DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | |
Entity Common Stock, Shares Outstanding | 12,000,490 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
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 $1.00 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | TX | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Bankruptcy Proceedings, Reporting Current | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 58,788 | $ 42,979 |
Federal funds sold | 139,300 | 431,975 |
Interest-bearing deposits | 24,003 | 24,651 |
Total cash and cash equivalents | 222,091 | 499,605 |
Securities available for sale | 306,704 | 342,206 |
Securities held to maturity | 494,289 | 184,263 |
Loans held for sale | 1,166 | 4,129 |
Loans, net of allowance for credit losses of $29,096 and $30,433, respectively | 1,983,449 | 1,876,076 |
Accrued interest receivable | 8,961 | 8,901 |
Premises and equipment, net | 54,316 | 53,470 |
Cash surrender value of life insurance | 37,352 | 37,141 |
Core deposit intangible, net | 2,199 | 2,313 |
Goodwill | 32,160 | 32,160 |
Other assets | 47,142 | 45,806 |
Total assets | 3,189,829 | 3,086,070 |
Deposits | ||
Noninterest-bearing | 1,065,789 | 1,014,518 |
Interest-bearing | 1,731,621 | 1,656,309 |
Total deposits | 2,797,410 | 2,670,827 |
Securities sold under agreements to repurchase | 11,090 | 14,151 |
Accrued interest and other liabilities | 27,803 | 26,568 |
Line of credit | 0 | 5,000 |
Federal Home Loan Bank advances | 7,500 | 47,500 |
Subordinated debt | 54,146 | 19,810 |
Total liabilities | 2,897,949 | 2,783,856 |
Commitments and contingencies (see Note 11) | ||
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 shares issued, and 12,066,480 and 12,122,717 shares outstanding, respectively | 14,139 | 14,139 |
Additional paid-in capital | 225,700 | 225,544 |
Retained earnings | 115,727 | 107,645 |
Treasury stock, 2,072,498 and 2,016,261 shares at cost | (53,412) | (51,419) |
Accumulated other comprehensive (loss) income | (10,872) | 6,305 |
Equity attributable to Guaranty Bancshares, Inc. | 291,282 | 302,214 |
Noncontrolling interest | 598 | 0 |
Total equity | 291,880 | 302,214 |
Total liabilities and equity | $ 3,189,829 | $ 3,086,070 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 29,096 | $ 30,433 |
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 | 14,138,978 |
Common stock, shares outstanding (in shares) | 12,066,480 | 12,122,717 |
Treasury stock (in shares) | 2,072,498 | 2,016,261 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income | ||
Loans, including fees | $ 22,272 | $ 24,195 |
Securities | ||
Taxable | 1,953 | 1,052 |
Nontaxable | 1,150 | 1,039 |
Federal funds sold and interest-bearing deposits | 518 | 227 |
Total interest income | 25,893 | 26,513 |
Interest expense | ||
Deposits | 1,242 | 1,603 |
FHLB advances and federal funds purchased | 46 | 99 |
Subordinated debentures | 246 | 188 |
Other borrowed money | 36 | 132 |
Total interest expense | 1,570 | 2,022 |
Net interest income | 24,323 | 24,491 |
Reversal of provision for credit losses | (1,250) | 0 |
Net interest income after provision for credit losses | 25,573 | 24,491 |
Noninterest income | ||
Service charges | 976 | 829 |
Net realized gain on sale of loans | 905 | 1,398 |
Merchant and debit card fees | 1,611 | 1,506 |
Other income | 2,987 | 2,386 |
Total noninterest income | 6,479 | 6,119 |
Noninterest expense | ||
Employee compensation and benefits | 11,532 | 9,943 |
Occupancy expenses | 2,711 | 2,687 |
Other expenses | 4,836 | 4,682 |
Total noninterest expense | 19,079 | 17,312 |
Income before income taxes | 12,973 | 13,298 |
Income tax provision | 2,235 | 2,336 |
Net earnings | $ 10,738 | $ 10,962 |
Basic earnings per share | $ 0.89 | $ 0.91 |
Diluted earnings per share | $ 0.88 | $ 0.90 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net earnings | $ 10,738 | $ 10,962 |
Other comprehensive loss: | ||
Unrealized losses on securities, net of tax | (16,989) | (2,235) |
Unrealized (losses) gains on interest rate swaps: | ||
Unrealized holding gains arising during the period | 497 | 449 |
Reclassification of realized gains on interest rate swap termination from accumulated other comprehensive income | (685) | 0 |
Unrealized (losses) gains on interest rate swaps | (188) | 449 |
Total other comprehensive loss | (17,177) | (1,786) |
Comprehensive (loss) income | $ (6,439) | $ 9,176 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning Balance at Dec. 31, 2020 | $ 272,643 | $ 12,952 | $ 188,032 | $ 113,449 | $ (51,419) | $ 9,629 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 10,962 | 10,962 | |||||
Other comprehensive loss | (1,786) | (1,786) | |||||
10% stock dividend | 35,947 | 1,094 | 34,853 | (35,947) | |||
Exercise of stock options | 527 | 24 | 503 | ||||
Stock based compensation | 162 | 162 | |||||
Dividends: Common Stock | (2,411) | (2,411) | |||||
Ending Balance at Mar. 31, 2021 | 280,097 | 14,070 | 223,550 | 86,053 | (51,419) | 7,843 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity attributable to Guaranty Bancshares, Inc. | 302,214 | ||||||
Beginning Balance at Dec. 31, 2021 | 302,214 | 14,139 | 225,544 | 107,645 | (51,419) | 6,305 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 10,738 | 10,738 | |||||
Other comprehensive loss | (17,177) | (17,177) | |||||
Contributions from noncontrolling interest | 598 | $ 598 | |||||
10% stock dividend | 0 | ||||||
Purchase of treasury stock | (1,993) | (1,993) | |||||
Stock based compensation | 156 | 156 | |||||
Dividends: Common Stock | (2,656) | (2,656) | |||||
Ending Balance at Mar. 31, 2022 | 291,880 | 14,139 | 225,700 | 115,727 | (53,412) | (10,872) | $ 598 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity attributable to Guaranty Bancshares, Inc. | $ 291,282 | $ 14,139 | $ 225,700 | $ 115,727 | $ (53,412) | $ (10,872) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividends (in USD per share) | $ 0.22 | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net earnings | $ 10,738 | $ 10,962 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 1,069 | 1,108 |
Amortization | 219 | 343 |
Deferred taxes | (4,188) | (221) |
Premium amortization, net of discount accretion | 1,399 | 1,056 |
Gain on sale of loans | (905) | (1,398) |
Reversal of provision for credit losses | (1,250) | 0 |
Origination of loans held for sale | (25,758) | (32,850) |
Proceeds from loans held for sale | 29,626 | 35,127 |
Write-down of other real estate and repossessed assets | 0 | 2 |
Net gain on sale of premises, equipment, other real estate owned and other assets | (39) | (50) |
Stock based compensation | 156 | 162 |
Net change in accrued interest receivable and other assets | 6,792 | (7,406) |
Net change in accrued interest payable and other liabilities | 804 | 3,049 |
Net cash provided by operating activities | 18,663 | 9,884 |
Securities available for sale: | ||
Purchases | 0 | (50,604) |
Proceeds from maturities and principal repayments | 14,431 | 19,776 |
Securities held to maturity: | ||
Purchases | (915,587) | 0 |
Proceeds from maturities and principal repayments | 603,937 | 0 |
Net originations of loans | (106,123) | (45,685) |
Purchases of premises and equipment | (1,685) | (799) |
Proceeds from BOLI death benefit | 0 | 464 |
Proceeds from sale of premises, equipment, other real estate owned and other assets | 72 | 115 |
Net cash used in investing activities | (404,955) | (76,733) |
Cash flows from financing activities | ||
Net change in deposits | 126,920 | 188,820 |
Net change in securities sold under agreements to repurchase | (3,061) | 8,376 |
Proceeds from FHLB advances | 0 | 40,000 |
Repayment of FHLB advances | (40,000) | (100,005) |
Proceeds from line of credit | 1,000 | 3,000 |
Repayment of line of credit | (6,000) | 0 |
Proceeds from issuance of debentures | 34,336 | 0 |
Purchase of treasury stock | (1,993) | 0 |
Exercise of stock options | 0 | 527 |
Cash dividends paid | (2,424) | (2,188) |
Net cash provided by financing activities | 108,778 | 138,530 |
Net change in cash and cash equivalents | (277,514) | 71,681 |
Cash and cash equivalents at beginning of period | 499,605 | 351,791 |
Cash and cash equivalents at end of period | 222,091 | 423,472 |
Supplemental disclosures of cash flow information | ||
Interest paid | 1,460 | 2,067 |
Supplemental schedule of noncash investing and financing activities | ||
Cash dividends accrued | 2,656 | 2,411 |
Lease right of use assets obtained in exchange for lease liabilities | 1,384 | |
Transfer of loans to other real estate owned and repossessed assets | 0 | 437 |
Contributions from noncontrolling interest | 598 | 0 |
Stock dividend | $ 0 | $ 35,947 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Principles of Consolidation : The consolidated financial statements in this Quarterly Report on Form 10-Q (this “Report”) include the accounts of Guaranty, the Bank and indirect subsidiaries that are wholly-owned or controlled. Subsidiaries that are less than wholly owned are fully consolidated if they are controlled by Guaranty or one of its subsidiaries, and the portion of any subsidiary not owned by Guaranty is reported as noncontrolling interest. All significant intercompany balances and transactions have been eliminated in consolidation. The Bank has seven wholly-owned or controlled 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, White Oak Aviation, LLC and Caliber Guaranty Private Account, LLC, the entity representing noncontrolling interest in the consolidated financial statements. The accounting and financial reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry. Basis of Presentation : The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position and results of operations. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements, and notes thereto, for the year ended December 31, 2021, included in Guaranty’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. All dollar amounts referenced and discussed in the notes to the consolidated financial statements in this report are presented in thousands, unless noted otherwise. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Recent Accounting Pronouncements : In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the current guidance on troubled debt restructurings ("TDRs"), enhances current and introduces new disclosure requirements related to loan modifications. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company has the option to early adopt, and is in the process of evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. Subsequent Events : On May 2, 2022, the Capital Trust II subordinated debentures described in Note 5 were redeemed for $ 3,093 . On April 21, 2022, the Company announced the adoption of a new stock repurchase program that authorize d the repurchase of up to 1,000,000 shares of the Company's common stock. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 and the corresponding amounts of gross unrealized gains and losses: March 31, 2022 Amortized Gross Gross Estimated Available for sale: U.S. government agencies $ 10,012 $ — $ 731 $ 9,281 Corporate bonds 35,055 86 645 34,496 Mortgage-backed securities 212,489 131 14,728 197,892 Collateralized mortgage obligations 69,090 62 4,117 65,035 Total available for sale $ 326,646 $ 279 $ 20,221 $ 306,704 Held to maturity: Treasury securities $ 271,098 $ — $ 1,169 $ 269,929 Municipal securities 190,904 1,997 3,060 189,841 Mortgage-backed securities 32,287 — 1,534 30,753 Total held to maturity $ 494,289 $ 1,997 $ 5,763 $ 490,523 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 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 (loss) income in the accompanying balance sheets totaled $ 8,084 at March 31, 2022, and $ 8,860 at December 31, 2021. This amount will be amortized out of accumulated other comprehensive (loss) 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 March 31, 2022 or December 31, 2021. Information pertaining to securities with gross unrealized losses as of March 31, 2022 and December 31, 2021, 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 March 31, 2022 Gross Estimated Gross Estimated Gross Estimated Available for sale: U.S. government agencies $ ( 731 ) $ 9,281 $ — $ — $ ( 731 ) $ 9,281 Corporate bonds ( 645 ) 23,336 — — ( 645 ) 23,336 Mortgage-backed securities ( 12,285 ) 168,057 ( 2,443 ) 22,846 ( 14,728 ) 190,903 Collateralized mortgage obligations ( 4,117 ) 56,020 — — ( 4,117 ) 56,020 Total available for sale $ ( 17,778 ) $ 256,694 $ ( 2,443 ) $ 22,846 $ ( 20,221 ) $ 279,540 Held to maturity: Treasury securities $ ( 1,169 ) $ 269,929 $ — $ — ( 1,169 ) 269,929 Municipal securities ( 2,333 ) 41,962 ( 727 ) 2,347 ( 3,060 ) 44,309 Mortgage-backed securities ( 1,534 ) 30,753 — — ( 1,534 ) 30,753 Total held to maturity $ ( 5,036 ) $ 342,644 $ ( 727 ) $ 2,347 $ ( 5,763 ) $ 344,991 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 There were 152 investments in an unrealized loss position, of which 79 were available for sale debt securities in an unrealized loss position with no recorded allowance for credit losses as of March 31, 2022. 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 March 31, 2022 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 March 31, 2022, our held to maturity securities consisted of municipal bonds, treasury securities and mortgage-backed securities issued by the U.S. Government and its agencies. With regard to the treasuries and 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 March 31, 2022 , 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 total equity attributable to Guaranty Bancshares, Inc. Securities with fair values of approximately $ 349,612 and $ 310,958 at March 31, 2022 and December 31, 2021, respectively, were pledged to secure public fund deposits and for other purposes as required or permitted by law. There were no securities sold during the three months ended March 31, 2022 or 2021. The contractual maturities at March 31, 2022 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 March 31, 2022 Amortized Estimated Amortized Estimated Due within one year $ — $ — $ 233,817 $ 233,217 Due after one year through five years 14,620 14,647 98,824 98,980 Due after five years through ten years 30,447 29,130 53,743 53,495 Due after ten years — — 75,618 74,078 Mortgage-backed securities 212,489 197,892 32,287 30,753 Collateralized mortgage obligations 69,090 65,035 — — Total securities $ 326,646 $ 306,704 $ 494,289 $ 490,523 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 December 31, 2021 Commercial and industrial $ 270,074 $ 280,569 Real estate: Construction and development 318,035 307,797 Commercial real estate 674,558 622,842 Farmland 186,982 145,501 1-4 family residential 430,755 410,673 Multi-family residential 42,021 30,971 Consumer 52,670 50,965 Agricultural 14,403 14,639 Warehouse lending (1) 24,260 43,720 Overdrafts 303 363 Total loans (2) 2,014,061 1,908,040 Net of: Deferred loan fees, net ( 1,516 ) ( 1,531 ) Allowance for credit losses ( 29,096 ) ( 30,433 ) Total net loans (2) $ 1,983,449 $ 1,876,076 (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 as of March 31, 2022 and December 31, 2021,which is presented separately on the consolidated balance sheets. 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 three months ended March 31, 2022, for the year ended December 31, 2021 and for the three months ended March 31, 2021: Quarter Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 3,600 $ 4,221 $ 13,765 $ 1,698 $ 5,818 $ 396 $ 762 $ 169 $ 4 $ 30,433 (Reversal of) provision for credit losses 230 ( 323 ) ( 1,569 ) 302 ( 119 ) 60 146 ( 13 ) 36 ( 1,250 ) Loans charged-off ( 119 ) — — — — — ( 17 ) — ( 67 ) ( 203 ) Recoveries 39 — 1 — 30 — 16 — 30 116 Ending balance $ 3,750 $ 3,898 $ 12,197 $ 2,000 $ 5,729 $ 456 $ 907 $ 156 $ 3 $ 29,096 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 (Reversal of) 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 Quarter 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 ( 504 ) ( 538 ) 1,087 ( 163 ) 13 133 ( 29 ) ( 31 ) 32 — Loans charged-off ( 7 ) — ( 758 ) — — — ( 61 ) — ( 49 ) ( 875 ) Recoveries 7 1 — — — — 4 — 14 26 Ending balance $ 3,529 $ 4,198 $ 16,109 $ 1,057 $ 6,326 $ 496 $ 843 $ 208 $ 4 $ 32,770 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. During 2021, we recorded no provision in the first quarter, a $ 1,000 reverse provision in the second quarter and a $ 700 reverse provision in the third quarter. These provision reversals captured improvements that 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 impacted the reserve calculations within our model. In the first quarter of 2022, we unwound the remaining COVID-specific qualitative factors and recorded an additional reverse provision of $ 1,250 to account for significant improvements in COVID-related health statistics and economic impacts. The Company uses the weighted-average remaining maturity ("WARM") method as the basis for the estimation of expected credit losses. The WARM method uses a historical average annual charge-off rate containing 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, using qualitative factors, for current conditions and for reasonable and supportable forecast periods. Qualitative loss factors are based on the Company’s judgment of company, market, industry or business specific data, differences in loan-specific risk characteristics such as underwriting standards, portfolio mix, risk grades, delinquency level, or term. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in our historic loss factors. Additionally, we have adjusted for changes in expected environmental and economic conditions, such as changes in unemployment rates, property values, and other relevant factors over the next 12 to 24 months. Management adjusted the historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company’s estimate was a cumulative loss rate covering the expected contractual term of the portfolio. The ACL is measured on a collective segment basis when similar risk characteristics exist. Our loan portfolio is segmented first by regulatory call report code, and second, by internally identified risk grades for our commercial loan segments and by delinquency status for our consumer loan segments. We also have separate segments for our warehouse lines of credit, for our internally originated SBA loans, for our SBA loans acquired from Westbound Bank and for SBA-guaranteed PPP loans. Consistent forecasts of the loss drivers are used across the loan segments. For loans that do not share general risk characteristics with segments, we estimate a specific reserve on an individual basis. A reserve is recorded when the carrying amount of the loan exceeds the discounted estimated cash flows using the loan's initial effective interest rate or the fair value of collateral for collateral-dependent loans. 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 March 31, 2022: March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 42,707 $ 96,935 $ 27,986 $ 14,909 $ 5,920 $ 16,305 $ 88,106 $ 292,868 Special mention — 156 — — — — — 156 Substandard — — 265 659 210 37 — 1,171 Nonaccrual — 33 71 — — — 35 139 Total commercial and industrial loans $ 42,707 $ 97,124 $ 28,322 $ 15,568 $ 6,130 $ 16,342 $ 88,141 $ 294,334 Charge-offs $ — $ — $ ( 30 ) $ — $ — $ — $ ( 89 ) $ ( 119 ) Recoveries — — — — — 33 6 39 Current period net $ — $ — $ ( 30 ) $ — $ — $ 33 $ ( 83 ) $ ( 80 ) Construction and development: Pass $ 42,538 $ 176,595 $ 48,275 $ 18,242 $ 6,119 $ 18,559 $ 5,960 $ 316,288 Special mention — — 814 — — 932 — 1,746 Substandard — — — — 1 — — 1 Nonaccrual — — — — — — — — Total construction and development loans $ 42,538 $ 176,595 $ 49,089 $ 18,242 $ 6,120 $ 19,491 $ 5,960 $ 318,035 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 67,507 $ 137,731 $ 104,126 $ 76,086 $ 57,139 $ 173,813 $ 16,875 $ 633,277 Special mention — — — — 8,921 13,406 — 22,327 Substandard — — — — 1,034 17,415 — 18,449 Nonaccrual — — — 115 64 326 — 505 Total commercial real estate loans $ 67,507 $ 137,731 $ 104,126 $ 76,201 $ 67,158 $ 204,960 $ 16,875 $ 674,558 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — 1 — — 1 Current period net $ — $ — $ — $ — $ 1 $ — $ — $ 1 March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Farmland: Pass $ 45,866 $ 92,766 $ 12,486 $ 7,915 $ 7,375 $ 14,292 $ 5,914 $ 186,614 Special mention — — — — — — — — Substandard — — — — — 70 — 70 Nonaccrual — — 195 — — 103 — 298 Total farmland loans $ 45,866 $ 92,766 $ 12,681 $ 7,915 $ 7,375 $ 14,465 $ 5,914 $ 186,982 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential: Pass $ 35,231 $ 131,940 $ 63,134 $ 38,256 $ 32,144 $ 112,524 $ 15,667 $ 428,896 Special mention — — — 91 — 203 — 294 Substandard — — — — — — — — Nonaccrual — 163 — — 172 1,230 — 1,565 Total 1-4 family residential loans $ 35,231 $ 132,103 $ 63,134 $ 38,347 $ 32,316 $ 113,957 $ 15,667 $ 430,755 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 30 — 30 Current period net $ — $ — $ — $ — $ — $ 30 $ — $ 30 Multi-family residential: Pass $ 12,469 $ 16,723 $ 2,742 $ 6,385 $ 900 $ 2,501 $ 301 $ 42,021 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 12,469 $ 16,723 $ 2,742 $ 6,385 $ 900 $ 2,501 $ 301 $ 42,021 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Consumer and overdrafts: Pass $ 8,612 $ 20,436 $ 9,551 $ 3,709 $ 3,965 $ 931 $ 5,375 $ 52,579 Special mention — 9 6 4 — 9 250 278 Substandard — — — — — — — — Nonaccrual — 50 6 26 31 3 — 116 Total consumer loans and overdrafts $ 8,612 $ 20,495 $ 9,563 $ 3,739 $ 3,996 $ 943 $ 5,625 $ 52,973 Charge-offs $ ( 68 ) $ ( 6 ) $ ( 10 ) $ — $ — $ — $ — $ ( 84 ) Recoveries 30 1 — 10 — 5 — 46 Current period net $ ( 38 ) $ ( 5 ) $ ( 10 ) $ 10 $ — $ 5 $ — $ ( 38 ) Agricultural: Pass $ 393 $ 2,952 $ 1,589 $ 830 $ 801 $ 621 $ 7,089 $ 14,275 Special mention — — — — — 6 — 6 Substandard — — 14 3 14 32 — 63 Nonaccrual — — — — 6 53 — 59 Total agricultural loans $ 393 $ 2,952 $ 1,603 $ 833 $ 821 $ 712 $ 7,089 $ 14,403 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Total loans: Pass $ 255,323 $ 676,078 $ 269,889 $ 166,332 $ 114,363 $ 339,546 $ 145,287 $ 1,966,818 Special mention — 165 820 95 8,921 14,556 250 24,807 Substandard — — 279 662 1,259 17,554 — 19,754 Nonaccrual — 246 272 141 273 1,715 35 2,682 Total loans $ 255,323 $ 676,489 $ 271,260 $ 167,230 $ 124,816 $ 373,371 $ 145,572 $ 2,014,061 Charge-offs $ ( 68 ) $ ( 6 ) $ ( 40 ) $ — $ — $ — $ ( 89 ) $ ( 203 ) Recoveries 30 1 — 10 1 68 6 116 Total current period net (charge-offs) recoveries $ ( 38 ) $ ( 5 ) $ ( 40 ) $ 10 $ 1 $ 68 $ ( 83 ) $ ( 87 ) 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 ) December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Total 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 $ — $ — $ — $ — $ — $ — $ — $ — 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 $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Total 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 $ ( 224 ) $ ( 33 ) $ ( 223 ) $ ( 147 ) $ ( 576 ) $ ( 243 ) $ ( 40 ) $ ( 1,486 ) There were no loans classified in the “doubtful” or “loss” risk rating categories as of March 31, 2022 and December 31, 2021. The following tables presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loan, and their impact on the ACL, as of March 31, 2022 and December 31, 2021: March 31, 2022 Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ 757 $ — $ 757 $ 282 Real estate: Commercial real estate 4,295 — 4,295 553 Consumer 250 — 250 250 Total $ 5,302 $ — $ 5,302 $ 1,085 December 31, 2021 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: March 31, 2022 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 223 $ — $ 119 $ 342 $ 293,992 $ 294,334 $ — Real estate: Construction and 170 — — 170 317,865 318,035 — Commercial real 727 6,990 — 7,717 666,841 674,558 — Farmland 100 433 195 728 186,254 186,982 — 1-4 family residential 2,674 625 234 3,533 427,222 430,755 — Multi-family residential — — — — 42,021 42,021 — Consumer 226 287 34 547 52,123 52,670 — Agricultural 105 — — 105 14,298 14,403 — Overdrafts — — — — 303 303 — Total $ 4,225 $ 8,335 $ 582 $ 13,142 $ 2,000,919 $ 2,014,061 $ — 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 $ — The following table presents information regarding nonaccrual loans as of: March 31, 2022 December 31, 2021 Commercial and industrial $ 139 $ 148 Real estate: Commercial real estate 505 642 Farmland 298 298 1-4 family residential 1,565 1,535 Consumer and overdrafts 116 160 Agricultural 59 48 Total $ 2,682 $ 2,831 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 were no loans modified as TDRs during the three months ended March 31, 2022. The following table presents loans, by class, modified as TDRs during the year ended December 31, 2021: Year Ended December 31, 2021 Number Pre-Modification Post-Modification Troubled Debt Restructurings: Commercial and industrial 1 17 14 Total 1 $ 17 $ 14 There were no TDRs that subsequently defaulted during 2021 , and the TDRs described above did no t increase the allowance for credit losses and resulted in no charge-offs during the year ended December 31, 2021 . |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT | NOTE 4 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT At March 31, 2022 and December 31, 2021, securities sold under agreements to repurchase totaled $ 11,090 and $ 14,151 , respectively. The Company has an unsecured $ 25,000 revolving line of credit, which had no outstanding balance at March 31, 2022, bears interest at the greater of (i) the prime rate, which was 3.50 % at March 31, 2022, or (ii) the rate floor of 3.50 %, with interest payable quarterly, and matures in March 2023. As of December 31, 2021, there was a $ 5,000 outstanding balance on the line of credit. Federal Home Loan Bank (FHLB) advances, as of March 31, 2022, were as follows: Fixed rate advances, with monthly interest payments, principal due in: Year Current Principal Due 2022 1.99 % $ 1,500 2024 1.76 % 6,000 $ 7,500 There are no fixed rate advances, with monthly principal and interest payments outstanding as of March 31, 2022 . |
SUBORDINATED DEBT
SUBORDINATED DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
SUBORDINATED DEBT | NOTE 5 - SUBORDINATED DEBT Subordinated debt was made up of the following as of: March 31, 2022 December 31, 2021 Trust II Debentures $ 3,093 $ 3,093 Trust III Debentures 2,062 2,062 DCB Trust I Debentures 5,155 5,155 Subordinated note 34,336 — Other debentures 9,500 9,500 $ 54,146 $ 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 March 31, 2022 and 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 amount 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 These debentures were redeemed subsequent to quarter end, prior to filing of this report. As of March 31, 2022, interest was payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 3.35 %. 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. Subordinated Note On March 4, 2022, the Company completed a private placement of $ 35,000 aggregate principal amount of its fixed-to-floating rate subordinated note due April 1, 2032. The subordinated note initially bears a fixed interest rate of 3.625 % per year, due semi-annual in arrears on April 1 and October 1. Commencing on April 1, 2027, the interest rate on the subordinated note will reset each quarter at a floating interest rate equal to the then-current three month term Secured Overnight Financing Rate ("SOFR") plus 192 basis points. The Company may at its option redeem in whole or in part the subordinated note on or after March 4, 2027 without a premium. The subordinated note is treated as Tier 2 Capital for regulatory purposes, and is presented net of $ 664 in related issuance costs on the consolidated balance sheets. 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 remain as of March 31, 2022 . 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 the subordinated note and other debentures are as follows: Year Current Principal Due 2022 2.45 % $ 2,000 2023 2.85 % 3,500 2024 3.74 % 4,000 Thereafter 3.63 % 34,336 $ 43,836 |
EQUITY AWARDS
EQUITY AWARDS | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY AWARDS | NOTE 6 – 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. A summary of stock option activity in the Plan during the three months ended March 31, 2022 and 2021 follows: Three Months Ended March 31, 2022 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 502,780 $ 25.77 5.59 $ 5,936 Granted 39,000 35.89 Forfeited ( 5,060 ) 26.92 Balance, March 31, 2022 536,720 $ 26.50 5.65 $ 4,626 Exercisable at end of period 307,086 $ 24.30 4.28 $ 3,285 Three Months Ended March 31, 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 24,500 33.37 Exercised ( 24,250 ) 21.74 Forfeited ( 10,000 ) 28.54 Balance, March 31, 2021 547,220 $ 24.81 5.88 $ 6,532 Exercisable at end of period 296,922 $ 23.49 4.64 $ 3,938 A summary of nonvested stock option activity in the Plan during the three months ended March 31, 2022 and 2021 follows: Three Months Ended March 31, 2022 Number of Weighted-Average Outstanding at beginning of year 207,084 $ 5.23 Granted 39,000 6.03 Vested ( 14,030 ) 5.21 Forfeited ( 2,420 ) 9.13 Balance, March 31, 2022 229,634 $ 5.38 Three Months Ended March 31, 2021 Number of Weighted-Average Outstanding at beginning of year 214,680 $ 4.46 Effect of 10 % stock dividend 23,218 Granted 24,500 5.67 Vested ( 12,100 ) 4.59 Balance, March 31, 2021 250,298 $ 5.11 No options were exercised during the quarter ended March 31, 2022 . Information related to stock options in the Plan is as follows for the three months ended: March 31, 2022 March 31, 2021 Intrinsic value of options exercised $ — $ 364 Cash received from options exercised — 527 Weighted average fair value of options granted 6.03 5.67 Restricted Stock Awards and Units A summary of restricted stock activity in the Plan during the three months ended March 31, 2022 and 2021 follows: Three Months Ended March 31, 2022 Number of Weighted-Average Outstanding at beginning of year 30,190 $ 27.52 Vested ( 4,070 ) 27.50 Balance, March 31, 2022 26,120 $ 27.52 Three Months Ended March 31, 2021 Number of Weighted-Average Outstanding at beginning of year 35,300 $ 29.72 Effect of 10 % stock dividend 3,530 Vested ( 4,840 ) 30.25 Balance, March 31, 2021 33,990 $ 26.95 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 March 31, 2022, there was $ 1,817 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 3.17 years. The Company granted options under the Plan during the first three months of 2022 and 2021. Expense of $ 156 and $ 162 was recorded during the three months ended March 31, 2022 and 2021 , respectively, which represents the fair value of shares vested during those periods. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | NOTE 7 - 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 three months ended March 31, 2022 and 2021 totaled $ 436 and $ 404 , 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 GNTY 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 March 31, 2022, the number of shares held by the KSOP was 1,242,594 . There were no unallocated shares to plan participants as of March 31, 2022, 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 $ 37,352 and $ 37,141 as of March 31, 2022 and December 31, 2021, respectively. Expense related to these plans totaled $ 322 and $ 358 for the three months ended March 31, 2022 and 2021, respectively. This expense is included in employee compensation and benefits on the Company’s consolidated statements of earnings. The recorded liability totaled approximately $ 5,134 and $ 4,969 as of March 31, 2022 and December 31, 2021, 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 three months ended March 31, 2022 and 2021 totaled $ 1,267 and $ 880 , respectively. This expense is included in employee compensation and benefits on the consolidated statements of earnings. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 8 – 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 March 31, 2022, operating lease right-of-use assets were $ 13,911 and liabilities were $ 14,477 , and as of December 31, 2021 , lease assets and liabilities were $ 14,376 and $ 14,882 , 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 three months ended March 31, 2022 and 2021 was approximately $ 549 and $ 568 , 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: March 31, 2022 December 31, 2021 Operating leases Operating lease right-of-use assets $ 13,911 $ 14,376 Operating lease liabilities 14,477 14,882 Weighted average remaining lease term Operating leases 8 years 8 years Weighted average discount rate Operating leases 1.96 % 1.95 % 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 March 31, 2022, are as follows: Year Ended December 31, Amount 2022 $ 1,606 2023 2,093 2024 2,039 2025 1,870 2026 1,642 Thereafter 5,874 Total lease payments 15,124 Less: interest ( 647 ) Present value of lease liabilities $ 14,477 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9 - INCOME TAXES Income tax expense was as follows for: Three Months Ended 2022 2021 Income tax expense for the period $ 2,235 $ 2,336 Effective tax rate 17.23 % 17.57 % The effective tax rates differ from the statutory federal tax rate of 21 % for the three months ended March 31, 2022 and 2021 , largely due to tax exempt interest income earned on certain investment securities and loans. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 10 - 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 5. 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 at the time of termination, as the risk exposure declined to acceptable levels. In the first quarter of 2022, the Company also terminated interest rate swaps that were originally designed to receive payments at a floating rate in exchange for paying a fixed rate, the objective of which was to reduce the overall cost of short-term 3-month FHLB advances that were renewed consistent with the reset terms on the interest rate swaps. The swaps were cancelled at a net gain of $ 685 , which is included in other non-interest income in the Consolidated Statement of Earnings. The interest rate swaps, with notional amounts totaling $ 40,000 as of December 31, 2021, were designated as cash flow hedges of the FHLB advances. As of December 31, 2021, the aggregate fair value of these swaps was recorded in accrued interest and other liabilities within the Company’s Consolidated Balance Sheet, 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 ) Interest expense recorded on these swap transactions totaled $ 63 and $ 155 during the three months ended March 31, 2022 and 2021 , respectively. This expense is reported as a component of interest expense on the debentures and the FHLB advances and federal funds purchased. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 - 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 March 31, 2022 and December 31, 2021. 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 March 31, 2022 and December 31, 2021 , 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 March 31, 2022 December 31, 2021 Commitments to extend credit $ 426,745 $ 405,269 Letters of credit 9,421 8,357 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 March 31, 2022, the Company had letters of credit of $ 31,033 pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law. |
REGULATORY MATTERS
REGULATORY MATTERS | 3 Months Ended |
Mar. 31, 2022 | |
Banking And Thrifts [Abstract] | |
REGULATORY MATTERS | NOTE 12 - 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 March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021, 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 March 31, 2022 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 March 31, 2022 and December 31, 2021. 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 March 31, 2022 Total capital to risk-weighted assets: Consolidated $ 339,743 15.89 % $ 171,045 8.00 % $ 224,496 10.50 % n/a Bank 324,424 15.17 % 171,045 8.00 % 224,496 10.50 % $ 213,806 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 278,653 13.03 % 128,283 6.00 % 181,735 8.50 % n/a Bank 297,670 13.92 % 128,283 6.00 % 181,735 8.50 % 171,045 8.00 % Tier 1 capital to average assets: (1) Consolidated 278,653 8.99 % 123,998 4.00 % 123,998 4.00 % n/a Bank 297,670 9.60 % 123,967 4.00 % 123,967 4.00 % 154,959 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 268,343 12.55 % 96,213 4.50 % 149,664 7.00 % n/a Bank 297,670 13.92 % 96,213 4.50 % 149,664 7.00 % 138,974 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, 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. 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. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 13 - 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: March 31, 2022 Fair Value Quoted Significant Significant Assets at fair value on a recurring basis: Available for sale securities: Treasury securities $ — $ — $ — $ — Mortgage-backed securities 197,892 — 197,892 — Collateralized mortgage obligations 65,035 — 65,035 — Municipal securities — — — — Corporate bonds 34,496 — 34,496 — U.S. government agencies 9,281 — 9,281 — Loans held for sale 1,166 — — 1,166 Cash surrender value of life insurance 37,352 — 37,352 — SBA servicing assets 1,004 — — 1,004 Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 4,217 — — 4,217 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 — Municipal securities — — — — 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 There were no transfers between Level 2 and Level 3 during the three months ended March 31, 2022 or for the year ended December 31, 2021. Nonfinancial Assets and Nonfinancial Liabilities Nonfinancial assets measured at fair value on a nonrecurring basis usually include certain foreclosed assets which, upon initial recognition, are 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, are remeasured at fair value through a write-down included in current earnings. The fair value of a foreclosed asset is usually estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. As of March 31, 2022 and 2021, and December 31, 2021 , there were no foreclosed assets that were remeasured and recorded at fair value. As of March 31, 2022 and December 31, 2021 , there were no nonrecurring level 3 fair value measurements requiring quantitative information. The following table presents information on individually evaluated collateral dependent loans as of March 31, 2022: Fair Value Measurements Using March 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ 475 $ 475 Real estate: Construction and development — — — — Commercial real estate — — 3,742 3,742 Total $ — $ — $ 4,217 $ 4,217 The carrying amounts and estimated fair values of financial instruments not previously discussed in this note, as of March 31, 2022 and December 31, 2021, 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 $ 222,091 $ 222,091 $ — $ — $ 222,091 Marketable securities held to maturity 494,289 — 490,523 — 490,523 Loans, net 1,983,449 — — 1,951,997 1,951,997 Accrued interest receivable 8,961 — 8,961 — 8,961 Nonmarketable equity securities 12,513 — 12,513 — 12,513 Financial liabilities: Deposits $ 2,797,410 $ 2,473,118 $ 324,626 $ — $ 2,797,744 Securities sold under repurchase agreements 11,090 — 11,090 — 11,090 Accrued interest payable 591 — 591 — 591 Federal Home Loan Bank advances 7,500 — 7,494 — 7,494 Subordinated debt 54,146 — 52,190 — 52,190 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 debt 19,810 — 17,833 — 17,833 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 debt 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 14 - 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. There were no net earnings attributable to the noncontrolling interest during the quarter ended March 31, 2022. 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 for the: Quarter Ended 2022 2021 Numerator: Net earnings (basic) $ 10,738 $ 10,962 Net earnings (diluted) $ 10,738 $ 10,962 Denominator: Weighted-average shares outstanding (basic) 12,109,074 12,038,638 Effect of dilutive securities: Common stock equivalent shares from stock options 151,871 139,138 Weighted-average shares outstanding (diluted) 12,260,945 12,177,776 Net earnings per share Basic $ 0.89 $ 0.91 Diluted $ 0.88 $ 0.90 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation : The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position and results of operations. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements, and notes thereto, for the year ended December 31, 2021, included in Guaranty’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. All dollar amounts referenced and discussed in the notes to the consolidated financial statements in this report are presented in thousands, unless noted otherwise. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Recent Accounting Pronouncements : In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the current guidance on troubled debt restructurings ("TDRs"), enhances current and introduces new disclosure requirements related to loan modifications. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company has the option to early adopt, and is in the process of evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. Subsequent Events : On May 2, 2022, the Capital Trust II subordinated debentures described in Note 5 were redeemed for $ 3,093 . On April 21, 2022, the Company announced the adoption of a new stock repurchase program that authorize d the repurchase of up to 1,000,000 shares of the Company's common stock. |
Principles of Consolidation | Principles of Consolidation : The consolidated financial statements in this Quarterly Report on Form 10-Q (this “Report”) include the accounts of Guaranty, the Bank and indirect subsidiaries that are wholly-owned or controlled. Subsidiaries that are less than wholly owned are fully consolidated if they are controlled by Guaranty or one of its subsidiaries, and the portion of any subsidiary not owned by Guaranty is reported as noncontrolling interest. All significant intercompany balances and transactions have been eliminated in consolidation. The Bank has seven wholly-owned or controlled 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, White Oak Aviation, LLC and Caliber Guaranty Private Account, LLC, the entity representing noncontrolling interest in the consolidated financial statements. The accounting and financial reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry. |
Subsequent Events | Subsequent Events : On May 2, 2022, the Capital Trust II subordinated debentures described in Note 5 were redeemed for $ 3,093 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements : In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the current guidance on troubled debt restructurings ("TDRs"), enhances current and introduces new disclosure requirements related to loan modifications. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company has the option to early adopt, and is in the process of evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 and the corresponding amounts of gross unrealized gains and losses: March 31, 2022 Amortized Gross Gross Estimated Available for sale: U.S. government agencies $ 10,012 $ — $ 731 $ 9,281 Corporate bonds 35,055 86 645 34,496 Mortgage-backed securities 212,489 131 14,728 197,892 Collateralized mortgage obligations 69,090 62 4,117 65,035 Total available for sale $ 326,646 $ 279 $ 20,221 $ 306,704 Held to maturity: Treasury securities $ 271,098 $ — $ 1,169 $ 269,929 Municipal securities 190,904 1,997 3,060 189,841 Mortgage-backed securities 32,287 — 1,534 30,753 Total held to maturity $ 494,289 $ 1,997 $ 5,763 $ 490,523 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 |
Schedule of Securities with Gross Unrealized Losses | Information pertaining to securities with gross unrealized losses as of March 31, 2022 and December 31, 2021, 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 March 31, 2022 Gross Estimated Gross Estimated Gross Estimated Available for sale: U.S. government agencies $ ( 731 ) $ 9,281 $ — $ — $ ( 731 ) $ 9,281 Corporate bonds ( 645 ) 23,336 — — ( 645 ) 23,336 Mortgage-backed securities ( 12,285 ) 168,057 ( 2,443 ) 22,846 ( 14,728 ) 190,903 Collateralized mortgage obligations ( 4,117 ) 56,020 — — ( 4,117 ) 56,020 Total available for sale $ ( 17,778 ) $ 256,694 $ ( 2,443 ) $ 22,846 $ ( 20,221 ) $ 279,540 Held to maturity: Treasury securities $ ( 1,169 ) $ 269,929 $ — $ — ( 1,169 ) 269,929 Municipal securities ( 2,333 ) 41,962 ( 727 ) 2,347 ( 3,060 ) 44,309 Mortgage-backed securities ( 1,534 ) 30,753 — — ( 1,534 ) 30,753 Total held to maturity $ ( 5,036 ) $ 342,644 $ ( 727 ) $ 2,347 $ ( 5,763 ) $ 344,991 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 |
Investments Classified by Contractual Maturity Date | The contractual maturities at March 31, 2022 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 March 31, 2022 Amortized Estimated Amortized Estimated Due within one year $ — $ — $ 233,817 $ 233,217 Due after one year through five years 14,620 14,647 98,824 98,980 Due after five years through ten years 30,447 29,130 53,743 53,495 Due after ten years — — 75,618 74,078 Mortgage-backed securities 212,489 197,892 32,287 30,753 Collateralized mortgage obligations 69,090 65,035 — — Total securities $ 326,646 $ 306,704 $ 494,289 $ 490,523 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 December 31, 2021 Commercial and industrial $ 270,074 $ 280,569 Real estate: Construction and development 318,035 307,797 Commercial real estate 674,558 622,842 Farmland 186,982 145,501 1-4 family residential 430,755 410,673 Multi-family residential 42,021 30,971 Consumer 52,670 50,965 Agricultural 14,403 14,639 Warehouse lending (1) 24,260 43,720 Overdrafts 303 363 Total loans (2) 2,014,061 1,908,040 Net of: Deferred loan fees, net ( 1,516 ) ( 1,531 ) Allowance for credit losses ( 29,096 ) ( 30,433 ) Total net loans (2) $ 1,983,449 $ 1,876,076 (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 as of March 31, 2022 and December 31, 2021,which is presented separately on the consolidated balance sheets. |
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 three months ended March 31, 2022, for the year ended December 31, 2021 and for the three months ended March 31, 2021: Quarter Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 3,600 $ 4,221 $ 13,765 $ 1,698 $ 5,818 $ 396 $ 762 $ 169 $ 4 $ 30,433 (Reversal of) provision for credit losses 230 ( 323 ) ( 1,569 ) 302 ( 119 ) 60 146 ( 13 ) 36 ( 1,250 ) Loans charged-off ( 119 ) — — — — — ( 17 ) — ( 67 ) ( 203 ) Recoveries 39 — 1 — 30 — 16 — 30 116 Ending balance $ 3,750 $ 3,898 $ 12,197 $ 2,000 $ 5,729 $ 456 $ 907 $ 156 $ 3 $ 29,096 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 (Reversal of) 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 Quarter 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 ( 504 ) ( 538 ) 1,087 ( 163 ) 13 133 ( 29 ) ( 31 ) 32 — Loans charged-off ( 7 ) — ( 758 ) — — — ( 61 ) — ( 49 ) ( 875 ) Recoveries 7 1 — — — — 4 — 14 26 Ending balance $ 3,529 $ 4,198 $ 16,109 $ 1,057 $ 6,326 $ 496 $ 843 $ 208 $ 4 $ 32,770 |
Summary of Credit Exposure | The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of March 31, 2022: March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 42,707 $ 96,935 $ 27,986 $ 14,909 $ 5,920 $ 16,305 $ 88,106 $ 292,868 Special mention — 156 — — — — — 156 Substandard — — 265 659 210 37 — 1,171 Nonaccrual — 33 71 — — — 35 139 Total commercial and industrial loans $ 42,707 $ 97,124 $ 28,322 $ 15,568 $ 6,130 $ 16,342 $ 88,141 $ 294,334 Charge-offs $ — $ — $ ( 30 ) $ — $ — $ — $ ( 89 ) $ ( 119 ) Recoveries — — — — — 33 6 39 Current period net $ — $ — $ ( 30 ) $ — $ — $ 33 $ ( 83 ) $ ( 80 ) Construction and development: Pass $ 42,538 $ 176,595 $ 48,275 $ 18,242 $ 6,119 $ 18,559 $ 5,960 $ 316,288 Special mention — — 814 — — 932 — 1,746 Substandard — — — — 1 — — 1 Nonaccrual — — — — — — — — Total construction and development loans $ 42,538 $ 176,595 $ 49,089 $ 18,242 $ 6,120 $ 19,491 $ 5,960 $ 318,035 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 67,507 $ 137,731 $ 104,126 $ 76,086 $ 57,139 $ 173,813 $ 16,875 $ 633,277 Special mention — — — — 8,921 13,406 — 22,327 Substandard — — — — 1,034 17,415 — 18,449 Nonaccrual — — — 115 64 326 — 505 Total commercial real estate loans $ 67,507 $ 137,731 $ 104,126 $ 76,201 $ 67,158 $ 204,960 $ 16,875 $ 674,558 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — 1 — — 1 Current period net $ — $ — $ — $ — $ 1 $ — $ — $ 1 March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Farmland: Pass $ 45,866 $ 92,766 $ 12,486 $ 7,915 $ 7,375 $ 14,292 $ 5,914 $ 186,614 Special mention — — — — — — — — Substandard — — — — — 70 — 70 Nonaccrual — — 195 — — 103 — 298 Total farmland loans $ 45,866 $ 92,766 $ 12,681 $ 7,915 $ 7,375 $ 14,465 $ 5,914 $ 186,982 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential: Pass $ 35,231 $ 131,940 $ 63,134 $ 38,256 $ 32,144 $ 112,524 $ 15,667 $ 428,896 Special mention — — — 91 — 203 — 294 Substandard — — — — — — — — Nonaccrual — 163 — — 172 1,230 — 1,565 Total 1-4 family residential loans $ 35,231 $ 132,103 $ 63,134 $ 38,347 $ 32,316 $ 113,957 $ 15,667 $ 430,755 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 30 — 30 Current period net $ — $ — $ — $ — $ — $ 30 $ — $ 30 Multi-family residential: Pass $ 12,469 $ 16,723 $ 2,742 $ 6,385 $ 900 $ 2,501 $ 301 $ 42,021 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 12,469 $ 16,723 $ 2,742 $ 6,385 $ 900 $ 2,501 $ 301 $ 42,021 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Consumer and overdrafts: Pass $ 8,612 $ 20,436 $ 9,551 $ 3,709 $ 3,965 $ 931 $ 5,375 $ 52,579 Special mention — 9 6 4 — 9 250 278 Substandard — — — — — — — — Nonaccrual — 50 6 26 31 3 — 116 Total consumer loans and overdrafts $ 8,612 $ 20,495 $ 9,563 $ 3,739 $ 3,996 $ 943 $ 5,625 $ 52,973 Charge-offs $ ( 68 ) $ ( 6 ) $ ( 10 ) $ — $ — $ — $ — $ ( 84 ) Recoveries 30 1 — 10 — 5 — 46 Current period net $ ( 38 ) $ ( 5 ) $ ( 10 ) $ 10 $ — $ 5 $ — $ ( 38 ) Agricultural: Pass $ 393 $ 2,952 $ 1,589 $ 830 $ 801 $ 621 $ 7,089 $ 14,275 Special mention — — — — — 6 — 6 Substandard — — 14 3 14 32 — 63 Nonaccrual — — — — 6 53 — 59 Total agricultural loans $ 393 $ 2,952 $ 1,603 $ 833 $ 821 $ 712 $ 7,089 $ 14,403 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Total loans: Pass $ 255,323 $ 676,078 $ 269,889 $ 166,332 $ 114,363 $ 339,546 $ 145,287 $ 1,966,818 Special mention — 165 820 95 8,921 14,556 250 24,807 Substandard — — 279 662 1,259 17,554 — 19,754 Nonaccrual — 246 272 141 273 1,715 35 2,682 Total loans $ 255,323 $ 676,489 $ 271,260 $ 167,230 $ 124,816 $ 373,371 $ 145,572 $ 2,014,061 Charge-offs $ ( 68 ) $ ( 6 ) $ ( 40 ) $ — $ — $ — $ ( 89 ) $ ( 203 ) Recoveries 30 1 — 10 1 68 6 116 Total current period net (charge-offs) recoveries $ ( 38 ) $ ( 5 ) $ ( 40 ) $ 10 $ 1 $ 68 $ ( 83 ) $ ( 87 ) 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 ) December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Total 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 $ — $ — $ — $ — $ — $ — $ — $ — 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 $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Total 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 $ ( 224 ) $ ( 33 ) $ ( 223 ) $ ( 147 ) $ ( 576 ) $ ( 243 ) $ ( 40 ) $ ( 1,486 ) |
Summary of Amortized Cost Basis of Collateral-dependent Loans | The following tables presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loan, and their impact on the ACL, as of March 31, 2022 and December 31, 2021: March 31, 2022 Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ 757 $ — $ 757 $ 282 Real estate: Commercial real estate 4,295 — 4,295 553 Consumer 250 — 250 250 Total $ 5,302 $ — $ 5,302 $ 1,085 December 31, 2021 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: March 31, 2022 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 223 $ — $ 119 $ 342 $ 293,992 $ 294,334 $ — Real estate: Construction and 170 — — 170 317,865 318,035 — Commercial real 727 6,990 — 7,717 666,841 674,558 — Farmland 100 433 195 728 186,254 186,982 — 1-4 family residential 2,674 625 234 3,533 427,222 430,755 — Multi-family residential — — — — 42,021 42,021 — Consumer 226 287 34 547 52,123 52,670 — Agricultural 105 — — 105 14,298 14,403 — Overdrafts — — — — 303 303 — Total $ 4,225 $ 8,335 $ 582 $ 13,142 $ 2,000,919 $ 2,014,061 $ — 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 $ — |
Schedule of Nonaccrual Loans | The following table presents information regarding nonaccrual loans as of: March 31, 2022 December 31, 2021 Commercial and industrial $ 139 $ 148 Real estate: Commercial real estate 505 642 Farmland 298 298 1-4 family residential 1,565 1,535 Consumer and overdrafts 116 160 Agricultural 59 48 Total $ 2,682 $ 2,831 |
Summary of Troubled Debt Restructuring | The following table presents loans, by class, modified as TDRs during the year ended December 31, 2021: Year Ended December 31, 2021 Number Pre-Modification Post-Modification Troubled Debt Restructurings: Commercial and industrial 1 17 14 Total 1 $ 17 $ 14 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Maturities | Fixed rate advances, with monthly interest payments, principal due in: Year Current Principal Due 2022 1.99 % $ 1,500 2024 1.76 % 6,000 $ 7,500 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Debt and Other Debentures | Subordinated debt was made up of the following as of: March 31, 2022 December 31, 2021 Trust II Debentures $ 3,093 $ 3,093 Trust III Debentures 2,062 2,062 DCB Trust I Debentures 5,155 5,155 Subordinated note 34,336 — Other debentures 9,500 9,500 $ 54,146 $ 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 the subordinated note and Other Debentures | The scheduled principal payments and weighted average rates of the subordinated note and other debentures are as follows: Year Current Principal Due 2022 2.45 % $ 2,000 2023 2.85 % 3,500 2024 3.74 % 4,000 Thereafter 3.63 % 34,336 $ 43,836 |
EQUITY AWARDS (Tables)
EQUITY AWARDS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of stock option activity in the Plan during the three months ended March 31, 2022 and 2021 follows: Three Months Ended March 31, 2022 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 502,780 $ 25.77 5.59 $ 5,936 Granted 39,000 35.89 Forfeited ( 5,060 ) 26.92 Balance, March 31, 2022 536,720 $ 26.50 5.65 $ 4,626 Exercisable at end of period 307,086 $ 24.30 4.28 $ 3,285 Three Months Ended March 31, 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 24,500 33.37 Exercised ( 24,250 ) 21.74 Forfeited ( 10,000 ) 28.54 Balance, March 31, 2021 547,220 $ 24.81 5.88 $ 6,532 Exercisable at end of period 296,922 $ 23.49 4.64 $ 3,938 |
Schedule of Nonvested Stock Option Activity | A summary of nonvested stock option activity in the Plan during the three months ended March 31, 2022 and 2021 follows: Three Months Ended March 31, 2022 Number of Weighted-Average Outstanding at beginning of year 207,084 $ 5.23 Granted 39,000 6.03 Vested ( 14,030 ) 5.21 Forfeited ( 2,420 ) 9.13 Balance, March 31, 2022 229,634 $ 5.38 Three Months Ended March 31, 2021 Number of Weighted-Average Outstanding at beginning of year 214,680 $ 4.46 Effect of 10 % stock dividend 23,218 Granted 24,500 5.67 Vested ( 12,100 ) 4.59 Balance, March 31, 2021 250,298 $ 5.11 |
Plan Information | Information related to stock options in the Plan is as follows for the three months ended: March 31, 2022 March 31, 2021 Intrinsic value of options exercised $ — $ 364 Cash received from options exercised — 527 Weighted average fair value of options granted 6.03 5.67 |
Summary of Restricted Stock Awards and Units Activity | A summary of restricted stock activity in the Plan during the three months ended March 31, 2022 and 2021 follows: Three Months Ended March 31, 2022 Number of Weighted-Average Outstanding at beginning of year 30,190 $ 27.52 Vested ( 4,070 ) 27.50 Balance, March 31, 2022 26,120 $ 27.52 Three Months Ended March 31, 2021 Number of Weighted-Average Outstanding at beginning of year 35,300 $ 29.72 Effect of 10 % stock dividend 3,530 Vested ( 4,840 ) 30.25 Balance, March 31, 2021 33,990 $ 26.95 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Summarizes Other Information Related to Operating Leases | The table below summarizes other information related to our operating leases as of: March 31, 2022 December 31, 2021 Operating leases Operating lease right-of-use assets $ 13,911 $ 14,376 Operating lease liabilities 14,477 14,882 Weighted average remaining lease term Operating leases 8 years 8 years Weighted average discount rate Operating leases 1.96 % 1.95 % |
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 March 31, 2022, are as follows: Year Ended December 31, Amount 2022 $ 1,606 2023 2,093 2024 2,039 2025 1,870 2026 1,642 Thereafter 5,874 Total lease payments 15,124 Less: interest ( 647 ) Present value of lease liabilities $ 14,477 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense and Effective Tax Rate | Income tax expense was as follows for: Three Months Ended 2022 2021 Income tax expense for the period $ 2,235 $ 2,336 Effective tax rate 17.23 % 17.57 % |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 December 31, 2021 Commitments to extend credit $ 426,745 $ 405,269 Letters of credit 9,421 8,357 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Total capital to risk-weighted assets: Consolidated $ 339,743 15.89 % $ 171,045 8.00 % $ 224,496 10.50 % n/a Bank 324,424 15.17 % 171,045 8.00 % 224,496 10.50 % $ 213,806 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 278,653 13.03 % 128,283 6.00 % 181,735 8.50 % n/a Bank 297,670 13.92 % 128,283 6.00 % 181,735 8.50 % 171,045 8.00 % Tier 1 capital to average assets: (1) Consolidated 278,653 8.99 % 123,998 4.00 % 123,998 4.00 % n/a Bank 297,670 9.60 % 123,967 4.00 % 123,967 4.00 % 154,959 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 268,343 12.55 % 96,213 4.50 % 149,664 7.00 % n/a Bank 297,670 13.92 % 96,213 4.50 % 149,664 7.00 % 138,974 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, 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. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 Fair Value Quoted Significant Significant Assets at fair value on a recurring basis: Available for sale securities: Treasury securities $ — $ — $ — $ — Mortgage-backed securities 197,892 — 197,892 — Collateralized mortgage obligations 65,035 — 65,035 — Municipal securities — — — — Corporate bonds 34,496 — 34,496 — U.S. government agencies 9,281 — 9,281 — Loans held for sale 1,166 — — 1,166 Cash surrender value of life insurance 37,352 — 37,352 — SBA servicing assets 1,004 — — 1,004 Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 4,217 — — 4,217 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 — Municipal securities — — — — 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 |
Schedule of Individually Evaluated Collateral Dependent Loans at Fair Value | The following table presents information on individually evaluated collateral dependent loans as of March 31, 2022: Fair Value Measurements Using March 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ 475 $ 475 Real estate: Construction and development — — — — Commercial real estate — — 3,742 3,742 Total $ — $ — $ 4,217 $ 4,217 |
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 March 31, 2022 and December 31, 2021, 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 $ 222,091 $ 222,091 $ — $ — $ 222,091 Marketable securities held to maturity 494,289 — 490,523 — 490,523 Loans, net 1,983,449 — — 1,951,997 1,951,997 Accrued interest receivable 8,961 — 8,961 — 8,961 Nonmarketable equity securities 12,513 — 12,513 — 12,513 Financial liabilities: Deposits $ 2,797,410 $ 2,473,118 $ 324,626 $ — $ 2,797,744 Securities sold under repurchase agreements 11,090 — 11,090 — 11,090 Accrued interest payable 591 — 591 — 591 Federal Home Loan Bank advances 7,500 — 7,494 — 7,494 Subordinated debt 54,146 — 52,190 — 52,190 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 debt 19,810 — 17,833 — 17,833 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 for the: Quarter Ended 2022 2021 Numerator: Net earnings (basic) $ 10,738 $ 10,962 Net earnings (diluted) $ 10,738 $ 10,962 Denominator: Weighted-average shares outstanding (basic) 12,109,074 12,038,638 Effect of dilutive securities: Common stock equivalent shares from stock options 151,871 139,138 Weighted-average shares outstanding (diluted) 12,260,945 12,177,776 Net earnings per share Basic $ 0.89 $ 0.91 Diluted $ 0.88 $ 0.90 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | May 02, 2022 | Apr. 21, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||||
Subordinated debt | $ 54,146 | $ 19,810 | ||
Repurchase of Common Stock | 1,000,000 | |||
Decrease to retained earnings | 115,727 | 107,645 | ||
Trust II Debentures | ||||
Property, Plant and Equipment [Line Items] | ||||
Subordinated debt | $ 3,093 | $ 3,093 | $ 3,093 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | $ 326,646 | $ 341,628 |
Gross Unrealized Gain | 279 | 3,388 |
Gross Unrealized Loss | 20,221 | 2,810 |
Estimated Fair Value | 306,704 | 342,206 |
Held to maturity: | ||
Amortized Cost | 494,289 | 184,263 |
Gross Unrealized Gains | 1,997 | 8,364 |
Gross Unrealized Losses | 5,763 | 155 |
Estimated Fair Value | 490,523 | 192,472 |
U.S. government agencies | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 10,012 | 10,013 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 731 | 42 |
Estimated Fair Value | 9,281 | 9,971 |
Corporate bonds | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 35,055 | 35,080 |
Gross Unrealized Gain | 86 | 940 |
Gross Unrealized Loss | 645 | 85 |
Estimated Fair Value | 34,496 | 35,935 |
Mortgage-backed securities | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 212,489 | 221,610 |
Gross Unrealized Gain | 131 | 1,477 |
Gross Unrealized Loss | 14,728 | 1,779 |
Estimated Fair Value | 197,892 | 221,308 |
Held to maturity: | ||
Amortized Cost | 32,287 | 2,953 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,534 | 37 |
Estimated Fair Value | 30,753 | 2,916 |
Collateralized mortgage obligations | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 69,090 | 74,925 |
Gross Unrealized Gain | 62 | 971 |
Gross Unrealized Loss | 4,117 | 904 |
Estimated Fair Value | 65,035 | 74,992 |
Municipal securities | ||
Held to maturity: | ||
Amortized Cost | 190,904 | 181,310 |
Gross Unrealized Gains | 1,997 | 8,364 |
Gross Unrealized Losses | 3,060 | 118 |
Estimated Fair Value | 189,841 | $ 189,556 |
Treasury securities | ||
Held to maturity: | ||
Amortized Cost | 271,098 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 1,169 | |
Estimated Fair Value | $ 269,929 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)SecurityPosition | Mar. 31, 2021Security | Dec. 31, 2021USD ($) | |
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 | 152 | ||
Number of investment in an sale debt securities | Position | 79 | ||
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 | $ 349,612,000 | 310,958,000 | |
Number of securities sold | Security | 0 | 0 | |
Accumulated Other Comprehensive Income Loss | $ 8,084,000 | $ 8,860,000 |
MARKETABLE SECURITIES - Securit
MARKETABLE SECURITIES - Securities in Continuous Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Gross Unrealized Losses | ||
Less Than 12 Months | $ (5,036) | $ (74) |
12 Months or Longer | 727 | 81 |
Total | (5,763) | (155) |
Estimated Fair Value | ||
Less Than 12 Months | 342,644 | 10,688 |
12 Months or Longer | 2,347 | 2,996 |
Total | 344,991 | 13,684 |
Gross Unrealized Losses | ||
Less Than 12 Months | (17,778) | (2,414) |
12 Months or Longer | (2,443) | (396) |
Total | (20,221) | (2,810) |
Estimated Fair Value | ||
Less Than 12 Months | 256,694 | 205,928 |
12 Months or Longer | 22,846 | 11,317 |
Total | 279,540 | 217,245 |
U.S. government agencies | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (731) | (42) |
12 Months or Longer | 0 | |
Total | (731) | (42) |
Estimated Fair Value | ||
Less Than 12 Months | 9,281 | 9,971 |
12 Months or Longer | 0 | |
Total | 9,281 | 9,971 |
Corporate bonds | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (645) | (85) |
12 Months or Longer | 0 | |
Total | (645) | (85) |
Estimated Fair Value | ||
Less Than 12 Months | 23,336 | 11,418 |
12 Months or Longer | 0 | |
Total | 23,336 | 11,418 |
Mortgage-backed securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (1,534) | (37) |
12 Months or Longer | 0 | 0 |
Total | (1,534) | (37) |
Estimated Fair Value | ||
Less Than 12 Months | 30,753 | 2,916 |
12 Months or Longer | 0 | 0 |
Total | 30,753 | 2,916 |
Gross Unrealized Losses | ||
Less Than 12 Months | (12,285) | (1,383) |
12 Months or Longer | (2,443) | (396) |
Total | (14,728) | (1,779) |
Estimated Fair Value | ||
Less Than 12 Months | 168,057 | 144,367 |
12 Months or Longer | 22,846 | 11,317 |
Total | 190,903 | 155,684 |
Collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (4,117) | (904) |
12 Months or Longer | 0 | 0 |
Total | (4,117) | (904) |
Estimated Fair Value | ||
Less Than 12 Months | 56,020 | 40,172 |
12 Months or Longer | 0 | 0 |
Total | 56,020 | 40,172 |
Municipal securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (2,333) | (37) |
12 Months or Longer | 727 | 81 |
Total | (3,060) | (118) |
Estimated Fair Value | ||
Less Than 12 Months | 41,962 | 7,772 |
12 Months or Longer | 2,347 | 2,996 |
Total | 44,309 | $ 10,768 |
US Treasury Securities [Member] | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (1,169) | |
12 Months or Longer | 0 | |
Total | (1,169) | |
Estimated Fair Value | ||
Less Than 12 Months | 269,929 | |
12 Months or Longer | 0 | |
Total | $ 269,929 |
MARKETABLE SECURITIES - Contrac
MARKETABLE SECURITIES - Contractual Maturities of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due within one year | $ 0 | |
Due after one year through five years | 14,620 | |
Due after five years through ten years | 30,447 | |
Due after ten years | 0 | |
Available-for-sale debt securities, amortized cost basis | 326,646 | $ 341,628 |
Estimated Fair Value | ||
Due within one year | 0 | |
Due after one year through five years | 14,647 | |
Due after five years through ten years | 29,130 | |
Due after ten years | 0 | |
Available-for-sale debt securities, estimated fair value | 306,704 | 342,206 |
Held to Maturity Amortized Cost | ||
Due within one year | 233,817 | |
Due after one year through five years | 98,824 | |
Due after five years through ten years | 53,743 | |
Due after ten years | 75,618 | |
Held to Maturity debt securities, amortized cost | 494,289 | 184,263 |
Held to Maturity Estimated Fair Value | ||
Due within one year | 233,217 | |
Due after one year through five years | 98,980 | |
Due after five years through ten years | 53,495 | |
Due after ten years | 74,078 | |
Held to maturity debt securities, estimated fair value | 490,523 | 192,472 |
Mortgage-backed securities | ||
Amortized Cost | ||
Available-for-sale debt securities, amortized cost basis | 212,489 | |
Available-for-sale debt securities, amortized cost basis | 212,489 | 221,610 |
Estimated Fair Value | ||
Available-for-sale debt securities, estimated fair value | 197,892 | |
Available-for-sale debt securities, estimated fair value | 197,892 | 221,308 |
Held to Maturity Amortized Cost | ||
Held to Maturity debt securities, amortized cost | 32,287 | |
Held to Maturity debt securities, amortized cost | 32,287 | 2,953 |
Held to Maturity Estimated Fair Value | ||
Held to maturity debt securities, estimated fair value | 30,753 | |
Held to maturity debt securities, estimated fair value | 30,753 | 2,916 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Available-for-sale debt securities, amortized cost basis | 69,090 | |
Available-for-sale debt securities, amortized cost basis | 69,090 | 74,925 |
Estimated Fair Value | ||
Available-for-sale debt securities, estimated fair value | 65,035 | |
Available-for-sale debt securities, estimated fair value | 65,035 | $ 74,992 |
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 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans held for investment: | ||||
Total loans | $ 2,014,061 | $ 1,908,040 | ||
Deferred loan fees, net | (1,516) | (1,531) | ||
Allowance for credit losses | (29,096) | (30,433) | $ (32,770) | $ (33,619) |
Total net loans | 1,983,449 | 1,876,076 | ||
Commercial and industrial | ||||
Loans held for investment: | ||||
Total loans | 270,074 | 280,569 | ||
Allowance for credit losses | (3,750) | (3,600) | (3,529) | (4,033) |
Construction and development | ||||
Loans held for investment: | ||||
Total loans | 318,035 | 307,797 | ||
Allowance for credit losses | (3,898) | (4,221) | (4,198) | (4,735) |
Commercial real estate | ||||
Loans held for investment: | ||||
Total loans | 674,558 | 622,842 | ||
Allowance for credit losses | (12,197) | (13,765) | (16,109) | (15,780) |
Farmland | ||||
Loans held for investment: | ||||
Total loans | 186,982 | 145,501 | ||
Allowance for credit losses | (2,000) | (1,698) | (1,057) | (1,220) |
1-4 family residential | ||||
Loans held for investment: | ||||
Total loans | 430,755 | 410,673 | ||
Allowance for credit losses | (5,729) | (5,818) | (6,326) | (6,313) |
Multi-family residential | ||||
Loans held for investment: | ||||
Total loans | 42,021 | 30,971 | ||
Allowance for credit losses | (456) | (396) | (496) | (363) |
Consumer | ||||
Loans held for investment: | ||||
Total loans | 52,670 | 50,965 | ||
Allowance for credit losses | (907) | (762) | (843) | (929) |
Agricultural | ||||
Loans held for investment: | ||||
Total loans | 14,403 | 14,639 | ||
Allowance for credit losses | (156) | (169) | (208) | (239) |
Warehouse lending | ||||
Loans held for investment: | ||||
Total loans | 24,260 | 43,720 | ||
Overdrafts | ||||
Loans held for investment: | ||||
Total loans | 303 | 363 | ||
Allowance for credit losses | $ (3) | $ (4) | $ (4) | $ (7) |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Accrued interest receivable on loans | $ 5.8 | $ 5.8 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2022USD ($) | Mar. 31, 2022USD ($)Contract | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)Contract | Dec. 31, 2020USD ($) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Allowance for credit losses provision | $ (1,250,000) | $ 0 | |||||
Additional reverse provision | $ 1,250,000 | ||||||
Loans classified in doubtful or loss risk rating | $ 0 | $ 0 | |||||
Number of loans modified as TDRs | Contract | 0 | 1 | |||||
Increase in allowance for loan losses due to TDRs | $ 0 | ||||||
Troubled debt restructuring charge-offs | $ 0 | ||||||
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 Allowance for Credit Losses Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Allowance for credit losses: | |||
Beginning balance | $ 30,433 | $ 33,619 | $ 33,619 |
(Reversal of) provision for credit losses | (1,250) | 0 | (1,700) |
Loans charged-off | (203) | (875) | (1,641) |
Recoveries | 116 | 26 | 155 |
Ending balance | 29,096 | 32,770 | 30,433 |
Commercial and industrial | |||
Allowance for credit losses: | |||
Beginning balance | 3,600 | 4,033 | 4,033 |
(Reversal of) provision for credit losses | 230 | (504) | (43) |
Loans charged-off | (119) | (7) | (411) |
Recoveries | 39 | 7 | 21 |
Ending balance | 3,750 | 3,529 | 3,600 |
Construction and development | |||
Allowance for credit losses: | |||
Beginning balance | 4,221 | 4,735 | 4,735 |
(Reversal of) provision for credit losses | (323) | (538) | (515) |
Loans charged-off | 0 | 0 | |
Recoveries | 0 | 1 | 1 |
Ending balance | 3,898 | 4,198 | 4,221 |
Commercial real estate | |||
Allowance for credit losses: | |||
Beginning balance | 13,765 | 15,780 | 15,780 |
(Reversal of) provision for credit losses | (1,569) | 1,087 | (1,229) |
Loans charged-off | 0 | (758) | (816) |
Recoveries | 1 | 30 | |
Ending balance | 12,197 | 16,109 | 13,765 |
Farmland | |||
Allowance for credit losses: | |||
Beginning balance | 1,698 | 1,220 | 1,220 |
(Reversal of) provision for credit losses | 302 | (163) | 478 |
Loans charged-off | 0 | 0 | |
Ending balance | 2,000 | 1,057 | 1,698 |
1-4 family residential | |||
Allowance for credit losses: | |||
Beginning balance | 5,818 | 6,313 | 6,313 |
(Reversal of) provision for credit losses | (119) | 13 | (495) |
Loans charged-off | 0 | 0 | |
Recoveries | 30 | 0 | 0 |
Ending balance | 5,729 | 6,326 | 5,818 |
Multi-family residential | |||
Allowance for credit losses: | |||
Beginning balance | 396 | 363 | 363 |
(Reversal of) provision for credit losses | 60 | 133 | 33 |
Loans charged-off | 0 | 0 | |
Ending balance | 456 | 496 | 396 |
Consumer | |||
Allowance for credit losses: | |||
Beginning balance | 762 | 929 | 929 |
(Reversal of) provision for credit losses | 146 | (29) | (51) |
Loans charged-off | (17) | (61) | (151) |
Recoveries | 16 | 4 | 35 |
Ending balance | 907 | 843 | 762 |
Agricultural | |||
Allowance for credit losses: | |||
Beginning balance | 169 | 239 | 239 |
(Reversal of) provision for credit losses | (13) | (31) | (78) |
Loans charged-off | 0 | 0 | |
Recoveries | 0 | 8 | |
Ending balance | 156 | 208 | 169 |
Overdrafts | |||
Allowance for credit losses: | |||
Beginning balance | 4 | 7 | 7 |
(Reversal of) provision for credit losses | 36 | 32 | 200 |
Loans charged-off | (67) | (49) | (263) |
Recoveries | 30 | 14 | 60 |
Ending balance | $ 3 | $ 4 | $ 4 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Credit Exposure in Company Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | $ 255,323 | $ 763,835 |
Credit Exposure 2021 | 676,489 | 296,556 |
Credit Exposure 2020 | 271,260 | 181,846 |
Credit Exposure 2019 | 167,230 | 133,356 |
Credit Exposure 2018 | 124,816 | 107,292 |
Credit Exposure Prior | 373,371 | 294,966 |
Revolving Loans Amortized Cost | 145,572 | 130,189 |
Total | 2,014,061 | 1,908,040 |
Credit Exposure 2022.Charge - offs | (68) | (285) |
Credit Exposure 2021.Charge - offs | (6) | (36) |
Credit Exposure 2020.Charge - offs | (40) | (242) |
Credit Exposure 2019.Charge - offs | (155) | |
Credit Exposure 2018.Charge - offs | (589) | |
Credit Exposure Prior.Charge - offs | (273) | |
Credit Exposure Revolving Loans Amortized Cost.Charge - offs | (89) | (61) |
Total | (203) | (1,641) |
Credit Exposure 2022, Recoveries | 30 | 61 |
Credit Exposure 2021, Recoveries | 1 | 3 |
Credit Exposure 2020, Recoveries | 19 | |
Credit Exposure 2019, Recoveries | 10 | 8 |
Credit Exposure 2018, Recoveries | 1 | 13 |
Credit Exposure Prior, Recoveries | 68 | 30 |
Credit Exposure Revolving Loans Amortized Cost, Recoveries | 6 | 21 |
Total | 116 | 155 |
Credit Exposure 2022,Current period net | (38) | (224) |
Credit Exposure 2021,Current period net | (5) | (33) |
Credit Exposure 2020,Current period net | (40) | (223) |
Credit Exposure 2019,Current period net | 10 | (147) |
Credit Exposure 2018,Current period net | 1 | (576) |
Credit Exposure Prior,Current period net | 68 | (243) |
Credit Exposure Revolving Loans Amortized Cost,Current period net | (83) | (40) |
Total | (87) | (1,486) |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 255,323 | 763,519 |
Credit Exposure 2021 | 676,078 | 288,107 |
Credit Exposure 2020 | 269,889 | 181,039 |
Credit Exposure 2019 | 166,332 | 122,765 |
Credit Exposure 2018 | 114,363 | 88,616 |
Credit Exposure Prior | 339,546 | 279,890 |
Revolving Loans Amortized Cost | 145,287 | 130,109 |
Total | 1,966,818 | 1,854,045 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 76 | |
Credit Exposure 2021 | 165 | 853 |
Credit Exposure 2020 | 820 | 5 |
Credit Exposure 2019 | 95 | |
Credit Exposure 2018 | 8,921 | 5,521 |
Credit Exposure Prior | 14,556 | 832 |
Revolving Loans Amortized Cost | 250 | |
Total | 24,807 | 7,287 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 7,273 | |
Credit Exposure 2020 | 279 | 668 |
Credit Exposure 2019 | 662 | 10,250 |
Credit Exposure 2018 | 1,259 | 13,060 |
Credit Exposure Prior | 17,554 | 12,626 |
Revolving Loans Amortized Cost | ||
Total | 19,754 | 43,877 |
Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 240 | |
Credit Exposure 2021 | 246 | 323 |
Credit Exposure 2020 | 272 | 134 |
Credit Exposure 2019 | 141 | 341 |
Credit Exposure 2018 | 273 | 95 |
Credit Exposure Prior | 1,715 | 1,618 |
Revolving Loans Amortized Cost | 35 | 80 |
Total | 2,682 | 2,831 |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 42,707 | 176,986 |
Credit Exposure 2021 | 97,124 | 31,798 |
Credit Exposure 2020 | 28,322 | 16,262 |
Credit Exposure 2019 | 15,568 | 6,663 |
Credit Exposure 2018 | 6,130 | 3,547 |
Credit Exposure Prior | 16,342 | 14,669 |
Revolving Loans Amortized Cost | 88,141 | 74,364 |
Total | 294,334 | 324,289 |
Credit Exposure 2020.Charge - offs | (30) | (168) |
Credit Exposure 2019.Charge - offs | (67) | |
Credit Exposure 2018.Charge - offs | (115) | |
Credit Exposure Revolving Loans Amortized Cost.Charge - offs | (89) | (61) |
Total | (119) | (411) |
Credit Exposure Prior, Recoveries | 33 | |
Credit Exposure Revolving Loans Amortized Cost, Recoveries | 6 | 21 |
Total | 39 | 21 |
Credit Exposure 2020,Current period net | (30) | (168) |
Credit Exposure 2019,Current period net | (67) | |
Credit Exposure 2018,Current period net | (115) | |
Credit Exposure Prior,Current period net | 33 | |
Credit Exposure Revolving Loans Amortized Cost,Current period net | (83) | (40) |
Total | (80) | (390) |
Commercial and industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 42,707 | 176,972 |
Credit Exposure 2021 | 96,935 | 31,337 |
Credit Exposure 2020 | 27,986 | 16,207 |
Credit Exposure 2019 | 14,909 | 6,449 |
Credit Exposure 2018 | 5,920 | 3,493 |
Credit Exposure Prior | 16,305 | 14,657 |
Revolving Loans Amortized Cost | 88,106 | 74,364 |
Total | 292,868 | 323,479 |
Commercial and industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 156 | 88 |
Credit Exposure 2018 | 14 | |
Total | 156 | 102 |
Commercial and industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 272 | |
Credit Exposure 2020 | 265 | 55 |
Credit Exposure 2019 | 659 | 192 |
Credit Exposure 2018 | 210 | 40 |
Credit Exposure Prior | 37 | 1 |
Total | 1,171 | 560 |
Commercial and industrial | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 14 | |
Credit Exposure 2021 | 33 | 101 |
Credit Exposure 2020 | 71 | |
Credit Exposure 2019 | 22 | |
Credit Exposure Prior | 11 | |
Revolving Loans Amortized Cost | 35 | |
Total | 139 | 148 |
Construction and development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 42,538 | 180,056 |
Credit Exposure 2021 | 176,595 | 68,765 |
Credit Exposure 2020 | 49,089 | 21,108 |
Credit Exposure 2019 | 18,242 | 6,509 |
Credit Exposure 2018 | 6,120 | 9,179 |
Credit Exposure Prior | 19,491 | 13,565 |
Revolving Loans Amortized Cost | 5,960 | 8,615 |
Total | 318,035 | 307,797 |
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 2022 | 42,538 | 180,056 |
Credit Exposure 2021 | 176,595 | 68,765 |
Credit Exposure 2020 | 48,275 | 20,499 |
Credit Exposure 2019 | 18,242 | 6,507 |
Credit Exposure 2018 | 6,119 | 8,235 |
Credit Exposure Prior | 18,559 | 13,565 |
Revolving Loans Amortized Cost | 5,960 | 8,615 |
Total | 316,288 | 306,242 |
Construction and development | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 0 | |
Credit Exposure 2020 | 814 | |
Credit Exposure 2018 | 0 | 944 |
Credit Exposure Prior | 932 | |
Total | 1,746 | 944 |
Construction and development | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 0 | 609 |
Credit Exposure 2019 | 0 | 2 |
Credit Exposure 2018 | 1 | |
Total | 1 | 611 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 67,507 | 134,617 |
Credit Exposure 2021 | 137,731 | 101,558 |
Credit Exposure 2020 | 104,126 | 80,857 |
Credit Exposure 2019 | 76,201 | 69,490 |
Credit Exposure 2018 | 67,158 | 61,020 |
Credit Exposure Prior | 204,960 | 159,155 |
Revolving Loans Amortized Cost | 16,875 | 16,145 |
Total | 674,558 | 622,842 |
Credit Exposure 2020.Charge - offs | (17) | |
Credit Exposure 2019.Charge - offs | (56) | |
Credit Exposure 2018.Charge - offs | (472) | |
Credit Exposure Prior.Charge - offs | (271) | |
Total | (816) | |
Credit Exposure 2020, Recoveries | 19 | |
Credit Exposure 2018, Recoveries | 1 | 11 |
Total | 1 | 30 |
Credit Exposure 2020,Current period net | 2 | |
Credit Exposure 2019,Current period net | (56) | |
Credit Exposure 2018,Current period net | 1 | (461) |
Credit Exposure Prior,Current period net | (271) | |
Total | 1 | (786) |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 67,507 | 134,617 |
Credit Exposure 2021 | 137,731 | 93,806 |
Credit Exposure 2020 | 104,126 | 80,733 |
Credit Exposure 2019 | 76,086 | 59,380 |
Credit Exposure 2018 | 57,139 | 43,457 |
Credit Exposure Prior | 173,813 | 145,477 |
Revolving Loans Amortized Cost | 16,875 | 16,065 |
Total | 633,277 | 573,535 |
Commercial real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 0 | |
Credit Exposure 2021 | 765 | |
Credit Exposure 2020 | 0 | |
Credit Exposure 2019 | 0 | |
Credit Exposure 2018 | 8,921 | 4,550 |
Credit Exposure Prior | 13,406 | 788 |
Total | 22,327 | 6,103 |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 0 | 6,987 |
Credit Exposure 2020 | 0 | 0 |
Credit Exposure 2019 | 0 | 10,041 |
Credit Exposure 2018 | 1,034 | 12,981 |
Credit Exposure Prior | 17,415 | 12,553 |
Total | 18,449 | 42,562 |
Commercial real estate | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 0 | 0 |
Credit Exposure 2020 | 124 | |
Credit Exposure 2019 | 115 | 69 |
Credit Exposure 2018 | 64 | 32 |
Credit Exposure Prior | 326 | 337 |
Revolving Loans Amortized Cost | 80 | |
Total | 505 | 642 |
Farmland | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 45,866 | 94,491 |
Credit Exposure 2021 | 92,766 | 12,063 |
Credit Exposure 2020 | 12,681 | 8,664 |
Credit Exposure 2019 | 7,915 | 7,456 |
Credit Exposure 2018 | 7,375 | 5,191 |
Credit Exposure Prior | 11,346 | |
Revolving Loans Amortized Cost | 5,914 | 6,290 |
Total | 186,982 | 145,501 |
Credit Exposure Prior,Current period net | 14,465 | |
Farmland | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 45,866 | 94,491 |
Credit Exposure 2021 | 92,766 | 11,868 |
Credit Exposure 2020 | 12,486 | 8,664 |
Credit Exposure 2019 | 7,915 | 7,456 |
Credit Exposure 2018 | 7,375 | 5,191 |
Credit Exposure Prior | 14,292 | 11,145 |
Revolving Loans Amortized Cost | 5,914 | 6,290 |
Total | 186,614 | 145,105 |
Farmland | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure Prior | 26 | |
Total | 26 | |
Farmland | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure Prior | 70 | 72 |
Total | 70 | 72 |
Farmland | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 195 | 195 |
Credit Exposure Prior | 103 | 103 |
Revolving Loans Amortized Cost | 0 | |
Total | 298 | 298 |
1-4 family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 35,231 | 132,618 |
Credit Exposure 2021 | 132,103 | 64,590 |
Credit Exposure 2020 | 63,134 | 43,016 |
Credit Exposure 2019 | 38,347 | 36,681 |
Credit Exposure 2018 | 32,316 | 27,045 |
Credit Exposure Prior | 113,957 | 93,009 |
Revolving Loans Amortized Cost | 15,667 | 13,714 |
Total | 430,755 | 410,673 |
Credit Exposure Prior, Recoveries | 30 | |
Total | 30 | |
Credit Exposure Prior,Current period net | 30 | |
Total | 30 | |
1-4 family residential | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 35,231 | 132,448 |
Credit Exposure 2021 | 131,940 | 64,590 |
Credit Exposure 2020 | 63,134 | 43,016 |
Credit Exposure 2019 | 38,256 | 36,501 |
Credit Exposure 2018 | 32,144 | 26,987 |
Credit Exposure Prior | 112,524 | 91,864 |
Revolving Loans Amortized Cost | 15,667 | 13,714 |
Total | 428,896 | 409,120 |
1-4 family residential | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2019 | 91 | |
Credit Exposure Prior | 203 | 18 |
Total | 294 | 18 |
1-4 family residential | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 170 | |
Credit Exposure 2021 | 163 | |
Credit Exposure 2020 | 0 | |
Credit Exposure 2019 | 180 | |
Credit Exposure 2018 | 172 | 58 |
Credit Exposure Prior | 1,230 | 1,127 |
Total | 1,565 | 1,535 |
Multi-family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 12,469 | 16,663 |
Credit Exposure 2021 | 16,723 | 4,286 |
Credit Exposure 2020 | 2,742 | 6,436 |
Credit Exposure 2019 | 6,385 | 908 |
Credit Exposure 2018 | 900 | 474 |
Credit Exposure Prior | 2,501 | 2,113 |
Revolving Loans Amortized Cost | 301 | 91 |
Total | 42,021 | 30,971 |
Multi-family residential | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 12,469 | 16,663 |
Credit Exposure 2021 | 16,723 | 4,286 |
Credit Exposure 2020 | 2,742 | 6,436 |
Credit Exposure 2019 | 6,385 | 908 |
Credit Exposure 2018 | 900 | 474 |
Credit Exposure Prior | 2,501 | 2,113 |
Revolving Loans Amortized Cost | 301 | 91 |
Total | 42,021 | 30,971 |
Multi-family residential | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure Prior, Recoveries | 0 | |
Total | 0 | |
Consumer and Overdrafts | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 8,612 | 24,847 |
Credit Exposure 2021 | 20,495 | 11,616 |
Credit Exposure 2020 | 9,563 | 4,572 |
Credit Exposure 2019 | 3,739 | 4,709 |
Credit Exposure 2018 | 3,996 | 563 |
Credit Exposure Prior | 943 | 543 |
Revolving Loans Amortized Cost | 5,625 | 4,478 |
Total | 52,973 | 51,328 |
Credit Exposure 2022.Charge - offs | (68) | (285) |
Credit Exposure 2021.Charge - offs | (6) | (36) |
Credit Exposure 2020.Charge - offs | (10) | (57) |
Credit Exposure 2019.Charge - offs | (32) | |
Credit Exposure 2018.Charge - offs | (2) | |
Credit Exposure Prior.Charge - offs | (2) | |
Total | (84) | (414) |
Credit Exposure 2022, Recoveries | 30 | 61 |
Credit Exposure 2021, Recoveries | 1 | 3 |
Credit Exposure 2019, Recoveries | 10 | 8 |
Credit Exposure 2018, Recoveries | 2 | |
Credit Exposure Prior, Recoveries | 5 | 21 |
Total | 46 | 95 |
Credit Exposure 2022,Current period net | (38) | (224) |
Credit Exposure 2021,Current period net | (5) | (33) |
Credit Exposure 2020,Current period net | (10) | (57) |
Credit Exposure 2019,Current period net | 10 | (24) |
Credit Exposure Prior,Current period net | 5 | 19 |
Total | (38) | (319) |
Consumer and Overdrafts | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 8,612 | 24,715 |
Credit Exposure 2021 | 20,436 | 11,589 |
Credit Exposure 2020 | 9,551 | 4,557 |
Credit Exposure 2019 | 3,709 | 4,647 |
Credit Exposure 2018 | 3,965 | 558 |
Credit Exposure Prior | 931 | 543 |
Revolving Loans Amortized Cost | 5,375 | 4,478 |
Total | 52,579 | 51,087 |
Consumer and Overdrafts | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 76 | |
Credit Exposure 2021 | 9 | |
Credit Exposure 2020 | 6 | 5 |
Credit Exposure 2019 | 4 | |
Credit Exposure Prior | 9 | |
Revolving Loans Amortized Cost | 250 | |
Total | 278 | 81 |
Consumer and Overdrafts | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 56 | |
Credit Exposure 2021 | 50 | 27 |
Credit Exposure 2020 | 6 | 10 |
Credit Exposure 2019 | 26 | 62 |
Credit Exposure 2018 | 31 | 5 |
Credit Exposure Prior | 3 | |
Total | 116 | 160 |
Agricultural | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 393 | 3,557 |
Credit Exposure 2021 | 2,952 | 1,880 |
Credit Exposure 2020 | 1,603 | 931 |
Credit Exposure 2019 | 833 | 940 |
Credit Exposure 2018 | 821 | 273 |
Credit Exposure Prior | 712 | 566 |
Revolving Loans Amortized Cost | 7,089 | 6,492 |
Total | 14,403 | 14,639 |
Total | (8) | |
Credit Exposure Prior, Recoveries | 8 | |
Credit Exposure Prior,Current period net | 8 | |
Total | 8 | |
Agricultural | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 393 | 3,557 |
Credit Exposure 2021 | 2,952 | 1,866 |
Credit Exposure 2020 | 1,589 | 927 |
Credit Exposure 2019 | 830 | 917 |
Credit Exposure 2018 | 801 | 221 |
Credit Exposure Prior | 621 | 526 |
Revolving Loans Amortized Cost | 7,089 | 6,492 |
Total | 14,275 | 14,506 |
Agricultural | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2018 | 13 | |
Credit Exposure Prior | 6 | |
Total | 6 | 13 |
Agricultural | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 14 | |
Credit Exposure 2020 | 14 | 4 |
Credit Exposure 2019 | 3 | 15 |
Credit Exposure 2018 | 14 | 39 |
Credit Exposure Prior | 32 | |
Total | 63 | 72 |
Agricultural | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2019 | 8 | |
Credit Exposure 2018 | 6 | |
Credit Exposure Prior | 53 | 40 |
Total | $ 59 | $ 48 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Amortized Cost Basis of Collateral-dependent Loans (Details) - Collateral Dependent Loans - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | $ 5,302 | $ 10,727 |
Allowance for Credit Losses Allocation | 1,085 | 2,300 |
Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 5,302 | 10,727 |
Commercial and industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 757 | 129 |
Allowance for Credit Losses Allocation | 282 | 44 |
Commercial and industrial | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 757 | 129 |
Construction and development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 609 | |
Allowance for Credit Losses Allocation | 208 | |
Construction and development | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 609 | |
Commercial real estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 4,295 | 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 | 4,295 | $ 9,989 |
Consumer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 250 | |
Allowance for Credit Losses Allocation | 250 | |
Consumer | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | $ 250 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Payment Status of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 2,014,061 | $ 1,908,040 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 4,225 | 3,848 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 8,335 | 861 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 582 | 1,157 |
Financial Asset, Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 13,142 | 5,866 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 2,000,919 | 1,902,174 |
Commercial Industrial and Warehouse lending | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 342 | 1,141 |
Total loans | 294,334 | 324,289 |
Commercial Industrial and Warehouse lending | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 223 | 969 |
Commercial Industrial and Warehouse lending | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 38 |
Commercial Industrial and Warehouse lending | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 119 | 134 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 270,074 | 280,569 |
Commercial and industrial | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 293,992 | 323,148 |
Construction and development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 170 | 1,017 |
Total loans | 318,035 | 307,797 |
Construction and development | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 170 | 885 |
Construction and development | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 132 |
Construction and development | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Construction and development | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 317,865 | 306,780 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 7,717 | 710 |
Total loans | 674,558 | 622,842 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 727 | 0 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 6,990 | 360 |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 350 |
Commercial real estate | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 666,841 | 622,132 |
Farmland | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 728 | 396 |
Total loans | 186,982 | 145,501 |
Farmland | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 100 | 114 |
Farmland | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 433 | 87 |
Farmland | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 195 | 195 |
Farmland | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 186,254 | 145,105 |
1-4 family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 3,533 | 2,183 |
Total loans | 430,755 | 410,673 |
1-4 family residential | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 2,674 | 1,650 |
1-4 family residential | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 625 | 123 |
1-4 family residential | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 234 | 410 |
1-4 family residential | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 427,222 | 408,490 |
Multi-family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Total loans | 42,021 | 30,971 |
Multi-family residential | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Multi-family residential | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Multi-family residential | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Multi-family residential | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 42,021 | 30,971 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 547 | 370 |
Total loans | 52,670 | 50,965 |
Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 226 | 189 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 287 | 113 |
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 34 | 68 |
Consumer | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 52,123 | 50,595 |
Agricultural | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 105 | 49 |
Total loans | 14,403 | 14,639 |
Agricultural | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 105 | 41 |
Agricultural | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 8 |
Agricultural | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Agricultural | Financial Asset, Not Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 14,298 | 14,590 |
Overdrafts | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | |
Total loans | 303 | 363 |
Overdrafts | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Overdrafts | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | |
Overdrafts | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
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 | $ 303 | $ 363 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 2,682 | $ 2,831 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 139 | 148 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 505 | 642 |
Farmland | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 298 | 298 |
1-4 family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,565 | 1,535 |
Consumer and Overdrafts | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 116 | 160 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 59 | $ 48 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022Contract | Dec. 31, 2021USD ($)Contract | |
Troubled Debt Restructurings: | ||
Number of Contracts | Contract | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 17 | |
Post-Modification Outstanding Recorded Investment | $ 14 | |
Commercial and industrial | ||
Troubled Debt Restructurings: | ||
Number of Contracts | Contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 17 | |
Post-Modification Outstanding Recorded Investment | $ 14 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Securities sold under agreements to repurchase | $ 11,090 | $ 14,151 |
Long-term line of credit | 0 | 5,000 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | 25,000 | |
Long-term line of credit | $ 0 | $ 5,000 |
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 | 3.50% |
SECURITIES SOLD UNDER AGREEME_4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT - Summary of Fixed-Rate Advances (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Federal Home Loan Bank advances | $ 7,500 | $ 47,500 |
Fixed-rate Advances, With Monthly Interest Payments | ||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
2022 (percent) | 1.99% | |
2024 (percent) | 1.76% | |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2022 | $ 1,500 | |
2025 | 6,000 | |
Federal Home Loan Bank advances | $ 7,500 |
SUBORDINATED DEBT - Schedule of
SUBORDINATED DEBT - Schedule of Subordinated Debt (Details) - USD ($) $ in Thousands | May 02, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Subordinated debt | $ 54,146 | $ 19,810 | |
Trust II Debentures | |||
Debt Instrument [Line Items] | |||
Subordinated debt | $ 3,093 | 3,093 | 3,093 |
Trust III Debentures | |||
Debt Instrument [Line Items] | |||
Subordinated debt | 2,062 | 2,062 | |
DCB Trust I Debentures | |||
Debt Instrument [Line Items] | |||
Subordinated debt | 5,155 | 5,155 | |
Subordinated Note | |||
Debt Instrument [Line Items] | |||
Subordinated debt | 34,336 | 0 | |
Other debentures | |||
Debt Instrument [Line Items] | |||
Subordinated debt | $ 9,500 | $ 9,500 |
SUBORDINATED DEBT - Narrative (
SUBORDINATED DEBT - Narrative (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 | Mar. 31, 2022 | Mar. 04, 2022 |
Debt Instrument [Line Items] | ||||
Liquidation value per share | $ 1,000 | |||
Debentures mature date | 30 years | |||
Private placement | $ 35,000 | |||
Fixed Interest rate per year | 3.625% | |||
Long-term Debt | $ 43,836 | |||
Subordinated debentures | ||||
Debt Instrument [Line Items] | ||||
Debt issuance cost | 664 | |||
Subordinated debentures | Trust II Debentures | ||||
Debt Instrument [Line Items] | ||||
Debenture issued | $ 3,093 | |||
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 interest rate | 1.00% | |||
Subordinated debentures | Other Debentures Issued in December 2015 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated 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 DEBT - Schedule _2
SUBORDINATED DEBT - Schedule of Trusts (Details) $ in Thousands | Mar. 31, 2022USD ($)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 DEBT- Schedule of
SUBORDINATED DEBT- Schedule of Terms of Subordinated Debentures (Details) - Subordinated debentures $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Trust II Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 3,093 |
Maturity date | Oct. 30, 2032 |
Interest due | Quarterly |
Trust III Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 2,062 |
Maturity date | Oct. 1, 2036 |
Interest due | Quarterly |
DCB Trust I Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 5,155 |
Maturity date | Jun. 15, 2037 |
Interest due | Quarterly |
SUBORDINATED DEBT- Schedule o_2
SUBORDINATED DEBT- Schedule of Principal Payments and Weighted Average Rates of Other Debentures (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
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% |
Thereafter | 3.63% |
Principal Due, 2022 | $ 2,000 |
Principal Due, 2023 | 3,500 |
Principal Due, 2024 | 4,000 |
Thereafter | 34,336 |
Principal payments | $ 43,836 |
EQUITY AWARDS - Narrative (Deta
EQUITY AWARDS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 1,817 | |
Unrecognized compensation expense, period for recognition | 3 years 2 months 1 day | |
Exercised (in shares) | 0 | 24,250 |
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 | $ 156 | $ 162 |
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 |
EQUITY AWARDS - Schedule of Sto
EQUITY AWARDS - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | ||||
Outstanding at beginning of year (in shares) | 502,780 | 506,200 | 506,200 | |
Effect of 10% stock dividend (in shares) | 50,770 | |||
Granted (in shares) | 39,000 | 24,500 | ||
Exercised (in shares) | 0 | (24,250) | ||
Forfeited (in shares) | (5,060) | (10,000) | ||
Balance (in shares) | 536,720 | 547,220 | 502,780 | 506,200 |
Exercisable | ||||
Outstanding (in shares) | 307,086 | 296,922 | ||
Weighted-average exercise price (in USD per share) | $ 24.30 | $ 23.49 | ||
Weighted-average remaining contractual life in years | 4 years 3 months 10 days | 4 years 7 months 20 days | ||
Aggregate intrinsic value | $ 3,285 | $ 3,938 | ||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of year (in USD per share) | $ 25.77 | $ 26.81 | $ 26.81 | |
Granted (in USD per share) | 35.89 | 33.37 | ||
Exercised (in USD per share) | 21.74 | |||
Forfeited (in USD per share) | 26.92 | 28.54 | ||
Balance (in USD per share) | $ 26.50 | $ 24.81 | $ 25.77 | $ 26.81 |
Weighted-Average Remaining Contractual Life in Years | ||||
Outstanding | 5 years 7 months 24 days | 5 years 10 months 17 days | 5 years 7 months 2 days | 5 years 9 months 25 days |
Aggregate Intrinsic Value | ||||
Outstanding | $ 5,936 | $ 1,805 | $ 1,805 | |
Exercised | 0 | 364 | ||
Outstanding | $ 4,626 | $ 6,532 | $ 5,936 | $ 1,805 |
EQUITY AWARDS - Schedule of S_2
EQUITY AWARDS - Schedule of Stock Option Activity (Parenthetical) (Details) | 3 Months Ended |
Mar. 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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Number of Shares | ||
Outstanding at beginning of year (in shares) | 207,084 | 214,680 |
Effect of 10% stock dividend (in shares) | 23,218 | |
Granted (in shares) | 39,000 | 24,500 |
Vested (in shares) | (14,030) | (12,100) |
Forfeited (in shares) | (2,420) | |
Balance (in shares) | 229,634 | 250,298 |
Weighted-Average Exercise Price | ||
Outstanding at beginning of year (in USD per share) | $ 5.23 | $ 4.46 |
Granted (in USD per share) | 6.03 | 5.67 |
Vested (in USD per share) | 5.21 | 4.59 |
Forfeited (in USD per share) | 9.13 | |
Balance (in USD per share) | $ 5.38 | $ 5.11 |
EQUITY AWARDS - Schedule of N_2
EQUITY AWARDS - Schedule of Nonvested Stock Option Activity (Parenthetical) (Details) | 3 Months Ended |
Mar. 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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Intrinsic value of options exercised | $ 0 | $ 364 |
Cash received from options exercised | $ 0 | $ 527 |
Weighted average fair value of options granted (in USD per share) | $ 6.03 | $ 5.67 |
EQUITY AWARDS - Summary of Rest
EQUITY AWARDS - Summary of Restricted Stock Awards and Units Activity (Details) - Restricted Stock Awards And Units [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Number of Shares | ||
Outstanding at beginning of year (in shares) | 30,190 | 35,300 |
Effect of 10% stock dividend (in shares) | 3,530 | |
Vested (in shares) | (4,070) | (4,840) |
Balance (in shares) | 26,120 | 33,990 |
Weighted-Average Grant Date Fair Value | ||
Outstanding at beginning of year | $ 27.52 | $ 29.72 |
Vested | 27.50 | 30.25 |
Balance | $ 27.52 | $ 26.95 |
EQUITY AWARDS - Summary of Re_2
EQUITY AWARDS - Summary of Restricted Stock Awards and Units Activity (Parenthetical) (Details) | 3 Months Ended |
Mar. 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 | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
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 | $ 436 | $ 404 | |
Employee stock ownership plan, shares held under plan (in shares) | 1,242,594 | ||
Employee stock ownership plan, unallocated shares (in shares) | 0 | ||
Cash surrender value of life insurance | $ 37,352 | $ 37,141 | |
Bonus expense | 1,267 | 880 | |
Executive Incentive Retirement Plan | Postretirement Life Insurance | Nonqualified Plan | Unfunded Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of life insurance | 37,352 | 37,141 | |
Plan cost | 322 | $ 358 | |
Plan obligation | $ 5,134 | $ 4,969 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Operating leases, option to extend | 10 years | ||
Operating lease right-of-use assets | $ 13,911 | $ 14,376 | |
Operating lease right-of-use liabilities | 14,477 | $ 14,882 | |
Occupancy Expenses | |||
Operating leases, rental expense | $ 549 | $ 568 | |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Operating leases | ||
Operating lease right-of-use assets | $ 13,911 | $ 14,376 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Operating lease liabilities | $ 14,477 | $ 14,882 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities | Liabilities |
Weighted average remaining lease term | ||
Operating leases | 8 years | 8 years |
Weighted average discount rate | ||
Operating leases | 1.96% | 1.95% |
LEASES - Schedule of Minimum Fu
LEASES - Schedule of Minimum Future Lease Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 1,606 | |
2023 | 2,093 | |
2024 | 2,039 | |
2025 | 1,870 | |
2026 | 1,642 | |
Thereafter | 5,874 | |
Total lease payments | 15,124 | |
Less: interest | (647) | |
Present value of lease liabilities | $ 14,477 | $ 14,882 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense for the period | $ 2,235 | $ 2,336 |
Effective tax rate | 17.23% | 17.57% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory tax rate | 21.00% | 21.00% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Gain on swaps cancellation | $ 685 | |||
Interest expense | 1,570 | $ 2,022 | ||
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Notional amount | $ 5,000 | |||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Interest expense | $ 63 | $ 155 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | FHLB Advances | ||||
Derivative [Line Items] | ||||
Notional amount | $ 40,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Information Pertaining to Outstanding Interest Rate Swap Agreements (Details) - Interest Rate Swap, 3 month LIBOR - Designated as Hedging Instrument - Cash Flow Hedging | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 15,000,000 |
Pay Rate | 0.668% |
Effective Date | Mar. 18, 2020 |
Maturity in Years | 1 year 2 months 19 days |
Unrealized Losses | $ (8,000) |
Notional Amount | $ 15,000,000 |
Pay Rate | 0.79% |
Effective Date | Mar. 18, 2020 |
Maturity in Years | 3 years 2 months 19 days |
Unrealized Losses | $ 184,000 |
Notional Amount | $ 10,000,000 |
Pay Rate | 0.53% |
Effective Date | Mar. 23, 2020 |
Maturity in Years | 1 year 2 months 23 days |
Unrealized Losses | $ 12,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
FHLB letters of credit | $ 31,033,000 | |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 426,745 | $ 405,269 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 9,421 | $ 8,357 |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
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 | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 339,743 | $ 297,370 |
Actual, Ratio | 15.89 | 14.51 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 171,045 | $ 163,986 |
Minimum Required for Capital Adequacy Purposes, Ratio | 8 | 8 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 224,496 | $ 215,232 |
Minimum Required Under Basel III (Including Buffer), Ratio | 10.50 | 10.50 |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 278,653 | $ 271,696 |
Actual, Ratio | 13.03 | 13.25 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 128,283 | $ 122,990 |
Minimum Required for Capital Adequacy Purposes, Ratio | 6 | 6 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 181,735 | $ 174,235 |
Minimum Required Under Basel III (Including Buffer), Ratio | 8.50 | 8.50 |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 278,653 | $ 271,696 |
Actual, Ratio | 8.99 | 9.18 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 123,998 | $ 118,369 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4 | 4 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 123,998 | $ 118,369 |
Minimum Required Under Basel III (Including Buffer), Ratio | 4 | 4 |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 268,343 | $ 261,386 |
Actual, Ratio | 12.55 | 12.75 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 96,213 | $ 92,242 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III (Including Buffer), Amount | $ 149,664 | $ 143,488 |
Minimum Required Under Basel III (Including Buffer), Ratio | 7.00% | 7.00% |
Bank | ||
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 324,424 | $ 311,335 |
Actual, Ratio | 15.17 | 15.19 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 171,045 | $ 163,936 |
Minimum Required for Capital Adequacy Purposes, Ratio | 8 | 8 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 224,496 | $ 215,166 |
Minimum Required Under Basel III (Including Buffer), Ratio | 10.50 | 10.50 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 213,806 | $ 204,920 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10 | 10 |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 297,670 | $ 285,661 |
Actual, Ratio | 13.92 | 13.94 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 128,283 | $ 122,952 |
Minimum Required for Capital Adequacy Purposes, Ratio | 6 | 6 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 181,735 | $ 174,182 |
Minimum Required Under Basel III (Including Buffer), Ratio | 8.50 | 8.50 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 171,045 | $ 163,936 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8 | 8 |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 297,670 | $ 285,661 |
Actual, Ratio | 9.60 | 9.66 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 123,967 | $ 118,345 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4 | 4 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 123,967 | $ 118,345 |
Minimum Required Under Basel III (Including Buffer), Ratio | 4 | 4 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 154,959 | $ 147,931 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5 | 5 |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 297,670 | $ 285,661 |
Actual, Ratio | 13.92 | 13.94 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 96,213 | $ 92,214 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III (Including Buffer), Amount | $ 149,664 | $ 143,444 |
Minimum Required Under Basel III (Including Buffer), Ratio | 7.00% | 7.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 138,974 | $ 133,198 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreclosed assets | $ 0 | $ 0 |
Assets at fair value on a nonrecurring basis: | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other real estate owned | $ 0 | $ 0 |
FAIR VALUE - Schedule of Financ
FAIR VALUE - Schedule of Financial Assets (Liabilities) Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 306,704 | $ 342,206 |
Cash surrender value of life insurance | 37,352 | 37,141 |
SBA servicing assets | 1,004 | 877 |
Derivative instrument assets | 196 | |
Derivative instrument liabilities | (8) | |
Individually evaluated collateral dependent loans | 4,217 | |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 197,892 | 221,308 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 65,035 | 74,992 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 34,496 | 35,935 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,281 | 9,971 |
Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 1,166 | 4,129 |
Assets (liabilities) at fair value on a recurring basis: | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
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 | 197,892 | 221,308 |
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 | 65,035 | 74,992 |
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 | 34,496 | 35,935 |
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] | ||
Securities available for sale | 9,281 | 9,971 |
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 | 4,217 | 4,244 |
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 |
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 | 0 |
Cash surrender value of life insurance | 0 | 0 |
SBA servicing assets | 0 | 0 |
Derivative instrument assets | 0 | |
Derivative instrument liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets (liabilities) at fair value on a recurring basis: | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 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] | ||
Securities available for sale | 0 | 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 | 0 |
Cash surrender value of life insurance | 37,352 | 37,141 |
SBA servicing assets | 0 | 0 |
Derivative instrument assets | 196 | |
Derivative instrument liabilities | (8) | |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
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 | 197,892 | 221,308 |
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 | 65,035 | 74,992 |
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 | 34,496 | 35,935 |
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] | ||
Securities available for sale | 9,281 | 9,971 |
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 | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 1,166 | 4,129 |
Cash surrender value of life insurance | 0 | 0 |
SBA servicing assets | 1,004 | 877 |
Derivative instrument assets | 0 | |
Derivative instrument liabilities | 0 | |
Individually evaluated collateral dependent loans | 4,217 | |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
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] | ||
Securities available for sale | 0 | 0 |
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 | 4,217 | 4,244 |
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 - Schedule of Indivi
FAIR VALUE - Schedule of Individually Evaluated Collateral Dependent Loans at Fair Value (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | $ 4,217 |
Significant Other Unobservable Inputs (Level 3) | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | 4,217 |
Construction and Development | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | 0 |
Construction and Development | Significant Other Unobservable Inputs (Level 3) | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | 0 |
Commercial Real Estate | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | 3,742 |
Commercial Real Estate | Significant Other Unobservable Inputs (Level 3) | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | 3,742 |
Commercial and Industrial | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | 475 |
Commercial and Industrial | Significant Other Unobservable Inputs (Level 3) | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | $ 475 |
FAIR VALUE - Schedule of Carryi
FAIR VALUE - Schedule of Carrying Amounts and Estimated Fair Value of Assets And Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Reported Value Measurement | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | $ 222,091 | $ 499,605 |
Marketable securities held to maturity | 494,289 | 184,263 |
Loans, net | 1,983,449 | 1,876,076 |
Accrued interest receivable | 8,961 | 8,901 |
Nonmarketable equity securities | 12,513 | 15,344 |
Financial liabilities: | ||
Deposits | 2,797,410 | 2,670,827 |
Securities sold under repurchase agreements | 11,090 | 14,151 |
Accrued interest payable | 591 | 481 |
Federal Home Loan Bank advances | 7,500 | 47,500 |
Subordinated debentures | 54,146 | 19,810 |
Fair Value | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 222,091 | 499,605 |
Marketable securities held to maturity | 490,523 | 192,472 |
Loans, net | 1,951,997 | 1,883,756 |
Accrued interest receivable | 8,961 | 8,901 |
Nonmarketable equity securities | 12,513 | 15,344 |
Financial liabilities: | ||
Deposits | 2,797,744 | 2,671,404 |
Securities sold under repurchase agreements | 11,090 | 14,151 |
Accrued interest payable | 591 | 481 |
Federal Home Loan Bank advances | 7,494 | 47,501 |
Subordinated debentures | 52,190 | 17,833 |
Fair Value | Level 1 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 222,091 | 499,605 |
Marketable securities held to maturity | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Financial liabilities: | ||
Deposits | 2,473,118 | 2,341,048 |
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 | 490,523 | 192,472 |
Loans, net | 0 | 0 |
Accrued interest receivable | 8,961 | 8,901 |
Nonmarketable equity securities | 12,513 | 15,344 |
Financial liabilities: | ||
Deposits | 324,626 | 330,356 |
Securities sold under repurchase agreements | 11,090 | 14,151 |
Accrued interest payable | 591 | 481 |
Federal Home Loan Bank advances | 7,494 | 47,501 |
Subordinated debentures | 52,190 | 17,833 |
Fair Value | Level 3 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 0 | 0 |
Marketable securities held to maturity | 0 | 0 |
Loans, net | 1,951,997 | 1,883,756 |
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 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net earnings (basic) | $ 10,738 | $ 10,962 |
Net earnings (diluted) | $ 10,738 | $ 10,962 |
Denominator: | ||
Weighted-average shares outstanding (basic) (in shares) | 12,109,074 | 12,038,638 |
Effect of dilutive securities: | ||
Common stock equivalent shares from stock options (in shares) | 151,871 | 139,138 |
Weighted-average shares outstanding (diluted) (in shares) | 12,260,945 | 12,177,776 |
Net earnings per share | ||
Basic (in USD per share) | $ 0.89 | $ 0.91 |
Diluted (in USD per share) | $ 0.88 | $ 0.90 |