans originated under the PPP are 100 % government guaranteed by the SBA. As a result, the loans are excluded from the segments above and a minimal reserve estimate was applied to this segment of loans for purposes of calculating the credit loss provision. In general, the loans in our portfolio have low historical credit losses. The credit quality of loans in our portfolio is impacted by delinquency status and debt service coverage generated by our borrowers’ businesses and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, these types of loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process we refer to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. We consider the majority of our consumer type loans to be “seasoned” and that the credit quality and current level of delinquencies and defaults represents the level of reserve needed in the allowance for credit losses. If delinquencies and defaults were to increase, we may be required to increase our provision for credit losses, which would adversely affect our results of operations and financial condition. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial and industrial, construction, and commercial real estate loans. Internal risk ratings are a key factor that impact management’s estimates of loss factors used in determining the amount of the allowance for credit losses. Internal risk ratings are updated on a continuous basis. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Credit Quality Indicators - The Company monitors the credit quality of the loans in the various segments by identifying and evaluating credit quality indicators specific to each segment class. This information is incorporated into management’s analysis of the adequacy of the allowance for credit losses. Information for the credit quality indicators is updated monthly or quarterly for classified assets and at least annually for the remainder of the portfolio. The following is a discussion of the primary credit quality indicators most closely monitored for the loan portfolio, by class: Commercial and industrial: In assessing risk associated with commercial loans, management considers the business’s cash flow and the value of the underlying collateral to be the primary credit quality indicators. Construction and development: In assessing the credit quality of construction loans, management considers the ability of the borrower to make principal and interest payments in the event that they are unable to sell the completed structure to be a primary credit quality indicator. For real estate development loans, management also considers the likelihood of the successful sale of the constructed properties in the development. Commercial real estate: Management considers the strength of the borrower’s cash flows, changes in property values and occupancy status to be key credit quality indicators of commercial real estate loans. Farmland: In assessing risk associated with farmland loans, management considers the borrower’s cash flows and underlying property values to be key credit quality indicators. Consumer: Management considers delinquency status to be the primary credit quality indicator of consumer loans. Others include the debt to income ratio of the borrower, the borrower’s credit history, the availability of other credit to the borrower, the borrower’s past-due history, and, if applicable, the value of the underlying collateral to be primary credit quality indicators. 1-4 family residential: Management considers delinquency status to be the primary credit quality indicator of 1-4 family residential loans. Others include changes in the local economy, changes in property values, and changes in local unemployment rates to be key credit quality indicators of the loans in the 1-4 family residential loan segment. Multi-family residential: Management considers changes in the local economy, changes in property values, vacancy rates and changes in local unemployment rates to be key credit quality indicators of the loans in the multifamily loan segment. Agricultural: In assessing risk associated with agricultural loans, management considers the borrower’s cash flows, the value of the underlying collateral and sources of secondary repayment to be primary credit quality indicators. From time to time, we modify our loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by us that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. We review each troubled debt restructured loan and determine on a case-by-case basis if the loan can be grouped with its like segment for allowance consideration or whether it should be individually evaluated for a specific allowance for credit loss allocation. If individually evaluated, an allowance for credit loss allocation is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. In response to the COVID-19 pandemic, the Bank provided financial relief to many of its customers through a 3-month principal and interest payment deferral program or an up to 6-month interest only program. Pursuant to the CARES Act and the April 7, 2020 Interagency guidance and GAAP, these loan modifications, and certain subsequent modifications, are not considered to be troubled debt restructurings. Reserve for Unfunded Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets. Maintenance, repairs and minor improvements are charged to noninterest expense as incurred. The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy: Bank Buildings Up to 40 years Equipment to 10 years Furniture and Fixtures to 7 years Software to 5 years Automobiles to 4 years Other Real Estate Owned : Assets acquired through, or in lieu of, foreclosure are initially recorded at fair value, less estimated carrying and selling costs, when acquired, establishing a new cost basis. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Goodwill and Other Intangible Assets : Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Impairment is tested for annually and exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At the measurement date, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Core deposit intangibles represent premiums paid on acquired deposits based on the estimated fair value of the deposits at the time of purchase. These premiums are amortized over a ten year period. Bank Owned Life Insurance : The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income Taxes : Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Fair Values of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 2 - MARKETABLE SECURITIES The following tables summarize the amortized cost and fair value of available for sale and held to maturity securities as of December 31, 2021 and securities available for sale as of December 31, 2020 and the corresponding amounts of gross unrealized gains and losses: December 31, 2021 Amortized Gross Gross Estimated Available for sale: U.S. government agencies $ 10,013 $ — $ 42 $ 9,971 Corporate bonds 35,080 940 85 35,935 Mortgage-backed securities 221,610 1,477 1,779 221,308 Collateralized mortgage obligations 74,925 971 904 74,992 Total available for sale $ 341,628 $ 3,388 $ 2,810 $ 342,206 Held to maturity: Municipal securities $ 181,310 $ 8,364 $ 118 $ 189,556 Mortgage-backed securities 2,953 — 37 2,916 Total held to maturity $ 184,263 $ 8,364 $ 155 $ 192,472 December 31, 2020 Amortized Gross Gross Estimated Available for sale: Corporate bonds $ 29,608 $ 1,382 $ 8 $ 30,982 Municipal securities 164,668 11,036 — 175,704 Mortgage-backed securities 104,210 3,041 87 107,164 Collateralized mortgage obligations 64,611 2,335 1 66,945 Total available for sale $ 363,097 $ 17,794 $ 96 $ 380,795 From time to time, we have reclassified certain securities from available for sale to held to maturity. Such transfers are made at fair value at the date of transfer. The net unrealized holding gains at the date of transfer are retained in other comprehensive income and in the carrying value of the held to maturity securities and are amortized over the remaining life of the security. The net unamortized, unrealized gain remaining on transferred securities included in accumulated other comprehensive income in the accompanying balance sheet totaled $ 8,860 at December 31, 2021. This amount will be amortized out of accumulated other comprehensive income over the remaining life of the underlying securities as an adjustment of the yield on those securities. There is no allowance for credit losses recorded for our available for sale or held to maturity debt securities as of December 31, 2021 or 2020. Information pertaining to securities with gross unrealized losses as of December 31, 2021 and 2020, for which no allowance for credit losses has been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is detailed in the following tables: Less Than 12 Months 12 Months or Longer Total December 31, 2021 Gross Estimated Gross Estimated Gross Estimated Available for sale: U.S. government agencies $ ( 42 ) $ 9,971 $ — $ — $ ( 42 ) $ 9,971 Corporate bonds ( 85 ) 11,418 — — ( 85 ) 11,418 Mortgage-backed securities ( 1,383 ) 144,367 ( 396 ) 11,317 ( 1,779 ) 155,684 Collateralized mortgage obligations ( 904 ) 40,172 — — ( 904 ) 40,172 Total available for sale $ ( 2,414 ) $ 205,928 $ ( 396 ) $ 11,317 $ ( 2,810 ) $ 217,245 Held to maturity: Municipal securities $ ( 37 ) $ 7,772 $ ( 81 ) $ 2,996 $ ( 118 ) $ 10,768 Mortgage-backed securities ( 37 ) 2,916 — — ( 37 ) 2,916 Total held to maturity $ ( 74 ) $ 10,688 $ ( 81 ) $ 2,996 $ ( 155 ) $ 13,684 Less Than 12 Months 12 Months or Longer Total December 31, 2020 Gross Estimated Gross Estimated Gross Estimated Available for sale: Corporate bonds $ ( 8 ) $ 2,493 $ — $ — $ ( 8 ) $ 2,493 Mortgage-backed securities ( 87 ) 25,775 — — ( 87 ) 25,775 Collateralized mortgage obligations — — ( 1 ) 106 ( 1 ) 106 Total available for sale $ ( 95 ) $ 28,268 $ ( 1 ) $ 106 $ ( 96 ) $ 28,374 There were 50 investments in an unrealized loss position at December 31, 2021 , of which 22 were available for sale debt securities in an unrealized loss position with no recorded allowance for credit losses. The available for sale securities in a loss position were composed of U.S. government agencies, corporate bonds, collateralized mortgage obligations and mortgage-backed securities. Management evaluates available for sale debt securities in an unrealized loss position to determine whether the impairment is due to credit-related factors or noncredit-related factors. With respect to the collateralized mortgage obligations and mortgage-backed securities issued by the U.S. Government and its agencies, the Company has determined that a decline in fair value is not due to credit-related factors. The Company monitors the credit quality of other debt securities through the use of credit ratings and other factors specific to an individual security in assessing whether or not the decline in fair value of municipal or corporate securities, relative to their amortized cost, is due to credit-related factors. Triggers to prompt further investigation of securities when the fair value is less than the amortized cost are when a security has been downgraded and falls below an A credit rating, and the security’s unrealized loss exceeds 20 % of its book value. Consideration is given to (1) the extent to which fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Based on evaluation of available evidence, management believes the unrealized losses on the securities as of December 31, 2021 are not credit-related. Management does not have the intent to sell any of these securities and believes that it is more likely than not the Company will not have to sell any such securities before recovery of cost. The fair values are expected to recover as the securities approach their maturity date or repricing date or if market yields for the investments decline. Accordingly, no allowance for credit losses has been recorded for these securities. Management assesses held to maturity securities sharing similar risk characteristics on a collective basis for expected credit losses under CECL. As of December 31, 2021, our held to maturity securities consisted of municipal securities and mortgage-backed securities issued by the U.S. Government and its agencies. With regard to the mortgage-backed securities issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. For municipal securities, management reviewed key risk indicators, including ratings by credit agencies when available, and determined that there is no current expectation of credit loss. Accordingly, no allowance for credit losses has been recorded for these securities. Mortgage-backed securities and collateralized mortgage obligations are backed by pools of mortgages that are insured or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association. As of December 31, 2021 , there were no holdings of securities of any one issuer, other than the collateralized mortgage obligations and mortgage-backed securities issued by the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity. Securities with fair values of approximately $ 310,958 and $ 314,962 at December 31, 2021 and 2020, respectively, were pledged to secure public fund deposits and for other purposes as required or permitted by law. Proceeds from the sales of available for sale securities and the associated gains and losses for the year ended December 31, 2019 are listed below. There were no securities sold during the years ended December 31, 2021 or 2020. 2019 Proceeds from sales $ 3,957 Gross gains — Gross losses ( 22 ) There were no held to maturity securities sold during the years ended December 31, 2021, 2020 or 2019. The contractual maturities at December 31, 2021 of available for sale and held to maturity securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties. Available for Sale Held to Maturity December 31, 2021 Amortized Estimated Amortized Estimated Due within one year $ — $ — $ 13,471 $ 13,578 Due after one year through five years 14,633 15,223 57,858 60,065 Due after five years through ten years 30,460 30,683 44,342 46,491 Due after ten years — — 65,639 69,422 Mortgage-backed securities 221,610 221,308 2,953 2,916 Collateralized mortgage obligations 74,925 74,992 — — Total securities $ 341,628 $ 342,206 $ 184,263 $ 192,472 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | NOTE 3 - LOANS AND ALLOWANCE FOR CREDIT LOSSES The following table summarizes the Company’s loan portfolio by type of loan as of: 2021 2020 Commercial and industrial $ 280,569 $ 358,958 Real estate: Construction and development 307,797 270,407 Commercial real estate 622,842 594,216 Farmland 145,501 78,508 1-4 family residential 410,673 389,096 Multi-family residential 30,971 21,701 Consumer 50,965 51,044 Agricultural 14,639 15,734 Warehouse lending (1) 43,720 86,813 Overdrafts 363 342 Total loans (2) 1,908,040 1,866,819 Net of: Deferred loan fees, net ( 1,531 ) ( 1,463 ) Allowance for credit losses ( 30,433 ) ( 33,619 ) Total net loans (2) $ 1,876,076 $ 1,831,737 (1) Warehouse lending is presented as a component of commercial and industrial loans in remaining tables. (2) Excludes accrued interest receivable on loans of $ 5.8 million and $ 7.0 million as of December 31, 2021 and 2020, respectively, which is presented separately on the consolidated balance sheets. The Company has entered into transactions, at prevailing market rates and terms, with certain directors, executive officers, significant shareholders and their affiliates. Loans to such related parties at December 31, 2021 and 2020, totaled $ 44,052 and $ 52,559 , respectively. Unfunded commitments to such related parties at December 31, 2021 totaled $ 40,244 . Loans to principal officers, directors, and their affiliates during the year ended December 31, 2021, was as follows: December 31, 2021 Beginning balance $ 52,559 New loans 91,192 Effect of changes in composition of related parties ( 43 ) Repayments ( 99,656 ) Ending balance $ 44,052 The Company’s estimate of the allowance for credit losses (“ACL”) reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring. The following tables present the activity in the ACL by class of loans for the years ended December 31, 2021, 2020 and 2019: For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 4,033 $ 4,735 $ 15,780 $ 1,220 $ 6,313 $ 363 $ 929 $ 239 $ 7 $ 33,619 Provision for credit losses ( 43 ) ( 515 ) ( 1,229 ) 478 ( 495 ) 33 ( 51 ) ( 78 ) 200 ( 1,700 ) Loans charged-off ( 411 ) — ( 816 ) — — — ( 151 ) — ( 263 ) ( 1,641 ) Recoveries 21 1 30 — — — 35 8 60 155 Ending balance $ 3,600 $ 4,221 $ 13,765 $ 1,698 $ 5,818 $ 396 $ 762 $ 169 $ 4 $ 30,433 For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance, prior to adoption of ASC 326 $ 2,056 $ 2,378 $ 6,853 $ 570 $ 3,125 $ 409 $ 602 $ 197 $ 12 $ 16,202 Impact of adopting ASC 326 546 323 2,228 26 1,339 ( 50 ) 72 73 ( 9 ) 4,548 Provision for credit losses 1,398 2,034 6,698 624 1,915 4 373 ( 33 ) 187 13,200 Loans charged-off ( 68 ) — — — ( 68 ) — ( 155 ) ( 18 ) ( 234 ) ( 543 ) Recoveries 101 — 1 — 2 — 37 20 51 212 Ending balance $ 4,033 $ 4,735 $ 15,780 $ 1,220 $ 6,313 $ 363 $ 929 $ 239 $ 7 $ 33,619 For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Provision for loan losses ( 117 ) 458 827 ( 73 ) 268 ( 222 ) ( 2 ) ( 41 ) 152 1,250 Loans charged-off ( 86 ) — — — ( 14 ) — ( 72 ) ( 89 ) ( 192 ) ( 453 ) Recoveries 508 — 1 — 3 — 111 89 42 754 Ending balance $ 2,056 $ 2,378 $ 6,853 $ 570 $ 3,125 $ 409 $ 602 $ 197 $ 12 $ 16,202 D uring the year ended December 31, 2020, a total allowance for credit losses provision of $ 13,200 was recorded primarily to account for the estimated impact of COVID-19 on credit quality and resulted largely from changes to individual loan risk ratings, as well as COVID-specific qualitative factors primarily derived from changes in national GDP, Texas unemployment rates and national industry related CRE trends, all of which were impacted by the effects of COVID-19. We recorded no provision in the first quarter of 2021, a $ 1,000 reverse provision in the second quarter and a $ 700 reverse provision in the third quarter. These provision reversals capture the improvements that have occurred to macroeconomic factors evaluated at the onset of the pandemic as part of the aforementioned COVID-specific qualitative factors, as well as risk rating upgrades for specific loans, which impact the reserve calculations within our model, offset by growth in our overall loan portfolio. Although management is cautiously optimistic about improving vaccination and hospitalization rates and economic trends, it is very likely that the economic effects of the pandemic will continue into 2022. Credit Quality Assets are graded “pass” when the relationship exhibits acceptable credit risk and indicates repayment ability, tolerable collateral coverage and reasonable performance history. Lending relationships exhibiting potentially significant credit risk and marginal repayment ability and/or asset protection are graded “special mention.” Assets classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. Substandard graded loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets graded “doubtful” are substandard graded loans that have added characteristics that make collection or liquidation in full improbable. Loans that are on nonaccrual status are generally classified as substandard. In general, the loans in our portfolio have low historical credit losses. The Company closely monitors economic conditions and loan performance trends to manage and evaluate the exposure to credit risk. Key factors tracked by the Company and utilized in evaluating the credit quality of the loan portfolio include trends in delinquency ratios, the level of nonperforming assets, borrower’s repayment capacity, and collateral coverage. The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2021: December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 176,972 $ 31,337 $ 16,207 $ 6,449 $ 3,493 $ 14,657 $ 74,364 $ 323,479 Special mention — 88 — — 14 — — 102 Substandard — 272 55 192 40 1 — 560 Nonaccrual 14 101 — 22 — 11 — 148 Total commercial and industrial loans $ 176,986 $ 31,798 $ 16,262 $ 6,663 $ 3,547 $ 14,669 $ 74,364 $ 324,289 Charge-offs $ — $ — $ ( 168 ) $ ( 67 ) $ ( 115 ) $ — $ ( 61 ) $ ( 411 ) Recoveries — — — — — — 21 21 Current period net $ — $ — $ ( 168 ) $ ( 67 ) $ ( 115 ) $ — $ ( 40 ) $ ( 390 ) Construction and development: Pass $ 180,056 $ 68,765 $ 20,499 $ 6,507 $ 8,235 $ 13,565 $ 8,615 $ 306,242 Special mention — — — — 944 — — 944 Substandard — — 609 2 — — — 611 Nonaccrual — — — — — — — — Total construction and development loans $ 180,056 $ 68,765 $ 21,108 $ 6,509 $ 9,179 $ 13,565 $ 8,615 $ 307,797 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 1 — 1 Current period net $ — $ — $ — $ — $ — $ 1 $ — $ 1 Commercial real estate: Pass $ 134,617 $ 93,806 $ 80,733 $ 59,380 $ 43,457 $ 145,477 $ 16,065 $ 573,535 Special mention — 765 — — 4,550 788 — 6,103 Substandard — 6,987 — 10,041 12,981 12,553 — 42,562 Nonaccrual — — 124 69 32 337 80 642 Total commercial real estate loans $ 134,617 $ 101,558 $ 80,857 $ 69,490 $ 61,020 $ 159,155 $ 16,145 $ 622,842 Charge-offs $ — $ — $ ( 17 ) $ ( 56 ) $ ( 472 ) $ ( 271 ) $ — $ ( 816 ) Recoveries — — 19 — 11 — — 30 Current period net $ — $ — $ 2 $ ( 56 ) $ ( 461 ) $ ( 271 ) $ — $ ( 786 ) Farmland: Pass $ 94,491 $ 11,868 $ 8,664 $ 7,456 $ 5,191 $ 11,145 $ 6,290 $ 145,105 Special mention — — — — — 26 — 26 Substandard — — — — — 72 — 72 Nonaccrual — 195 — — — 103 — 298 Total farmland loans $ 94,491 $ 12,063 $ 8,664 $ 7,456 $ 5,191 $ 11,346 $ 6,290 $ 145,501 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Total 1-4 family residential: Pass $ 132,448 $ 64,590 $ 43,016 $ 36,501 $ 26,987 $ 91,864 $ 13,714 $ 409,120 Special mention — — — — — 18 — 18 Substandard — — — — — — — — Nonaccrual 170 — — 180 58 1,127 — 1,535 Total 1-4 family residential loans $ 132,618 $ 64,590 $ 43,016 $ 36,681 $ 27,045 $ 93,009 $ 13,714 $ 410,673 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Multi-family residential: Pass $ 16,663 $ 4,286 $ 6,436 $ 908 $ 474 $ 2,113 $ 91 $ 30,971 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 16,663 $ 4,286 $ 6,436 $ 908 $ 474 $ 2,113 $ 91 $ 30,971 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Consumer and overdrafts: Pass $ 24,715 $ 11,589 $ 4,557 $ 4,647 $ 558 $ 543 $ 4,478 $ 51,087 Special mention 76 — 5 — — — — 81 Substandard — — — — — — — — Nonaccrual 56 27 10 62 5 — — 160 Total consumer loans and overdrafts $ 24,847 $ 11,616 $ 4,572 $ 4,709 $ 563 $ 543 $ 4,478 $ 51,328 Charge-offs $ ( 285 ) $ ( 36 ) $ ( 57 ) $ ( 32 ) $ ( 2 ) $ ( 2 ) $ — $ ( 414 ) Recoveries 61 3 — 8 2 21 — 95 Current period net $ ( 224 ) $ ( 33 ) $ ( 57 ) $ ( 24 ) $ — $ 19 $ — $ ( 319 ) Agricultural: Pass $ 3,557 $ 1,866 $ 927 $ 917 $ 221 $ 526 $ 6,492 $ 14,506 Special mention — — — — 13 — — 13 Substandard — 14 4 15 39 — — 72 Nonaccrual — — — 8 — 40 — 48 Total agricultural loans $ 3,557 $ 1,880 $ 931 $ 940 $ 273 $ 566 $ 6,492 $ 14,639 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 8 — 8 Current period net $ — $ — $ — $ — $ — $ 8 $ — $ 8 Total loans: Pass $ 763,519 $ 288,107 $ 181,039 $ 122,765 $ 88,616 $ 279,890 $ 130,109 $ 1,854,045 Special mention 76 853 5 — 5,521 832 — 7,287 Substandard — 7,273 668 10,250 13,060 12,626 — 43,877 Nonaccrual 240 323 134 341 95 1,618 80 2,831 Total loans $ 763,835 $ 296,556 $ 181,846 $ 133,356 $ 107,292 $ 294,966 $ 130,189 $ 1,908,040 Charge-offs $ ( 285 ) $ ( 36 ) $ ( 242 ) $ ( 155 ) $ ( 589 ) $ ( 273 ) $ ( 61 ) $ ( 1,641 ) Recoveries 61 3 19 8 13 30 21 155 Total current period net (charge-offs) recoveries $ ( 224 ) $ ( 33 ) $ ( 223 ) $ ( 147 ) $ ( 576 ) $ ( 243 ) $ ( 40 ) $ ( 1,486 ) The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2020: December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 278,687 $ 30,563 $ 12,860 $ 4,366 $ 6,131 $ 16,294 $ 90,074 $ 438,975 Special mention 124 119 222 4,040 1,324 — — 5,829 Substandard — 307 540 50 43 — — 940 Nonaccrual — — 13 — 14 — — 27 Total commercial and industrial loans $ 278,811 $ 30,989 $ 13,635 $ 8,456 $ 7,512 $ 16,294 $ 90,074 $ 445,771 Charge-offs $ — $ — $ ( 43 ) $ — $ — $ — $ ( 25 ) $ ( 68 ) Recoveries — — 43 — — 14 44 101 Current period net $ — $ — $ — $ — $ — $ 14 $ 19 $ 33 Construction and development: Pass $ 118,590 $ 76,926 $ 26,212 $ 24,524 $ 7,742 $ 10,507 $ 3,266 $ 267,767 Special mention 356 — — 990 — — — 1,346 Substandard — 609 5 — 680 — — 1,294 Nonaccrual — — — — — — — — Total construction and development loans $ 118,946 $ 77,535 $ 26,217 $ 25,514 $ 8,422 $ 10,507 $ 3,266 $ 270,407 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 91,819 $ 80,753 $ 89,542 $ 72,311 $ 86,946 $ 123,463 $ 5,890 $ 550,724 Special mention — 2,716 3,542 849 5,724 449 — 13,280 Substandard — — 2,010 4,913 4,445 8,240 — 19,608 Nonaccrual — 1,140 151 4,158 4,769 386 — 10,604 Total commercial real estate loans $ 91,819 $ 84,609 $ 95,245 $ 82,231 $ 101,884 $ 132,538 $ 5,890 $ 594,216 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 1 — 1 Current period net $ — $ — $ — $ — $ — $ 1 $ — $ 1 Farmland: Pass $ 17,444 $ 12,668 $ 10,327 $ 6,620 $ 9,904 $ 15,402 $ 5,864 $ 78,229 Special mention — — — — — 35 — 35 Substandard — — — — — 129 — 129 Nonaccrual — — — — — 115 — 115 Total farmland loans $ 17,444 $ 12,668 $ 10,327 $ 6,620 $ 9,904 $ 15,681 $ 5,864 $ 78,508 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Total 1-4 family residential: Pass $ 87,578 $ 62,937 $ 52,087 $ 37,224 $ 43,858 $ 93,486 $ 10,091 $ 387,261 Special mention — — — — — 168 — 168 Substandard — — — — — — — — Nonaccrual — — 326 44 163 1,134 — 1,667 Total 1-4 family residential loans $ 87,578 $ 62,937 $ 52,413 $ 37,268 $ 44,021 $ 94,788 $ 10,091 $ 389,096 Charge-offs $ — $ — $ — $ — $ ( 9 ) $ ( 59 ) $ — $ ( 68 ) Recoveries — — — — — 2 — 2 Current period net $ — $ — $ — $ — $ ( 9 ) $ ( 57 ) $ — $ ( 66 ) Multi-family residential: Pass $ 5,889 $ 4,498 $ 3,617 $ 1,371 $ 1,737 $ 4,391 $ 198 $ 21,701 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 5,889 $ 4,498 $ 3,617 $ 1,371 $ 1,737 $ 4,391 $ 198 $ 21,701 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Consumer and overdrafts: Pass $ 24,740 $ 11,176 $ 9,369 $ 1,701 $ 735 $ 513 $ 2,825 $ 51,059 Special mention 16 83 9 7 — — — 115 Substandard — — — — — — — — Nonaccrual 24 36 131 20 1 — — 212 Total consumer loans and overdrafts $ 24,780 $ 11,295 $ 9,509 $ 1,728 $ 736 $ 513 $ 2,825 $ 51,386 Charge-offs $ ( 243 ) $ ( 63 ) $ ( 31 ) $ ( 43 ) $ ( 3 ) $ ( 6 ) $ — $ ( 389 ) Recoveries 49 2 12 8 4 13 — 88 Current period net $ ( 194 ) $ ( 61 ) $ ( 19 ) $ ( 35 ) $ 1 $ 7 $ — $ ( 301 ) Agricultural: Pass $ 3,489 $ 1,718 $ 1,893 $ 607 $ 273 $ 189 $ 7,408 $ 15,577 Special mention — — — 36 — — — 36 Substandard — 7 10 — 24 — — 41 Nonaccrual — — 33 — 45 2 — 80 Total agricultural loans $ 3,489 $ 1,725 $ 1,936 $ 643 $ 342 $ 191 $ 7,408 $ 15,734 Charge-offs $ — $ — $ ( 18 ) $ — $ — $ — $ — $ ( 18 ) Recoveries — — — — 20 — — 20 Current period net $ — $ — $ ( 18 ) $ — $ 20 $ — $ — $ 2 Total loans: Pass $ 628,236 $ 281,239 $ 205,907 $ 148,724 $ 157,326 $ 264,245 $ 125,616 $ 1,811,293 Special mention 496 2,918 3,773 5,922 7,048 652 — 20,809 Substandard — 923 2,565 4,963 5,192 8,369 — 22,012 Nonaccrual 24 1,176 654 4,222 4,992 1,637 — 12,705 Total loans $ 628,756 $ 286,256 $ 212,899 $ 163,831 $ 174,558 $ 274,903 $ 125,616 $ 1,866,819 Charge-offs $ ( 243 ) $ ( 63 ) $ ( 92 ) $ (43 ) $ ( 12 ) $ ( 65 ) $ ( 25 ) $ ( 543 ) Recoveries 49 2 55 8 24 30 44 212 Total current period net (charge-offs) recoveries $ ( 194 ) $ ( 61 ) $ ( 37 ) $ ( 35 ) $ 12 $ ( 35 ) $ 19 $ ( 331 ) There were no loans classified in the “doubtful” or “loss” risk rating categories as of December 31, 2021 and 2020. The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on the ACL, as of December 31, 2021: Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ 116 $ — $ 116 $ 40 Real estate: Construction and development 609 — 609 207 Commercial real estate 4,319 — 4,319 553 Total $ 5,044 $ — $ 5,044 $ 800 The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on the ACL, as of December 31, 2020: Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ 129 $ — $ 129 $ 44 Real estate: Construction and development 609 — 609 208 Commercial real estate 9,989 — 9,989 2,048 Total $ 10,727 $ — $ 10,727 $ 2,300 The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans and loans 90 days or more past due continuing to accrue interest as of: December 31, 2021 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 969 $ 38 $ 134 $ 1,141 $ 323,148 $ 324,289 $ — Real estate: Construction and 885 132 — 1,017 306,780 307,797 — Commercial real — 360 350 710 622,132 622,842 — Farmland 114 87 195 396 145,105 145,501 — 1-4 family residential 1,650 123 410 2,183 408,490 410,673 — Multi-family residential — — — — 30,971 30,971 — Consumer 189 113 68 370 50,595 50,965 — Agricultural 41 8 — 49 14,590 14,639 — Overdrafts — — — — 363 363 — Total $ 3,848 $ 861 $ 1,157 $ 5,866 $ 1,902,174 $ 1,908,040 $ — December 31, 2020 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 385 $ 25 $ 22 $ 432 $ 445,339 $ 445,771 $ — Real estate: Construction and 256 — — 256 270,151 270,407 — Commercial real 1,094 — 10,105 11,199 583,017 594,216 — Farmland 117 3 — 120 78,388 78,508 — 1-4 family residential 2,097 556 127 2,780 386,316 389,096 — Multi-family residential — — — — 21,701 21,701 — Consumer 383 124 97 604 50,440 51,044 — Agricultural 50 46 45 141 15,593 15,734 — Overdrafts — — — — 342 342 — Total $ 4,382 $ 754 $ 10,396 $ 15,532 $ 1,851,287 $ 1,866,819 $ — The following table presents information regarding nonaccrual loans as of: 2021 2020 Commercial and industrial $ 148 $ 27 Real estate: Commercial real estate 642 10,604 Farmland 298 115 1-4 family residential 1,535 1,667 Consumer and overdrafts 160 212 Agricultural 48 80 Total $ 2,831 $ 12,705 If interest on nonaccrual loans had been accrued, such income would have been approximately $ 141 and $ 821 for the years ended December 31, 2021 and 2020, respectively. There were no commitments to lend additional funds to borrowers whose loans were classified as nonaccrual. Troubled Debt Restructurings A troubled debt restructuring (“TDR”) is a restructuring in which a bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. There was one loan modified as a TDR during the year ended December 31, 2021. No TDRs subsequently defaulted during 2021 or 2020 , and the TDRs described above did no t increase the allowance for credit losses and did no t result in any charge-offs during years ended December 31, 2021 and 2020. The following tables present loans, by class, modified as a TDR during the years ended December 31, 2021, 2020 and 2019: December 31, 2021 Number Pre-Modification Post-Modification Troubled Debt Restructurings: Commercial and industrial 1 $ 17 $ 14 Total 1 $ 17 $ 14 December 31, 2020 Number Pre-Modification Post-Modification Troubled Debt Restructurings: Construction and development 2 $ 1,289 $ 1,081 Commercial and industrial 1 129 85 Commercial real estate 1 1,017 670 Total 4 $ 2,435 $ 1,836 December 31, 2019 Number Pre-Modification Post-Modification Troubled Debt Restructurings: Commercial real estate 4 $ 1,017 $ 670 Total 4 $ 1,017 $ 670 |
Premises And Equipment
Premises And Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE 4 - PREMISES AND EQUIPMENT Premises and equipment balances, by type, were as follows: December 31, December 31, Land $ 10,760 $ 10,944 Building and improvements 59,613 58,569 Furniture, fixtures and equipment 20,221 19,641 Automobiles 434 400 91,028 89,554 Less: accumulated depreciation 37,558 34,342 $ 53,470 $ 55,212 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 5 - GOODWILL Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets as of December 31 are summarized as follows: 2021 2020 Beginning of year $ 32,160 $ 32,160 Effect of acquisitions — — End of year $ 32,160 $ 32,160 |
CORE DEPOSIT INTANGIBLES
CORE DEPOSIT INTANGIBLES | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE 6 - CORE DEPOSIT INTANGIBLES Changes in the carrying amount of core deposit intangibles in the accompanying consolidated balance sheets as of December 31 are summarized as follows: 2021 2020 Beginning of year $ 2,999 $ 3,853 Amortization ( 686 ) ( 854 ) End of year $ 2,313 $ 2,999 Accumulated amortization was $ 6,218 and $ 5,532 at December 31, 2021 and 2020, respectively. Amortization expense related to core deposit intangibles was $ 686 , $ 854 and $ 853 during the years ended December 31, 2021, 2020 and 2019 , respectively. The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2021 was as follows: Year Ended December 31, Amount 2022 $ 453 2023 441 2024 424 2025 316 2026 272 Thereafter 407 $ 2,313 |
INTEREST-BEARING DEPOSITS
INTEREST-BEARING DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Interest Bearing Deposits Abstract | |
Deposit Liabilities Disclosures [Text Block] | NOTE 7 - INTEREST-BEARING DEPOSITS Interest-bearing deposits, by type of account, were as follows as of: December 31, 2021 December 31, 2020 NOW accounts $ 293,948 $ 259,357 Savings and money market accounts 1,032,698 868,643 Time deposits $250,000 or less 218,389 245,796 Time deposits greater than $250,000 111,274 132,854 $ 1,656,309 $ 1,506,650 Year-end maturities of time deposits, as of December 31, 2021, were as follows: Year Ended December 31, Amount 2022 $ 278,312 2023 33,967 2024 8,531 2025 2,660 2026 6,193 Thereafter — $ 329,663 Deposits of executive officers, directors and significant shareholders at December 31, 2021 and 2020 totaled $ 47,318 and $ 46,192 , respectively. |
BORROWED MONEY
BORROWED MONEY | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
BORROWED MONEY | NOTE 8 - BORROWED MONEY Federal Home Loan Bank (FHLB) advances, as of December 31, 2021, were as follows: Fixed rate advances, with monthly interest payments, principal due in: Year Current Principal Due 2022 0.22 % $ 41,500 2024 1.76 % 6,000 $ 47,500 There are no fixed rate advances, with monthly principal and interest payments outstanding as of December 31, 2021 . |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SUBORDINATED DEBENTURES | NOTE 9 - SUBORDINATED DEBENTURES Subordinated debentures were made up of the following as of: December 31, 2021 December 31, 2020 Trust II Debentures $ 3,093 $ 3,093 Trust III Debentures 2,062 2,062 DCB Trust I Debentures 5,155 5,155 Other debentures 9,500 9,500 $ 19,810 $ 19,810 The Company has three trusts, Guaranty (TX) Capital Trust II (“Trust II”), Guaranty (TX) Capital Trust III (“Trust III”), and DCB Financial Trust I (“DCB Trust I”) (“Trust II”, “Trust III” and together with “DCB Trust I,” the “Trusts”). Upon formation, the Trusts issued pass-through securities (“TruPS”) with a liquidation value of $ 1,000 per share to third parties in private placements. Concurrently with the issuance of the TruPS, the Trusts issued common securities to the Company. The Trusts invested the proceeds of the sales of securities to the Company (“Debentures”). The Debentures mature approximately 30 years after the formation date, which may be shortened if certain conditions are met (including the Company having received prior approval of the Federal Reserve and any other required regulatory approvals). Trust II Trust III DCB Trust I Formation date October 30, 2002 July 25, 2006 March 29, 2007 Capital trust pass-through securities Number of shares 3,000 2,000 5,000 Original liquidation value $ 3,000 $ 2,000 $ 5,000 Common securities liquidation value 93 62 155 The securities held by the Trusts qualify as Tier 1 capital for the Company under Federal Reserve Board guidelines. The Federal Reserve’s guidelines restrict core capital elements (including trust preferred securities and qualifying perpetual preferred stock) to 25% of all core capital elements, net of goodwill less any associated deferred tax liability. Because the Company’s aggregate amount of trust preferred securities is less than the limit of 25% of Tier 1 capital, net of goodwill, the full amount is includable in Tier 1 capital at December 31, 2021. Additionally, the terms provide that trust preferred securities would no longer qualify for Tier 1 capital within five years of their maturity, but would be included as Tier 2 capital. However, the trust preferred securities would be amortized out of Tier 2 capital by one-fifth each year and excluded from Tier 2 capital completely during the year prior to maturity of the junior subordinated debentures. With certain exceptions, the amounts of the principal and any accrued and unpaid interest on the Debentures are subordinated in right of payment to the prior payment in full of all senior indebtedness of the Company. Interest on the Debentures is payable quarterly. The interest is deferrable on a cumulative basis for up to five consecutive years following a suspension of dividend payments on all other capital stock. No principal payments are due until maturity for each of the Debentures. Trust II Debentures Trust III Debentures DCB Trust I Original amount $ 3,093 $ 2,062 $ 5,155 Maturity date October 30, 2032 October 1, 2036 June 15, 2037 Interest due Quarterly Quarterly Quarterly In accordance with ASC 810, " Consolidation, " the junior subordinated debentures issued by the Company to the subsidiary trusts are shown as liabilities in the consolidated balance sheets and interest expense associated with the junior subordinated debentures is shown in the consolidated statements of earnings. Trust II Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 3.35 %. On any interest payment date on or after October 30, 2012 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30 , but not more than 60 days ’ notice, in whole or in part, at a redemption price equal to 100 % of the principal amount to be redeemed, plus accrued interest to the date of redemption. Trust III Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 1.67 %. On any interest payment date on or after October 1, 2016 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30 , but not more than 60 days ’ notice, in whole or in part, at a redemption price equal to 100 % of the principal amount to be redeemed, plus accrued interest to the date of redemption. DCB Trust I Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 1.80 %. On any interest payment date on or after June 15, 2012 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30 , but not more than 60 days ’ notice, in whole or in part, at a redemption price equal to 100 % of the principal amount to be redeemed, plus accrued interest to the date of redemption. Other Debentures In May 2020, the Company issued $ 10,000 in debentures to directors and other related parties. The debentures were issued at a par value of $ 500 each with fixed annual rates between 1.00 % and 4.00 % and maturity dates between November 1, 2020 and November 1, 2024 . $ 500 matured in November of 2020 and $ 9,500 remains as of December 31, 2021 . At the Company’s option, and with 30 days advanced notice to the holder, the entire principal amount and all accrued interest may be paid to the holder on or before the due date of any debenture. The redemption price is equal to 100 % of the face amount of the debenture redeemed, plus all accrued interest. The scheduled principal payments and weighted average rates of other debentures are as follows: Year Current Principal Due 2022 2.45 % $ 2,000 2023 2.85 % 3,500 2024 3.74 % 4,000 $ 9,500 |
EQUITY AWARDS
EQUITY AWARDS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY AWARDS | NOTE 10 – EQUITY AWARDS The Company’s 2015 Equity Incentive Plan (the “Plan”) was adopted by the Company and approved by its shareholders in April 2015. The maximum number of shares of common stock that may be issued pursuant to stock-based awards under the Plan equals 1,100,000 shares, all of which may be subject to incentive stock option treatment. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have vesting periods ranging from 5 to 10 years and have 10-year contractual terms. Restricted stock awards vest under the period of restriction specified within their respective award agreements as determined by the Company. Forfeitures are recognized as they occur, subject to a 90-day grace period for vested options. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer group averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes in to account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on U.S. Treasury yield curve in effect at the time of the grant. The fair value of options granted was determined using the following weighted-average assumptions as of grant date, for the years ended December 31: 2021 2020 2019 Risk-free interest rate 0.98 % 0.79 % 2.11 % Expected term (in years) 6.50 6.50 6.50 Expected stock price volatility 23.98 % 22.26 % 19.89 % Dividend yield 2.35 % 2.56 % 2.36 % A summary of stock option activity in the Plan during the years ended December 31, 2021 and 2020 follows: 2021 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 506,200 $ 26.81 5.82 $ 1,805 Effect of 10 % stock dividend 50,770 Granted 58,000 34.30 9.67 112 Exercised ( 89,870 ) 22.47 3.31 1,273 Forfeited ( 22,320 ) 26.16 6.96 222 Balance, December 31, 2021 502,780 $ 25.77 5.59 $ 5,936 Exercisable at end of period 295,696 $ 24.09 4.40 $ 3,989 2020 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 508,000 $ 26.68 6.24 $ 3,159 Granted 74,000 28.67 9.57 145 Exercised ( 26,600 ) 24.00 1.79 158 Forfeited ( 49,200 ) 29.71 7.58 84 Balance, December 31, 2020 506,200 $ 26.81 5.82 $ 1,805 Exercisable at end of period 291,520 $ 25.63 4.74 $ 1,339 A summary of nonvested stock option activity in the Plan during the years ended December 31, 2021 and 2020 follows: 2021 Number of Weighted-Average Outstanding at beginning of year 214,680 $ 4.46 Effect of 10 % stock dividend 23,218 Granted 58,000 5.92 Vested ( 76,494 ) 5.39 Forfeited ( 12,320 ) 6.99 Balance, December 31, 2021 207,084 $ 5.23 2020 Number of Weighted-Average Outstanding at beginning of year 251,120 $ 4.97 Granted 74,000 4.46 Vested ( 71,040 ) 5.79 Forfeited ( 39,400 ) 2.19 Balance, December 31, 2020 214,680 $ 4.46 Information related to stock options in the Plan is as follows for the years ended: 2021 2020 2019 Intrinsic value of options exercised $ 1,273 $ 158 $ 314 Cash received from options exercised 2,019 638 925 Weighted average fair value of options granted 5.92 4.46 4.97 Restricted Stock Awards and Units A summary of restricted stock activity in the Plan during the years ended December 31, 2021 and 2020 follows: 2021 Number of Weighted-Average Outstanding at beginning of year 35,300 $ 29.72 Effect of 10 % stock dividend 3,530 Granted 3,500 33.09 Vested ( 12,140 ) 27.05 Balance, December 31, 2021 30,190 $ 27.52 2020 Number of Weighted-Average Outstanding at beginning of year 31,459 $ 30.29 Granted 19,500 29.32 Vested ( 15,179 ) 30.33 Forfeited ( 480 ) 31.57 Balance, December 31, 2020 35,300 $ 29.72 Restricted stock granted to employees typically vests over five years , but vesting periods may vary. Compensation expense for these grants will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of December 31, 2021, there was $ 1,748 of total unrecognized compensation expense related to unvested stock options granted under the Plan. The expense is expected to be recognized over a weighted-average period of 3.08 years. The Company granted options and restricted stock under the Plan during both 2021 and 2020. Expense of $ 733 , $ 749 and $ 663 was recorded during the years ended December 31, 2021, 2020 and 2019 , respectively, which represents the fair value of shares vested during those periods. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | NOTE 11 - EMPLOYEE BENEFITS KSOP The Company maintains an Employee Stock Ownership Plan containing Section 401(k) provisions covering substantially all employees (“KSOP”). The plan provides for a matching contribution of up to 5 % of a participant’s qualified compensation starting January 1, 2016. Guaranty’s total contributions accrued or paid during the years ended December 31, 2021, 2020 and 2019 totaled $ 1,455 , $ 1,330 and $ 1,270 , respectively. Upon separation from service or other distributable event, a participant’s account under the KSOP may be distributed in kind in the form of the Guaranty common shares allocated to his or her account (with the balance payable in cash), or the entire account can be liquidated and distributed in cash. As of December 31, 2021, the number of shares held by the KSOP was 1,254,757 . There were no unallocated shares to plan participants as of December 31, 2021, and all shares held by the KSOP were treated as outstanding. Executive Incentive Retirement Plan The Company established a non-qualified, non-contributory executive incentive retirement plan covering a selected group of key personnel to provide benefits equal to amounts computed under an “award criteria” at various targeted salary levels as adjusted for annual earnings performance of the Company. The plan is non-funded. In connection with the Executive Incentive Retirement Plan, the Company has purchased life insurance policies on the respective officers. The cash surrender value of life insurance policies held by the Company totaled $ 37,141 and $ 35,510 as of December 31, 2021 and 2020 , respectively. A gain of $ 277 was included in other income in the Company's consolidated statement of earnings, from $464 in proceeds received from these life insurance policies resulting from the death of a former bank officer for the year ended December 31, 2021 . No such gains were recorded during the years ended December 31, 2020 and 2019. Expense related to these plans totaled $ 738 , $ 592 and $ 602 for the years ended December 31, 2021, 2020 and 2019, respectively. This expense is included in employee compensation and benefits on the Company’s consolidated statements of earnings. The recorded liability totaled approximately $ 4,969 and $ 4,383 as of December 31, 2021 and 2020, respectively, and is included in accrued interest and other liabilities on the Company’s consolidated balance sheets. Bonus Plan The Company has a bonus plan that rewards officers and employees based on performance of individual business units of the Company. Earnings and growth performance goals for each business unit and for the Company as a whole are established at the beginning of the calendar year and approved annually by Guaranty’s board of directors. The bonus plan provides for a predetermined bonus amount to be contributed to the employee bonus pool based on (i) earnings target and growth for individual business units and (ii) achieving certain pre-tax return on average equity and pre-tax return on average asset levels for the Company as a whole. These bonus amounts are established annually by Guaranty’s board of directors. The bonus expense under this plan for the years ended December 31, 2021, 2020 and 2019 totaled $ 4,867 , $ 3,164 and $ 3,265 , respectively. This expense is included in employee compensation and benefits on the consolidated statements of earnings. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 12 – LEASES The Company has operating leases for bank locations, ATMs, corporate offices, and certain other arrangements, which have remaining lease terms of 1 year to 14 years . Some of the Company’s operating leases include options to extend the leases for up to 10 years . Operating leases in which we are the lessee must be recorded as right-of-use assets with corresponding lease liabilities. The right-of-use asset represents our right to utilize the underlying asset during the lease term, while the lease liability represents the present value of the obligation of the Company to make periodic lease payments over the life of the lease. The associated operating lease costs are comprised of the amortization of the right-of-use asset and the implicit interest accreted on the lease liability, which is recognized on a straight-line basis over the life of the lease. As of December 31, 2021, operating lease right-of-use assets were $ 14,376 and liabilities were $ 14,882 , and as of December 31, 2020 , lease assets and liabilities were $ 13,291 and $ 13,539 , respectively, and were included within the accompanying consolidated balance sheets as components of other assets and accrued interest and other liabilities, respectively. Operating lease expense for operating leases accounted for under ASC 842 for the years ended December 31, 2021, 2020 and 2019 was approximately $ 2,278 , $ 1,954 and $ 1,881 , respectively, and is included as a component of occupancy expenses within the accompanying consolidated statements of earnings. The table below summarizes other information related to our operating leases as of: December 31, 2021 December 31, 2020 Operating leases Operating lease right-of-use assets $ 14,376 $ 13,291 Operating lease liabilities 14,882 13,539 Weighted average remaining lease term Operating leases 8 years 9 years Weighted average discount rate Operating leases 1.95 % 2.19 % The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2026 and thereafter. Minimum future lease payments under these non-cancelable operating leases as of December 31, 2021, are as follows: Year Ended December 31, Amount 2022 $ 2,155 2023 2,093 2024 2,039 2025 1,870 2026 1,642 Thereafter 5,855 Total lease payments 15,654 Less: interest ( 772 ) Present value of lease liabilities $ 14,882 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13 - INCOME TAXES Tax Cuts and Jobs Act The Tax Cuts and Jobs Act was enacted on December 22, 2017. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21 %, (ii) eliminated the corporate alternative minimum tax and allowed the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limited the deduction for net interest expense incurred by U.S. corporations, (iv) allowed businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminated or reduces certain deductions related to meals and entertainment expenses, (vi) modified the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarified the definition of a covered employee and (vii) limited the deductibility of deposit insurance premiums. The Tax Cuts and Jobs Act also significantly changed U.S. tax law related to foreign operations; however, such changes do not currently impact us. As stated above, as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, we remeasured our deferred tax assets and liabilities based upon the newly enacted U.S. statutory federal income tax rate of 21 %, which is the tax rate at which these assets and liabilities are expected to reverse in the future. Management of the Company considers the likelihood of changes by taxing authorities in its filed income tax returns and discloses potential significant changes that management believes are more likely than not to occur upon examination by tax authorities. Management has not identified any uncertain tax positions in previously filed income tax returns that require disclosure in the accompanying consolidated financial statements. The Company is subject to U.S. federal income taxes. The consolidated provision for income taxes was as follows as of December 31: 2021 2020 2019 Current federal tax expense $ 8,893 $ 10,542 $ 6,097 Deferred federal tax benefit ( 143 ) ( 4,647 ) ( 319 ) Total $ 8,750 $ 5,895 $ 5,778 The provision for federal income taxes differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis as of December 31: 2021 2020 2019 Federal statutory income tax at 21 % $ 10,197 $ 6,992 $ 6,732 Tax exempt interest income ( 1,043 ) ( 1,065 ) ( 1,027 ) Earnings of bank owned life insurance ( 235 ) ( 182 ) ( 192 ) Nondeductible expenses 180 356 462 Other ( 349 ) ( 206 ) ( 197 ) Total $ 8,750 $ 5,895 $ 5,778 The following table summarizes the components of our deferred tax assets and liabilities as of December 31, 2021 and 2020. Our net deferred tax assets are included in other assets in the accompanying consolidated balance sheets. 2021 2020 Deferred tax assets: Allowance for credit losses $ 6,391 $ 7,060 Deferred compensation 1,043 920 Bonus accrual 499 422 Deferred loan fees, net 253 259 Accretion of acquisition allowance 72 112 Other real estate owned — 2 Other 397 437 Total deferred tax assets 8,655 9,212 Deferred tax liabilities: Unrealized gain on available for sale securities ( 122 ) ( 3,717 ) Premises and equipment ( 2,138 ) ( 2,721 ) Prepaid expenses ( 306 ) ( 343 ) Intangibles ( 266 ) ( 350 ) Other ( 46 ) ( 42 ) Total deferred tax liabilities ( 2,878 ) ( 7,173 ) Net deferred tax asset $ 5,777 $ 2,039 |
NONINTEREST INCOME AND NONINTER
NONINTEREST INCOME AND NONINTEREST EXPENSE | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
NONINTEREST INCOME AND NONINTEREST EXPENSE | NOTE 14 - NONINTEREST INCOME AND NONINTEREST EXPENSE Other operating income consisted of the following for the years ended December 31: 2021 2020 2019 Service charges $ 3,772 $ 3,064 $ 3,715 Net realized loss on securities transactions — — ( 22 ) Net realized gain on sale of loans 5,528 6,834 2,850 Fiduciary and custodial income 2,333 2,012 1,760 Bank-owned life insurance income 840 838 774 Merchant and debit card fees 6,717 5,515 4,264 Loan processing fee income 669 628 590 Warehouse lending fees 812 957 679 Mortgage fee income 612 771 323 Other noninterest income 3,293 2,418 2,029 Total $ 24,576 $ 23,037 $ 16,962 Other operating expense consisted of the following for the years ended December 31: 2021 2020 2019 Employee compensation and benefits $ 42,345 $ 37,193 $ 35,907 Occupancy expenses 10,944 10,220 9,834 Legal and professional fees 2,599 2,650 2,610 Software and technology 4,594 4,104 3,341 Amortization 1,154 1,349 1,378 Director and committee fees 823 846 873 Advertising and promotions 1,758 1,498 1,655 ATM and debit card expense 2,445 1,951 1,347 Telecommunication expense 807 864 676 FDIC insurance assessment fees 851 821 173 Other noninterest expense 4,958 5,026 4,731 Total $ 73,278 $ 66,522 $ 62,525 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 15 - DERIVATIVE FINANCIAL INSTRUMENTS The Company utilizes certain derivative financial instruments. Stand-alone derivative financial instruments such as interest rate swaps, are used to economically hedge interest rate risk related to the Company’s liabilities. These derivative instruments involve both credit and market risk. The notional amounts are amounts on which calculations, payments, and the value of the derivative are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Such difference, which represents the fair value of the derivative instruments, is reflected on the Company’s consolidated balance sheets in other liabilities. The Company is exposed to credit related losses in the event of nonperformance by the counterparties to those agreements. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail to perform their respective obligations. The Company entered into interest rate swaps to receive payments at a fixed rate in exchange for paying a floating rate on the debentures discussed in Note 9. Management believed that entering into the interest rate swaps exposed the Company to variability in their fair value due to changes in the level of interest rates. It was the Company’s objective to hedge the change in fair value of floating rate debentures at coverage levels that were appropriate, given anticipated or existing interest rate levels and other market considerations, as well as the relationship of change in the liability to other liabilities of the Company. During the quarter ended September 30, 2021, Guaranty terminated these interest rate swaps with notional amounts totaling $ 5,000 as of December 31, 2021 , as the risk exposure declined to acceptable levels. The swaps were cancelled at an expense of $ 466 , which is included in non-interest expense in the Consolidated Statement of Earnings. The Company also entered into interest rate swaps to receive payments at a floating rate in exchange for paying a fixed rate, the objective of which is to reduce the overall cost of short-term 3-month FHLB advances that will be renewed consistent with the reset terms on the interest rate swap and that are included in the amounts in Note 8. Interest rate swaps with notional amounts totaling $ 40,000 as of December 31, 2021 and 2020 were designated as cash flow hedges of the FHLB advances. The aggregate fair value of the swaps is recorded in accrued interest and other liabilities within the Company’s consolidated balance sheets with changes in fair value recorded in other comprehensive income. The information pertaining to outstanding interest rate swap agreements used to hedge floating rate debentures and FHLB advances was as follows as of: December 31, 2021 Notional Pay Receive Effective Maturity Unrealized $ 15,000 0.668 % 3 month LIBOR 3/18/2020 1.22 $ 8 15,000 0.790 % 3 month LIBOR 3/18/2020 3.22 ( 184 ) 10,000 0.530 % 3 month LIBOR 3/23/2020 1.23 ( 12 ) December 31, 2020 Notional Pay Receive Effective Maturity Unrealized $ 2,000 5.979 % 3 month LIBOR plus 1.67 % 10/1/2016 5.25 $ 408 3,000 7.505 % 3 month LIBOR plus 3.35 % 10/30/2012 1.83 221 15,000 0.668 % 3 month LIBOR 3/18/2020 2.22 159 15,000 0.790 % 3 month LIBOR 3/18/2020 4.22 288 10,000 0.530 % 3 month LIBOR 3/23/2020 2.23 75 Interest expense recorded on these swap transactions totaled $ 607 , $ 747 and $ 648 during the years ended December 31, 2021, 2020 and 2019, respectively. This expense is reported as a component of interest expense on the debentures and the FHLB advances and federal funds purchased. At December 31, 2021 , the Company expected none of the unrealized gain to be reclassified as a reduction of interest income during 2022. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 - COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into various transactions, which, in accordance with GAAP, are not included in its consolidated balance sheets. These transactions are referred to as “off-balance sheet commitments.” The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and letters of credit, which involve elements of credit risk in excess of the amounts recognized in the consolidated balance sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Customers use credit commitments to ensure that funds will be available for working capital purposes, for capital expenditures and to ensure access to funds at specified terms and conditions. Substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. Management considers the likelihood of commitments and letters of credit to be funded, along with credit related conditions present in the loan agreements when estimating an ACL for off-balance sheet commitments. Loan agreements executed in connection with construction loans and commercial lines of credit have standard conditions which must be met prior to the Company being required to provide additional funding, including conditions precedent that typically include: (i) no event of default or potential default has occurred; (ii) that no material adverse events have taken place that would materially affect the borrower or the value of the collateral, (iii) that the borrower remains in compliance with all loan obligations and covenants and has made no misrepresentations; (iv) that the collateral has not been damaged or impaired; (v) that the project remains on budget and in compliance with all laws and regulations; and (vi) that all management agreements, lease agreements and franchise agreements that affect the value of the collateral remain in force. If the conditions precedent have not been met, the Company retains the option to cease current draws and/or future funding. As a result of these conditions within our loan agreements, management has determined that credit risk is minimal and there is no recorded ACL as of December 31, 2021 and 2020. Letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The Company’s policies generally require that letters of credit arrangements contain security and debt covenants similar to those contained in loan agreements. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the table below. If the commitment were funded, the Company would be entitled to seek recovery from the customer. As of December 31, 2021 and 2020 , no amounts have been recorded as liabilities for the Bank’s potential obligations under these guarantees. Commitments and letters of credit outstanding were as follows as of: Contract or Notional Amount 2021 2020 Commitments to extend credit $ 405,269 $ 324,276 Letters of credit 8,357 8,488 Litigation The Company is involved in certain claims and lawsuits occurring in the normal course of business. Management, after consultation with legal counsel, does not believe that the outcome of these actions, if determined adversely, would have a material impact on the consolidated financial statements of the Company. FHLB Letters of Credit At December 31, 2021, the Company had letters of credit of $ 35,833 pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2021 | |
Banking And Thrifts [Abstract] | |
REGULATORY MATTERS | NOTE 17 - REGULATORY MATTERS The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Basel III Capital Rules, a comprehensive capital framework for U.S. banking organizations, became effective for the Company and Bank on January 1, 2015, with certain transition provisions that were fully phased in on January 1, 2019. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1 capital, Tier 1 capital and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and or Tier 1 capital to adjusted quarterly average assets (as defined). Management believes, as of December 31, 2021 and 2020, that the Bank met all capital adequacy requirements to which it was subject. The Basel III Capital Rules, among other things, have (i) introduced a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specified that Tier 1 capital consist of CET1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) defined CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital, (iv) expanded the scope of the deductions/adjustments as compared to existing regulations, and (v) imposed a "capital conservation buffer" of 2.5 % above minimum risk-based capital requirements, below which an institution would be subject to limitations on certain activities including payment of dividends, share repurchases and discretionary bonuses to executive officers. As of December 31, 2021 and 2020, the Company’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized”, the Company must maintain minimum total risk-based, CET1, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since December 31, 2021 that management believes have changed the Company’s category. The Federal Reserve’s guidelines regarding the capital treatment of trust preferred securities limits restricted core capital elements (including trust preferred securities and qualifying perpetual preferred stock) to 25% of all core capital elements, net of goodwill less any associated deferred tax liability. Because the Company’s aggregate amount of trust preferred securities is less than the limit of 25% of Tier 1 capital, net of goodwill, the rules permit the inclusion of $ 10,310 of trust preferred securities in Tier 1 capital as of December 31, 2021 and 2020. Additionally, the rules provide that trust preferred securities would no longer qualify for Tier 1 capital within five years of their maturity, but would be included as Tier 2 capital. However, the trust preferred securities would be amortized out of Tier 2 capital by one-fifth each year and excluded from Tier 2 capital completely during the year prior to maturity of the subordinated debentures. A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios are presented in the following tables as of: Actual Minimum Required Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Total capital to risk-weighted assets: Consolidated $ 297,370 14.51 % $ 163,986 8.00 % $ 215,232 10.50 % n/a Bank 311,335 15.19 % 163,936 8.00 % 215,166 10.50 % $ 204,920 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 271,696 13.25 % 122,990 6.00 % 174,235 8.50 % n/a Bank 285,661 13.94 % 122,952 6.00 % 174,182 8.50 % 163,936 8.00 % Tier 1 capital to average assets: (1) Consolidated 271,696 9.18 % 118,369 4.00 % 118,369 4.00 % n/a Bank 285,661 9.66 % 118,345 4.00 % 118,345 4.00 % 147,931 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 261,386 12.75 % 92,242 4.50 % 143,488 7.00 % n/a Bank 285,661 13.94 % 92,214 4.50 % 143,444 7.00 % 133,198 6.50 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Actual Minimum Required Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital to risk-weighted assets: Consolidated $ 263,144 13.20 % $ 159,496 8.00 % $ 209,338 10.50 % n/a Bank 285,490 14.32 % 159,514 8.00 % 209,362 10.50 % $ 199,392 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 238,115 11.94 % 119,622 6.00 % 169,464 8.50 % n/a Bank 260,459 13.06 % 119,635 6.00 % 169,483 8.50 % 159,514 8.00 % Tier 1 capital to average assets: (1) Consolidated 238,115 9.13 % 104,293 4.00 % 104,293 4.00 % n/a Bank 260,459 9.99 % 104,293 4.00 % 104,293 4.00 % 130,366 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 227,805 11.43 % 89,716 4.50 % 139,559 7.00 % n/a Bank 260,459 13.06 % 89,726 4.50 % 139,574 7.00 % 129,605 6.50 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Dividends paid by Guaranty are mainly provided by dividends from its subsidiaries. However, certain regulatory restrictions exist regarding the ability of its bank subsidiary to transfer funds to Guaranty in the form of cash dividends, loans or advances. The amount of dividends that a subsidiary bank organized as a national banking association, such as the Bank, may declare in a calendar year is the subsidiary bank’s net profits for that year combined with its retained net profits for the preceding two years. Retained net profits, as defined by the OCC, consist of net income less dividends declared during the period. As of December 31, 2021, the Bank had $ 44,273 available for payment of dividends. Dividends are paid quarterly, and $ 9,663 in dividends were paid during the year ended December 31, 2021 . |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 18 - CONCENTRATIONS OF CREDIT RISK Most of the Company’s business activity is with customers located within the state of Texas. Investments in state and municipal securities involve governmental entities within the Company’s market area. The Company also maintains deposits with other financial institutions in amounts that exceed FDIC insurance coverage. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended |
Dec. 31, 2021 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | NOTE 19 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase were $ 14,151 and $ 15,631 as of December 31, 2021 and 2020, respectively, and are secured by mortgage-backed securities and collateralized mortgage obligations. Securities sold under agreements to repurchase are financing arrangements that mature within two years. At maturity, the securities underlying the agreements are returned to the Company. Information concerning securities sold under agreements to repurchase is summarized as follows as of December 31: 2021 2020 Average balance during the year $ 14,812 $ 18,115 Average interest rate during the year 0.11 % 0.18 % Maximum month-end balance during the year $ 36,322 $ 21,400 Weighted average interest rate at year-end 0.76 % 0.19 % |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 20 - RELATED PARTIES As more fully described in Note 3, Note 7 and Note 9, the company has entered into loans, deposits and debenture transactions with related parties. Management believes the transactions entered into with related parties are in the ordinary course of business and are on terms similar to transitions with unaffiliated parties. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 21 - FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 - Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Marketable Securities : The fair values for marketable securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Loans Held For Sale : Loans held for sale are carried at the lower of cost or fair value, which is evaluated on a pool-level basis. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors (Level 2). Derivative Instruments : The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Other Real Estate Owned : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly (Level 3). Individually Evaluated Collateral Dependent Loans : The fair value of individually evaluated collateral dependent loans is generally based on the fair value of collateral, less costs to sell. The fair value of real estate collateral is determined using recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant (Level 3). Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business (Level 3). The following tables summarize quantitative disclosures about the fair value measurements for each category of financial assets (liabilities) carried at fair value: December 31, 2021 Fair Value Quoted Significant Significant Assets at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 221,308 $ — $ 221,308 $ — Collateralized mortgage obligations 74,992 — 74,992 — Corporate bonds 35,935 — 35,935 — U.S. government agencies 9,971 — 9,971 — Loans held for sale 4,129 — — 4,129 Cash surrender value of life insurance 37,141 — 37,141 — SBA servicing assets 877 — — 877 Derivative instrument assets ( 196 ) — ( 196 ) — Derivative instrument liabilities 8 — 8 — Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 4,244 — — 4,244 December 31, 2020 Fair Value Quoted Significant Significant Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 107,164 $ — $ 107,164 $ — Collateralized mortgage obligations 66,945 — 66,945 — Municipal securities 175,704 — 175,704 — Corporate bonds 30,982 — 30,982 — Loans held for sale 5,542 — — 5,542 Cash surrender value of life insurance 35,510 — 35,510 — SBA servicing assets 763 — — 763 Derivative instrument assets 629 — 629 — Derivative instrument liabilities ( 1,151 ) — ( 1,151 ) — Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 8,427 — — 8,427 There were no transfers between Level 2 and Level 3 during the years December 31, 2021 or 2020. Nonfinancial Assets and Nonfinancial Liabilities Nonfinancial assets measured at fair value on a nonrecurring basis during the years ended December 31, 2021 and 2020 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for credit losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in current earnings. The fair value of a foreclosed asset is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. The following table presents foreclosed assets that were remeasured and recorded at fair value as of: 2021 2020 2019 Other real estate owned remeasured at initial recognition: Carrying value of other real estate owned prior to remeasurement $ — $ 42 $ 147 Charge-offs recognized in the allowance for credit losses — ( 9 ) ( 11 ) Fair value of other real estate owned remeasured at initial recognition $ — $ 33 $ 136 Other real estate owned remeasured subsequent to initial recognition: Carrying value of other real estate owned prior to remeasurement $ — $ 62 $ 35 Write-downs included in collection and other real estate owned expense — ( 1 ) ( 10 ) Fair value of other real estate owned remeasured subsequent to initial recognition $ — $ 61 $ 25 There were no nonrecurring Level 3 fair value measurements as of December 31, 2021 . The following table presents quantitative information about nonrecurring Level 3 fair value measurements as of December 31, 2020: December 31, 2020 Fair Value Valuation Unobservable Input(s) Range Other real estate owned $ 404 Appraisal value of collateral Selling costs or other normal adjustments 10 %- 20 % ( 16 %) The following tables present information on individually evaluated collateral dependent loans as of December 31, 2021 and 2020: Fair Value Measurements Using December 31, 2021 Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ 76 $ 76 Real estate: Construction and development — — 402 402 Commercial real estate — — 3,766 3,766 Overdrafts Total $ — $ — $ 4,244 $ 4,244 Fair Value Measurements Using December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ 85 $ 85 Real estate: Construction and development — — 401 401 Commercial real estate — — 7,941 7,941 Total $ — $ — $ 8,427 $ 8,427 The carrying amounts and estimated fair values of financial instruments not previously discussed in this note, as of December 31, 2021 and 2020, are as follows: Fair value measurements as of Carrying Level 1 Level 2 Level 3 Total Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 499,605 $ 499,605 $ — $ — $ 499,605 Marketable securities held to maturity 184,263 — 192,472 — 192,472 Loans, net 1,876,076 — — 1,883,756 1,883,756 Accrued interest receivable 8,901 — 8,901 — 8,901 Nonmarketable equity securities 15,344 — 15,344 — 15,344 Financial liabilities: Deposits $ 2,670,827 $ 2,341,048 $ 330,356 $ — $ 2,671,404 Securities sold under repurchase agreements 14,151 — 14,151 — 14,151 Accrued interest payable 481 — 481 — 481 Federal Home Loan Bank advances 47,500 — 47,501 — 47,501 Subordinated debentures 19,810 — 17,833 — 17,833 Fair value measurements as of Carrying Level 1 Level 2 Level 3 Total Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 351,791 $ 351,791 $ — $ — $ 351,791 Loans, net 1,831,737 — — 1,846,868 1,846,868 Accrued interest receivable 9,834 — 9,834 — 9,834 Nonmarketable equity securities 14,095 — 14,095 — 14,095 Financial liabilities: Deposits $ 2,286,390 $ 1,907,587 $ 380,570 $ — $ 2,288,157 Securities sold under repurchase agreements 15,631 — 15,631 — 15,631 Accrued interest payable 804 — 804 — 804 Federal Home Loan Bank advances 109,101 — 109,381 — 109,381 Subordinated debentures 19,810 — 17,406 — 17,406 The methods and assumptions, not previously presented, used to estimate fair values are described as follows: Cash and Cash Equivalents The carrying amounts of cash and short-term instruments approximate fair values (Level 1). Loans, net The fair value of fixed-rate loans and variable-rate loans that reprice on an infrequent basis is estimated by discounting future cash flows using the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality (Level 3). Nonmarketable Equity Securities It is not practical to determine the fair value of Independent Bankers Financial Corporation, Federal Home Loan Bank, Federal Reserve Bank and other stock due to restrictions placed on its transferability. Deposits and Securities Sold Under Repurchase Agreements The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) (Level 1). The fair values of deposit liabilities with defined maturities are estimated by discounting future cash flows using interest rates currently offered for deposits of similar remaining maturities (Level 2). Other Borrowings The fair value of borrowings, consisting of lines of credit, Federal Home Loan Bank advances and Subordinated debentures is estimated by discounting future cash flows using currently available rates for similar financing (Level 2). Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate their fair values (Level 2). Off-balance Sheet Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 22 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following are changes in accumulated other comprehensive income (loss) by component, net of tax, for the year ending December 31, 2021: Losses on Unrealized Unrealized Total Beginning balance $ ( 1,151 ) $ 10,780 $ — $ 9,629 Other comprehensive income (loss) before reclassification and tax effect 873 ( 6,884 ) ( 1,374 ) ( 7,385 ) Tax effect — 1,446 2,149 3,595 Amounts reclassified from accumulated other comprehensive loss 466 — — 466 Net current period other comprehensive income (loss) 1,339 ( 5,438 ) 775 ( 3,324 ) Ending balance $ 188 $ 5,342 $ 775 $ 6,305 The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2020: Losses on Unrealized Unrealized Total Beginning balance $ ( 526 ) $ ( 1,221 ) $ ( 46 ) $ ( 1,793 ) Other comprehensive income (loss) before tax effect ( 625 ) 15,194 46 14,615 Tax effect — ( 3,193 ) — ( 3,193 ) Net current period other comprehensive income (loss) ( 625 ) 12,001 46 11,422 Ending balance $ ( 1,151 ) $ 10,780 $ — $ 9,629 There were no amounts reclassified out of accumulated other comprehensive income (loss) for the year ended December 31, 2020. The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2019: (Losses) and Unrealized Unrealized Total Beginning balance $ ( 393 ) $ ( 8,705 ) $ ( 64 ) $ ( 9,162 ) Other comprehensive income (loss) before reclassification ( 133 ) 7,467 18 7,352 Amounts reclassified from accumulated other comprehensive loss — 17 — 17 Net current period other comprehensive income (loss) ( 133 ) 7,484 18 7,369 Ending balance $ ( 526 ) $ ( 1,221 ) $ ( 46 ) $ ( 1,793 ) The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2019: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Affected Line Item in the Unrealized gain on available for sale securities $ 22 Net realized gain on sale of securities transactions ( 5 ) Tax effect $ 17 Net of Tax |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 23 - EARNINGS PER SHARE Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted-average common shares outstanding for the period. Diluted earnings per share reflects the maximum potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and would then share in the net earnings of the Company. Dilutive share equivalents include stock-based awards issued to employees. Stock options granted by the Company are treated as potential shares in computing earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money awards which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax impact that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The computations of basic and diluted earnings per share for the Company were as follows (in thousands except per share amounts) as of December 31: 2021 2020 2019 Numerator: Net earnings (basic) $ 39,806 $ 27,402 $ 26,279 Net earnings (diluted) $ 39,806 $ 27,402 $ 26,279 Denominator: Weighted-average shares outstanding (basic)* 12,065,182 12,219,420 12,802,787 Effect of dilutive securities: Common stock equivalent shares from stock options* 146,576 36,059 72,822 Weighted-average shares outstanding (diluted)* 12,211,758 12,255,480 12,875,609 Net earnings per share Basic $ 3.30 $ 2.25 $ 2.05 Diluted $ 3.26 $ 2.24 $ 2.05 * Periods prior to the stock dividend issued during the first quarter of 2021 have been adjusted to give effect to the 10 % stock dividend. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | NOTE 24 - PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of Guaranty Bancshares, Inc. follows: December 31, 2021 2020 ASSETS Cash and cash equivalents $ 2,709 $ 1,227 Investment in banking subsidiaries 326,489 305,926 Other assets 627 451 Total assets $ 329,825 $ 307,604 LIABILITIES AND EQUITY Line of credit $ 5,000 $ 12,000 Subordinated debentures 19,810 19,810 Accrued expenses and other liabilities 2,801 3,151 Shareholders’ equity 302,214 272,643 Total liabilities and shareholders’ equity $ 329,825 $ 307,604 For the Years Ended December 31, 2021 2020 2019 Interest income $ 7 $ 10 $ 15 Dividends from Guaranty Bank & Trust 18,000 — 23,000 18,007 10 23,015 Expenses Interest expense 916 939 653 Other expenses 2,520 2,000 1,819 3,436 2,939 2,472 Income (loss) before income tax and equity in undistributed income of subsidiary 14,571 ( 2,929 ) 20,543 Income tax benefit 718 574 639 Income (loss) before equity in undistributed earnings of subsidiary 15,289 ( 2,355 ) 21,182 Equity in undistributed earnings of subsidiary 24,517 29,757 5,097 Net earnings $ 39,806 $ 27,402 $ 26,279 Comprehensive income $ 36,482 $ 38,824 $ 33,648 2021 2020 2019 Cash flows from operating activities Net earnings $ 39,806 $ 27,402 $ 26,279 Adjustments: Equity in undistributed subsidiary earnings ( 24,517 ) ( 29,757 ) ( 5,097 ) Stock based compensation 733 749 663 Change in other assets ( 176 ) 18 85 Change in other liabilities 44 ( 673 ) 503 Net cash (used in) provided by operating activities 15,890 ( 2,261 ) 22,433 Cash flows from investing activities Net cash provided by investing activities — — — Cash flows from financing activities Proceeds of borrowings 10,000 40,000 — Repayments of borrowings ( 17,000 ) ( 19,000 ) ( 2,000 ) Purchase of treasury stock — ( 16,927 ) ( 10,140 ) Exercise of stock options 2,019 638 925 Cash dividends paid ( 9,427 ) ( 8,487 ) ( 8,065 ) Net cash used in financing activities ( 14,408 ) ( 3,776 ) ( 19,280 ) Net change in cash and cash equivalents 1,482 ( 6,037 ) 3,153 Beginning cash and cash equivalents 1,227 7,264 4,111 Ending cash and cash equivalents $ 2,709 $ 1,227 $ 7,264 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation : The consolidated financial statements include the accounts of Guaranty Bancshares, Inc. and its wholly-owned subsidiary Guaranty Bank & Trust, N.A., (the “Bank” or "Guaranty Bank & Trust"). All entities combined are collectively referred to as the “Company”. All significant intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation : Guaranty Bank & Trust has six wholly-owned non-bank subsidiaries, Guaranty Company, Inc., G B COM, INC., 2800 South Texas Avenue LLC, Pin Oak Realty Holdings, Inc., Pin Oak Asset Management, LLC (formerly Pin Oak Energy Holdings, LLC) and White Oak Aviation, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. |
Nature of Operations | Nature of Operations : Guaranty Bancshares, Inc. (“Guaranty”) is a bank holding company headquartered in Mount Pleasant, Texas that provides, through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A. (the “Bank”), a broad array of financial products and services to individuals and corporate customers, primarily in its markets of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The terms “the Company,” “we,” “us” and “our” mean Guaranty and its subsidiaries, when appropriate. The Company’s main sources of income are derived from granting loans throughout its markets and investing in securities issued or guaranteed by the U.S. Treasury, U.S. government agencies and state and political subdivisions. The Company’s primary lending products are real estate, commercial and consumer loans. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ abilities to honor contracts is dependent on the economy of the State of Texas and primarily the economies of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The Company primarily funds its lending activities with deposit operations. The Company’s primary deposit products are checking accounts, money market accounts and certificates of deposit. |
Use of Estimates | Use of Estimates : To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. Actual future results could differ. |
Cash and Cash Equivalents | Cash and Cash Equivalents : Cash and cash equivalents include cash, due from banks, interest-bearing deposits with other banks that have initial maturities less than 90 days and federal funds sold. Net cash flows are reported for loan and deposit transactions, and short-term borrowings with initial maturities less than 90 days. |
Marketable Securities | Marketable Securities : Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Management determines the appropriate classification of securities at the time of purchase or transfer. Interest income includes amortization and accretion of purchase premiums and discounts. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities that are in an unrealized loss position for credit-related factors, in order to determine if an allowance for credit losses is required. This evaluation is performed on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, any previous allowance for credit loss is written off and the amortized cost basis of the securities is written down to fair value, through earnings. For debt securities that do not meet the aforementioned criteria, management will determine if the decline in fair value has resulted from a credit loss or other factors and apply the following: 1) recognize an allowance for credit loss by a charge to earnings for the credit-related component of the decline in fair value (subject to a floor of the excess of the amortized cost over fair value) and 2) recognize the noncredit-related component of the fair value decline, if any, in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. To the extent that expected cash flows improve, the standard permits reversal of allowance amounts in the current period earnings. |
Non-marketable Securities | Non-marketable Securities : Other securities, such as stock in The Independent Bankers Financial Corporation, the Federal Reserve Bank, and the Federal Home Loan Bank are accounted for on the cost basis and are carried in other assets. Stock in Valesco Commerce Street Capital, L.P., Valesco Fund II, L.P., Independent Bankers Capital Fund III, L.P., Independent Bankers Capital Fund IV, L.P., Lightspring Capital I, L.P. and Pharos Capital Partners IV-A, L.P. are accounted for on the cost basis in other assets. |
Loans Held for Sale | Loans Held for Sale : Certain residential mortgage loans are originated for sale in the secondary mortgage loan market. These loans are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. To mitigate the interest rate risk, fixed commitments may be obtained at the time loans are originated or identified for sale. All sales are made without recourse. Gains or losses on sales of mortgage loans are recognized at settlement dates based on the difference between the selling price and the carrying value of the related mortgage loans sold. |
Loans | Loans : Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for credit losses, discounts and any deferred fees or costs on originated loans. Interest income was reported on the level-yield interest method and included amortization of net deferred loan fees and costs over the loan term. |
Nonaccrual Loans | Nonaccrual Loans : Loans are placed on nonaccrual status at ninety days past due or as determined by management, and interest is considered a loss. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Covid- 19 | COVID-19 : On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, of which virus variants continue to spread through the United States and around the world. The declaration of a global pandemic indicates that almost all public commerce and business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The outbreak of COVID-19, and its subsequent variants, could adversely impact a broad range of industries in which the Company’s customers operate and impair their ability to fulfill their financial obligations to the Company. Government leaders and the Federal Reserve have taken several actions designed to mitigate the economic fallout resulting from the coronavirus. The Coronavirus Aid, Relief and Economic Security (“CARES”) Act, signed into law on March 27, 2020, authorized more than $ 2 trillion to battle COVID-19 and its economic effects, including immediate cash relief for individual citizens, loan programs for small businesses, support for hospitals and other medical providers, and various types of economic relief for impacted businesses and industries. The goal of CARES Act was to prevent severe economic downturn. The CARES Act also provided for temporary interest only or payment deferral modifications for loans without classifying them as troubled debt restructurings under current accounting rules. Additional government-backed hardship relief measures were signed into law in early 2021, as well as extension of many of the CARES Act provisions, throughout 2021. Due to the COVID-19 pandemic, market interest rates declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time. On March 16, 2020, the Federal Open Market Committee reduced the target federal funds rate range to 0.00 % to 0.25 %, at which it remains as of December 31, 2021. These reductions in interest rates and other effects of the COVID-19 outbreak may adversely affect the Company’s financial condition and results of operations, as well as business and consumer confidence. As a result of the spread of COVID-19 and its variants, economic uncertainties have arisen which can negatively impact net interest income and noninterest income. Other financial impacts could occur though such potential impact remains unknown at this time. |
Allowance for Credit Losses | Allowance for Credit Losses : Held to Maturity Debt Securities The allowance for credit losses on held to maturity securities is a contra-asset valuation account that is deducted from the amortized cost basis of held to maturity securities to present management's best estimate of the net amount expected to be collected. Held to maturity securities are charged-off against the allowance when deemed uncollectible. Adjustments to the allowance are reported in our income statement as a component of provision for credit losses. Management measures expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management has made the accounting policy election to exclude accrued interest receivable on held to maturity securities from the estimate of credit losses. Available for Sale Debt Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the securities amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of the cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected are less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provisions for or reversal of credit loss expense. Losses are charged against the allowance when management believes a security is uncollectible or when either of the criteria regarding intent to sell or required to sell is met. Accrued interest receivable on securities is excluded from the estimate of credit losses. Loans The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected over the lifetime of the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. We use the weighted-average remaining maturity method (WARM method) as the basis for the estimation of expected credit losses. The WARM method uses a historical average annual charge-off rate. This average annual charge-off rate contains loss content over a historical lookback period and is used as a foundation for estimating the credit loss reserve for the remaining outstanding balances of loans in a segment at the balance sheet date. The average annual charge-off rate is applied to the contractual term, further adjusted for estimated prepayments, to determine the unadjusted historical charge-off rate. The calculation of the unadjusted historical charge-off rate is then adjusted for current conditions and for reasonable and supportable forecast periods. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in our historic loss factors. The allowance for credit losses is measured on a collective (pool or segment) basis when similar risk characteristics exist. Our loan portfolio segments include both regulatory call report codes and by internally identified risk ratings for our commercial loan segments and by delinquency status for our consumer loan segments. We also have separately identified our mortgage warehouse loans, internally originated SBA loans, SBA loans acquired from Westbound Bank in 2018 and loans originated under the Paycheck Protection Program ("PPP") for inherent risk analysis. Accrued interest receivable on loans is excluded from the estimate of credit losses. Below is a summary of the segments and certain of the inherent risks in the Company’s loan portfolio: Commercial and industrial: This portfolio segment includes general secured and unsecured commercial loans which are not secured by real estate or may be secured by real estate but made for the primary purpose of a short-term revolving line of credit. Credit risks inherent in this portfolio segment include fluctuations in the local and national economy. Construction and development: This portfolio segment includes all loans for the purpose of construction, including both business and residential structures; and real estate development loans, including non-agricultural vacant land. Credit risks inherent in this portfolio include fluctuations in property values, unemployment, and changes in the local and national economy. Commercial real estate: The commercial real estate portfolio segment includes all commercial loans that are secured by real estate, other than those included in the construction and development, farmland, multi-family, and 1-4 family residential segments. Risks inherent in this portfolio segment include fluctuations in property values and changes in the local and national economy impacting the sale or lease of the finished structures. Farmland: The farmland portfolio includes loans that are secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing & pastureland and timberland. This segment includes land with a 1-4 family residential structure if the value of the land exceeds the value of the residence. Risks inherent in this portfolio segment include adverse changes in climate, fluctuations in feed and cattle prices and changes in property values. Consumer: This portfolio segment consists of non-real estate loans to consumers. This includes secured and unsecured loans such as auto and personal loans. The risks inherent in this portfolio segment include those factors that would impact the consumer’s ability to meet their obligations under the loan. These include increases in the local unemployment rate and fluctuations in consumer and business sales. 1-4 family residential: This portfolio segment includes loans to both commercial and consumer borrowers secured by real estate for housing units of up to four families. Risks inherent in this portfolio segment include increases in the local unemployment rate, changes in the local economy and factors that would impact the value of the underlying collateral, such as changes in property values. Multi-family residential: This portfolio segment includes loans secured by structures containing five or more residential housing units. Risks inherent in this portfolio segment include increases to the local unemployment rate, changes in the local economy, and factors that would impact property values. Agricultural: The agricultural portfolio segment includes loans to individuals and companies in the dairy and cattle industries and farmers. Loans in the segment are secured by collateral including cattle, crops and equipment. Risks inherent in this portfolio segment include adverse changes in climate and fluctuations in feed and cattle prices. The following groups of loans are considered to carry specific similar inherent risk characteristics, which the Bank considers separately during its calculation of the allowance for credit losses. These groups of loans are reported within the segments identified in the previous table. Mortgage Warehouse: The mortgage warehouse portfolio includes loans in which we purchase mortgage loan ownership interests from unaffiliated mortgage originators that are generally held by us for a period of less than 30-days, typically 5-10 days before they are sold to an approved investor. These loans are consistently underwritten based on standards established by the approved investor. Risks inherent in this portfolio include borrower or mortgage originator fraud. SBA – Acquired Loans The SBA – acquired loans segment consists of partially SBA guaranteed loans that were acquired from Westbound Bank in June 2018. These loans are commercial real estate and commercial and industrial in nature and were underwritten with guidelines that are less conservative than our Company. Risks inherent in this portfolio include increases in interest rates, as most are variable rate loans, generally lower levels of borrower equity, less conservative underwriting guidelines, fluctuations in real estate values and changes in the local and national economy. SBA – Originated Loans The SBA – originated loans segment consists of loans that are partially guaranteed by the SBA and were originated and underwritten by Guaranty Bank & Trust loan officers. Risks inherent in this portfolio include increases in interest rates due to variable rate structures, generally lower levels of borrower equity or net worth, fluctuations in real estate values and changes in the local and national economy. SBA – Paycheck Protection Program Loans Loans originated under the PPP are 100 % government guaranteed by the SBA. As a result, the loans are excluded from the segments above and a minimal reserve estimate was applied to this segment of loans for purposes of calculating the credit loss provision. In general, the loans in our portfolio have low historical credit losses. The credit quality of loans in our portfolio is impacted by delinquency status and debt service coverage generated by our borrowers’ businesses and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, these types of loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process we refer to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. We consider the majority of our consumer type loans to be “seasoned” and that the credit quality and current level of delinquencies and defaults represents the level of reserve needed in the allowance for credit losses. If delinquencies and defaults were to increase, we may be required to increase our provision for credit losses, which would adversely affect our results of operations and financial condition. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial and industrial, construction, and commercial real estate loans. Internal risk ratings are a key factor that impact management’s estimates of loss factors used in determining the amount of the allowance for credit losses. Internal risk ratings are updated on a continuous basis. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Credit Quality Indicators - The Company monitors the credit quality of the loans in the various segments by identifying and evaluating credit quality indicators specific to each segment class. This information is incorporated into management’s analysis of the adequacy of the allowance for credit losses. Information for the credit quality indicators is updated monthly or quarterly for classified assets and at least annually for the remainder of the portfolio. The following is a discussion of the primary credit quality indicators most closely monitored for the loan portfolio, by class: Commercial and industrial: In assessing risk associated with commercial loans, management considers the business’s cash flow and the value of the underlying collateral to be the primary credit quality indicators. Construction and development: In assessing the credit quality of construction loans, management considers the ability of the borrower to make principal and interest payments in the event that they are unable to sell the completed structure to be a primary credit quality indicator. For real estate development loans, management also considers the likelihood of the successful sale of the constructed properties in the development. Commercial real estate: Management considers the strength of the borrower’s cash flows, changes in property values and occupancy status to be key credit quality indicators of commercial real estate loans. Farmland: In assessing risk associated with farmland loans, management considers the borrower’s cash flows and underlying property values to be key credit quality indicators. Consumer: Management considers delinquency status to be the primary credit quality indicator of consumer loans. Others include the debt to income ratio of the borrower, the borrower’s credit history, the availability of other credit to the borrower, the borrower’s past-due history, and, if applicable, the value of the underlying collateral to be primary credit quality indicators. 1-4 family residential: Management considers delinquency status to be the primary credit quality indicator of 1-4 family residential loans. Others include changes in the local economy, changes in property values, and changes in local unemployment rates to be key credit quality indicators of the loans in the 1-4 family residential loan segment. Multi-family residential: Management considers changes in the local economy, changes in property values, vacancy rates and changes in local unemployment rates to be key credit quality indicators of the loans in the multifamily loan segment. Agricultural: In assessing risk associated with agricultural loans, management considers the borrower’s cash flows, the value of the underlying collateral and sources of secondary repayment to be primary credit quality indicators. From time to time, we modify our loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by us that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. We review each troubled debt restructured loan and determine on a case-by-case basis if the loan can be grouped with its like segment for allowance consideration or whether it should be individually evaluated for a specific allowance for credit loss allocation. If individually evaluated, an allowance for credit loss allocation is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. In response to the COVID-19 pandemic, the Bank provided financial relief to many of its customers through a 3-month principal and interest payment deferral program or an up to 6-month interest only program. Pursuant to the CARES Act and the April 7, 2020 Interagency guidance and GAAP, these loan modifications, and certain subsequent modifications, are not considered to be troubled debt restructurings. Reserve for Unfunded Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets. Maintenance, repairs and minor improvements are charged to noninterest expense as incurred. The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy: Bank Buildings Up to 40 years Equipment to 10 years Furniture and Fixtures to 7 years Software to 5 years Automobiles to 4 years Other Real Estate Owned : Assets acquired through, or in lieu of, foreclosure are initially recorded at fair value, less estimated carrying and selling costs, when acquired, establishing a new cost basis. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Goodwill and Other Intangible Assets : Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Impairment is tested for annually and exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At the measurement date, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Core deposit intangibles represent premiums paid on acquired deposits based on the estimated fair value of the deposits at the time of purchase. These premiums are amortized over a ten year period. Bank Owned Life Insurance : The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income Taxes : Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Fair Values of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Derivative Financial Instruments : The Company accounts for its derivatives under ASC 815, “Derivatives and Hedging,” which requires recognition of all derivatives as either assets or liabilities in the balance sheet and requires measurement of those instruments at fair value through adjustments to accumulated other comprehensive income and/or current earnings, as appropriate. On the date the Company enters into a derivative contract, the Company designates the derivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability or of an unrecognized firm commitment attributable to the hedged risk are recorded in current period operations. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in accumulated other comprehensive income and subsequently reclassified to operations in the same period(s) that the hedged transaction impacts operations. For free-standing derivative instruments, changes in fair value are reported in current period operations. Prior to entering a hedge transaction, the Company formally documents the relationship between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions along with a formal assessment at both inception of the hedge and on an ongoing basis as to the effectiveness of the derivative instrument in offsetting changes in fair values or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued and the adjustment to fair value of the derivative instrument is recorded in operations. Likewise, if the risk exposure declines to acceptable levels, interest rate swaps may be terminated and the associated cost expensed or amortized and expensed, as appropriate. Dividend Restriction : Banking regulations require the maintenance of certain capital levels that may limit the amount of dividends that may be paid. Regulatory capital requirements are more fully disclosed in Note 17. Restrictions on Cash : The Company was not required to have cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements as of December 31, 2021 and 2020. Deposits held with the Federal Reserve Bank earn interest. Stock Compensation : In accordance with ASC 718 , “Stock Compensation,” the Company uses the fair value method of accounting for share-based compensation prescribed by the standard. The fair value of options granted is determined using the Black-Scholes option valuation model. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Earnings Per Share : Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per share includes the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share are presented as if all stock splits and stock dividends were effective from the earliest period presented through the date of issuance of the financial statements. Comprehensive Income : Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, unrealized gains and losses on securities transferred from available for sale to held to maturity and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity. Operating Segments : While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Revenue Recognition : ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company's revenue-generating transactions are not subject to Topic 606, including revenue generated from financial instruments, such as loans, letters of credit, loan processing fees and investment securities, as well as revenue related to mortgage banking activities, and BOLI, as these activities are subject to other accounting guidance. Descriptions of revenue-generating activities that are within the scope of Topic 606, and are presented in the accompanying Consolidated Statements of Earnings as components of noninterest income, are as follows: • Deposit services . Service charges on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized as incurred in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. • Merchant and debit card fees . Merchant and debit card fees include interchange income that is generated by our customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. Merchant service revenue is derived from third party vendors that process credit card transactions on behalf of our merchant customers. Merchant services revenue is recognized as incurred and is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin. • Fiduciary income . Trust income includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Investment management income is recognized on an accrual basis at the time the services are performed and when we have a right to invoice and are based on either the market value of the assets managed or the services provided. Administrative and advisory services income is recognized as incurred. • Other noninterest income . Other noninterest income includes among other things, mortgage loan origination fees, wire transfer fees, stop payment fees, loan administration fees and mortgage warehouse lending fees. The majority of these fees in other noninterest income are not subject to the requirements of ASC 606. Fees that are within the scope of ASC 606 are generally received and recognized as revenue at the time the performance obligations are met. Reclassification : Certain amounts in prior period financial statements have been reclassified to conform to current period presentation. These reclassifications are immaterial and have no effect on net income, total assets or stockholders' equity. Effect of Stock Splits and Stock Dividends on Prior Period Presentation : Earnings and dividends per share and weighted average shares outstanding are presented as if all stock splits and stock dividends were effective from the earliest period presented through the date of issuance of the financial statements. Unless indicated otherwise, other share amounts have not been adjusted. Recent Accounting Pronouncements : In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which sets forth a "current expected credit loss" ("CECL") model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the previous incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted CECL on January 1, 2020 . The day one impact of adopting CECL resulted in an allowance increase of $ 4,548 , or 28.1 %, from December 31, 2019. The day one increase was primarily due to recognizing expected lifetime losses in the portfolio and adding an economic forecast based upon our assumptions on January 1, 2020. The significant increase in the ACL provision during the year-end December 31, 2020 resulted primarily from changes in our CECL model assumptions as a result of COVID-19. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet (“OBS”) credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company record |
Premises and Equipment | Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets. Maintenance, repairs and minor improvements are charged to noninterest expense as incurred. The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy: Bank Buildings Up to 40 years Equipment to 10 years Furniture and Fixtures to 7 years Software to 5 years Automobiles to 4 years |
Other Real Estate Owned | Other Real Estate Owned : Assets acquired through, or in lieu of, foreclosure are initially recorded at fair value, less estimated carrying and selling costs, when acquired, establishing a new cost basis. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. |
Transfers of Financial Assets | Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets : Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Impairment is tested for annually and exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At the measurement date, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Core deposit intangibles represent premiums paid on acquired deposits based on the estimated fair value of the deposits at the time of purchase. These premiums are amortized over a ten year period. |
Bank Owned Life Insurance | Bank Owned Life Insurance : The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Income Taxes | Income Taxes : Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Fair Value of Financial Instruments | Fair Values of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. |
Loss Contingencies | Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Derivative Financial Instruments | Derivative Financial Instruments : The Company accounts for its derivatives under ASC 815, “Derivatives and Hedging,” which requires recognition of all derivatives as either assets or liabilities in the balance sheet and requires measurement of those instruments at fair value through adjustments to accumulated other comprehensive income and/or current earnings, as appropriate. On the date the Company enters into a derivative contract, the Company designates the derivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability or of an unrecognized firm commitment attributable to the hedged risk are recorded in current period operations. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in accumulated other comprehensive income and subsequently reclassified to operations in the same period(s) that the hedged transaction impacts operations. For free-standing derivative instruments, changes in fair value are reported in current period operations. Prior to entering a hedge transaction, the Company formally documents the relationship between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions along with a formal assessment at both inception of the hedge and on an ongoing basis as to the effectiveness of the derivative instrument in offsetting changes in fair values or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued and the adjustment to fair value of the derivative instrument is recorded in operations. Likewise, if the risk exposure declines to acceptable levels, interest rate swaps may be terminated and the associated cost expensed or amortized and expensed, as appropriate. |
Dividend Restriction | Dividend Restriction : Banking regulations require the maintenance of certain capital levels that may limit the amount of dividends that may be paid. Regulatory capital requirements are more fully disclosed in Note 17. |
Restrictions on Cash | Restrictions on Cash : The Company was not required to have cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements as of December 31, 2021 and 2020. Deposits held with the Federal Reserve Bank earn interest. |
Stock Compensation | Stock Compensation : In accordance with ASC 718 , “Stock Compensation,” the Company uses the fair value method of accounting for share-based compensation prescribed by the standard. The fair value of options granted is determined using the Black-Scholes option valuation model. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Earnings Per Share | Earnings Per Share : Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per share includes the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share are presented as if all stock splits and stock dividends were effective from the earliest period presented through the date of issuance of the financial statements. |
Comprehensive Income | Comprehensive Income : Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, unrealized gains and losses on securities transferred from available for sale to held to maturity and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity. |
Operating Segments | Operating Segments : While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Revenue Recognition | Revenue Recognition : ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company's revenue-generating transactions are not subject to Topic 606, including revenue generated from financial instruments, such as loans, letters of credit, loan processing fees and investment securities, as well as revenue related to mortgage banking activities, and BOLI, as these activities are subject to other accounting guidance. Descriptions of revenue-generating activities that are within the scope of Topic 606, and are presented in the accompanying Consolidated Statements of Earnings as components of noninterest income, are as follows: • Deposit services . Service charges on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized as incurred in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. • Merchant and debit card fees . Merchant and debit card fees include interchange income that is generated by our customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. Merchant service revenue is derived from third party vendors that process credit card transactions on behalf of our merchant customers. Merchant services revenue is recognized as incurred and is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin. • Fiduciary income . Trust income includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Investment management income is recognized on an accrual basis at the time the services are performed and when we have a right to invoice and are based on either the market value of the assets managed or the services provided. Administrative and advisory services income is recognized as incurred. • Other noninterest income . Other noninterest income includes among other things, mortgage loan origination fees, wire transfer fees, stop payment fees, loan administration fees and mortgage warehouse lending fees. The majority of these fees in other noninterest income are not subject to the requirements of ASC 606. Fees that are within the scope of ASC 606 are generally received and recognized as revenue at the time the performance obligations are met. |
Reclassification | Reclassification : Certain amounts in prior period financial statements have been reclassified to conform to current period presentation. These reclassifications are immaterial and have no effect on net income, total assets or stockholders' equity. |
Effect of Stock Splits and Stock Dividends on Prior Period Presentation | Effect of Stock Splits and Stock Dividends on Prior Period Presentation : Earnings and dividends per share and weighted average shares outstanding are presented as if all stock splits and stock dividends were effective from the earliest period presented through the date of issuance of the financial statements. Unless indicated otherwise, other share amounts have not been adjusted. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements : In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which sets forth a "current expected credit loss" ("CECL") model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the previous incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted CECL on January 1, 2020 . The day one impact of adopting CECL resulted in an allowance increase of $ 4,548 , or 28.1 %, from December 31, 2019. The day one increase was primarily due to recognizing expected lifetime losses in the portfolio and adding an economic forecast based upon our assumptions on January 1, 2020. The significant increase in the ACL provision during the year-end December 31, 2020 resulted primarily from changes in our CECL model assumptions as a result of COVID-19. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet (“OBS”) credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a decrease to retained earnings of $ 3,593 , net of tax effects of $ 955 , as of January 1, 2020 for the cumulative effect of adopting ASC 326. The adoption of ASU 2016-13 did not have a significant impact on our regulatory capital ratios. |
Subsequent Events | Subsequent Events : On March 4, 2022, the Company completed the issuance and sale of $ 35,000,000 in principal amount fixed-to-floating rate subordinated notes. The notes have a stated maturity date of April 1, 2032 , and bear interest at a fixed annual rate of 3.625 %, due semi-annually in arrears on April 1 and October 1, until April 1, 2027, at which point it converts to a floating rate instrument, payable quarterly starting on July 1, 2027, equal to the three-month term Secured Overnight Financing Rate (“SOFR”), reset quarterly, plus a spread of 192 basis points. The Company intends to use the net proceeds of the offering for general corporate purposes, including to repay debt and repurchase shares of capital stock. On March 9, 2022, the Board of Directors of the Company declared a quarterly cash dividend of $ 0.22 per share of common stock, representing a ten percent increase in the quarterly cash dividend, to be paid on April 13, 2022 to shareholders of record as of the close of business on March 28, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Life of Different Fixed Asset Classes | The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy: Bank Buildings Up to 40 years Equipment to 10 years Furniture and Fixtures to 7 years Software to 5 years Automobiles to 4 years |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity Securities | The following tables summarize the amortized cost and fair value of available for sale and held to maturity securities as of December 31, 2021 and securities available for sale as of December 31, 2020 and the corresponding amounts of gross unrealized gains and losses: December 31, 2021 Amortized Gross Gross Estimated Available for sale: U.S. government agencies $ 10,013 $ — $ 42 $ 9,971 Corporate bonds 35,080 940 85 35,935 Mortgage-backed securities 221,610 1,477 1,779 221,308 Collateralized mortgage obligations 74,925 971 904 74,992 Total available for sale $ 341,628 $ 3,388 $ 2,810 $ 342,206 Held to maturity: Municipal securities $ 181,310 $ 8,364 $ 118 $ 189,556 Mortgage-backed securities 2,953 — 37 2,916 Total held to maturity $ 184,263 $ 8,364 $ 155 $ 192,472 December 31, 2020 Amortized Gross Gross Estimated Available for sale: Corporate bonds $ 29,608 $ 1,382 $ 8 $ 30,982 Municipal securities 164,668 11,036 — 175,704 Mortgage-backed securities 104,210 3,041 87 107,164 Collateralized mortgage obligations 64,611 2,335 1 66,945 Total available for sale $ 363,097 $ 17,794 $ 96 $ 380,795 |
Schedule of Securities with Gross Unrealized Losses | Information pertaining to securities with gross unrealized losses as of December 31, 2021 and 2020, for which no allowance for credit losses has been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is detailed in the following tables: Less Than 12 Months 12 Months or Longer Total December 31, 2021 Gross Estimated Gross Estimated Gross Estimated Available for sale: U.S. government agencies $ ( 42 ) $ 9,971 $ — $ — $ ( 42 ) $ 9,971 Corporate bonds ( 85 ) 11,418 — — ( 85 ) 11,418 Mortgage-backed securities ( 1,383 ) 144,367 ( 396 ) 11,317 ( 1,779 ) 155,684 Collateralized mortgage obligations ( 904 ) 40,172 — — ( 904 ) 40,172 Total available for sale $ ( 2,414 ) $ 205,928 $ ( 396 ) $ 11,317 $ ( 2,810 ) $ 217,245 Held to maturity: Municipal securities $ ( 37 ) $ 7,772 $ ( 81 ) $ 2,996 $ ( 118 ) $ 10,768 Mortgage-backed securities ( 37 ) 2,916 — — ( 37 ) 2,916 Total held to maturity $ ( 74 ) $ 10,688 $ ( 81 ) $ 2,996 $ ( 155 ) $ 13,684 Less Than 12 Months 12 Months or Longer Total December 31, 2020 Gross Estimated Gross Estimated Gross Estimated Available for sale: Corporate bonds $ ( 8 ) $ 2,493 $ — $ — $ ( 8 ) $ 2,493 Mortgage-backed securities ( 87 ) 25,775 — — ( 87 ) 25,775 Collateralized mortgage obligations — — ( 1 ) 106 ( 1 ) 106 Total available for sale $ ( 95 ) $ 28,268 $ ( 1 ) $ 106 $ ( 96 ) $ 28,374 |
Investments Classified by Contractual Maturity Date | The contractual maturities at December 31, 2021 of available for sale and held to maturity securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties. Available for Sale Held to Maturity December 31, 2021 Amortized Estimated Amortized Estimated Due within one year $ — $ — $ 13,471 $ 13,578 Due after one year through five years 14,633 15,223 57,858 60,065 Due after five years through ten years 30,460 30,683 44,342 46,491 Due after ten years — — 65,639 69,422 Mortgage-backed securities 221,610 221,308 2,953 2,916 Collateralized mortgage obligations 74,925 74,992 — — Total securities $ 341,628 $ 342,206 $ 184,263 $ 192,472 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Summary of Loan Portfolio by Type of Loan | The following table summarizes the Company’s loan portfolio by type of loan as of: 2021 2020 Commercial and industrial $ 280,569 $ 358,958 Real estate: Construction and development 307,797 270,407 Commercial real estate 622,842 594,216 Farmland 145,501 78,508 1-4 family residential 410,673 389,096 Multi-family residential 30,971 21,701 Consumer 50,965 51,044 Agricultural 14,639 15,734 Warehouse lending (1) 43,720 86,813 Overdrafts 363 342 Total loans (2) 1,908,040 1,866,819 Net of: Deferred loan fees, net ( 1,531 ) ( 1,463 ) Allowance for credit losses ( 30,433 ) ( 33,619 ) Total net loans (2) $ 1,876,076 $ 1,831,737 (1) Warehouse lending is presented as a component of commercial and industrial loans in remaining tables. (2) Excludes accrued interest receivable on loans of $ 5.8 million and $ 7.0 million as of December 31, 2021 and 2020, respectively, which is presented separately on the consolidated balance sheets. The Company has entered into transactions, at prevailing market rates and terms, with certain directors, executive officers, significant shareholders and their affiliates. Loans to such related parties at December 31, 2021 and 2020, totaled $ 44,052 and $ 52,559 , respectively. Unfunded commitments to such related parties at December 31, 2021 totaled $ 40,244 . Loans to principal officers, directors, and their affiliates during the year ended December 31, 2021, was as follows: December 31, 2021 Beginning balance $ 52,559 New loans 91,192 Effect of changes in composition of related parties ( 43 ) Repayments ( 99,656 ) Ending balance $ 44,052 |
Schedule of Loans to Principal Officers, Directors and Affiliates | Loans to principal officers, directors, and their affiliates during the year ended December 31, 2021, was as follows: December 31, 2021 Beginning balance $ 52,559 New loans 91,192 Effect of changes in composition of related parties ( 43 ) Repayments ( 99,656 ) Ending balance $ 44,052 |
Schedule of Allowance for Credit Losses Activity | The Company’s estimate of the allowance for credit losses (“ACL”) reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring. The following tables present the activity in the ACL by class of loans for the years ended December 31, 2021, 2020 and 2019: For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 4,033 $ 4,735 $ 15,780 $ 1,220 $ 6,313 $ 363 $ 929 $ 239 $ 7 $ 33,619 Provision for credit losses ( 43 ) ( 515 ) ( 1,229 ) 478 ( 495 ) 33 ( 51 ) ( 78 ) 200 ( 1,700 ) Loans charged-off ( 411 ) — ( 816 ) — — — ( 151 ) — ( 263 ) ( 1,641 ) Recoveries 21 1 30 — — — 35 8 60 155 Ending balance $ 3,600 $ 4,221 $ 13,765 $ 1,698 $ 5,818 $ 396 $ 762 $ 169 $ 4 $ 30,433 For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance, prior to adoption of ASC 326 $ 2,056 $ 2,378 $ 6,853 $ 570 $ 3,125 $ 409 $ 602 $ 197 $ 12 $ 16,202 Impact of adopting ASC 326 546 323 2,228 26 1,339 ( 50 ) 72 73 ( 9 ) 4,548 Provision for credit losses 1,398 2,034 6,698 624 1,915 4 373 ( 33 ) 187 13,200 Loans charged-off ( 68 ) — — — ( 68 ) — ( 155 ) ( 18 ) ( 234 ) ( 543 ) Recoveries 101 — 1 — 2 — 37 20 51 212 Ending balance $ 4,033 $ 4,735 $ 15,780 $ 1,220 $ 6,313 $ 363 $ 929 $ 239 $ 7 $ 33,619 For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Provision for loan losses ( 117 ) 458 827 ( 73 ) 268 ( 222 ) ( 2 ) ( 41 ) 152 1,250 Loans charged-off ( 86 ) — — — ( 14 ) — ( 72 ) ( 89 ) ( 192 ) ( 453 ) Recoveries 508 — 1 — 3 — 111 89 42 754 Ending balance $ 2,056 $ 2,378 $ 6,853 $ 570 $ 3,125 $ 409 $ 602 $ 197 $ 12 $ 16,202 |
Summary of Credit Exposure | The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2021: December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 176,972 $ 31,337 $ 16,207 $ 6,449 $ 3,493 $ 14,657 $ 74,364 $ 323,479 Special mention — 88 — — 14 — — 102 Substandard — 272 55 192 40 1 — 560 Nonaccrual 14 101 — 22 — 11 — 148 Total commercial and industrial loans $ 176,986 $ 31,798 $ 16,262 $ 6,663 $ 3,547 $ 14,669 $ 74,364 $ 324,289 Charge-offs $ — $ — $ ( 168 ) $ ( 67 ) $ ( 115 ) $ — $ ( 61 ) $ ( 411 ) Recoveries — — — — — — 21 21 Current period net $ — $ — $ ( 168 ) $ ( 67 ) $ ( 115 ) $ — $ ( 40 ) $ ( 390 ) Construction and development: Pass $ 180,056 $ 68,765 $ 20,499 $ 6,507 $ 8,235 $ 13,565 $ 8,615 $ 306,242 Special mention — — — — 944 — — 944 Substandard — — 609 2 — — — 611 Nonaccrual — — — — — — — — Total construction and development loans $ 180,056 $ 68,765 $ 21,108 $ 6,509 $ 9,179 $ 13,565 $ 8,615 $ 307,797 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 1 — 1 Current period net $ — $ — $ — $ — $ — $ 1 $ — $ 1 Commercial real estate: Pass $ 134,617 $ 93,806 $ 80,733 $ 59,380 $ 43,457 $ 145,477 $ 16,065 $ 573,535 Special mention — 765 — — 4,550 788 — 6,103 Substandard — 6,987 — 10,041 12,981 12,553 — 42,562 Nonaccrual — — 124 69 32 337 80 642 Total commercial real estate loans $ 134,617 $ 101,558 $ 80,857 $ 69,490 $ 61,020 $ 159,155 $ 16,145 $ 622,842 Charge-offs $ — $ — $ ( 17 ) $ ( 56 ) $ ( 472 ) $ ( 271 ) $ — $ ( 816 ) Recoveries — — 19 — 11 — — 30 Current period net $ — $ — $ 2 $ ( 56 ) $ ( 461 ) $ ( 271 ) $ — $ ( 786 ) Farmland: Pass $ 94,491 $ 11,868 $ 8,664 $ 7,456 $ 5,191 $ 11,145 $ 6,290 $ 145,105 Special mention — — — — — 26 — 26 Substandard — — — — — 72 — 72 Nonaccrual — 195 — — — 103 — 298 Total farmland loans $ 94,491 $ 12,063 $ 8,664 $ 7,456 $ 5,191 $ 11,346 $ 6,290 $ 145,501 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Total 1-4 family residential: Pass $ 132,448 $ 64,590 $ 43,016 $ 36,501 $ 26,987 $ 91,864 $ 13,714 $ 409,120 Special mention — — — — — 18 — 18 Substandard — — — — — — — — Nonaccrual 170 — — 180 58 1,127 — 1,535 Total 1-4 family residential loans $ 132,618 $ 64,590 $ 43,016 $ 36,681 $ 27,045 $ 93,009 $ 13,714 $ 410,673 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Multi-family residential: Pass $ 16,663 $ 4,286 $ 6,436 $ 908 $ 474 $ 2,113 $ 91 $ 30,971 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 16,663 $ 4,286 $ 6,436 $ 908 $ 474 $ 2,113 $ 91 $ 30,971 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Consumer and overdrafts: Pass $ 24,715 $ 11,589 $ 4,557 $ 4,647 $ 558 $ 543 $ 4,478 $ 51,087 Special mention 76 — 5 — — — — 81 Substandard — — — — — — — — Nonaccrual 56 27 10 62 5 — — 160 Total consumer loans and overdrafts $ 24,847 $ 11,616 $ 4,572 $ 4,709 $ 563 $ 543 $ 4,478 $ 51,328 Charge-offs $ ( 285 ) $ ( 36 ) $ ( 57 ) $ ( 32 ) $ ( 2 ) $ ( 2 ) $ — $ ( 414 ) Recoveries 61 3 — 8 2 21 — 95 Current period net $ ( 224 ) $ ( 33 ) $ ( 57 ) $ ( 24 ) $ — $ 19 $ — $ ( 319 ) Agricultural: Pass $ 3,557 $ 1,866 $ 927 $ 917 $ 221 $ 526 $ 6,492 $ 14,506 Special mention — — — — 13 — — 13 Substandard — 14 4 15 39 — — 72 Nonaccrual — — — 8 — 40 — 48 Total agricultural loans $ 3,557 $ 1,880 $ 931 $ 940 $ 273 $ 566 $ 6,492 $ 14,639 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 8 — 8 Current period net $ — $ — $ — $ — $ — $ 8 $ — $ 8 Total loans: Pass $ 763,519 $ 288,107 $ 181,039 $ 122,765 $ 88,616 $ 279,890 $ 130,109 $ 1,854,045 Special mention 76 853 5 — 5,521 832 — 7,287 Substandard — 7,273 668 10,250 13,060 12,626 — 43,877 Nonaccrual 240 323 134 341 95 1,618 80 2,831 Total loans $ 763,835 $ 296,556 $ 181,846 $ 133,356 $ 107,292 $ 294,966 $ 130,189 $ 1,908,040 Charge-offs $ ( 285 ) $ ( 36 ) $ ( 242 ) $ ( 155 ) $ ( 589 ) $ ( 273 ) $ ( 61 ) $ ( 1,641 ) Recoveries 61 3 19 8 13 30 21 155 Total current period net (charge-offs) recoveries $ ( 224 ) $ ( 33 ) $ ( 223 ) $ ( 147 ) $ ( 576 ) $ ( 243 ) $ ( 40 ) $ ( 1,486 ) The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2020: December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 278,687 $ 30,563 $ 12,860 $ 4,366 $ 6,131 $ 16,294 $ 90,074 $ 438,975 Special mention 124 119 222 4,040 1,324 — — 5,829 Substandard — 307 540 50 43 — — 940 Nonaccrual — — 13 — 14 — — 27 Total commercial and industrial loans $ 278,811 $ 30,989 $ 13,635 $ 8,456 $ 7,512 $ 16,294 $ 90,074 $ 445,771 Charge-offs $ — $ — $ ( 43 ) $ — $ — $ — $ ( 25 ) $ ( 68 ) Recoveries — — 43 — — 14 44 101 Current period net $ — $ — $ — $ — $ — $ 14 $ 19 $ 33 Construction and development: Pass $ 118,590 $ 76,926 $ 26,212 $ 24,524 $ 7,742 $ 10,507 $ 3,266 $ 267,767 Special mention 356 — — 990 — — — 1,346 Substandard — 609 5 — 680 — — 1,294 Nonaccrual — — — — — — — — Total construction and development loans $ 118,946 $ 77,535 $ 26,217 $ 25,514 $ 8,422 $ 10,507 $ 3,266 $ 270,407 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 91,819 $ 80,753 $ 89,542 $ 72,311 $ 86,946 $ 123,463 $ 5,890 $ 550,724 Special mention — 2,716 3,542 849 5,724 449 — 13,280 Substandard — — 2,010 4,913 4,445 8,240 — 19,608 Nonaccrual — 1,140 151 4,158 4,769 386 — 10,604 Total commercial real estate loans $ 91,819 $ 84,609 $ 95,245 $ 82,231 $ 101,884 $ 132,538 $ 5,890 $ 594,216 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 1 — 1 Current period net $ — $ — $ — $ — $ — $ 1 $ — $ 1 Farmland: Pass $ 17,444 $ 12,668 $ 10,327 $ 6,620 $ 9,904 $ 15,402 $ 5,864 $ 78,229 Special mention — — — — — 35 — 35 Substandard — — — — — 129 — 129 Nonaccrual — — — — — 115 — 115 Total farmland loans $ 17,444 $ 12,668 $ 10,327 $ 6,620 $ 9,904 $ 15,681 $ 5,864 $ 78,508 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Total 1-4 family residential: Pass $ 87,578 $ 62,937 $ 52,087 $ 37,224 $ 43,858 $ 93,486 $ 10,091 $ 387,261 Special mention — — — — — 168 — 168 Substandard — — — — — — — — Nonaccrual — — 326 44 163 1,134 — 1,667 Total 1-4 family residential loans $ 87,578 $ 62,937 $ 52,413 $ 37,268 $ 44,021 $ 94,788 $ 10,091 $ 389,096 Charge-offs $ — $ — $ — $ — $ ( 9 ) $ ( 59 ) $ — $ ( 68 ) Recoveries — — — — — 2 — 2 Current period net $ — $ — $ — $ — $ ( 9 ) $ ( 57 ) $ — $ ( 66 ) Multi-family residential: Pass $ 5,889 $ 4,498 $ 3,617 $ 1,371 $ 1,737 $ 4,391 $ 198 $ 21,701 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 5,889 $ 4,498 $ 3,617 $ 1,371 $ 1,737 $ 4,391 $ 198 $ 21,701 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Consumer and overdrafts: Pass $ 24,740 $ 11,176 $ 9,369 $ 1,701 $ 735 $ 513 $ 2,825 $ 51,059 Special mention 16 83 9 7 — — — 115 Substandard — — — — — — — — Nonaccrual 24 36 131 20 1 — — 212 Total consumer loans and overdrafts $ 24,780 $ 11,295 $ 9,509 $ 1,728 $ 736 $ 513 $ 2,825 $ 51,386 Charge-offs $ ( 243 ) $ ( 63 ) $ ( 31 ) $ ( 43 ) $ ( 3 ) $ ( 6 ) $ — $ ( 389 ) Recoveries 49 2 12 8 4 13 — 88 Current period net $ ( 194 ) $ ( 61 ) $ ( 19 ) $ ( 35 ) $ 1 $ 7 $ — $ ( 301 ) Agricultural: Pass $ 3,489 $ 1,718 $ 1,893 $ 607 $ 273 $ 189 $ 7,408 $ 15,577 Special mention — — — 36 — — — 36 Substandard — 7 10 — 24 — — 41 Nonaccrual — — 33 — 45 2 — 80 Total agricultural loans $ 3,489 $ 1,725 $ 1,936 $ 643 $ 342 $ 191 $ 7,408 $ 15,734 Charge-offs $ — $ — $ ( 18 ) $ — $ — $ — $ — $ ( 18 ) Recoveries — — — — 20 — — 20 Current period net $ — $ — $ ( 18 ) $ — $ 20 $ — $ — $ 2 Total loans: Pass $ 628,236 $ 281,239 $ 205,907 $ 148,724 $ 157,326 $ 264,245 $ 125,616 $ 1,811,293 Special mention 496 2,918 3,773 5,922 7,048 652 — 20,809 Substandard — 923 2,565 4,963 5,192 8,369 — 22,012 Nonaccrual 24 1,176 654 4,222 4,992 1,637 — 12,705 Total loans $ 628,756 $ 286,256 $ 212,899 $ 163,831 $ 174,558 $ 274,903 $ 125,616 $ 1,866,819 Charge-offs $ ( 243 ) $ ( 63 ) $ ( 92 ) $ (43 ) $ ( 12 ) $ ( 65 ) $ ( 25 ) $ ( 543 ) Recoveries 49 2 55 8 24 30 44 212 Total current period net (charge-offs) recoveries $ ( 194 ) $ ( 61 ) $ ( 37 ) $ ( 35 ) $ 12 $ ( 35 ) $ 19 $ ( 331 ) |
Summary of Amortized Cost Basis of Collateral-dependent Loans | The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on the ACL, as of December 31, 2021: Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ 116 $ — $ 116 $ 40 Real estate: Construction and development 609 — 609 207 Commercial real estate 4,319 — 4,319 553 Total $ 5,044 $ — $ 5,044 $ 800 The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on the ACL, as of December 31, 2020: Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ 129 $ — $ 129 $ 44 Real estate: Construction and development 609 — 609 208 Commercial real estate 9,989 — 9,989 2,048 Total $ 10,727 $ — $ 10,727 $ 2,300 |
Summary of Payment Status of Loans | The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans and loans 90 days or more past due continuing to accrue interest as of: December 31, 2021 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 969 $ 38 $ 134 $ 1,141 $ 323,148 $ 324,289 $ — Real estate: Construction and 885 132 — 1,017 306,780 307,797 — Commercial real — 360 350 710 622,132 622,842 — Farmland 114 87 195 396 145,105 145,501 — 1-4 family residential 1,650 123 410 2,183 408,490 410,673 — Multi-family residential — — — — 30,971 30,971 — Consumer 189 113 68 370 50,595 50,965 — Agricultural 41 8 — 49 14,590 14,639 — Overdrafts — — — — 363 363 — Total $ 3,848 $ 861 $ 1,157 $ 5,866 $ 1,902,174 $ 1,908,040 $ — December 31, 2020 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 385 $ 25 $ 22 $ 432 $ 445,339 $ 445,771 $ — Real estate: Construction and 256 — — 256 270,151 270,407 — Commercial real 1,094 — 10,105 11,199 583,017 594,216 — Farmland 117 3 — 120 78,388 78,508 — 1-4 family residential 2,097 556 127 2,780 386,316 389,096 — Multi-family residential — — — — 21,701 21,701 — Consumer 383 124 97 604 50,440 51,044 — Agricultural 50 46 45 141 15,593 15,734 — Overdrafts — — — — 342 342 — Total $ 4,382 $ 754 $ 10,396 $ 15,532 $ 1,851,287 $ 1,866,819 $ — |
Schedule of Nonaccrual Loans | The following table presents information regarding nonaccrual loans as of: 2021 2020 Commercial and industrial $ 148 $ 27 Real estate: Commercial real estate 642 10,604 Farmland 298 115 1-4 family residential 1,535 1,667 Consumer and overdrafts 160 212 Agricultural 48 80 Total $ 2,831 $ 12,705 |
Summary of Troubled Debt Restructuring | There was one loan modified as a TDR during the year ended December 31, 2021. No TDRs subsequently defaulted during 2021 or 2020 , and the TDRs described above did no t increase the allowance for credit losses and did no t result in any charge-offs during years ended December 31, 2021 and 2020. The following tables present loans, by class, modified as a TDR during the years ended December 31, 2021, 2020 and 2019: December 31, 2021 Number Pre-Modification Post-Modification Troubled Debt Restructurings: Commercial and industrial 1 $ 17 $ 14 Total 1 $ 17 $ 14 December 31, 2020 Number Pre-Modification Post-Modification Troubled Debt Restructurings: Construction and development 2 $ 1,289 $ 1,081 Commercial and industrial 1 129 85 Commercial real estate 1 1,017 670 Total 4 $ 2,435 $ 1,836 December 31, 2019 Number Pre-Modification Post-Modification Troubled Debt Restructurings: Commercial real estate 4 $ 1,017 $ 670 Total 4 $ 1,017 $ 670 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment balances, by type, were as follows: December 31, December 31, Land $ 10,760 $ 10,944 Building and improvements 59,613 58,569 Furniture, fixtures and equipment 20,221 19,641 Automobiles 434 400 91,028 89,554 Less: accumulated depreciation 37,558 34,342 $ 53,470 $ 55,212 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets as of December 31 are summarized as follows: 2021 2020 Beginning of year $ 32,160 $ 32,160 Effect of acquisitions — — End of year $ 32,160 $ 32,160 |
CORE DEPOSIT INTANGIBLES (Table
CORE DEPOSIT INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite Lived Intangible Assets | Changes in the carrying amount of core deposit intangibles in the accompanying consolidated balance sheets as of December 31 are summarized as follows: 2021 2020 Beginning of year $ 2,999 $ 3,853 Amortization ( 686 ) ( 854 ) End of year $ 2,313 $ 2,999 |
Schedule of Future Amortization Expense | The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2021 was as follows: Year Ended December 31, Amount 2022 $ 453 2023 441 2024 424 2025 316 2026 272 Thereafter 407 $ 2,313 |
INTEREST-BEARING DEPOSITS (Tabl
INTEREST-BEARING DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interest Bearing Deposits Abstract | |
Schedule of Deposit Liabilities | Interest-bearing deposits, by type of account, were as follows as of: December 31, 2021 December 31, 2020 NOW accounts $ 293,948 $ 259,357 Savings and money market accounts 1,032,698 868,643 Time deposits $250,000 or less 218,389 245,796 Time deposits greater than $250,000 111,274 132,854 $ 1,656,309 $ 1,506,650 |
Schedule of Time Deposit Maturities | Year-end maturities of time deposits, as of December 31, 2021, were as follows: Year Ended December 31, Amount 2022 $ 278,312 2023 33,967 2024 8,531 2025 2,660 2026 6,193 Thereafter — $ 329,663 |
BORROWED MONEY (Tables)
BORROWED MONEY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Maturities | Fixed rate advances, with monthly interest payments, principal due in: Year Current Principal Due 2022 0.22 % $ 41,500 2024 1.76 % 6,000 $ 47,500 |
SUBORDINATED DEBENTURES (Tables
SUBORDINATED DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Debentures and Other Debentures | Subordinated debentures were made up of the following as of: December 31, 2021 December 31, 2020 Trust II Debentures $ 3,093 $ 3,093 Trust III Debentures 2,062 2,062 DCB Trust I Debentures 5,155 5,155 Other debentures 9,500 9,500 $ 19,810 $ 19,810 Trust II Debentures Trust III Debentures DCB Trust I Original amount $ 3,093 $ 2,062 $ 5,155 Maturity date October 30, 2032 October 1, 2036 June 15, 2037 Interest due Quarterly Quarterly Quarterly |
Schedule of Trusts | Trust II Trust III DCB Trust I Formation date October 30, 2002 July 25, 2006 March 29, 2007 Capital trust pass-through securities Number of shares 3,000 2,000 5,000 Original liquidation value $ 3,000 $ 2,000 $ 5,000 Common securities liquidation value 93 62 155 |
Schedule of Principal Payments and Weighted Average Rates of Other Debentures | The scheduled principal payments and weighted average rates of other debentures are as follows: Year Current Principal Due 2022 2.45 % $ 2,000 2023 2.85 % 3,500 2024 3.74 % 4,000 $ 9,500 |
EQUITY AWARDS (Tables)
EQUITY AWARDS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions | The fair value of options granted was determined using the following weighted-average assumptions as of grant date, for the years ended December 31: 2021 2020 2019 Risk-free interest rate 0.98 % 0.79 % 2.11 % Expected term (in years) 6.50 6.50 6.50 Expected stock price volatility 23.98 % 22.26 % 19.89 % Dividend yield 2.35 % 2.56 % 2.36 % |
Schedule of Stock Option Activity | A summary of stock option activity in the Plan during the years ended December 31, 2021 and 2020 follows: 2021 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 506,200 $ 26.81 5.82 $ 1,805 Effect of 10 % stock dividend 50,770 Granted 58,000 34.30 9.67 112 Exercised ( 89,870 ) 22.47 3.31 1,273 Forfeited ( 22,320 ) 26.16 6.96 222 Balance, December 31, 2021 502,780 $ 25.77 5.59 $ 5,936 Exercisable at end of period 295,696 $ 24.09 4.40 $ 3,989 2020 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 508,000 $ 26.68 6.24 $ 3,159 Granted 74,000 28.67 9.57 145 Exercised ( 26,600 ) 24.00 1.79 158 Forfeited ( 49,200 ) 29.71 7.58 84 Balance, December 31, 2020 506,200 $ 26.81 5.82 $ 1,805 Exercisable at end of period 291,520 $ 25.63 4.74 $ 1,339 |
Schedule of Nonvested Stock Option Activity | A summary of nonvested stock option activity in the Plan during the years ended December 31, 2021 and 2020 follows: 2021 Number of Weighted-Average Outstanding at beginning of year 214,680 $ 4.46 Effect of 10 % stock dividend 23,218 Granted 58,000 5.92 Vested ( 76,494 ) 5.39 Forfeited ( 12,320 ) 6.99 Balance, December 31, 2021 207,084 $ 5.23 2020 Number of Weighted-Average Outstanding at beginning of year 251,120 $ 4.97 Granted 74,000 4.46 Vested ( 71,040 ) 5.79 Forfeited ( 39,400 ) 2.19 Balance, December 31, 2020 214,680 $ 4.46 |
Plan Information | Information related to stock options in the Plan is as follows for the years ended: 2021 2020 2019 Intrinsic value of options exercised $ 1,273 $ 158 $ 314 Cash received from options exercised 2,019 638 925 Weighted average fair value of options granted 5.92 4.46 4.97 |
Summary of Restricted Stock Awards and Units Activity | A summary of restricted stock activity in the Plan during the years ended December 31, 2021 and 2020 follows: 2021 Number of Weighted-Average Outstanding at beginning of year 35,300 $ 29.72 Effect of 10 % stock dividend 3,530 Granted 3,500 33.09 Vested ( 12,140 ) 27.05 Balance, December 31, 2021 30,190 $ 27.52 2020 Number of Weighted-Average Outstanding at beginning of year 31,459 $ 30.29 Granted 19,500 29.32 Vested ( 15,179 ) 30.33 Forfeited ( 480 ) 31.57 Balance, December 31, 2020 35,300 $ 29.72 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Summarizes Other Information Related to Operating Leases | The table below summarizes other information related to our operating leases as of: December 31, 2021 December 31, 2020 Operating leases Operating lease right-of-use assets $ 14,376 $ 13,291 Operating lease liabilities 14,882 13,539 Weighted average remaining lease term Operating leases 8 years 9 years Weighted average discount rate Operating leases 1.95 % 2.19 % |
Schedule of Minimum Future Lease Payments Under Non-Cancelable Operating Leases | The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2026 and thereafter. Minimum future lease payments under these non-cancelable operating leases as of December 31, 2021, are as follows: Year Ended December 31, Amount 2022 $ 2,155 2023 2,093 2024 2,039 2025 1,870 2026 1,642 Thereafter 5,855 Total lease payments 15,654 Less: interest ( 772 ) Present value of lease liabilities $ 14,882 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The consolidated provision for income taxes was as follows as of December 31: 2021 2020 2019 Current federal tax expense $ 8,893 $ 10,542 $ 6,097 Deferred federal tax benefit ( 143 ) ( 4,647 ) ( 319 ) Total $ 8,750 $ 5,895 $ 5,778 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for federal income taxes differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis as of December 31: 2021 2020 2019 Federal statutory income tax at 21 % $ 10,197 $ 6,992 $ 6,732 Tax exempt interest income ( 1,043 ) ( 1,065 ) ( 1,027 ) Earnings of bank owned life insurance ( 235 ) ( 182 ) ( 192 ) Nondeductible expenses 180 356 462 Other ( 349 ) ( 206 ) ( 197 ) Total $ 8,750 $ 5,895 $ 5,778 |
Schedule of Deferred Tax Asset and Liabilities | The following table summarizes the components of our deferred tax assets and liabilities as of December 31, 2021 and 2020. Our net deferred tax assets are included in other assets in the accompanying consolidated balance sheets. 2021 2020 Deferred tax assets: Allowance for credit losses $ 6,391 $ 7,060 Deferred compensation 1,043 920 Bonus accrual 499 422 Deferred loan fees, net 253 259 Accretion of acquisition allowance 72 112 Other real estate owned — 2 Other 397 437 Total deferred tax assets 8,655 9,212 Deferred tax liabilities: Unrealized gain on available for sale securities ( 122 ) ( 3,717 ) Premises and equipment ( 2,138 ) ( 2,721 ) Prepaid expenses ( 306 ) ( 343 ) Intangibles ( 266 ) ( 350 ) Other ( 46 ) ( 42 ) Total deferred tax liabilities ( 2,878 ) ( 7,173 ) Net deferred tax asset $ 5,777 $ 2,039 |
NONINTEREST INCOME AND NONINT_2
NONINTEREST INCOME AND NONINTEREST EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income and Expenses | Other operating income consisted of the following for the years ended December 31: 2021 2020 2019 Service charges $ 3,772 $ 3,064 $ 3,715 Net realized loss on securities transactions — — ( 22 ) Net realized gain on sale of loans 5,528 6,834 2,850 Fiduciary and custodial income 2,333 2,012 1,760 Bank-owned life insurance income 840 838 774 Merchant and debit card fees 6,717 5,515 4,264 Loan processing fee income 669 628 590 Warehouse lending fees 812 957 679 Mortgage fee income 612 771 323 Other noninterest income 3,293 2,418 2,029 Total $ 24,576 $ 23,037 $ 16,962 Other operating expense consisted of the following for the years ended December 31: 2021 2020 2019 Employee compensation and benefits $ 42,345 $ 37,193 $ 35,907 Occupancy expenses 10,944 10,220 9,834 Legal and professional fees 2,599 2,650 2,610 Software and technology 4,594 4,104 3,341 Amortization 1,154 1,349 1,378 Director and committee fees 823 846 873 Advertising and promotions 1,758 1,498 1,655 ATM and debit card expense 2,445 1,951 1,347 Telecommunication expense 807 864 676 FDIC insurance assessment fees 851 821 173 Other noninterest expense 4,958 5,026 4,731 Total $ 73,278 $ 66,522 $ 62,525 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Information Pertaining to Outstanding Interest Rate Swap Agreements | The information pertaining to outstanding interest rate swap agreements used to hedge floating rate debentures and FHLB advances was as follows as of: December 31, 2021 Notional Pay Receive Effective Maturity Unrealized $ 15,000 0.668 % 3 month LIBOR 3/18/2020 1.22 $ 8 15,000 0.790 % 3 month LIBOR 3/18/2020 3.22 ( 184 ) 10,000 0.530 % 3 month LIBOR 3/23/2020 1.23 ( 12 ) December 31, 2020 Notional Pay Receive Effective Maturity Unrealized $ 2,000 5.979 % 3 month LIBOR plus 1.67 % 10/1/2016 5.25 $ 408 3,000 7.505 % 3 month LIBOR plus 3.35 % 10/30/2012 1.83 221 15,000 0.668 % 3 month LIBOR 3/18/2020 2.22 159 15,000 0.790 % 3 month LIBOR 3/18/2020 4.22 288 10,000 0.530 % 3 month LIBOR 3/23/2020 2.23 75 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Letters of Credit Outstanding | Commitments and letters of credit outstanding were as follows as of: Contract or Notional Amount 2021 2020 Commitments to extend credit $ 405,269 $ 324,276 Letters of credit 8,357 8,488 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Banking And Thrifts [Abstract] | |
Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios | A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios are presented in the following tables as of: Actual Minimum Required Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Total capital to risk-weighted assets: Consolidated $ 297,370 14.51 % $ 163,986 8.00 % $ 215,232 10.50 % n/a Bank 311,335 15.19 % 163,936 8.00 % 215,166 10.50 % $ 204,920 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 271,696 13.25 % 122,990 6.00 % 174,235 8.50 % n/a Bank 285,661 13.94 % 122,952 6.00 % 174,182 8.50 % 163,936 8.00 % Tier 1 capital to average assets: (1) Consolidated 271,696 9.18 % 118,369 4.00 % 118,369 4.00 % n/a Bank 285,661 9.66 % 118,345 4.00 % 118,345 4.00 % 147,931 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 261,386 12.75 % 92,242 4.50 % 143,488 7.00 % n/a Bank 285,661 13.94 % 92,214 4.50 % 143,444 7.00 % 133,198 6.50 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Actual Minimum Required Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital to risk-weighted assets: Consolidated $ 263,144 13.20 % $ 159,496 8.00 % $ 209,338 10.50 % n/a Bank 285,490 14.32 % 159,514 8.00 % 209,362 10.50 % $ 199,392 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 238,115 11.94 % 119,622 6.00 % 169,464 8.50 % n/a Bank 260,459 13.06 % 119,635 6.00 % 169,483 8.50 % 159,514 8.00 % Tier 1 capital to average assets: (1) Consolidated 238,115 9.13 % 104,293 4.00 % 104,293 4.00 % n/a Bank 260,459 9.99 % 104,293 4.00 % 104,293 4.00 % 130,366 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 227,805 11.43 % 89,716 4.50 % 139,559 7.00 % n/a Bank 260,459 13.06 % 89,726 4.50 % 139,574 7.00 % 129,605 6.50 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of Securities Sold Under Agreements to Repurchase | Information concerning securities sold under agreements to repurchase is summarized as follows as of December 31: 2021 2020 Average balance during the year $ 14,812 $ 18,115 Average interest rate during the year 0.11 % 0.18 % Maximum month-end balance during the year $ 36,322 $ 21,400 Weighted average interest rate at year-end 0.76 % 0.19 % |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets (Liabilities) Measured at Fair Value | The following tables summarize quantitative disclosures about the fair value measurements for each category of financial assets (liabilities) carried at fair value: December 31, 2021 Fair Value Quoted Significant Significant Assets at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 221,308 $ — $ 221,308 $ — Collateralized mortgage obligations 74,992 — 74,992 — Corporate bonds 35,935 — 35,935 — U.S. government agencies 9,971 — 9,971 — Loans held for sale 4,129 — — 4,129 Cash surrender value of life insurance 37,141 — 37,141 — SBA servicing assets 877 — — 877 Derivative instrument assets ( 196 ) — ( 196 ) — Derivative instrument liabilities 8 — 8 — Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 4,244 — — 4,244 December 31, 2020 Fair Value Quoted Significant Significant Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 107,164 $ — $ 107,164 $ — Collateralized mortgage obligations 66,945 — 66,945 — Municipal securities 175,704 — 175,704 — Corporate bonds 30,982 — 30,982 — Loans held for sale 5,542 — — 5,542 Cash surrender value of life insurance 35,510 — 35,510 — SBA servicing assets 763 — — 763 Derivative instrument assets 629 — 629 — Derivative instrument liabilities ( 1,151 ) — ( 1,151 ) — Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 8,427 — — 8,427 |
Schedule of Foreclosed Assets Measured at Fair Value | The following table presents foreclosed assets that were remeasured and recorded at fair value as of: 2021 2020 2019 Other real estate owned remeasured at initial recognition: Carrying value of other real estate owned prior to remeasurement $ — $ 42 $ 147 Charge-offs recognized in the allowance for credit losses — ( 9 ) ( 11 ) Fair value of other real estate owned remeasured at initial recognition $ — $ 33 $ 136 Other real estate owned remeasured subsequent to initial recognition: Carrying value of other real estate owned prior to remeasurement $ — $ 62 $ 35 Write-downs included in collection and other real estate owned expense — ( 1 ) ( 10 ) Fair value of other real estate owned remeasured subsequent to initial recognition $ — $ 61 $ 25 There were no nonrecurring Level 3 fair value measurements as of December 31, 2021 . |
Schedule of Quantitative Information About Nonrecurring Level 3 Fair Value Measurements | The following table presents quantitative information about nonrecurring Level 3 fair value measurements as of December 31, 2020: December 31, 2020 Fair Value Valuation Unobservable Input(s) Range Other real estate owned $ 404 Appraisal value of collateral Selling costs or other normal adjustments 10 %- 20 % ( 16 %) |
Schedule of Individually Evaluated Collateral Dependent Loans at Fair Value | The following tables present information on individually evaluated collateral dependent loans as of December 31, 2021 and 2020: Fair Value Measurements Using December 31, 2021 Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ 76 $ 76 Real estate: Construction and development — — 402 402 Commercial real estate — — 3,766 3,766 Overdrafts Total $ — $ — $ 4,244 $ 4,244 Fair Value Measurements Using December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ 85 $ 85 Real estate: Construction and development — — 401 401 Commercial real estate — — 7,941 7,941 Total $ — $ — $ 8,427 $ 8,427 |
Schedule of Carrying Amounts And Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not previously discussed in this note, as of December 31, 2021 and 2020, are as follows: Fair value measurements as of Carrying Level 1 Level 2 Level 3 Total Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 499,605 $ 499,605 $ — $ — $ 499,605 Marketable securities held to maturity 184,263 — 192,472 — 192,472 Loans, net 1,876,076 — — 1,883,756 1,883,756 Accrued interest receivable 8,901 — 8,901 — 8,901 Nonmarketable equity securities 15,344 — 15,344 — 15,344 Financial liabilities: Deposits $ 2,670,827 $ 2,341,048 $ 330,356 $ — $ 2,671,404 Securities sold under repurchase agreements 14,151 — 14,151 — 14,151 Accrued interest payable 481 — 481 — 481 Federal Home Loan Bank advances 47,500 — 47,501 — 47,501 Subordinated debentures 19,810 — 17,833 — 17,833 Fair value measurements as of Carrying Level 1 Level 2 Level 3 Total Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 351,791 $ 351,791 $ — $ — $ 351,791 Loans, net 1,831,737 — — 1,846,868 1,846,868 Accrued interest receivable 9,834 — 9,834 — 9,834 Nonmarketable equity securities 14,095 — 14,095 — 14,095 Financial liabilities: Deposits $ 2,286,390 $ 1,907,587 $ 380,570 $ — $ 2,288,157 Securities sold under repurchase agreements 15,631 — 15,631 — 15,631 Accrued interest payable 804 — 804 — 804 Federal Home Loan Bank advances 109,101 — 109,381 — 109,381 Subordinated debentures 19,810 — 17,406 — 17,406 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following are changes in accumulated other comprehensive income (loss) by component, net of tax, for the year ending December 31, 2021: Losses on Unrealized Unrealized Total Beginning balance $ ( 1,151 ) $ 10,780 $ — $ 9,629 Other comprehensive income (loss) before reclassification and tax effect 873 ( 6,884 ) ( 1,374 ) ( 7,385 ) Tax effect — 1,446 2,149 3,595 Amounts reclassified from accumulated other comprehensive loss 466 — — 466 Net current period other comprehensive income (loss) 1,339 ( 5,438 ) 775 ( 3,324 ) Ending balance $ 188 $ 5,342 $ 775 $ 6,305 The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2020: Losses on Unrealized Unrealized Total Beginning balance $ ( 526 ) $ ( 1,221 ) $ ( 46 ) $ ( 1,793 ) Other comprehensive income (loss) before tax effect ( 625 ) 15,194 46 14,615 Tax effect — ( 3,193 ) — ( 3,193 ) Net current period other comprehensive income (loss) ( 625 ) 12,001 46 11,422 Ending balance $ ( 1,151 ) $ 10,780 $ — $ 9,629 The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2019: (Losses) and Unrealized Unrealized Total Beginning balance $ ( 393 ) $ ( 8,705 ) $ ( 64 ) $ ( 9,162 ) Other comprehensive income (loss) before reclassification ( 133 ) 7,467 18 7,352 Amounts reclassified from accumulated other comprehensive loss — 17 — 17 Net current period other comprehensive income (loss) ( 133 ) 7,484 18 7,369 Ending balance $ ( 526 ) $ ( 1,221 ) $ ( 46 ) $ ( 1,793 ) |
Reclassification out of Accumulated Other Comprehensive Loss | The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2019: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Affected Line Item in the Unrealized gain on available for sale securities $ 22 Net realized gain on sale of securities transactions ( 5 ) Tax effect $ 17 Net of Tax |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The computations of basic and diluted earnings per share for the Company were as follows (in thousands except per share amounts) as of December 31: 2021 2020 2019 Numerator: Net earnings (basic) $ 39,806 $ 27,402 $ 26,279 Net earnings (diluted) $ 39,806 $ 27,402 $ 26,279 Denominator: Weighted-average shares outstanding (basic)* 12,065,182 12,219,420 12,802,787 Effect of dilutive securities: Common stock equivalent shares from stock options* 146,576 36,059 72,822 Weighted-average shares outstanding (diluted)* 12,211,758 12,255,480 12,875,609 Net earnings per share Basic $ 3.30 $ 2.25 $ 2.05 Diluted $ 3.26 $ 2.24 $ 2.05 * Periods prior to the stock dividend issued during the first quarter of 2021 have been adjusted to give effect to the 10 % stock dividend. |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed financial information of Guaranty Bancshares, Inc. follows: December 31, 2021 2020 ASSETS Cash and cash equivalents $ 2,709 $ 1,227 Investment in banking subsidiaries 326,489 305,926 Other assets 627 451 Total assets $ 329,825 $ 307,604 LIABILITIES AND EQUITY Line of credit $ 5,000 $ 12,000 Subordinated debentures 19,810 19,810 Accrued expenses and other liabilities 2,801 3,151 Shareholders’ equity 302,214 272,643 Total liabilities and shareholders’ equity $ 329,825 $ 307,604 |
Condensed Income Statement | For the Years Ended December 31, 2021 2020 2019 Interest income $ 7 $ 10 $ 15 Dividends from Guaranty Bank & Trust 18,000 — 23,000 18,007 10 23,015 Expenses Interest expense 916 939 653 Other expenses 2,520 2,000 1,819 3,436 2,939 2,472 Income (loss) before income tax and equity in undistributed income of subsidiary 14,571 ( 2,929 ) 20,543 Income tax benefit 718 574 639 Income (loss) before equity in undistributed earnings of subsidiary 15,289 ( 2,355 ) 21,182 Equity in undistributed earnings of subsidiary 24,517 29,757 5,097 Net earnings $ 39,806 $ 27,402 $ 26,279 Comprehensive income $ 36,482 $ 38,824 $ 33,648 |
Condensed Cash Flow Statement | 2021 2020 2019 Cash flows from operating activities Net earnings $ 39,806 $ 27,402 $ 26,279 Adjustments: Equity in undistributed subsidiary earnings ( 24,517 ) ( 29,757 ) ( 5,097 ) Stock based compensation 733 749 663 Change in other assets ( 176 ) 18 85 Change in other liabilities 44 ( 673 ) 503 Net cash (used in) provided by operating activities 15,890 ( 2,261 ) 22,433 Cash flows from investing activities Net cash provided by investing activities — — — Cash flows from financing activities Proceeds of borrowings 10,000 40,000 — Repayments of borrowings ( 17,000 ) ( 19,000 ) ( 2,000 ) Purchase of treasury stock — ( 16,927 ) ( 10,140 ) Exercise of stock options 2,019 638 925 Cash dividends paid ( 9,427 ) ( 8,487 ) ( 8,065 ) Net cash used in financing activities ( 14,408 ) ( 3,776 ) ( 19,280 ) Net change in cash and cash equivalents 1,482 ( 6,037 ) 3,153 Beginning cash and cash equivalents 1,227 7,264 4,111 Ending cash and cash equivalents $ 2,709 $ 1,227 $ 7,264 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Mar. 04, 2022USD ($) | Mar. 16, 2020 | Jan. 01, 2020USD ($) | Dec. 31, 2021USD ($)SegmentFamilyResidentialHouse | Dec. 31, 2020USD ($) | Mar. 09, 2022$ / shares | Mar. 27, 2020USD ($) |
Property, Plant and Equipment [Line Items] | |||||||
Number of families secured by loans of real estate | Family | 4 | ||||||
Number of housing units secured by loans from segment | ResidentialHouse | 5 | ||||||
Goodwill impairment | $ 0 | ||||||
Number of operating segments | Segment | 1 | ||||||
Number of reportable operating segments | Segment | 1 | ||||||
Impact of adoption of ASC 326, tax | $ 955,000 | ||||||
Decrease to retained earnings | $ 107,645,000 | $ 113,449,000 | |||||
Subsequent Event [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Subordinated notes | $ 35,000,000 | ||||||
Notes, maturity date | Apr. 1, 2032 | ||||||
Stated annual interest rate | 3.625% | ||||||
Cash dividend per share | $ / shares | $ 0.22 | ||||||
Core Deposits [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Core deposit amortization period | 10 years | ||||||
Paycheck Protection Program Loans | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Percentage of government guaranteed loans | 100.00% | ||||||
Accounting Standards Update 2016-13 | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | ||||||
Increase to allowance for credit losses | $ 4,548,000 | ||||||
Increase to allowance for credit losses, percent | 28.10% | ||||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment [Member] | Restatement Adjustment [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Impact of adoption of ASC 326, tax | $ 955,000 | ||||||
Decrease to retained earnings | $ 3,593,000 | ||||||
COVID-19 | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Maximum authorized amount of coronavirus aid, relief and economic security | $ 2,000,000,000,000 | ||||||
Description of federal fund interest rate | Due to the COVID-19 pandemic, market interest rates declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time. On March 16, 2020, the Federal Open Market Committee reduced the target federal funds rate range to 0.00% to 0.25%, at which it remains as of December 31, 2021. | ||||||
COVID-19 | Minimum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Federal open market committee reduced target federal funds interest rate. | 0.00% | ||||||
COVID-19 | Maximum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Federal open market committee reduced target federal funds interest rate. | 0.25% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of the Estimated Useful Life of the Different Fixed Asset Classes (Details) - Maximum | 12 Months Ended |
Dec. 31, 2021 | |
Bank Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Software | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Automobiles | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
MARKETABLE SECURITIES - Schedul
MARKETABLE SECURITIES - Schedule of Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | $ 341,628 | $ 363,097 |
Gross Unrealized Gain | 3,388 | 17,794 |
Gross Unrealized Loss | 2,810 | 96 |
Estimated Fair Value | 342,206 | 380,795 |
Held to maturity: | ||
Amortized Cost | 184,263 | 0 |
Gross Unrealized Gains | 8,364 | |
Gross Unrealized Losses | 155 | |
Estimated Fair Value | 192,472 | |
U.S. government agencies | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 10,013 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Loss | 42 | |
Estimated Fair Value | 9,971 | |
Corporate bonds | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 35,080 | 29,608 |
Gross Unrealized Gain | 940 | 1,382 |
Gross Unrealized Loss | 85 | 8 |
Estimated Fair Value | 35,935 | 30,982 |
Mortgage-backed securities | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 221,610 | 104,210 |
Gross Unrealized Gain | 1,477 | 3,041 |
Gross Unrealized Loss | 1,779 | 87 |
Estimated Fair Value | 221,308 | 107,164 |
Held to maturity: | ||
Amortized Cost | 2,953 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 37 | |
Estimated Fair Value | 2,916 | |
Collateralized mortgage obligations | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 74,925 | 64,611 |
Gross Unrealized Gain | 971 | 2,335 |
Gross Unrealized Loss | 904 | 1 |
Estimated Fair Value | 74,992 | 66,945 |
Municipal securities | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 164,668 | |
Gross Unrealized Gain | 11,036 | |
Gross Unrealized Loss | 0 | |
Estimated Fair Value | $ 175,704 | |
Held to maturity: | ||
Amortized Cost | 181,310 | |
Gross Unrealized Gains | 8,364 | |
Gross Unrealized Losses | 118 | |
Estimated Fair Value | $ 189,556 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)SecurityPosition | Dec. 31, 2020USD ($)Security | Dec. 31, 2019USD ($)Security | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Allowance for credit losses for available for sale debt securities | $ 0 | $ 0 | |
Number of investment in an unrealized loss position | Position | 50 | ||
Number of investment in an sale debt securities | Position | 22 | ||
Percentage of unrealized loss exceeds book value | 20.00% | ||
Number of securities other than agencies amount | Security | 0 | ||
Fair value of securities pledged as collateral | $ 310,958,000 | $ 314,962,000 | |
Number of securities sold | Security | 0 | 0 | |
Number of held to maturity securities sold | Security | 0 | 0 | 0 |
Accumulated other comprehensive income | $ 8,860,000 | ||
Proceeds From Sales | $ 3,957,000 | ||
Gross gains | 0 | ||
Gross losses | $ (22,000) |
MARKETABLE SECURITIES - Securit
MARKETABLE SECURITIES - Securities in Continuous Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Gross Unrealized Losses | ||
Less Than 12 Months | $ (2,414) | $ (95) |
12 Months or Longer | (396) | (1) |
Total | (2,810) | (96) |
Estimated Fair Value | ||
Less Than 12 Months | 205,928 | 28,268 |
12 Months or Longer | 11,317 | 106 |
Total | 217,245 | 28,374 |
Gross Unrealized Losses | ||
Less Than 12 Months | (74) | |
12 Months or Longer | 81 | |
Total | 155 | |
Estimated Fair Value | ||
Less Than 12 Months | 10,688 | |
12 Months or Longer | 2,996 | |
Total | 13,684 | |
U.S. government agencies | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (42) | |
12 Months or Longer | 0 | |
Total | (42) | |
Estimated Fair Value | ||
Less Than 12 Months | 9,971 | |
12 Months or Longer | 0 | |
Total | 9,971 | |
Corporate bonds | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (85) | (8) |
12 Months or Longer | 0 | 0 |
Total | (85) | (8) |
Estimated Fair Value | ||
Less Than 12 Months | 11,418 | 2,493 |
12 Months or Longer | 0 | 0 |
Total | 11,418 | 2,493 |
Mortgage-backed securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (1,383) | (87) |
12 Months or Longer | (396) | 0 |
Total | (1,779) | (87) |
Estimated Fair Value | ||
Less Than 12 Months | 144,367 | 25,775 |
12 Months or Longer | 11,317 | 0 |
Total | 155,684 | 25,775 |
Gross Unrealized Losses | ||
Less Than 12 Months | (37) | |
12 Months or Longer | 0 | |
Total | 37 | |
Estimated Fair Value | ||
Less Than 12 Months | 2,916 | |
12 Months or Longer | 0 | |
Total | 2,916 | |
Collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (904) | 0 |
12 Months or Longer | 0 | (1) |
Total | (904) | (1) |
Estimated Fair Value | ||
Less Than 12 Months | 40,172 | 0 |
12 Months or Longer | 0 | 106 |
Total | 40,172 | $ 106 |
Municipal securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (37) | |
12 Months or Longer | 81 | |
Total | 118 | |
Estimated Fair Value | ||
Less Than 12 Months | 7,772 | |
12 Months or Longer | 2,996 | |
Total | $ 10,768 |
MARKETABLE SECURITIES - Contrac
MARKETABLE SECURITIES - Contractual Maturities of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due within one year | $ 0 | |
Due after one year through five years | 14,633 | |
Due after five years through ten years | 30,460 | |
Due after ten years | 0 | |
Available-for-sale debt securities, amortized cost basis | 341,628 | $ 363,097 |
Estimated Fair Value | ||
Due within one year | 0 | |
Due after one year through five years | 15,223 | |
Due after five years through ten years | 30,683 | |
Due after ten years | 0 | |
Available-for-sale debt securities, estimated fair value | 342,206 | 380,795 |
Held to Maturity Amortized Cost | ||
Due within one year | 13,471 | |
Due after one year through five years | 57,858 | |
Due after five years through ten years | 44,342 | |
Due after ten years | 65,639 | |
Held to Maturity debt securities, amortized cost | 184,263 | 0 |
Held to Maturity Estimated Fair Value | ||
Due within one year | 13,578 | |
Due after one year through five years | 60,065 | |
Due after five years through ten years | 46,491 | |
Due after ten years | 69,422 | |
Held to maturity debt securities, estimated fair value | 192,472 | |
Mortgage-backed securities | ||
Amortized Cost | ||
Available-for-sale debt securities, amortized cost basis | 221,610 | |
Available-for-sale debt securities, amortized cost basis | 221,610 | 104,210 |
Estimated Fair Value | ||
Available-for-sale debt securities, estimated fair value | 221,308 | |
Available-for-sale debt securities, estimated fair value | 221,308 | 107,164 |
Held to Maturity Amortized Cost | ||
Held to Maturity debt securities, amortized cost | 2,953 | |
Held to Maturity debt securities, amortized cost | 2,953 | |
Held to Maturity Estimated Fair Value | ||
Held to maturity debt securities, estimated fair value | 2,916 | |
Held to maturity debt securities, estimated fair value | 2,916 | |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Available-for-sale debt securities, amortized cost basis | 74,925 | |
Available-for-sale debt securities, amortized cost basis | 74,925 | 64,611 |
Estimated Fair Value | ||
Available-for-sale debt securities, estimated fair value | 74,992 | |
Available-for-sale debt securities, estimated fair value | 74,992 | $ 66,945 |
Held to Maturity Amortized Cost | ||
Held to Maturity debt securities, amortized cost | 0 | |
Held to Maturity Estimated Fair Value | ||
Held to maturity debt securities, estimated fair value | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Loan Portfolio by Type of Loan (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans held for investment: | ||||
Total loans | $ 1,908,040 | $ 1,866,819 | ||
Deferred loan fees, net | (1,531) | (1,463) | ||
Allowance for credit losses | (30,433) | (33,619) | $ (16,202) | $ (14,651) |
Total net loans | 1,876,076 | 1,831,737 | ||
Commercial and industrial | ||||
Loans held for investment: | ||||
Total loans | 280,569 | 358,958 | ||
Allowance for credit losses | (3,600) | (4,033) | (2,056) | (1,751) |
Construction and development | ||||
Loans held for investment: | ||||
Financing Receivable, before Allowance for Credit Loss | 1,017 | |||
Total loans | 307,797 | 270,407 | ||
Allowance for credit losses | (4,221) | (4,735) | (2,378) | (1,920) |
Commercial real estate | ||||
Loans held for investment: | ||||
Financing Receivable, before Allowance for Credit Loss | 710 | |||
Total loans | 622,842 | 594,216 | ||
Allowance for credit losses | (13,765) | (15,780) | (6,853) | (6,025) |
Farmland | ||||
Loans held for investment: | ||||
Financing Receivable, before Allowance for Credit Loss | 396 | |||
Total loans | 145,501 | 78,508 | ||
Allowance for credit losses | (1,698) | (1,220) | (570) | (643) |
1-4 family residential | ||||
Loans held for investment: | ||||
Financing Receivable, before Allowance for Credit Loss | 2,183 | |||
Total loans | 410,673 | 389,096 | ||
Allowance for credit losses | (5,818) | (6,313) | (3,125) | (2,868) |
Multi-family residential | ||||
Loans held for investment: | ||||
Financing Receivable, before Allowance for Credit Loss | 0 | |||
Total loans | 30,971 | 21,701 | ||
Allowance for credit losses | (396) | (363) | (409) | (631) |
Warehouse lending | ||||
Loans held for investment: | ||||
Total loans | 43,720 | 86,813 | ||
Consumer | ||||
Loans held for investment: | ||||
Financing Receivable, before Allowance for Credit Loss | 370 | |||
Total loans | 50,965 | 51,044 | ||
Allowance for credit losses | (762) | (929) | (602) | (565) |
Agricultural | ||||
Loans held for investment: | ||||
Financing Receivable, before Allowance for Credit Loss | 49 | |||
Total loans | 14,639 | 15,734 | ||
Allowance for credit losses | (169) | (239) | (197) | (238) |
Overdrafts | ||||
Loans held for investment: | ||||
Financing Receivable, before Allowance for Credit Loss | 0 | |||
Total loans | 363 | 342 | ||
Allowance for credit losses | $ (4) | $ (7) | $ (12) | $ (10) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Loan Portfolio by Type of Loan (Details) (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accrued interest receivable on loans | $ 5.8 | $ 7 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)Contract | Dec. 31, 2020USD ($)Contract | Dec. 31, 2019USD ($)Contract | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Loans to related parties | $ 44,052,000 | $ 52,559,000 | ||||
Allowance for credit losses provision | (1,700,000) | 13,200,000 | $ 1,250,000 | |||
Loans classified in doubtful or loss risk rating | $ 0 | $ 0 | ||||
Number of loans modified as TDRs | Contract | 1 | 4 | 4 | |||
Increase in allowance for loan losses due to TDRs | $ 0 | $ 0 | ||||
Troubled debt restructuring charge-offs | 0 | 0 | ||||
Interest income if accrual method | 141,000 | 821,000 | ||||
Unfunded commitments of related party loans | $ 40,244,000 | |||||
COVID-19 | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for credit losses provision | $ 13,200,000 | |||||
Provision for Other Credit Losses | $ 700,000 | $ 1,000,000 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of loans to Principal Officers, Directors and Affiliates (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning Balance | $ 52,559 |
New loans | 91,192 |
Effect of changes in composition of related parties | (43) |
Repayments | (99,656) |
Ending Balance | $ 44,052 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Allowance for Credit Losses Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | $ 33,619 | $ 16,202 | $ 14,651 |
Impact of adopting ASC 326 | 4,548 | ||
Provision for credit losses | (1,700) | 13,200 | 1,250 |
Loans charged-off | (1,641) | (543) | (453) |
Recoveries | 155 | 212 | 754 |
Ending balance | 30,433 | 33,619 | 16,202 |
Commercial and industrial | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 4,033 | 2,056 | 1,751 |
Impact of adopting ASC 326 | 546 | ||
Provision for credit losses | (43) | 1,398 | (117) |
Loans charged-off | (411) | (68) | (86) |
Recoveries | 21 | 101 | 508 |
Ending balance | 3,600 | 4,033 | 2,056 |
Construction and development | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 4,735 | 2,378 | 1,920 |
Impact of adopting ASC 326 | 323 | ||
Provision for credit losses | (515) | 2,034 | 458 |
Recoveries | 1 | ||
Ending balance | 4,221 | 4,735 | 2,378 |
Commercial real estate | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 15,780 | 6,853 | 6,025 |
Impact of adopting ASC 326 | 2,228 | ||
Provision for credit losses | (1,229) | 6,698 | 827 |
Loans charged-off | (816) | ||
Recoveries | 30 | 1 | 1 |
Ending balance | 13,765 | 15,780 | 6,853 |
Farmland | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 1,220 | 570 | 643 |
Impact of adopting ASC 326 | 26 | ||
Provision for credit losses | 478 | 624 | (73) |
Ending balance | 1,698 | 1,220 | 570 |
1-4 family residential | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 6,313 | 3,125 | 2,868 |
Impact of adopting ASC 326 | 1,339 | ||
Provision for credit losses | (495) | 1,915 | 268 |
Loans charged-off | (68) | (14) | |
Recoveries | 2 | 3 | |
Ending balance | 5,818 | 6,313 | 3,125 |
Multi-family residential | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 363 | 409 | 631 |
Impact of adopting ASC 326 | (50) | ||
Provision for credit losses | 33 | 4 | (222) |
Ending balance | 396 | 363 | 409 |
Consumer | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 929 | 602 | 565 |
Impact of adopting ASC 326 | 72 | ||
Provision for credit losses | (51) | 373 | (2) |
Loans charged-off | (151) | (155) | (72) |
Recoveries | 35 | 37 | 111 |
Ending balance | 762 | 929 | 602 |
Agricultural | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 239 | 197 | 238 |
Impact of adopting ASC 326 | 73 | ||
Provision for credit losses | (78) | (33) | (41) |
Loans charged-off | (18) | (89) | |
Recoveries | 8 | 20 | 89 |
Ending balance | 169 | 239 | 197 |
Overdrafts | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 7 | 12 | 10 |
Impact of adopting ASC 326 | (9) | ||
Provision for credit losses | 200 | 187 | 152 |
Loans charged-off | (263) | (234) | (192) |
Recoveries | 60 | 51 | 42 |
Ending balance | $ 4 | $ 7 | $ 12 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Credit Exposure in Company Loan Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | $ 763,835 | $ 628,756 |
Credit Exposure 2020 | 296,556 | 286,256 |
Credit Exposure 2019 | 181,846 | 212,899 |
Credit Exposure 2018 | 133,356 | 163,831 |
Credit Exposure 2017 | 107,292 | 174,558 |
Credit Exposure Prior | 294,966 | 274,903 |
Revolving Loans Amortized Cost | 130,189 | 125,616 |
Total | 1,908,040 | 1,866,819 |
Credit Exposure 2021.Charge - offs | (285) | (243) |
Credit Exposure 2020.Charge - offs | (36) | (63) |
Credit Exposure 2019.Charge - offs | (242) | (92) |
Credit Exposure 2018.Charge - offs | (155) | |
Credit Exposure 2017.Charge - offs | (589) | (12) |
Credit Exposure Prior.Charge - offs | (273) | (65) |
Credit Exposure Revolving Loans Amortized Cost.Charge - offs | (61) | (25) |
Total | (1,641) | (543) |
Credit Exposure 2021, Recoveries | 61 | 49 |
Credit Exposure 2020, Recoveries | 3 | 2 |
Credit Exposure 2019, Recoveries | 19 | 55 |
Credit Exposure 2018, Recoveries | 8 | 8 |
Credit Exposure 2017, Recoveries | 13 | 24 |
Credit Exposure Prior, Recoveries | 30 | 30 |
Credit Exposure Revolving Loans Amortized Cost, Recoveries | 21 | 44 |
Total | 155 | 212 |
Credit Exposure 2021,Current period net | (224) | (194) |
Credit Exposure 2020,Current period net | (33) | (61) |
Credit Exposure 2019,Current period net | (223) | (37) |
Credit Exposure 2018,Current period net | (147) | (35) |
Credit Exposure 2017,Current period net | (576) | 12 |
Credit Exposure Prior,Current period net | (243) | (35) |
Credit Exposure Revolving Loans Amortized Cost,Current period net | 40 | 19 |
Total | (1,486) | (331) |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 763,519 | 628,236 |
Credit Exposure 2020 | 288,107 | 281,239 |
Credit Exposure 2019 | 181,039 | 205,907 |
Credit Exposure 2018 | 122,765 | 148,724 |
Credit Exposure 2017 | 88,616 | 157,326 |
Credit Exposure Prior | 279,890 | 264,245 |
Revolving Loans Amortized Cost | 130,109 | 125,616 |
Total | 1,854,045 | 1,811,293 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 76 | 496 |
Credit Exposure 2020 | 853 | 2,918 |
Credit Exposure 2019 | 5 | 3,773 |
Credit Exposure 2018 | 0 | 5,922 |
Credit Exposure 2017 | 5,521 | 7,048 |
Credit Exposure Prior | 832 | 652 |
Total | 7,287 | 20,809 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 7,273 | 923 |
Credit Exposure 2019 | 668 | 2,565 |
Credit Exposure 2018 | 10,250 | 4,963 |
Credit Exposure 2017 | 13,060 | 5,192 |
Credit Exposure Prior | 12,626 | 8,369 |
Total | 43,877 | 22,012 |
Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 240 | 24 |
Credit Exposure 2020 | 323 | 1,176 |
Credit Exposure 2019 | 134 | 654 |
Credit Exposure 2018 | 341 | 4,222 |
Credit Exposure 2017 | 95 | 4,992 |
Credit Exposure Prior | 1,618 | 1,637 |
Revolving Loans Amortized Cost | 80 | |
Total | 2,831 | 12,705 |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 176,986 | 278,811 |
Credit Exposure 2020 | 31,798 | 30,989 |
Credit Exposure 2019 | 16,262 | 13,635 |
Credit Exposure 2018 | 6,663 | 8,456 |
Credit Exposure 2017 | 3,547 | 7,512 |
Credit Exposure Prior | 14,669 | 16,294 |
Revolving Loans Amortized Cost | 74,364 | 90,074 |
Total | 324,289 | 445,771 |
Credit Exposure 2019.Charge - offs | (168) | (43) |
Credit Exposure 2018.Charge - offs | (67) | |
Credit Exposure 2017.Charge - offs | (115) | |
Credit Exposure Revolving Loans Amortized Cost.Charge - offs | (61) | (25) |
Total | (411) | (68) |
Credit Exposure 2019, Recoveries | 43 | |
Credit Exposure Prior, Recoveries | 14 | |
Credit Exposure Revolving Loans Amortized Cost, Recoveries | 21 | 44 |
Total | 21 | 101 |
Credit Exposure 2019,Current period net | (168) | |
Credit Exposure 2018,Current period net | (67) | |
Credit Exposure 2017,Current period net | (115) | |
Credit Exposure Prior,Current period net | 14 | |
Credit Exposure Revolving Loans Amortized Cost,Current period net | 40 | 19 |
Total | (390) | 33 |
Commercial and industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 176,972 | 278,687 |
Credit Exposure 2020 | 31,337 | 30,563 |
Credit Exposure 2019 | 16,207 | 12,860 |
Credit Exposure 2018 | 6,449 | 4,366 |
Credit Exposure 2017 | 3,493 | 6,131 |
Credit Exposure Prior | 14,657 | 16,294 |
Revolving Loans Amortized Cost | 74,364 | 90,074 |
Total | 323,479 | 438,975 |
Commercial and industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 124 | |
Credit Exposure 2020 | 88 | 119 |
Credit Exposure 2019 | 222 | |
Credit Exposure 2018 | 4,040 | |
Credit Exposure 2017 | 14 | 1,324 |
Total | 102 | 5,829 |
Commercial and industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 272 | 307 |
Credit Exposure 2019 | 55 | 540 |
Credit Exposure 2018 | 192 | 50 |
Credit Exposure 2017 | 40 | 43 |
Credit Exposure Prior | 1 | |
Total | 560 | 940 |
Commercial and industrial | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 14 | |
Credit Exposure 2020 | 101 | |
Credit Exposure 2019 | 13 | |
Credit Exposure 2018 | 22 | |
Credit Exposure 2017 | 14 | |
Credit Exposure Prior | 11 | |
Total | 148 | 27 |
Construction and development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 180,056 | 118,946 |
Credit Exposure 2020 | 68,765 | 77,535 |
Credit Exposure 2019 | 21,108 | 26,217 |
Credit Exposure 2018 | 6,509 | 25,514 |
Credit Exposure 2017 | 9,179 | 8,422 |
Credit Exposure Prior | 13,565 | 10,507 |
Revolving Loans Amortized Cost | 8,615 | 3,266 |
Total | 307,797 | 270,407 |
Credit Exposure Prior, Recoveries | 1 | |
Total | 1 | |
Credit Exposure Prior,Current period net | 1 | |
Total | 1 | |
Construction and development | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 180,056 | 118,590 |
Credit Exposure 2020 | 68,765 | 76,926 |
Credit Exposure 2019 | 20,499 | 26,212 |
Credit Exposure 2018 | 6,507 | 24,524 |
Credit Exposure 2017 | 8,235 | 7,742 |
Credit Exposure Prior | 13,565 | 10,507 |
Revolving Loans Amortized Cost | 8,615 | 3,266 |
Total | 306,242 | 267,767 |
Construction and development | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 356 | |
Credit Exposure 2020 | 0 | |
Credit Exposure 2018 | 990 | |
Credit Exposure 2017 | 944 | |
Total | 944 | 1,346 |
Construction and development | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 609 | |
Credit Exposure 2019 | 609 | 5 |
Credit Exposure 2018 | 2 | |
Credit Exposure 2017 | 680 | |
Total | 611 | 1,294 |
Construction and development | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2019 | 0 | |
Total | 0 | |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 134,617 | 91,819 |
Credit Exposure 2020 | 101,558 | 84,609 |
Credit Exposure 2019 | 80,857 | 95,245 |
Credit Exposure 2018 | 69,490 | 82,231 |
Credit Exposure 2017 | 61,020 | 101,884 |
Credit Exposure Prior | 159,155 | 132,538 |
Revolving Loans Amortized Cost | 16,145 | 5,890 |
Total | 622,842 | 594,216 |
Credit Exposure 2019.Charge - offs | 17 | |
Credit Exposure 2018.Charge - offs | 56 | |
Credit Exposure 2017.Charge - offs | 472 | |
Credit Exposure Prior.Charge - offs | 271 | |
Total | (816) | |
Credit Exposure 2019, Recoveries | 19 | |
Credit Exposure 2017, Recoveries | 11 | |
Credit Exposure Prior, Recoveries | 1 | |
Total | 30 | 1 |
Credit Exposure 2019,Current period net | 2 | |
Credit Exposure 2018,Current period net | (56) | |
Credit Exposure 2017,Current period net | (461) | |
Credit Exposure Prior,Current period net | (271) | 1 |
Total | (786) | 1 |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 134,617 | 91,819 |
Credit Exposure 2020 | 93,806 | 80,753 |
Credit Exposure 2019 | 80,733 | 89,542 |
Credit Exposure 2018 | 59,380 | 72,311 |
Credit Exposure 2017 | 43,457 | 86,946 |
Credit Exposure Prior | 145,477 | 123,463 |
Revolving Loans Amortized Cost | 16,065 | 5,890 |
Total | 573,535 | 550,724 |
Commercial real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 0 | |
Credit Exposure 2020 | 765 | 2,716 |
Credit Exposure 2019 | 3,542 | |
Credit Exposure 2018 | 0 | 849 |
Credit Exposure 2017 | 4,550 | 5,724 |
Credit Exposure Prior | 788 | 449 |
Total | 6,103 | 13,280 |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 6,987 | |
Credit Exposure 2019 | 2,010 | |
Credit Exposure 2018 | 10,041 | 4,913 |
Credit Exposure 2017 | 12,981 | 4,445 |
Credit Exposure Prior | 12,553 | 8,240 |
Total | 42,562 | 19,608 |
Commercial real estate | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 0 | 1,140 |
Credit Exposure 2019 | 124 | 151 |
Credit Exposure 2018 | 69 | 4,158 |
Credit Exposure 2017 | 32 | 4,769 |
Credit Exposure Prior | 337 | 386 |
Revolving Loans Amortized Cost | 80 | |
Total | 642 | 10,604 |
Farmland | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 94,491 | 17,444 |
Credit Exposure 2020 | 12,063 | 12,668 |
Credit Exposure 2019 | 8,664 | 10,327 |
Credit Exposure 2018 | 7,456 | 6,620 |
Credit Exposure 2017 | 5,191 | 9,904 |
Credit Exposure Prior | 11,346 | 15,681 |
Revolving Loans Amortized Cost | 6,290 | 5,864 |
Total | 145,501 | 78,508 |
Farmland | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 94,491 | 17,444 |
Credit Exposure 2020 | 11,868 | 12,668 |
Credit Exposure 2019 | 8,664 | 10,327 |
Credit Exposure 2018 | 7,456 | 6,620 |
Credit Exposure 2017 | 5,191 | 9,904 |
Credit Exposure Prior | 11,145 | 15,402 |
Revolving Loans Amortized Cost | 6,290 | 5,864 |
Total | 145,105 | 78,229 |
Farmland | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure Prior | 26 | 35 |
Total | 26 | 35 |
Farmland | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure Prior | 72 | 129 |
Total | 72 | 129 |
Farmland | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 195 | |
Credit Exposure Prior | 103 | 115 |
Revolving Loans Amortized Cost | 0 | |
Total | 298 | 115 |
1-4 family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 132,618 | 87,578 |
Credit Exposure 2020 | 64,590 | 62,937 |
Credit Exposure 2019 | 43,016 | 52,413 |
Credit Exposure 2018 | 36,681 | 37,268 |
Credit Exposure 2017 | 27,045 | 44,021 |
Credit Exposure Prior | 93,009 | 94,788 |
Revolving Loans Amortized Cost | 13,714 | 10,091 |
Total | 410,673 | 389,096 |
Credit Exposure 2017.Charge - offs | (9) | |
Credit Exposure Prior.Charge - offs | (59) | |
Total | (68) | |
Credit Exposure Prior, Recoveries | 2 | |
Total | 2 | |
Credit Exposure 2017,Current period net | (9) | |
Credit Exposure Prior,Current period net | (57) | |
Total | (66) | |
1-4 family residential | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 132,448 | 87,578 |
Credit Exposure 2020 | 64,590 | 62,937 |
Credit Exposure 2019 | 43,016 | 52,087 |
Credit Exposure 2018 | 36,501 | 37,224 |
Credit Exposure 2017 | 26,987 | 43,858 |
Credit Exposure Prior | 91,864 | 93,486 |
Revolving Loans Amortized Cost | 13,714 | 10,091 |
Total | 409,120 | 387,261 |
1-4 family residential | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure Prior | 18 | 168 |
Total | 18 | 168 |
1-4 family residential | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 170 | |
Credit Exposure 2019 | 0 | 326 |
Credit Exposure 2018 | 180 | 44 |
Credit Exposure 2017 | 58 | 163 |
Credit Exposure Prior | 1,127 | 1,134 |
Total | 1,535 | 1,667 |
Multi-family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 16,663 | 5,889 |
Credit Exposure 2020 | 4,286 | 4,498 |
Credit Exposure 2019 | 6,436 | 3,617 |
Credit Exposure 2018 | 908 | 1,371 |
Credit Exposure 2017 | 474 | 1,737 |
Credit Exposure Prior | 2,113 | 4,391 |
Revolving Loans Amortized Cost | 91 | 198 |
Total | 30,971 | 21,701 |
Multi-family residential | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 16,663 | 5,889 |
Credit Exposure 2020 | 4,286 | 4,498 |
Credit Exposure 2019 | 6,436 | 3,617 |
Credit Exposure 2018 | 908 | 1,371 |
Credit Exposure 2017 | 474 | 1,737 |
Credit Exposure Prior | 2,113 | 4,391 |
Revolving Loans Amortized Cost | 91 | 198 |
Total | 30,971 | 21,701 |
Multi-family residential | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2017 | 0 | |
Total | 0 | |
Consumer and Overdrafts | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 24,847 | 24,780 |
Credit Exposure 2020 | 11,616 | 11,295 |
Credit Exposure 2019 | 4,572 | 9,509 |
Credit Exposure 2018 | 4,709 | 1,728 |
Credit Exposure 2017 | 563 | 736 |
Credit Exposure Prior | 543 | 513 |
Revolving Loans Amortized Cost | 4,478 | 2,825 |
Total | 51,328 | 51,386 |
Credit Exposure 2021.Charge - offs | (285) | (243) |
Credit Exposure 2020.Charge - offs | (36) | (63) |
Credit Exposure 2019.Charge - offs | (57) | (31) |
Credit Exposure 2018.Charge - offs | (32) | (43) |
Credit Exposure 2017.Charge - offs | (2) | (3) |
Credit Exposure Prior.Charge - offs | 2 | (6) |
Total | (414) | (389) |
Credit Exposure 2021, Recoveries | 61 | 49 |
Credit Exposure 2020, Recoveries | 3 | 2 |
Credit Exposure 2019, Recoveries | 12 | |
Credit Exposure 2018, Recoveries | 8 | 8 |
Credit Exposure 2017, Recoveries | 2 | 4 |
Credit Exposure Prior, Recoveries | 21 | 13 |
Total | 95 | 88 |
Credit Exposure 2021,Current period net | (224) | (194) |
Credit Exposure 2020,Current period net | (33) | (61) |
Credit Exposure 2019,Current period net | (57) | (19) |
Credit Exposure 2018,Current period net | (24) | (35) |
Credit Exposure 2017,Current period net | 1 | |
Credit Exposure Prior,Current period net | 19 | 7 |
Total | (319) | (301) |
Consumer and Overdrafts | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 24,715 | 24,740 |
Credit Exposure 2020 | 11,589 | 11,176 |
Credit Exposure 2019 | 4,557 | 9,369 |
Credit Exposure 2018 | 4,647 | 1,701 |
Credit Exposure 2017 | 558 | 735 |
Credit Exposure Prior | 543 | 513 |
Revolving Loans Amortized Cost | 4,478 | 2,825 |
Total | 51,087 | 51,059 |
Consumer and Overdrafts | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 76 | 16 |
Credit Exposure 2020 | 0 | 83 |
Credit Exposure 2019 | 5 | 9 |
Credit Exposure 2018 | 7 | |
Total | 81 | 115 |
Consumer and Overdrafts | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 56 | 24 |
Credit Exposure 2020 | 27 | 36 |
Credit Exposure 2019 | 10 | 131 |
Credit Exposure 2018 | 62 | 20 |
Credit Exposure 2017 | 5 | 1 |
Credit Exposure Prior | 0 | |
Total | 160 | 212 |
Agricultural | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 3,557 | 3,489 |
Credit Exposure 2020 | 1,880 | 1,725 |
Credit Exposure 2019 | 931 | 1,936 |
Credit Exposure 2018 | 940 | 643 |
Credit Exposure 2017 | 273 | 342 |
Credit Exposure Prior | 566 | 191 |
Revolving Loans Amortized Cost | 6,492 | 7,408 |
Total | 14,639 | 15,734 |
Credit Exposure 2019.Charge - offs | (18) | |
Total | (8) | (18) |
Credit Exposure 2017, Recoveries | 20 | |
Credit Exposure Prior, Recoveries | 8 | |
Total | 20 | |
Credit Exposure 2019,Current period net | (18) | |
Credit Exposure 2017,Current period net | 20 | |
Credit Exposure Prior,Current period net | 8 | |
Total | 8 | 2 |
Agricultural | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 3,557 | 3,489 |
Credit Exposure 2020 | 1,866 | 1,718 |
Credit Exposure 2019 | 927 | 1,893 |
Credit Exposure 2018 | 917 | 607 |
Credit Exposure 2017 | 221 | 273 |
Credit Exposure Prior | 526 | 189 |
Revolving Loans Amortized Cost | 6,492 | 7,408 |
Total | 14,506 | 15,577 |
Agricultural | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2018 | 36 | |
Credit Exposure 2017 | 13 | |
Total | 13 | 36 |
Agricultural | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 14 | 7 |
Credit Exposure 2019 | 4 | 10 |
Credit Exposure 2018 | 15 | |
Credit Exposure 2017 | 39 | 24 |
Credit Exposure Prior | 0 | |
Total | 72 | 41 |
Agricultural | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 0 | |
Credit Exposure 2019 | 33 | |
Credit Exposure 2018 | 8 | |
Credit Exposure 2017 | 0 | 45 |
Credit Exposure Prior | 2 | |
Total | 48 | $ 80 |
Credit Exposure Prior.Charge - offs | $ (40) |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Amortized Cost Basis of Collateral-dependent Loans (Details) - Collateral Dependent Loans - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | $ 5,044 | $ 10,727 |
Allowance for Credit Losses Allocation | 800 | 2,300 |
Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 5,044 | 10,727 |
Commercial and industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 116 | 129 |
Allowance for Credit Losses Allocation | 40 | 44 |
Commercial and industrial | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 116 | 129 |
Construction and development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 609 | 609 |
Allowance for Credit Losses Allocation | 207 | 208 |
Construction and development | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 609 | 609 |
Commercial real estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 4,319 | 9,989 |
Allowance for Credit Losses Allocation | 553 | 2,048 |
Commercial real estate | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | $ 4,319 | $ 9,989 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Payment Status of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | $ 1,908,040 | $ 1,866,819 |
Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 5,866 | 15,532 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,902,174 | 1,851,287 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 3,848 | 4,382 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 861 | 754 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,157 | 10,396 |
Commercial Industrial and Warehouse lending | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,141 | |
Total Loans | 324,289 | 445,771 |
Commercial Industrial and Warehouse lending | Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 432 | |
Commercial Industrial and Warehouse lending | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 323,148 | 445,339 |
Commercial Industrial and Warehouse lending | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 969 | 385 |
Commercial Industrial and Warehouse lending | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 38 | 25 |
Commercial Industrial and Warehouse lending | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 134 | 22 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 280,569 | 358,958 |
Construction and development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,017 | |
Total Loans | 307,797 | 270,407 |
Construction and development | Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 256 | |
Construction and development | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 306,780 | 270,151 |
Construction and development | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 885 | 256 |
Construction and development | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 132 | 0 |
Construction and development | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 710 | |
Total Loans | 622,842 | 594,216 |
Commercial real estate | Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 11,199 | |
Commercial real estate | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 622,132 | 583,017 |
Commercial real estate | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 1,094 |
Commercial real estate | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 360 | 0 |
Commercial real estate | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 350 | 10,105 |
Farmland | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 396 | |
Total Loans | 145,501 | 78,508 |
Farmland | Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 120 | |
Farmland | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 145,105 | 78,388 |
Farmland | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 114 | 117 |
Farmland | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 87 | 3 |
Farmland | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 195 | 0 |
1-4 family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 2,183 | |
Total Loans | 410,673 | 389,096 |
1-4 family residential | Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 2,780 | |
1-4 family residential | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 408,490 | 386,316 |
1-4 family residential | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,650 | 2,097 |
1-4 family residential | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 123 | 556 |
1-4 family residential | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 410 | 127 |
Multi-family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | |
Total Loans | 30,971 | 21,701 |
Multi-family residential | Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | |
Multi-family residential | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 30,971 | 21,701 |
Multi-family residential | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Multi-family residential | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Multi-family residential | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 370 | |
Total Loans | 50,965 | 51,044 |
Consumer | Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 604 | |
Consumer | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 50,595 | 50,440 |
Consumer | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 189 | 383 |
Consumer | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 113 | 124 |
Consumer | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 68 | 97 |
Agricultural | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 49 | |
Total Loans | 14,639 | 15,734 |
Agricultural | Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 141 | |
Agricultural | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 14,590 | 15,593 |
Agricultural | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 41 | 50 |
Agricultural | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 8 | 46 |
Agricultural | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 45 |
Overdrafts | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | |
Total Loans | 363 | 342 |
Overdrafts | Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | |
Overdrafts | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 363 | 342 |
Overdrafts | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Overdrafts | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Overdrafts | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 2,831 | $ 12,705 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 148 | 27 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 642 | 10,604 |
Farmland | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 298 | 115 |
1-4 family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,535 | 1,667 |
Consumer and Overdrafts | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 160 | 212 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 48 | $ 80 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Contract | Dec. 31, 2020USD ($)Contract | Dec. 31, 2019USD ($)Contract | |
Troubled Debt Restructurings: | |||
Number of Contracts | Contract | 1 | 4 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 17 | $ 2,435 | $ 1,017 |
Post-Modification Outstanding Recorded Investment | $ 14 | $ 1,836 | $ 670 |
Commercial and industrial | |||
Troubled Debt Restructurings: | |||
Number of Contracts | Contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 129 | ||
Post-Modification Outstanding Recorded Investment | $ 85 | ||
Construction and development | |||
Troubled Debt Restructurings: | |||
Number of Contracts | Contract | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 1,289 | ||
Post-Modification Outstanding Recorded Investment | $ 1,081 | ||
Commercial real estate | |||
Troubled Debt Restructurings: | |||
Number of Contracts | Contract | 1 | 1 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 17 | $ 1,017 | $ 1,017 |
Post-Modification Outstanding Recorded Investment | $ 14 | $ 670 | $ 670 |
CORE DEPOSIT INTANGIBLES - Sche
CORE DEPOSIT INTANGIBLES - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning of year | $ 2,999 | $ 3,853 | |
Amortization | (686) | (854) | $ (853) |
End of Year | $ 2,313 | $ 2,999 | $ 3,853 |
CORE DEPOSIT INTANGIBLES - Sc_2
CORE DEPOSIT INTANGIBLES - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2022 | $ 453 | ||
2023 | 441 | ||
2024 | 424 | ||
2025 | 316 | ||
2026 | 272 | ||
Thereafter | 407 | ||
Finite-Lived Intangible Assets, Net, Total | $ 2,313 | $ 2,999 | $ 3,853 |
CORE DEPOSIT INTANGIBLES (Addit
CORE DEPOSIT INTANGIBLES (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deposit Assets [Abstract] | |||
Accumulated Amortization | $ 6,218 | $ 5,532 | |
Amortization of Intangible Assets | $ 686 | $ 854 | $ 853 |
PREMISES AND EQUIPMENT - Schedu
PREMISES AND EQUIPMENT - Schedule Of Premises And Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 91,028 | $ 89,554 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 37,558 | 34,342 |
Property, Plant and Equipment, Net | 53,470 | 55,212 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 10,760 | 10,944 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 59,613 | 58,569 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 20,221 | 19,641 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 434 | $ 400 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Beginning of year | $ 32,160 | $ 32,160 |
Effect of acquisitions | 0 | 0 |
End of year | $ 32,160 | $ 32,160 |
INTEREST -BEARING DEPOSITS - Sc
INTEREST -BEARING DEPOSITS - Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Interest Bearing Deposits Abstract | ||
NOW accounts | $ 293,948 | $ 259,357 |
Savings and money market accounts | 1,032,698 | 868,643 |
Time deposits $250,000 or less | 218,389 | 245,796 |
Time deposits greater than $250,000 | 111,274 | 132,854 |
Interest-bearing | $ 1,656,309 | $ 1,506,650 |
INTEREST -BEARING DEPOSITS - _2
INTEREST -BEARING DEPOSITS - Schedule of Time Deposit Maturities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Interest Bearing Deposits Abstract | |
2022 | $ 278,312 |
2023 | 33,967 |
2024 | 8,531 |
2025 | 2,660 |
2026 | 6,193 |
Thereafter | 0 |
Time Deposits | $ 329,663 |
INTEREST -BEARING DEPOSITS - Na
INTEREST -BEARING DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Interest-bearing | $ 1,656,309 | $ 1,506,650 |
Executive Officers, Directors and Significant Shareholders | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Interest-bearing | $ 47,318 | $ 46,192 |
BORROWED MONEY - Summary of Fix
BORROWED MONEY - Summary of Fixed-Rate Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Federal Home Loan Bank advances | $ 47,500 | $ 109,101 |
Fixed-rate Advances, With Monthly Interest Payments | ||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
2021 (percent) | 0.22% | |
2024 (percent) | 1.76% | |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2022 | $ 41,500 | |
2024 | 6,000 | |
Federal Home Loan Bank advances | $ 47,500 |
BORROWED MONEY - Narrative (Det
BORROWED MONEY - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Line of credit | $ 5,000 | $ 12,000 |
Federal Home Loan Bank advances, Outstanding Rate | 0 | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | $ 25,000 | |
Interest due | quarterly | |
Line of credit facility, maturity month and year | 2022-03 | |
Line of credit | $ 5,000 | |
Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Covenant description, risk-based capital ratio, minimum | 10.00% | |
Covenant description, tangible net worth | $ 85,000 | |
Covenant description, non-performing assets to equity, maximum | 15.00% | |
Covenant description, cash flow coverage, minimum | 1.25 | |
Covenant description, other additional debt to total assets maximum | 15.00% | |
Restrictive covenants, additional debt maximum | $ 500 | |
Floor | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Spread on variable rate | 3.50% | |
Prime Rate | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Spread on variable rate | 3.25% |
SUBORDINATED DEBENTURES - Sched
SUBORDINATED DEBENTURES - Schedule of Subordinated Debentures (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Subordinated debentures | $ 19,810 | $ 19,810 |
Trust II Debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | 3,093 | 3,093 |
Trust III Debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | 2,062 | 2,062 |
DCB Trust I Debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | 5,155 | 5,155 |
Other debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | $ 9,500 | $ 9,500 |
SUBORDINATED DEBENTURES - Narra
SUBORDINATED DEBENTURES - Narrative (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Liquidation value per share | $ 1,000 | ||
Debentures mature date | 30 years | ||
Long-term Debt | $ 9,500 | ||
Subordinated debentures | Trust II Debentures | |||
Debt Instrument [Line Items] | |||
Debenture issued | $ 3,093 | ||
Subordinated debentures | Trust II Debentures | Minimum | |||
Debt Instrument [Line Items] | |||
Notice period required for redemption of debentures | 30 days | ||
Subordinated debentures | Trust II Debentures | Maximum | |||
Debt Instrument [Line Items] | |||
Notice period required for redemption of debentures | 60 days | ||
Redemption price of debentures as a percentage of principal | 100.00% | ||
Subordinated debentures | Trust II Debentures | 3 Month LIBOR | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 3.35% | ||
Subordinated debentures | Trust III Debentures | |||
Debt Instrument [Line Items] | |||
Debenture issued | $ 2,062 | ||
Subordinated debentures | Trust III Debentures | Minimum | |||
Debt Instrument [Line Items] | |||
Notice period required for redemption of debentures | 30 days | ||
Subordinated debentures | Trust III Debentures | Maximum | |||
Debt Instrument [Line Items] | |||
Notice period required for redemption of debentures | 60 days | ||
Redemption price of debentures as a percentage of principal | 100.00% | ||
Subordinated debentures | Trust III Debentures | 3 Month LIBOR | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 1.67% | ||
Subordinated debentures | DCB Trust I Debentures | |||
Debt Instrument [Line Items] | |||
Debenture issued | $ 5,155 | ||
Subordinated debentures | DCB Trust I Debentures | Minimum | |||
Debt Instrument [Line Items] | |||
Notice period required for redemption of debentures | 30 days | ||
Subordinated debentures | DCB Trust I Debentures | Maximum | |||
Debt Instrument [Line Items] | |||
Notice period required for redemption of debentures | 60 days | ||
Redemption price of debentures as a percentage of principal | 100.00% | ||
Subordinated debentures | DCB Trust I Debentures | 3 Month LIBOR | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 1.80% | ||
Subordinated debentures | Other Debentures Issued in December 2015 | |||
Debt Instrument [Line Items] | |||
Notice period required for redemption of debentures | 30 days | ||
Redemption price of debentures as a percentage of principal | 100.00% | ||
Debenture issued, par value per instrument issued | $ 500 | ||
Debt instrument maturity start date | Nov. 1, 2020 | ||
Debt instrument maturity end date | Nov. 1, 2024 | ||
Long-term Debt | $ 9,500 | ||
Subordinated debentures | Other Debentures Issued in December 2015 | Directors and Related Parties | |||
Debt Instrument [Line Items] | |||
Debenture issued | $ 10,000 | ||
Subordinated debentures | Other Debentures Issued in December 2015 | Minimum | |||
Debt Instrument [Line Items] | |||
Stated annual interest rate | 1.00% | ||
Subordinated debentures | Other Debentures Issued in December 2015 | Maximum | |||
Debt Instrument [Line Items] | |||
Stated annual interest rate | 4.00% | ||
Subordinated debentures | Other Subordinated Debentures Issued In July 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Debentures that matured and were paid off | $ 500 |
SUBORDINATED DEBENTURES - Sch_2
SUBORDINATED DEBENTURES - Schedule of Trusts (Details) $ in Thousands | Dec. 31, 2021USD ($)shares |
Trust II | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Common securities liquidation value | $ 93 |
Trust III | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Common securities liquidation value | 62 |
DCB Trust I | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Common securities liquidation value | $ 155 |
Capital trust pass-through securities | Trust II | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Number of shares (in shares) | shares | 3,000 |
Original liquidation value | $ 3,000 |
Capital trust pass-through securities | Trust III | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Number of shares (in shares) | shares | 2,000 |
Original liquidation value | $ 2,000 |
Capital trust pass-through securities | DCB Trust I | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Number of shares (in shares) | shares | 5,000 |
Original liquidation value | $ 5,000 |
SUBORDINATED DEBENTURES - Sch_3
SUBORDINATED DEBENTURES - Schedule of Terms of Subordinated Debentures (Details) - Subordinated debentures $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Trust II Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 3,093 |
Notes, maturity date | Oct. 30, 2032 |
Interest due | Quarterly |
Trust III Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 2,062 |
Notes, maturity date | Oct. 1, 2036 |
Interest due | Quarterly |
DCB Trust I Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 5,155 |
Notes, maturity date | Jun. 15, 2037 |
Interest due | Quarterly |
SUBORDINATED DEBENTURES - Sch_4
SUBORDINATED DEBENTURES - Schedule of Principal Payments and Weighted Average Rates of Other Debentures (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Current Weighted Average Rate, 2022 | 2.45% |
Current Weighted Average Rate, 2023 | 2.85% |
Current Weighted Average Rate, 2024 | 3.74% |
Principal Due, 2022 | $ 2,000 |
Principal Due, 2023 | 3,500 |
Principal Due, 2024 | 4,000 |
Principal payments | $ 9,500 |
EQUITY AWARDS - Narrative (Deta
EQUITY AWARDS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 1,748 | ||
Unrecognized compensation expense, period for recognition | 3 years 29 days | ||
Restricted Stock | Minimum | Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares permitted for grant (in shares) | 1,100,000 | ||
Grace period for vested options, forfeitures in period | 90 days | ||
2015 Equity Incentive Plan | Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term | 10 years | ||
Share-based compensation expense | $ 733 | $ 749 | $ 663 |
2015 Equity Incentive Plan | Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
2015 Equity Incentive Plan | Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 10 years | ||
2015 Equity Incentive Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 733 | $ 749 | $ 663 |
EQUITY AWARDS - Schedule of Val
EQUITY AWARDS - Schedule of Valuation Assumptions (Details) - Option | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.98% | 0.79% | 2.11% |
Expected term (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected stock price volatility | 23.98% | 22.26% | 19.89% |
Dividend yield | 2.35% | 2.56% | 2.36% |
EQUITY AWARDS - Schedule of Sto
EQUITY AWARDS - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||||
Outstanding at beginning of year (in shares) | 508,000 | 506,200 | 508,000 | |
Effect of 10% stock dividend (in shares) | 50,770 | |||
Granted (in shares) | 58,000 | 74,000 | ||
Exercised (in shares) | (89,870) | (26,600) | ||
Forfeited (in shares) | (22,320) | (49,200) | ||
Balance (in shares) | 502,780 | 506,200 | 508,000 | |
Exercisable | ||||
Outstanding (in shares) | 295,696 | 291,520 | ||
Weighted-average exercise price (in USD per share) | $ 24.09 | $ 25.63 | ||
Weighted-average remaining contractual life in years | 4 years 4 months 24 days | 4 years 8 months 26 days | ||
Aggregate intrinsic value | $ 3,989 | $ 1,339 | ||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of year (in USD per share) | $ 26.68 | $ 26.81 | $ 26.68 | |
Granted (in USD per share) | 28.67 | 34.30 | ||
Exercised (in USD per share) | 24 | 22.47 | ||
Forfeited (in USD per share) | $ 29.71 | 26.16 | ||
Balance (in USD per share) | $ 25.77 | $ 26.81 | $ 26.68 | |
Weighted-Average Remaining Contractual Life in Years | ||||
Outstanding | 5 years 7 months 2 days | 5 years 9 months 25 days | 6 years 2 months 26 days | |
Granted | 9 years 8 months 1 day | 9 years 6 months 25 days | ||
Exercised | 3 years 3 months 21 days | 1 year 9 months 14 days | ||
Forfeited | 6 years 11 months 15 days | 7 years 6 months 29 days | ||
Aggregate Intrinsic Value | ||||
Outstanding | $ 3,159 | $ 1,805 | $ 3,159 | |
Granted | 112 | 145 | ||
Exercised | 1,273 | 158 | $ 314 | |
Forfeited | 222 | 84 | ||
Outstanding | $ 5,936 | $ 1,805 | $ 3,159 |
EQUITY AWARDS - Schedule of S_2
EQUITY AWARDS - Schedule of Stock Option Activity (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock dividend percentage | 10.00% |
EQUITY AWARDS - Schedule of Non
EQUITY AWARDS - Schedule of Nonvested Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 214,680 | 251,120 | |
Effect of 10% stock dividend (in shares) | 23,218 | ||
Granted (in shares) | 58,000 | 74,000 | |
Vested (in shares) | (76,494) | (71,040) | |
Forfeited (in shares) | (12,320) | (39,400) | |
Balance (in shares) | 207,084 | 214,680 | 251,120 |
Weighted-Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 4.46 | $ 4.97 | |
Granted (in USD per share) | 5.92 | 4.46 | $ 4.97 |
Vested (in USD per share) | 5.39 | 5.79 | |
Forfeited (in USD per share) | 6.99 | 2.19 | |
Balance (in USD per share) | $ 5.23 | $ 4.46 | $ 4.97 |
EQUITY AWARDS - Schedule of N_2
EQUITY AWARDS - Schedule of Nonvested Stock Option Activity (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock dividend percentage | 10.00% |
EQUITY AWARDS - Information Rel
EQUITY AWARDS - Information Related to Stock Options Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value of options exercised | $ 1,273 | $ 158 | $ 314 |
Cash received from options exercised | $ 2,019 | $ 638 | $ 925 |
Weighted average fair value of options granted (in USD per share) | $ 5.92 | $ 4.46 | $ 4.97 |
EQUITY AWARDS - Summary of Rest
EQUITY AWARDS - Summary of Restricted Stock Awards and Units Activity (Details) - Restricted Stock Awards And Units [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | ||
Outstanding at beginning of year (in shares) | 35,300 | 31,459 |
Effect of 10% stock dividend (in shares) | 3,530 | |
Granted (in shares) | 3,500 | 19,500 |
Vested (in shares) | (12,140) | (15,179) |
Forfeited (in shares) | (480) | |
Balance (in shares) | 30,190 | 35,300 |
Weighted-Average Grant Date Fair Value | ||
Outstanding at beginning of year | $ 29.72 | $ 30.29 |
Granted | 33.09 | 29.32 |
Vested | 27.05 | 30.33 |
Forfeited | $ 27.52 | 31.57 |
Balance | $ 29.72 |
EQUITY AWARDS - Summary of Re_2
EQUITY AWARDS - Summary of Restricted Stock Awards and Units Activity (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock dividend percentage | 10.00% |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee stock ownership plan, maximum employer contribution as a percentage of participant's qualified compensation | 5.00% | ||
Employee stock ownership plan, total contributions accrued or paid | $ 1,455 | $ 1,330 | $ 1,270 |
Employee stock ownership plan, shares held under plan (in shares) | 1,254,757 | ||
Employee stock ownership plan, unallocated shares (in shares) | 0 | ||
Cash surrender value of life insurance | $ 37,141 | 35,510 | |
Gain on proceeds from life insurance policies | 277 | 0 | |
Bonus expense | 4,867 | 3,164 | 3,265 |
Executive Incentive Retirement Plan | Postretirement Life Insurance | Nonqualified Plan | Unfunded Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of life insurance | 37,141 | 35,510 | |
Plan cost | 738 | 592 | $ 602 |
Plan obligation | $ 4,969 | $ 4,383 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating leases, option to extend | 10 years | ||
Operating lease right-of-use assets | $ 14,376 | $ 13,291 | |
Operating lease right-of-use liabilities | 14,882 | 13,539 | |
Occupancy Expenses | |||
Operating leases, rental expense | $ 2,278 | $ 1,954 | $ 1,881 |
Minimum | |||
Operating leases, remaining lease term | 1 year | ||
Maximum | |||
Operating leases, remaining lease term | 14 years |
LEASES - Schedule of Summarizes
LEASES - Schedule of Summarizes Other Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases | ||
Operating lease right-of-use assets | $ 14,376 | $ 13,291 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Operating lease liabilities | $ 14,882 | $ 13,539 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities | Liabilities |
Liabilities | $ 2,783,856 | $ 2,468,189 |
Weighted average remaining lease term | ||
Operating leases | 8 years | 9 years |
Weighted average discount rate | ||
Operating leases | 1.95% | 2.19% |
LEASES - Schedule of Minimum Fu
LEASES - Schedule of Minimum Future Lease Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 2,155 | |
2023 | 2,093 | |
2024 | 2,039 | |
2025 | 1,870 | |
2026 | 1,642 | |
Thereafter | 5,855 | |
Total lease payments | 15,654 | |
Less: interest | (772) | |
Present value of lease liabilities | $ 14,882 | $ 13,539 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current federal tax expense | $ 8,893 | $ 10,542 | $ 6,097 |
Deferred federal tax benefit | (143) | (4,647) | (319) |
Total | $ 8,750 | $ 5,895 | $ 5,778 |
INCOME TAXES - Income Tax Rate
INCOME TAXES - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax at 21% | $ 10,197 | $ 6,992 | $ 6,732 |
Tax exempt interest income | (1,043) | (1,065) | (1,027) |
Earnings of bank owned life insurance | (235) | (182) | (192) |
Nondeductible expenses | 180 | 356 | 462 |
Other | (349) | (206) | (197) |
Total | $ 8,750 | $ 5,895 | $ 5,778 |
INCOME TAXES - Income Tax Rat_2
INCOME TAXES - Income Tax Rate Reconciliation (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 21.00% | 21.00% | 21.00% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for credit losses | $ 6,391 | $ 7,060 |
Deferred compensation | 1,043 | 920 |
Bonus accrual | 499 | 422 |
Deferred loan fees, net | 253 | 259 |
Accretion of acquisition allowance | 72 | 112 |
Other real estate owned | 0 | 2 |
Other | 397 | 437 |
Total deferred tax assets | 8,655 | 9,212 |
Deferred tax liabilities: | ||
Unrealized gain on available for sale securities | 122 | 3,717 |
Premises and equipment | 2,138 | 2,721 |
Prepaid expenses | 306 | 343 |
Intangibles | 266 | 350 |
Other | (46) | (42) |
Total deferred tax liabilities | 2,878 | 7,173 |
Net deferred tax asset | $ 5,777 | $ 2,039 |
NONINTEREST INCOME AND NONINT_3
NONINTEREST INCOME AND NONINTEREST EXPENSE - Schedule Of Noninterest Income And Noninterest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income, Nonoperating [Abstract] | |||
Service charges | $ 3,772 | $ 3,064 | $ 3,715 |
Net realized loss on securities transactions | 0 | 0 | (22) |
Net realized gain on sale of loans | 5,528 | 6,834 | 2,850 |
Fiduciary and custodial income | 2,333 | 2,012 | 1,760 |
Bank-owned life insurance income | 840 | 838 | 774 |
Merchant and debit card fees | 6,717 | 5,515 | 4,264 |
Loan processing fee income | 669 | 628 | 590 |
Warehouse lending fees | 812 | 957 | 679 |
Mortgage fee income | 612 | 771 | 323 |
Other noninterest income | 3,293 | 2,418 | 2,029 |
Other Operating Income | 24,576 | 23,037 | 16,962 |
Other Expense, Nonoperating [Abstract] | |||
Employee compensation and benefits | 42,345 | 37,193 | 35,907 |
Occupancy expenses | 10,944 | 10,220 | 9,834 |
Legal and professional fees | 2,599 | 2,650 | 2,610 |
Software and technology | 4,594 | 4,104 | 3,341 |
Amortization | 1,154 | 1,349 | 1,378 |
Director and committee fees | 823 | 846 | 873 |
Advertising and promotions | 1,758 | 1,498 | 1,655 |
ATM and debit card expense | 2,445 | 1,951 | 1,347 |
Telecommunication expense | 807 | 864 | 676 |
FDIC insurance assessment fees | 851 | 821 | 173 |
Other noninterest expense | 4,958 | 5,026 | 4,731 |
Total | $ 73,278 | $ 66,522 | $ 62,525 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Swaps cancellation expenses | $ 73,278,000 | $ 66,522,000 | $ 62,525,000 |
Interest expense | 6,992,000 | 13,060,000 | 23,691,000 |
Unrealized loss to be reclassified as a reduction of interest expense | 0 | ||
Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | 5,000,000 | ||
Swaps cancellation expenses | 466,000 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||
Derivative [Line Items] | |||
Interest expense | 607,000 | 747,000 | $ 648,000 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | FHLB Advances | |||
Derivative [Line Items] | |||
Notional amount | $ 40,000,000 | $ 40,000,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Information Pertaining to Outstanding Interest Rate Swap Agreements (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Rate Swap, 3 month LIBOR plus 1.67% | ||
Derivative [Line Items] | ||
Notional Amount | $ 2,000,000 | |
Pay Rate | 5.979% | |
Effective Date | Oct. 1, 2016 | |
Maturity in Years | 5 years 3 months | |
Unrealized Losses | $ 408,000 | |
Interest Rate Swap, 3 month LIBOR plus 1.67% | LIBOR | ||
Derivative [Line Items] | ||
Receive Rate | 1.67% | |
Interest Rate Swap, 3 month LIBOR plus 3.35% | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,000,000 | |
Pay Rate | 7.505% | |
Effective Date | Oct. 30, 2012 | |
Maturity in Years | 1 year 9 months 29 days | |
Unrealized Losses | $ 221,000 | |
Interest Rate Swap, 3 month LIBOR plus 3.35% | LIBOR | ||
Derivative [Line Items] | ||
Receive Rate | 3.35% | |
Interest Rate Swap, 3 month LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | $ 15,000,000 | $ 15,000,000 |
Pay Rate | 0.668% | 0.668% |
Effective Date | Mar. 18, 2020 | Mar. 18, 2020 |
Maturity in Years | 1 year 2 months 19 days | 2 years 2 months 19 days |
Unrealized Losses | $ 8,000 | $ 159,000 |
Interest Rate Swap, 3 month LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | $ 15,000,000 | $ 15,000,000 |
Pay Rate | 0.79% | 0.79% |
Effective Date | Mar. 18, 2020 | Mar. 18, 2020 |
Maturity in Years | 3 years 2 months 19 days | 4 years 2 months 19 days |
Unrealized Losses | $ (184,000) | $ 288,000 |
Interest Rate Swap, 3 month LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | $ 10,000,000 | $ 10,000,000 |
Pay Rate | 0.53% | 0.53% |
Effective Date | Mar. 23, 2020 | Mar. 23, 2020 |
Maturity in Years | 1 year 2 months 23 days | 2 years 2 months 23 days |
Unrealized Losses | $ (12,000) | $ 75,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Other Commitments [Line Items] | ||
FHLB letters of credit | $ 35,833,000 | |
Letters of credit | ||
Other Commitments [Line Items] | ||
Potential guarantee obligation | 0 | $ 0 |
Loans Receivable | ||
Other Commitments [Line Items] | ||
Allowance for credit loss | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Commitments and Letters of Credit (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 405,269 | $ 324,276 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 8,357 | $ 8,488 |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Common equity tier 1 capital to risk-weighted assets: | ||
Amount available for dividend payments | $ 9,663,000 | |
Bank | ||
Common equity tier 1 capital to risk-weighted assets: | ||
Amount available for dividend payments | 44,273,000 | |
Subordinated debentures | Subordinated Debentures II, Subordinated Debentures III, and DCB Debentures I | ||
Common equity tier 1 capital to risk-weighted assets: | ||
Debenture issued | $ 10,310,000 | $ 10,310,000 |
Maximum | ||
Common equity tier 1 capital to risk-weighted assets: | ||
Capital conservation buffer percentage | 2.50% |
REGULATORY MATTERS - Comparison
REGULATORY MATTERS - Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 297,370 | $ 263,144 |
Actual, Ratio | 14.51 | 13.20 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 163,986 | $ 159,496 |
Minimum Required for Capital Adequacy Purposes, Ratio | 8 | 8 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 215,232 | $ 209,338 |
Minimum Required Under Basel III (Including Buffer), Ratio | 10.50 | 10.50 |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 271,696 | $ 238,115 |
Actual, Ratio | 13.25 | 11.94 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 122,990 | $ 119,622 |
Minimum Required for Capital Adequacy Purposes, Ratio | 6 | 6 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 174,235 | $ 169,464 |
Minimum Required Under Basel III (Including Buffer), Ratio | 8.50 | 8.50 |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 271,696 | $ 238,115 |
Actual, Ratio | 9.18 | 9.13 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 118,369 | $ 104,293 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4 | 4 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 118,369 | $ 104,293 |
Minimum Required Under Basel III (Including Buffer), Ratio | 4 | 4 |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 261,386 | $ 227,805 |
Actual, Ratio | 12.75 | 11.43 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 92,242 | $ 89,716 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III (Including Buffer), Amount | $ 143,488 | $ 139,559 |
Minimum Required Under Basel III (Including Buffer), Ratio | 7.00% | 7.00% |
Bank | ||
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 311,335 | $ 285,490 |
Actual, Ratio | 15.19 | 14.32 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 163,936 | $ 159,514 |
Minimum Required for Capital Adequacy Purposes, Ratio | 8 | 8 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 215,166 | $ 209,362 |
Minimum Required Under Basel III (Including Buffer), Ratio | 10.50 | 10.50 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 204,920 | $ 199,392 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10 | 10 |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 285,661 | $ 260,459 |
Actual, Ratio | 13.94 | 13.06 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 122,952 | $ 119,635 |
Minimum Required for Capital Adequacy Purposes, Ratio | 6 | 6 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 174,182 | $ 169,483 |
Minimum Required Under Basel III (Including Buffer), Ratio | 8.50 | 8.50 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 163,936 | $ 159,514 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8 | 8 |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 285,661 | $ 260,459 |
Actual, Ratio | 9.66 | 9.99 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 118,345 | $ 104,293 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4 | 4 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 118,345 | $ 104,293 |
Minimum Required Under Basel III (Including Buffer), Ratio | 4 | 4 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 147,931 | $ 130,366 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5 | 5 |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 285,661 | $ 260,459 |
Actual, Ratio | 13.94 | 13.06 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 92,214 | $ 89,726 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III (Including Buffer), Amount | $ 143,444 | $ 139,574 |
Minimum Required Under Basel III (Including Buffer), Ratio | 7.00% | 7.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 133,198 | $ 129,605 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Additional Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Mortgage backed securities and collateralized mortgage obligations | $ 14,151 | $ 15,631 |
SECURITIES SOLD UNDER AGREEME_4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Securities Sold under Agreements to Repurchase (Details) - Securities Sold Under Agreements To Repurchase - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||
Average balance during the year | $ 14,812 | $ 18,115 |
Average interest rate during the year | 0.11% | 0.18% |
Maximum month-end balance during the year | $ 36,322 | $ 21,400 |
Weighted average interest rate at year-end | 0.76% | 0.19% |
FAIR VALUE - Schedule of Financ
FAIR VALUE - Schedule of Financial Assets (Liabilities) Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 342,206 | $ 380,795 |
Loans held for sale | 5,542 | |
Cash surrender value of life insurance | 37,141 | 35,510 |
SBA servicing assets | 877 | 763 |
Derivative instrument assets | 196 | 629 |
Derivative instrument liabilities | (8) | (1,151) |
Individually evaluated collateral dependent loans | 4,244 | 8,427 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 221,308 | 107,164 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 74,992 | 66,945 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 35,935 | 30,982 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,971 | |
Assets (liabilities) at fair value on a recurring basis: | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 221,308 | 107,164 |
Assets (liabilities) at fair value on a recurring basis: | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 74,992 | 66,945 |
Assets (liabilities) at fair value on a recurring basis: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,971 | 30,982 |
Assets (liabilities) at fair value on a recurring basis: | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 4,129 | |
Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 4,244 | 8,427 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 175,704 | |
Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 35,935 | 175,704 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | |
Cash surrender value of life insurance | 0 | 0 |
SBA servicing assets | 0 | 0 |
Derivative instrument assets | 0 | 0 |
Derivative instrument liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets (liabilities) at fair value on a recurring basis: | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets (liabilities) at fair value on a recurring basis: | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets (liabilities) at fair value on a recurring basis: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets (liabilities) at fair value on a recurring basis: | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | |
Cash surrender value of life insurance | 37,141 | 35,510 |
SBA servicing assets | 0 | 0 |
Derivative instrument assets | 196 | 629 |
Derivative instrument liabilities | (8) | (1,151) |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 221,308 | 107,164 |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 74,992 | 66,945 |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,971 | 30,982 |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | |
Significant Other Observable Inputs (Level 2) | Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 35,935 | 175,704 |
Significant Other Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 5,542 | |
Cash surrender value of life insurance | 0 | 0 |
SBA servicing assets | 877 | 763 |
Derivative instrument assets | 0 | 0 |
Derivative instrument liabilities | 0 | 0 |
Individually evaluated collateral dependent loans | 4,244 | 8,427 |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 4,129 | |
Significant Other Unobservable Inputs (Level 3) | Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 4,244 | 8,427 |
Significant Other Unobservable Inputs (Level 3) | Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
FAIR VALUE - Fair Value of Fore
FAIR VALUE - Fair Value of Foreclosed Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value | Other real estate owned remeasured at initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | $ 0 | $ 42 | $ 147 |
Carrying Value | Revision of Prior Period, Adjustment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 0 | 62 | 35 |
Charge-offs | Other real estate owned remeasured at initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 0 | (9) | 11 |
Charge-offs | Revision of Prior Period, Adjustment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 0 | (1) | (10) |
Fair Value | Other real estate owned remeasured at initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 0 | 33 | 136 |
Fair Value | Revision of Prior Period, Adjustment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | $ 0 | $ 61 | $ 25 |
FAIR VALUE - Schedule of Quanti
FAIR VALUE - Schedule of Quantitative Information About Nonrecurring Level 3 Fair Value Measurements (Details) - Cost to Sell - Other real estate owned - Appraisal value of collateral $ in Thousands | Dec. 31, 2020USD ($) |
Assets at fair value on a nonrecurring basis: | Significant Other Unobservable Inputs (Level 3) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other real estate owned | $ 404 |
Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other real estate owned, input (percent) | 0.10 |
Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other real estate owned, input (percent) | 0.20 |
Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other real estate owned, input (percent) | 0.16 |
FAIR VALUE - Schedule of Indivi
FAIR VALUE - Schedule of Individually Evaluated Collateral Dependent Loans at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Individually evaluated collateral dependent loans | $ 4,244 | $ 8,427 |
Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Individually evaluated collateral dependent loans | 4,244 | 8,427 |
Construction and Development | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Individually evaluated collateral dependent loans | 402 | 401 |
Construction and Development | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Individually evaluated collateral dependent loans | 402 | 401 |
Commercial Real Estate | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Individually evaluated collateral dependent loans | 3,766 | 7,941 |
Commercial Real Estate | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Individually evaluated collateral dependent loans | 3,766 | 7,941 |
Commercial and Industrial | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Individually evaluated collateral dependent loans | 76 | 85 |
Commercial and Industrial | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Individually evaluated collateral dependent loans | $ 76 | $ 85 |
FAIR VALUE - Schedule of Carryi
FAIR VALUE - Schedule of Carrying Amounts and Estimated Fair Value of Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Reported Value Measurement | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | $ 499,605 | $ 351,791 |
Marketable securities held to maturity | 184,263 | |
Loans, net | 1,876,076 | 1,831,737 |
Accrued interest receivable | 8,901 | 9,834 |
Nonmarketable equity securities | 15,344 | 14,095 |
Financial liabilities: | ||
Deposits | 2,670,827 | 2,286,390 |
Securities sold under repurchase agreements | 14,151 | 15,631 |
Accrued interest payable | 481 | 804 |
Federal Home Loan Bank advances | 47,500 | 109,101 |
Subordinated debentures | 19,810 | 19,810 |
Fair Value | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 499,605 | 351,791 |
Marketable securities held to maturity | 192,472 | |
Loans, net | 1,883,756 | 1,846,868 |
Accrued interest receivable | 8,901 | 9,834 |
Nonmarketable equity securities | 15,344 | 14,095 |
Financial liabilities: | ||
Deposits | 2,671,404 | 2,288,157 |
Securities sold under repurchase agreements | 14,151 | 15,631 |
Accrued interest payable | 481 | 804 |
Federal Home Loan Bank advances | 47,501 | 109,381 |
Subordinated debentures | 17,833 | 17,406 |
Fair Value | Level 1 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 499,605 | 351,791 |
Marketable securities held to maturity | 0 | |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Financial liabilities: | ||
Deposits | 2,341,048 | 1,907,587 |
Securities sold under repurchase agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures | 0 | 0 |
Fair Value | Level 2 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 0 | 0 |
Marketable securities held to maturity | 192,472 | |
Loans, net | 0 | |
Accrued interest receivable | 8,901 | 9,834 |
Nonmarketable equity securities | 15,344 | 14,095 |
Financial liabilities: | ||
Deposits | 330,356 | 380,570 |
Securities sold under repurchase agreements | 14,151 | 15,631 |
Accrued interest payable | 481 | 804 |
Federal Home Loan Bank advances | 47,501 | 109,381 |
Subordinated debentures | 17,833 | 17,406 |
Fair Value | Level 3 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 0 | 0 |
Loans, net | 1,883,756 | 1,846,868 |
Accrued interest receivable | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 9,629 | $ (1,793) | $ (9,162) |
Other comprehensive income (loss) before reclassification | (7,385) | 14,615 | 7,352 |
Tax effect | 3,595 | (3,193) | |
Amounts reclassified from accumulated other comprehensive loss | 466 | 0 | 17 |
Total other comprehensive (loss) income | (3,324) | 11,422 | 7,369 |
Ending Balance | 6,305 | 9,629 | (1,793) |
(Losses) and Gains on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,151) | (526) | (393) |
Other comprehensive income (loss) before reclassification | 873 | (625) | (133) |
Tax effect | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 466 | 0 | |
Total other comprehensive (loss) income | 1,339 | (625) | (133) |
Ending Balance | 188 | (1,151) | (526) |
Unrealized (Losses) and Gains on Securities | Available-for-sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 10,780 | (1,221) | (8,705) |
Other comprehensive income (loss) before reclassification | (6,884) | 15,194 | 7,467 |
Tax effect | 1,446 | (3,193) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 17 | |
Total other comprehensive (loss) income | (5,438) | 12,001 | 7,484 |
Ending Balance | 5,342 | 10,780 | (1,221) |
Unrealized (Losses) and Gains on Securities | Held-to-maturity Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | (46) | (64) |
Other comprehensive income (loss) before reclassification | 1,374 | 46 | 18 |
Tax effect | 2,149 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Total other comprehensive (loss) income | 775 | 46 | 18 |
Ending Balance | $ 775 | $ 0 | $ (46) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Amounts reclassified out of accumulated other comprehensive income (loss) | $ 466 | $ 0 | $ 17 |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications from AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized (loss) gain on securities sales | $ 0 | $ 0 | $ (22) |
Tax effect | $ (8,750) | $ (5,895) | (5,778) |
Reclassification out of Accumulated Other Comprehensive Loss | Unrealized Gains and (Losses) on Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized (loss) gain on securities sales | 22 | ||
Tax effect | (5) | ||
Net of Tax | $ 17 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net earnings (basic) | $ 39,806 | $ 27,402 | $ 26,279 |
Net earnings (diluted) | $ 39,806 | $ 27,402 | $ 26,279 |
Denominator: | |||
Weighted-average shares outstanding (basic) (in shares) | 12,065,182 | 12,219,420 | 12,802,787 |
Effect of dilutive securities: | |||
Common stock equivalent shares from stock options (in shares) | 146,576 | 36,059 | 72,822 |
Weighted-average shares outstanding (diluted) (in shares) | 12,211,758 | 12,255,480 | 12,875,609 |
Net earnings per share | |||
Basic (in USD per share) | $ 3.30 | $ 2.25 | $ 2.05 |
Diluted (in USD per share) | $ 3.26 | $ 2.24 | $ 2.05 |
EARNINGS PER SHARE - Schedule_2
EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Percentage of stock dividend issued | 10.00% |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Balance Sheet and Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | ||||
Other assets | $ 45,806 | $ 34,848 | ||
Total assets | 3,086,070 | 2,740,832 | ||
LIABILITIES AND EQUITY | ||||
Subordinated debentures | 19,810 | 19,810 | ||
Accrued interest and other liabilities | 26,568 | 25,257 | ||
Shareholders' equity | 302,214 | 272,643 | $ 261,551 | $ 244,583 |
Total liabilities and shareholders' equity | 3,086,070 | 2,740,832 | ||
Income Statement [Abstract] | ||||
Interest income | 102,550 | 103,042 | 102,561 | |
Interest expense | 6,992 | 13,060 | 23,691 | |
Income before income taxes | 48,556 | 33,297 | 32,057 | |
Tax effect | (8,750) | (5,895) | (5,778) | |
Net earnings | 39,806 | 27,402 | 26,279 | |
Comprehensive income | 36,482 | 38,824 | 33,648 | |
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 2,709 | 1,227 | ||
Investment in banking subsidiaries | 326,489 | 305,926 | ||
Other assets | 627 | 451 | ||
Total assets | 329,825 | 307,604 | ||
LIABILITIES AND EQUITY | ||||
Line of credit | 5,000 | 12,000 | ||
Subordinated debentures | 19,810 | 19,810 | ||
Accrued interest and other liabilities | 2,801 | 3,151 | ||
Shareholders' equity | 302,214 | 272,643 | ||
Total liabilities and shareholders' equity | 329,825 | 307,604 | ||
Income Statement [Abstract] | ||||
Interest income | 7 | 10 | 15 | |
Dividends from Guaranty Bank & Trust | 18,000 | 0 | 23,000 | |
Income | 18,007 | 10 | 23,015 | |
Interest expense | 916 | 939 | 653 | |
Other expenses | 2,520 | 2,000 | 1,819 | |
Expenses | 3,436 | 2,939 | 2,472 | |
Income before income taxes | 14,571 | (2,929) | 20,543 | |
Tax effect | (718) | (574) | (639) | |
Net of Tax | 15,289 | (2,355) | 21,182 | |
Equity in undistributed earnings of subsidiary | (24,517) | (29,757) | (5,097) | |
Net earnings | 39,806 | 27,402 | 26,279 | |
Comprehensive income | $ 36,482 | $ 38,824 | $ 33,648 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net earnings | $ 39,806 | $ 27,402 | $ 26,279 |
Adjustments: | |||
Stock based compensation | 733 | 749 | 663 |
Net cash (used in) provided by operating activities | 43,544 | 42,521 | 32,046 |
Cash flows from investing activities | |||
Net cash provided by investing activities | (202,678) | (165,768) | (17,740) |
Cash flows from financing activities | |||
Purchase of treasury stock | 0 | (16,927) | (10,140) |
Exercise of stock options | 2,019 | 638 | 925 |
Cash dividends paid | (9,427) | (8,487) | (8,065) |
Net cash used in financing activities | 306,948 | 384,324 | 4,898 |
Net change in cash and cash equivalents | 147,814 | 261,077 | 19,204 |
Cash and cash equivalents at beginning of period | 351,791 | 90,714 | 71,510 |
Cash and cash equivalents at end of period | 499,605 | 351,791 | 90,714 |
Parent Company | |||
Cash flows from operating activities | |||
Net earnings | 39,806 | 27,402 | 26,279 |
Adjustments: | |||
Equity in undistributed subsidiary earnings | 24,517 | 29,757 | 5,097 |
Stock based compensation | 733 | 749 | 663 |
Change in other assets | 176 | (18) | (85) |
Change in other liabilities | 44 | (673) | 503 |
Net cash (used in) provided by operating activities | 15,890 | (2,261) | 22,433 |
Cash flows from investing activities | |||
Net cash provided by investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Proceeds of borrowings | 10,000 | 40,000 | 0 |
Repayments of borrowings | 17,000 | 19,000 | 2,000 |
Purchase of treasury stock | 0 | 16,927 | 10,140 |
Exercise of stock options | 2,019 | 638 | 925 |
Cash dividends paid | 9,427 | 8,487 | 8,065 |
Net cash used in financing activities | (14,408) | (3,776) | (19,280) |
Net change in cash and cash equivalents | 1,482 | (6,037) | 3,153 |
Cash and cash equivalents at beginning of period | 1,227 | 7,264 | 4,111 |
Cash and cash equivalents at end of period | $ 2,709 | $ 1,227 | $ 7,264 |