DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 07, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GNTY | ||
Entity Registrant Name | GUARANTY BANCSHARES, INC. | ||
Entity Central Index Key | 0001058867 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Common Stock, Shares Outstanding | 11,534,691 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity File Number | 001-38087 | ||
Entity Tax Identification Number | 75-1656431 | ||
Entity Address, Address Line One | 16475 Dallas Parkway, Suite 600 | ||
Entity Address, City or Town | Addison | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75001 | ||
City Area Code | 888 | ||
Local Phone Number | 572 - 9881 | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Security Exchange Name | NYSE | ||
Entity Incorporation, State or Country Code | TX | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 234 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the 2024 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2023 . | ||
Auditor Name | Whitley Penn LLP | ||
Auditor Location | Plano, Texas | ||
Auditor Firm ID | 726 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 47,744 | $ 52,390 |
Federal funds sold | 36,575 | 47,275 |
Interest-bearing deposits | 5,205 | 6,802 |
Total cash and cash equivalents | 89,524 | 106,467 |
Securities available for sale | 196,195 | 188,927 |
Securities held to maturity | 404,208 | 509,008 |
Loans held for sale | 976 | 3,156 |
Loans, net of allowance for credit losses of $30,920 and $31,974, respectively | 2,290,881 | 2,344,245 |
Accrued interest receivable | 13,143 | 11,555 |
Premises and equipment, net | 57,018 | 54,291 |
Other real estate owned | 0 | 38 |
Cash surrender value of life insurance | 42,348 | 38,404 |
Core deposit intangible, net | 1,418 | 1,859 |
Goodwill | 32,160 | 32,160 |
Other assets | 56,920 | 61,385 |
Total assets | 3,184,791 | 3,351,495 |
Deposits | ||
Noninterest-bearing | 852,957 | 1,052,144 |
Interest-bearing | 1,780,289 | 1,629,010 |
Total deposits | 2,633,246 | 2,681,154 |
Securities sold under agreements to repurchase | 25,172 | 7,221 |
Accrued interest and other liabilities | 32,242 | 28,409 |
Line of credit | 4,500 | 0 |
Federal Home Loan Bank advances | 140,000 | 290,000 |
Subordinated debt, net | 45,785 | 49,153 |
Total liabilities | 2,880,945 | 3,055,937 |
Commitments and contingencies (see Note 15) | ||
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, 14,242,328 and 14,208,558 shares issued, and 11,540,644 and 11,941,672 shares outstanding, respectively | 14,242 | 14,209 |
Additional paid-in capital | 228,986 | 227,727 |
Retained earnings | 156,878 | 137,565 |
Treasury stock, 2,701,684 and 2,266,886 shares, respectively, at cost | (71,484) | (60,257) |
Accumulated other comprehensive loss | (25,322) | (24,260) |
Equity attributable to Guaranty Bancshares, Inc. | 303,300 | 294,984 |
Noncontrolling interest | 546 | 574 |
Total equity | 303,846 | 295,558 |
Total liabilities and equity | $ 3,184,791 | $ 3,351,495 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 30,920 | $ 31,974 |
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) | 14,242,328 | 14,208,558 |
Common stock, shares outstanding (in shares) | 11,540,644 | 11,941,672 |
Treasury Stock , Shares | 2,701,684 | 2,266,886 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income | |||
Loans, including fees | $ 136,086 | $ 104,503 | $ 92,497 |
Securities | |||
Taxable | 11,580 | 11,466 | 4,762 |
Nontaxable | 4,789 | 5,131 | 4,218 |
Nonmarketable equity securities | 1,288 | 1,246 | 740 |
Federal funds sold and interest-bearing deposits | 2,749 | 863 | 333 |
Total interest income | 156,492 | 123,209 | 102,550 |
Interest expense | |||
Deposits | 44,981 | 9,753 | 5,651 |
FHLB advances and federal funds purchased | 11,626 | 3,855 | 413 |
Subordinated debentures | 2,143 | 1,722 | 700 |
Other borrowed money | 762 | 50 | 228 |
Total interest expense | 59,512 | 15,380 | 6,992 |
Net interest income | 96,980 | 107,829 | 95,558 |
Provision for (reversal of provision for) credit losses | 0 | 2,150 | (1,700) |
Net interest income after reversal of provision for credit losses | 96,980 | 105,679 | 97,258 |
Noninterest income | |||
Service charges | 4,387 | 4,288 | 3,772 |
Net realized (loss) gain on sales of securities available for sale | (229) | 172 | 0 |
Net realized gain on sale of loans | 1,201 | 2,435 | 5,528 |
Merchant and debit card fees | 7,307 | 7,121 | 6,717 |
Other income | 9,847 | 9,469 | 8,559 |
Total noninterest income | 22,513 | 23,485 | 24,576 |
Noninterest expense | |||
Employee compensation and benefits | 48,862 | 47,477 | 42,345 |
Occupancy expenses | 11,301 | 11,129 | 10,944 |
Other expenses | 22,191 | 21,301 | 19,989 |
Total noninterest expense | 82,354 | 79,907 | 73,278 |
Income before income taxes | 37,139 | 49,257 | 48,556 |
Income tax provision | 7,130 | 8,834 | 8,750 |
Net earnings | 30,009 | 40,423 | 39,806 |
Net loss attributable to noncontrolling interest | 28 | 24 | 0 |
Net earnings attributable to Guaranty Bancshares, Inc. | $ 30,037 | $ 40,447 | $ 39,806 |
Basic earnings per share | $ 2.57 | $ 3.38 | $ 3.3 |
Diluted earnings per share | $ 2.56 | $ 3.34 | $ 3.26 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 30,009 | $ 40,423 | $ 39,806 |
Unrealized losses on securities | |||
Unrealized holding losses arising during the period , net of tax | (139) | (12,750) | (15,673) |
Reclassification adjustment for net losses (gains) included in net earnings, net of tax | 181 | (136) | 0 |
Unrealized losses on available for sale securities transferred to held to maturity, net of tax and amortization | (1,104) | (17,491) | 11,010 |
Unrealized losses on securities, net of tax | (1,062) | (30,377) | (4,663) |
Unrealized (losses) gains on interest rate swaps | |||
Unrealized holding gains arising during the period | 0 | 497 | 873 |
Reclassification of realized (gains) losses on interest rate swap termination from accumulated other comprehensive loss | 0 | (685) | 466 |
Unrealized (losses) gains on interest rate swaps | 0 | (188) | 1,339 |
Total other comprehensive loss | (1,062) | (30,565) | (3,324) |
Comprehensive Income | 28,947 | 9,858 | 36,482 |
Less comprehensive loss attributable to noncontrolling interest | 28 | 24 | 0 |
Comprehensive income attributable to Guaranty Bancshares, Inc. | $ 28,975 | $ 9,882 | $ 36,482 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - 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 | 39,806 | 39,806 | |||||
Other comprehensive income (loss) | (3,324) | (3,324) | |||||
10% stock dividend | 35,947 | 1,094 | 34,853 | (35,947) | |||
Exercise of stock options | 2,019 | 90 | 1,929 | ||||
Restricted stock grants | 3 | (3) | |||||
Stock based compensation | 733 | 733 | |||||
Dividends: Common Stock | (9,663) | (9,663) | |||||
Ending Balance at Dec. 31, 2021 | 302,214 | 14,139 | 225,544 | 107,645 | (51,419) | 6,305 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 40,423 | 40,447 | $ (24) | ||||
Other comprehensive income (loss) | (30,565) | (30,565) | |||||
Contributions from noncontrolling interest | 598 | 598 | |||||
10% stock dividend | 0 | ||||||
Exercise of stock options | 1,565 | 70 | 1,495 | ||||
Purchase of treasury stock | (8,838) | (8,838) | |||||
Stock based compensation | 688 | 688 | |||||
Dividends: Common Stock | (10,527) | (10,527) | |||||
Ending Balance at Dec. 31, 2022 | 295,558 | 14,209 | 227,727 | 137,565 | (60,257) | (24,260) | 574 |
Beginning balance at Dec. 31, 2022 | 294,984 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 30,009 | 30,037 | (28) | ||||
Other comprehensive income (loss) | (1,062) | (1,062) | |||||
10% stock dividend | 0 | ||||||
Exercise of stock options | 698 | 29 | 669 | ||||
Purchase of treasury stock | (11,227) | (11,227) | |||||
Restricted stock grants | 4 | (4) | |||||
Stock based compensation | 594 | 594 | |||||
Dividends: Common Stock | (10,724) | (10,724) | |||||
Ending Balance at Dec. 31, 2023 | $ 303,846 | $ 14,242 | $ 228,986 | $ 156,878 | $ (71,484) | $ (25,322) | $ 546 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends (in USD per share) | $ 0.92 | $ 0.88 | $ 0.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net earnings | $ 30,009 | $ 40,423 | $ 39,806 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 4,042 | 4,211 | 4,358 |
Amortization | 734 | 724 | 1,154 |
Deferred taxes | 346 | (1,157) | (143) |
Premium amortization, net of discount accretion | 2,070 | 4,919 | 4,368 |
Net realized loss (gain) on sales of securities available for sale | 229 | (172) | 0 |
Gain on sale of loans | (1,201) | (2,435) | (5,528) |
Provision for (reversal of provision for) credit losses | 0 | 2,150 | (1,700) |
Origination of loans held for sale | (39,066) | (73,292) | (118,500) |
Proceeds from loans held for sale | 42,447 | 76,700 | 125,441 |
Write-down of other real estate and repossessed assets | 0 | 19 | 6 |
Net gain on sale of premises, equipment, other real estate owned and other assets | (2,943) | (925) | (23) |
Stock based compensation | 594 | 688 | 733 |
Gain on BOLI death benefits | 0 | 0 | (277) |
Net change in accrued interest receivable and other assets | (1,860) | (14,446) | (8,565) |
Net change in accrued interest payable and other liabilities | 3,806 | 1,439 | 2,414 |
Net cash provided by operating activities | 39,207 | 38,846 | 43,544 |
Securities available for sale: | |||
Purchases | (1,671,050) | (641,739) | (1,223,595) |
Proceeds from Sales | 21,268 | 26,130 | 0 |
Proceeds from maturities and principal repayments | 1,641,283 | 628,160 | 1,079,462 |
Securities held to maturity: | |||
Purchases | 0 | (457,452) | (15,057) |
Proceeds from maturities and principal repayments | 102,681 | 234,150 | 890 |
Net repayment (originations) of loans | 53,072 | (470,389) | (43,148) |
Purchases of premises and equipment | (6,779) | (5,684) | (2,896) |
Proceeds from BOLI death benefit | 0 | 0 | 464 |
Proceeds from sale of premises, equipment, other real estate owned and other assets | 3,558 | 1,860 | 1,202 |
Net cash provided by investing activities | 144,033 | (684,964) | (202,678) |
Cash flows from financing activities | |||
Net change in deposits | (47,908) | 10,664 | 384,437 |
Net change in securities sold under agreements to repurchase | 17,951 | (6,930) | (1,480) |
Proceeds from FHLB advances | 3,275,000 | 1,135,000 | 160,000 |
Repayment of FHLB advances | (3,425,000) | (892,500) | (221,601) |
Proceeds from line of credit | 17,500 | 1,000 | 10,000 |
Repayment of line of credit | (13,000) | (6,000) | (17,000) |
Proceeds from issuance of subordinated debt | 0 | 34,436 | 0 |
Repayments of debentures | (3,500) | (5,093) | 0 |
Purchase of treasury stock | (11,227) | (8,838) | 0 |
Exercise of stock options | 698 | 1,565 | 2,019 |
Cash dividends paid | (10,697) | (10,324) | (9,427) |
Net cash (used in) financing activities | (200,183) | 252,980 | 306,948 |
Net change in cash and cash equivalents | (16,943) | (393,138) | 147,814 |
Cash and cash equivalents at beginning of period | 106,467 | 499,605 | 351,791 |
Cash and cash equivalents at end of period | 89,524 | 106,467 | 499,605 |
Supplemental disclosures of cash flow information | |||
Interest paid | 56,588 | 13,513 | 7,315 |
Income taxes paid | 7,580 | 9,940 | 9,650 |
Supplemental schedule of noncash investing and financing activities | |||
Cash dividends accrued | 2,654 | 2,627 | 2,424 |
Lease right of use assets obtained in exchange for lease liabilities | 1,695 | 337 | 1,085 |
Available for sale securities transferred to held to maturity, net of unrealized loss of $13,186 for 2022 and net of unrealized gain of $10,235 for 2021. | 0 | 106,157 | 172,292 |
Transfer of loans to other real estate owned and repossessed assets | 292 | 70 | 509 |
Contributions from noncontrolling interest | 0 | 574 | 0 |
Stock dividend | $ 0 | $ 0 | $ 35,947 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Available for sale securities transferred to held to maturity, net of unrealized loss | $ 13,186 | $ 13,186 | $ 10,235 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 30,037 | $ 40,447 | $ 39,806 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies followed in the preparation of the consolidated financial statements. The policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Principles of Consolidation : The consolidated financial statements in this Annual Report on Form 10-K (this “Report”) include the accounts of Guaranty Bancshares, Inc. ("Guaranty"), Guaranty Bank & Trust N.A. (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 eight 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, Guaranty Bank & Trust Political Action Committee, White Oak Aviation, LLC and Caliber Guaranty Private Account, LLC, the entity which has a noncontrolling interest. 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 : 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. Nature of Operations : Guaranty Bancshares, Inc. is a bank holding company headquartered in Mount Pleasant, Texas that provides, through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A., a broad array of financial products and services to individuals and corporate customers, primarily in its markets of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The terms “the Company,” “we,” “us” and “our” mean Guaranty and its subsidiaries, when appropriate. The Company’s main sources of income are derived from granting loans throughout its markets and investing in securities issued or guaranteed by the U.S. Treasury, U.S. government agencies and state and political subdivisions. The Company’s primary lending products are real estate, commercial and consumer loans. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ abilities to honor contracts is dependent on the economy of the State of Texas and primarily the economies of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The Company primarily funds its lending activities with deposit operations. The Company’s primary deposit products are checking accounts, money market accounts and certificates of deposit. Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. Actual future results could differ. Cash and Cash Equivalents : Cash and cash equivalents include cash, due from banks, interest-bearing deposits with other banks that have initial maturities less than 90 days and federal funds sold. Net cash flows are reported for loan and deposit transactions, and short-term borrowings with initial maturities less than 90 days. Marketable Securities : Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive loss. Management determines the appropriate classification of securities at the time of purchase or transfer. Interest income includes amortization and accretion of purchase premiums and discounts. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities that are in an unrealized loss position for credit-related factors, in order to determine if an allowance for credit losses is required. This evaluation is performed on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, an available for sale security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, any previous allowance for credit loss is written off and the amortized cost basis of the securities is written down to fair value, through earnings. For debt securities that do not meet the aforementioned criteria, management will determine if the decline in fair value has resulted from a credit loss or other factors and apply the following: 1) recognize an allowance for credit loss by a charge to earnings for the credit-related component of the decline in fair value (subject to a floor of the excess of the amortized cost over fair value) and 2) recognize the noncredit-related component of the fair value decline, if any, in other comprehensive loss. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. To the extent that expected cash flows improve, the standard permits reversal of allowance amounts in the current period earnings. Nonmarketable Securities : Other securities, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank are accounted for on the cost basis and are carried in other assets. Stock in Valesco Commerce Street Capital, L.P., Valesco Fund II, L.P., Valesco Fund III, L.P., Independent Bankers Capital Fund III, L.P., Independent Bankers Capital Fund IV, L.P., Lightspring Capital I, L.P., Pharos Capital Partners IV-A, L.P., Bluehenge Capital SBIC II, L.P., JAM FINTOP Blockchain, L.P., JAM FINTOP Frontier Fund, L.P., Castle Creek Launchpad Fund I, and Austin Housing Conservancy Fund are accounted for on the cost basis in other assets. Loans Held for Sale : Certain residential mortgage loans are originated for sale in the secondary mortgage loan market. These loans are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. To mitigate the interest rate risk, fixed commitments may be obtained at the time loans are originated or identified for sale. All sales are made without recourse. Gains or losses on sales of mortgage loans are recognized at settlement dates based on the difference between the selling price and the carrying value of the related mortgage loans sold. Loans : Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for credit losses, discounts and any deferred fees or costs on originated loans. Interest income was reported on the level-yield interest method and included amortization of net deferred loan fees and costs over the loan term. Nonaccrual Loans : Loans are placed on nonaccrual status at ninety days past due or as determined by management, and interest is considered a loss. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. COVID-19 : Government leaders and the Federal Reserve took several actions designed to mitigate the economic fallout resulting from the coronavirus ("COVID-19"). The Coronavirus Aid, Relief and Economic Security (“CARES”) Act, signed into law on March 27, 2020, authorized more than $ 2 trillion to battle COVID-19 and its economic effects, including immediate cash relief for individual citizens, loan programs for small businesses, support for hospitals and other medical providers, and various types of economic relief for impacted businesses and industries. The goal of CARES Act was to prevent severe economic downturn. The CARES Act also provided for temporary interest only or payment deferral modifications for loans without classifying them as troubled debt restructurings under current accounting rules. Additional government-backed hardship relief measures were signed into law in early 2021, as well as extension of many of the CARES Act provisions, throughout 2021 and 2022. Due to the COVID-19 pandemic, market interest rates declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time. On March 16, 2020, the Federal Open Market Committee ("FOMC") reduced the target federal funds rate range to 0.00 % to 0.25 %, at which it remained until March 2022, when the FOMC began to rapidly increase market interest rates in response to high levels of inflation that arose in the U.S. economy. From March 2022 through July 31, 2023, the FOMC increased market rates from 0.00% to a target range of 5.25 % to 5.50 %. These rapid increases in interest rates, the impact of future rate increases or decreases, high levels of inflation and other lingering effects of the COVID-19 outbreak may adversely affect the Company’s financial condition and results of operations, as well as business and consumer confidence. Economic uncertainties remain which can negatively impact net interest income and noninterest income. Allowance for Credit Losses : Held to Maturity Debt Securities The allowance for credit losses on held to maturity securities is a contra-asset valuation account that is deducted from the amortized cost basis of held to maturity securities to present management's best estimate of the net amount expected to be collected. Held to maturity securities are charged-off against the allowance when deemed uncollectible. Adjustments to the allowance are reported in our income statement as a component of provision for credit losses. Management measures expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. As of December 31, 2023 and 2022, our held to maturity securities consisted of U.S. government agencies, treasury securities, municipal securities, collateralized mortgage obligations and mortgage-backed securities issued by the U.S. government and its agencies. With regard to the treasuries, collateralized mortgage obligations 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 as of December 31, 2023 and 2022. Management has made the accounting policy election to exclude accrued interest receivable on held to maturity securities from the estimate of credit losses. Available for Sale Debt Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the securities amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of the cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected are less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive loss. Changes in the allowance for credit losses are recorded as provisions for or reversal of credit loss expense. Losses are charged against the allowance when management believes a security is uncollectible or when either of the criteria regarding intent to sell or required to sell is met. Accrued interest receivable on securities is excluded from the estimate of credit losses. Loans The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected over the lifetime of the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. We use the weighted-average remaining maturity method (WARM method) as the basis for the estimation of expected credit losses. The WARM method uses a historical average annual charge-off rate. This average annual charge-off rate contains loss content over a historical lookback period and is used as a foundation for estimating the credit loss reserve for the remaining outstanding balances of loans in a segment at the balance sheet date. The average annual charge-off rate is applied to the contractual term, further adjusted for estimated prepayments, to determine the unadjusted historical charge-off rate. The calculation of the unadjusted historical charge-off rate is then adjusted for current conditions and for reasonable and supportable forecast periods. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in our historic loss factors. The allowance for credit losses is measured on a collective (pool or segment) basis when similar risk characteristics exist. Our loan portfolio segments include both regulatory call report codes and by internally identified risk ratings for our commercial loan segments and by delinquency status for our consumer loan segments. We also have separately identified internally originated SBA loans and SBA loans acquired from Westbound Bank in 2018 for inherent risk analysis. Accrued interest receivable on loans is excluded from the estimate of credit losses. Below is a summary of the segments and certain of the inherent risks in the Company’s loan portfolio: Commercial and industrial: This portfolio segment includes general secured and unsecured commercial loans which are not secured by real estate or may be secured by real estate but made for the primary purpose of a short-term revolving line of credit. Credit risks inherent in this portfolio segment include fluctuations in the local and national economy. Construction and development: This portfolio segment includes all loans for the purpose of construction, including both business and residential structures; and real estate development loans, including non-agricultural vacant land. Credit risks inherent in this portfolio include fluctuations in property values, unemployment, and changes in the local and national economy. Commercial real estate: The commercial real estate portfolio segment includes all commercial loans that are secured by real estate, other than those included in the construction and development, farmland, multi-family, and 1-4 family residential segments. Risks inherent in this portfolio segment include fluctuations in property values and changes in the local and national economy impacting the sale or lease of the finished structures. Farmland: The farmland portfolio includes loans that are secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing & pastureland and timberland. This segment includes land with a 1-4 family residential structure if the value of the land exceeds the value of the residence. Risks inherent in this portfolio segment include adverse changes in climate, fluctuations in feed and cattle prices and changes in property values. Consumer: This portfolio segment consists of non-real estate loans to consumers. This includes secured and unsecured loans such as auto and personal loans. The risks inherent in this portfolio segment include those factors that would impact the consumer’s ability to meet their obligations under the loan. These include increases in the local unemployment rate and fluctuations in consumer and business sales. 1-4 family residential: This portfolio segment includes loans to both commercial and consumer borrowers secured by real estate for housing units of up to four families. Risks inherent in this portfolio segment include increases in the local unemployment rate, changes in the local economy and factors that would impact the value of the underlying collateral, such as changes in property values. Multi-family residential: This portfolio segment includes loans secured by structures containing five or more residential housing units. Risks inherent in this portfolio segment include increases to the local unemployment rate, changes in the local economy, and factors that would impact property values. Agricultural: The agricultural portfolio segment includes loans to individuals and companies in the dairy and cattle industries and farmers. Loans in the segment are secured by collateral including cattle, crops and equipment. Risks inherent in this portfolio segment include adverse changes in climate and fluctuations in feed and cattle prices. The following groups of loans are considered to carry specific similar inherent risk characteristics, which the Bank considers separately during its calculation of the allowance for credit losses. These groups of loans are reported within the segments identified in the previous table. Mortgage Warehouse: The mortgage warehouse portfolio, which was discontinued as a product line in May 2023, includes loans in which we purchase mortgage loan ownership interests from unaffiliated mortgage originators that are generally held by us for a period of less than 30-days, typically 5-10 days before they are sold to an approved investor. These loans are consistently underwritten based on standards established by the approved investor. Risks inherent in this portfolio include borrower or mortgage originator fraud. SBA – Acquired Loans The SBA – acquired loans segment consists of partially SBA guaranteed loans that were acquired from Westbound Bank in June 2018. These loans are commercial real estate and commercial and industrial in nature and were underwritten with guidelines that are less conservative than our Company. Risks inherent in this portfolio include increases in interest rates, as most are variable rate loans, generally lower levels of borrower equity, less conservative underwriting guidelines, fluctuations in real estate values and changes in the local and national economy. SBA – Originated Loans The SBA – originated loans segment consists of loans that are partially guaranteed by the SBA and were originated and underwritten by Guaranty Bank & Trust loan officers. Risks inherent in this portfolio include increases in interest rates due to variable rate structures, generally lower levels of borrower equity or net worth, fluctuations in real estate values and changes in the local and national economy. In general, the loans in our portfolio have low historical credit losses. The credit quality of loans in our portfolio is impacted by delinquency status and debt service coverage generated by our borrowers’ businesses and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, these types of loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process we refer to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. We consider the majority of our consumer type loans to be “seasoned” and that the credit quality and current level of delinquencies and defaults represents the level of reserve needed in the allowance for credit losses. If delinquencies and defaults were to increase, we may be required to increase our provision for credit losses, which would adversely affect our results of operations and financial condition. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial and industrial, construction, and commercial real estate loans. Internal risk ratings are a key factor that impact management’s estimates of loss factors used in determining the amount of the allowance for credit losses. Internal risk ratings are updated on a continuous basis. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Credit Quality Indicators - The Company monitors the credit quality of the loans in the various segments by identifying and evaluating credit quality indicators specific to each segment class. This information is incorporated into management’s analysis of the adequacy of the allowance for credit losses. Information for the credit quality indicators is updated monthly or quarterly for classified assets and at least annually for the remainder of the portfolio. The following is a discussion of the primary credit quality indicators most closely monitored for the loan portfolio, by class: Commercial and industrial: In assessing risk associated with commercial loans, management considers the business’s cash flow and the value of the underlying collateral to be the primary credit quality indicators. Construction and development: In assessing the credit quality of construction loans, management considers the ability of the borrower to make principal and interest payments in the event that they are unable to sell the completed structure to be a primary credit quality indicator. For real estate development loans, management also considers the likelihood of the successful sale of the constructed properties in the development. Commercial real estate: Management considers the strength of the borrower’s cash flows, changes in property values and occupancy status to be key credit quality indicators of commercial real estate loans. Farmland: In assessing risk associated with farmland loans, management considers the borrower’s cash flows and underlying property values to be key credit quality indicators. Consumer: Management considers delinquency status to be the primary credit quality indicator of consumer loans. Others include the debt to income ratio of the borrower, the borrower’s credit history, the availability of other credit to the borrower, the borrower’s past-due history, and, if applicable, the value of the underlying collateral to be primary credit quality indicators. 1-4 family residential: Management considers delinquency status to be the primary credit quality indicator of 1-4 family residential loans. Others include changes in the local economy, changes in property values, and changes in local unemployment rates to be key credit quality indicators of the loans in the 1-4 family residential loan segment. Multi-family residential: Management considers changes in the local economy, changes in property values, vacancy rates and changes in local unemployment rates to be key credit quality indicators of the loans in the multifamily loan segment. Agricultural: In assessing risk associated with agricultural loans, management considers the borrower’s cash flows, the value of the underlying collateral and sources of secondary repayment to be primary credit quality indicators. From time to time, we modify the terms of loans for borrowers experiencing financial difficulties. These modifications may include adjustments such as a lower interest rate, a reduction of principal, or a longer term to maturity. Such modifications are evaluated under FASB's ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which eliminates the recognition and measurement guidance for troubled debt restructurings ("TDRs") by creditors in ASC 310-40. We assess each loan experiencing financial difficulties on a case-by-case basis to determine the appropriate method for allocating an allowance for credit losses. This determination considers factors such as the loan's specific situation, its collateral, and the borrower's prospects for recovery. In some cases, the loan may be grouped with similar loans for allowance consideration, while in others, an individual assessment may be necessary. The allowance for credit loss allocation is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. Reserve for Unfunded Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets. Maintenance, repairs and minor improvements are charged to noninterest expense as incurred. The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy: Bank Buildings Up to 40 years Equipment to 10 years Furniture and Fixtures to 7 years Software to 5 years Automobiles to 4 years Other Real Estate Owned : Assets acquired through, or in lieu of, foreclosure are initially recorded at fair value, less estimated carrying and selling costs, when acquired, establishing a new cost basis. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Goodwill and Other Intangible Assets : Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Impairment is tested for annually or when a triggering event occurs, and exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At the measurement date, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Core deposit intangibles represent premiums paid on acquired deposits based on the estimated fair value of the deposits at the time of purchase. These premiums are amortized over a ten year period. Impairment is tested for annually, and exists when there is significant runoff of these deposits. Management has concluded that there is no impairment to the Company's core deposit intangibles. Bank Owned Life Insurance : The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income Taxes : Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 2 - MARKETABLE SECURITIES The following tables summarize the amortized cost and fair value of available for sale and held to maturity securities as of December 31, 2023 and 2022 and the corresponding amounts of gross unrealized gains and losses: December 31, 2023 Amortized Gross Gross Estimated Available for sale: Corporate bonds $ 29,882 $ — $ 3,077 $ 26,805 Municipal securities 2,322 182 — 2,504 Mortgage-backed securities 164,419 1,014 15,621 149,812 Collateralized mortgage obligations 18,757 19 1,702 17,074 Total available for sale $ 215,380 $ 1,215 $ 20,400 $ 196,195 Held to maturity: U.S. government agencies $ 9,292 $ — $ 1,066 $ 8,226 Treasury securities 69,432 — 1,038 68,394 Municipal securities 168,175 923 6,123 162,975 Mortgage-backed securities 119,872 — 15,105 104,767 Collateralized mortgage obligations 37,437 — 7,276 30,161 Total held to maturity $ 404,208 $ 923 $ 30,608 $ 374,523 December 31, 2022 Amortized Gross Gross Estimated Available for sale: Corporate bonds $ 29,964 $ — $ 2,177 $ 27,787 Municipal securities 10,324 326 8 10,642 Mortgage-backed securities 145,896 1 15,556 130,341 Collateralized mortgage obligations 21,981 3 1,827 20,157 Total available for sale $ 208,165 $ 330 $ 19,568 $ 188,927 Held to maturity: U.S. government agencies $ 9,141 $ — $ 1,259 $ 7,882 Treasury securities 133,735 — 2,921 130,814 Municipal securities 191,680 658 8,285 184,053 Mortgage-backed securities 132,693 — 14,708 117,985 Collateralized mortgage obligations 41,759 — 7,425 34,334 Total held to maturity $ 509,008 $ 658 $ 34,598 $ 475,068 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 unrealized holding gains and losses at the date of transfer are retained in accumulated other comprehensive loss and in the carrying value of the held to maturity securities and are amortized or accreted over the remaining life of the security. During the second quarter of 2022, we transferred $ 106,157 of securities from available for sale to held to maturity, which included a net unrealized loss on the date of transfer of $ 13,186 . During the third quarter of 2021, we transferred $ 172,292 of securities from available for sale to held to maturity, which included a net unrealized gain on the date of transfer of $ 10,235 . These unamortized unrealized losses and unaccreted unrealized gains on our transferred securities are included in accumulated other comprehensive loss on our balance sheet and they netted to an unrealized loss of $ 6,964 at December 31, 2023 compared to an unrealized gain of $ 5,860 at December 31, 2022. This amount will continue to be amortized and accreted out of accumulated other comprehensive loss over the remaining life of the underlying securities as an adjustment of the yield on those securities. There is no allowance for credit losses recorded for our available for sale or held to maturity debt securities as of December 31, 2023 or 2022. Information pertaining to available for sale securities with gross unrealized losses as of December 31, 2023 and 2022, for which no allowance for credit losses has been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is detailed in the following tables: Less Than 12 Months 12 Months or Longer Total December 31, 2023 Gross Estimated Gross Estimated Gross Estimated Available for sale: Corporate bonds $ — $ — $ ( 3,077 ) $ 26,805 $ ( 3,077 ) $ 26,805 Mortgage-backed securities ( 742 ) 13,308 ( 14,879 ) 101,889 ( 15,621 ) 115,197 Collateralized mortgage obligations — — ( 1,702 ) 13,976 ( 1,702 ) 13,976 Total available for sale $ ( 742 ) $ 13,308 $ ( 19,658 ) $ 142,670 $ ( 20,400 ) $ 155,978 Less Than 12 Months 12 Months or Longer Total December 31, 2022 Gross Estimated Gross Estimated Gross Estimated Available for sale: Corporate bonds $ ( 1,518 ) $ 20,323 $ ( 659 ) $ 7,464 $ ( 2,177 ) $ 27,787 Municipal securities ( 8 ) 1,659 — — ( 8 ) 1,659 Mortgage-backed securities ( 6,150 ) 74,146 ( 9,406 ) 55,826 ( 15,556 ) 129,972 Collateralized mortgage obligations ( 908 ) 16,575 ( 919 ) 3,411 ( 1,827 ) 19,986 Total available for sale $ ( 8,584 ) $ 112,703 $ ( 10,984 ) $ 66,701 $ ( 19,568 ) $ 179,404 There were 233 investments in an unrealized loss position at December 31, 2023, of which 74 were available for sale debt securities in an unrealized loss position with no recorded allowance for credit losses as of December 31, 2023. The available for sale securities in a loss position were composed of corporate bonds, collateralized mortgage obligations and mortgage-backed securities as of December 31, 2023, along with municipal securities as of December 31, 2022. 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 mainly attributable to rate, and not due to credit-related factors. The Company monitors the credit quality of other debt securities through the use of credit ratings and other factors specific to an individual security in assessing whether or not the decline in fair value of municipal or corporate securities, relative to their amortized cost, is due to credit-related factors. Triggers to prompt further investigation of securities when the fair value is less than the amortized cost are when a security has been downgraded and falls below an A credit rating, and the security’s unrealized loss exceeds 20 % of its book value. Consideration is given to (1) the extent to which fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Based on evaluation of available evidence, management believes the unrealized losses on the securities as of December 31, 2023 and 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 the current expected credit loss model ("CECL"). As of December 31, 2023 and 2022, our held to maturity securities consisted of U.S. government agencies, municipal securities, treasury securities, collateralized mortgage obligations and mortgage-backed securities issued by the U.S. government and its agencies. With regard to the treasuries, collateralized mortgage obligations 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. 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. 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. As of December 31, 2023 , there were no holdings of securities of any one issuer, other than the collateralized mortgage obligations, treasuries and mortgage-backed securities issued by the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity. As of December 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 shareholders’ equity. There were no held to maturity securities past due on interest or principal payments, and no ne that were on nonaccrual as of December 31, 2023. Securities with fair values of approximately $ 317,112 and $ 396,584 at December 31, 2023 and 2022, respectively, were pledged to secure public fund deposits and for other purposes as required or permitted by law. Proceeds from the sales of available for sale securities and the associated gains and losses for the years ended December 31, 2023 and 2022 are listed below. There were no securities sold during the year ended December 31, 2021. 2023 2022 2021 Proceeds from sales $ 21,268 $ 26,130 $ — Gross gains 184 234 — Gross losses ( 413 ) ( 62 ) — There were no held to maturity securities sold during the years ended December 31, 2023, 2022 or 2021. The contractual maturities at December 31, 2023 of available for sale and held to maturity securities at carrying value and estimated fair value are shown below. The Company invests in securities that may 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. Securities not due at a single maturity date are shown separately. Available for Sale Held to Maturity December 31, 2023 Amortized Estimated Amortized Estimated Due within one year $ 2,003 $ 1,979 $ 47,009 $ 46,674 Due after one year through five years 7,540 7,229 68,564 66,189 Due after five years through ten years 22,661 20,101 79,950 77,878 Due after ten years — — 51,376 48,854 Mortgage-backed securities 164,419 149,812 119,872 104,767 Collateralized mortgage obligations 18,757 17,074 37,437 30,161 Total securities $ 215,380 $ 196,195 $ 404,208 $ 374,523 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2023 | |
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: 2023 2022 Commercial and industrial $ 287,565 $ 314,067 Real estate: Construction and development 296,639 377,135 Commercial real estate 923,195 887,587 Farmland 186,295 185,817 1-4 family residential 514,603 493,061 Multi-family residential 44,292 45,147 Consumer 57,059 61,394 Agricultural 12,685 13,686 Overdrafts 243 282 Total loans 2,322,576 2,378,176 Net of: Deferred loan fees, net ( 775 ) ( 1,957 ) Allowance for credit losses ( 30,920 ) ( 31,974 ) Total net loans (1) $ 2,290,881 $ 2,344,245 (1) Excludes accrued interest receivable on loans of $ 9.5 million and $ 7.6 million as of December 31, 2023 and 2022, respectively, which is presented separately on the consolidated balance sheets. The Company has entered into transactions, at prevailing market rates and terms, with certain directors, executive officers, significant shareholders and their affiliates. Loans to such related parties at December 31, 2023 and 2022, totaled $ 63,551 and $ 72,539 , respectively. Unfunded commitments to such related parties at December 31, 2023 totaled $ 30,716 . Loans to principal officers, directors, and their affiliates during the year ended December 31, 2023, was as follows: December 31, 2023 Beginning balance $ 72,539 New loans 42,661 Effect of changes in composition of related parties ( 492 ) Repayments ( 51,157 ) Ending balance $ 63,551 Allowance for Credit Losses 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 modification for borrower experiencing financial difficulty. The following tables present the activity in the ACL by class of loans for the years ended December 31, 2023, 2022 and 2021: For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 4,382 $ 4,889 $ 12,658 $ 2,008 $ 6,617 $ 490 $ 778 $ 149 $ 3 $ 31,974 (Reversal of) provision for credit losses ( 209 ) ( 1,266 ) ( 124 ) 223 853 31 238 4 250 — Loans charged-off ( 473 ) — ( 277 ) — — — ( 139 ) ( 3 ) ( 312 ) ( 1,204 ) Recoveries 19 — — — — — 68 2 61 150 Ending balance $ 3,719 $ 3,623 $ 12,257 $ 2,231 $ 7,470 $ 521 $ 945 $ 152 $ 2 $ 30,920 For the Year 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 Provision for (reversal of) credit losses 902 668 ( 1,108 ) 310 769 94 283 ( 20 ) 252 2,150 Loans charged-off ( 192 ) — — — — — ( 322 ) — ( 335 ) ( 849 ) Recoveries 72 — 1 — 30 — 55 — 82 240 Ending balance $ 4,382 $ 4,889 $ 12,658 $ 2,008 $ 6,617 $ 490 $ 778 $ 149 $ 3 $ 31,974 For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 4,033 $ 4,735 $ 15,780 $ 1,220 $ 6,313 $ 363 $ 929 $ 239 $ 7 33,619 Provision for (reversal of) 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 During 2021, a reverse provision of $ 1,700 was recorded as a result of improvements that occurred to macroeconomic factors evaluated at the onset of the pandemic as well as risk rating upgrades for specific loans. During 2022, the remaining COVID-specific qualitative factors were removed. However, growth in the loan portfolio, as well as declines in economic outlooks during the year and an adjustment to qualitative factors for expected recession forecasts, resulted in a $ 2,150 provision expense for the year ended December 31, 2022. During 2023, certain minor adjustments were made to qualitative factors to incorporate changes in some economic and portfolio activities, however, we recorded no provision for credit losses during 2023. Credit Quality Assets are graded “pass” when the relationship exhibits acceptable credit risk and indicates repayment ability, tolerable collateral coverage and reasonable performance history. Lending relationships exhibiting potentially significant credit risk and marginal repayment ability and/or asset protection are graded “special mention.” Assets classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. Substandard graded loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets graded “doubtful” are substandard graded loans that have added characteristics that make collection or liquidation in full improbable. Loans that are on nonaccrual status are generally classified as substandard. In general, the loans in our portfolio have low historical credit losses. The Company closely monitors economic conditions and loan performance trends to manage and evaluate the exposure to credit risk. Key factors tracked by the Company and utilized in evaluating the credit quality of the loan portfolio include trends in delinquency ratios, the level of nonperforming assets, borrower’s repayment capacity, and collateral coverage. The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2023: December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 42,646 $ 72,376 $ 38,328 $ 12,864 $ 8,249 $ 12,524 $ 96,215 $ 283,202 Special mention — 16 132 958 147 — 250 1,503 Substandard — 190 — 370 370 153 — 1,083 Nonaccrual — 129 1,528 7 — 79 34 1,777 Total commercial and industrial loans $ 42,646 $ 72,711 $ 39,988 $ 14,199 $ 8,766 $ 12,756 $ 96,499 $ 287,565 Charge-offs $ ( 79 ) $ — $ ( 25 ) $ ( 41 ) $ ( 31 ) $ ( 4 ) $ ( 293 ) $ ( 473 ) Recoveries — — — — — 4 15 19 Current period net $ ( 79 ) $ — $ ( 25 ) $ ( 41 ) $ ( 31 ) $ — $ ( 278 ) $ ( 454 ) Construction and development: Pass $ 86,641 $ 112,347 $ 62,548 $ 7,074 $ 5,915 $ 12,504 $ 9,237 $ 296,266 Special mention — — — — — — — — Substandard — 189 — — — 67 — 256 Nonaccrual — 73 — — — 44 — 117 Total construction and development loans $ 86,641 $ 112,609 $ 62,548 $ 7,074 $ 5,915 $ 12,615 $ 9,237 $ 296,639 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 46,655 $ 368,933 $ 149,536 $ 81,765 $ 54,100 $ 176,509 $ 15,065 $ 892,563 Special mention — 7,000 — — — 333 — 7,333 Substandard — 15,831 6,950 — 49 337 — 23,167 Nonaccrual — — — — 32 100 — 132 Total commercial real estate loans $ 46,655 $ 391,764 $ 156,486 $ 81,765 $ 54,181 $ 177,279 $ 15,065 $ 923,195 Charge-offs $ ( 190 ) $ — $ — $ — $ — $ ( 87 ) $ — $ ( 277 ) Recoveries — — — — — — — — Current period net $ ( 190 ) $ — $ — $ — $ — $ ( 87 ) $ — $ ( 277 ) December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Farmland: Pass $ 25,009 $ 77,371 $ 46,817 $ 8,556 $ 5,599 $ 15,850 $ 6,849 $ 186,051 Special mention — — — — — — — — Substandard — — — — 27 53 — 80 Nonaccrual — — — — — 164 — 164 Total farmland loans $ 25,009 $ 77,371 $ 46,817 $ 8,556 $ 5,626 $ 16,067 $ 6,849 $ 186,295 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential: Pass $ 57,348 $ 143,992 $ 120,964 $ 42,535 $ 28,764 $ 95,198 $ 22,146 $ 510,947 Special mention — — — — — 863 — 863 Substandard — — — — — — — — Nonaccrual — — 1,249 53 175 1,316 — 2,793 Total 1-4 family residential loans $ 57,348 $ 143,992 $ 122,213 $ 42,588 $ 28,939 $ 97,377 $ 22,146 $ 514,603 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Multi-family residential: Pass $ 1,984 $ 18,041 $ 16,496 $ 2,363 $ 3,862 $ 1,492 $ 54 $ 44,292 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 1,984 $ 18,041 $ 16,496 $ 2,363 $ 3,862 $ 1,492 $ 54 $ 44,292 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Consumer and overdrafts: Pass $ 26,161 $ 15,181 $ 5,840 $ 2,449 $ 589 $ 2,307 $ 4,488 $ 57,015 Special mention 6 26 5 — — — — 37 Substandard — — — — — — — — Nonaccrual 19 52 75 25 42 37 — 250 Total consumer loans and overdrafts $ 26,186 $ 15,259 $ 5,920 $ 2,474 $ 631 $ 2,344 $ 4,488 $ 57,302 Charge-offs $ ( 346 ) $ ( 38 ) $ ( 51 ) $ ( 11 ) $ ( 5 ) $ — $ — $ ( 451 ) Recoveries 61 — 4 1 — 23 40 129 Current period net $ ( 285 ) $ ( 38 ) $ ( 47 ) $ ( 10 ) $ ( 5 ) $ 23 $ 40 $ ( 322 ) Agricultural: Pass $ 1,857 $ 1,962 $ 1,078 $ 685 $ 236 $ 604 $ 5,879 $ 12,301 Special mention — — — — — — — — Substandard — — — — — 25 — 25 Nonaccrual — — 256 — 74 29 — 359 Total agricultural loans $ 1,857 $ 1,962 $ 1,334 $ 685 $ 310 $ 658 $ 5,879 $ 12,685 Charge-offs $ — $ — $ — $ — $ — $ ( 3 ) $ — $ ( 3 ) Recoveries — — — — — 2 — 2 Current period net $ — $ — $ — $ — $ — $ ( 1 ) $ — $ ( 1 ) Total loans: Pass $ 288,301 $ 810,203 $ 441,607 $ 158,291 $ 107,314 $ 316,988 $ 159,933 $ 2,282,637 Special mention 6 7,042 137 958 147 1,196 250 9,736 Substandard — 16,210 6,950 370 446 635 — 24,611 Nonaccrual 19 254 3,108 85 323 1,769 34 5,592 Total loans $ 288,326 $ 833,709 $ 451,802 $ 159,704 $ 108,230 $ 320,588 $ 160,217 $ 2,322,576 Charge-offs $ ( 615 ) $ ( 38 ) $ ( 76 ) $ ( 52 ) $ ( 36 ) $ ( 94 ) $ ( 293 ) $ ( 1,204 ) Recoveries 61 — 4 1 — 29 55 150 Total current period net (charge-offs) recoveries $ ( 554 ) $ ( 38 ) $ ( 72 ) $ ( 51 ) $ ( 36 ) $ ( 65 ) $ ( 238 ) $ ( 1,054 ) The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2022: December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 99,750 $ 57,854 $ 19,577 $ 11,797 $ 4,172 $ 12,907 $ 105,628 $ 311,685 Special mention — 131 — 333 — — 905 1,369 Substandard 14 — 246 423 192 23 — 898 Nonaccrual 72 33 10 — — — — 115 Total commercial and industrial loans $ 99,836 $ 58,018 $ 19,833 $ 12,553 $ 4,364 $ 12,930 $ 106,533 $ 314,067 Charge-offs $ — $ — $ ( 67 ) $ — $ — $ — $ ( 125 ) $ ( 192 ) Recoveries — — — — — 32 40 72 Current period net $ — $ — $ ( 67 ) $ — $ — $ 32 $ ( 85 ) $ ( 120 ) Construction and development: Pass $ 179,501 $ 138,388 $ 17,361 $ 8,697 $ 3,443 $ 10,535 $ 16,870 $ 374,795 Special mention 905 — — — — — — 905 Substandard — — — — — — — — Nonaccrual — — — — 1,435 — — 1,435 Total construction and development loans $ 180,406 $ 138,388 $ 17,361 $ 8,697 $ 4,878 $ 10,535 $ 16,870 $ 377,135 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 347,162 $ 147,986 $ 86,897 $ 63,988 $ 51,002 $ 158,384 $ 12,007 $ 867,426 Special mention — — 1,300 — 2,594 3,427 — 7,321 Substandard 1,336 — — — 26 4,207 — 5,569 Nonaccrual — — 251 96 — 6,924 — 7,271 Total commercial real estate loans $ 348,498 $ 147,986 $ 88,448 $ 64,084 $ 53,622 $ 172,942 $ 12,007 $ 887,587 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — 1 — — 1 Current period net $ — $ — $ — $ — $ 1 $ — $ — $ 1 December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Farmland: Pass $ 93,128 $ 51,912 $ 10,284 $ 6,646 $ 5,956 $ 11,741 $ 5,948 $ 185,615 Special mention — — — — — — — — Substandard — — — 31 — 62 — 93 Nonaccrual — — — — — 109 — 109 Total farmland loans $ 93,128 $ 51,912 $ 10,284 $ 6,677 $ 5,956 $ 11,912 $ 5,948 $ 185,817 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential: Pass $ 143,268 $ 128,957 $ 50,140 $ 30,068 $ 27,104 $ 89,678 $ 21,956 $ 491,171 Special mention — — 43 — — 156 — 199 Substandard — — — — — — — — Nonaccrual — 148 — 116 118 1,309 — 1,691 Total 1-4 family residential loans $ 143,268 $ 129,105 $ 50,183 $ 30,184 $ 27,222 $ 91,143 $ 21,956 $ 493,061 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 30 — 30 Current period net $ — $ — $ — $ — $ — $ 30 $ — $ 30 Multi-family residential: Pass $ 18,183 $ 18,331 $ 2,463 $ 4,216 $ 878 $ 985 $ 91 $ 45,147 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 18,183 $ 18,331 $ 2,463 $ 4,216 $ 878 $ 985 $ 91 $ 45,147 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Consumer and overdrafts: Pass $ 32,817 $ 11,789 $ 5,455 $ 1,835 $ 3,079 $ 473 $ 6,008 $ 61,456 Special mention 14 4 — 28 4 — — 50 Substandard — — — — — — — — Nonaccrual 17 93 21 12 23 4 — 170 Total consumer loans and overdrafts $ 32,848 $ 11,886 $ 5,476 $ 1,875 $ 3,106 $ 477 $ 6,008 $ 61,676 Charge-offs $ ( 335 ) $ ( 26 ) $ ( 25 ) $ ( 21 ) $ — $ — $ ( 250 ) $ ( 657 ) Recoveries 83 3 6 11 1 33 — 137 Current period net $ ( 252 ) $ ( 23 ) $ ( 19 ) $ ( 10 ) $ 1 $ 33 $ ( 250 ) $ ( 520 ) Agricultural: Pass $ 3,148 $ 1,914 $ 984 $ 491 $ 392 $ 422 $ 6,243 $ 13,594 Special mention — — — — — 3 — 3 Substandard — — — — — 32 — 32 Nonaccrual — — — — 4 53 — 57 Total agricultural loans $ 3,148 $ 1,914 $ 984 $ 491 $ 396 $ 510 $ 6,243 $ 13,686 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Total loans: Pass $ 916,957 $ 557,131 $ 193,161 $ 127,738 $ 96,026 $ 285,125 $ 174,751 $ 2,350,889 Special mention 919 135 1,343 361 2,598 3,586 905 9,847 Substandard 1,350 — 246 454 218 4,324 — 6,592 Nonaccrual 89 274 282 224 1,580 8,399 — 10,848 Total loans $ 919,315 $ 557,540 $ 195,032 $ 128,777 $ 100,422 $ 301,434 $ 175,656 $ 2,378,176 Charge-offs $ ( 335 ) $ ( 26 ) $ ( 92 ) $ ( 21 ) $ — $ — $ ( 375 ) $ ( 849 ) Recoveries 83 3 6 11 2 95 40 240 Total current period net charge-offs $ ( 252 ) $ ( 23 ) $ ( 86 ) $ ( 10 ) $ 2 $ 95 $ ( 335 ) $ ( 609 ) There were no loans classified in the “doubtful” or “loss” risk rating categories as of December 31, 2023 and 2022. The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on the ACL, as of December 31, 2023: December 31, 2023 Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ — $ 217 $ 217 $ 217 Real estate: Commercial real estate 14,527 — 14,527 — Total $ 14,527 $ 217 $ 14,744 $ 217 There were no individually evaluated collateral-dependent loans within the ACL model as of December 31, 2022. The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans and loans 90 days or more past due continuing to accrue interest as of: December 31, 2023 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 621 $ 30 $ 1,656 $ 2,307 $ 285,258 $ 287,565 $ — Real estate: Construction and 315 288 117 720 295,919 296,639 — Commercial real 356 — 132 488 922,707 923,195 — Farmland 226 84 — 310 185,985 186,295 — 1-4 family residential 2,827 1,110 1,612 5,549 509,054 514,603 — Multi-family residential — — — — 44,292 44,292 — Consumer 169 77 162 408 56,651 57,059 — Agricultural 16 — — 16 12,669 12,685 — Overdrafts — — — — 243 243 — Total $ 4,530 $ 1,589 $ 3,679 $ 9,798 $ 2,312,778 $ 2,322,576 $ — December 31, 2022 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 440 $ 44 $ 105 $ 589 $ 313,478 $ 314,067 $ — Real estate: Construction and 258 73 1,435 1,766 375,369 377,135 — Commercial real 882 354 6,708 7,944 879,643 887,587 — Farmland 129 79 — 208 185,609 185,817 — 1-4 family residential 2,101 547 572 3,220 489,841 493,061 — Multi-family residential — — — — 45,147 45,147 — Consumer 164 118 70 352 61,042 61,394 — Agricultural 37 10 — 47 13,639 13,686 — Overdrafts — — — — 282 282 — Total $ 4,011 $ 1,225 $ 8,890 $ 14,126 $ 2,364,050 $ 2,378,176 $ — The following table presents information regarding nonaccrual loans as of: 2023 2022 Commercial and industrial $ 1,777 $ 115 Real estate: Construction and development 117 1,435 Commercial real estate 132 7,271 Farmland 164 109 1-4 family residential 2,793 1,691 Consumer and overdrafts 250 170 Agricultural 359 57 Total $ 5,592 $ 10,848 If interest on nonaccrual loans had been accrued, such income would have been approximately $ 167 and $ 434 for the years ended December 31, 2023 and 2022, respectively. There were no commitments to lend additional funds to borrowers whose loans were classified as nonaccrual. There were no individually analyzed loans classified as nonaccrual with an associated allowance for credit losses applied as of December 31, 2023 and 2022 . Modifications to Borrowers Experiencing Financial Difficulty The Company adopted Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The following table presents the amortized cost basis of loans modified during the year ended December 31, 2023 to borrowers experiencing financial difficulty: For the Year Ended Term Total Class of Financing Receivable Commercial and industrial $ 900 0.00 % 1-4 family residential 57 0.01 % Consumer 12 0.02 % Total loans $ 969 0.03 % The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the year ended December 31, 2023: Term Extension Loan Type Financial Effect Commercial and industrial Amortization period was extended by a weighted-average period of 0.25 years. 1-4 family residential Amortization period was extended by a weighted-average period of 5.00 years. Consumer Amortization period was extended by a weighted-average period of 0.26 years. The following table provides an age analysis of loans made to borrowers experiencing financial difficult that were modified on or after our ASU 2022-02 adoption date of January 1, 2023: Current 30 to 89 Days 90 Days Commercial and industrial $ 900 $ — $ — 1-4 family residential — 57 — Consumer 12 — — Total loans $ 912 $ 57 $ — As of December 31, 2023, the Company did not have any loans made to borrowers experiencing financial difficulty that were modified during the year ended December 31, 2023 that subsequently defaulted. There were no commitments to lend additional funds to borrowers experiencing financial difficulty as of December 31, 2023. There were no loans restructured during the year ended December 31, 2022 . |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE 4 - PREMISES AND EQUIPMENT Premises and equipment balances, by type, were as follows: December 31, December 31, Land $ 11,135 $ 11,135 Building and improvements 59,955 59,448 Construction in progress 9,027 4,153 Furniture, fixtures and equipment 20,983 19,708 Automobiles 365 370 101,465 94,814 Less: accumulated depreciation 44,447 40,523 $ 57,018 $ 54,291 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 5 - GOODWILL There were no changes in the carrying amount of goodwill as presented in the accompanying consolidated balance sheets as of December 31, 2023 or 2022 . |
CORE DEPOSIT INTANGIBLES
CORE DEPOSIT INTANGIBLES | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
CORE DEPOSIT INTANGIBLES | NOTE 6 - CORE DEPOSIT INTANGIBLES Changes in the carrying amount of core deposit intangibles in the accompanying consolidated balance sheets as of December 31 are summarized as follows: 2023 2022 Beginning of year $ 1,859 $ 2,313 Amortization ( 441 ) ( 454 ) End of year $ 1,418 $ 1,859 Accumulated amortization was $ 7,113 and $ 6,672 at December 31, 2023 and 2022, respectively. Amortization expense related to core deposit intangibles was $ 441 , $ 454 and $ 686 during the years ended December 31, 2023, 2022 and 2021 , respectively. The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2023 was as follows: Year Ended December 31, Amount 2024 $ 424 2025 316 2026 272 2027 270 2028 136 $ 1,418 |
INTEREST-BEARING DEPOSITS
INTEREST-BEARING DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
Interest Bearing Deposits Abstract | |
Deposit Liabilities Disclosures [Text Block] | NOTE 7 - INTEREST-BEARING DEPOSITS Interest-bearing deposits, by type of account, were as follows as of: December 31, 2023 December 31, 2022 NOW accounts $ 150,548 $ 225,859 Savings and money market accounts 924,558 1,048,612 Time deposits $250,000 or less 426,145 224,550 Time deposits greater than $250,000 279,038 129,989 $ 1,780,289 $ 1,629,010 Year-end maturities of time deposits, as of December 31, 2023, were as follows: Year Ended December 31, Amount 2024 $ 646,978 2025 49,642 2026 4,183 2027 2,238 2028 2,142 Thereafter — $ 705,183 Deposits of executive officers, directors and significant shareholders at December 31, 2023 and 2022 totaled $ 40,799 and $ 56,291 , respectively. |
BORROWED MONEY
BORROWED MONEY | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
BORROWED MONEY | NOTE 8 - BORROWED MONEY Advances from the Federal Home Loan Bank (FHLB) were $ 140,000 at a 5.36 % weighted average rate as of December 31, 2023 and $ 290,000 at a 4.74 % weighted average rate as of December 31, 2022, and were collateralized by blanket floating liens on certain securities and loans . FHLB advances bear interest based on a fixed rate, payable monthly, with all principal due at maturity. The following table presents the scheduled maturities of FHLB advances and their weighted average rates, each as of December 31, 2023: Year Current Principal Due Fixed rate advances 2024 5.36 % 140,000 Total FHLB advances $ 140,000 The outstanding FHLB advances above will be repaid with cash flows from operations or renewed into new advances. The Company has an unsecured $ 25,000 revolving line of credit with a correspondent bank that bears interest at the greater of (i) the prime rate, which was 8.50 % at December 31, 2023 , or (ii) the rate floor of 3.50 %, with interest payable quarterly , and matures in March 2024 . Under the terms of the line of credit, the Company agreed not to pledge or grant a lien or security interest in the stock of the Bank or in any other assets without prior consent of the lender. As of December 31, 2023, there was a $ 4,500 outstanding balance on the line of credit. To be in compliance with the loan covenants, the Bank is required to maintain no less than a 10 % total risk-based capital ratio, must maintain no less than $ 85,000 in tangible net worth, the ratio of non-performing assets to equity plus allowance for credit losses must not exceed 15 %, the cash flow coverage must be greater than 1.25 times, the ratio of other additional debt to total assets must not exceed 15 %, and the Company is limited to acquiring additional debt of no more than $ 500 without prior approval. The Company is in compliance with all loan covenants. |
SUBORDINATED DEBT
SUBORDINATED DEBT | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
SUBORDINATED DEBT | NOTE 9 - SUBORDINATED DEBT Subordinated debt was made up of the following as of: December 31, 2023 December 31, 2022 Trust III Debentures $ 2,062 $ 2,062 DCB Trust I Debentures 5,155 5,155 Subordinated note 34,568 34,436 Other debentures 4,000 7,500 $ 45,785 $ 49,153 As of December 31, 2023 , the Company has two active trusts, Guaranty (TX) Capital Trust III (“Trust III”) and DCB Financial Trust I (“DCB Trust I”). 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 (composed of Trust III and DCB Trust I) 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 III DCB Trust I Formation date July 25, 2006 March 29, 2007 Capital trust pass-through securities Number of shares 2,000 5,000 Original liquidation value $ 2,000 $ 5,000 Common securities liquidation value 62 155 The securities held by the Trusts qualify as Tier 1 capital for the Company under Federal Reserve Board guidelines. The Federal Reserve’s guidelines restrict core capital elements (including trust preferred securities and qualifying perpetual preferred stock) to 25% of all core capital elements, net of goodwill less any associated deferred tax liability. Because the Company’s aggregate amount of trust preferred securities is less than the limit of 25% of Tier 1 capital, net of goodwill, the full amount is includable in Tier 1 capital at December 31, 2023 and December 31, 2022. 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 III Debentures DCB Trust I Original amount $ 2,062 $ 5,155 Maturity date October 1, 2036 June 15, 2037 Interest due 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 In May 2022, the Company redeemed the $ 3.1 million in junior subordinated debentures issued to Guaranty (TX) Capital Trust II relating to such trust's issuance of trust preferred securities to a third party. Prior to repayment, 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 Secured Overnight Financing Rate (SOFR) plus 1.93 %. 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 SOFR plus 2.06%. 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 In March 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-annually 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 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 (subject to reductions in the amount includable as Tier 2 capital in the final five years prior to maturity), and is presented net of related unamortized 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 . Various of these debentures have matured since issuance and $ 4,000 remains as of December 31, 2023 . 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 maturity 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 Debentures, the subordinated note and other debentures are as follows : Year Current Principal Due 2024 3.74 % $ 4,000 2025 - 2028 — — Thereafter 4.23 % 42,217 Total scheduled principal payments 46,217 Unamortized debt issuance costs ( 432 ) $ 45,785 |
EQUITY AWARDS
EQUITY AWARDS | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY AWARDS | NOTE 10 – EQUITY AWARDS The Company’s 2015 Equity Incentive Plan (the “Plan”) was adopted by the Company and approved by its shareholders in April 2015. The maximum number of shares of common stock that may be issued pursuant to stock-based awards under the Plan equals 1,100,000 shares, all of which may be subject to incentive stock option treatment. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have vesting periods ranging from 5 to 10 years and have 10-year contractual terms. Restricted stock awards vest under the period of restriction specified within their respective award agreements as determined by the Company. Forfeitures are recognized as they occur, subject to a 90-day grace period for vested options. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer group averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes in to account that the options are not transferable. The dividend yield is the total dividends per share paid during the period divided by the average of the Company's stock price on each date a grant was issued. The risk-free interest rate for the expected term of the option is based on U.S. Treasury yield in effect at the time of the grant. The fair value of options granted was determined using the following weighted-average assumptions as of grant date, for the years ended December 31: 2023 2022 2021 Risk-free interest rate 4.08 % 2.90 % 0.98 % Expected term (in years) 6.50 6.50 6.50 Expected stock price volatility 23.53 % 21.70 % 23.98 % Dividend yield 3.23 % 2.47 % 2.35 % A summary of stock option activity in the Plan during the years ended December 31, 2023 and 2022 follows: 2023 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 497,820 $ 28.07 5.87 $ 3,402 Granted 52,500 28.72 Exercised ( 29,790 ) 23.46 Forfeited ( 54,850 ) 30.80 Balance, December 31, 2023 465,680 $ 28.12 5.46 $ 2,782 Exercisable at end of period 283,110 $ 26.03 3.87 $ 2,202 2022 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 502,780 $ 25.77 5.59 $ 5,936 Granted 102,500 35.58 Exercised ( 69,580 ) 22.49 Forfeited ( 37,880 ) 28.16 Balance, December 31, 2022 497,820 $ 28.07 5.87 $ 3,402 Exercisable at end of period 281,340 $ 25.25 4.32 $ 2,648 A summary of nonvested stock option activity in the Plan during the years ended December 31, 2023 and 2022 follows: 2023 Number of Weighted-Average Outstanding at beginning of year 216,480 $ 5.95 Granted 52,500 6.04 Vested ( 65,690 ) 5.63 Forfeited ( 20,720 ) 14.39 Balance, December 31, 2023 182,570 $ 6.10 2022 Number of Weighted-Average Outstanding at beginning of year 207,084 $ 5.23 Granted 102,500 6.98 Vested ( 71,944 ) 5.50 Forfeited ( 21,160 ) 8.86 Balance, December 31, 2022 216,480 $ 5.95 Information related to stock options in the Plan is as follows for the years ended: 2023 2022 2021 Intrinsic value of options exercised $ 303 $ 846 $ 1,273 Cash received from options exercised 698 1,565 2,019 Weighted average fair value of options granted 6.04 6.98 5.92 Restricted Stock Awards and Units A summary of restricted stock activity in the Plan during the years ended December 31, 2023 and 2022 follows: 2023 Number of Weighted-Average Outstanding at beginning of year 18,930 $ 27.51 Granted 5,056 31.96 Vested ( 7,520 ) 27.52 Forfeited ( 1,076 ) 28.93 Balance, December 31, 2023 15,390 $ 28.87 2022 Number of Weighted-Average Outstanding at beginning of year 30,190 $ 27.52 Vested ( 11,260 ) 27.52 Balance, December 31, 2022 18,930 $ 27.51 Restricted stock granted to employees typically vests over five years , but vesting periods may vary. Compensation expense for these grants will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of December 31, 2023, there was $ 1,390 of total unrecognized compensation expense related to nonvested stock options granted under the Plan. The expense is expected to be recognized over a weighted-average period of 3.10 years. The Company granted options and restricted stock under the Plan during both 2023 and 2022. Expense of $ 594 , $ 688 and $ 733 was recorded during the years ended December 31, 2023, 2022 and 2021 , respectively, which represents the fair value of restricted stock and stock options vested during those periods. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | NOTE 11 - EMPLOYEE BENEFITS KSOP The Company maintains an Employee Stock Ownership Plan containing Section 401(k) provisions covering substantially all employees (“KSOP”). The plan provides for a matching contribution of up to 5 % of a participant’s qualified compensation starting January 1, 2016. Guaranty’s total contributions accrued or paid during the years ended December 31, 2023, 2022 and 2021 totaled $ 1,643 , $ 1,576 and $ 1,455 , respectively, and is included in employee compensation and benefits on the Company’s consolidated statements of earnings. 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 December 31, 2023, the number of shares held by the KSOP was 1,021,462 . There were no unallocated shares to plan participants as of December 31, 2023, 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 $ 42,348 and $ 38,404 as of December 31, 2023 and 2022 , respectively. For the year ended December 31, 2021, a gain of $ 277 was included in other income in the Company's consolidated statement of earnings, from $464 in proceeds received from these life insurance policies resulting from the death of a former bank officer. No such gains were recorded during the years ended December 31, 2023 or 2022. Expense related to these plans totaled $ 949 , $ 796 and $ 738 for the years ended December 31, 2023, 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 $ 6,050 and $ 5,388 as of December 31, 2023 and 2022, respectively, and is included in accrued interest and other liabilities on the Company’s consolidated balance sheets. Bonus Plan The Company has a bonus plan that rewards officers and employees based on performance of individual business units of the Company. Earnings and growth performance goals for each business unit and for the Company as a whole are established at the beginning of the calendar year and approved annually by Guaranty’s board of directors. The bonus plan provides for a predetermined bonus amount to be contributed to the employee bonus pool based on (i) earnings target and growth for individual business units and (ii) achieving certain pre-tax return on average equity and pre-tax return on average asset levels for the Company as a whole. These bonus amounts are established annually by Guaranty’s board of directors. The bonus expense under this plan for the years ended December 31, 2023, 2022 and 2021 totaled $ 3,764 , $ 5,177 and $ 4,867 , respectively, which included accrued bonus expense at December 31, 2023, 2022 and 2021 of $ 1,684 , $ 2,332 and $ 2,190 , respectively. The expense is included in employee compensation and benefits on the consolidated statements of earnings and the accrual is included in accrued interest and other liabilities on the consolidated balance sheets. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 12 – LEASES The Company has operating leases for bank locations, ATMs, corporate offices, and certain other arrangements, which have remaining lease terms of 1 year to 12 years . Some of the Company’s operating leases include options to extend the leases for up to 10 years . Operating leases in which we are the lessee must be recorded as right-of-use assets with corresponding lease liabilities. The right-of-use asset represents our right to utilize the underlying asset during the lease term, while the lease liability represents the present value of the obligation of the Company to make periodic lease payments over the life of the lease. The associated operating lease costs are comprised of the amortization of the right-of-use asset and the implicit interest accreted on the lease liability, which is recognized on a straight-line basis over the life of the lease. As of December 31, 2023, operating lease right-of-use assets were $ 12,485 and liabilities were $ 13,128 , and as of December 31, 2022, lease assets and liabilities were $ 12,896 and $ 13,520 , respectively, and were included within the accompanying consolidated balance sheets as components of other assets and accrued interest and other liabilities, respectively. Operating lease expense for operating leases accounted for under ASC 842 for the years ended December 31, 2023, 2022 and 2021 was approximately $ 2,292 , $ 2,236 and $ 2,278 , respectively, and were included as a component of occupancy expenses within the accompanying consolidated statements of earnings. The table below summarizes other information related to our operating leases as of: December 31, 2023 December 31, 2022 Operating leases Operating lease right-of-use assets $ 12,485 $ 12,896 Operating lease liabilities 13,128 13,520 Weighted average remaining lease term Operating leases 7 years 8 years Weighted average discount rate Operating leases 2.28 % 2.00 % The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2028 and thereafter. Minimum future lease payments under these non-cancelable operating leases as of December 31, 2023, are as follows: Year Ended December 31, Amount 2024 $ 2,303 2025 2,134 2026 1,897 2027 1,735 2028 1,688 Thereafter 3,856 Total lease payments 13,613 Less: interest ( 485 ) Present value of lease liabilities $ 13,128 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13 - INCOME TAXES Management of the Company considers the likelihood of changes by taxing authorities in its filed income tax returns and discloses potential significant changes that management believes are more likely than not to occur upon examination by tax authorities. Management has not identified any uncertain tax positions in previously filed income tax returns that require disclosure in the accompanying consolidated financial statements. The Company is subject to U.S. federal income taxes. The consolidated provision for income taxes was as follows as of December 31: 2023 2022 2021 Current federal tax expense $ 6,784 $ 9,991 $ 8,893 Deferred federal tax expense (benefit) 346 ( 1,157 ) ( 143 ) Total $ 7,130 $ 8,834 $ 8,750 The provision for federal income taxes differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis as of December 31: 2023 2022 2021 Federal statutory income tax at 21 % $ 7,799 $ 10,344 $ 10,197 Tax exempt interest income ( 944 ) ( 1,076 ) ( 1,043 ) Earnings of bank owned life insurance ( 198 ) ( 177 ) ( 235 ) Nondeductible expenses 669 277 180 Other ( 196 ) ( 534 ) ( 349 ) Total $ 7,130 $ 8,834 $ 8,750 The following table summarizes the components of our deferred tax assets and liabilities as of December 31, 2023 and 2022. Our net deferred tax assets are included in other assets in the accompanying consolidated balance sheets. 2023 2022 Deferred tax assets: Allowance for credit losses $ 6,493 $ 6,714 Deferred compensation 1,271 1,132 Unrealized loss on available for sale securities 4,029 4,040 Bonus accrual 385 526 Deferred loan fees, net 163 330 Accretion of acquisition allowance 37 54 Other 297 360 Total deferred tax assets 12,675 13,156 Deferred tax liabilities: Premises and equipment ( 1,187 ) ( 1,494 ) Prepaid expenses ( 375 ) ( 281 ) Intangibles ( 196 ) ( 230 ) Other ( 178 ) ( 55 ) Total deferred tax liabilities ( 1,936 ) ( 2,060 ) Net deferred tax asset $ 10,739 $ 11,096 The Company is no longer subject to U.S. federal income tax examinations for years before 2020. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 14 - 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, if applicable. The Company is exposed to credit related losses in the event of nonperformance by the counterparties to those agreements. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail to perform their respective obligations. The Company entered into interest rate swaps to receive payments at a fixed rate in exchange for paying a floating rate on the debentures discussed in Note 9. Management believed that entering into the interest rate swaps exposed the Company to variability in their fair value due to changes in the level of interest rates. It was the Company’s objective to hedge the change in fair value of floating rate debentures at coverage levels that were appropriate, given anticipated or existing interest rate levels and other market considerations, as well as the relationship of change in the liability to other liabilities of the Company. During the quarter ended September 30, 2021, Guaranty terminated these interest rate swaps with notional amounts totaling $ 5,000 at the time of termination, as the risk exposure declined to acceptable levels. The swaps were canceled at an expense of $ 466 , which is included in non-interest expense in the 2021 consolidated statement of earnings. 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 canceled at a net gain of $ 685 , which is included in other non-interest income in the consolidated statements 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. The changes in fair value of the swaps was recorded in other comprehensive loss. There were no outstanding interest rate swap agreements as of December 31, 2023 or 2022. Interest expense recorded on these swap transactions totaled, $ 282 and $ 607 during the years ended December 31, 2022 and 2021, respectively. This expense is reported as a component of interest expense on the debentures, FHLB advances and federal funds purchased on the consolidated statements of earnings. No interest expense on swap transactions was recorded during the year ended December 31, 2023 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 - 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 with respect to these commitments as of December 31, 2023 and 2022. 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. Our credit risk associated with issuing letters of credit is essentially the same as the risk involved in extending loan facilities to our customers. As of December 31, 2023 and 2022 , no amounts have been recorded as an ACL for the Bank’s potential obligations under these guarantees. Commitments and letters of credit outstanding were as follows as of: Contract or Notional Amount 2023 2022 Commitments to extend credit $ 336,036 $ 474,745 Letters of credit 7,536 8,289 Litigation The Company is involved in certain claims and lawsuits occurring in the normal course of business. Management, after consultation with legal counsel, does not believe that the outcome of these actions, if determined adversely, would have a material impact on the consolidated financial statements of the Company. FHLB Letters of Credit At December 31, 2023, the Company had letters of credit of $ 5,000 pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2023 | |
Banking And Thrifts [Abstract] | |
REGULATORY MATTERS | NOTE 16 - REGULATORY MATTERS The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Basel III Capital Rules, a comprehensive capital framework for U.S. banking organizations, became effective for the Company and Bank on January 1, 2015, with certain transition provisions that were fully phased in on January 1, 2019. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1 capital, Tier 1 capital and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and or Tier 1 capital to adjusted quarterly average assets (as defined). Management believes, as of December 31, 2023 and 2022, that the Bank met all capital adequacy requirements to which it was subject. The Basel III Capital Rules, among other things, (i) introduced a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specified that Tier 1 capital consist of CET1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) defined CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital, (iv) expanded the scope of the deductions/adjustments as compared to existing regulations, and (v) imposed a "capital conservation buffer" of 2.5 % above minimum risk-based capital requirements, below which an institution would be subject to limitations on certain activities including payment of dividends, share repurchases and discretionary bonuses to executive officers. As of December 31, 2023 and 2022, 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 capital ratios as set forth in the table. There are no conditions or events since December 31, 2023 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 $ 7,217 of trust preferred securities in Tier 1 capital as of both December 31, 2023 and 2022. Additionally, the rules provide that trust preferred securities would no longer qualify for Tier 1 capital within five years of their maturity, but would be included as Tier 2 capital. However, the trust preferred securities would be amortized out of Tier 2 capital by one-fifth each year and excluded from Tier 2 capital completely during the year prior to maturity of the subordinated debentures. A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios are presented in the following tables as of: Actual Minimum Required Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Total capital to risk-weighted assets: Consolidated $ 367,526 15.22 % $ 193,232 8.00 % $ 253,617 10.50 % $ 241,540 10.00 % Bank 373,778 15.49 % 193,035 8.00 % 253,359 10.50 % 241,294 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 302,757 12.53 % 144,924 6.00 % 205,309 8.50 % 144,924 6.00 % Bank 343,607 14.24 % 144,777 6.00 % 205,100 8.50 % 193,035 8.00 % Tier 1 capital to average assets: (1) Consolidated 302,757 9.47 % 127,878 4.00 % 127,878 4.00 % n/a Bank 343,607 10.78 % 127,531 4.00 % 127,531 4.00 % 159,414 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 295,540 12.24 % 108,693 4.50 % 169,078 7.00 % n/a Bank 343,607 14.24 % 108,582 4.50 % 168,906 7.00 % 156,841 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, 2022 Total capital to risk-weighted assets: Consolidated $ 358,702 14.37 % $ 199,687 8.00 % $ 262,089 10.50 % $ 249,608 10.00 % Bank 361,125 14.48 % 199,570 8.00 % 261,936 10.50 % 249,463 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 292,966 11.74 % 149,765 6.00 % 212,167 8.50 % 149,765 6.00 % Bank 329,933 13.23 % 149,678 6.00 % 212,044 8.50 % 199,570 8.00 % Tier 1 capital to average assets: (1) Consolidated 292,966 8.77 % 133,614 4.00 % 133,614 4.00 % n/a Bank 329,933 9.89 % 133,375 4.00 % 133,375 4.00 % 166,718 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 285,749 11.45 % 112,324 4.50 % 174,726 7.00 % n/a Bank 329,933 13.23 % 112,258 4.50 % 174,624 7.00 % 162,151 6.50 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Dividends paid by Guaranty are mainly provided by dividends from its subsidiaries. However, certain regulatory restrictions exist regarding the ability of its bank subsidiary to transfer funds to Guaranty in the form of cash dividends, loans or advances. The amount of dividends that a subsidiary bank organized as a national banking association, such as the Bank, may declare in a calendar year is the subsidiary bank’s net profits for that year combined with its retained net profits for the preceding two years. Retained net profits, as defined by the Office of the Comptroller of the Currency ("OCC"), consist of net income less dividends declared during the period. As of December 31, 2023, the Bank had $ 56,504 available for payment of dividends. Dividends are paid quarterly, and $ 10,724 in dividends were paid during the year ended December 31, 2023 . |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | NOTE 17 - CONCENTRATIONS OF CREDIT RISK Most of the Company’s business activity is with customers located within the state of Texas. Investments in state and municipal securities involve governmental entities within the Company’s market area. The Company also maintains deposits with other financial institutions in amounts that exceed FDIC insurance coverage. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended |
Dec. 31, 2023 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | NOTE 18 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase were $ 25,172 and $ 7,221 as of December 31, 2023 and 2022, respectively, and are secured by mortgage-backed securities and collateralized mortgage obligations. Securities sold under agreements to repurchase are financing arrangements that mature within two years. At maturity, the securities underlying the agreements are returned to the Company. Information concerning securities sold under agreements to repurchase is summarized as follows as of December 31: 2023 2022 Average balance during the year $ 20,635 $ 8,596 Average interest rate during the year 1.27 % 0.42 % Maximum month-end balance during the year $ 31,644 $ 12,118 Weighted average interest rate at year-end 2.12 % 0.44 % |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 19 - RELATED PARTIES As more fully described in Note 3, Note 7 and Note 9, the Company has entered into loans, deposits and debenture transactions with related parties. Management believes the transactions entered into with related parties are in the ordinary course of business and are on terms similar to transitions with unaffiliated parties. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 20 - 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). Other Real Estate Owned : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly (Level 3). Individually Evaluated Collateral Dependent Loans : The fair value of individually evaluated collateral dependent loans is generally based on the fair value of collateral, less costs to sell. The fair value of real estate collateral is determined using recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant (Level 3). Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business (Level 3). The following tables summarize quantitative disclosures about the fair value measurements for each category of financial assets (liabilities) carried at fair value: December 31, 2023 Fair Value Quoted Significant Significant Assets at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 149,812 $ — $ 149,812 $ — Collateralized mortgage obligations 17,074 — 17,074 — Municipal securities 2,504 — 2,504 — Corporate bonds 26,805 — 26,805 — Loans held for sale 976 — — 976 Cash surrender value of life insurance 42,348 — 42,348 — SBA servicing assets 691 — — 691 Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 14,527 — — 14,527 December 31, 2022 Fair Value Quoted Significant Significant Assets at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 130,341 $ — $ 130,341 $ — Collateralized mortgage obligations 20,157 — 20,157 — Municipal securities 10,642 — 10,642 — Corporate bonds 27,787 — 27,787 — Loans held for sale 3,156 — — 3,156 Cash surrender value of life insurance 38,404 — 38,404 — SBA servicing assets 874 — — 874 Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans — — — — There were no transfers between Level 2 and Level 3 during the years ended December 31, 2023 or 2022. Nonfinancial Assets and Nonfinancial Liabilities Nonfinancial assets measured at fair value on a nonrecurring basis 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 estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. As of December 31, 2023 and 2022, there were no foreclosed assets that were remeasured and recorded at fair value. The following table presents quantitative information about nonrecurring Level 3 fair value measurements as of December 31, 2022 . There were no nonrecurring Level 3 fair value measurements requiring quantitative information as of December 31, 2023. December 31, 2022 Fair Value Valuation Unobservable Input(s) Range Other real estate owned $ 38 Appraisal value of collateral Selling costs or other normal adjustments 49 % The following table presents information on individually evaluated collateral dependent loans included in the ACL model as of December 31, 2023. There were no individually evaluated collateral dependent loans included in the ACL model as o f December 31, 2022: Fair Value Measurements Using December 31, 2023 Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ — $ — Real estate: Commercial real estate — — 14,527 14,527 Total $ — $ — $ 14,527 $ 14,527 The carrying amounts and estimated fair values of financial instruments not previously discussed in this note, as of December 31, 2023 and 2022, 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 $ 89,524 $ 89,524 $ — $ — $ 89,524 Marketable securities held to maturity 404,208 — 374,523 — 374,523 Loans, net 2,290,881 — — 2,187,669 2,187,669 Accrued interest receivable 13,143 — 13,143 — 13,143 Nonmarketable equity securities 24,128 — 24,128 — 24,128 Financial liabilities: Deposits $ 2,633,246 $ 1,928,063 $ 706,074 $ — $ 2,634,137 Securities sold under repurchase agreements 25,172 — 25,172 — 25,172 Accrued interest payable 5,272 — 5,272 — 5,272 Federal Home Loan Bank advances 140,000 — 139,963 — 139,963 Subordinated debt 45,785 — 46,433 — 46,433 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 $ 106,467 $ 106,467 $ — $ — $ 106,467 Marketable securities held to maturity 509,008 — 475,068 — 475,068 Loans, net 2,344,245 — — 2,217,606 2,217,606 Accrued interest receivable 11,555 — 11,555 — 11,555 Nonmarketable equity securities 25,585 — 25,585 — 25,585 Financial liabilities: Deposits $ 2,681,154 $ 2,326,615 $ 351,981 $ — $ 2,678,596 Securities sold under repurchase agreements 7,221 — 7,221 — 7,221 Accrued interest payable 2,348 — 2,348 — 2,348 Federal Home Loan Bank advances 290,000 — 289,926 — 289,926 Subordinated debt 49,153 — 50,025 — 50,025 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). Marketable Securities Held to Maturity : The fair values for marketable securities held to maturity 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). 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 noninterest 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | NOTE 21 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ending December 31, 2023: Cash Flow Hedges Available for Sale Securities Held to Maturity Securities Total Beginning balance $ — $ ( 18,400 ) $ ( 5,860 ) $ ( 24,260 ) Unrealized gains (losses) arising during the period — 282 ( 1,104 ) ( 822 ) Tax effect — ( 59 ) — ( 59 ) Amounts reclassified from accumulated other comprehensive loss — ( 181 ) — ( 181 ) Net current period other comprehensive income (loss) — 42 ( 1,104 ) ( 1,062 ) Ending balance $ — $ ( 18,358 ) $ ( 6,964 ) $ ( 25,322 ) The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2023: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Affected Line Item in the Unrealized loss on available for sale securities $ 229 Net realized loss on sale of securities available for sale Tax effect ( 48 ) Tax expense Net of tax $ 181 The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2022: Cash Flow Hedges Available for Sale Securities Held to Maturity Securities Total Beginning balance $ 188 $ ( 2,744 ) $ 8,861 $ 6,305 Transfer from AFS to HTM — 13,186 ( 13,186 ) — Unrealized gains (losses) arising during the period 497 ( 33,175 ) ( 1,535 ) ( 34,213 ) Tax effect — 4,197 — 4,197 Amounts reclassified from accumulated other comprehensive loss ( 685 ) 136 — ( 549 ) Net current period other comprehensive loss ( 188 ) ( 15,656 ) ( 14,721 ) ( 30,565 ) Ending balance $ — $ ( 18,400 ) $ ( 5,860 ) $ ( 24,260 ) The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2022: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Affected Line Item in the Statement Where Net Unrealized gain on available for sale securities $ ( 172 ) Net realized gain on sale of securities available for sale Tax effect 36 Tax expense Net of tax $ ( 136 ) Gains on cash flow hedges 867 Other income Tax effect ( 182 ) Tax expense Net of tax $ 685 Total amounts reclassified out of accumulated other comprehensive loss $ 549 The following are changes in accumulated other comprehensive income by component, net of tax, for the year ended December 31, 2021: Cash Flow Hedges Available for Sale Securities Held to Maturity Securities Total Beginning balance $ ( 1,151 ) $ 10,780 $ — $ 9,629 Transfer from AFS to HTM ( 10,235 ) 10,235 — Unrealized gains (losses) arising during the period 873 ( 6,884 ) ( 1,374 ) ( 7,385 ) Tax effect — 3,595 — 3,595 Amounts reclassified from accumulated other comprehensive loss 466 — — 466 Net current period other comprehensive income (loss) 1,339 ( 13,524 ) 8,861 ( 3,324 ) Ending balance $ 188 $ ( 2,744 ) $ 8,861 $ 6,305 The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2021: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Affected Line Item in the Unrealized loss on interest rate termination $ 590 Other expenses Tax effect ( 124 ) Tax expense Net of tax $ 466 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 22 - 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. Net losses attributable to the noncontrolling interest during the years ended December 31, 2023 and 2022 were $ 28 and $ 24 , respectively, and are excluded from this calculation. 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 diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money awards which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax impact that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The computations of basic and diluted earnings per share for the Company were as follows (in thousands except per share amounts) as of December 31: 2023 2022 2021 Numerator: Net earnings attributable to Guaranty Bancshares, Inc. $ 30,037 $ 40,447 $ 39,806 Denominator: Weighted-average shares outstanding (basic) 11,693,761 11,980,209 12,065,182 Effect of dilutive securities: Common stock equivalent shares from stock options 44,844 112,638 146,576 Weighted-average shares outstanding (diluted) 11,738,605 12,092,847 12,211,758 Net earnings attributable to Guaranty Bancshares, Inc. per share Basic $ 2.57 $ 3.38 $ 3.30 Diluted $ 2.56 $ 3.34 $ 3.26 |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | NOTE 23 - PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of Guaranty Bancshares, Inc. follows: December 31, 2023 2022 ASSETS Cash and cash equivalents $ 2,987 $ 6,848 Investment in banking subsidiary 351,367 339,168 Other assets 2,428 1,351 Total assets $ 356,782 $ 347,367 LIABILITIES AND EQUITY Line of credit $ 4,500 $ — Subordinated debt, net 45,785 49,153 Accrued expenses and other liabilities 3,197 3,230 Shareholders’ equity 303,300 294,984 Total liabilities and shareholders’ equity $ 356,782 $ 347,367 For the Years Ended December 31, 2023 2022 2021 Interest income $ 15 $ 8 $ 7 Dividends from Guaranty Bank & Trust 20,000 — 18,000 20,015 8 18,007 Expenses Interest expense 2,506 1,755 916 Other expenses 1,645 1,974 2,520 4,151 3,729 3,436 Income (loss) before income tax and equity in undistributed income of subsidiary 15,864 ( 3,721 ) 14,571 Income tax benefit 912 924 718 Income (loss) before equity in undistributed earnings of subsidiary 16,776 ( 2,797 ) 15,289 Equity in undistributed earnings of subsidiary 13,261 43,244 24,517 Net earnings $ 30,037 $ 40,447 $ 39,806 Comprehensive income $ 28,975 $ 9,882 $ 36,482 For the Years Ended December 31, 2023 2022 2021 Cash flows from operating activities Net earnings $ 30,037 $ 40,447 $ 39,806 Adjustments: Equity in undistributed subsidiary earnings ( 13,261 ) ( 43,244 ) ( 24,517 ) Stock based compensation 594 688 733 Change in other assets ( 945 ) ( 724 ) ( 176 ) Change in other liabilities ( 60 ) 226 44 Net cash provided by (used in) operating activities 16,365 ( 2,607 ) 15,890 Cash flows from investing activities Net cash provided by investing activities — — — Cash flows from financing activities Proceeds from line of credit 17,500 35,436 10,000 Repayments of borrowings ( 16,500 ) ( 11,093 ) ( 17,000 ) Purchase of treasury stock ( 11,227 ) ( 8,838 ) — Exercise of stock options 698 1,565 2,019 Cash dividends paid ( 10,697 ) ( 10,324 ) ( 9,427 ) Net cash (used in) provided by financing activities ( 20,226 ) 6,746 ( 14,408 ) Net change in cash and cash equivalents ( 3,861 ) 4,139 1,482 Beginning cash and cash equivalents 6,848 2,709 1,227 Ending cash and cash equivalents $ 2,987 $ 6,848 $ 2,709 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation : The consolidated financial statements in this Annual Report on Form 10-K (this “Report”) include the accounts of Guaranty Bancshares, Inc. ("Guaranty"), Guaranty Bank & Trust N.A. (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 eight 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, Guaranty Bank & Trust Political Action Committee, White Oak Aviation, LLC and Caliber Guaranty Private Account, LLC, the entity which has a noncontrolling interest. 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 | Basis of Presentation : 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. |
Nature of Operations | Nature of Operations : Guaranty Bancshares, Inc. is a bank holding company headquartered in Mount Pleasant, Texas that provides, through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A., a broad array of financial products and services to individuals and corporate customers, primarily in its markets of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The terms “the Company,” “we,” “us” and “our” mean Guaranty and its subsidiaries, when appropriate. The Company’s main sources of income are derived from granting loans throughout its markets and investing in securities issued or guaranteed by the U.S. Treasury, U.S. government agencies and state and political subdivisions. The Company’s primary lending products are real estate, commercial and consumer loans. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ abilities to honor contracts is dependent on the economy of the State of Texas and primarily the economies of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The Company primarily funds its lending activities with deposit operations. The Company’s primary deposit products are checking accounts, money market accounts and certificates of deposit. |
Use of Estimates | Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. Actual future results could differ. |
Cash and Cash Equivalents | Cash and Cash Equivalents : Cash and cash equivalents include cash, due from banks, interest-bearing deposits with other banks that have initial maturities less than 90 days and federal funds sold. Net cash flows are reported for loan and deposit transactions, and short-term borrowings with initial maturities less than 90 days. |
Marketable Securities | Marketable Securities : Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive loss. Management determines the appropriate classification of securities at the time of purchase or transfer. Interest income includes amortization and accretion of purchase premiums and discounts. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities that are in an unrealized loss position for credit-related factors, in order to determine if an allowance for credit losses is required. This evaluation is performed on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, an available for sale security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, any previous allowance for credit loss is written off and the amortized cost basis of the securities is written down to fair value, through earnings. For debt securities that do not meet the aforementioned criteria, management will determine if the decline in fair value has resulted from a credit loss or other factors and apply the following: 1) recognize an allowance for credit loss by a charge to earnings for the credit-related component of the decline in fair value (subject to a floor of the excess of the amortized cost over fair value) and 2) recognize the noncredit-related component of the fair value decline, if any, in other comprehensive loss. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. To the extent that expected cash flows improve, the standard permits reversal of allowance amounts in the current period earnings. |
Non-marketable Securities | Nonmarketable Securities : Other securities, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank are accounted for on the cost basis and are carried in other assets. Stock in Valesco Commerce Street Capital, L.P., Valesco Fund II, L.P., Valesco Fund III, L.P., Independent Bankers Capital Fund III, L.P., Independent Bankers Capital Fund IV, L.P., Lightspring Capital I, L.P., Pharos Capital Partners IV-A, L.P., Bluehenge Capital SBIC II, L.P., JAM FINTOP Blockchain, L.P., JAM FINTOP Frontier Fund, L.P., Castle Creek Launchpad Fund I, and Austin Housing Conservancy Fund are accounted for on the cost basis in other assets. |
Loans Held for Sale | Loans Held for Sale : Certain residential mortgage loans are originated for sale in the secondary mortgage loan market. These loans are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. To mitigate the interest rate risk, fixed commitments may be obtained at the time loans are originated or identified for sale. All sales are made without recourse. Gains or losses on sales of mortgage loans are recognized at settlement dates based on the difference between the selling price and the carrying value of the related mortgage loans sold. |
Loans | Loans : Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for credit losses, discounts and any deferred fees or costs on originated loans. Interest income was reported on the level-yield interest method and included amortization of net deferred loan fees and costs over the loan term. |
Nonaccrual Loans | Nonaccrual Loans : Loans are placed on nonaccrual status at ninety days past due or as determined by management, and interest is considered a loss. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Covid- 19 | COVID-19 : Government leaders and the Federal Reserve took several actions designed to mitigate the economic fallout resulting from the coronavirus ("COVID-19"). The Coronavirus Aid, Relief and Economic Security (“CARES”) Act, signed into law on March 27, 2020, authorized more than $ 2 trillion to battle COVID-19 and its economic effects, including immediate cash relief for individual citizens, loan programs for small businesses, support for hospitals and other medical providers, and various types of economic relief for impacted businesses and industries. The goal of CARES Act was to prevent severe economic downturn. The CARES Act also provided for temporary interest only or payment deferral modifications for loans without classifying them as troubled debt restructurings under current accounting rules. Additional government-backed hardship relief measures were signed into law in early 2021, as well as extension of many of the CARES Act provisions, throughout 2021 and 2022. Due to the COVID-19 pandemic, market interest rates declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time. On March 16, 2020, the Federal Open Market Committee ("FOMC") reduced the target federal funds rate range to 0.00 % to 0.25 %, at which it remained until March 2022, when the FOMC began to rapidly increase market interest rates in response to high levels of inflation that arose in the U.S. economy. From March 2022 through July 31, 2023, the FOMC increased market rates from 0.00% to a target range of 5.25 % to 5.50 %. These rapid increases in interest rates, the impact of future rate increases or decreases, high levels of inflation and other lingering effects of the COVID-19 outbreak may adversely affect the Company’s financial condition and results of operations, as well as business and consumer confidence. Economic uncertainties remain which can negatively impact net interest income and noninterest income. |
Allowance for Credit Losses | Allowance for Credit Losses : Held to Maturity Debt Securities The allowance for credit losses on held to maturity securities is a contra-asset valuation account that is deducted from the amortized cost basis of held to maturity securities to present management's best estimate of the net amount expected to be collected. Held to maturity securities are charged-off against the allowance when deemed uncollectible. Adjustments to the allowance are reported in our income statement as a component of provision for credit losses. Management measures expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. As of December 31, 2023 and 2022, our held to maturity securities consisted of U.S. government agencies, treasury securities, municipal securities, collateralized mortgage obligations and mortgage-backed securities issued by the U.S. government and its agencies. With regard to the treasuries, collateralized mortgage obligations 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 as of December 31, 2023 and 2022. Management has made the accounting policy election to exclude accrued interest receivable on held to maturity securities from the estimate of credit losses. Available for Sale Debt Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the securities amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of the cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected are less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive loss. Changes in the allowance for credit losses are recorded as provisions for or reversal of credit loss expense. Losses are charged against the allowance when management believes a security is uncollectible or when either of the criteria regarding intent to sell or required to sell is met. Accrued interest receivable on securities is excluded from the estimate of credit losses. Loans The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected over the lifetime of the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. We use the weighted-average remaining maturity method (WARM method) as the basis for the estimation of expected credit losses. The WARM method uses a historical average annual charge-off rate. This average annual charge-off rate contains loss content over a historical lookback period and is used as a foundation for estimating the credit loss reserve for the remaining outstanding balances of loans in a segment at the balance sheet date. The average annual charge-off rate is applied to the contractual term, further adjusted for estimated prepayments, to determine the unadjusted historical charge-off rate. The calculation of the unadjusted historical charge-off rate is then adjusted for current conditions and for reasonable and supportable forecast periods. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in our historic loss factors. The allowance for credit losses is measured on a collective (pool or segment) basis when similar risk characteristics exist. Our loan portfolio segments include both regulatory call report codes and by internally identified risk ratings for our commercial loan segments and by delinquency status for our consumer loan segments. We also have separately identified internally originated SBA loans and SBA loans acquired from Westbound Bank in 2018 for inherent risk analysis. Accrued interest receivable on loans is excluded from the estimate of credit losses. Below is a summary of the segments and certain of the inherent risks in the Company’s loan portfolio: Commercial and industrial: This portfolio segment includes general secured and unsecured commercial loans which are not secured by real estate or may be secured by real estate but made for the primary purpose of a short-term revolving line of credit. Credit risks inherent in this portfolio segment include fluctuations in the local and national economy. Construction and development: This portfolio segment includes all loans for the purpose of construction, including both business and residential structures; and real estate development loans, including non-agricultural vacant land. Credit risks inherent in this portfolio include fluctuations in property values, unemployment, and changes in the local and national economy. Commercial real estate: The commercial real estate portfolio segment includes all commercial loans that are secured by real estate, other than those included in the construction and development, farmland, multi-family, and 1-4 family residential segments. Risks inherent in this portfolio segment include fluctuations in property values and changes in the local and national economy impacting the sale or lease of the finished structures. Farmland: The farmland portfolio includes loans that are secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing & pastureland and timberland. This segment includes land with a 1-4 family residential structure if the value of the land exceeds the value of the residence. Risks inherent in this portfolio segment include adverse changes in climate, fluctuations in feed and cattle prices and changes in property values. Consumer: This portfolio segment consists of non-real estate loans to consumers. This includes secured and unsecured loans such as auto and personal loans. The risks inherent in this portfolio segment include those factors that would impact the consumer’s ability to meet their obligations under the loan. These include increases in the local unemployment rate and fluctuations in consumer and business sales. 1-4 family residential: This portfolio segment includes loans to both commercial and consumer borrowers secured by real estate for housing units of up to four families. Risks inherent in this portfolio segment include increases in the local unemployment rate, changes in the local economy and factors that would impact the value of the underlying collateral, such as changes in property values. Multi-family residential: This portfolio segment includes loans secured by structures containing five or more residential housing units. Risks inherent in this portfolio segment include increases to the local unemployment rate, changes in the local economy, and factors that would impact property values. Agricultural: The agricultural portfolio segment includes loans to individuals and companies in the dairy and cattle industries and farmers. Loans in the segment are secured by collateral including cattle, crops and equipment. Risks inherent in this portfolio segment include adverse changes in climate and fluctuations in feed and cattle prices. The following groups of loans are considered to carry specific similar inherent risk characteristics, which the Bank considers separately during its calculation of the allowance for credit losses. These groups of loans are reported within the segments identified in the previous table. Mortgage Warehouse: The mortgage warehouse portfolio, which was discontinued as a product line in May 2023, includes loans in which we purchase mortgage loan ownership interests from unaffiliated mortgage originators that are generally held by us for a period of less than 30-days, typically 5-10 days before they are sold to an approved investor. These loans are consistently underwritten based on standards established by the approved investor. Risks inherent in this portfolio include borrower or mortgage originator fraud. SBA – Acquired Loans The SBA – acquired loans segment consists of partially SBA guaranteed loans that were acquired from Westbound Bank in June 2018. These loans are commercial real estate and commercial and industrial in nature and were underwritten with guidelines that are less conservative than our Company. Risks inherent in this portfolio include increases in interest rates, as most are variable rate loans, generally lower levels of borrower equity, less conservative underwriting guidelines, fluctuations in real estate values and changes in the local and national economy. SBA – Originated Loans The SBA – originated loans segment consists of loans that are partially guaranteed by the SBA and were originated and underwritten by Guaranty Bank & Trust loan officers. Risks inherent in this portfolio include increases in interest rates due to variable rate structures, generally lower levels of borrower equity or net worth, fluctuations in real estate values and changes in the local and national economy. In general, the loans in our portfolio have low historical credit losses. The credit quality of loans in our portfolio is impacted by delinquency status and debt service coverage generated by our borrowers’ businesses and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, these types of loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process we refer to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. We consider the majority of our consumer type loans to be “seasoned” and that the credit quality and current level of delinquencies and defaults represents the level of reserve needed in the allowance for credit losses. If delinquencies and defaults were to increase, we may be required to increase our provision for credit losses, which would adversely affect our results of operations and financial condition. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial and industrial, construction, and commercial real estate loans. Internal risk ratings are a key factor that impact management’s estimates of loss factors used in determining the amount of the allowance for credit losses. Internal risk ratings are updated on a continuous basis. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Credit Quality Indicators - The Company monitors the credit quality of the loans in the various segments by identifying and evaluating credit quality indicators specific to each segment class. This information is incorporated into management’s analysis of the adequacy of the allowance for credit losses. Information for the credit quality indicators is updated monthly or quarterly for classified assets and at least annually for the remainder of the portfolio. The following is a discussion of the primary credit quality indicators most closely monitored for the loan portfolio, by class: Commercial and industrial: In assessing risk associated with commercial loans, management considers the business’s cash flow and the value of the underlying collateral to be the primary credit quality indicators. Construction and development: In assessing the credit quality of construction loans, management considers the ability of the borrower to make principal and interest payments in the event that they are unable to sell the completed structure to be a primary credit quality indicator. For real estate development loans, management also considers the likelihood of the successful sale of the constructed properties in the development. Commercial real estate: Management considers the strength of the borrower’s cash flows, changes in property values and occupancy status to be key credit quality indicators of commercial real estate loans. Farmland: In assessing risk associated with farmland loans, management considers the borrower’s cash flows and underlying property values to be key credit quality indicators. Consumer: Management considers delinquency status to be the primary credit quality indicator of consumer loans. Others include the debt to income ratio of the borrower, the borrower’s credit history, the availability of other credit to the borrower, the borrower’s past-due history, and, if applicable, the value of the underlying collateral to be primary credit quality indicators. 1-4 family residential: Management considers delinquency status to be the primary credit quality indicator of 1-4 family residential loans. Others include changes in the local economy, changes in property values, and changes in local unemployment rates to be key credit quality indicators of the loans in the 1-4 family residential loan segment. Multi-family residential: Management considers changes in the local economy, changes in property values, vacancy rates and changes in local unemployment rates to be key credit quality indicators of the loans in the multifamily loan segment. Agricultural: In assessing risk associated with agricultural loans, management considers the borrower’s cash flows, the value of the underlying collateral and sources of secondary repayment to be primary credit quality indicators. From time to time, we modify the terms of loans for borrowers experiencing financial difficulties. These modifications may include adjustments such as a lower interest rate, a reduction of principal, or a longer term to maturity. Such modifications are evaluated under FASB's ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which eliminates the recognition and measurement guidance for troubled debt restructurings ("TDRs") by creditors in ASC 310-40. We assess each loan experiencing financial difficulties on a case-by-case basis to determine the appropriate method for allocating an allowance for credit losses. This determination considers factors such as the loan's specific situation, its collateral, and the borrower's prospects for recovery. In some cases, the loan may be grouped with similar loans for allowance consideration, while in others, an individual assessment may be necessary. The allowance for credit loss allocation is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. Reserve for Unfunded Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. |
Premises and Equipment | Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets. Maintenance, repairs and minor improvements are charged to noninterest expense as incurred. The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy: Bank Buildings Up to 40 years Equipment to 10 years Furniture and Fixtures to 7 years Software to 5 years Automobiles to 4 years |
Other Real Estate Owned | Other Real Estate Owned : Assets acquired through, or in lieu of, foreclosure are initially recorded at fair value, less estimated carrying and selling costs, when acquired, establishing a new cost basis. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. |
Transfers of Financial Assets | Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets : Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Impairment is tested for annually or when a triggering event occurs, and exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At the measurement date, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Core deposit intangibles represent premiums paid on acquired deposits based on the estimated fair value of the deposits at the time of purchase. These premiums are amortized over a ten year period. Impairment is tested for annually, and exists when there is significant runoff of these deposits. Management has concluded that there is no impairment to the Company's core deposit intangibles. |
Bank Owned Life Insurance | Bank Owned Life Insurance : The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Income Taxes | Income Taxes : Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Fair Value of Financial Instruments | Fair Values of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. |
Loss Contingencies | Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Derivative Financial Instruments | Derivative Financial Instruments : The Company accounts for its derivatives under ASC 815, “Derivatives and Hedging,” which requires recognition of all derivatives as either assets or liabilities in the balance sheet and requires measurement of those instruments at fair value through adjustments to accumulated other comprehensive loss and/or current earnings, as appropriate. On the date the Company enters into a derivative contract, the Company designates the derivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability or of an unrecognized firm commitment attributable to the hedged risk are recorded in current period operations. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in accumulated other comprehensive loss and subsequently reclassified to operations in the same period(s) that the hedged transaction impacts operations. For free-standing derivative instruments, changes in fair value are reported in current period operations. Prior to entering a hedge transaction, the Company formally documents the relationship between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions along with a formal assessment at both inception of the hedge and on an ongoing basis as to the effectiveness of the derivative instrument in offsetting changes in fair values or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued and the adjustment to fair value of the derivative instrument is recorded in operations. Likewise, if the risk exposure declines to acceptable levels, interest rate swaps may be terminated and the associated cost expensed or amortized and expensed, as appropriate. |
Dividend Restriction | Dividend Restriction : Banking regulations require the maintenance of certain capital levels that may limit the amount of dividends that may be paid. Regulatory capital requirements are more fully disclosed in Note 16. |
Restrictions on Cash | Restrictions on Cash : The Company was not required to have cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements as of December 31, 2023 and 2022 . Deposits held with the Federal Reserve Bank earn interest. |
Stock Compensation | Stock Compensation : In accordance with ASC 718 , “Stock Compensation,” the Company uses the fair value method of accounting for share-based compensation prescribed by the standard. The fair value of options granted is determined using the Black-Scholes option valuation model. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Nonvested restricted stock awards and options are forfeited upon termination, and vested options are subject to a 90-day grace period prior to forfeiture. |
Earnings Per Share | Earnings Per Share : Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. All outstanding nonvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per share includes the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share are presented as if all stock splits and stock dividends were effective from the earliest period presented through the date of issuance of the financial statements. |
Comprehensive Income | Comprehensive Income : Comprehensive income consists of net income and other comprehensive loss. Other comprehensive loss includes unrealized gains and losses on securities available for sale, unrealized gains and losses on securities transferred from available for sale to held to maturity and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity. |
Operating Segments | Operating Segments : While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Revenue Recognition | Revenue Recognition : ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company's revenue-generating transactions are not subject to Topic 606, including revenue generated from financial instruments, such as loans, letters of credit, loan processing fees and investment securities, as well as revenue related to mortgage banking activities, and BOLI, as these activities are subject to other accounting guidance. Descriptions of revenue-generating activities that are within the scope of Topic 606, and are presented in the accompanying consolidated statements of earnings as components of noninterest income, are as follows: • Deposit services . Service charges on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized as incurred in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. • Merchant and debit card fees . Merchant and debit card fees include interchange income that is generated by our customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. Merchant service revenue is derived from third party vendors that process credit card transactions on behalf of our merchant customers. Merchant services revenue is recognized as incurred and is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin. • Fiduciary income . Trust income includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Investment management income is recognized on an accrual basis at the time the services are performed and when we have a right to invoice and are based on either the market value of the assets managed or the services provided. Administrative and advisory services income is recognized as incurred. • Other noninterest income . Other noninterest income includes among other things, mortgage loan origination fees, wire transfer fees, stop payment fees and loan administration fees. The majority of these fees in other noninterest income are not subject to the requirements of Topic 606. Fees that are within the scope of Topic 606 are generally received and recognized as revenue at the time the performance obligations are met. |
Reclassification | Reclassification : Certain amounts in prior period financial statements have been reclassified to conform to current period presentation. These reclassifications are immaterial and have no effect on net income, total assets or stockholders' equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements : In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which eliminates the recognition and measurement guidance for troubled debt restructurings ("TDRs") by creditors in ASC 310-40. The update also enhances disclosure requirements for certain loan restructurings by creditors when a borrower is experiencing financial difficulty. Specially, rather than applying the recognition and measurement guidance for TDRs, an entity will apply the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Finally, the amendments in this ASU require a public business entity to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases in the existing vintage disclosures. The Company adopted this ASU effective on January 1, 2023, and used the prospective method, which did not have a significant impact on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Life of Different Fixed Asset Classes | The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy: Bank Buildings Up to 40 years Equipment to 10 years Furniture and Fixtures to 7 years Software to 5 years Automobiles to 4 years |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity Securities | The following tables summarize the amortized cost and fair value of available for sale and held to maturity securities as of December 31, 2023 and 2022 and the corresponding amounts of gross unrealized gains and losses: December 31, 2023 Amortized Gross Gross Estimated Available for sale: Corporate bonds $ 29,882 $ — $ 3,077 $ 26,805 Municipal securities 2,322 182 — 2,504 Mortgage-backed securities 164,419 1,014 15,621 149,812 Collateralized mortgage obligations 18,757 19 1,702 17,074 Total available for sale $ 215,380 $ 1,215 $ 20,400 $ 196,195 Held to maturity: U.S. government agencies $ 9,292 $ — $ 1,066 $ 8,226 Treasury securities 69,432 — 1,038 68,394 Municipal securities 168,175 923 6,123 162,975 Mortgage-backed securities 119,872 — 15,105 104,767 Collateralized mortgage obligations 37,437 — 7,276 30,161 Total held to maturity $ 404,208 $ 923 $ 30,608 $ 374,523 December 31, 2022 Amortized Gross Gross Estimated Available for sale: Corporate bonds $ 29,964 $ — $ 2,177 $ 27,787 Municipal securities 10,324 326 8 10,642 Mortgage-backed securities 145,896 1 15,556 130,341 Collateralized mortgage obligations 21,981 3 1,827 20,157 Total available for sale $ 208,165 $ 330 $ 19,568 $ 188,927 Held to maturity: U.S. government agencies $ 9,141 $ — $ 1,259 $ 7,882 Treasury securities 133,735 — 2,921 130,814 Municipal securities 191,680 658 8,285 184,053 Mortgage-backed securities 132,693 — 14,708 117,985 Collateralized mortgage obligations 41,759 — 7,425 34,334 Total held to maturity $ 509,008 $ 658 $ 34,598 $ 475,068 |
Schedule of Securities with Gross Unrealized Losses | Information pertaining to available for sale securities with gross unrealized losses as of December 31, 2023 and 2022, for which no allowance for credit losses has been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is detailed in the following tables: Less Than 12 Months 12 Months or Longer Total December 31, 2023 Gross Estimated Gross Estimated Gross Estimated Available for sale: Corporate bonds $ — $ — $ ( 3,077 ) $ 26,805 $ ( 3,077 ) $ 26,805 Mortgage-backed securities ( 742 ) 13,308 ( 14,879 ) 101,889 ( 15,621 ) 115,197 Collateralized mortgage obligations — — ( 1,702 ) 13,976 ( 1,702 ) 13,976 Total available for sale $ ( 742 ) $ 13,308 $ ( 19,658 ) $ 142,670 $ ( 20,400 ) $ 155,978 Less Than 12 Months 12 Months or Longer Total December 31, 2022 Gross Estimated Gross Estimated Gross Estimated Available for sale: Corporate bonds $ ( 1,518 ) $ 20,323 $ ( 659 ) $ 7,464 $ ( 2,177 ) $ 27,787 Municipal securities ( 8 ) 1,659 — — ( 8 ) 1,659 Mortgage-backed securities ( 6,150 ) 74,146 ( 9,406 ) 55,826 ( 15,556 ) 129,972 Collateralized mortgage obligations ( 908 ) 16,575 ( 919 ) 3,411 ( 1,827 ) 19,986 Total available for sale $ ( 8,584 ) $ 112,703 $ ( 10,984 ) $ 66,701 $ ( 19,568 ) $ 179,404 |
Schedule of Proceeds from Sales of Available for Sale Securities and Associated Gains and Losses | Proceeds from the sales of available for sale securities and the associated gains and losses for the years ended December 31, 2023 and 2022 are listed below. There were no securities sold during the year ended December 31, 2021. 2023 2022 2021 Proceeds from sales $ 21,268 $ 26,130 $ — Gross gains 184 234 — Gross losses ( 413 ) ( 62 ) — |
Investments Classified by Contractual Maturity Date | The contractual maturities at December 31, 2023 of available for sale and held to maturity securities at carrying value and estimated fair value are shown below. The Company invests in securities that may 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. Securities not due at a single maturity date are shown separately. Available for Sale Held to Maturity December 31, 2023 Amortized Estimated Amortized Estimated Due within one year $ 2,003 $ 1,979 $ 47,009 $ 46,674 Due after one year through five years 7,540 7,229 68,564 66,189 Due after five years through ten years 22,661 20,101 79,950 77,878 Due after ten years — — 51,376 48,854 Mortgage-backed securities 164,419 149,812 119,872 104,767 Collateralized mortgage obligations 18,757 17,074 37,437 30,161 Total securities $ 215,380 $ 196,195 $ 404,208 $ 374,523 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: 2023 2022 Commercial and industrial $ 287,565 $ 314,067 Real estate: Construction and development 296,639 377,135 Commercial real estate 923,195 887,587 Farmland 186,295 185,817 1-4 family residential 514,603 493,061 Multi-family residential 44,292 45,147 Consumer 57,059 61,394 Agricultural 12,685 13,686 Overdrafts 243 282 Total loans 2,322,576 2,378,176 Net of: Deferred loan fees, net ( 775 ) ( 1,957 ) Allowance for credit losses ( 30,920 ) ( 31,974 ) Total net loans (1) $ 2,290,881 $ 2,344,245 (1) Excludes accrued interest receivable on loans of $ 9.5 million and $ 7.6 million as of December 31, 2023 and 2022, respectively, which is presented separately on the consolidated balance sheets. |
Schedule of Loans to Principal Officers, Directors and Affiliates | Loans to principal officers, directors, and their affiliates during the year ended December 31, 2023, was as follows: December 31, 2023 Beginning balance $ 72,539 New loans 42,661 Effect of changes in composition of related parties ( 492 ) Repayments ( 51,157 ) Ending balance $ 63,551 |
Schedule of Allowance for Credit Losses Activity | The following tables present the activity in the ACL by class of loans for the years ended December 31, 2023, 2022 and 2021: For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 4,382 $ 4,889 $ 12,658 $ 2,008 $ 6,617 $ 490 $ 778 $ 149 $ 3 $ 31,974 (Reversal of) provision for credit losses ( 209 ) ( 1,266 ) ( 124 ) 223 853 31 238 4 250 — Loans charged-off ( 473 ) — ( 277 ) — — — ( 139 ) ( 3 ) ( 312 ) ( 1,204 ) Recoveries 19 — — — — — 68 2 61 150 Ending balance $ 3,719 $ 3,623 $ 12,257 $ 2,231 $ 7,470 $ 521 $ 945 $ 152 $ 2 $ 30,920 For the Year 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 Provision for (reversal of) credit losses 902 668 ( 1,108 ) 310 769 94 283 ( 20 ) 252 2,150 Loans charged-off ( 192 ) — — — — — ( 322 ) — ( 335 ) ( 849 ) Recoveries 72 — 1 — 30 — 55 — 82 240 Ending balance $ 4,382 $ 4,889 $ 12,658 $ 2,008 $ 6,617 $ 490 $ 778 $ 149 $ 3 $ 31,974 For the Year Ended Commercial Construction Commercial Farmland 1-4 family Multi-family Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance $ 4,033 $ 4,735 $ 15,780 $ 1,220 $ 6,313 $ 363 $ 929 $ 239 $ 7 33,619 Provision for (reversal of) 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 |
Summary of Credit Exposure | The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2023: December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 42,646 $ 72,376 $ 38,328 $ 12,864 $ 8,249 $ 12,524 $ 96,215 $ 283,202 Special mention — 16 132 958 147 — 250 1,503 Substandard — 190 — 370 370 153 — 1,083 Nonaccrual — 129 1,528 7 — 79 34 1,777 Total commercial and industrial loans $ 42,646 $ 72,711 $ 39,988 $ 14,199 $ 8,766 $ 12,756 $ 96,499 $ 287,565 Charge-offs $ ( 79 ) $ — $ ( 25 ) $ ( 41 ) $ ( 31 ) $ ( 4 ) $ ( 293 ) $ ( 473 ) Recoveries — — — — — 4 15 19 Current period net $ ( 79 ) $ — $ ( 25 ) $ ( 41 ) $ ( 31 ) $ — $ ( 278 ) $ ( 454 ) Construction and development: Pass $ 86,641 $ 112,347 $ 62,548 $ 7,074 $ 5,915 $ 12,504 $ 9,237 $ 296,266 Special mention — — — — — — — — Substandard — 189 — — — 67 — 256 Nonaccrual — 73 — — — 44 — 117 Total construction and development loans $ 86,641 $ 112,609 $ 62,548 $ 7,074 $ 5,915 $ 12,615 $ 9,237 $ 296,639 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 46,655 $ 368,933 $ 149,536 $ 81,765 $ 54,100 $ 176,509 $ 15,065 $ 892,563 Special mention — 7,000 — — — 333 — 7,333 Substandard — 15,831 6,950 — 49 337 — 23,167 Nonaccrual — — — — 32 100 — 132 Total commercial real estate loans $ 46,655 $ 391,764 $ 156,486 $ 81,765 $ 54,181 $ 177,279 $ 15,065 $ 923,195 Charge-offs $ ( 190 ) $ — $ — $ — $ — $ ( 87 ) $ — $ ( 277 ) Recoveries — — — — — — — — Current period net $ ( 190 ) $ — $ — $ — $ — $ ( 87 ) $ — $ ( 277 ) December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Farmland: Pass $ 25,009 $ 77,371 $ 46,817 $ 8,556 $ 5,599 $ 15,850 $ 6,849 $ 186,051 Special mention — — — — — — — — Substandard — — — — 27 53 — 80 Nonaccrual — — — — — 164 — 164 Total farmland loans $ 25,009 $ 77,371 $ 46,817 $ 8,556 $ 5,626 $ 16,067 $ 6,849 $ 186,295 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential: Pass $ 57,348 $ 143,992 $ 120,964 $ 42,535 $ 28,764 $ 95,198 $ 22,146 $ 510,947 Special mention — — — — — 863 — 863 Substandard — — — — — — — — Nonaccrual — — 1,249 53 175 1,316 — 2,793 Total 1-4 family residential loans $ 57,348 $ 143,992 $ 122,213 $ 42,588 $ 28,939 $ 97,377 $ 22,146 $ 514,603 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Multi-family residential: Pass $ 1,984 $ 18,041 $ 16,496 $ 2,363 $ 3,862 $ 1,492 $ 54 $ 44,292 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 1,984 $ 18,041 $ 16,496 $ 2,363 $ 3,862 $ 1,492 $ 54 $ 44,292 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Consumer and overdrafts: Pass $ 26,161 $ 15,181 $ 5,840 $ 2,449 $ 589 $ 2,307 $ 4,488 $ 57,015 Special mention 6 26 5 — — — — 37 Substandard — — — — — — — — Nonaccrual 19 52 75 25 42 37 — 250 Total consumer loans and overdrafts $ 26,186 $ 15,259 $ 5,920 $ 2,474 $ 631 $ 2,344 $ 4,488 $ 57,302 Charge-offs $ ( 346 ) $ ( 38 ) $ ( 51 ) $ ( 11 ) $ ( 5 ) $ — $ — $ ( 451 ) Recoveries 61 — 4 1 — 23 40 129 Current period net $ ( 285 ) $ ( 38 ) $ ( 47 ) $ ( 10 ) $ ( 5 ) $ 23 $ 40 $ ( 322 ) Agricultural: Pass $ 1,857 $ 1,962 $ 1,078 $ 685 $ 236 $ 604 $ 5,879 $ 12,301 Special mention — — — — — — — — Substandard — — — — — 25 — 25 Nonaccrual — — 256 — 74 29 — 359 Total agricultural loans $ 1,857 $ 1,962 $ 1,334 $ 685 $ 310 $ 658 $ 5,879 $ 12,685 Charge-offs $ — $ — $ — $ — $ — $ ( 3 ) $ — $ ( 3 ) Recoveries — — — — — 2 — 2 Current period net $ — $ — $ — $ — $ — $ ( 1 ) $ — $ ( 1 ) Total loans: Pass $ 288,301 $ 810,203 $ 441,607 $ 158,291 $ 107,314 $ 316,988 $ 159,933 $ 2,282,637 Special mention 6 7,042 137 958 147 1,196 250 9,736 Substandard — 16,210 6,950 370 446 635 — 24,611 Nonaccrual 19 254 3,108 85 323 1,769 34 5,592 Total loans $ 288,326 $ 833,709 $ 451,802 $ 159,704 $ 108,230 $ 320,588 $ 160,217 $ 2,322,576 Charge-offs $ ( 615 ) $ ( 38 ) $ ( 76 ) $ ( 52 ) $ ( 36 ) $ ( 94 ) $ ( 293 ) $ ( 1,204 ) Recoveries 61 — 4 1 — 29 55 150 Total current period net (charge-offs) recoveries $ ( 554 ) $ ( 38 ) $ ( 72 ) $ ( 51 ) $ ( 36 ) $ ( 65 ) $ ( 238 ) $ ( 1,054 ) The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2022: December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 99,750 $ 57,854 $ 19,577 $ 11,797 $ 4,172 $ 12,907 $ 105,628 $ 311,685 Special mention — 131 — 333 — — 905 1,369 Substandard 14 — 246 423 192 23 — 898 Nonaccrual 72 33 10 — — — — 115 Total commercial and industrial loans $ 99,836 $ 58,018 $ 19,833 $ 12,553 $ 4,364 $ 12,930 $ 106,533 $ 314,067 Charge-offs $ — $ — $ ( 67 ) $ — $ — $ — $ ( 125 ) $ ( 192 ) Recoveries — — — — — 32 40 72 Current period net $ — $ — $ ( 67 ) $ — $ — $ 32 $ ( 85 ) $ ( 120 ) Construction and development: Pass $ 179,501 $ 138,388 $ 17,361 $ 8,697 $ 3,443 $ 10,535 $ 16,870 $ 374,795 Special mention 905 — — — — — — 905 Substandard — — — — — — — — Nonaccrual — — — — 1,435 — — 1,435 Total construction and development loans $ 180,406 $ 138,388 $ 17,361 $ 8,697 $ 4,878 $ 10,535 $ 16,870 $ 377,135 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 347,162 $ 147,986 $ 86,897 $ 63,988 $ 51,002 $ 158,384 $ 12,007 $ 867,426 Special mention — — 1,300 — 2,594 3,427 — 7,321 Substandard 1,336 — — — 26 4,207 — 5,569 Nonaccrual — — 251 96 — 6,924 — 7,271 Total commercial real estate loans $ 348,498 $ 147,986 $ 88,448 $ 64,084 $ 53,622 $ 172,942 $ 12,007 $ 887,587 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — 1 — — 1 Current period net $ — $ — $ — $ — $ 1 $ — $ — $ 1 December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Farmland: Pass $ 93,128 $ 51,912 $ 10,284 $ 6,646 $ 5,956 $ 11,741 $ 5,948 $ 185,615 Special mention — — — — — — — — Substandard — — — 31 — 62 — 93 Nonaccrual — — — — — 109 — 109 Total farmland loans $ 93,128 $ 51,912 $ 10,284 $ 6,677 $ 5,956 $ 11,912 $ 5,948 $ 185,817 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential: Pass $ 143,268 $ 128,957 $ 50,140 $ 30,068 $ 27,104 $ 89,678 $ 21,956 $ 491,171 Special mention — — 43 — — 156 — 199 Substandard — — — — — — — — Nonaccrual — 148 — 116 118 1,309 — 1,691 Total 1-4 family residential loans $ 143,268 $ 129,105 $ 50,183 $ 30,184 $ 27,222 $ 91,143 $ 21,956 $ 493,061 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 30 — 30 Current period net $ — $ — $ — $ — $ — $ 30 $ — $ 30 Multi-family residential: Pass $ 18,183 $ 18,331 $ 2,463 $ 4,216 $ 878 $ 985 $ 91 $ 45,147 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 18,183 $ 18,331 $ 2,463 $ 4,216 $ 878 $ 985 $ 91 $ 45,147 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Total Consumer and overdrafts: Pass $ 32,817 $ 11,789 $ 5,455 $ 1,835 $ 3,079 $ 473 $ 6,008 $ 61,456 Special mention 14 4 — 28 4 — — 50 Substandard — — — — — — — — Nonaccrual 17 93 21 12 23 4 — 170 Total consumer loans and overdrafts $ 32,848 $ 11,886 $ 5,476 $ 1,875 $ 3,106 $ 477 $ 6,008 $ 61,676 Charge-offs $ ( 335 ) $ ( 26 ) $ ( 25 ) $ ( 21 ) $ — $ — $ ( 250 ) $ ( 657 ) Recoveries 83 3 6 11 1 33 — 137 Current period net $ ( 252 ) $ ( 23 ) $ ( 19 ) $ ( 10 ) $ 1 $ 33 $ ( 250 ) $ ( 520 ) Agricultural: Pass $ 3,148 $ 1,914 $ 984 $ 491 $ 392 $ 422 $ 6,243 $ 13,594 Special mention — — — — — 3 — 3 Substandard — — — — — 32 — 32 Nonaccrual — — — — 4 53 — 57 Total agricultural loans $ 3,148 $ 1,914 $ 984 $ 491 $ 396 $ 510 $ 6,243 $ 13,686 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Total loans: Pass $ 916,957 $ 557,131 $ 193,161 $ 127,738 $ 96,026 $ 285,125 $ 174,751 $ 2,350,889 Special mention 919 135 1,343 361 2,598 3,586 905 9,847 Substandard 1,350 — 246 454 218 4,324 — 6,592 Nonaccrual 89 274 282 224 1,580 8,399 — 10,848 Total loans $ 919,315 $ 557,540 $ 195,032 $ 128,777 $ 100,422 $ 301,434 $ 175,656 $ 2,378,176 Charge-offs $ ( 335 ) $ ( 26 ) $ ( 92 ) $ ( 21 ) $ — $ — $ ( 375 ) $ ( 849 ) Recoveries 83 3 6 11 2 95 40 240 Total current period net charge-offs $ ( 252 ) $ ( 23 ) $ ( 86 ) $ ( 10 ) $ 2 $ 95 $ ( 335 ) $ ( 609 ) |
Summary of Amortized Cost Basis of Collateral-dependent Loans | The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on the ACL, as of December 31, 2023: December 31, 2023 Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ — $ 217 $ 217 $ 217 Real estate: Commercial real estate 14,527 — 14,527 — Total $ 14,527 $ 217 $ 14,744 $ 217 |
Summary of Payment Status of Loans | The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans and loans 90 days or more past due continuing to accrue interest as of: December 31, 2023 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 621 $ 30 $ 1,656 $ 2,307 $ 285,258 $ 287,565 $ — Real estate: Construction and 315 288 117 720 295,919 296,639 — Commercial real 356 — 132 488 922,707 923,195 — Farmland 226 84 — 310 185,985 186,295 — 1-4 family residential 2,827 1,110 1,612 5,549 509,054 514,603 — Multi-family residential — — — — 44,292 44,292 — Consumer 169 77 162 408 56,651 57,059 — Agricultural 16 — — 16 12,669 12,685 — Overdrafts — — — — 243 243 — Total $ 4,530 $ 1,589 $ 3,679 $ 9,798 $ 2,312,778 $ 2,322,576 $ — December 31, 2022 30 to 59 Days 60 to 89 Days 90 Days Total Current Total Recorded Commercial and industrial $ 440 $ 44 $ 105 $ 589 $ 313,478 $ 314,067 $ — Real estate: Construction and 258 73 1,435 1,766 375,369 377,135 — Commercial real 882 354 6,708 7,944 879,643 887,587 — Farmland 129 79 — 208 185,609 185,817 — 1-4 family residential 2,101 547 572 3,220 489,841 493,061 — Multi-family residential — — — — 45,147 45,147 — Consumer 164 118 70 352 61,042 61,394 — Agricultural 37 10 — 47 13,639 13,686 — Overdrafts — — — — 282 282 — Total $ 4,011 $ 1,225 $ 8,890 $ 14,126 $ 2,364,050 $ 2,378,176 $ — |
Schedule of Nonaccrual Loans | The following table presents information regarding nonaccrual loans as of: 2023 2022 Commercial and industrial $ 1,777 $ 115 Real estate: Construction and development 117 1,435 Commercial real estate 132 7,271 Farmland 164 109 1-4 family residential 2,793 1,691 Consumer and overdrafts 250 170 Agricultural 359 57 Total $ 5,592 $ 10,848 |
Schedule of Financing Receivable, Amortized Cost Basis of Loans | The following table presents the amortized cost basis of loans modified during the year ended December 31, 2023 to borrowers experiencing financial difficulty: For the Year Ended Term Total Class of Financing Receivable Commercial and industrial $ 900 0.00 % 1-4 family residential 57 0.01 % Consumer 12 0.02 % Total loans $ 969 0.03 % |
Schedule of Financing Receivable, Financial Effect of the Loan Modifications | The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the year ended December 31, 2023: Term Extension Loan Type Financial Effect Commercial and industrial Amortization period was extended by a weighted-average period of 0.25 years. 1-4 family residential Amortization period was extended by a weighted-average period of 5.00 years. Consumer Amortization period was extended by a weighted-average period of 0.26 years. |
Schedule of Financing Receivable, Age Analysis of Loans | The following table provides an age analysis of loans made to borrowers experiencing financial difficult that were modified on or after our ASU 2022-02 adoption date of January 1, 2023: Current 30 to 89 Days 90 Days Commercial and industrial $ 900 $ — $ — 1-4 family residential — 57 — Consumer 12 — — Total loans $ 912 $ 57 $ — |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment balances, by type, were as follows: December 31, December 31, Land $ 11,135 $ 11,135 Building and improvements 59,955 59,448 Construction in progress 9,027 4,153 Furniture, fixtures and equipment 20,983 19,708 Automobiles 365 370 101,465 94,814 Less: accumulated depreciation 44,447 40,523 $ 57,018 $ 54,291 |
CORE DEPOSIT INTANGIBLES (Table
CORE DEPOSIT INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite Lived Intangible Assets | Changes in the carrying amount of core deposit intangibles in the accompanying consolidated balance sheets as of December 31 are summarized as follows: 2023 2022 Beginning of year $ 1,859 $ 2,313 Amortization ( 441 ) ( 454 ) End of year $ 1,418 $ 1,859 |
Schedule of Future Amortization Expense | The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2023 was as follows: Year Ended December 31, Amount 2024 $ 424 2025 316 2026 272 2027 270 2028 136 $ 1,418 |
INTEREST-BEARING DEPOSITS (Tabl
INTEREST-BEARING DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interest Bearing Deposits Abstract | |
Schedule of Deposit Liabilities | Interest-bearing deposits, by type of account, were as follows as of: December 31, 2023 December 31, 2022 NOW accounts $ 150,548 $ 225,859 Savings and money market accounts 924,558 1,048,612 Time deposits $250,000 or less 426,145 224,550 Time deposits greater than $250,000 279,038 129,989 $ 1,780,289 $ 1,629,010 |
Schedule of Time Deposit Maturities | Year-end maturities of time deposits, as of December 31, 2023, were as follows: Year Ended December 31, Amount 2024 $ 646,978 2025 49,642 2026 4,183 2027 2,238 2028 2,142 Thereafter — $ 705,183 |
BORROWED MONEY (Tables)
BORROWED MONEY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Maturities | The following table presents the scheduled maturities of FHLB advances and their weighted average rates, each as of December 31, 2023: Year Current Principal Due Fixed rate advances 2024 5.36 % 140,000 Total FHLB advances $ 140,000 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Debt and Other Debentures | Subordinated debt was made up of the following as of: December 31, 2023 December 31, 2022 Trust III Debentures $ 2,062 $ 2,062 DCB Trust I Debentures 5,155 5,155 Subordinated note 34,568 34,436 Other debentures 4,000 7,500 $ 45,785 $ 49,153 Trust III Debentures DCB Trust I Original amount $ 2,062 $ 5,155 Maturity date October 1, 2036 June 15, 2037 Interest due Quarterly Quarterly |
Schedule of Trusts | Trust III DCB Trust I Formation date July 25, 2006 March 29, 2007 Capital trust pass-through securities Number of shares 2,000 5,000 Original liquidation value $ 2,000 $ 5,000 Common securities liquidation value 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 Debentures, the subordinated note and other debentures are as follows : Year Current Principal Due 2024 3.74 % $ 4,000 2025 - 2028 — — Thereafter 4.23 % 42,217 Total scheduled principal payments 46,217 Unamortized debt issuance costs ( 432 ) $ 45,785 |
EQUITY AWARDS (Tables)
EQUITY AWARDS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions | The fair value of options granted was determined using the following weighted-average assumptions as of grant date, for the years ended December 31: 2023 2022 2021 Risk-free interest rate 4.08 % 2.90 % 0.98 % Expected term (in years) 6.50 6.50 6.50 Expected stock price volatility 23.53 % 21.70 % 23.98 % Dividend yield 3.23 % 2.47 % 2.35 % |
Schedule of Stock Option Activity | A summary of stock option activity in the Plan during the years ended December 31, 2023 and 2022 follows: 2023 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 497,820 $ 28.07 5.87 $ 3,402 Granted 52,500 28.72 Exercised ( 29,790 ) 23.46 Forfeited ( 54,850 ) 30.80 Balance, December 31, 2023 465,680 $ 28.12 5.46 $ 2,782 Exercisable at end of period 283,110 $ 26.03 3.87 $ 2,202 2022 Number of Weighted- Weighted- Aggregate Outstanding at beginning of year 502,780 $ 25.77 5.59 $ 5,936 Granted 102,500 35.58 Exercised ( 69,580 ) 22.49 Forfeited ( 37,880 ) 28.16 Balance, December 31, 2022 497,820 $ 28.07 5.87 $ 3,402 Exercisable at end of period 281,340 $ 25.25 4.32 $ 2,648 |
Schedule of Nonvested Stock Option Activity | A summary of nonvested stock option activity in the Plan during the years ended December 31, 2023 and 2022 follows: 2023 Number of Weighted-Average Outstanding at beginning of year 216,480 $ 5.95 Granted 52,500 6.04 Vested ( 65,690 ) 5.63 Forfeited ( 20,720 ) 14.39 Balance, December 31, 2023 182,570 $ 6.10 2022 Number of Weighted-Average Outstanding at beginning of year 207,084 $ 5.23 Granted 102,500 6.98 Vested ( 71,944 ) 5.50 Forfeited ( 21,160 ) 8.86 Balance, December 31, 2022 216,480 $ 5.95 |
Plan Information | Information related to stock options in the Plan is as follows for the years ended: 2023 2022 2021 Intrinsic value of options exercised $ 303 $ 846 $ 1,273 Cash received from options exercised 698 1,565 2,019 Weighted average fair value of options granted 6.04 6.98 5.92 |
Summary of Restricted Stock Awards and Units Activity | A summary of restricted stock activity in the Plan during the years ended December 31, 2023 and 2022 follows: 2023 Number of Weighted-Average Outstanding at beginning of year 18,930 $ 27.51 Granted 5,056 31.96 Vested ( 7,520 ) 27.52 Forfeited ( 1,076 ) 28.93 Balance, December 31, 2023 15,390 $ 28.87 2022 Number of Weighted-Average Outstanding at beginning of year 30,190 $ 27.52 Vested ( 11,260 ) 27.52 Balance, December 31, 2022 18,930 $ 27.51 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Summarizes Other Information Related to Operating Leases | The table below summarizes other information related to our operating leases as of: December 31, 2023 December 31, 2022 Operating leases Operating lease right-of-use assets $ 12,485 $ 12,896 Operating lease liabilities 13,128 13,520 Weighted average remaining lease term Operating leases 7 years 8 years Weighted average discount rate Operating leases 2.28 % 2.00 % The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2028 and thereafter. |
Schedule of Minimum Future Lease Payments Under Non-Cancelable Operating Leases | Minimum future lease payments under these non-cancelable operating leases as of December 31, 2023, are as follows: Year Ended December 31, Amount 2024 $ 2,303 2025 2,134 2026 1,897 2027 1,735 2028 1,688 Thereafter 3,856 Total lease payments 13,613 Less: interest ( 485 ) Present value of lease liabilities $ 13,128 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The consolidated provision for income taxes was as follows as of December 31: 2023 2022 2021 Current federal tax expense $ 6,784 $ 9,991 $ 8,893 Deferred federal tax expense (benefit) 346 ( 1,157 ) ( 143 ) Total $ 7,130 $ 8,834 $ 8,750 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for federal income taxes differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis as of December 31: 2023 2022 2021 Federal statutory income tax at 21 % $ 7,799 $ 10,344 $ 10,197 Tax exempt interest income ( 944 ) ( 1,076 ) ( 1,043 ) Earnings of bank owned life insurance ( 198 ) ( 177 ) ( 235 ) Nondeductible expenses 669 277 180 Other ( 196 ) ( 534 ) ( 349 ) Total $ 7,130 $ 8,834 $ 8,750 |
Schedule of Deferred Tax Asset and Liabilities | The following table summarizes the components of our deferred tax assets and liabilities as of December 31, 2023 and 2022. Our net deferred tax assets are included in other assets in the accompanying consolidated balance sheets. 2023 2022 Deferred tax assets: Allowance for credit losses $ 6,493 $ 6,714 Deferred compensation 1,271 1,132 Unrealized loss on available for sale securities 4,029 4,040 Bonus accrual 385 526 Deferred loan fees, net 163 330 Accretion of acquisition allowance 37 54 Other 297 360 Total deferred tax assets 12,675 13,156 Deferred tax liabilities: Premises and equipment ( 1,187 ) ( 1,494 ) Prepaid expenses ( 375 ) ( 281 ) Intangibles ( 196 ) ( 230 ) Other ( 178 ) ( 55 ) Total deferred tax liabilities ( 1,936 ) ( 2,060 ) Net deferred tax asset $ 10,739 $ 11,096 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 Commitments to extend credit $ 336,036 $ 474,745 Letters of credit 7,536 8,289 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Banking And Thrifts [Abstract] | |
Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios | A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios are presented in the following tables as of: Actual Minimum Required Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Total capital to risk-weighted assets: Consolidated $ 367,526 15.22 % $ 193,232 8.00 % $ 253,617 10.50 % $ 241,540 10.00 % Bank 373,778 15.49 % 193,035 8.00 % 253,359 10.50 % 241,294 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 302,757 12.53 % 144,924 6.00 % 205,309 8.50 % 144,924 6.00 % Bank 343,607 14.24 % 144,777 6.00 % 205,100 8.50 % 193,035 8.00 % Tier 1 capital to average assets: (1) Consolidated 302,757 9.47 % 127,878 4.00 % 127,878 4.00 % n/a Bank 343,607 10.78 % 127,531 4.00 % 127,531 4.00 % 159,414 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 295,540 12.24 % 108,693 4.50 % 169,078 7.00 % n/a Bank 343,607 14.24 % 108,582 4.50 % 168,906 7.00 % 156,841 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, 2022 Total capital to risk-weighted assets: Consolidated $ 358,702 14.37 % $ 199,687 8.00 % $ 262,089 10.50 % $ 249,608 10.00 % Bank 361,125 14.48 % 199,570 8.00 % 261,936 10.50 % 249,463 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 292,966 11.74 % 149,765 6.00 % 212,167 8.50 % 149,765 6.00 % Bank 329,933 13.23 % 149,678 6.00 % 212,044 8.50 % 199,570 8.00 % Tier 1 capital to average assets: (1) Consolidated 292,966 8.77 % 133,614 4.00 % 133,614 4.00 % n/a Bank 329,933 9.89 % 133,375 4.00 % 133,375 4.00 % 166,718 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 285,749 11.45 % 112,324 4.50 % 174,726 7.00 % n/a Bank 329,933 13.23 % 112,258 4.50 % 174,624 7.00 % 162,151 6.50 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of Securities Sold Under Agreements to Repurchase | Information concerning securities sold under agreements to repurchase is summarized as follows as of December 31: 2023 2022 Average balance during the year $ 20,635 $ 8,596 Average interest rate during the year 1.27 % 0.42 % Maximum month-end balance during the year $ 31,644 $ 12,118 Weighted average interest rate at year-end 2.12 % 0.44 % |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets (Liabilities) Measured at Fair Value | The following tables summarize quantitative disclosures about the fair value measurements for each category of financial assets (liabilities) carried at fair value: December 31, 2023 Fair Value Quoted Significant Significant Assets at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 149,812 $ — $ 149,812 $ — Collateralized mortgage obligations 17,074 — 17,074 — Municipal securities 2,504 — 2,504 — Corporate bonds 26,805 — 26,805 — Loans held for sale 976 — — 976 Cash surrender value of life insurance 42,348 — 42,348 — SBA servicing assets 691 — — 691 Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 14,527 — — 14,527 December 31, 2022 Fair Value Quoted Significant Significant Assets at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 130,341 $ — $ 130,341 $ — Collateralized mortgage obligations 20,157 — 20,157 — Municipal securities 10,642 — 10,642 — Corporate bonds 27,787 — 27,787 — Loans held for sale 3,156 — — 3,156 Cash surrender value of life insurance 38,404 — 38,404 — SBA servicing assets 874 — — 874 Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans — — — — |
Schedule of Quantitative Information About Nonrecurring Level 3 Fair Value Measurements | The following table presents quantitative information about nonrecurring Level 3 fair value measurements as of December 31, 2022 . There were no nonrecurring Level 3 fair value measurements requiring quantitative information as of December 31, 2023. December 31, 2022 Fair Value Valuation Unobservable Input(s) Range Other real estate owned $ 38 Appraisal value of collateral Selling costs or other normal adjustments 49 % |
Schedule of Individually Evaluated Collateral Dependent Loans at Fair Value | The following table presents information on individually evaluated collateral dependent loans included in the ACL model as of December 31, 2023. There were no individually evaluated collateral dependent loans included in the ACL model as o f December 31, 2022: Fair Value Measurements Using December 31, 2023 Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ — $ — Real estate: Commercial real estate — — 14,527 14,527 Total $ — $ — $ 14,527 $ 14,527 |
Schedule of Carrying Amounts And Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not previously discussed in this note, as of December 31, 2023 and 2022, 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 $ 89,524 $ 89,524 $ — $ — $ 89,524 Marketable securities held to maturity 404,208 — 374,523 — 374,523 Loans, net 2,290,881 — — 2,187,669 2,187,669 Accrued interest receivable 13,143 — 13,143 — 13,143 Nonmarketable equity securities 24,128 — 24,128 — 24,128 Financial liabilities: Deposits $ 2,633,246 $ 1,928,063 $ 706,074 $ — $ 2,634,137 Securities sold under repurchase agreements 25,172 — 25,172 — 25,172 Accrued interest payable 5,272 — 5,272 — 5,272 Federal Home Loan Bank advances 140,000 — 139,963 — 139,963 Subordinated debt 45,785 — 46,433 — 46,433 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 $ 106,467 $ 106,467 $ — $ — $ 106,467 Marketable securities held to maturity 509,008 — 475,068 — 475,068 Loans, net 2,344,245 — — 2,217,606 2,217,606 Accrued interest receivable 11,555 — 11,555 — 11,555 Nonmarketable equity securities 25,585 — 25,585 — 25,585 Financial liabilities: Deposits $ 2,681,154 $ 2,326,615 $ 351,981 $ — $ 2,678,596 Securities sold under repurchase agreements 7,221 — 7,221 — 7,221 Accrued interest payable 2,348 — 2,348 — 2,348 Federal Home Loan Bank advances 290,000 — 289,926 — 289,926 Subordinated debt 49,153 — 50,025 — 50,025 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ending December 31, 2023: Cash Flow Hedges Available for Sale Securities Held to Maturity Securities Total Beginning balance $ — $ ( 18,400 ) $ ( 5,860 ) $ ( 24,260 ) Unrealized gains (losses) arising during the period — 282 ( 1,104 ) ( 822 ) Tax effect — ( 59 ) — ( 59 ) Amounts reclassified from accumulated other comprehensive loss — ( 181 ) — ( 181 ) Net current period other comprehensive income (loss) — 42 ( 1,104 ) ( 1,062 ) Ending balance $ — $ ( 18,358 ) $ ( 6,964 ) $ ( 25,322 ) The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2022: Cash Flow Hedges Available for Sale Securities Held to Maturity Securities Total Beginning balance $ 188 $ ( 2,744 ) $ 8,861 $ 6,305 Transfer from AFS to HTM — 13,186 ( 13,186 ) — Unrealized gains (losses) arising during the period 497 ( 33,175 ) ( 1,535 ) ( 34,213 ) Tax effect — 4,197 — 4,197 Amounts reclassified from accumulated other comprehensive loss ( 685 ) 136 — ( 549 ) Net current period other comprehensive loss ( 188 ) ( 15,656 ) ( 14,721 ) ( 30,565 ) Ending balance $ — $ ( 18,400 ) $ ( 5,860 ) $ ( 24,260 ) The following are changes in accumulated other comprehensive income by component, net of tax, for the year ended December 31, 2021: Cash Flow Hedges Available for Sale Securities Held to Maturity Securities Total Beginning balance $ ( 1,151 ) $ 10,780 $ — $ 9,629 Transfer from AFS to HTM ( 10,235 ) 10,235 — Unrealized gains (losses) arising during the period 873 ( 6,884 ) ( 1,374 ) ( 7,385 ) Tax effect — 3,595 — 3,595 Amounts reclassified from accumulated other comprehensive loss 466 — — 466 Net current period other comprehensive income (loss) 1,339 ( 13,524 ) 8,861 ( 3,324 ) Ending balance $ 188 $ ( 2,744 ) $ 8,861 $ 6,305 |
Reclassification out of Accumulated Other Comprehensive Loss | The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2023: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Affected Line Item in the Unrealized loss on available for sale securities $ 229 Net realized loss on sale of securities available for sale Tax effect ( 48 ) Tax expense Net of tax $ 181 The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2022: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Affected Line Item in the Statement Where Net Unrealized gain on available for sale securities $ ( 172 ) Net realized gain on sale of securities available for sale Tax effect 36 Tax expense Net of tax $ ( 136 ) Gains on cash flow hedges 867 Other income Tax effect ( 182 ) Tax expense Net of tax $ 685 Total amounts reclassified out of accumulated other comprehensive loss $ 549 The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2021: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Affected Line Item in the Unrealized loss on interest rate termination $ 590 Other expenses Tax effect ( 124 ) Tax expense Net of tax $ 466 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The computations of basic and diluted earnings per share for the Company were as follows (in thousands except per share amounts) as of December 31: 2023 2022 2021 Numerator: Net earnings attributable to Guaranty Bancshares, Inc. $ 30,037 $ 40,447 $ 39,806 Denominator: Weighted-average shares outstanding (basic) 11,693,761 11,980,209 12,065,182 Effect of dilutive securities: Common stock equivalent shares from stock options 44,844 112,638 146,576 Weighted-average shares outstanding (diluted) 11,738,605 12,092,847 12,211,758 Net earnings attributable to Guaranty Bancshares, Inc. per share Basic $ 2.57 $ 3.38 $ 3.30 Diluted $ 2.56 $ 3.34 $ 3.26 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed financial information of Guaranty Bancshares, Inc. follows: December 31, 2023 2022 ASSETS Cash and cash equivalents $ 2,987 $ 6,848 Investment in banking subsidiary 351,367 339,168 Other assets 2,428 1,351 Total assets $ 356,782 $ 347,367 LIABILITIES AND EQUITY Line of credit $ 4,500 $ — Subordinated debt, net 45,785 49,153 Accrued expenses and other liabilities 3,197 3,230 Shareholders’ equity 303,300 294,984 Total liabilities and shareholders’ equity $ 356,782 $ 347,367 |
Condensed Income Statement | For the Years Ended December 31, 2023 2022 2021 Interest income $ 15 $ 8 $ 7 Dividends from Guaranty Bank & Trust 20,000 — 18,000 20,015 8 18,007 Expenses Interest expense 2,506 1,755 916 Other expenses 1,645 1,974 2,520 4,151 3,729 3,436 Income (loss) before income tax and equity in undistributed income of subsidiary 15,864 ( 3,721 ) 14,571 Income tax benefit 912 924 718 Income (loss) before equity in undistributed earnings of subsidiary 16,776 ( 2,797 ) 15,289 Equity in undistributed earnings of subsidiary 13,261 43,244 24,517 Net earnings $ 30,037 $ 40,447 $ 39,806 Comprehensive income $ 28,975 $ 9,882 $ 36,482 |
Condensed Cash Flow Statement | For the Years Ended December 31, 2023 2022 2021 Cash flows from operating activities Net earnings $ 30,037 $ 40,447 $ 39,806 Adjustments: Equity in undistributed subsidiary earnings ( 13,261 ) ( 43,244 ) ( 24,517 ) Stock based compensation 594 688 733 Change in other assets ( 945 ) ( 724 ) ( 176 ) Change in other liabilities ( 60 ) 226 44 Net cash provided by (used in) operating activities 16,365 ( 2,607 ) 15,890 Cash flows from investing activities Net cash provided by investing activities — — — Cash flows from financing activities Proceeds from line of credit 17,500 35,436 10,000 Repayments of borrowings ( 16,500 ) ( 11,093 ) ( 17,000 ) Purchase of treasury stock ( 11,227 ) ( 8,838 ) — Exercise of stock options 698 1,565 2,019 Cash dividends paid ( 10,697 ) ( 10,324 ) ( 9,427 ) Net cash (used in) provided by financing activities ( 20,226 ) 6,746 ( 14,408 ) Net change in cash and cash equivalents ( 3,861 ) 4,139 1,482 Beginning cash and cash equivalents 6,848 2,709 1,227 Ending cash and cash equivalents $ 2,987 $ 6,848 $ 2,709 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended | |||
Mar. 16, 2020 | Dec. 31, 2023 USD ($) Segment Family ResidentialHouse | Dec. 31, 2022 USD ($) | Mar. 27, 2020 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Number of families secured by loans of real estate | Family | 4 | |||
Number of housing units secured by loans from segment | ResidentialHouse | 5 | |||
Goodwill impairment | $ 0 | |||
Number of operating segments | Segment | 1 | |||
Number of reportable operating segments | Segment | 1 | |||
Decrease to retained earnings | $ 156,878,000 | $ 137,565,000 | ||
Core Deposits [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Core deposit amortization period | 10 years | |||
COVID-19 | ||||
Property, Plant and Equipment [Line Items] | ||||
Maximum authorized amount of coronavirus aid, relief and economic security | $ 2,000,000,000,000 | |||
Description of federal fund interest rate | Due to the COVID-19 pandemic, market interest rates declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time. On March 16, 2020, the Federal Open Market Committee ("FOMC") reduced the target federal funds rate range to 0.00% to 0.25%, at which it remained until March 2022, when the FOMC began to rapidly increase market interest rates in response to high levels of inflation that arose in the U.S. economy. From March 2022 through July 31, 2023, the FOMC increased market rates from 0.00% to a target range of 5.25% to 5.50%. | |||
COVID-19 | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Federal open market committee reduced target federal funds interest rate. | 0% | |||
Federal Open Market Committee Increased Market Rates | 5.25% | |||
COVID-19 | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Federal open market committee reduced target federal funds interest rate. | 0.25% | |||
Federal Open Market Committee Increased Market Rates | 5.50% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of the Estimated Useful Life of the Different Fixed Asset Classes (Details) - Maximum | Dec. 31, 2023 |
Bank Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Software | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Automobiles | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
MARKETABLE SECURITIES - Schedul
MARKETABLE SECURITIES - Schedule of Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | $ 215,380 | $ 208,165 |
Gross Unrealized Gain | 1,215 | 330 |
Gross Unrealized Loss | 20,400 | 19,568 |
Estimated Fair Value | 196,195 | 188,927 |
Held to maturity: | ||
Amortized Cost | 404,208 | 509,008 |
Gross Unrealized Gains | 923 | 658 |
Gross Unrealized Losses | 30,608 | 34,598 |
Estimated Fair Value | 374,523 | 475,068 |
U.S. government agencies | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 9,292 | 9,141 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 1,066 | 1,259 |
Estimated Fair Value | 8,226 | 7,882 |
Treasury securities | ||
Held to maturity: | ||
Amortized Cost | 69,432 | 133,735 |
Gross Unrealized Losses | 1,038 | 2,921 |
Estimated Fair Value | 68,394 | 130,814 |
Corporate bonds | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 29,882 | 29,964 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 3,077 | 2,177 |
Estimated Fair Value | 26,805 | 27,787 |
Municipal securities | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 2,322 | 10,324 |
Gross Unrealized Gain | 182 | 326 |
Gross Unrealized Loss | 0 | 8 |
Estimated Fair Value | 2,504 | 10,642 |
Held to maturity: | ||
Amortized Cost | 168,175 | 191,680 |
Gross Unrealized Gains | 923 | 658 |
Gross Unrealized Losses | 6,123 | 8,285 |
Estimated Fair Value | 162,975 | 184,053 |
Mortgage-backed securities | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 164,419 | 145,896 |
Gross Unrealized Gain | 1,014 | 1 |
Gross Unrealized Loss | 15,621 | 15,556 |
Estimated Fair Value | 149,812 | 130,341 |
Held to maturity: | ||
Amortized Cost | 119,872 | 132,693 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 15,105 | 14,708 |
Estimated Fair Value | 104,767 | 117,985 |
Collateralized mortgage obligations | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 18,757 | 21,981 |
Gross Unrealized Gain | 19 | 3 |
Gross Unrealized Loss | 1,702 | 1,827 |
Estimated Fair Value | 17,074 | 20,157 |
Held to maturity: | ||
Amortized Cost | 37,437 | 41,759 |
Gross Unrealized Losses | 7,276 | 7,425 |
Estimated Fair Value | $ 30,161 | $ 34,334 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) Position Security | Dec. 31, 2022 USD ($) Security | Dec. 31, 2021 USD ($) Security | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Available for sale securities transferred to held to maturity | $ 106,157,000 | $ 172,292,000 | $ 0 | $ 106,157,000 | $ 172,292,000 |
Available for sale securities transferred to held to maturity, net of unrealized loss | $ 13,186,000 | 13,186,000 | $ 10,235,000 | ||
Available for sale securities transferred to held to maturity, net of unrealized gain | $ 10,235,000 | ||||
Allowance for credit losses for available for sale debt securities | $ 0 | $ 0 | |||
Number of investment in an unrealized loss position | Position | 233 | ||||
Number of investment in an sale debt securities | Position | 74 | ||||
Percentage of unrealized loss exceeds book value | 20% | ||||
Number of securities other than agencies amount | Security | 0 | 0 | |||
Securities held to maturity | $ 404,208,000 | $ 509,008,000 | |||
Securities held to maturity, nonaccrual | 0 | ||||
Fair value of securities pledged as collateral | $ 317,112,000 | $ 396,584,000 | |||
Number of securities sold | Security | 0 | 0 | |||
Number of held to maturity securities sold | Security | 0 | 0 | 0 | ||
Accumulated other comprehensive income | $ 6,964,000 | $ 5,860,000 | |||
Proceeds From sales | 21,268,000 | 26,130,000 | $ 0 | ||
Gross gains | 184,000 | 234,000 | 0 | ||
Gross losses | (413,000) | $ (62,000) | $ 0 | ||
Past Due | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Securities held to maturity | $ 0 |
MARKETABLE SECURITIES - Securit
MARKETABLE SECURITIES - Securities in Continuous Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Gross Unrealized Losses | ||
Less Than 12 Months | $ (742) | $ (8,584) |
12 Months or Longer | (19,658) | (10,984) |
Total | (20,400) | (19,568) |
Estimated Fair Value | ||
Less Than 12 Months | 13,308 | 112,703 |
12 Months or Longer | 142,670 | 66,701 |
Total | 155,978 | 179,404 |
Corporate bonds | ||
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (1,518) |
12 Months or Longer | (3,077) | (659) |
Total | (3,077) | (2,177) |
Estimated Fair Value | ||
Less Than 12 Months | 0 | 20,323 |
12 Months or Longer | 26,805 | 7,464 |
Total | 26,805 | 27,787 |
Mortgage-backed securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (742) | (6,150) |
12 Months or Longer | (14,879) | (9,406) |
Total | (15,621) | (15,556) |
Estimated Fair Value | ||
Less Than 12 Months | 13,308 | 74,146 |
12 Months or Longer | 101,889 | 55,826 |
Total | 115,197 | 129,972 |
Collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (908) |
12 Months or Longer | (1,702) | (919) |
Total | (1,702) | (1,827) |
Estimated Fair Value | ||
Less Than 12 Months | 0 | 16,575 |
12 Months or Longer | 13,976 | 3,411 |
Total | $ 13,976 | 19,986 |
Municipal securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (8) | |
12 Months or Longer | 0 | |
Total | (8) | |
Estimated Fair Value | ||
Less Than 12 Months | 1,659 | |
12 Months or Longer | 0 | |
Total | $ 1,659 |
MARKETABLE SECURITIES - Contrac
MARKETABLE SECURITIES - Contractual Maturities of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due within one year | $ 2,003 | |
Due after one year through five years | 7,540 | |
Due after five years through ten years | 22,661 | |
Due after ten years | 0 | |
Available-for-sale debt securities, amortized cost basis | 215,380 | $ 208,165 |
Estimated Fair Value | ||
Due within one year | 1,979 | |
Due after one year through five years | 7,229 | |
Due after five years through ten years | 20,101 | |
Due after ten years | 0 | |
Available-for-sale debt securities, estimated fair value | 196,195 | 188,927 |
Held to Maturity Amortized Cost | ||
Due within one year | 47,009 | |
Due after one year through five years | 68,564 | |
Due after five years through ten years | 79,950 | |
Due after ten years | 51,376 | |
Held to Maturity debt securities, amortized cost | 404,208 | 509,008 |
Held to Maturity Estimated Fair Value | ||
Due within one year | 46,674 | |
Due after one year through five years | 66,189 | |
Due after five years through ten years | 77,878 | |
Due after ten years | 48,854 | |
Held to maturity debt securities, estimated fair value | 374,523 | 475,068 |
Mortgage-backed securities | ||
Amortized Cost | ||
Available-for-sale debt securities, amortized cost basis | 164,419 | |
Available-for-sale debt securities, amortized cost basis | 164,419 | 145,896 |
Estimated Fair Value | ||
Available-for-sale debt securities, estimated fair value | 149,812 | |
Available-for-sale debt securities, estimated fair value | 149,812 | 130,341 |
Held to Maturity Amortized Cost | ||
Held to Maturity debt securities, amortized cost | 119,872 | |
Held to Maturity debt securities, amortized cost | 119,872 | 132,693 |
Held to Maturity Estimated Fair Value | ||
Held to maturity debt securities, estimated fair value | 104,767 | |
Held to maturity debt securities, estimated fair value | 104,767 | 117,985 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Available-for-sale debt securities, amortized cost basis | 18,757 | |
Available-for-sale debt securities, amortized cost basis | 18,757 | 21,981 |
Estimated Fair Value | ||
Available-for-sale debt securities, estimated fair value | 17,074 | |
Available-for-sale debt securities, estimated fair value | 17,074 | 20,157 |
Held to Maturity Amortized Cost | ||
Held to Maturity debt securities, amortized cost | 37,437 | |
Held to Maturity debt securities, amortized cost | 37,437 | 41,759 |
Held to Maturity Estimated Fair Value | ||
Held to maturity debt securities, estimated fair value | 30,161 | |
Held to maturity debt securities, estimated fair value | $ 30,161 | $ 34,334 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Loan Portfolio by Type of Loan (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans held for investment: | ||||
Total loans | $ 2,322,576 | $ 2,378,176 | ||
Deferred loan fees, net | (775) | (1,957) | ||
Allowance for credit losses | (30,920) | (31,974) | $ (30,433) | $ (33,619) |
Total net loans | 2,290,881 | 2,344,245 | ||
Commercial and industrial | ||||
Loans held for investment: | ||||
Total loans | 287,565 | 314,067 | ||
Allowance for credit losses | (3,719) | (4,382) | (3,600) | (4,033) |
Construction and development | ||||
Loans held for investment: | ||||
Total loans | 296,639 | 377,135 | ||
Allowance for credit losses | (3,623) | (4,889) | (4,221) | (4,735) |
Commercial real estate | ||||
Loans held for investment: | ||||
Total loans | 923,195 | 887,587 | ||
Allowance for credit losses | (12,257) | (12,658) | (13,765) | (15,780) |
Farmland | ||||
Loans held for investment: | ||||
Total loans | 186,295 | 185,817 | ||
Allowance for credit losses | (2,231) | (2,008) | (1,698) | (1,220) |
1-4 family residential | ||||
Loans held for investment: | ||||
Total loans | 514,603 | 493,061 | ||
Allowance for credit losses | (7,470) | (6,617) | (5,818) | (6,313) |
Multi-family residential | ||||
Loans held for investment: | ||||
Total loans | 44,292 | 45,147 | ||
Allowance for credit losses | (521) | (490) | (396) | (363) |
Consumer | ||||
Loans held for investment: | ||||
Total loans | 57,059 | 61,394 | ||
Allowance for credit losses | (945) | (778) | (762) | (929) |
Agricultural | ||||
Loans held for investment: | ||||
Total loans | 12,685 | 13,686 | ||
Allowance for credit losses | (152) | (149) | (169) | (239) |
Overdrafts | ||||
Loans held for investment: | ||||
Total loans | 243 | 282 | ||
Allowance for credit losses | $ (2) | $ (3) | $ (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 | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accrued interest receivable on loans | $ 9.5 | $ 7.6 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Loans to related parties | $ 63,551 | $ 72,539 | |
Allowance for credit losses provision | 0 | 2,150 | $ (1,700) |
Loans classified in doubtful or loss risk rating | 0 | 0 | |
Interest income if accrual method | 167 | 434 | |
Unfunded commitments of related party loans | $ 30,716 | ||
COVID-19 | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Provision for Other Credit Losses | $ 1,700 | ||
Adjustments to qualitative factors results to provision for loan and lease losses | $ 2,150 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of loans to Principal Officers, Directors and Affiliates (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning Balance | $ 72,539 |
New loans | 42,661 |
Effect of changes in composition of related parties | (492) |
Repayments | (51,157) |
Ending Balance | $ 63,551 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Allowance for Credit Losses Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | $ 31,974 | $ 30,433 | $ 33,619 | |
Provision for (reversal of) for credit losses | 0 | 2,150 | (1,700) | |
Loans charged-off | (1,204) | (849) | (1,641) | |
Recoveries | 150 | 240 | 155 | |
Ending balance | 30,920 | 31,974 | 30,433 | $ 33,619 |
Commercial and industrial | ||||
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | 4,382 | 3,600 | 4,033 | |
Provision for (reversal of) for credit losses | (209) | 902 | (43) | |
Loans charged-off | (473) | (192) | (411) | |
Recoveries | 19 | 72 | 21 | |
Ending balance | 3,719 | 4,382 | 3,600 | 4,033 |
Construction and development | ||||
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | 4,889 | 4,221 | 4,735 | |
Provision for (reversal of) for credit losses | (1,266) | 668 | (515) | |
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | 1 | |
Ending balance | 3,623 | 4,889 | 4,221 | 4,735 |
Commercial real estate | ||||
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | 12,658 | 13,765 | 15,780 | |
Provision for (reversal of) for credit losses | (124) | (1,108) | (1,229) | |
Loans charged-off | (277) | 0 | (816) | |
Recoveries | 0 | 1 | 30 | |
Ending balance | 12,257 | 12,658 | 13,765 | 15,780 |
Farmland | ||||
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | 2,008 | 1,698 | 1,220 | |
Provision for (reversal of) for credit losses | 223 | 310 | 478 | |
Loans charged-off | 0 | 0 | ||
Ending balance | 2,231 | 2,008 | 1,698 | 1,220 |
1-4 family residential | ||||
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | 6,617 | 5,818 | 6,313 | |
Provision for (reversal of) for credit losses | 853 | 769 | (495) | |
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 30 | 0 | |
Ending balance | 7,470 | 6,617 | 5,818 | 6,313 |
Multi-family residential | ||||
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | 490 | 396 | 363 | |
Provision for (reversal of) for credit losses | 31 | 94 | 33 | |
Loans charged-off | 0 | 0 | ||
Ending balance | 521 | 490 | 396 | 363 |
Consumer | ||||
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | 778 | 762 | 929 | |
Provision for (reversal of) for credit losses | 238 | 283 | (51) | |
Loans charged-off | (139) | (322) | (151) | |
Recoveries | 68 | 55 | 35 | |
Ending balance | 945 | 778 | 762 | 929 |
Agricultural | ||||
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | 149 | 169 | 239 | |
Provision for (reversal of) for credit losses | 4 | (20) | (78) | |
Loans charged-off | (3) | 0 | 0 | |
Recoveries | 2 | 0 | 8 | |
Ending balance | 152 | 149 | 169 | 239 |
Overdrafts | ||||
Allowance for credit losses: | ||||
Beginning balance, prior to adoption of ASC 326 | 3 | 4 | 7 | |
Provision for (reversal of) for credit losses | 250 | 252 | 200 | |
Loans charged-off | (312) | (335) | (263) | |
Recoveries | 61 | 82 | 60 | |
Ending balance | $ 2 | $ 3 | $ 4 | $ 7 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Credit Exposure in Company Loan Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | $ 288,326 | $ 919,315 |
Credit Exposure 2022 | 833,709 | 557,540 |
Credit Exposure 2021 | 451,802 | 195,032 |
Credit Exposure 2020 | 159,704 | 128,777 |
Credit Exposure 2019 | 108,230 | 100,422 |
Credit Exposure Prior | 320,588 | 301,434 |
Revolving Loans Amortized Cost | 160,217 | 175,656 |
Total | 2,322,576 | 2,378,176 |
Credit Exposure 2023.Charge - offs | (615) | (335) |
Credit Exposure 2022.Charge - offs | (38) | (26) |
Credit Exposure 2021.Charge - offs | (76) | (92) |
Credit Exposure 2020.Charge - offs | (52) | (21) |
Credit Exposure 2019.Charge - offs | (36) | |
Credit Exposure Prior.Charge - offs | (94) | |
Credit Exposure Revolving Loans Amortized Cost.Charge - offs | (293) | (375) |
Total | (1,204) | (849) |
Credit Exposure 2023, Recoveries | 61 | 83 |
Credit Exposure 2022, Recoveries | 3 | |
Credit Exposure 2021, Recoveries | 4 | 6 |
Credit Exposure 2020, Recoveries | 1 | 11 |
Credit Exposure 2019, Recoveries | 2 | |
Credit Exposure Prior, Recoveries | 29 | 95 |
Credit Exposure Revolving Loans Amortized Cost, Recoveries | 55 | 40 |
Total | 150 | 240 |
Credit Exposure 2023, Current period net | (554) | (252) |
Credit Exposure 2022, Current period net | (38) | (23) |
Credit Exposure 2021, Current period net | (72) | (86) |
Credit Exposure 2020, Current period net | (51) | (10) |
Credit Exposure 2019, Current period net | (36) | 2 |
Credit Exposure Prior,Current period net | (65) | 95 |
Credit Exposure Revolving Loans Amortized Cost,Current period net | (238) | (335) |
Total | (1,054) | (609) |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 288,301 | 916,957 |
Credit Exposure 2022 | 810,203 | 557,131 |
Credit Exposure 2021 | 441,607 | 193,161 |
Credit Exposure 2020 | 158,291 | 127,738 |
Credit Exposure 2019 | 107,314 | 96,026 |
Credit Exposure Prior | 316,988 | 285,125 |
Revolving Loans Amortized Cost | 159,933 | 174,751 |
Total | 2,282,637 | 2,350,889 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 6 | 919 |
Credit Exposure 2022 | 7,042 | 135 |
Credit Exposure 2021 | 137 | 1,343 |
Credit Exposure 2020 | 958 | 361 |
Credit Exposure 2019 | 147 | 2,598 |
Credit Exposure Prior | 1,196 | 3,586 |
Revolving Loans Amortized Cost | 250 | 905 |
Total | 9,736 | 9,847 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 1,350 | |
Credit Exposure 2022 | 16,210 | |
Credit Exposure 2021 | 6,950 | 246 |
Credit Exposure 2020 | 370 | 454 |
Credit Exposure 2019 | 446 | 218 |
Credit Exposure Prior | 635 | 4,324 |
Total | 24,611 | 6,592 |
Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 19 | 89 |
Credit Exposure 2022 | 254 | 274 |
Credit Exposure 2021 | 3,108 | 282 |
Credit Exposure 2020 | 85 | 224 |
Credit Exposure 2019 | 323 | 1,580 |
Credit Exposure Prior | 1,769 | 8,399 |
Revolving Loans Amortized Cost | 34 | |
Total | 5,592 | 10,848 |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 42,646 | 99,836 |
Credit Exposure 2022 | 72,711 | 58,018 |
Credit Exposure 2021 | 39,988 | 19,833 |
Credit Exposure 2020 | 14,199 | 12,553 |
Credit Exposure 2019 | 8,766 | 4,364 |
Credit Exposure Prior | 12,756 | 12,930 |
Revolving Loans Amortized Cost | 96,499 | 106,533 |
Total | 287,565 | 314,067 |
Credit Exposure 2023.Charge - offs | (79) | |
Credit Exposure 2021.Charge - offs | (25) | (67) |
Credit Exposure 2020.Charge - offs | (41) | |
Credit Exposure 2019.Charge - offs | (31) | |
Credit Exposure Prior.Charge - offs | (4) | |
Credit Exposure Revolving Loans Amortized Cost.Charge - offs | (293) | (125) |
Total | (473) | (192) |
Credit Exposure Prior, Recoveries | 4 | 32 |
Credit Exposure Revolving Loans Amortized Cost, Recoveries | 15 | 40 |
Total | 19 | 72 |
Credit Exposure 2023, Current period net | (79) | |
Credit Exposure 2021, Current period net | (25) | (67) |
Credit Exposure 2020, Current period net | (41) | |
Credit Exposure 2019, Current period net | (31) | |
Credit Exposure Prior,Current period net | 32 | |
Credit Exposure Revolving Loans Amortized Cost,Current period net | (278) | (85) |
Total | (454) | (120) |
Commercial and industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 42,646 | 99,750 |
Credit Exposure 2022 | 72,376 | 57,854 |
Credit Exposure 2021 | 38,328 | 19,577 |
Credit Exposure 2020 | 12,864 | 11,797 |
Credit Exposure 2019 | 8,249 | 4,172 |
Credit Exposure Prior | 12,524 | 12,907 |
Revolving Loans Amortized Cost | 96,215 | 105,628 |
Total | 283,202 | 311,685 |
Commercial and industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 16 | 131 |
Credit Exposure 2021 | 132 | |
Credit Exposure 2020 | 958 | 333 |
Credit Exposure 2019 | 147 | |
Revolving Loans Amortized Cost | 250 | 905 |
Total | 1,503 | 1,369 |
Commercial and industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 14 | |
Credit Exposure 2022 | 190 | |
Credit Exposure 2021 | 246 | |
Credit Exposure 2020 | 370 | 423 |
Credit Exposure 2019 | 370 | 192 |
Credit Exposure Prior | 153 | 23 |
Total | 1,083 | 898 |
Commercial and industrial | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 72 | |
Credit Exposure 2022 | 129 | 33 |
Credit Exposure 2021 | 1,528 | 10 |
Credit Exposure 2020 | 7 | |
Credit Exposure Prior | 79 | |
Revolving Loans Amortized Cost | 34 | |
Total | 1,777 | 115 |
Construction and development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 86,641 | 180,406 |
Credit Exposure 2022 | 112,609 | 138,388 |
Credit Exposure 2021 | 62,548 | 17,361 |
Credit Exposure 2020 | 7,074 | 8,697 |
Credit Exposure 2019 | 5,915 | 4,878 |
Credit Exposure Prior | 12,615 | 10,535 |
Revolving Loans Amortized Cost | 9,237 | 16,870 |
Total | 296,639 | 377,135 |
Construction and development | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 86,641 | 179,501 |
Credit Exposure 2022 | 112,347 | 138,388 |
Credit Exposure 2021 | 62,548 | 17,361 |
Credit Exposure 2020 | 7,074 | 8,697 |
Credit Exposure 2019 | 5,915 | 3,443 |
Credit Exposure Prior | 12,504 | 10,535 |
Revolving Loans Amortized Cost | 9,237 | 16,870 |
Total | 296,266 | 374,795 |
Construction and development | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 905 | |
Total | 905 | |
Construction and development | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 189 | |
Credit Exposure Prior | 67 | |
Total | 256 | |
Construction and development | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 73 | |
Credit Exposure 2019 | 1,435 | |
Credit Exposure Prior | 44 | |
Total | 117 | 1,435 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 46,655 | 348,498 |
Credit Exposure 2022 | 391,764 | 147,986 |
Credit Exposure 2021 | 156,486 | 88,448 |
Credit Exposure 2020 | 81,765 | 64,084 |
Credit Exposure 2019 | 54,181 | 53,622 |
Credit Exposure Prior | 177,279 | 172,942 |
Revolving Loans Amortized Cost | 15,065 | 12,007 |
Total | 923,195 | 887,587 |
Credit Exposure 2023.Charge - offs | (190) | |
Credit Exposure Prior.Charge - offs | (87) | |
Total | (277) | |
Credit Exposure 2023, Current period net | (190) | |
Credit Exposure 2019, Current period net | 1 | |
Credit Exposure Prior,Current period net | (87) | |
Total | (277) | 1 |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 46,655 | 347,162 |
Credit Exposure 2022 | 368,933 | 147,986 |
Credit Exposure 2021 | 149,536 | 86,897 |
Credit Exposure 2020 | 81,765 | 63,988 |
Credit Exposure 2019 | 54,100 | 51,002 |
Credit Exposure Prior | 176,509 | 158,384 |
Revolving Loans Amortized Cost | 15,065 | 12,007 |
Total | 892,563 | 867,426 |
Commercial real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 7,000 | |
Credit Exposure 2021 | 1,300 | |
Credit Exposure 2019 | 2,594 | |
Credit Exposure Prior | 333 | 3,427 |
Total | 7,333 | 7,321 |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 1,336 | |
Credit Exposure 2022 | 15,831 | |
Credit Exposure 2021 | 6,950 | |
Credit Exposure 2019 | 49 | 26 |
Credit Exposure Prior | 337 | 4,207 |
Total | 23,167 | 5,569 |
Commercial real estate | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 251 | |
Credit Exposure 2020 | 96 | |
Credit Exposure 2019 | 32 | |
Credit Exposure Prior | 100 | 6,924 |
Total | 132 | 7,271 |
Farmland | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 25,009 | 93,128 |
Credit Exposure 2022 | 77,371 | 51,912 |
Credit Exposure 2021 | 46,817 | 10,284 |
Credit Exposure 2020 | 8,556 | 6,677 |
Credit Exposure 2019 | 5,626 | 5,956 |
Credit Exposure Prior | 16,067 | 11,912 |
Revolving Loans Amortized Cost | 6,849 | 5,948 |
Total | 186,295 | 185,817 |
Farmland | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 25,009 | 93,128 |
Credit Exposure 2022 | 77,371 | 51,912 |
Credit Exposure 2021 | 46,817 | 10,284 |
Credit Exposure 2020 | 8,556 | 6,646 |
Credit Exposure 2019 | 5,599 | 5,956 |
Credit Exposure Prior | 15,850 | 11,741 |
Revolving Loans Amortized Cost | 6,849 | 5,948 |
Total | 186,051 | 185,615 |
Farmland | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2020 | 31 | |
Credit Exposure 2019 | 27 | |
Credit Exposure Prior | 53 | 62 |
Total | 80 | 93 |
Farmland | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure Prior | 164 | 109 |
Total | 164 | 109 |
1-4 family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 57,348 | 143,268 |
Credit Exposure 2022 | 143,992 | 129,105 |
Credit Exposure 2021 | 122,213 | 50,183 |
Credit Exposure 2020 | 42,588 | 30,184 |
Credit Exposure 2019 | 28,939 | 27,222 |
Credit Exposure Prior | 97,377 | 91,143 |
Revolving Loans Amortized Cost | 22,146 | 21,956 |
Total | 514,603 | 493,061 |
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 2023 | 57,348 | 143,268 |
Credit Exposure 2022 | 143,992 | 128,957 |
Credit Exposure 2021 | 120,964 | 50,140 |
Credit Exposure 2020 | 42,535 | 30,068 |
Credit Exposure 2019 | 28,764 | 27,104 |
Credit Exposure Prior | 95,198 | 89,678 |
Revolving Loans Amortized Cost | 22,146 | 21,956 |
Total | 510,947 | 491,171 |
1-4 family residential | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 43 | |
Credit Exposure Prior | 863 | 156 |
Total | 863 | 199 |
1-4 family residential | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2022 | 148 | |
Credit Exposure 2021 | 1,249 | |
Credit Exposure 2020 | 53 | 116 |
Credit Exposure 2019 | 175 | 118 |
Credit Exposure Prior | 1,316 | 1,309 |
Total | 2,793 | 1,691 |
Multi-family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 1,984 | 18,183 |
Credit Exposure 2022 | 18,041 | 18,331 |
Credit Exposure 2021 | 16,496 | 2,463 |
Credit Exposure 2020 | 2,363 | 4,216 |
Credit Exposure 2019 | 3,862 | 878 |
Credit Exposure Prior | 985 | |
Revolving Loans Amortized Cost | 54 | 91 |
Total | 44,292 | 45,147 |
Multi-family residential | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 1,984 | 18,183 |
Credit Exposure 2022 | 18,041 | 18,331 |
Credit Exposure 2021 | 16,496 | 2,463 |
Credit Exposure 2020 | 2,363 | 4,216 |
Credit Exposure 2019 | 3,862 | 878 |
Credit Exposure Prior | 1,492 | 985 |
Revolving Loans Amortized Cost | 54 | 91 |
Total | 44,292 | 45,147 |
Consumer and Overdrafts | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 26,186 | 32,848 |
Credit Exposure 2022 | 15,259 | 11,886 |
Credit Exposure 2021 | 5,920 | 5,476 |
Credit Exposure 2020 | 2,474 | 1,875 |
Credit Exposure 2019 | 631 | 3,106 |
Credit Exposure Prior | 2,344 | 477 |
Revolving Loans Amortized Cost | 4,488 | 6,008 |
Total | 57,302 | 61,676 |
Credit Exposure 2023.Charge - offs | (346) | (335) |
Credit Exposure 2022.Charge - offs | (38) | (26) |
Credit Exposure 2021.Charge - offs | (51) | (25) |
Credit Exposure 2020.Charge - offs | (11) | (21) |
Credit Exposure 2019.Charge - offs | (5) | |
Credit Exposure Revolving Loans Amortized Cost.Charge - offs | (250) | |
Total | (451) | (657) |
Credit Exposure 2023, Recoveries | 61 | 83 |
Credit Exposure 2022, Recoveries | 3 | |
Credit Exposure 2021, Recoveries | 4 | 6 |
Credit Exposure 2020, Recoveries | 1 | 11 |
Credit Exposure 2019, Recoveries | 1 | |
Credit Exposure Prior, Recoveries | 23 | 33 |
Credit Exposure Revolving Loans Amortized Cost, Recoveries | 40 | |
Total | 129 | 137 |
Credit Exposure 2023, Current period net | (285) | (252) |
Credit Exposure 2022, Current period net | (38) | (23) |
Credit Exposure 2021, Current period net | (47) | (19) |
Credit Exposure 2020, Current period net | (10) | (10) |
Credit Exposure 2019, Current period net | (5) | 1 |
Credit Exposure Prior,Current period net | 23 | 33 |
Credit Exposure Revolving Loans Amortized Cost,Current period net | 40 | (250) |
Total | (322) | (520) |
Consumer and Overdrafts | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 26,161 | 32,817 |
Credit Exposure 2022 | 15,181 | 11,789 |
Credit Exposure 2021 | 5,840 | 5,455 |
Credit Exposure 2020 | 2,449 | 1,835 |
Credit Exposure 2019 | 589 | 3,079 |
Credit Exposure Prior | 2,307 | 473 |
Revolving Loans Amortized Cost | 4,488 | 6,008 |
Total | 57,015 | 61,456 |
Consumer and Overdrafts | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 6 | 14 |
Credit Exposure 2022 | 26 | 4 |
Credit Exposure 2021 | 5 | |
Credit Exposure 2020 | 28 | |
Credit Exposure 2019 | 4 | |
Total | 37 | 50 |
Consumer and Overdrafts | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 19 | 17 |
Credit Exposure 2022 | 52 | 93 |
Credit Exposure 2021 | 75 | 21 |
Credit Exposure 2020 | 25 | 12 |
Credit Exposure 2019 | 42 | 23 |
Credit Exposure Prior | 37 | 4 |
Total | 250 | 170 |
Agricultural | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 1,857 | 3,148 |
Credit Exposure 2022 | 1,962 | 1,914 |
Credit Exposure 2021 | 1,334 | 984 |
Credit Exposure 2020 | 685 | 491 |
Credit Exposure 2019 | 310 | 396 |
Credit Exposure Prior | 658 | 510 |
Revolving Loans Amortized Cost | 5,879 | 6,243 |
Total | 12,685 | 13,686 |
Credit Exposure Prior.Charge - offs | (3) | |
Total | (3) | |
Credit Exposure Prior, Recoveries | 2 | |
Total | 2 | |
Credit Exposure Prior,Current period net | (1) | |
Total | (1) | |
Agricultural | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2023 | 1,857 | 3,148 |
Credit Exposure 2022 | 1,962 | 1,914 |
Credit Exposure 2021 | 1,078 | 984 |
Credit Exposure 2020 | 685 | 491 |
Credit Exposure 2019 | 236 | 392 |
Credit Exposure Prior | 604 | 422 |
Revolving Loans Amortized Cost | 5,879 | 6,243 |
Total | 12,301 | 13,594 |
Agricultural | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure Prior | 3 | |
Total | 3 | |
Agricultural | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure Prior | 25 | 32 |
Total | 25 | 32 |
Agricultural | Nonaccrual | ||
Financing Receivable Recorded Investment [Line Items] | ||
Credit Exposure 2021 | 256 | |
Credit Exposure 2019 | 74 | 4 |
Credit Exposure Prior | 29 | 53 |
Total | $ 359 | $ 57 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Amortized Cost Basis of Collateral-dependent Loans (Details) - Collateral Dependent Loans $ in Thousands | Dec. 31, 2023 USD ($) |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | $ 14,744 |
Allowance for Credit Losses Allocation | 217 |
Real Estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 14,527 |
Non-RE | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 217 |
Commercial and industrial | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 217 |
Allowance for Credit Losses Allocation | 217 |
Commercial and industrial | Non-RE | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 217 |
Commercial real estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 14,527 |
Commercial real estate | Real Estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | $ 14,527 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Payment Status of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 2,322,576 | $ 2,378,176 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 4,530 | 4,011 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,589 | 1,225 |
Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 3,679 | 8,890 |
Financial Asset, Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 9,798 | 14,126 |
Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 2,312,778 | 2,364,050 |
Commercial Industrial and Warehouse lending | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 287,565 | 314,067 |
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 | 621 | 440 |
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 | 30 | 44 |
Commercial Industrial and Warehouse lending | Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,656 | 105 |
Commercial Industrial and Warehouse lending | Financial Asset, Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 2,307 | 589 |
Commercial Industrial and Warehouse lending | Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 285,258 | 313,478 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 287,565 | 314,067 |
Construction and development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 296,639 | 377,135 |
Construction and development | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 315 | 258 |
Construction and development | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 288 | 73 |
Construction and development | Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 117 | 1,435 |
Construction and development | Financial Asset, Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 720 | 1,766 |
Construction and development | Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 295,919 | 375,369 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 923,195 | 887,587 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 356 | 882 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 354 |
Commercial real estate | Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 132 | 6,708 |
Commercial real estate | Financial Asset, Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 488 | 7,944 |
Commercial real estate | Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 922,707 | 879,643 |
Farmland | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 186,295 | 185,817 |
Farmland | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 226 | 129 |
Farmland | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 84 | 79 |
Farmland | Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Farmland | Financial Asset, Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 310 | 208 |
Farmland | Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 185,985 | 185,609 |
1-4 family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 514,603 | 493,061 |
1-4 family residential | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 2,827 | 2,101 |
1-4 family residential | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,110 | 547 |
1-4 family residential | Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,612 | 572 |
1-4 family residential | Financial Asset, Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 5,549 | 3,220 |
1-4 family residential | Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 509,054 | 489,841 |
Multi-family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 44,292 | 45,147 |
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 or 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, Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Multi-family residential | Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 44,292 | 45,147 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 57,059 | 61,394 |
Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 169 | 164 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 77 | 118 |
Consumer | Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 162 | 70 |
Consumer | Financial Asset, Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 408 | 352 |
Consumer | Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 56,651 | 61,042 |
Agricultural | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 12,685 | 13,686 |
Agricultural | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 16 | 37 |
Agricultural | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 10 |
Agricultural | Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Agricultural | Financial Asset, Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 16 | 47 |
Agricultural | Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 12,669 | 13,639 |
Overdrafts | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 243 | 282 |
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 | 0 |
Overdrafts | Financing Receivables, Equal to or 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 | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Overdrafts | Financial Asset, Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | $ 243 | $ 282 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 5,592 | $ 10,848 |
Construction and development | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 117 | 1,435 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,777 | 115 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 132 | 7,271 |
Farmland | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 164 | 109 |
1-4 family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,793 | 1,691 |
Consumer and Overdrafts | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 250 | 170 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 359 | $ 57 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Financing Receivable, Amortized Cost Basis of Loans (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Financing Receivable, Past Due [Line Items] | |
Total Class of Financing Receivable | 0.03% |
Term Extension | 969 years |
Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Total Class of Financing Receivable | 0% |
Term Extension | 900 years |
1-4 family residential | |
Financing Receivable, Past Due [Line Items] | |
Total Class of Financing Receivable | 0.01% |
Term Extension | 57 years |
Consumer | |
Financing Receivable, Past Due [Line Items] | |
Total Class of Financing Receivable | 0.02% |
Term Extension | 12 years |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Financing Receivable, Financial Effect of the Loan Modifications (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Period for Financial Effect | Amortization period was extended by a weighted-average period of 0.25 years. |
1-4 family residential | |
Financing Receivable, Past Due [Line Items] | |
Period for Financial Effect | Amortization period was extended by a weighted-average period of 5.00 years. |
Consumer | |
Financing Receivable, Past Due [Line Items] | |
Period for Financial Effect | Amortization period was extended by a weighted-average period of 0.26 years. |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Financing Receivable, Age Analysis of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 2,312,778 | $ 2,364,050 |
Financial Asset, Not Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 912 | |
Financing Receivables, 30 to 89 Days Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 57 | |
Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 3,679 | 8,890 |
Financing Receivables, Equal to or Greater than 90 Days Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | |
Consumer | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 56,651 | 61,042 |
Consumer | Financial Asset, Not Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12 | |
Consumer | Financing Receivables, 30 to 89 Days Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | |
Consumer | Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 162 | 70 |
Consumer | Financing Receivables, Equal to or Greater than 90 Days Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | |
1-4 family residential | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 509,054 | 489,841 |
1-4 family residential | Financial Asset, Not Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | |
1-4 family residential | Financing Receivables, 30 to 89 Days Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 57 | |
1-4 family residential | Financing Receivables, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,612 | $ 572 |
1-4 family residential | Financing Receivables, Equal to or Greater than 90 Days Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | |
Commercial and industrial | Financial Asset, Not Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 900 | |
Commercial and industrial | Financing Receivables, 30 to 89 Days Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | |
Commercial and industrial | Financing Receivables, Equal to or Greater than 90 Days Past Due | ASU 2022-02 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 0 |
CORE DEPOSIT INTANGIBLES - Sche
CORE DEPOSIT INTANGIBLES - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Roll Forward] | |||
Beginning of year | $ 1,859 | $ 2,313 | |
Amortization | (441) | (454) | $ (686) |
End of Year | $ 1,418 | $ 1,859 | $ 2,313 |
CORE DEPOSIT INTANGIBLES - Sc_2
CORE DEPOSIT INTANGIBLES - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2024 | $ 424 | ||
2025 | 316 | ||
2026 | 272 | ||
2027 | 270 | ||
2028 | 136 | ||
Finite-Lived Intangible Assets, Net, Total | $ 1,418 | $ 1,859 | $ 2,313 |
CORE DEPOSIT INTANGIBLES (Addit
CORE DEPOSIT INTANGIBLES (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deposit Assets [Abstract] | |||
Accumulated Amortization | $ 7,113 | $ 6,672 | |
Amortization of Intangible Assets | $ 441 | $ 454 | $ 686 |
PREMISES AND EQUIPMENT - Schedu
PREMISES AND EQUIPMENT - Schedule Of Premises And Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 101,465 | $ 94,814 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 44,447 | 40,523 |
Property, Plant and Equipment, Net, Total | 57,018 | 54,291 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 11,135 | 11,135 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 59,955 | 59,448 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 9,027 | 4,153 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 20,983 | 19,708 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 365 | $ 370 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill [Roll Forward] | |
Beginning of year | $ 32,160 |
End of year | $ 32,160 |
INTEREST -BEARING DEPOSITS - Sc
INTEREST -BEARING DEPOSITS - Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Interest Bearing Deposits Abstract | ||
NOW accounts | $ 150,548 | $ 225,859 |
Savings and money market accounts | 924,558 | 1,048,612 |
Time deposits $250,000 or less | 426,145 | 224,550 |
Time deposits greater than $250,000 | 279,038 | 129,989 |
Interest-bearing | $ 1,780,289 | $ 1,629,010 |
INTEREST -BEARING DEPOSITS - _2
INTEREST -BEARING DEPOSITS - Schedule of Time Deposit Maturities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Interest Bearing Deposits Abstract | |
2024 | $ 646,978 |
2025 | 49,642 |
2026 | 4,183 |
2027 | 2,238 |
2028 | 2,142 |
Thereafter | 0 |
Time Deposits | $ 705,183 |
INTEREST -BEARING DEPOSITS - Na
INTEREST -BEARING DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Interest-bearing | $ 1,780,289 | $ 1,629,010 |
Executive Officers, Directors and Significant Shareholders | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Interest-bearing | $ 40,799 | $ 56,291 |
BORROWED MONEY - Summary of Fix
BORROWED MONEY - Summary of Fixed-Rate Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Total FHLB advances | $ 140,000 | $ 290,000 |
Fixed-rate Advances, With Monthly Interest Payments | ||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
2024 (percent) | 5.36% | 4.74% |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2024 | $ 140,000 | |
Total FHLB advances | $ 140,000 | $ 290,000 |
BORROWED MONEY - Narrative (Det
BORROWED MONEY - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Federal home loan bank advances | $ 140,000 | $ 290,000 |
Line of credit | 4,500 | 0 |
Fixed-rate Advances, With Monthly Interest Payments | ||
Line of Credit Facility [Line Items] | ||
Federal home loan bank advances | $ 140,000 | $ 290,000 |
Weighted average rate | 5.36% | 4.74% |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | $ 25,000 | |
Interest due | quarterly | |
Line of credit facility, maturity month and year | 2024-03 | |
Line of credit | $ 4,500 | |
Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Covenant description, risk-based capital ratio, minimum | 10% | |
Covenant description, tangible net worth | $ 85,000 | |
Covenant description, non-performing assets to equity, maximum | 15% | |
Covenant description, cash flow coverage, minimum | 1.25 | |
Covenant description, other additional debt to total assets maximum | 15% | |
Restrictive covenants, additional debt maximum | $ 500 | |
Floor | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Spread on variable rate | 3.50% | |
Prime Rate | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Spread on variable rate | 8.50% |
SUBORDINATED DEBT - Schedule of
SUBORDINATED DEBT - Schedule of Subordinated Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Subordinated debt | $ 45,785 | $ 49,153 |
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 | 34,568 | 34,436 |
Other debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debt | $ 4,000 | $ 7,500 |
SUBORDINATED DEBT - Narrative (
SUBORDINATED DEBT - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2023 | 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 | $ 45,785 | ||
Subordinated debentures | Trust II Debentures | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures issued | $ 3,100 | ||
Subordinated debentures | Trust II Debentures | 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% | ||
Subordinated debentures | Trust III Debentures | SOFR | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 1.93% | ||
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% | ||
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% | ||
Debenture issued, par value per instrument issued | $ 500 | ||
Debt instrument maturity start date | Nov. 01, 2020 | ||
Debt instrument maturity end date | Nov. 01, 2024 | ||
Long-term Debt | $ 4,000 | ||
Subordinated debentures | Other Debentures Issued in December 2015 | Directors and Related Parties | |||
Debt Instrument [Line Items] | |||
Debenture issued | $ 10,000 | ||
Subordinated debentures | Other Debentures Issued in December 2015 | Minimum | |||
Debt Instrument [Line Items] | |||
Stated annual interest rate | 1% | ||
Subordinated debentures | Other Debentures Issued in December 2015 | Maximum | |||
Debt Instrument [Line Items] | |||
Stated annual interest rate | 4% |
SUBORDINATED DEBT - Schedule _2
SUBORDINATED DEBT - Schedule of Trusts (Details) $ in Thousands | Dec. 31, 2023 USD ($) shares |
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 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 _3
SUBORDINATED DEBT - Schedule of Terms of Subordinated Debentures (Details) - Subordinated debentures $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Trust III Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 2,062 |
Maturity date | Oct. 01, 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 _4
SUBORDINATED DEBT - Schedule of Principal Payments and Weighted Average Rates of Subordinated Debt (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Long-Term Debt, Fiscal Year Maturity [Abstract] | |
Current Weighted Average Rate, 2024 | 3.74% |
2025 - 2028 | 0% |
Thereafter | 4.23% |
Principal Due, 2024 | $ 4,000 |
Principal Due, 2025 - 2028 | 0 |
Thereafter | 42,217 |
Total scheduled principal payments | 46,217 |
Unamortized debt issuance costs | (432) |
Principal payments | $ 45,785 |
EQUITY AWARDS - Narrative (Deta
EQUITY AWARDS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 1,390 | ||
Unrecognized compensation expense, period for recognition | 3 years 1 month 6 days | ||
Restricted Stock | Minimum | Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares permitted for grant (in shares) | 1,100,000 | ||
Grace period for vested options, forfeitures in period | 90 days | ||
2015 Equity Incentive Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term | 10 years | ||
Share-based compensation expense | $ 594 | $ 688 | $ 733 |
2015 Equity Incentive Plan | Employee Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
2015 Equity Incentive Plan | Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 10 years |
EQUITY AWARDS - Schedule of Val
EQUITY AWARDS - Schedule of Valuation Assumptions (Details) - Employee Stock Option | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Risk-free interest rate | 4.08% | 2.90% | 0.98% |
Expected term (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected stock price volatility | 23.53% | 21.70% | 23.98% |
Dividend yield | 3.23% | 2.47% | 2.35% |
EQUITY AWARDS - Schedule of Sto
EQUITY AWARDS - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 497,820 | 502,780 | |
Granted (in shares) | 52,500 | 102,500 | |
Exercised (in shares) | (29,790) | (69,580) | |
Forfeited (in shares) | (54,850) | (37,880) | |
Balance (in shares) | 465,680 | 497,820 | 502,780 |
Exercisable | |||
Outstanding (in shares) | 283,110 | 281,340 | |
Weighted-average exercise price (in USD per share) | $ 26.03 | $ 25.25 | |
Weighted-average remaining contractual life in years | 3 years 10 months 13 days | 4 years 3 months 25 days | |
Aggregate intrinsic value | $ 2,202 | $ 2,648 | |
Weighted-Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 28.07 | $ 25.77 | |
Granted (in USD per share) | 28.72 | 35.58 | |
Exercised (in USD per share) | 23.46 | 22.49 | |
Forfeited (in USD per share) | 30.8 | 28.16 | |
Balance (in USD per share) | $ 28.12 | $ 28.07 | $ 25.77 |
Weighted-Average Remaining Contractual Life in Years | |||
Outstanding | 5 years 5 months 15 days | 5 years 10 months 13 days | 5 years 7 months 2 days |
Aggregate Intrinsic Value | |||
Outstanding | $ 3,402 | $ 5,936 | |
Outstanding | $ 2,782 | $ 3,402 | $ 5,936 |
EQUITY AWARDS - Schedule of Non
EQUITY AWARDS - Schedule of Nonvested Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 216,480 | 207,084 | |
Granted (in shares) | 52,500 | 102,500 | |
Vested (in shares) | (65,690) | (71,944) | |
Forfeited (in shares) | (20,720) | (21,160) | |
Balance (in shares) | 182,570 | 216,480 | 207,084 |
Weighted-Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 5.95 | $ 5.23 | |
Granted (in USD per share) | 6.04 | 6.98 | $ 5.92 |
Vested (in USD per share) | 5.63 | 5.5 | |
Forfeited (in USD per share) | 14.39 | 8.86 | |
Balance (in USD per share) | $ 6.1 | $ 5.95 | $ 5.23 |
EQUITY AWARDS - Information Rel
EQUITY AWARDS - Information Related to Stock Options Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Intrinsic value of options exercised | $ 303 | $ 846 | $ 1,273 |
Cash received from options exercised | $ 698 | $ 1,565 | $ 2,019 |
Weighted average fair value of options granted (in USD per share) | $ 6.04 | $ 6.98 | $ 5.92 |
EQUITY AWARDS - Summary of Rest
EQUITY AWARDS - Summary of Restricted Stock Awards and Units Activity (Details) - Restricted Stock Awards [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Outstanding at beginning of year (in shares) | 18,930 | 30,190 |
Granted (in shares) | 5,056 | |
Vested (in shares) | (7,520) | (11,260) |
Forfeited (in shares) | (1,076) | |
Balance (in shares) | 15,390 | 18,930 |
Weighted-Average Grant Date Fair Value | ||
Outstanding at beginning of year | $ 27.51 | $ 27.52 |
Granted | 31.96 | |
Vested | 27.52 | 27.52 |
Forfeited | 28.93 | |
Balance | $ 28.87 | $ 27.51 |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | 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% | ||
Employee stock ownership plan, total contributions accrued or paid | $ 1,643 | $ 1,576 | $ 1,455 |
Employee stock ownership plan, shares held under plan (in shares) | 1,021,462 | ||
Employee stock ownership plan, unallocated shares (in shares) | 0 | ||
Cash surrender value of life insurance | $ 42,348 | 38,404 | |
Gain on proceeds from life insurance policies | 0 | 0 | 277 |
Bonus expense | 3,764 | 5,177 | 4,867 |
Accrued bonus expense | 1,684 | 2,332 | 2,190 |
Executive Incentive Retirement Plan | Postretirement Life Insurance | Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of life insurance | 42,348 | ||
Executive Incentive Retirement Plan | Postretirement Life Insurance | Nonqualified Plan | Unfunded Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of life insurance | 38,404 | ||
Plan cost | 949 | 796 | $ 738 |
Plan obligation | $ 6,050 | $ 5,388 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating leases, option to extend | 10 years | ||
Operating lease right-of-use assets | $ 12,485 | $ 12,896 | |
Operating lease right-of-use liabilities | 13,128 | 13,520 | |
Occupancy Expenses | |||
Operating leases, rental expense | $ 2,292 | $ 2,236 | $ 2,278 |
Minimum | |||
Operating leases, remaining lease term | 1 year | ||
Maximum | |||
Operating leases, remaining lease term | 12 years |
LEASES - Schedule of Summarizes
LEASES - Schedule of Summarizes Other Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating leases | ||
Operating lease right-of-use assets | $ 12,485 | $ 12,896 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Operating lease liabilities | $ 13,128 | $ 13,520 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities | Liabilities |
Weighted average remaining lease term | ||
Operating leases | 7 years | 8 years |
Weighted average discount rate | ||
Operating leases | 2.28% | 2% |
LEASES - Schedule of Minimum Fu
LEASES - Schedule of Minimum Future Lease Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 2,303 | |
2025 | 2,134 | |
2026 | 1,897 | |
2027 | 1,735 | |
2028 | 1,688 | |
Thereafter | 3,856 | |
Total lease payments | 13,613 | |
Less: interest | (485) | |
Present value of lease liabilities | $ 13,128 | $ 13,520 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current federal tax expense | $ 6,784 | $ 9,991 | $ 8,893 |
Deferred federal tax expense (benefit) | 346 | (1,157) | (143) |
Total | $ 7,130 | $ 8,834 | $ 8,750 |
INCOME TAXES - Income Tax Rate
INCOME TAXES - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax at 21% | $ 7,799 | $ 10,344 | $ 10,197 |
Tax exempt interest income | (944) | (1,076) | (1,043) |
Earnings of bank owned life insurance | (198) | (177) | (235) |
Nondeductible expenses | 669 | 277 | 180 |
Other | (196) | (534) | (349) |
Total | $ 7,130 | $ 8,834 | $ 8,750 |
INCOME TAXES - Income Tax Rat_2
INCOME TAXES - Income Tax Rate Reconciliation (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 21% | 21% | 21% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 6,493 | $ 6,714 |
Deferred compensation | 1,271 | 1,132 |
Unrealized loss on available for sale securities | 4,029 | 4,040 |
Bonus accrual | 385 | 526 |
Deferred loan fees, net | 163 | 330 |
Accretion of acquisition allowance | 37 | 54 |
Other | 297 | 360 |
Total deferred tax assets | 12,675 | 13,156 |
Deferred tax liabilities: | ||
Premises and equipment | (1,187) | (1,494) |
Prepaid expenses | (375) | (281) |
Intangibles | (196) | (230) |
Other | (178) | (55) |
Total deferred tax liabilities | (1,936) | (2,060) |
Net deferred tax asset | $ 10,739 | $ 11,096 |
NONINTEREST INCOME AND NONINTER
NONINTEREST INCOME AND NONINTEREST EXPENSE - Schedule Of Noninterest Income And Noninterest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income, Nonoperating [Abstract] | ||||
Merchant and debit card fees | $ 7,307 | $ 7,121 | $ 6,717 | |
Other noninterest income | $ 685 | |||
Other Expense, Nonoperating [Abstract] | ||||
Occupancy expenses | $ 11,301 | $ 11,129 | $ 10,944 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Derivative [Line Items] | |||||
Swaps cancellation expenses | $ 82,354,000 | $ 79,907,000 | $ 73,278,000 | ||
Interest expense | 59,512,000 | 15,380,000 | 6,992,000 | ||
Gain on swaps cancellation | $ 685,000 | ||||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Notional amount | $ 5,000,000 | ||||
Swaps cancellation expenses | 466,000 | ||||
Outstanding interest rate | 0 | 0 | |||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Interest expense | $ 0 | $ 282,000 | 607,000 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | FHLB Advances | |||||
Derivative [Line Items] | |||||
Notional amount | $ 40,000,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Other Commitments [Line Items] | ||
FHLB letters of credit | $ 5,000,000 | |
Letters of credit | ||
Other Commitments [Line Items] | ||
Potential guarantee obligation | 0 | $ 0 |
Loans Receivable | ||
Other Commitments [Line Items] | ||
Allowance for credit loss | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Commitments and Letters of Credit (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 336,036 | $ 474,745 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 7,536 | $ 8,289 |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Common equity tier 1 capital to risk-weighted assets: | ||
Amount available for dividend payments | $ 10,724 | |
Bank | ||
Common equity tier 1 capital to risk-weighted assets: | ||
Amount available for dividend payments | 56,504 | |
Subordinated debentures | Subordinated Debentures II, Subordinated Debentures III, and DCB Debentures I | ||
Common equity tier 1 capital to risk-weighted assets: | ||
Debenture issued | $ 7,217 | $ 7,217 |
Maximum | ||
Common equity tier 1 capital to risk-weighted assets: | ||
Capital conservation buffer percentage | 2.50% |
REGULATORY MATTERS - Comparison
REGULATORY MATTERS - Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 367,526 | $ 358,702 |
Actual, Ratio | 0.1522 | 0.1437 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 193,232 | $ 199,687 |
Minimum Required for Capital Adequacy Purposes, Ratio | 0.08 | 0.08 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 253,617 | $ 262,089 |
Minimum Required Under Basel III (Including Buffer), Ratio | 0.105 | 0.105 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 241,540 | $ 249,608 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.10 | 0.10 |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 302,757 | $ 292,966 |
Actual, Ratio | 0.1253 | 0.1174 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 144,924 | $ 149,765 |
Minimum Required for Capital Adequacy Purposes, Ratio | 0.06 | 0.06 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 205,309 | $ 212,167 |
Minimum Required Under Basel III (Including Buffer), Ratio | 0.085 | 0.085 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 144,924 | $ 149,765 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.06 | 0.06 |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 302,757 | $ 292,966 |
Actual, Ratio | 0.0947 | 0.0877 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 127,878 | $ 133,614 |
Minimum Required for Capital Adequacy Purposes, Ratio | 0.04 | 0.04 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 127,878 | $ 133,614 |
Minimum Required Under Basel III (Including Buffer), Ratio | 0.04 | 0.04 |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 295,540 | $ 285,749 |
Actual, Ratio | 0.1224 | 0.1145 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 108,693 | $ 112,324 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III (Including Buffer), Amount | $ 169,078 | $ 174,726 |
Minimum Required Under Basel III (Including Buffer), Ratio | 7% | 7% |
Bank | ||
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 373,778 | $ 361,125 |
Actual, Ratio | 0.1549 | 0.1448 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 193,035 | $ 199,570 |
Minimum Required for Capital Adequacy Purposes, Ratio | 0.08 | 0.08 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 253,359 | $ 261,936 |
Minimum Required Under Basel III (Including Buffer), Ratio | 0.105 | 0.105 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 241,294 | $ 249,463 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.10 | 0.10 |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 343,607 | $ 329,933 |
Actual, Ratio | 0.1424 | 0.1323 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 144,777 | $ 149,678 |
Minimum Required for Capital Adequacy Purposes, Ratio | 0.06 | 0.06 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 205,100 | $ 212,044 |
Minimum Required Under Basel III (Including Buffer), Ratio | 0.085 | 0.085 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 193,035 | $ 199,570 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.08 | 0.08 |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 343,607 | $ 329,933 |
Actual, Ratio | 0.1078 | 0.0989 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 127,531 | $ 133,375 |
Minimum Required for Capital Adequacy Purposes, Ratio | 0.04 | 0.04 |
Minimum Required Under Basel III (Including Buffer), Amount | $ 127,531 | $ 133,375 |
Minimum Required Under Basel III (Including Buffer), Ratio | 0.04 | 0.04 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 159,414 | $ 166,718 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.05 | 0.05 |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 343,607 | $ 329,933 |
Actual, Ratio | 0.1424 | 0.1323 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 108,582 | $ 112,258 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III (Including Buffer), Amount | $ 168,906 | $ 174,624 |
Minimum Required Under Basel III (Including Buffer), Ratio | 7% | 7% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 156,841 | $ 162,151 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Additional Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Securities sold under agreements to repurchase | $ 25,172 | $ 7,221 |
SECURITIES SOLD UNDER AGREEME_4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Securities Sold under Agreements to Repurchase (Details) - Securities Sold Under Agreements To Repurchase - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | ||
Average balance during the year | $ 20,635 | $ 8,596 |
Average interest rate during the year | 1.27% | 0.42% |
Maximum month-end balance during the year | $ 31,644 | $ 12,118 |
Weighted average interest rate at year-end | 2.12% | 0.44% |
FAIR VALUE - Schedule of Financ
FAIR VALUE - Schedule of Financial Assets (Liabilities) Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 196,195 | $ 188,927 |
Cash surrender value of life insurance | 42,348 | 38,404 |
Individually evaluated collateral dependent loans | 14,527 | |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 2,187,669 | 2,217,606 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 149,812 | 130,341 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,074 | 20,157 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,504 | 10,642 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 26,805 | 27,787 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 8,226 | 7,882 |
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 | 976 | 3,156 |
Cash surrender value of life insurance | 42,348 | 38,404 |
SBA servicing assets | 691 | 874 |
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 | 149,812 | 130,341 |
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 | 17,074 | 20,157 |
Assets (liabilities) at fair value on a recurring basis: | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,504 | 10,642 |
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 | 26,805 | 27,787 |
Assets at fair value on a nonrecurring basis: | Fair Value | Asset Pledged As Collateral With Right Member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 14,527 | 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 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | ||
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) | 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: | Municipal 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: | 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 at fair value on a nonrecurring basis: | Fair Value | Asset Pledged As Collateral With Right Member | ||
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) | ||
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 | 42,348 | 38,404 |
SBA servicing assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value | ||
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) | 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 | 149,812 | 130,341 |
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 | 17,074 | 20,157 |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,504 | 10,642 |
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 | 26,805 | 27,787 |
Significant Other Observable Inputs (Level 2) | Assets at fair value on a nonrecurring basis: | Fair Value | Asset Pledged As Collateral With Right Member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 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 | 976 | 3,156 |
Cash surrender value of life insurance | 0 | 0 |
SBA servicing assets | 691 | 874 |
Individually evaluated collateral dependent loans | 14,527 | |
Significant Other Unobservable Inputs (Level 3) | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 2,187,669 | 2,217,606 |
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: | Municipal 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: | 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 at fair value on a nonrecurring basis: | Fair Value | Asset Pledged As Collateral With Right Member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | $ 14,527 | $ 0 |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | $ 0 | $ 0 |
Individually evaluated collateral dependent loans | $ 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] | ||
Other real estate owned | $ 0 |
FAIR VALUE - Schedule of Quanti
FAIR VALUE - Schedule of Quantitative Information About Nonrecurring Level 3 Fair Value Measurements (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Assets at fair value on a nonrecurring basis: | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | $ 0 | |
Cost to Sell | Other real estate owned | Appraisal value of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, input (percent) | 0.49 | |
Cost to Sell | Other real estate owned | Appraisal value of collateral | Assets at fair value on a nonrecurring basis: | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | $ 38,000 |
FAIR VALUE - Schedule of Indivi
FAIR VALUE - Schedule of Individually Evaluated Collateral Dependent Loans at Fair Value (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | $ 14,527 |
Significant Other Unobservable Inputs (Level 3) | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | 14,527 |
Commercial Real Estate | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | 14,527 |
Commercial Real Estate | Significant Other Unobservable Inputs (Level 3) | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Individually evaluated collateral dependent loans | $ 14,527 |
FAIR VALUE - Schedule of Carryi
FAIR VALUE - Schedule of Carrying Amounts and Estimated Fair Value of Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Loans, net | $ 14,527 | |
Level 3 Inputs | ||
Financial assets: | ||
Loans, net | 14,527 | |
Reported Value Measurement | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 89,524 | $ 106,467 |
Marketable securities held to maturity | 404,208 | 509,008 |
Loans, net | 2,290,881 | 2,344,245 |
Accrued interest receivable | 13,143 | 11,555 |
Nonmarketable equity securities | 24,128 | 25,585 |
Financial liabilities: | ||
Deposits | 2,633,246 | 2,681,154 |
Securities sold under repurchase agreements | 25,172 | 7,221 |
Accrued interest payable | 5,272 | 2,348 |
Federal Home Loan Bank advances | 140,000 | 290,000 |
Subordinated debt | 45,785 | 49,153 |
Fair Value | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 89,524 | 106,467 |
Marketable securities held to maturity | 374,523 | 475,068 |
Loans, net | 2,187,669 | 2,217,606 |
Accrued interest receivable | 13,143 | 11,555 |
Nonmarketable equity securities | 24,128 | 25,585 |
Financial liabilities: | ||
Deposits | 2,634,137 | 2,678,596 |
Securities sold under repurchase agreements | 25,172 | 7,221 |
Accrued interest payable | 5,272 | 2,348 |
Federal Home Loan Bank advances | 139,963 | 289,926 |
Subordinated debt | 46,433 | 50,025 |
Fair Value | Level 1 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 89,524 | 106,467 |
Marketable securities held to maturity | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Financial liabilities: | ||
Deposits | 1,928,063 | 2,326,615 |
Securities sold under repurchase agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debt | 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 | 374,523 | 475,068 |
Loans, net | 0 | 0 |
Accrued interest receivable | 13,143 | 11,555 |
Nonmarketable equity securities | 24,128 | 25,585 |
Financial liabilities: | ||
Deposits | 706,074 | 351,981 |
Securities sold under repurchase agreements | 25,172 | 7,221 |
Accrued interest payable | 5,272 | 2,348 |
Federal Home Loan Bank advances | 139,963 | 289,926 |
Subordinated debt | 46,433 | 50,025 |
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 | 2,187,669 | 2,217,606 |
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 debt | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Components of AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (24,260) | $ 6,305 | $ 9,629 |
Transfer from AFS to HTM | 0 | 0 | |
Unrealized gains (losses) arising during the period | (822) | (34,213) | (7,385) |
Tax effect | (59) | 4,197 | 3,595 |
Amounts reclassified from accumulated other comprehensive loss | (181) | (549) | 466 |
Total other comprehensive loss | (1,062) | (30,565) | (3,324) |
Ending Balance | (25,322) | (24,260) | 6,305 |
Available-for-sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (18,400) | (2,744) | 10,780 |
Transfer from AFS to HTM | 13,186 | (10,235) | |
Unrealized gains (losses) arising during the period | 282 | (33,175) | (6,884) |
Tax effect | (59) | 4,197 | 3,595 |
Amounts reclassified from accumulated other comprehensive loss | (181) | 136 | 0 |
Total other comprehensive loss | 42 | (15,656) | (13,524) |
Ending Balance | (18,358) | (18,400) | (2,744) |
Held-to-maturity Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (5,860) | 8,861 | 0 |
Transfer from AFS to HTM | (13,186) | 10,235 | |
Unrealized gains (losses) arising during the period | (1,104) | (1,535) | (1,374) |
Tax effect | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Total other comprehensive loss | (1,104) | (14,721) | 8,861 |
Ending Balance | (6,964) | (5,860) | 8,861 |
Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 188 | (1,151) |
Transfer from AFS to HTM | 0 | ||
Unrealized gains (losses) arising during the period | 0 | 497 | 873 |
Tax effect | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | (685) | 466 |
Total other comprehensive loss | 0 | (188) | 1,339 |
Ending Balance | $ 0 | $ 0 | $ 188 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Reclassifications from AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Tax effect | $ 7,130 | $ 8,834 | $ 8,750 |
Net earnings | (30,009) | (40,423) | (39,806) |
Reclassification out of Accumulated Other Comprehensive Loss | Unrealized Gains and (Losses) on Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized gain on sale of securities available for sale | 229 | (172) | |
Tax effect | 48 | 36 | |
Net earnings | (181) | (136) | |
Gains on cash flow hedges | 867 | ||
Tax effect | (182) | ||
Net earnings | 685 | ||
Total amounts reclassified out of accumulated other comprehensive loss | $ 549 | ||
Unrealized loss on interest rate termination | $ 590 | ||
Tax effect | (124) | ||
Net earnings | $ 466 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to noncontrolling interest | $ (28) | $ (24) | $ 0 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net earnings attributable to Guaranty Bancshares, Inc. | $ 30,037 | $ 40,447 | $ 39,806 |
Denominator: | |||
Weighted-average shares outstanding (basic) | 11,693,761 | 11,980,209 | 12,065,182 |
Effect of dilutive securities: | |||
Common stock equivalent shares from stock options | 44,844 | 112,638 | 146,576 |
Weighted-average shares outstanding (diluted) | 11,738,605 | 12,092,847 | 12,211,758 |
Net earnings per share | |||
Basic | $ 2.57 | $ 3.38 | $ 3.3 |
Diluted | $ 2.56 | $ 3.34 | $ 3.26 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Balance Sheet and Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Other assets | $ 56,920 | $ 61,385 | |
Total assets | 3,184,791 | 3,351,495 | |
LIABILITIES AND EQUITY | |||
Subordinated debt, net | 45,785 | 49,153 | |
Accrued expenses and other liabilities | 32,242 | 28,409 | |
Shareholders equity | 303,300 | 294,984 | |
Total liabilities and equity | 3,184,791 | 3,351,495 | |
Income Statement [Abstract] | |||
Interest income | 156,492 | 123,209 | $ 102,550 |
Interest expense | 59,512 | 15,380 | 6,992 |
Income before income taxes | 37,139 | 49,257 | 48,556 |
Income tax benefit | (7,130) | (8,834) | (8,750) |
Net earnings | 30,009 | 40,423 | 39,806 |
Equity in undistributed earnings of subsidiary | 28 | 24 | 0 |
Net earnings attributable to Guaranty Bancshares, Inc. | 30,037 | 40,447 | 39,806 |
Comprehensive income | 28,975 | 9,882 | 36,482 |
Parent Company | |||
ASSETS | |||
Cash and cash equivalents | 2,987 | 6,848 | |
Investment in banking subsidiary | 351,367 | 339,168 | |
Other assets | 2,428 | 1,351 | |
Total assets | 356,782 | 347,367 | |
LIABILITIES AND EQUITY | |||
Line of credit | 4,500 | 0 | |
Subordinated debt, net | 45,785 | 49,153 | |
Accrued expenses and other liabilities | 3,197 | 3,230 | |
Shareholders equity | 303,300 | 294,984 | |
Total liabilities and equity | 356,782 | 347,367 | |
Income Statement [Abstract] | |||
Interest income | 15 | 8 | 7 |
Dividends from Guaranty Bank & Trust | 20,000 | 0 | 18,000 |
Income | 20,015 | 8 | 18,007 |
Interest expense | 2,506 | 1,755 | 916 |
Other expenses | 1,645 | 1,974 | 2,520 |
Expenses | 4,151 | 3,729 | 3,436 |
Income before income taxes | 15,864 | (3,721) | 14,571 |
Income tax benefit | 912 | 924 | 718 |
Net earnings | 16,776 | (2,797) | 15,289 |
Equity in undistributed earnings of subsidiary | 13,261 | 43,244 | 24,517 |
Net earnings attributable to Guaranty Bancshares, Inc. | 30,037 | 40,447 | 39,806 |
Comprehensive income | $ 28,975 | $ 9,882 | $ 36,482 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net Income (Loss) | $ 30,037 | $ 40,447 | $ 39,806 |
Adjustments: | |||
Stock based compensation | 594 | 688 | 733 |
Net cash provided by operating activities | 39,207 | 38,846 | 43,544 |
Cash flows from investing activities | |||
Net cash provided by investing activities | 144,033 | (684,964) | (202,678) |
Cash flows from financing activities | |||
Proceeds from line of credit | 17,500 | 1,000 | 10,000 |
Purchase of treasury stock | (11,227) | (8,838) | 0 |
Exercise of stock options | 698 | 1,565 | 2,019 |
Cash dividends paid | (10,697) | (10,324) | (9,427) |
Net cash (used in) financing activities | (200,183) | 252,980 | 306,948 |
Net change in cash and cash equivalents | (16,943) | (393,138) | 147,814 |
Cash and cash equivalents at beginning of period | 106,467 | 499,605 | 351,791 |
Cash and cash equivalents at end of period | 89,524 | 106,467 | 499,605 |
Parent Company | |||
Cash flows from operating activities | |||
Net Income (Loss) | 30,037 | 40,447 | 39,806 |
Adjustments: | |||
Equity in undistributed subsidiary earnings | (13,261) | (43,244) | (24,517) |
Stock based compensation | 594 | 688 | 733 |
Change in other assets | 945 | (724) | (176) |
Change in other liabilities | (60) | 226 | 44 |
Net cash provided by operating activities | 16,365 | (2,607) | 15,890 |
Cash flows from investing activities | |||
Net cash provided by investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Proceeds from line of credit | 17,500 | 35,436 | 10,000 |
Repayments of borrowings | (16,500) | (11,093) | (17,000) |
Purchase of treasury stock | (11,227) | (8,838) | 0 |
Exercise of stock options | 698 | 1,565 | 2,019 |
Cash dividends paid | (10,697) | (10,324) | (9,427) |
Net cash (used in) financing activities | (20,226) | 6,746 | (14,408) |
Net change in cash and cash equivalents | (3,861) | 4,139 | 1,482 |
Cash and cash equivalents at beginning of period | 6,848 | 2,709 | 1,227 |
Cash and cash equivalents at end of period | $ 2,987 | $ 6,848 | $ 2,709 |