DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 10, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GNTY | ||
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 Registrant Name | GUARANTY BANCSHARES, INC. | ||
Entity Central Index Key | 0001058867 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 12,053,597 | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | TX | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 254.6 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the 2021 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, 2020. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 47,836 | $ 39,907 |
Federal funds sold | 218,825 | 45,246 |
Interest-bearing deposits | 85,130 | 5,561 |
Total cash and cash equivalents | 351,791 | 90,714 |
Securities available for sale | 380,795 | 212,716 |
Securities held to maturity | 155,458 | |
Loans held for sale | 5,542 | 2,368 |
Loans, net of allowance for credit losses of $33,619 and $16,202, respectively | 1,831,737 | 1,690,794 |
Accrued interest receivable | 9,834 | 9,151 |
Premises and equipment, net | 55,212 | 53,431 |
Other real estate owned | 404 | 603 |
Cash surrender value of life insurance | 35,510 | 34,495 |
Core deposit intangible, net | 2,999 | 3,853 |
Goodwill | 32,160 | 32,160 |
Other assets | 34,848 | 32,701 |
Total assets | 2,740,832 | 2,318,444 |
Deposits | ||
Noninterest-bearing | 779,740 | 525,865 |
Interest-bearing | 1,506,650 | 1,430,939 |
Total deposits | 2,286,390 | 1,956,804 |
Securities sold under agreements to repurchase | 15,631 | 11,100 |
Accrued interest and other liabilities | 25,257 | 23,061 |
Line of credit | 12,000 | |
Federal Home Loan Bank advances | 109,101 | 55,118 |
Subordinated debentures | 19,810 | 10,810 |
Total liabilities | 2,468,189 | 2,056,893 |
Commitments and contingencies (see Note 17) | ||
Shareholders' equity | ||
Preferred stock, $5.00 par value, 15,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $1.00 par value, 50,000,000 shares authorized, 12,951,676 and 12,905,097 shares issued, and 10,935,415 and 11,547,443 shares outstanding, respectively | 12,952 | 12,905 |
Additional paid-in capital | 188,032 | 186,692 |
Retained earnings | 113,449 | 98,239 |
Treasury stock, 2,016,261 and 1,357,654 shares at cost | (51,419) | (34,492) |
Accumulated other comprehensive income (loss) | 9,629 | (1,793) |
Total shareholders' equity | 272,643 | 261,551 |
Total liabilities and shareholders' equity | $ 2,740,832 | $ 2,318,444 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for credit losses | $ 33,619 | $ 16,202 |
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) | 12,951,676 | 12,905,097 |
Common stock, shares outstanding (in shares) | 10,935,415 | 11,547,443 |
Treasury stock (in shares) | 2,016,261 | 1,357,654 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income | |||
Loans, including fees | $ 93,335 | $ 90,980 | $ 77,170 |
Securities | |||
Taxable | 4,565 | 5,916 | 6,317 |
Nontaxable | 4,189 | 3,830 | 3,770 |
Federal funds sold and interest-bearing deposits | 953 | 1,835 | 1,201 |
Total interest income | 103,042 | 102,561 | 88,458 |
Interest expense | |||
Deposits | 11,624 | 21,611 | 16,941 |
FHLB advances and federal funds purchased | 470 | 1,389 | 1,865 |
Subordinated debentures | 702 | 648 | 687 |
Other borrowed money | 264 | 43 | 49 |
Total interest expense | 13,060 | 23,691 | 19,542 |
Net interest income | 89,982 | 78,870 | 68,916 |
Provision for credit losses | 13,200 | 1,250 | 2,250 |
Net interest income after provision for credit losses | 76,782 | 77,620 | 66,666 |
Noninterest income | |||
Service charges | 3,064 | 3,715 | 3,600 |
Net realized loss on securities transactions | 0 | (22) | (50) |
Net realized gain on sale of loans | 6,834 | 2,850 | 2,308 |
Other income | 13,139 | 10,419 | 9,445 |
Total noninterest income | 23,037 | 16,962 | 15,303 |
Noninterest expense | |||
Employee compensation and benefits | 37,193 | 35,907 | 32,122 |
Occupancy expenses | 10,220 | 9,834 | 8,398 |
Other expenses | 19,109 | 16,784 | 16,254 |
Total noninterest expense | 66,522 | 62,525 | 56,774 |
Income before income taxes | 33,297 | 32,057 | 25,195 |
Income tax provision | 5,895 | 5,778 | 4,599 |
Net earnings | $ 27,402 | $ 26,279 | $ 20,596 |
Basic earnings per share (in USD per share) | $ 2.47 | $ 2.26 | $ 1.78 |
Diluted earnings per share (in USD per share) | $ 2.46 | $ 2.25 | $ 1.77 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings | $ 27,402 | $ 26,279 | $ 20,596 |
Unrealized gains (losses) on securities | |||
Unrealized holding gains (losses) arising during the period | 12,929 | 9,474 | (3,543) |
Unrealized gains on held to maturity securities transferred to available for sale | 2,265 | ||
Amortization of net unrealized gains on held to maturity securities | 46 | 18 | 32 |
Reclassification adjustment for net losses included in net earnings | 22 | 50 | |
Tax effect | (3,193) | (2,012) | 734 |
Unrealized gains (losses) on securities, net of tax | 12,047 | 7,502 | (2,727) |
Unrealized holding (losses) gains arising during the period on interest rate swaps | (625) | (133) | 178 |
Total other comprehensive income (loss) | 11,422 | 7,369 | (2,549) |
Comprehensive income | $ 38,824 | $ 33,648 | $ 18,047 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Impact of adoption of ASC 326 | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsImpact of adoption of ASC 326 | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2017 | $ 207,345 | $ 11,921 | $ 155,601 | $ 66,037 | $ (20,087) | $ (6,127) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 20,596 | 20,596 | ||||||
Other comprehensive income (loss) | (2,549) | (2,549) | ||||||
Reclassification of certain tax effects from accumulated other comprehensive income | 486 | (486) | ||||||
Exercise of stock options | 327 | 14 | 313 | |||||
Purchase of treasury stock | (4,265) | (4,265) | ||||||
Sale/Issuance of common stock | 29,568 | 900 | 28,668 | |||||
Stock based compensation | 592 | 592 | ||||||
Dividends: Common Stock | (7,031) | (7,031) | ||||||
Ending balance at Dec. 31, 2018 | 244,583 | 12,835 | 185,174 | 80,088 | (24,352) | (9,162) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 26,279 | 26,279 | ||||||
Other comprehensive income (loss) | 7,369 | 7,369 | ||||||
Exercise of stock options | 925 | 39 | 886 | |||||
Purchase of treasury stock | (10,140) | (10,140) | ||||||
Restricted stock grants | 31 | (31) | ||||||
Stock based compensation | 663 | 663 | ||||||
Dividends: Common Stock | (8,128) | (8,128) | ||||||
Ending balance at Dec. 31, 2019 | 261,551 | 12,905 | 186,692 | 98,239 | (34,492) | (1,793) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 27,402 | 27,402 | ||||||
Other comprehensive income (loss) | 11,422 | 11,422 | ||||||
Exercise of stock options | 638 | 27 | 611 | |||||
Purchase of treasury stock | (16,927) | (16,927) | ||||||
Restricted stock grants | 20 | (20) | ||||||
Stock based compensation | 749 | 749 | ||||||
Dividends: Common Stock | (8,599) | (8,599) | ||||||
Ending balance at Dec. 31, 2020 | $ 272,643 | $ (3,593) | $ 12,952 | $ 188,032 | $ 113,449 | $ (3,593) | $ (51,419) | $ 9,629 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | |||
Common stock dividends (in USD per share) | $ 0.78 | $ 0.70 | $ 0.60 |
Impact of adoption of ASC 326, tax | $ 955 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net earnings | $ 27,402 | $ 26,279 | $ 20,596 |
Adjustments to reconcile net earnings to net cash provided from operating activities: | |||
Depreciation | 4,117 | 3,886 | 3,400 |
Amortization | 1,349 | 1,378 | 1,228 |
Deferred taxes | (3,056) | (534) | 68 |
Premium amortization, net of discount accretion | 3,988 | 3,820 | 4,210 |
Net realized loss on securities transactions | 0 | 22 | 50 |
Gain on sale of loans | (6,834) | (2,850) | (2,308) |
Gain on sale of branch operations | 0 | 0 | (830) |
Provision for credit losses | 13,200 | 1,250 | 2,250 |
Origination of loans held for sale | (161,169) | (76,011) | (70,841) |
Proceeds from loans held for sale | 164,829 | 78,288 | 73,250 |
Write-down of other real estate and repossessed assets | 358 | 343 | 407 |
Net loss (gain) on sale of premises, equipment, other real estate owned and other assets | 37 | 78 | (133) |
Stock based compensation | 749 | 663 | 592 |
Net change in accrued interest receivable and other assets | (3,908) | (16,698) | (5,955) |
Net change in accrued interest payable and other liabilities | 1,459 | 12,132 | 2,230 |
Net cash provided by operating activities | 42,521 | 32,046 | 28,214 |
Securities available for sale: | |||
Purchases | (662,046) | (706,238) | (429,762) |
Proceeds from sales | 0 | 3,957 | 411,796 |
Proceeds from maturities and principal repayments | 657,653 | 730,272 | 27,093 |
Securities held to maturity: | |||
Proceeds from maturities and principal repayments | 3,024 | 5,646 | 9,331 |
Cash paid in connection with acquisitions | 0 | 0 | (6,423) |
Net originations of loans | (159,357) | (46,940) | (146,531) |
Purchases of premises and equipment | (5,902) | (5,090) | (2,833) |
Proceeds from sale of premises, equipment, other real estate owned and other assets | 860 | 653 | 3,668 |
Net cash used in investing activities | (165,768) | (17,740) | (108,734) |
Cash flows from financing activities | |||
Net change in deposits | 329,586 | 85,324 | 13,739 |
Net change in securities sold under agreements to repurchase | 4,531 | (1,128) | (651) |
Proceeds from FHLB advances | 390,000 | 260,500 | 391,000 |
Repayment of FHLB advances | (336,017) | (320,518) | (331,517) |
Proceeds from line of credit | 30,000 | 0 | 0 |
Repayment of line of credit | (18,000) | 0 | 0 |
Proceeds from issuance of debentures | 10,000 | 0 | 0 |
Repayments of debentures | (1,000) | (2,000) | (1,000) |
Purchase of treasury stock | (16,927) | (10,140) | (4,265) |
Exercise of stock options | 638 | 925 | 327 |
Cash dividends | (8,487) | (8,065) | (7,031) |
Net cash provided by financing activities | 384,324 | 4,898 | 60,602 |
Net change in cash and cash equivalents | 261,077 | 19,204 | (19,918) |
Cash and cash equivalents at beginning of period | 90,714 | 71,510 | 91,428 |
Cash and cash equivalents at end of period | 351,791 | 90,714 | 71,510 |
Supplemental disclosures of cash flow information | |||
Interest paid | 13,898 | 23,700 | 18,813 |
Income taxes paid | 8,245 | 5,536 | 5,218 |
Supplemental schedule of noncash investing and financing activities | |||
Cash dividends accrued | 2,188 | 2,076 | 2,013 |
Transfer of loans to other real estate owned and repossessed assets | 666 | 340 | 1,304 |
Common stock issued in acquisitions | 0 | 0 | 29,568 |
Acquired banks | |||
Securities held to maturity: | |||
Cash received from acquired banks | $ 0 | $ 0 | $ 24,927 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies followed in the preparation of the consolidated financial statements. The policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Principles of Consolidation : The consolidated financial statements include the accounts of Guaranty Bancshares, Inc. and its wholly-owned subsidiary Guaranty Bank & Trust, N.A., (the “Bank” or "Guaranty Bank & Trust"). All entities combined are collectively referred to as the “Company”. All significant intercompany balances and transactions have been eliminated in consolidation. Non-Bank Investments : Guaranty Bank & Trust has six wholly-owned non-bank subsidiaries, Guaranty Company, Inc., G B Com, Inc., 2800 South Texas Avenue LLC, White Oak Aviation, LLC, Pin Oak Realty Holdings, Inc. and Pin Oak Asset Management, LLC (formerly Pin Oak Energy, LLC). All significant intercompany balances and transactions have been eliminated in consolidation. Nature of Operations : The Company operates several banking locations in Texas. The Company’s main sources of income are derived from granting loans, primarily in East Texas, Central Texas, the Dallas/Fort Worth metropolitan statistical area ("MSA"), and the Houston MSA, and investing in securities issued by the U.S. Treasury, U.S. government agencies and state and political subdivisions. A variety of financial products and services are provided to individual and corporate customers. The primary deposit products are checking accounts, money market accounts and certificates of deposit. The 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 East Texas, Central Texas, the Dallas/Fort Worth MSA and the Houston MSA. Use of Estimates : To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. Actual future results could differ. Cash and Cash Equivalents : Cash and cash equivalents include cash, due from banks, interest-bearing deposits with other banks that have initial maturities less than 90 days and federal funds sold. Net cash flows are reported for loan and deposit transactions, and short-term borrowings with initial maturities less than 90 days. Marketable Securities : Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Management determines the appropriate classification of securities at the time of purchase. Interest income includes amortization and accretion of purchase premiums and discounts. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities that are in an unrealized loss position for credit-related factors, in order to determine if an allowance for credit losses is required. This evaluation is performed on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, any previous allowance for credit loss is written off and the amortized cost basis of the securities is written down to fair value, through earnings . For debt securities that do not meet t he 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) r ecognize 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) r ecognize the noncredit-related component of the fair value decline, if any , in other comprehensive income . The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. To the extent that expected cash flows improve, the standard permits reversal of allowance amounts in the current period earnings . Non-marketable Securities : Other securities, such as stock in the Independent Bankers Financial Corporation, the Federal Reserve Bank, and the Federal Home Loan Bank are accounted for on the cost basis and are carried in other assets. Stock in Valesco Commerce Street Capital, L.P., Valesco Fund II, L.P., Independent Bankers Capital Fund II, L.P., Independent Bankers Capital Fund III, L.P., and Lightspring Capital I, L.P. are accounted for on the cost basis in other assets. Loans Held for Sale : Certain residential mortgage loans are originated for sale in the secondary mortgage loan market. These loans are carried at the lower of cost or estimated fair market 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. Certain Acquired Loans : Under the Financial Accounting Standards Board’s Accounting Standards Codification (ASC) 326, “Financial Instruments – Credit Losses” , loans purchased as part of a business combination that have evidence of credit deterioration since their origination date are to be recorded at amortized cost with an associated allowance for the expected credit loss at the date of the purchase. During 2018, the Company acquired a group of loans through the acquisition of Westbound Bank (“Westbound”), as described in Note 2. These acquired loans were recorded at their estimated fair value at the acquisition date, and were initially classified as purchased non-impaired loans (“acquired performing loans”). As such, none of these loans were subject to conversion to purchased credit deteriorated (“PCD”) when ASC 326 became effective for reporting periods beginning in 2020. These acquired performing loans are accounted for under ASC 310-20, “Nonrefundable Fees and Other Costs” . Performance of certain loans may be monitored and based on management’s assessment of the cash flows and other facts available, and portions of the accretable difference may be delayed or suspended if management deems appropriate. The Company’s policy for determining when to discontinue accruing interest on acquired performing loans and the subsequent accounting for such loans is essentially the same as the policy for originated loans described above. Allowance for Credit Losses: Available for Sale Debt Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the securities amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of the cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected are less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provisions for or reversal of credit loss expense. Losses are charged against the allowance when management believes an available for sale security is uncollectible or when either of the criteria regarding intent to sell or required to sell is met. Accrued interest receivable on available for sale debt securities is excluded from the estimate of credit losses. Loans The allowance for credit losses (referred to as the “ACL” for the year ended December 31, 2020 and synonymous with the allowance for loan losses for prior periods) 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 amount expected to be charged-off, including any amounts previously 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 economic 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 economic 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 seg ment) basis when similar risk characteristics exist. Our loan portfolio segments include both regulatory call report codes and by internally identified risk ratings for our commercial loan segments and by delinquency status for our consumer loan segments. We also have separately identified our mortgage warehouse loans, internally originated SBA loans, SBA loans acquired from Westbound Bank in 2018 and loans originated under the Paycheck Protection Program (“PPP”) for inherent risk analysis. 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 risk 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 risk 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 of the finished structures. Farmland: The farmland portfolio includes loans that are secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing & pastureland and timberland. This segment includes land with a 1-4 family residential structure if the value of the land exceeds the value of the residence. Risks inherent in this portfolio segment include adverse changes in climate, fluctuations in feed and cattle prices and changes in property values. Consumer: This portfolio segment consists of non-real estate loans to consumers. This includes secured and unsecured loans such as auto and personal loans. The risks inherent in this portfolio segment include those factors that would impact the consumer’s ability to meet their obligations under the loan. These include increases in the local unemployment rate and fluctuations in consumer and business sales. 1-4 family residential: This portfolio segment includes loans to both commercial and consumer borrowers secured by real estate for housing units of up to four families. Risks inherent in this portfolio segment include increases in the local unemployment rate, changes in the local economy and factors that would impact the value of the underlying collateral, such as changes in property values. Multi-family residential: This portfolio segment includes loans secured by structures containing five or more residential housing units. Risks inherent in this portfolio segment include increases to the local unemployment rate, changes in the local economy, and factors that would impact property values. Agricultural: The agricultural portfolio segment includes loans to individuals and companies in the dairy and cattle industries and farmers. Loans in the segment are secured by collateral including cattle, crops and equipment. Risks inherent in this portfolio segment include adverse changes in climate and fluctuations in feed and cattle prices. The following groups of loans are considered to carry specific similar inherent risk characteristics, which the Bank considers separately during its calculation of the allowance for credit losses. These groups of loans are reported within the segments identified in the previous table. Mortgage Warehouse: The mortgage warehouse portfolio includes loans in which we purchase mortgage loan ownership interests from unaffiliated mortgage originators that are generally held by us for a period of less than 30-days, typically 5-10 days before they are sold to an approved investor. These loans are consistently underwritten based on standards established by the approved investor. Risks inherent in this portfolio include borrower or mortgage originator fraud. SBA – Acquired Loans The SBA – acquired loans segment consists of partially SBA guaranteed loans that were acquired from Westbound Bank in June 2018. These loans are commercial real estate and commercial and industrial in nature and were underwritten with guidelines that are less conservative than our Company. Risks inherent in this portfolio include increases in interest rates, as most are variable rate loans, generally lower levels of borrower equity, less conservative underwriting guidelines, fluctuations in real estate values and changes in the local and national economy. SBA – Originated Loans The SBA – originated loans segment consists of loans that are partially guaranteed by the SBA and were originated and underwritten by Bank loan officers. Risks inherent in this portfolio include increases in interest rates due to variable rate structures, generally lower levels of borrower equity or net worth, fluctuations in real estate values and changes in the local and national economy. SBA – Paycheck Protection Program Loans Loans originated under the PPP are 100% government guaranteed by the SBA. As a result, the loans are excluded from the segments above and a minimal reserve estimate was applied to this segment of loans for purposes of calculating the credit loss provision. In general, the loans in our portfolio have low historical credit losses. The credit quality of loans in our portfolio is impacted by delinquency status and debt service coverage generated by our borrowers’ businesses and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, these types of loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process we refer to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. We consider the majority of our consumer type loans to be “seasoned” and that the credit quality and current level of delinquencies and defaults represents the level of reserve needed in the allowance for credit losses. If delinquencies and defaults were to increase, we may be required to increase our provision for credit losses, which would adversely affect our results of operations and financial condition. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial and industrial, construction, and commercial real estate loans. Internal risk ratings are a key factor that impact management’s estimates of loss factors used in determining the amount of the allowance for credit losses. Internal risk ratings are updated on a continuous basis. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are excluded from 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 indictor 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 indictor of 1-4 family residential loans. Others include changes in the local economy, changes in property values, and changes in local unemployment rates to be key credit quality indicators of the loans in the 1-4 family residential loan segment. Multi-family residential: Management considers changes in the local economy, changes in property values, vacancy rates and changes in local unemployment rates to be key credit quality indicators of the loans in the multifamily loan segment. Agricultural: In assessing risk associated with agricultural loans, management considers the borrower’s cash flows, the value of the underlying collateral and sources of secondary repayment to be primary credit quality indicators. From time to time, we modify our loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by us that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. We review each troubled debt restructured loan and determine on a case by case basis if the loan can be grouped with its like segment for allowance consideration or whether it should be individually evaluated for a specific allowance for credit loss allocation. If individually evaluated, an allowance for credit loss allocation is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. In response to the COVID-19 pandemic, the Bank provided financial relief to many of its customers through a 3-month principal and interest payment deferral program or an up to 6-month interest only program. Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES”) Act and the April 7, 2020 Interagency guidance, these loan modifications, and certain subsequent modifications, are not considered to be troubled debt restructurings. Reserve for Unfunded Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets. Maintenance, repairs and minor improvements are charged to noninterest expense as incurred. The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy: Bank Buildings Up to 40 years Equipment to 10 years Furniture and Fixtures to 7 years Software to 5 years Automobiles to 4 years Other Real Estate Owned : Assets acquired through, or in lieu of, foreclosure are initially recorded at fair value, less estimated carrying and selling costs, when acquired, establishing a new cost basis. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Goodwill and Other Intangible Assets : Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Impairment is tested for annually and exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At the measurement date, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Core deposit intangibles represent premiums paid on acquired deposits based on the estimated fair value of the deposits at the time of purchase. These premiums are amortized over a ten year period. Bank Owned Life Insurance : The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income Taxes : Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Fair Values of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Derivative Financial Instruments : The Company accounts for its derivatives under ASC 815, “Derivatives and Hedging,” which requires recognition of all derivatives as either assets or liabilities in the balance sheet and requires measurement of those instruments at fair value through adjustments to accumulated other comprehensive income and/or current earnings, as appropriate. On the date the Company enters into a derivative contract, the Company designates the derivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability or of an unrecognized firm commitment attributable to the hedged risk are recorded in current period operations. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in accumulated other comprehensive income and subsequently reclassified to operations in the same period(s) that the hedged transaction impacts operations. For free-standing derivative instruments, changes in fair value are reported in current period operations. Prior to entering a hedge transaction, the Company formally documents the relationship between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions along with a formal assessment at both inception of the hedge and on an ongoing basis as to the effectiveness of the derivative instrument in offsetting changes in fair values or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued and the adjustment to fair value of the derivative instrument is recorded in operations. Dividend Restriction : Banking regulations require the maintenance of certain capital levels that may limit the amount of divid |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITION | NOTE 2 - ACQUISITION On close of business June 1, 2018, the Company acquired 100% of the outstanding shares of capital stock of Westbound Bank, a Texas banking association (“Westbound”), in exchange for a combination of cash and shares of the Company’s common stock amounting to total consideration of $35,991. Under the terms of the acquisition, the Company issued 899,816 shares of the Company’s common stock in exchange for 2,311,952 shares of Westbound, representing 100% of the outstanding shares of common and preferred stock of Westbound. With the acquisition, the Company has expanded its market into the Houston MSA. Results of operations of the acquired company were included in the Company’s results beginning June 2, 2018. Acquisition-related costs of $1,175 are included in other operating expenses in the Company’s consolidated statement of earnings for the year ended December 31, 2018. The fair value of the common shares issued as part of the consideration paid for Westbound was determined based upon the closing price of the Company’s common shares on the acquisition date. Goodwill of $13,418 arising from the acquisition of Westbound consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. None of the goodwill is expected to be deductible for income tax purposes. The following table summarizes the consideration paid for Westbound and the fair value of the assets acquired and liabilities assumed recognized at the acquisition date: Consideration: Westbound Cash $ 6,423 Equity instruments 29,568 Fair value of total consideration transferred $ 35,991 Cash consideration includes contingent consideration related to an escrow agreement in which $1,750 was retained from amounts paid to Westbound shareholders for payment to Guaranty in the event that certain defined loan relationships experienced actual losses during the three year period following the close of the transaction on June 1, 2018. If the loans defined in the escrow agreement do experience losses, funds from the escrow account will be remitted to Guaranty. If the loans payoff or do not experience losses, funds from the escrow account will be remitted to Westbound shareholders according to terms set forth in the escrow agreement. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition, June 1, 2018. Westbound Cash and due from banks $ 24,927 Investment securities available for sale 15,264 Loans, net of discount 154,687 Accrued interest receivable 651 Premises and equipment 8,625 Core deposit intangible 2,700 Other assets 9,205 Total assets acquired 216,059 Non-interest bearing deposits 40,595 Interest bearing deposits 140,826 Federal Home Loan Bank advances 10,500 Accrued interest and other liabilities 1,565 Total liabilities assumed 193,486 Net assets acquired 22,573 Total consideration paid 35,991 Goodwill $ 13,418 The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date (“acquired performing loans”). The fair value adjustments were determined using discounted contractual cash flows. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination. Acquired performing loans had fair value and gross contractual amounts receivable of $154,687. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3 - MARKETABLE SECURITIES During the first quarter of 2020, the Company transferred all of its investment securities classified as held to maturity to available for sale in order to provide maximum flexibility to address liquidity and capital needs that may result from COVID-19. The Company believes that these transfers are allowable under existing GAAP due to the isolated, non-recurring and unusual events resulting from the pandemic. The following tables summarize the amortized cost and fair value of securities available for sale as of December 31, 2020, and the amortized cost and fair value of securities held to maturity and available for sale, respectively, as of December 31, 2019 and the corresponding amounts of gross unrealized gains and losses: December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ 29,608 $ 1,382 $ 8 $ 30,982 Municipal securities 164,668 11,036 — 175,704 Mortgage-backed securities 104,210 3,041 87 107,164 Collateralized mortgage obligations 64,611 2,335 1 66,945 Total available for sale $ 363,097 $ 17,794 $ 96 $ 380,795 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ 19,667 $ 592 $ — $ 20,259 Municipal securities 16,780 576 8 17,348 Mortgage-backed securities 83,967 550 335 84,182 Collateralized mortgage obligations 89,798 1,146 17 90,927 Total available for sale $ 210,212 $ 2,864 $ 360 $ 212,716 Held to maturity: Municipal securities $ 138,416 $ 4,710 $ 3 $ 143,123 Mortgage-backed securities 14,365 198 13 14,550 Collateralized mortgage obligations 2,677 110 — 2,787 Total held to maturity $ 155,458 $ 5,018 $ 16 $ 160,460 For the year ended December 31, 2020, management evaluated impairment on securities in accordance with ASC 326, which is described further below. There was no impairment for which an allowance for credit losses was recorded for the year ended December 31, 2020. For the year ended December 31, 2019, management evaluated securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warranted such evaluation. Consideration was given to (1) the length of time and the extent to which the fair value has been 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 issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company did not record any OTTI losses on any of its securities for the year ended December 31, 2019. Information pertaining to securities with gross unrealized losses as of December 31, 2020, for which no allowance for credit losses has been recorded, and December 31, 2019, 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, 2020 Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ (8 ) $ 2,493 $ — $ — $ (8 ) $ 2,493 Mortgage-backed securities (87 ) 25,775 — — (87 ) 25,775 Collateralized mortgage obligations — — (1 ) 106 (1 ) 106 Total available for sale $ (95 ) $ 28,268 $ (1 ) $ 106 $ (96 ) $ 28,374 Less Than 12 Months 12 Months or Longer Total December 31, 2019 Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Available for sale: Municipal securities $ (8 ) $ 1,138 $ — $ — $ (8 ) $ 1,138 Mortgage-backed securities (25 ) 19,421 (310 ) 42,116 (335 ) 61,537 Collateralized mortgage obligations — — (17 ) 2,594 (17 ) 2,594 Total available for sale $ (33 ) $ 20,559 $ (327 ) $ 44,710 $ (360 ) $ 65,269 Held to maturity: Municipal securities $ (1 ) $ 1,313 $ (2 ) $ 759 $ (3 ) $ 2,072 Mortgage-backed securities — — (13 ) 7,032 (13 ) 7,032 Total held to maturity $ (1 ) $ 1,313 $ (15 ) $ 7,791 $ (16 ) $ 9,104 There were seven investments in an unrealized loss position with no recorded allowance for credit losses at December 31, 2020. Six of the seven securities in a loss position were composed of government backed mortgage backed securities or collateralized mortgage obligations. 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 ( “ FHLMC ” ), the Federal National Mortgage Association (FNMA) or the Government National Mortgage Association ( “ GNMA ” ). As of December 31, 2020, there were no holdings of securities of any one issuer, other than the collateralized mortgage obligations and mortgage-backed securities issued by the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity. Securities with fair values of approximately $314,962 and $278,318 at December 31, 2020 and 2019, respectively, were pledged to secure public fund deposits and for other purposes as required or permitted by law. The proceeds from sales of available for sale securities and the associated gains and losses are listed below: 2020 2019 2018 Proceeds from sales $ — $ 3,957 $ 411,796 Gross gains — — 4 Gross losses — (22 ) (54 ) There were no held to maturity securities sold during the years ended December 31, 2020, 2019 or 2018. The contractual maturities at December 31, 2020 of available for sale securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties. Available for Sale December 31, 2020 Amortized Cost Estimated Fair Value Due within one year $ 4,139 $ 4,154 Due after one year through five years 52,050 54,688 Due after five years through ten years 60,132 63,966 Due after ten years 77,955 83,878 Mortgage-backed securities 104,210 107,164 Collateralized mortgage obligations 64,611 66,945 Total Securities $ 363,097 $ 380,795 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | NOTE 4 - LOANS AND ALLOWANCE FOR CREDIT LOSSES The following table summarizes our loan portfolio by type of loan at December 31: 2020 2019 Commercial and industrial $ 445,771 $ 279,583 Real estate: Construction and development 270,407 280,498 Commercial real estate 594,216 567,360 Farmland 78,508 57,476 1-4 family residential 389,096 412,166 Multi-family residential 21,701 37,379 Consumer 51,044 53,245 Agricultural 15,734 18,359 Overdrafts 342 329 Total loans (1) 1,866,819 1,706,395 Net of: Deferred loan (fees) costs, net (1,463 ) 601 Allowance for credit losses (33,619 ) (16,202 ) Total net loans (1) $ 1,831,737 $ 1,690,794 (1) Excludes accrued interest receivable on loans of $7.0 million and $6.4 million as of December 31, 2020 and 2019, 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, 2020 and 2019, totaled $52,559 and $33,663, respectively. Unfunded commitments to such related parties at December 31, 2020 totaled $15,503. Loans to principal officers, directors, and their affiliates during the year ended December 31, 2020, was as follows: December 31, 2020 Beginning balance $ 33,663 New loans 58,154 Effect of changes in composition of related parties (39 ) Repayments (39,219 ) Ending balance $ 52,559 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 troubled debt restructuring. The following tables present the activity in the ACL by segment of loans for the years ended December 31, 2020, 2019 and 2018: For the Year Ended December 31, 2020 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance, prior to adoption of ASC 326 $ 2,056 $ 2,378 $ 6,853 $ 570 $ 3,125 $ 409 $ 602 $ 197 $ 12 $ 16,202 Impact of adopting ASC 326 546 323 2,228 26 1,339 (50 ) 72 73 (9 ) 4,548 Provision for credit losses 1,398 2,034 6,698 624 1,915 4 373 (33 ) 187 13,200 Loans charged-off (68 ) — — — (68 ) — (155 ) (18 ) (234 ) (543 ) Recoveries 101 — 1 — 2 — 37 20 51 212 Ending balance $ 4,033 $ 4,735 $ 15,780 $ 1,220 $ 6,313 $ 363 $ 929 $ 239 $ 7 $ 33,619 For the Year Ended December 31, 2019 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Provision for loan losses (117 ) 458 827 (73 ) 268 (222 ) (2 ) (41 ) 152 1,250 Loans charged-off (86 ) — — — (14 ) — (72 ) (89 ) (192 ) (453 ) Recoveries 508 — 1 — 3 — 111 89 42 754 Ending balance $ 2,056 $ 2,378 $ 6,853 $ 570 $ 3,125 $ 409 $ 602 $ 197 $ 12 $ 16,202 For the Year Ended December 31, 2018 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,581 $ 1,724 $ 4,585 $ 523 $ 3,022 $ 629 $ 602 $ 187 $ 6 $ 12,859 Provision for loan losses 426 196 1,472 120 (196 ) 2 127 (12 ) 115 2,250 Loans charged-off (367 ) — (33 ) — (93 ) — (254 ) (2 ) (169 ) (918 ) Recoveries 111 — 1 — 135 — 90 65 58 460 Ending balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 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 for each class of loans, by year of origination and risk rating, as of December 31, 2020: December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 278,687 $ 30,563 $ 12,860 $ 4,366 $ 6,131 $ 16,294 $ 90,074 $ 438,975 Special mention 124 119 222 4,040 1,324 — — 5,829 Substandard — 307 540 50 43 — — 940 Nonaccrual — — 13 — 14 — — 27 Total commercial and industrial loans $ 278,811 $ 30,989 $ 13,635 $ 8,456 $ 7,512 $ 16,294 $ 90,074 $ 445,771 Charge-offs $ — $ — $ (43 ) $ — $ — $ — $ (25 ) $ (68 ) Recoveries — — 43 — — 14 44 101 Current period net $ — $ — $ — $ — $ — $ 14 $ 19 $ 33 Construction and development: Pass $ 118,590 $ 76,926 $ 26,212 $ 24,524 $ 7,742 $ 10,507 $ 3,266 $ 267,767 Special mention 356 — — 990 — — — 1,346 Substandard — 609 5 — 680 — — 1,294 Nonaccrual — — — — — — — — Total construction and development loans $ 118,946 $ 77,535 $ 26,217 $ 25,514 $ 8,422 $ 10,507 $ 3,266 $ 270,407 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 91,819 $ 80,753 $ 89,542 $ 72,311 $ 86,946 $ 123,463 $ 5,890 $ 550,724 Special mention — 2,716 3,542 849 5,724 449 — 13,280 Substandard — — 2,010 4,913 4,445 8,240 — 19,608 Nonaccrual — 1,140 151 4,158 4,769 386 — 10,604 Total commercial real estate loans $ 91,819 $ 84,609 $ 95,245 $ 82,231 $ 101,884 $ 132,538 $ 5,890 $ 594,216 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 1 — 1 Current period net $ — $ — $ — $ — $ — $ 1 $ — $ 1 Farmland: Pass $ 17,444 $ 12,668 $ 10,327 $ 6,620 $ 9,904 $ 15,402 $ 5,864 $ 78,229 Special mention — — — — — 35 — 35 Substandard — — — — — 129 — 129 Nonaccrual — — — — — 115 — 115 Total farmland loans $ 17,444 $ 12,668 $ 10,327 $ 6,620 $ 9,904 $ 15,681 $ 5,864 $ 78,508 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Total 1-4 family residential: Pass $ 87,578 $ 62,937 $ 52,087 $ 37,224 $ 43,858 $ 93,486 $ 10,091 $ 387,261 Special mention — — — — — 168 — 168 Substandard — — — — — — — — Nonaccrual — — 326 44 163 1,134 — 1,667 Total 1-4 family residential loans $ 87,578 $ 62,937 $ 52,413 $ 37,268 $ 44,021 $ 94,788 $ 10,091 $ 389,096 Charge-offs $ — $ — $ — $ — $ (9 ) $ (59 ) $ — $ (68 ) Recoveries — — — — — 2 — 2 Current period net $ — $ — $ — $ — $ (9 ) $ (57 ) $ — $ (66 ) Multi-family residential: Pass $ 5,889 $ 4,498 $ 3,617 $ 1,371 $ 1,737 $ 4,391 $ 198 $ 21,701 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 5,889 $ 4,498 $ 3,617 $ 1,371 $ 1,737 $ 4,391 $ 198 $ 21,701 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Consumer and overdrafts: Pass $ 24,740 $ 11,176 $ 9,369 $ 1,701 $ 735 $ 513 $ 2,825 $ 51,059 Special mention 16 83 9 7 — — — 115 Substandard — — — — — — — — Nonaccrual 24 36 131 20 1 — — 212 Total consumer loans and overdrafts $ 24,780 $ 11,295 $ 9,509 $ 1,728 $ 736 $ 513 $ 2,825 $ 51,386 Charge-offs $ (243 ) $ (63 ) $ (31 ) $ (43 ) $ (3 ) $ (6 ) $ — $ (389 ) Recoveries 49 2 12 8 4 13 — 88 Current period net $ (194 ) $ (61 ) $ (19 ) $ (35 ) $ 1 $ 7 $ — $ (301 ) Agricultural: Pass $ 3,489 $ 1,718 $ 1,893 $ 607 $ 273 $ 189 $ 7,408 $ 15,577 Special mention — — — 36 — — — 36 Substandard — 7 10 — 24 — — 41 Nonaccrual — — 33 — 45 2 — 80 Total agricultural loans $ 3,489 $ 1,725 $ 1,936 $ 643 $ 342 $ 191 $ 7,408 $ 15,734 Charge-offs $ — $ — $ (18 ) $ — $ — $ — $ — $ (18 ) Recoveries — — — — 20 — — 20 Current period net $ — $ — $ (18 ) $ — $ 20 $ — $ — $ 2 Total loans: Pass $ 628,236 $ 281,239 $ 205,907 $ 148,724 $ 157,326 $ 264,245 $ 125,616 $ 1,811,293 Special mention 496 2,918 3,773 5,922 7,048 652 — 20,809 Substandard — 923 2,565 4,963 5,192 8,369 — 22,012 Nonaccrual 24 1,176 654 4,222 4,992 1,637 — 12,705 Total loans $ 628,756 $ 286,256 $ 212,899 $ 163,831 $ 174,558 $ 274,903 $ 125,616 $ 1,866,819 Charge-offs $ (243 ) $ (63 ) $ (92 ) $ (43 ) $ (12 ) $ (65 ) $ (25 ) $ (543 ) Recoveries 49 2 55 8 24 30 44 212 Total current period net (charge-offs) recoveries $ (194 ) $ (61 ) $ (37 ) $ (35 ) $ 12 $ (35 ) $ 19 $ (331 ) The following table summarizes the credit exposure in the Company’s loan portfolio by class as of December 31, 2019: December 31, 2019 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer and Overdrafts Agricultural Total Grade: Pass $ 279,217 $ 278,679 $ 548,662 $ 57,152 $ 409,896 $ 37,379 $ 53,327 $ 18,101 $ 1,682,413 Special mention 153 600 1,071 91 1,425 — 192 126 3,658 Substandard 213 1,219 17,627 233 845 — 55 132 20,324 Total $ 279,583 $ 280,498 $ 567,360 $ 57,476 $ 412,166 $ 37,379 $ 53,574 $ 18,359 $ 1,706,395 There were no loans classified in the “doubtful” or “loss” risk rating categories as of December 31, 2020 and December 31, 2019. The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on ACL, as of December 31, 2020: Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ 129 $ — $ 129 $ 44 Real estate: Construction and development 609 — 609 208 Commercial real estate 9,989 — 9,989 2,048 Total $ 10,727 $ — $ 10,727 $ 2,300 The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans and loans 90 days or more past due continuing to accrue interest as of: December 31, 2020 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days and Greater Past Due Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing Commercial and industrial $ 385 $ 25 $ 22 $ 432 $ 445,339 $ 445,771 $ — Real estate: Construction and development 256 — — 256 270,151 270,407 — Commercial real estate 1,094 — 10,105 11,199 583,017 594,216 — Farmland 117 3 — 120 78,388 78,508 — 1-4 family residential 2,097 556 127 2,780 386,316 389,096 — Multi-family residential — — — — 21,701 21,701 — Consumer 383 124 97 604 50,440 51,044 — Agricultural 50 46 45 141 15,593 15,734 — Overdrafts — — — — 342 342 — Total $ 4,382 $ 754 $ 10,396 $ 15,532 $ 1,851,287 $ 1,866,819 $ — December 31, 2019 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days and Greater Past Due Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing Commercial and industrial $ 321 $ 53 $ 15 $ 389 $ 279,194 $ 279,583 $ — Real estate: Construction and development 161 — — 161 280,337 280,498 — Commercial real estate 1,181 49 882 2,112 565,248 567,360 — Farmland 103 — — 103 57,373 57,476 — 1-4 family residential 2,514 1,433 845 4,792 407,374 412,166 — Multi-family residential — — — — 37,379 37,379 — Consumer 373 152 96 621 52,624 53,245 — Agricultural 51 67 — 118 18,241 18,359 — Overdrafts — — — — 329 329 — Total $ 4,704 $ 1,754 $ 1,838 $ 8,296 $ 1,698,099 $ 1,706,395 $ — The following table presents information regarding nonaccrual loans as of: 2020 2019 Commercial and industrial $ 27 $ 46 Real estate: Commercial real estate 10,604 6,860 Farmland 115 182 1-4 family residential 1,667 3,853 Consumer and overdrafts 212 279 Agricultural 80 42 Total $ 12,705 $ 11,262 If interest on nonaccrual loans had been accrued, such income would have been approximately $821 and $637 for the years ended December 31, 2020 and 2019, respectively. There were no commitments to lend additional funds to borrowers whose loans were classified as non-accrual. Troubled Debt Restructurings A troubled debt restructuring (“TDR”) is a restructuring in which a bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. In response to the COVID-19 pandemic, the Bank provided financial relief to many of its customers through a 3-month principal and interest payment deferral program or an up to 6-month interest only program. Most modifications made as a direct result of COVID-19 are not TDRs pursuant to the CARES Act and the April 7, 2020 Interagency guidance. As of December 31, 2020 there were loans with balances of $62,133 modified pursuant to the CARES Act and GAAP, therefore not classified as TDRs. The outstanding balances of TDRs are shown below at December 31: 2020 2019 Nonaccrual TDRs $ 90 $ 101 Performing TDRs 9,626 7,240 Total $ 9,716 $ 7,341 Specific reserves on TDRs $ — $ 164 The following table presents the loans by class, modified as TDRs that occurred during the year ended: December 31, 2020 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Construction and development 2 $ 1,289 $ 1,081 Commercial and industrial 1 129 85 Commercial real estate 1 1,017 670 Total 4 $ 2,435 $ 1,836 There were no TDRs that subsequently defaulted during 2020. The TDRs described above did not increase the allowance for credit losses and resulted in no charge-offs during the year ended December 31, 2020. The following table presents the loan by class, modified as a TDR that occurred during the year ended: December 31, 2019 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial real estate 4 $ 1,680 $ 1,515 Total 4 $ 1,680 $ 1,515 There were two TDRs that subsequently defaulted during 2019 and remained on nonaccrual status as of December 31, 2019. The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the year ended December 31, 2019. The following table presents loans individually and collectively evaluated for impairment, and the respective allowance for loan losses as of December 31, 2019, as determined in accordance with ASC 310, prior to the adoption of ASC 326. A loan was considered impaired when, based on current information and events, it was probable that the Company would be unable to collect all amounts due from the borrower in accordance with original contractual terms of the loan. Loans with insignificant delays or insignificant short falls in the amount payments expected to be collected were not considered to be impaired. Loans defined as individually impaired included larger balance non-performing loans and TDRs. December 31, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Commercial and industrial $ 289 $ 289 $ — $ 312 Real estate: Construction and development 1,212 1,212 — 1,259 Commercial real estate 4,612 4,612 — 4,244 Farmland — — — — 1-4 family residential 2,498 2,498 — 1,798 Multi-family residential — — — — Consumer — — — — Agricultural 62 62 — 190 Subtotal 8,673 8,673 — 7,803 With allowance recorded: Commercial and industrial — — — 61 Real estate: Construction and development — — — — Commercial real estate 12,871 12,871 1,587 9,111 Farmland 133 133 62 135 1-4 family residential — — — 78 Multi-family residential — — — — Consumer — — — — Agricultural — — — — Subtotal 13,004 13,004 1,649 9,385 Total $ 21,677 $ 21,677 $ 1,649 $ 17,188 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE 5 - PREMISES AND EQUIPMENT Premises and equipment balances, by type, were as follows: December 31, 2020 December 31, 2019 Land $ 10,944 $ 10,944 Building and improvements 58,569 54,809 Furniture, fixtures and equipment 19,641 17,960 Automobiles 400 495 89,554 84,208 Less: accumulated depreciation 34,342 30,777 $ 55,212 $ 53,431 Depreciation expense on premises and equipment totaled $4,117, $3,886 and $3,400 for the years ended December 31, 2020, 2019 and 2018, respectively, and is included in occupancy expenses on the consolidated statements of earnings. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 6 - GOODWILL Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets as of December 31 are summarized as follows: 2020 2019 Beginning of year $ 32,160 $ 32,160 Effect of acquisitions — — End of year $ 32,160 $ 32,160 |
CORE DEPOSIT INTANGIBLES
CORE DEPOSIT INTANGIBLES | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
CORE DEPOSIT INTANGIBLES | NOTE 7 - 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: 2020 2019 Beginning of year $ 3,853 $ 4,706 Amortization (854 ) (853 ) End of year $ 2,999 $ 3,853 Accumulated amortization was $5,532 and $4,678 at December 31, 2020 and 2019, respectively. Amortization expense related to core deposit intangibles was $854, $853 and $718 during the years ended December 31, 2020, 2019 and 2018, respectively. The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2020 was as follows: Year Ended December 31, Amount 2021 $ 687 2022 453 2023 441 2024 424 2025 316 Thereafter 678 $ 2,999 |
INTEREST-BEARING DEPOSITS
INTEREST-BEARING DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
Interest Bearing Deposits [Abstract] | |
INTEREST-BEARING DEPOSITS | NOTE 8 - INTEREST-BEARING DEPOSITS Interest-bearing deposits, by type of account, were as follows as of: December 31, 2020 December 31, 2019 NOW accounts $ 259,357 $ 202,672 Savings and money market accounts 868,643 712,972 Time deposits $250,000 or less 245,796 300,608 Time deposits greater than $250,000 132,854 214,687 $ 1,506,650 $ 1,430,939 Year-end maturities of time deposits, as of December 31, 2020, were as follows: Year Ended December 31, Amount 2021 $ 306,760 2022 50,257 2023 13,755 2024 5,162 2025 2,716 Thereafter — $ 378,650 Deposits of executive officers, directors and significant shareholders at December 31, 2020 and 2019 totaled $46,192 and $59,658, respectively. |
BORROWED MONEY
BORROWED MONEY | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
BORROWED MONEY | NOTE 9 - BORROWED MONEY Federal Home Loan Bank (“FHLB”) advances, as of December 31, 2020, were as follows: Fixed-rate advances, with monthly interest payments, principal due in: Year Current Weighted Average Rate Principal Due 2021 0.15 % $ 101,500 2022 1.99 % 1,500 2023 0.00 % — 2024 1.76 % 6,000 2025 0.00 % — 109,000 Fixed-rate advances, with monthly principal and interest payments, principal due in: Year Current Weighted Average Rate Principal Due 2021 1.38 % 101 101 $ 109,101 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 3.25% at December 31, 2020, or (ii) the rate floor of 3.50%, with quarterly interest payments, and matures in March 2021. 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, 2020, there was a $12,000 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 loan 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 DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
SUBORDINATED DEBENTURES | NOTE 10 - SUBORDINATED DEBENTURES Subordinated debentures are made up of the following as of: December 31, 2020 December 31, 2019 Trust II Debentures $ 3,093 $ 3,093 Trust III Debentures 2,062 2,062 DCB Trust I Debentures 5,155 5,155 Other debentures 9,500 500 $ 19,810 $ 10,810 The Company has three trusts, Guaranty (TX) Capital Trust II (“Trust II”), Guaranty (TX) Capital Trust III (“Trust III”), and DCB Financial Trust I ("DCB Trust I") (“Trust II”, “Trust III” and together with "DCB Trust I", the “Trusts”). Upon formation, the Trusts issued pass-through securities (“TruPS”) with a liquidation value of $1,000,000 per share to third parties in private placements. Concurrently with the issuance of the TruPS, the Trusts issued common securities to the Company. The Trusts invested the proceeds of the sales of securities to the Company (“Debentures”). The Debentures mature approximately 30 years after the formation date, which may be shortened if certain conditions are met (including the Company having received prior approval of the Federal Reserve and any other required regulatory approvals). Trust II Trust III DCB Trust I Formation date October 30, 2002 July 25, 2006 March 29, 2007 Capital trust pass-through securities Number of shares 3,000 2,000 5,000 Original liquidation value $ 3,000 $ 2,000 $ 5,000 Common securities liquidation value 93 62 155 The securities held by the Trusts can qualify as Tier I capital for the Company under Federal Reserve 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 I capital, net of goodwill, the full amount is includable in Tier I capital at December 31, 2020 and 2019. Additionally, the terms provide that trust preferred securities would no longer qualify for Tier I 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 are payable quarterly. The interest is deferrable on a cumulative basis for up to five consecutive years following a suspension of dividend payments on all other capital stock. No principal payments are due until maturity for each of the Debentures. Trust II Debentures Trust III Debentures DCB Trust I Debentures Original amount $ 3,093 $ 2,062 $ 5,155 Maturity date October 30, 2032 October 1, 2036 June 15, 2037 Interest due Quarterly Quarterly Quarterly In accordance with ASC 810, “ Consolidation, Trust II Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 months LIBOR plus 3.35%, thereafter. On any interest payment date on or after October 30, 2012 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30, but not more than 60 days' notice, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption. Trust III Debentures Interest was payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 1.67%. On any interest payment date on or after October 1, 2016 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30, but not more than 60 days' notice, in whole or in part, at a redemption price is equal to 100% of the principal amount if redeemed, plus accrued interest to the date of redemption. DCB Debentures I Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 1.80%. On any interest payment date on or after June 15, 2012 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30, but not more than 60 days' notice, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption. Other Debentures In July 2015, the Company issued $4,000 in debentures, of which $3,000 were issued to directors and other related parties. The $3,000 of debentures to related parties were repaid in May 2017 and a $500 par value debenture, which carried a 2.50% rate, matured and was repaid in July 2017. The remaining $500 debenture had a rate of 4.00%, matured and was paid off in January 2019. In December 2015, the Company issued $5,000 in debentures, of which $2,500 were issued to directors and other related parties. In May 2017, $2,000 of the related party debentures were repaid with a portion of the proceeds of Guaranty’s initial public offering. A further $1,000 of other debentures matured and were paid off in full in July of 2018 and another $1,000 and $500 of debentures matured and were paid off in July and December of 2019, respectively. The final $500 debenture was paid off during the second quarter of 2020. In May 2020, the Company issued $10,000 in debentures to directors and other related parties. The debentures were issued at a par value of $500 each with fixed annual rates between 1.00% and 4.00% and maturity dates between November 1, 2020 and November 1, 2024. $500 of debentures matured and were paid off in November of 2020. At the Company’s option, and with 30 days advanced notice to the holder, the entire principal amount and all accrued interest may be paid to the holder on or before the due date of any debenture. The redemption price is equal to 100% of the face amount of the debenture redeemed, plus all accrued interest. The scheduled principal payments and weighted average rates of other debentures are as follows: Year Current Weighted Average Rate Principal Due 2022 2.45 % $ 2,000 2023 2.85 % 3,500 2024 3.74 % 4,000 $ 9,500 |
EQUITY AWARDS
EQUITY AWARDS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
EQUITY AWARDS | NOTE 11 - 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 1,000,000 shares, all of which may be subject to incentive stock option treatment. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have vesting periods ranging from 5 to 10 years and have 10-year contractual terms. Restricted stock awards vest under the period of restriction specified within their respective award agreements as determined by the Company. Forfeitures are recognized as they occur, subject to a 90-day grace period for vested options. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer group averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes in to account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on U.S. Treasury yield curve in effect at the time of the grant. The fair value of options granted was determined using the following weighted-average assumptions as of grant date, for the years ended December 31: 2020 2019 2018 Risk-free interest rate 0.79 % 2.11 % 2.87 % Expected term (in years) 6.50 6.50 6.50 Expected stock price volatility 22.26 % 19.89 % 20.10 % Dividend yield 2.56 % 2.36 % 1.76 % A summary of activity in the Plan during the years ended December 31 follows: 2020 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 508,000 $ 26.68 6.24 $ 3,159 Granted 74,000 28.67 9.57 145 Exercised (26,600 ) 24.00 1.79 158 Forfeited (49,200 ) 29.71 7.58 84 Balance, December 31, 2020 506,200 $ 26.81 5.82 $ 1,805 Exercisable at end of period 291,520 $ 25.63 4.74 $ 1,339 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 537,872 $ 26.49 6.97 $ 2,088 Granted 39,000 29.89 9.40 117 Exercised (37,672 ) 24.55 4.11 314 Forfeited (31,200 ) 30.04 8.02 89 Balance, December 31, 2019 508,000 $ 26.68 6.24 $ 3,159 Exercisable at end of period 256,880 $ 25.21 5.18 $ 1,971 A summary of nonvested activity in the Plan during the years ended December 31 follows: 2020 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 251,120 $ 28.18 7.31 $ 1,188 Granted 74,000 28.67 9.57 145 Vested (71,040 ) 27.26 6.00 230 Forfeited (39,400 ) 29.71 7.58 84 Balance, December 31, 2020 214,680 $ 28.42 7.28 $ 466 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 331,560 $ 27.74 7.77 $ 975 Granted 39,000 29.89 9.40 117 Vested (91,040 ) 26.71 6.02 563 Forfeited (28,400 ) 33.00 8.81 89 Balance, December 31, 2019 251,120 $ 28.18 7.31 $ 1,188 Information related to the Plan is as follows for the years ended December 31: 2020 2019 2018 Intrinsic value of options exercised $ 158 $ 314 $ 102 Cash received from options exercised 638 925 327 Weighted average fair value of options granted 4.46 4.97 6.69 Restricted Stock Awards A summary of restricted stock activity in the Plan during the years ended December 31, 2020 and 2019 follows: 2020 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 31,459 $ 30.29 Granted 19,500 29.32 Vested (15,179 ) 30.33 Forfeited (480 ) 31.57 Balance, December 31, 2020 35,300 $ 29.72 2019 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 2,398 $ 31.57 Granted 30,500 30.25 Vested (1,439 ) 31.57 Forfeited — — Balance, December 31, 2019 31,459 $ 30.29 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, 2020, there was $1,980 of total unrecognized compensation expense related to unvested stock options and restricted stock granted under the Plan. The expense is expected to be recognized over a weighted-average period of 3.34 years. The Company granted options and restricted stock under the Plan in 2020, 2019 and 2018. Expense of $749, $663 and $592 was recorded during the years ended December 31, 2020, 2019 and 2018, respectively, which represents the fair value of options and restricted shares vested during those years. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | NOTE 12 - 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, 2020, 2019 and 2018 totaled $1,330, $1,270 and $965, respectively, and is included in employee compensation expense on the Company’s consolidated statements of earnings. Benefits under the KSOP generally are distributed to participants in the form of cash, although participants have the right to receive distributions in the form of shares of common stock. As of December 31, 2020 and 2019, the number of shares held by the KSOP was 1,225,828 and 1,224,697, respectively. There were no unallocated shares to plan participants as of December 31, 2020 and 2019. 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 $35,510 and $34,495 as of December 31, 2020 and 2019, respectively. Expense related to these plans totaled $592, $602 and $502 for the years ended December 31, 2020, 2019 and 2018, respectively, and is included in employee compensation and benefits on the Company's consolidated statements of earnings. The recorded liability totaled approximately $4,383 and $4,081 as of December 31, 2020 and 2019, 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 the 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 our board of directors. The bonus expense under this plan for the years ended December 31, 2020, 2019 and 2018 totaled $3,164, $3,265 and $ 2,943 , respectively and is included in employee compensation and benefits on the Company's consolidated statements of earnings. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | NOTE 13 - LEASES The Company has operating leases for bank locations, ATMs, corporate offices, and certain other arrangements, which have remaining lease terms of 1 year to 14 years. Some of the Company’s operating leases include options to extend the leases for up to 7 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 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, 2020 and 2019, operating lease right-of-use assets were $13,291 and $11,554, respectively, and liabilities were $13,539 and $11,675, respectively, and were included within the accompanying consolidated balance sheet as components of other assets and other liabilities, respectively. Operating lease expense for operating leases accounted for under ASC 842 for the years ended December 31, 2020 and 2019 was approximately $1,954 and $1,881, respectively, and is included as a component of occupancy expenses within the accompanying consolidated statements of earnings. The table below summarizes other information related to our operating leases as of: December 31, 2020 December 31, 2019 Operating leases Operating lease right-of-use assets $ 13,291 $ 11,554 Operating lease liabilities 13,539 11,675 Weighted average remaining lease term Operating leases 9 years 10 years Weighted average discount rate Operating leases 2.19 % 2.69 % The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2025 and thereafter. Minimum future lease payments under these non-cancelable operating leases within ASC 842 as of December 31, 2020, are as follows: Year Ended December 31, Amount 2021 $ 1,956 2022 1,779 2023 1,747 2024 1,750 2025 1,627 Thereafter 6,091 Total lease payments 14,950 Less: interest (1,411 ) Present value of lease liabilities $ 13,539 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14 - INCOME TAXES Tax Cuts and Jobs Act The Tax Cuts and Jobs Act was enacted on December 22, 2017. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21%, (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limits the deduction for net interest expense incurred by U.S. corporations, (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminates or reduces certain deductions related to meals and entertainment expenses, (vi) modifies the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee and (vii) limits the deductibility of deposit insurance premiums. The Tax Cuts and Jobs Act also significantly changes U.S. tax law related to foreign operations; however, such changes do not currently impact us. As stated above, as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, we remeasured our deferred tax assets and liabilities based upon the newly enacted U.S. statutory federal income tax rate of 21%, which is the tax rate at which these assets and liabilities are expected to reverse in the future. Management of the Company considers the likelihood of changes by taxing authorities in its filed income tax returns and discloses potential significant changes that management believes are more likely than not to occur upon examination by tax authorities. Management has not identified any uncertain tax positions in previously filed income tax returns that require disclosure in the accompanying consolidated financial statements. The Company is subject to U.S. federal income taxes. The consolidated provision for income taxes were as follows as of December 31: 2020 2019 2018 Current federal tax expense $ 10,542 $ 6,097 $ 5,288 Deferred federal tax (benefit) expense (4,647 ) (319 ) (683 ) Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate — — (6 ) Total $ 5,895 $ 5,778 $ 4,599 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: 2020 2019 2018 Federal statutory income tax at 21% $ 6,992 $ 6,732 $ 5,291 Tax exempt interest income (1,065 ) (1,027 ) (968 ) Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate — — (6 ) Earnings of bank owned life insurance (182 ) (192 ) (113 ) Nondeductible expenses 356 462 566 Other (206 ) (197 ) (171 ) Total $ 5,895 $ 5,778 $ 4,599 Income tax expense for 2018 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. As a result of the new law, and as detailed in the table above, we recognized a net tax benefit resulting from the finalization of those calculations totaling $6 in 2018. The following table summarizes the components of our deferred tax assets and liabilities as of December 31, 2020 and 2019, and includes a $955 increase to the deferred tax assets associated with the day one effect of our transition to CECL on January 1, 2020. Our net deferred tax assets are included in other assets in the accompanying consolidated balance sheets. 2020 2019 Deferred tax assets: Allowance for credit losses $ 7,060 $ 3,402 Deferred compensation 920 857 Bonus accrual 422 399 Deferred loan fees, net 259 — Accretion of acquisition allowance 112 183 Other real estate owned 2 134 Other 437 420 Total deferred tax assets 9,212 5,395 Deferred tax liabilities: Unrealized gain on available for sale securities (3,717 ) (526 ) Premises and equipment (2,721 ) (2,353 ) Prepaid expenses (343 ) (270 ) Deferred loan costs, net — (137 ) Intangibles (350 ) (470 ) Other (42 ) (101 ) Total deferred tax liabilities (7,173 ) (3,857 ) Net deferred tax asset $ 2,039 $ 1,538 |
NONINTEREST INCOME AND NONINTER
NONINTEREST INCOME AND NONINTEREST EXPENSE | 12 Months Ended |
Dec. 31, 2020 | |
Other Income And Expenses [Abstract] | |
NONINTEREST INCOME AND NONINTEREST EXPENSE | NOTE 15 - NONINTEREST INCOME AND NONINTEREST EXPENSE Other operating income consisted of the following for the years ended December 31: 2020 2019 2018 Fiduciary and custodial income $ 2,012 $ 1,760 $ 1,587 Bank-owned life insurance income 838 774 570 Merchant and debit card fees 5,515 4,264 3,642 Loan processing fee income 628 590 589 Warehouse lending fees 957 679 471 Mortgage fee income 771 323 283 Other noninterest income 2,418 2,029 2,303 Total $ 13,139 $ 10,419 $ 9,445 Other operating expense consisted of the following for the years ended December 31: 2020 2019 2018 Legal and professional fees $ 2,650 $ 2,610 $ 3,080 Software support fees 4,104 3,341 2,502 Amortization 1,349 1,378 1,228 Director and committee fees 846 873 1,029 Advertising and promotions 1,498 1,655 1,410 ATM and debit card expense 1,951 1,347 1,127 Office and computer supplies 645 470 416 Postage 268 302 310 Telecommunication expense 864 676 649 FDIC insurance assessment fees 821 173 625 Other real estate owned expenses and write-downs 77 59 157 Other noninterest expense 4,036 3,900 3,721 Total $ 19,109 $ 16,784 $ 16,254 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 16 - DERIVATIVE FINANCIAL INSTRUMENTS The Company utilizes certain derivative financial instruments. Stand-alone derivative financial instruments such as interest rate swaps, are used to economically hedge interest rate risk related to the Company’s liabilities. These derivative instruments involve both credit and market risk. The notional amounts are amounts on which calculations, payments, and the value of the derivative are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Such difference, which represents the fair value of the derivative instruments, is reflected on the Company’s consolidated balance sheets in other liabilities. The Company is exposed to credit related losses in the event of nonperformance by the counterparties to those agreements. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail their 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 10. Management believes 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 is the Company’s objective to hedge the change in fair value of floating rate debentures at coverage levels that are appropriate, given anticipated or existing interest rate levels and other market considerations, as well as the relationship of change in this liability to other liabilities of the Company. To meet this objective, the Company utilizes interest rate swaps as an asset/liability management strategy to hedge the change in value of the cash flows due to changes in expected interest rate assumptions. The Company also entered into interest rate swaps to receive payments at a floating rate in exchange for paying a fixed rate, the objective of which is to reduce the overall cost of short-term 3-month FHLB advances that will be renewed consistent with the reset terms on the interest rate swap and that are included in the amounts discussed in Note 20. Interest rate swaps with notional amounts totaling $5,000 as of December 31, 2020 and 2019, were designated as cash flow hedges of the debentures and $40,000 as of December 31, 2020 were designed as cash flow hedges of FHLB advances. All swaps were determined to be fully effective during all periods presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in accrued interest and other liabilities within the consolidated balance sheets with changes in fair value recorded in other comprehensive income. The amount included in accumulated other comprehensive income would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining terms of the swaps. The information pertaining to outstanding interest rate swap agreements used to hedge floating rate debentures and FHLB advances was as follows as of: December 31, 2020 Notional Amount Pay Rate Receive Rate Effective Date Maturity in Years Unrealized Losses $ 2,000 5.979 % 3 month LIBOR plus 1.67% 10/1/2016 5.25 $ 408 $ 3,000 7.505 % 3 month LIBOR plus 3.35% 10/30/2012 1.83 $ 221 $ 15,000 0.668 % 3 month LIBOR 3/18/2020 2.22 $ 159 $ 15,000 0.790 % 3 month LIBOR 3/18/2020 4.22 $ 288 $ 10,000 0.530 % 3 month LIBOR 3/23/2020 2.23 $ 75 December 31, 2019 Notional Amount Pay Rate Receive Rate Effective Date Maturity in Years Unrealized Losses $ 2,000 5.979 % 3 month LIBOR plus 1.67% 10/1/2016 6.25 $ 314 $ 3,000 7.505 % 3 month LIBOR plus 3.35% 10/30/2012 2.83 $ 212 Interest expense recorded on these swap transactions totaled $747, $648 and $687 during the years ended December 31, 2020, 2019 and 2018, respectively, and is reported as a component of interest expense on the debentures. At December 31, 2020, the Company expected none of the unrealized losses to be reclassified as a reduction of interest expense during the 2021 year. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17 - COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into various transactions, which, in accordance with GAAP, are not included in the consolidated balance sheets. These transactions are referred to as “off-balance sheet commitments.” The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and letters of credit, which involve elements of credit risk in excess of the amounts recognized in the consolidated balance sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Customers use credit commitments to ensure that funds will be available for working capital purposes, for capital expenditures and to ensure access to funds at specified terms and conditions. Substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. Management considers the likelihood of commitments and letters of credit to be funded, along with credit related conditions present in the loan agreements when estimating an ACL for off-balance sheet commitments. Loan agreements executed in connection with construction loans and commercial lines of credit have standard conditions which must be met prior to the Company being required to provide additional funding, including conditions precedent that typically include: (i) no event of default or potential default has occurred; (ii) that no material adverse events have taken place that would materially affect the borrower or the value of the collateral, (iii) that the borrower remains in compliance with all loan obligations and covenants and has made no misrepresentations; (iv) that the collateral has not been damaged or impaired; (v) that the project remains on budget and in compliance with all laws and regulations; and (vi) that all management agreements, lease agreements and franchise agreements that affect the value of the collateral remain in force. If the conditions precedent have not been met, the Company retains the option to cease current draws and/or future funding. As a result of these conditions within our loan agreements, management has determined that credit risk is minimal and there is no recorded ACL as of December 31, 2 020 . Letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The Company’s policies generally require that letters of credit arrangements contain security and debt covenants similar to those contained in loan agreements. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the table below. If the commitment were funded, the Company would be entitled to seek recovery from the customer. As of December 31, 2020 and 2019, no amounts have been recorded as liabilities for the Bank’s potential obligations under these guarantees. Commitments and letters of credit outstanding were as follows as of December 31: Contract or Notional Amount 2020 2019 Commitments to extend credit $ 324,276 $ 440,685 Letters of credit 8,488 9,054 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, 2020, the Company had letters of credit of $40,833 pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
Banking And Thrifts [Abstract] | |
REGULATORY MATTERS | NOTE 18 - 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, 2020 and 2019, that the Bank met all capital adequacy requirements to which it was subject. The Basel III Capital Rules, among other things, have (i) introduced a new capital measure called “Common Equity Tier I” (“CET1”), (ii) specified that Tier I capital consist of CET1 and “Additional Tier I 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 and (iv) expanded the scope of the deductions/adjustments as compared to existing regulations. Starting in January 2016, the implementation of the capital conservation buffer was effective for the Company starting at the 0.625% level and increasing 0.625% each year thereafter, until it reached 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. As of December 31, 2020 and 2019, the Company’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized”, the Company must maintain minimum total risk-based, CET1, Tier 1 risk-based and Tier I leverage ratios as set forth in the table. There are no conditions or events since December 31, 2020 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 I capital, net of goodwill, the rules permit the inclusion of $10,310 of trust preferred securities in Tier I capital at December 31, 2020 and 2019. Additionally, the rules provide that trust preferred securities would no longer qualify for Tier I 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 is presented in the following tables: Actual Minimum Required For Capital Adequacy Purposes Minimum Required Under Basel III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital to risk-weighted assets: Consolidated $ 263,144 13.20% $ 159,496 8.00% $ 209,338 10.50% n/a Bank 285,490 14.32% 159,514 8.00% 209,362 10.50% $ 199,392 10.00% Tier 1 capital to risk-weighted assets: Consolidated 238,115 11.94% 119,622 6.00% 169,464 8.50% n/a Bank 260,459 13.06% 119,635 6.00% 169,483 8.50% 159,514 8.00% Tier 1 capital to average assets: (1) Consolidated 238,115 9.13% 104,293 4.00% 104,293 4.00% n/a Bank 260,459 9.99% 104,293 4.00% 104,293 4.00% 130,366 5.00% Common equity tier 1 capital to risk-weighted assets: Consolidated 227,805 11.43% 89,716 4.50% 139,559 7.00% n/a Bank 260,459 13.06% 89,726 4.50% 139,574 7.00% 129,605 6.50% (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Actual Minimum Required For Capital Adequacy Purposes Minimum Required Under Basel III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total capital to risk-weighted assets: Consolidated $ 253,793 13.29% $ 152,770 8.00% $ 200,510 10.50% n/a Bank 249,643 13.07% 152,774 8.00% 200,516 10.50% $ 190,968 10.00% Tier 1 capital to risk-weighted assets: Consolidated 237,591 12.44% 114,577 6.00% 162,318 8.50% n/a Bank 233,441 12.22% 114,581 6.00% 162,322 8.50% 152,774 8.00% Tier 1 capital to average assets: (1) Consolidated 237,591 10.29% 92,318 4.00% 92,318 4.00% n/a Bank 233,441 10.11% 92,321 4.00% 92,321 4.00% 115,401 5.00% Common equity tier 1 capital to risk-weighted assets: Consolidated 227,281 11.90% 85,933 4.50% 133,674 7.00% n/a Bank 233,441 12.22% 85,935 4.50% 133,677 7.00% 124,129 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 the Company are mainly provided by dividends from its subsidiaries. However, certain regulatory restrictions exist regarding the ability of its bank subsidiary to transfer funds to Guaranty in the form of cash dividends, loans or advances. The amount of dividends that a subsidiary bank organized as a national banking association, such as the Bank, may declare in a calendar year is the subsidiary bank’s net profits for that year combined with its retained net profits for the preceding two years. Retained net profits, as defined by the OCC, consist of net income less dividends declared during the period. As of December 31, 2020, the Bank had $24,854 available for payment of dividends. |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | NOTE 19 - 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, 2020 | |
Federal Funds Purchased And Securities Sold Under Agreements To Repurchase [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | NOTE 20 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase are secured by mortgage backed securities and collateralized mortgage obligations with a market value of $15,631 as of December 31, 2020 and collateralized mortgage obligations with a market value of $11,100 as of December 31, 2019, respectively. 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: 2020 2019 Average balance during the year $ 18,115 $ 10,901 Average interest rate during the year 0.18 % 0.50 % Maximum month-end balance during the year $ 21,400 $ 11,542 Weighted average interest rate at year-end 0.19 % 0.31 % |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 21 - RELATED PARTIES As more fully described in Note 4, Note 8 and Note 10, 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, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 22 - FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Marketable Securities : The fair values for marketable securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Loans Held For Sale Loans held for sale are carried at the lower of cost or fair value, which is evaluated on a pool-level basis. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors (Level 2). Derivative Instruments : The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Impaired Loans : For the year ended December 31, 2019, the fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on the present value of estimated future cash flows using the loan’s existing rate or, if repayment is expected solely from the collateral, 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 the 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). Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Individually Evaluated Collateral Dependent Loans 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). The following table summarizes quantitative disclosures about the fair value measurements for each category of financial assets (liabilities) carried at fair value as of December 31: 2020 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 107,164 $ — $ 107,164 $ — Collateralized mortgage obligations 66,945 — 66,945 — Municipal securities 175,704 — 175,704 — Corporate bonds 30,982 — 30,982 — Loans held for sale 5,542 — — 5,542 Cash surrender value of life insurance 35,510 — 35,510 — SBA servicing assets 763 — — 763 Derivative instrument assets 629 — 629 — Derivative instrument liabilities (1,151 ) — (1,151 ) — Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 8,427 — — 8,427 2019 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 84,182 $ — $ 84,182 $ — Collateralized mortgage obligations 90,927 — 90,927 — Municipal securities 17,348 — 17,348 — Corporate bonds 20,259 — 20,259 — Loans held for sale 2,368 — — 2,368 Cash surrender value of life insurance 34,495 — 34,495 — SBA servicing assets 672 — — 672 Derivative instrument assets 526 — 526 — Derivative instrument liabilities (526 ) — (526 ) — Assets at fair value on a nonrecurring basis: Impaired loans 20,028 — — 20,028 There were no transfers between Level 2 and Level 3 during the years ended December 31, 2020 or 2019. Nonfinancial Assets and Nonfinancial Liabilities : Nonfinancial assets measured at fair value on a nonrecurring basis during the years ended December 31, 2020 and 2019 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in current earnings. The fair value of a foreclosed asset is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. The following table presents foreclosed assets that were remeasured and recorded at fair value as of December 31: 2020 2019 2018 Other real estate owned remeasured at initial recognition: Carrying value of other real estate owned prior to remeasurement $ 42 $ 147 $ 542 Charge-offs recognized in the allowance for credit losses (9 ) (11 ) (25 ) Fair value of other real estate owned remeasured at initial recognition $ 33 $ 136 $ 517 Other real estate owned remeasured subsequent to initial recognition: Carrying value of other real estate owned prior to remeasurement $ 62 $ 35 $ 599 Write-downs included in collection and other real estate owned expense (1 ) (10 ) (56 ) Fair value of other real estate owned remeasured subsequent to initial recognition $ 61 $ 25 $ 543 The following table presents quantitative information about nonrecurring Level 3 fair value measurements at: December 31, 2020 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Other real estate owned $ 404 Appraisal value of collateral Selling costs or other normal adjustments 10%-20% (16%) The following table presents information on individually evaluated collateral dependent loans as of December 31, 2020: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ 85 $ 85 Real estate: Construction and development — — 401 401 Commercial real estate — — 7,941 7,941 Total $ — $ — $ 8,427 $ 8,427 December 31, 2019 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Impaired loans $ 20,028 Fair value of collateral - sales comparison approach Selling costs or other normal adjustments: Real estate Equipment 10%-20% (16%) 10%-20% (12%) Other real estate owned $ 603 Appraisal value of collateral Selling costs or other normal adjustments 10%-20% (16%) The following table presents information on individually evaluated collateral dependent loans as of December 31, 2019: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Fair Value Real estate: $ — $ — $ 53 $ 53 Farmland Commercial real estate — — 1,198 1,198 Total $ — $ — $ 1,251 $ 1,251 The carrying amounts and estimated fair values of financial instruments, not previously in this note, at December 31, 2020 and 2019 are as follows: Fair value measurements as of December 31, 2020 using: Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 351,791 $ 351,791 $ — $ — $ 351,791 Loans, net 1,831,737 — — 1,846,868 1,846,868 Accrued interest receivable 9,834 — 9,834 — 9,834 Nonmarketable equity securities 14,095 — 14,095 — 14,095 Financial liabilities: Deposits $ 2,286,390 $ 1,907,587 $ 380,570 $ — $ 2,288,157 Securities sold under repurchase agreements 15,631 — 15,631 — 15,631 Accrued interest payable 804 — 804 — 804 Federal Home Loan Bank advances 109,101 — 109,381 — 109,381 Subordinated debentures 19,810 — 17,406 — 17,406 Fair value measurements as of December 31, 2019 using: Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 90,714 $ 90,714 $ — $ — $ 90,714 Marketable securities held to maturity 155,458 — 160,460 — 160,460 Loans, net 1,690,794 — — 1,705,155 1,705,155 Accrued interest receivable 9,151 — 9,151 — 9,151 Nonmarketable equity securities 12,301 — 12,301 — 12,301 Financial liabilities: Deposits $ 1,956,804 $ 1,438,509 $ 520,469 $ — $ 1,958,978 Securities sold under repurchase agreements 11,100 — 11,100 — 11,100 Accrued interest payable 1,642 — 1,642 — 1,642 Federal Home Loan Bank advances 55,118 — 55,125 — 55,125 Subordinated debentures 10,810 — 8,677 — 8,677 The methods and assumptions, not previously presented, used to estimate fair values are described as follows: Cash and Cash Equivalents The carrying amounts of cash and short-term instruments approximate fair values (Level 1). Loans, net : The fair value of fixed-rate loans and variable-rate loans that reprice on an infrequent basis is estimated by discounting future cash flows using the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality (Level 3). Cash Surrender Value of Life Insurance The carrying amounts of bank-owned life insurance approximate their fair value. Nonmarketable Equity Securities It is not practical to determine the fair value of Independent Bankers Financial Corporation, Federal Home Loan Bank, Federal Reserve Bank of Dallas and other stock due to restrictions placed on its transferability. Deposits and Securities Sold Under Repurchase Agreements The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) (Level 1). The fair values of deposit liabilities with defined maturities are estimated by discounting future cash flows using interest rates currently offered for deposits of similar remaining maturities (Level 2). Other Borrowings The fair value of borrowings, consisting of lines of credit, Federal Home Loan Bank advances and Subordinated debentures is estimated by discounting future cash flows using currently available rates for similar financing (Level 2). Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate their fair values (Level 2). |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 23 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following are changes in accumulated other comprehensive income (loss) by component, net of tax, for the year ending December 31, 2020: Losses on Cash Flow Hedges Unrealized (Losses) and Gains on Available for Sale Securities Unrealized (Losses) and Gains on Held to Maturity Securities Total Beginning balance $ (526 ) $ (1,221 ) $ (46 ) $ (1,793 ) Net current period other comprehensive (loss) income (625 ) 12,001 46 11,422 Ending balance $ (1,151 ) $ 10,780 $ — $ 9,629 There were no amounts reclassified out of accumulated other comprehensive income (loss) for the year ended December 31, 2020. The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2019: Losses on Cash Flow Hedges Unrealized (Losses) and Gains on Available for Sale Securities Unrealized (Losses) and Gains on Held to Maturity Securities Total Beginning balance $ (393 ) $ (8,705 ) $ (64 ) $ (9,162 ) Other comprehensive income (loss) before reclassification (133 ) 7,467 18 7,352 Amounts reclassified from accumulated other comprehensive loss — 17 — 17 Net current period other comprehensive income (loss) (133 ) 7,484 18 7,369 Ending balance $ (526 ) $ (1,221 ) $ (46 ) $ (1,793 ) The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2019: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Accumulated Other Comprehensive Loss Affected Line Item in the Statement Where Net Earnings is Presented Unrealized loss on available for sale securities $ 22 Net realized loss on sale of securities transactions (5 ) Tax effect $ 17 Net of Tax The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2018: (Losses) and Gains on Cash Flow Hedges Unrealized Losses on Available for Sale Securities Unrealized (Losses) and Gains on Held to Maturity Securities Total Beginning balance $ (571 ) $ (5,460 ) $ (96 ) $ (6,127 ) Other comprehensive income (loss) before reclassification 178 (2,799 ) 32 (2,589 ) Amounts reclassified from accumulated other comprehensive loss — 40 — 40 Net current period other comprehensive income (loss) 178 (2,759 ) 32 (2,549 ) Reclassification of certain tax effects from accumulated other comprehensive loss — (486 ) — (486 ) Ending balance $ (393 ) $ (8,705 ) $ (64 ) $ (9,162 ) The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2018: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Accumulated Other Comprehensive Loss Affected Line Item in the Statement Where Net Earnings is Presented Unrealized gain on available for sale securities $ 50 Net realized gain on sale of securities transactions (10 ) Tax effect $ 40 Net of Tax |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 24 - EARNINGS PER SHARE Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted-average common shares outstanding for the period. Diluted earnings per share reflects the maximum potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and would then share in the net earnings of the Company. Dilutive share equivalents include stock-based awards issued to employees. Stock options granted by the Company are treated as potential shares in computing earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money awards which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax impact that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The computations of basic and diluted earnings per share for the Company were as follows (in thousands except per share amounts) as of December 31: 2020 2019 2018 Numerator: Net earnings (basic) $ 27,402 $ 26,279 $ 20,596 Net earnings (diluted) $ 27,402 $ 26,279 $ 20,596 Denominator: Weighted-average shares outstanding (basic) 11,108,564 11,638,897 11,562,826 Effect of dilutive securities: Common stock equivalent shares from stock options 32,781 66,202 90,940 Weighted-average shares outstanding (diluted) 11,141,345 11,705,099 11,653,766 Net earnings per share Basic $ 2.47 $ 2.26 $ 1.78 Diluted $ 2.46 $ 2.25 $ 1.77 |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | NOTE 25 - PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of Guaranty Bancshares, Inc. follows: 2020 2019 ASSETS Cash and cash equivalents $ 1,227 $ 7,264 Investment in banking subsidiaries 305,926 268,237 Other assets 451 469 Total assets $ 307,604 $ 275,970 LIABILITIES AND EQUITY Debt $ 31,810 $ 11,563 Accrued expenses and other liabilities 3,151 2,856 Shareholders’ equity 272,643 261,551 Total liabilities and shareholders’ equity $ 307,604 $ 275,970 2020 2019 2018 Interest income $ 10 $ 15 $ 13 Dividends from Guaranty Bank & Trust — 23,000 10,000 10 23,015 10,013 Expenses Interest expense 939 653 687 Other expenses 2,000 1,819 2,590 2,939 2,472 3,277 Income (loss) before income tax and equity in undistributed income of subsidiary (2,929 ) 20,543 6,736 Income tax benefit 574 639 482 Income (loss) before equity in undistributed earnings of subsidiary (2,355 ) 21,182 7,218 Equity in undistributed earnings of subsidiary 29,757 5,097 13,378 Net earnings $ 27,402 $ 26,279 $ 20,596 Comprehensive income $ 38,824 $ 33,648 $ 18,047 2020 2019 2018 Cash flows from operating activities Net earnings $ 27,402 $ 26,279 $ 20,596 Adjustments: Equity in undistributed subsidiary earnings (29,757 ) (5,097 ) (13,378 ) Stock based compensation 749 663 592 Change in other assets 18 85 127 Change in other liabilities (673 ) 503 557 Net cash (used in) provided by operating activities (2,261 ) 22,433 8,494 Cash flows from investing activities Cash paid in connection with acquisitions — — (6,423 ) Net cash used in investing activities — — (6,423 ) Cash flows from financing activities Proceeds of borrowings 40,000 — — Repayments of borrowings (19,000 ) (2,000 ) (1,000 ) Purchase of treasury stock (16,927 ) (10,140 ) (4,265 ) Exercise of stock options 638 925 327 Dividends paid (8,487 ) (8,065 ) (7,031 ) Net cash used in financing activities (3,776 ) (19,280 ) (11,969 ) Net change in cash and cash equivalents (6,037 ) 3,153 (9,898 ) Beginning cash and cash equivalents 7,264 4,111 14,009 Ending cash and cash equivalents $ 1,227 $ 7,264 $ 4,111 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation : The consolidated financial statements include the accounts of Guaranty Bancshares, Inc. and its wholly-owned subsidiary Guaranty Bank & Trust, N.A., (the “Bank” or "Guaranty Bank & Trust"). All entities combined are collectively referred to as the “Company”. All significant intercompany balances and transactions have been eliminated in consolidation. Non-Bank Investments : Guaranty Bank & Trust has six wholly-owned non-bank subsidiaries, Guaranty Company, Inc., G B Com, Inc., 2800 South Texas Avenue LLC, White Oak Aviation, LLC, Pin Oak Realty Holdings, Inc. and Pin Oak Asset Management, LLC (formerly Pin Oak Energy, LLC). All significant intercompany balances and transactions have been eliminated in consolidation. |
Nature of Operations | Nature of Operations : The Company operates several banking locations in Texas. The Company’s main sources of income are derived from granting loans, primarily in East Texas, Central Texas, the Dallas/Fort Worth metropolitan statistical area ("MSA"), and the Houston MSA, and investing in securities issued by the U.S. Treasury, U.S. government agencies and state and political subdivisions. A variety of financial products and services are provided to individual and corporate customers. The primary deposit products are checking accounts, money market accounts and certificates of deposit. The 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 East Texas, Central Texas, the Dallas/Fort Worth MSA and the Houston MSA. |
Use of Estimates | Use of Estimates : To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. Actual future results could differ. |
Cash and Cash Equivalents | Cash and Cash Equivalents : Cash and cash equivalents include cash, due from banks, interest-bearing deposits with other banks that have initial maturities less than 90 days and federal funds sold. Net cash flows are reported for loan and deposit transactions, and short-term borrowings with initial maturities less than 90 days. |
Marketable Securities | Marketable Securities : Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Management determines the appropriate classification of securities at the time of purchase. Interest income includes amortization and accretion of purchase premiums and discounts. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities that are in an unrealized loss position for credit-related factors, in order to determine if an allowance for credit losses is required. This evaluation is performed on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, any previous allowance for credit loss is written off and the amortized cost basis of the securities is written down to fair value, through earnings . For debt securities that do not meet t he 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) r ecognize 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) r ecognize the noncredit-related component of the fair value decline, if any , in other comprehensive income . The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. To the extent that expected cash flows improve, the standard permits reversal of allowance amounts in the current period earnings . |
Non-marketable Securities | Non-marketable Securities : Other securities, such as stock in the Independent Bankers Financial Corporation, the Federal Reserve Bank, and the Federal Home Loan Bank are accounted for on the cost basis and are carried in other assets. Stock in Valesco Commerce Street Capital, L.P., Valesco Fund II, L.P., Independent Bankers Capital Fund II, L.P., Independent Bankers Capital Fund III, L.P., and Lightspring Capital I, L.P. are accounted for on the cost basis in other assets. |
Loans Held for Sale | Loans Held for Sale : Certain residential mortgage loans are originated for sale in the secondary mortgage loan market. These loans are carried at the lower of cost or estimated fair market 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. |
Certain Acquired Loans | Certain Acquired Loans : Under the Financial Accounting Standards Board’s Accounting Standards Codification (ASC) 326, “Financial Instruments – Credit Losses” , loans purchased as part of a business combination that have evidence of credit deterioration since their origination date are to be recorded at amortized cost with an associated allowance for the expected credit loss at the date of the purchase. During 2018, the Company acquired a group of loans through the acquisition of Westbound Bank (“Westbound”), as described in Note 2. These acquired loans were recorded at their estimated fair value at the acquisition date, and were initially classified as purchased non-impaired loans (“acquired performing loans”). As such, none of these loans were subject to conversion to purchased credit deteriorated (“PCD”) when ASC 326 became effective for reporting periods beginning in 2020. These acquired performing loans are accounted for under ASC 310-20, “Nonrefundable Fees and Other Costs” . Performance of certain loans may be monitored and based on management’s assessment of the cash flows and other facts available, and portions of the accretable difference may be delayed or suspended if management deems appropriate. The Company’s policy for determining when to discontinue accruing interest on acquired performing loans and the subsequent accounting for such loans is essentially the same as the policy for originated loans described above. |
Allowance for Credit Losses | Allowance for Credit Losses: Available for Sale Debt Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the securities amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of the cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected are less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provisions for or reversal of credit loss expense. Losses are charged against the allowance when management believes an available for sale security is uncollectible or when either of the criteria regarding intent to sell or required to sell is met. Accrued interest receivable on available for sale debt securities is excluded from the estimate of credit losses. Loans The allowance for credit losses (referred to as the “ACL” for the year ended December 31, 2020 and synonymous with the allowance for loan losses for prior periods) 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 amount expected to be charged-off, including any amounts previously 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 economic 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 economic 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 seg ment) basis when similar risk characteristics exist. Our loan portfolio segments include both regulatory call report codes and by internally identified risk ratings for our commercial loan segments and by delinquency status for our consumer loan segments. We also have separately identified our mortgage warehouse loans, internally originated SBA loans, SBA loans acquired from Westbound Bank in 2018 and loans originated under the Paycheck Protection Program (“PPP”) for inherent risk analysis. 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 risk 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 risk 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 of the finished structures. Farmland: The farmland portfolio includes loans that are secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing & pastureland and timberland. This segment includes land with a 1-4 family residential structure if the value of the land exceeds the value of the residence. Risks inherent in this portfolio segment include adverse changes in climate, fluctuations in feed and cattle prices and changes in property values. Consumer: This portfolio segment consists of non-real estate loans to consumers. This includes secured and unsecured loans such as auto and personal loans. The risks inherent in this portfolio segment include those factors that would impact the consumer’s ability to meet their obligations under the loan. These include increases in the local unemployment rate and fluctuations in consumer and business sales. 1-4 family residential: This portfolio segment includes loans to both commercial and consumer borrowers secured by real estate for housing units of up to four families. Risks inherent in this portfolio segment include increases in the local unemployment rate, changes in the local economy and factors that would impact the value of the underlying collateral, such as changes in property values. Multi-family residential: This portfolio segment includes loans secured by structures containing five or more residential housing units. Risks inherent in this portfolio segment include increases to the local unemployment rate, changes in the local economy, and factors that would impact property values. Agricultural: The agricultural portfolio segment includes loans to individuals and companies in the dairy and cattle industries and farmers. Loans in the segment are secured by collateral including cattle, crops and equipment. Risks inherent in this portfolio segment include adverse changes in climate and fluctuations in feed and cattle prices. The following groups of loans are considered to carry specific similar inherent risk characteristics, which the Bank considers separately during its calculation of the allowance for credit losses. These groups of loans are reported within the segments identified in the previous table. Mortgage Warehouse: The mortgage warehouse portfolio includes loans in which we purchase mortgage loan ownership interests from unaffiliated mortgage originators that are generally held by us for a period of less than 30-days, typically 5-10 days before they are sold to an approved investor. These loans are consistently underwritten based on standards established by the approved investor. Risks inherent in this portfolio include borrower or mortgage originator fraud. SBA – Acquired Loans The SBA – acquired loans segment consists of partially SBA guaranteed loans that were acquired from Westbound Bank in June 2018. These loans are commercial real estate and commercial and industrial in nature and were underwritten with guidelines that are less conservative than our Company. Risks inherent in this portfolio include increases in interest rates, as most are variable rate loans, generally lower levels of borrower equity, less conservative underwriting guidelines, fluctuations in real estate values and changes in the local and national economy. SBA – Originated Loans The SBA – originated loans segment consists of loans that are partially guaranteed by the SBA and were originated and underwritten by Bank loan officers. Risks inherent in this portfolio include increases in interest rates due to variable rate structures, generally lower levels of borrower equity or net worth, fluctuations in real estate values and changes in the local and national economy. SBA – Paycheck Protection Program Loans Loans originated under the PPP are 100% government guaranteed by the SBA. As a result, the loans are excluded from the segments above and a minimal reserve estimate was applied to this segment of loans for purposes of calculating the credit loss provision. In general, the loans in our portfolio have low historical credit losses. The credit quality of loans in our portfolio is impacted by delinquency status and debt service coverage generated by our borrowers’ businesses and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, these types of loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process we refer to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. We consider the majority of our consumer type loans to be “seasoned” and that the credit quality and current level of delinquencies and defaults represents the level of reserve needed in the allowance for credit losses. If delinquencies and defaults were to increase, we may be required to increase our provision for credit losses, which would adversely affect our results of operations and financial condition. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial and industrial, construction, and commercial real estate loans. Internal risk ratings are a key factor that impact management’s estimates of loss factors used in determining the amount of the allowance for credit losses. Internal risk ratings are updated on a continuous basis. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are excluded from 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 indictor 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 indictor of 1-4 family residential loans. Others include changes in the local economy, changes in property values, and changes in local unemployment rates to be key credit quality indicators of the loans in the 1-4 family residential loan segment. Multi-family residential: Management considers changes in the local economy, changes in property values, vacancy rates and changes in local unemployment rates to be key credit quality indicators of the loans in the multifamily loan segment. Agricultural: In assessing risk associated with agricultural loans, management considers the borrower’s cash flows, the value of the underlying collateral and sources of secondary repayment to be primary credit quality indicators. From time to time, we modify our loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by us that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. We review each troubled debt restructured loan and determine on a case by case basis if the loan can be grouped with its like segment for allowance consideration or whether it should be individually evaluated for a specific allowance for credit loss allocation. If individually evaluated, an allowance for credit loss allocation is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. In response to the COVID-19 pandemic, the Bank provided financial relief to many of its customers through a 3-month principal and interest payment deferral program or an up to 6-month interest only program. Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES”) Act and the April 7, 2020 Interagency guidance, these loan modifications, and certain subsequent modifications, are not considered to be troubled debt restructurings. Reserve for Unfunded Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life |
Premises and Equipment | Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets. Maintenance, repairs and minor improvements are charged to noninterest expense as incurred. The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy: Bank Buildings Up to 40 years Equipment to 10 years Furniture and Fixtures to 7 years Software to 5 years Automobiles to 4 years |
Other Real Estate Owned | Other Real Estate Owned : Assets acquired through, or in lieu of, foreclosure are initially recorded at fair value, less estimated carrying and selling costs, when acquired, establishing a new cost basis. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. |
Transfers of Financial Assets | Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets : Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Impairment is tested for annually and exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At the measurement date, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Core deposit intangibles represent premiums paid on acquired deposits based on the estimated fair value of the deposits at the time of purchase. These premiums are amortized over a ten year period. |
Bank Owned Life Insurance | Bank Owned Life Insurance : The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Income Taxes | Income Taxes : Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. |
Loss Contingencies | Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Derivative Financial Instruments | Derivative Financial Instruments : The Company accounts for its derivatives under ASC 815, “Derivatives and Hedging,” which requires recognition of all derivatives as either assets or liabilities in the balance sheet and requires measurement of those instruments at fair value through adjustments to accumulated other comprehensive income and/or current earnings, as appropriate. On the date the Company enters into a derivative contract, the Company designates the derivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability or of an unrecognized firm commitment attributable to the hedged risk are recorded in current period operations. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in accumulated other comprehensive income and subsequently reclassified to operations in the same period(s) that the hedged transaction impacts operations. For free-standing derivative instruments, changes in fair value are reported in current period operations. Prior to entering a hedge transaction, the Company formally documents the relationship between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions along with a formal assessment at both inception of the hedge and on an ongoing basis as to the effectiveness of the derivative instrument in offsetting changes in fair values or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued and the adjustment to fair value of the derivative instrument is recorded in operations. |
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 18. |
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, 2020 and 2019. Deposits held with the Federal Reserve Bank earn interest. |
Stock Compensation | Stock Compensation : In accordance with ASC 718 , “Stock Compensation,” the Company uses the fair value method of accounting for share based compensation prescribed by the standard. The fair value of options granted is determined using the Black-Scholes option valuation model. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Earnings Per Share | Earnings Per Share : Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per share includes the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share are presented as if all stock splits and stock dividends were effective from the earliest period presented through the date of issuance of the financial statements. |
Comprehensive Income | Comprehensive Income : Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale 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. |
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 February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments January 1, 2020 for the cumulative effect of adopting ASC 326. The adoption of ASU 2016-13 did not have a significant impact on our regulatory capital ratios. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), 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 includes 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 m anaged or the services provided. Administrative and advisory services income is recognized as incurred. • Other noninterest income. Other noninterest income includes among other things, mortgage loan origination fees, wire transfer fees, stop payment fees, loan administration fees and mortgage warehouse lending fees. The majority of these fees in other noninterest income are not subject to the requirements of ASC 606. Fees that are within the scope of ASC 606 are generally received and recognized as revenue at the time the performance obligations are met. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid | The following table summarizes the consideration paid for Westbound and the fair value of the assets acquired and liabilities assumed recognized at the acquisition date Consideration: Westbound Cash $ 6,423 Equity instruments 29,568 Fair value of total consideration transferred $ 35,991 |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition, June 1, 2018. Westbound Cash and due from banks $ 24,927 Investment securities available for sale 15,264 Loans, net of discount 154,687 Accrued interest receivable 651 Premises and equipment 8,625 Core deposit intangible 2,700 Other assets 9,205 Total assets acquired 216,059 Non-interest bearing deposits 40,595 Interest bearing deposits 140,826 Federal Home Loan Bank advances 10,500 Accrued interest and other liabilities 1,565 Total liabilities assumed 193,486 Net assets acquired 22,573 Total consideration paid 35,991 Goodwill $ 13,418 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 securities available for sale as of December 31, 2020, and the amortized cost and fair value of securities held to maturity and available for sale, respectively, as of December 31, 2019 and the corresponding amounts of gross unrealized gains and losses: December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ 29,608 $ 1,382 $ 8 $ 30,982 Municipal securities 164,668 11,036 — 175,704 Mortgage-backed securities 104,210 3,041 87 107,164 Collateralized mortgage obligations 64,611 2,335 1 66,945 Total available for sale $ 363,097 $ 17,794 $ 96 $ 380,795 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ 19,667 $ 592 $ — $ 20,259 Municipal securities 16,780 576 8 17,348 Mortgage-backed securities 83,967 550 335 84,182 Collateralized mortgage obligations 89,798 1,146 17 90,927 Total available for sale $ 210,212 $ 2,864 $ 360 $ 212,716 Held to maturity: Municipal securities $ 138,416 $ 4,710 $ 3 $ 143,123 Mortgage-backed securities 14,365 198 13 14,550 Collateralized mortgage obligations 2,677 110 — 2,787 Total held to maturity $ 155,458 $ 5,018 $ 16 $ 160,460 |
Schedule of Securities with Gross Unrealized Losses | Information pertaining to securities with gross unrealized losses as of December 31, 2020, for which no allowance for credit losses has been recorded, and December 31, 2019, 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, 2020 Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ (8 ) $ 2,493 $ — $ — $ (8 ) $ 2,493 Mortgage-backed securities (87 ) 25,775 — — (87 ) 25,775 Collateralized mortgage obligations — — (1 ) 106 (1 ) 106 Total available for sale $ (95 ) $ 28,268 $ (1 ) $ 106 $ (96 ) $ 28,374 Less Than 12 Months 12 Months or Longer Total December 31, 2019 Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Available for sale: Municipal securities $ (8 ) $ 1,138 $ — $ — $ (8 ) $ 1,138 Mortgage-backed securities (25 ) 19,421 (310 ) 42,116 (335 ) 61,537 Collateralized mortgage obligations — — (17 ) 2,594 (17 ) 2,594 Total available for sale $ (33 ) $ 20,559 $ (327 ) $ 44,710 $ (360 ) $ 65,269 Held to maturity: Municipal securities $ (1 ) $ 1,313 $ (2 ) $ 759 $ (3 ) $ 2,072 Mortgage-backed securities — — (13 ) 7,032 (13 ) 7,032 Total held to maturity $ (1 ) $ 1,313 $ (15 ) $ 7,791 $ (16 ) $ 9,104 |
Schedule of Proceeds from Sales of Available for Sale Securities | The proceeds from sales of available for sale securities and the associated gains and losses are listed below: 2020 2019 2018 Proceeds from sales $ — $ 3,957 $ 411,796 Gross gains — — 4 Gross losses — (22 ) (54 ) |
Investments Classified by Contractual Maturity Date | The contractual maturities at December 31, 2020 of available for sale securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties. Available for Sale December 31, 2020 Amortized Cost Estimated Fair Value Due within one year $ 4,139 $ 4,154 Due after one year through five years 52,050 54,688 Due after five years through ten years 60,132 63,966 Due after ten years 77,955 83,878 Mortgage-backed securities 104,210 107,164 Collateralized mortgage obligations 64,611 66,945 Total Securities $ 363,097 $ 380,795 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of Loan Portfolio by Type of Loan | The following table summarizes our loan portfolio by type of loan at December 31: 2020 2019 Commercial and industrial $ 445,771 $ 279,583 Real estate: Construction and development 270,407 280,498 Commercial real estate 594,216 567,360 Farmland 78,508 57,476 1-4 family residential 389,096 412,166 Multi-family residential 21,701 37,379 Consumer 51,044 53,245 Agricultural 15,734 18,359 Overdrafts 342 329 Total loans (1) 1,866,819 1,706,395 Net of: Deferred loan (fees) costs, net (1,463 ) 601 Allowance for credit losses (33,619 ) (16,202 ) Total net loans (1) $ 1,831,737 $ 1,690,794 (1) Excludes accrued interest receivable on loans of $7.0 million and $6.4 million as of December 31, 2020 and 2019, 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, 2020, was as follows: December 31, 2020 Beginning balance $ 33,663 New loans 58,154 Effect of changes in composition of related parties (39 ) Repayments (39,219 ) Ending balance $ 52,559 |
Schedule of Allowance for Credit Losses Activity | The Company’s estimate of the allowance for credit losses (“ACL”) reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring. The following tables present the activity in the ACL by segment of loans for the years ended December 31, 2020, 2019 and 2018: For the Year Ended December 31, 2020 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for credit losses: Beginning balance, prior to adoption of ASC 326 $ 2,056 $ 2,378 $ 6,853 $ 570 $ 3,125 $ 409 $ 602 $ 197 $ 12 $ 16,202 Impact of adopting ASC 326 546 323 2,228 26 1,339 (50 ) 72 73 (9 ) 4,548 Provision for credit losses 1,398 2,034 6,698 624 1,915 4 373 (33 ) 187 13,200 Loans charged-off (68 ) — — — (68 ) — (155 ) (18 ) (234 ) (543 ) Recoveries 101 — 1 — 2 — 37 20 51 212 Ending balance $ 4,033 $ 4,735 $ 15,780 $ 1,220 $ 6,313 $ 363 $ 929 $ 239 $ 7 $ 33,619 For the Year Ended December 31, 2019 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Provision for loan losses (117 ) 458 827 (73 ) 268 (222 ) (2 ) (41 ) 152 1,250 Loans charged-off (86 ) — — — (14 ) — (72 ) (89 ) (192 ) (453 ) Recoveries 508 — 1 — 3 — 111 89 42 754 Ending balance $ 2,056 $ 2,378 $ 6,853 $ 570 $ 3,125 $ 409 $ 602 $ 197 $ 12 $ 16,202 For the Year Ended December 31, 2018 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,581 $ 1,724 $ 4,585 $ 523 $ 3,022 $ 629 $ 602 $ 187 $ 6 $ 12,859 Provision for loan losses 426 196 1,472 120 (196 ) 2 127 (12 ) 115 2,250 Loans charged-off (367 ) — (33 ) — (93 ) — (254 ) (2 ) (169 ) (918 ) Recoveries 111 — 1 — 135 — 90 65 58 460 Ending balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 |
Summary of Credit Exposure | The following table summarizes the credit exposure in the Company’s loan portfolio for each class of loans, by year of origination and risk rating, as of December 31, 2020: December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Total Commercial and industrial: Pass $ 278,687 $ 30,563 $ 12,860 $ 4,366 $ 6,131 $ 16,294 $ 90,074 $ 438,975 Special mention 124 119 222 4,040 1,324 — — 5,829 Substandard — 307 540 50 43 — — 940 Nonaccrual — — 13 — 14 — — 27 Total commercial and industrial loans $ 278,811 $ 30,989 $ 13,635 $ 8,456 $ 7,512 $ 16,294 $ 90,074 $ 445,771 Charge-offs $ — $ — $ (43 ) $ — $ — $ — $ (25 ) $ (68 ) Recoveries — — 43 — — 14 44 101 Current period net $ — $ — $ — $ — $ — $ 14 $ 19 $ 33 Construction and development: Pass $ 118,590 $ 76,926 $ 26,212 $ 24,524 $ 7,742 $ 10,507 $ 3,266 $ 267,767 Special mention 356 — — 990 — — — 1,346 Substandard — 609 5 — 680 — — 1,294 Nonaccrual — — — — — — — — Total construction and development loans $ 118,946 $ 77,535 $ 26,217 $ 25,514 $ 8,422 $ 10,507 $ 3,266 $ 270,407 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 91,819 $ 80,753 $ 89,542 $ 72,311 $ 86,946 $ 123,463 $ 5,890 $ 550,724 Special mention — 2,716 3,542 849 5,724 449 — 13,280 Substandard — — 2,010 4,913 4,445 8,240 — 19,608 Nonaccrual — 1,140 151 4,158 4,769 386 — 10,604 Total commercial real estate loans $ 91,819 $ 84,609 $ 95,245 $ 82,231 $ 101,884 $ 132,538 $ 5,890 $ 594,216 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — 1 — 1 Current period net $ — $ — $ — $ — $ — $ 1 $ — $ 1 Farmland: Pass $ 17,444 $ 12,668 $ 10,327 $ 6,620 $ 9,904 $ 15,402 $ 5,864 $ 78,229 Special mention — — — — — 35 — 35 Substandard — — — — — 129 — 129 Nonaccrual — — — — — 115 — 115 Total farmland loans $ 17,444 $ 12,668 $ 10,327 $ 6,620 $ 9,904 $ 15,681 $ 5,864 $ 78,508 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Total 1-4 family residential: Pass $ 87,578 $ 62,937 $ 52,087 $ 37,224 $ 43,858 $ 93,486 $ 10,091 $ 387,261 Special mention — — — — — 168 — 168 Substandard — — — — — — — — Nonaccrual — — 326 44 163 1,134 — 1,667 Total 1-4 family residential loans $ 87,578 $ 62,937 $ 52,413 $ 37,268 $ 44,021 $ 94,788 $ 10,091 $ 389,096 Charge-offs $ — $ — $ — $ — $ (9 ) $ (59 ) $ — $ (68 ) Recoveries — — — — — 2 — 2 Current period net $ — $ — $ — $ — $ (9 ) $ (57 ) $ — $ (66 ) Multi-family residential: Pass $ 5,889 $ 4,498 $ 3,617 $ 1,371 $ 1,737 $ 4,391 $ 198 $ 21,701 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family residential loans $ 5,889 $ 4,498 $ 3,617 $ 1,371 $ 1,737 $ 4,391 $ 198 $ 21,701 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Recoveries — — — — — — — — Current period net $ — $ — $ — $ — $ — $ — $ — $ — Consumer and overdrafts: Pass $ 24,740 $ 11,176 $ 9,369 $ 1,701 $ 735 $ 513 $ 2,825 $ 51,059 Special mention 16 83 9 7 — — — 115 Substandard — — — — — — — — Nonaccrual 24 36 131 20 1 — — 212 Total consumer loans and overdrafts $ 24,780 $ 11,295 $ 9,509 $ 1,728 $ 736 $ 513 $ 2,825 $ 51,386 Charge-offs $ (243 ) $ (63 ) $ (31 ) $ (43 ) $ (3 ) $ (6 ) $ — $ (389 ) Recoveries 49 2 12 8 4 13 — 88 Current period net $ (194 ) $ (61 ) $ (19 ) $ (35 ) $ 1 $ 7 $ — $ (301 ) Agricultural: Pass $ 3,489 $ 1,718 $ 1,893 $ 607 $ 273 $ 189 $ 7,408 $ 15,577 Special mention — — — 36 — — — 36 Substandard — 7 10 — 24 — — 41 Nonaccrual — — 33 — 45 2 — 80 Total agricultural loans $ 3,489 $ 1,725 $ 1,936 $ 643 $ 342 $ 191 $ 7,408 $ 15,734 Charge-offs $ — $ — $ (18 ) $ — $ — $ — $ — $ (18 ) Recoveries — — — — 20 — — 20 Current period net $ — $ — $ (18 ) $ — $ 20 $ — $ — $ 2 Total loans: Pass $ 628,236 $ 281,239 $ 205,907 $ 148,724 $ 157,326 $ 264,245 $ 125,616 $ 1,811,293 Special mention 496 2,918 3,773 5,922 7,048 652 — 20,809 Substandard — 923 2,565 4,963 5,192 8,369 — 22,012 Nonaccrual 24 1,176 654 4,222 4,992 1,637 — 12,705 Total loans $ 628,756 $ 286,256 $ 212,899 $ 163,831 $ 174,558 $ 274,903 $ 125,616 $ 1,866,819 Charge-offs $ (243 ) $ (63 ) $ (92 ) $ (43 ) $ (12 ) $ (65 ) $ (25 ) $ (543 ) Recoveries 49 2 55 8 24 30 44 212 Total current period net (charge-offs) recoveries $ (194 ) $ (61 ) $ (37 ) $ (35 ) $ 12 $ (35 ) $ 19 $ (331 ) The following table summarizes the credit exposure in the Company’s loan portfolio by class as of December 31, 2019: December 31, 2019 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer and Overdrafts Agricultural Total Grade: Pass $ 279,217 $ 278,679 $ 548,662 $ 57,152 $ 409,896 $ 37,379 $ 53,327 $ 18,101 $ 1,682,413 Special mention 153 600 1,071 91 1,425 — 192 126 3,658 Substandard 213 1,219 17,627 233 845 — 55 132 20,324 Total $ 279,583 $ 280,498 $ 567,360 $ 57,476 $ 412,166 $ 37,379 $ 53,574 $ 18,359 $ 1,706,395 |
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 ACL, as of December 31, 2020: Real Estate Non-RE Total Allowance for Credit Losses Allocation Commercial and industrial $ 129 $ — $ 129 $ 44 Real estate: Construction and development 609 — 609 208 Commercial real estate 9,989 — 9,989 2,048 Total $ 10,727 $ — $ 10,727 $ 2,300 |
Summary of Payment Status of Loans | The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans and loans 90 days or more past due continuing to accrue interest as of: December 31, 2020 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days and Greater Past Due Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing Commercial and industrial $ 385 $ 25 $ 22 $ 432 $ 445,339 $ 445,771 $ — Real estate: Construction and development 256 — — 256 270,151 270,407 — Commercial real estate 1,094 — 10,105 11,199 583,017 594,216 — Farmland 117 3 — 120 78,388 78,508 — 1-4 family residential 2,097 556 127 2,780 386,316 389,096 — Multi-family residential — — — — 21,701 21,701 — Consumer 383 124 97 604 50,440 51,044 — Agricultural 50 46 45 141 15,593 15,734 — Overdrafts — — — — 342 342 — Total $ 4,382 $ 754 $ 10,396 $ 15,532 $ 1,851,287 $ 1,866,819 $ — December 31, 2019 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days and Greater Past Due Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing Commercial and industrial $ 321 $ 53 $ 15 $ 389 $ 279,194 $ 279,583 $ — Real estate: Construction and development 161 — — 161 280,337 280,498 — Commercial real estate 1,181 49 882 2,112 565,248 567,360 — Farmland 103 — — 103 57,373 57,476 — 1-4 family residential 2,514 1,433 845 4,792 407,374 412,166 — Multi-family residential — — — — 37,379 37,379 — Consumer 373 152 96 621 52,624 53,245 — Agricultural 51 67 — 118 18,241 18,359 — Overdrafts — — — — 329 329 — Total $ 4,704 $ 1,754 $ 1,838 $ 8,296 $ 1,698,099 $ 1,706,395 $ — |
Schedule of Nonaccrual Loans | The following table presents information regarding nonaccrual loans as of: 2020 2019 Commercial and industrial $ 27 $ 46 Real estate: Commercial real estate 10,604 6,860 Farmland 115 182 1-4 family residential 1,667 3,853 Consumer and overdrafts 212 279 Agricultural 80 42 Total $ 12,705 $ 11,262 |
Summary of Troubled Debt Restructuring | The outstanding balances of TDRs are shown below at December 31: 2020 2019 Nonaccrual TDRs $ 90 $ 101 Performing TDRs 9,626 7,240 Total $ 9,716 $ 7,341 Specific reserves on TDRs $ — $ 164 The following table presents the loans by class, modified as TDRs that occurred during the year ended: December 31, 2020 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Construction and development 2 $ 1,289 $ 1,081 Commercial and industrial 1 129 85 Commercial real estate 1 1,017 670 Total 4 $ 2,435 $ 1,836 The following table presents the loan by class, modified as a TDR that occurred during the year ended: December 31, 2019 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial real estate 4 $ 1,680 $ 1,515 Total 4 $ 1,680 $ 1,515 |
Summary of Impaired Loans | The following table presents loans individually and collectively evaluated for impairment, and the respective allowance for loan losses as of December 31, 2019, as determined in accordance with ASC 310, prior to the adoption of ASC 326. A loan was considered impaired when, based on current information and events, it was probable that the Company would be unable to collect all amounts due from the borrower in accordance with original contractual terms of the loan. Loans with insignificant delays or insignificant short falls in the amount payments expected to be collected were not considered to be impaired. Loans defined as individually impaired included larger balance non-performing loans and TDRs. December 31, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Commercial and industrial $ 289 $ 289 $ — $ 312 Real estate: Construction and development 1,212 1,212 — 1,259 Commercial real estate 4,612 4,612 — 4,244 Farmland — — — — 1-4 family residential 2,498 2,498 — 1,798 Multi-family residential — — — — Consumer — — — — Agricultural 62 62 — 190 Subtotal 8,673 8,673 — 7,803 With allowance recorded: Commercial and industrial — — — 61 Real estate: Construction and development — — — — Commercial real estate 12,871 12,871 1,587 9,111 Farmland 133 133 62 135 1-4 family residential — — — 78 Multi-family residential — — — — Consumer — — — — Agricultural — — — — Subtotal 13,004 13,004 1,649 9,385 Total $ 21,677 $ 21,677 $ 1,649 $ 17,188 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment balances, by type, were as follows: December 31, 2020 December 31, 2019 Land $ 10,944 $ 10,944 Building and improvements 58,569 54,809 Furniture, fixtures and equipment 19,641 17,960 Automobiles 400 495 89,554 84,208 Less: accumulated depreciation 34,342 30,777 $ 55,212 $ 53,431 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets as of December 31 are summarized as follows: 2020 2019 Beginning of year $ 32,160 $ 32,160 Effect of acquisitions — — End of year $ 32,160 $ 32,160 |
CORE DEPOSIT INTANGIBLES (Table
CORE DEPOSIT INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 Beginning of year $ 3,853 $ 4,706 Amortization (854 ) (853 ) End of year $ 2,999 $ 3,853 |
Schedule of Future Amortization Expense | The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2020 was as follows: Year Ended December 31, Amount 2021 $ 687 2022 453 2023 441 2024 424 2025 316 Thereafter 678 $ 2,999 |
INTEREST-BEARING DEPOSITS (Tabl
INTEREST-BEARING DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interest Bearing Deposits [Abstract] | |
Schedule of Deposit Liabilities | Interest-bearing deposits, by type of account, were as follows as of: December 31, 2020 December 31, 2019 NOW accounts $ 259,357 $ 202,672 Savings and money market accounts 868,643 712,972 Time deposits $250,000 or less 245,796 300,608 Time deposits greater than $250,000 132,854 214,687 $ 1,506,650 $ 1,430,939 |
Schedule of Time Deposit Maturities | Year-end maturities of time deposits, as of December 31, 2020, were as follows: Year Ended December 31, Amount 2021 $ 306,760 2022 50,257 2023 13,755 2024 5,162 2025 2,716 Thereafter — $ 378,650 |
BORROWED MONEY (Tables)
BORROWED MONEY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Maturities | Federal Home Loan Bank (“FHLB”) advances, as of December 31, 2020, were as follows: Fixed-rate advances, with monthly interest payments, principal due in: Year Current Weighted Average Rate Principal Due 2021 0.15 % $ 101,500 2022 1.99 % 1,500 2023 0.00 % — 2024 1.76 % 6,000 2025 0.00 % — 109,000 Fixed-rate advances, with monthly principal and interest payments, principal due in: Year Current Weighted Average Rate Principal Due 2021 1.38 % 101 101 $ 109,101 The scheduled principal payments and weighted average rates of other debentures are as follows: Year Current Weighted Average Rate Principal Due 2022 2.45 % $ 2,000 2023 2.85 % 3,500 2024 3.74 % 4,000 $ 9,500 |
SUBORDINATED DEBENTURES (Tables
SUBORDINATED DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Debentures and Other Debentures | Subordinated debentures are made up of the following as of: December 31, 2020 December 31, 2019 Trust II Debentures $ 3,093 $ 3,093 Trust III Debentures 2,062 2,062 DCB Trust I Debentures 5,155 5,155 Other debentures 9,500 500 $ 19,810 $ 10,810 Trust II Debentures Trust III Debentures DCB Trust I Debentures Original amount $ 3,093 $ 2,062 $ 5,155 Maturity date October 30, 2032 October 1, 2036 June 15, 2037 Interest due Quarterly Quarterly Quarterly |
Schedule of Trusts | Trust II Trust III DCB Trust I Formation date October 30, 2002 July 25, 2006 March 29, 2007 Capital trust pass-through securities Number of shares 3,000 2,000 5,000 Original liquidation value $ 3,000 $ 2,000 $ 5,000 Common securities liquidation value 93 62 155 |
Schedule of Debt Maturities | Federal Home Loan Bank (“FHLB”) advances, as of December 31, 2020, were as follows: Fixed-rate advances, with monthly interest payments, principal due in: Year Current Weighted Average Rate Principal Due 2021 0.15 % $ 101,500 2022 1.99 % 1,500 2023 0.00 % — 2024 1.76 % 6,000 2025 0.00 % — 109,000 Fixed-rate advances, with monthly principal and interest payments, principal due in: Year Current Weighted Average Rate Principal Due 2021 1.38 % 101 101 $ 109,101 The scheduled principal payments and weighted average rates of other debentures are as follows: Year Current Weighted Average Rate Principal Due 2022 2.45 % $ 2,000 2023 2.85 % 3,500 2024 3.74 % 4,000 $ 9,500 |
EQUITY AWARDS (Tables)
EQUITY AWARDS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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: 2020 2019 2018 Risk-free interest rate 0.79 % 2.11 % 2.87 % Expected term (in years) 6.50 6.50 6.50 Expected stock price volatility 22.26 % 19.89 % 20.10 % Dividend yield 2.56 % 2.36 % 1.76 % |
Schedule of Stock Option Activity | A summary of activity in the Plan during the years ended December 31 follows: 2020 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 508,000 $ 26.68 6.24 $ 3,159 Granted 74,000 28.67 9.57 145 Exercised (26,600 ) 24.00 1.79 158 Forfeited (49,200 ) 29.71 7.58 84 Balance, December 31, 2020 506,200 $ 26.81 5.82 $ 1,805 Exercisable at end of period 291,520 $ 25.63 4.74 $ 1,339 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 537,872 $ 26.49 6.97 $ 2,088 Granted 39,000 29.89 9.40 117 Exercised (37,672 ) 24.55 4.11 314 Forfeited (31,200 ) 30.04 8.02 89 Balance, December 31, 2019 508,000 $ 26.68 6.24 $ 3,159 Exercisable at end of period 256,880 $ 25.21 5.18 $ 1,971 |
Schedule of Nonvested Stock Option Activity | A summary of nonvested activity in the Plan during the years ended December 31 follows: 2020 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 251,120 $ 28.18 7.31 $ 1,188 Granted 74,000 28.67 9.57 145 Vested (71,040 ) 27.26 6.00 230 Forfeited (39,400 ) 29.71 7.58 84 Balance, December 31, 2020 214,680 $ 28.42 7.28 $ 466 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 331,560 $ 27.74 7.77 $ 975 Granted 39,000 29.89 9.40 117 Vested (91,040 ) 26.71 6.02 563 Forfeited (28,400 ) 33.00 8.81 89 Balance, December 31, 2019 251,120 $ 28.18 7.31 $ 1,188 |
Plan Information | Information related to the Plan is as follows for the years ended December 31: 2020 2019 2018 Intrinsic value of options exercised $ 158 $ 314 $ 102 Cash received from options exercised 638 925 327 Weighted average fair value of options granted 4.46 4.97 6.69 |
Summary of Restricted Stock Activity | A summary of restricted stock activity in the Plan during the years ended December 31, 2020 and 2019 follows: 2020 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 31,459 $ 30.29 Granted 19,500 29.32 Vested (15,179 ) 30.33 Forfeited (480 ) 31.57 Balance, December 31, 2020 35,300 $ 29.72 2019 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 2,398 $ 31.57 Granted 30,500 30.25 Vested (1,439 ) 31.57 Forfeited — — Balance, December 31, 2019 31,459 $ 30.29 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Operating leases Operating lease right-of-use assets $ 13,291 $ 11,554 Operating lease liabilities 13,539 11,675 Weighted average remaining lease term Operating leases 9 years 10 years Weighted average discount rate Operating leases 2.19 % 2.69 % |
Schedule of Minimum Future Lease Payments Under Non-Cancelable Operating Leases | The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2025 and thereafter. Minimum future lease payments under these non-cancelable operating leases within ASC 842 as of December 31, 2020, are as follows: Year Ended December 31, Amount 2021 $ 1,956 2022 1,779 2023 1,747 2024 1,750 2025 1,627 Thereafter 6,091 Total lease payments 14,950 Less: interest (1,411 ) Present value of lease liabilities $ 13,539 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The consolidated provision for income taxes were as follows as of December 31: 2020 2019 2018 Current federal tax expense $ 10,542 $ 6,097 $ 5,288 Deferred federal tax (benefit) expense (4,647 ) (319 ) (683 ) Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate — — (6 ) Total $ 5,895 $ 5,778 $ 4,599 |
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: 2020 2019 2018 Federal statutory income tax at 21% $ 6,992 $ 6,732 $ 5,291 Tax exempt interest income (1,065 ) (1,027 ) (968 ) Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate — — (6 ) Earnings of bank owned life insurance (182 ) (192 ) (113 ) Nondeductible expenses 356 462 566 Other (206 ) (197 ) (171 ) Total $ 5,895 $ 5,778 $ 4,599 |
Schedule of Deferred Tax Assets and Liabilities | The following table summarizes the components of our deferred tax assets and liabilities as of December 31, 2020 and 2019, and includes a $955 increase to the deferred tax assets associated with the day one effect of our transition to CECL on January 1, 2020. Our net deferred tax assets are included in other assets in the accompanying consolidated balance sheets. 2020 2019 Deferred tax assets: Allowance for credit losses $ 7,060 $ 3,402 Deferred compensation 920 857 Bonus accrual 422 399 Deferred loan fees, net 259 — Accretion of acquisition allowance 112 183 Other real estate owned 2 134 Other 437 420 Total deferred tax assets 9,212 5,395 Deferred tax liabilities: Unrealized gain on available for sale securities (3,717 ) (526 ) Premises and equipment (2,721 ) (2,353 ) Prepaid expenses (343 ) (270 ) Deferred loan costs, net — (137 ) Intangibles (350 ) (470 ) Other (42 ) (101 ) Total deferred tax liabilities (7,173 ) (3,857 ) Net deferred tax asset $ 2,039 $ 1,538 |
NONINTEREST INCOME AND NONINT_2
NONINTEREST INCOME AND NONINTEREST EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Nonoperating Income and Expenses | Other operating income consisted of the following for the years ended December 31: 2020 2019 2018 Fiduciary and custodial income $ 2,012 $ 1,760 $ 1,587 Bank-owned life insurance income 838 774 570 Merchant and debit card fees 5,515 4,264 3,642 Loan processing fee income 628 590 589 Warehouse lending fees 957 679 471 Mortgage fee income 771 323 283 Other noninterest income 2,418 2,029 2,303 Total $ 13,139 $ 10,419 $ 9,445 Other operating expense consisted of the following for the years ended December 31: 2020 2019 2018 Legal and professional fees $ 2,650 $ 2,610 $ 3,080 Software support fees 4,104 3,341 2,502 Amortization 1,349 1,378 1,228 Director and committee fees 846 873 1,029 Advertising and promotions 1,498 1,655 1,410 ATM and debit card expense 1,951 1,347 1,127 Office and computer supplies 645 470 416 Postage 268 302 310 Telecommunication expense 864 676 649 FDIC insurance assessment fees 821 173 625 Other real estate owned expenses and write-downs 77 59 157 Other noninterest expense 4,036 3,900 3,721 Total $ 19,109 $ 16,784 $ 16,254 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Information Pertaining to Outstanding Interest Rate Swap Agreements | The information pertaining to outstanding interest rate swap agreements used to hedge floating rate debentures and FHLB advances was as follows as of: December 31, 2020 Notional Amount Pay Rate Receive Rate Effective Date Maturity in Years Unrealized Losses $ 2,000 5.979 % 3 month LIBOR plus 1.67% 10/1/2016 5.25 $ 408 $ 3,000 7.505 % 3 month LIBOR plus 3.35% 10/30/2012 1.83 $ 221 $ 15,000 0.668 % 3 month LIBOR 3/18/2020 2.22 $ 159 $ 15,000 0.790 % 3 month LIBOR 3/18/2020 4.22 $ 288 $ 10,000 0.530 % 3 month LIBOR 3/23/2020 2.23 $ 75 December 31, 2019 Notional Amount Pay Rate Receive Rate Effective Date Maturity in Years Unrealized Losses $ 2,000 5.979 % 3 month LIBOR plus 1.67% 10/1/2016 6.25 $ 314 $ 3,000 7.505 % 3 month LIBOR plus 3.35% 10/30/2012 2.83 $ 212 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Letters of Credit Outstanding | Commitments and letters of credit outstanding were as follows as of December 31: Contract or Notional Amount 2020 2019 Commitments to extend credit $ 324,276 $ 440,685 Letters of credit 8,488 9,054 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 is presented in the following tables: Actual Minimum Required For Capital Adequacy Purposes Minimum Required Under Basel III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital to risk-weighted assets: Consolidated $ 263,144 13.20% $ 159,496 8.00% $ 209,338 10.50% n/a Bank 285,490 14.32% 159,514 8.00% 209,362 10.50% $ 199,392 10.00% Tier 1 capital to risk-weighted assets: Consolidated 238,115 11.94% 119,622 6.00% 169,464 8.50% n/a Bank 260,459 13.06% 119,635 6.00% 169,483 8.50% 159,514 8.00% Tier 1 capital to average assets: (1) Consolidated 238,115 9.13% 104,293 4.00% 104,293 4.00% n/a Bank 260,459 9.99% 104,293 4.00% 104,293 4.00% 130,366 5.00% Common equity tier 1 capital to risk-weighted assets: Consolidated 227,805 11.43% 89,716 4.50% 139,559 7.00% n/a Bank 260,459 13.06% 89,726 4.50% 139,574 7.00% 129,605 6.50% (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Actual Minimum Required For Capital Adequacy Purposes Minimum Required Under Basel III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total capital to risk-weighted assets: Consolidated $ 253,793 13.29% $ 152,770 8.00% $ 200,510 10.50% n/a Bank 249,643 13.07% 152,774 8.00% 200,516 10.50% $ 190,968 10.00% Tier 1 capital to risk-weighted assets: Consolidated 237,591 12.44% 114,577 6.00% 162,318 8.50% n/a Bank 233,441 12.22% 114,581 6.00% 162,322 8.50% 152,774 8.00% Tier 1 capital to average assets: (1) Consolidated 237,591 10.29% 92,318 4.00% 92,318 4.00% n/a Bank 233,441 10.11% 92,321 4.00% 92,321 4.00% 115,401 5.00% Common equity tier 1 capital to risk-weighted assets: Consolidated 227,281 11.90% 85,933 4.50% 133,674 7.00% n/a Bank 233,441 12.22% 85,935 4.50% 133,677 7.00% 124,129 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, 2020 | |
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: 2020 2019 Average balance during the year $ 18,115 $ 10,901 Average interest rate during the year 0.18 % 0.50 % Maximum month-end balance during the year $ 21,400 $ 11,542 Weighted average interest rate at year-end 0.19 % 0.31 % |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets (Liabilities) Measured at Fair Value | The following table summarizes quantitative disclosures about the fair value measurements for each category of financial assets (liabilities) carried at fair value as of December 31: 2020 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 107,164 $ — $ 107,164 $ — Collateralized mortgage obligations 66,945 — 66,945 — Municipal securities 175,704 — 175,704 — Corporate bonds 30,982 — 30,982 — Loans held for sale 5,542 — — 5,542 Cash surrender value of life insurance 35,510 — 35,510 — SBA servicing assets 763 — — 763 Derivative instrument assets 629 — 629 — Derivative instrument liabilities (1,151 ) — (1,151 ) — Assets at fair value on a nonrecurring basis: Individually evaluated collateral dependent loans 8,427 — — 8,427 2019 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 84,182 $ — $ 84,182 $ — Collateralized mortgage obligations 90,927 — 90,927 — Municipal securities 17,348 — 17,348 — Corporate bonds 20,259 — 20,259 — Loans held for sale 2,368 — — 2,368 Cash surrender value of life insurance 34,495 — 34,495 — SBA servicing assets 672 — — 672 Derivative instrument assets 526 — 526 — Derivative instrument liabilities (526 ) — (526 ) — Assets at fair value on a nonrecurring basis: Impaired loans 20,028 — — 20,028 |
Schedule of Foreclosed Assets Measured at Fair Value | The following table presents foreclosed assets that were remeasured and recorded at fair value as of December 31: 2020 2019 2018 Other real estate owned remeasured at initial recognition: Carrying value of other real estate owned prior to remeasurement $ 42 $ 147 $ 542 Charge-offs recognized in the allowance for credit losses (9 ) (11 ) (25 ) Fair value of other real estate owned remeasured at initial recognition $ 33 $ 136 $ 517 Other real estate owned remeasured subsequent to initial recognition: Carrying value of other real estate owned prior to remeasurement $ 62 $ 35 $ 599 Write-downs included in collection and other real estate owned expense (1 ) (10 ) (56 ) Fair value of other real estate owned remeasured subsequent to initial recognition $ 61 $ 25 $ 543 |
Schedule of Quantitative Information About Nonrecurring Level 3 Fair Value Measurements | The following table presents quantitative information about nonrecurring Level 3 fair value measurements at: December 31, 2020 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Other real estate owned $ 404 Appraisal value of collateral Selling costs or other normal adjustments 10%-20% (16%) December 31, 2019 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Impaired loans $ 20,028 Fair value of collateral - sales comparison approach Selling costs or other normal adjustments: Real estate Equipment 10%-20% (16%) 10%-20% (12%) Other real estate owned $ 603 Appraisal value of collateral Selling costs or other normal adjustments 10%-20% (16%) |
Schedule of Individually Evaluated Collateral Dependent Loans at Fair Value | The following table presents information on individually evaluated collateral dependent loans as of December 31, 2020: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Fair Value Commercial and industrial $ — $ — $ 85 $ 85 Real estate: Construction and development — — 401 401 Commercial real estate — — 7,941 7,941 Total $ — $ — $ 8,427 $ 8,427 The following table presents information on individually evaluated collateral dependent loans as of December 31, 2019: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Fair Value Real estate: $ — $ — $ 53 $ 53 Farmland Commercial real estate — — 1,198 1,198 Total $ — $ — $ 1,251 $ 1,251 |
Schedule of Carrying Amounts And Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments, not previously in this note, at December 31, 2020 and 2019 are as follows: Fair value measurements as of December 31, 2020 using: Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 351,791 $ 351,791 $ — $ — $ 351,791 Loans, net 1,831,737 — — 1,846,868 1,846,868 Accrued interest receivable 9,834 — 9,834 — 9,834 Nonmarketable equity securities 14,095 — 14,095 — 14,095 Financial liabilities: Deposits $ 2,286,390 $ 1,907,587 $ 380,570 $ — $ 2,288,157 Securities sold under repurchase agreements 15,631 — 15,631 — 15,631 Accrued interest payable 804 — 804 — 804 Federal Home Loan Bank advances 109,101 — 109,381 — 109,381 Subordinated debentures 19,810 — 17,406 — 17,406 Fair value measurements as of December 31, 2019 using: Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 90,714 $ 90,714 $ — $ — $ 90,714 Marketable securities held to maturity 155,458 — 160,460 — 160,460 Loans, net 1,690,794 — — 1,705,155 1,705,155 Accrued interest receivable 9,151 — 9,151 — 9,151 Nonmarketable equity securities 12,301 — 12,301 — 12,301 Financial liabilities: Deposits $ 1,956,804 $ 1,438,509 $ 520,469 $ — $ 1,958,978 Securities sold under repurchase agreements 11,100 — 11,100 — 11,100 Accrued interest payable 1,642 — 1,642 — 1,642 Federal Home Loan Bank advances 55,118 — 55,125 — 55,125 Subordinated debentures 10,810 — 8,677 — 8,677 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following are changes in accumulated other comprehensive income (loss) by component, net of tax, for the year ending December 31, 2020: Losses on Cash Flow Hedges Unrealized (Losses) and Gains on Available for Sale Securities Unrealized (Losses) and Gains on Held to Maturity Securities Total Beginning balance $ (526 ) $ (1,221 ) $ (46 ) $ (1,793 ) Net current period other comprehensive (loss) income (625 ) 12,001 46 11,422 Ending balance $ (1,151 ) $ 10,780 $ — $ 9,629 The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2019: Losses on Cash Flow Hedges Unrealized (Losses) and Gains on Available for Sale Securities Unrealized (Losses) and Gains on Held to Maturity Securities Total Beginning balance $ (393 ) $ (8,705 ) $ (64 ) $ (9,162 ) Other comprehensive income (loss) before reclassification (133 ) 7,467 18 7,352 Amounts reclassified from accumulated other comprehensive loss — 17 — 17 Net current period other comprehensive income (loss) (133 ) 7,484 18 7,369 Ending balance $ (526 ) $ (1,221 ) $ (46 ) $ (1,793 ) The following are changes in accumulated other comprehensive loss by component, net of tax, for the year ended December 31, 2018: (Losses) and Gains on Cash Flow Hedges Unrealized Losses on Available for Sale Securities Unrealized (Losses) and Gains on Held to Maturity Securities Total Beginning balance $ (571 ) $ (5,460 ) $ (96 ) $ (6,127 ) Other comprehensive income (loss) before reclassification 178 (2,799 ) 32 (2,589 ) Amounts reclassified from accumulated other comprehensive loss — 40 — 40 Net current period other comprehensive income (loss) 178 (2,759 ) 32 (2,549 ) Reclassification of certain tax effects from accumulated other comprehensive loss — (486 ) — (486 ) Ending balance $ (393 ) $ (8,705 ) $ (64 ) $ (9,162 ) |
Reclassification out of Accumulated Other Comprehensive Loss | The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2019: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Accumulated Other Comprehensive Loss Affected Line Item in the Statement Where Net Earnings is Presented Unrealized loss on available for sale securities $ 22 Net realized loss on sale of securities transactions (5 ) Tax effect $ 17 Net of Tax The following are amounts reclassified out of each component of accumulated other comprehensive loss for the year ended December 31, 2018: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified From Accumulated Other Comprehensive Loss Affected Line Item in the Statement Where Net Earnings is Presented Unrealized gain on available for sale securities $ 50 Net realized gain on sale of securities transactions (10 ) Tax effect $ 40 Net of Tax |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 2018 Numerator: Net earnings (basic) $ 27,402 $ 26,279 $ 20,596 Net earnings (diluted) $ 27,402 $ 26,279 $ 20,596 Denominator: Weighted-average shares outstanding (basic) 11,108,564 11,638,897 11,562,826 Effect of dilutive securities: Common stock equivalent shares from stock options 32,781 66,202 90,940 Weighted-average shares outstanding (diluted) 11,141,345 11,705,099 11,653,766 Net earnings per share Basic $ 2.47 $ 2.26 $ 1.78 Diluted $ 2.46 $ 2.25 $ 1.77 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed financial information of Guaranty Bancshares, Inc. follows: 2020 2019 ASSETS Cash and cash equivalents $ 1,227 $ 7,264 Investment in banking subsidiaries 305,926 268,237 Other assets 451 469 Total assets $ 307,604 $ 275,970 LIABILITIES AND EQUITY Debt $ 31,810 $ 11,563 Accrued expenses and other liabilities 3,151 2,856 Shareholders’ equity 272,643 261,551 Total liabilities and shareholders’ equity $ 307,604 $ 275,970 |
Condensed Income Statement | 2020 2019 2018 Interest income $ 10 $ 15 $ 13 Dividends from Guaranty Bank & Trust — 23,000 10,000 10 23,015 10,013 Expenses Interest expense 939 653 687 Other expenses 2,000 1,819 2,590 2,939 2,472 3,277 Income (loss) before income tax and equity in undistributed income of subsidiary (2,929 ) 20,543 6,736 Income tax benefit 574 639 482 Income (loss) before equity in undistributed earnings of subsidiary (2,355 ) 21,182 7,218 Equity in undistributed earnings of subsidiary 29,757 5,097 13,378 Net earnings $ 27,402 $ 26,279 $ 20,596 Comprehensive income $ 38,824 $ 33,648 $ 18,047 |
Condensed Cash Flow Statement | 2020 2019 2018 Cash flows from operating activities Net earnings $ 27,402 $ 26,279 $ 20,596 Adjustments: Equity in undistributed subsidiary earnings (29,757 ) (5,097 ) (13,378 ) Stock based compensation 749 663 592 Change in other assets 18 85 127 Change in other liabilities (673 ) 503 557 Net cash (used in) provided by operating activities (2,261 ) 22,433 8,494 Cash flows from investing activities Cash paid in connection with acquisitions — — (6,423 ) Net cash used in investing activities — — (6,423 ) Cash flows from financing activities Proceeds of borrowings 40,000 — — Repayments of borrowings (19,000 ) (2,000 ) (1,000 ) Purchase of treasury stock (16,927 ) (10,140 ) (4,265 ) Exercise of stock options 638 925 327 Dividends paid (8,487 ) (8,065 ) (7,031 ) Net cash used in financing activities (3,776 ) (19,280 ) (11,969 ) Net change in cash and cash equivalents (6,037 ) 3,153 (9,898 ) Beginning cash and cash equivalents 7,264 4,111 14,009 Ending cash and cash equivalents $ 1,227 $ 7,264 $ 4,111 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Jan. 01, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)subsidarysegment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Property Plant And Equipment [Line Items] | |||||
Number of subsidiaries | subsidary | 6 | ||||
Goodwill impairment | $ 0 | ||||
Number of operating segments | segment | 1 | ||||
Number of reportable operating segments | segment | 1 | ||||
Reclassification of certain tax effects from accumulated other comprehensive income | $ (486,000) | ||||
Provision for credit losses | $ 13,200,000 | $ 1,250,000 | $ 2,250,000 | ||
Decrease to retained earnings | 113,449,000 | 98,239,000 | |||
Retained earnings, net of tax | 955,000 | ||||
Operating lease right of use asset | 13,291,000 | 11,554,000 | |||
Operating lease liability | $ 13,539,000 | $ 11,675,000 | |||
Accounting Standards Update 2018-02 | |||||
Property Plant And Equipment [Line Items] | |||||
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false] | true | ||||
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2020 | ||||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||||
Property Plant And Equipment [Line Items] | |||||
Reclassification of certain tax effects from accumulated other comprehensive income | $ (486,000) | ||||
Accounting Standards Update 2018-02 | Retained Earnings | |||||
Property Plant And Equipment [Line Items] | |||||
Reclassification of certain tax effects from accumulated other comprehensive income | 486,000 | ||||
Accounting Standards Update 2017-04 | |||||
Property Plant And Equipment [Line Items] | |||||
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2020 | ||||
Change In Accounting Principle Accounting Standards Update Adopted | true | ||||
Change In Accounting Principle Accounting Standards Update Immaterial Effect | true | ||||
Accounting Standards Update 2016-13 | |||||
Property Plant And Equipment [Line Items] | |||||
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2020 | ||||
Change In Accounting Principle Accounting Standards Update Adopted | true | ||||
Increase to allowance for credit losses | $ 4,548,000 | ||||
Increase to allowance for credit losses, percent | 28.10% | ||||
Provision for credit losses | $ 13,200,000 | ||||
Accounting Standards Update 2016-13 | Impact of adoption of ASC 326 | Revision of Prior Period, Adjustment | |||||
Property Plant And Equipment [Line Items] | |||||
Decrease to retained earnings | (3,593,000) | ||||
Retained earnings, net of tax | $ 955,000 | ||||
Accounting Standards Update 2016-02 | |||||
Property Plant And Equipment [Line Items] | |||||
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2019 | ||||
Change In Accounting Principle Accounting Standards Update Adopted | true | ||||
Change In Accounting Principle Accounting Standards Update Immaterial Effect | false | ||||
Operating lease right of use asset | 12,000,000 | ||||
Operating lease liability | $ 12,000,000 | ||||
Accounting Standards Update 2014-09 | |||||
Property Plant And Equipment [Line Items] | |||||
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2018 | ||||
Change In Accounting Principle Accounting Standards Update Adopted | true | ||||
Change In Accounting Principle Accounting Standards Update Immaterial Effect | true | ||||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Extensible List] | us-gaap:AccountingStandardsUpdate201409RetrospectiveMember | ||||
Core Deposits | |||||
Property Plant And Equipment [Line Items] | |||||
Core deposit amortization period | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Estimated Useful Life of Different Fixed Asset Classes (Details) - Maximum | 12 Months Ended |
Dec. 31, 2020 | |
Bank Buildings | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 40 years |
Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 10 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 7 years |
Software | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Automobiles | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 4 years |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - USD ($) | Jun. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 32,160,000 | $ 32,160,000 | $ 32,160,000 | |
Westbound Bank | ||||
Business Acquisition [Line Items] | ||||
Percentage of shares acquired | 100.00% | |||
Total consideration transferred | $ 35,991,000 | |||
Shares issued (shares) | 899,816 | |||
Shares of acquired company exchanged (shares) | 2,311,952 | |||
Acquisition related costs | $ 1,175,000 | |||
Goodwill | 13,418,000 | |||
Goodwill expected to be deducted | 0 | |||
Contingent consideration withheld in escrow | $ 1,750,000 | |||
Performance period pertinent to contingent consideration | 3 years | |||
Fair value of performing loans | $ 154,687,000 |
ACQUISITION - Summary of Consid
ACQUISITION - Summary of Consideration Paid (Details) - USD ($) $ in Thousands | Jun. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Cash | $ 0 | $ 0 | $ 6,423 | |
Westbound Bank | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 6,423 | |||
Equity instruments | 29,568 | |||
Fair value of total consideration transferred | $ 35,991 |
ACQUISITION - Summary of Estima
ACQUISITION - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 01, 2018 |
Liabilities [Abstract] | ||||
Goodwill | $ 32,160 | $ 32,160 | $ 32,160 | |
Westbound Bank | ||||
Assets [Abstract] | ||||
Cash and due from banks | $ 24,927 | |||
Investment securities available for sale | 15,264 | |||
Loans, net of discount | 154,687 | |||
Accrued interest receivable | 651 | |||
Premises and equipment | 8,625 | |||
Core deposit intangible | 2,700 | |||
Other assets | 9,205 | |||
Total assets acquired | 216,059 | |||
Liabilities [Abstract] | ||||
Non-interest bearing deposits | 40,595 | |||
Interest bearing deposits | 140,826 | |||
Federal Home Loan Bank advances | 10,500 | |||
Accrued interest and other liabilities | 1,565 | |||
Total liabilities assumed | 193,486 | |||
Net assets acquired | 22,573 | |||
Total consideration paid | 35,991 | |||
Goodwill | $ 13,418 |
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, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | $ 363,097 | $ 210,212 |
Gross Unrealized Gain | 17,794 | 2,864 |
Gross Unrealized Loss | 96 | 360 |
Estimated Fair Value | 380,795 | 212,716 |
Held to maturity: | ||
Amortized Cost | 155,458 | |
Gross Unrealized Gains | 5,018 | |
Gross Unrealized Losses | 16 | |
Estimated Fair Value | 160,460 | |
Corporate bonds | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 29,608 | 19,667 |
Gross Unrealized Gain | 1,382 | 592 |
Gross Unrealized Loss | 8 | 0 |
Estimated Fair Value | 30,982 | 20,259 |
Mortgage-backed securities | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 104,210 | 83,967 |
Gross Unrealized Gain | 3,041 | 550 |
Gross Unrealized Loss | 87 | 335 |
Estimated Fair Value | 107,164 | 84,182 |
Held to maturity: | ||
Amortized Cost | 14,365 | |
Gross Unrealized Gains | 198 | |
Gross Unrealized Losses | 13 | |
Estimated Fair Value | 14,550 | |
Collateralized mortgage obligations | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 64,611 | 89,798 |
Gross Unrealized Gain | 2,335 | 1,146 |
Gross Unrealized Loss | 1 | 17 |
Estimated Fair Value | 66,945 | 90,927 |
Held to maturity: | ||
Amortized Cost | 2,677 | |
Gross Unrealized Gains | 110 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 2,787 | |
Municipal securities | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 164,668 | 16,780 |
Gross Unrealized Gain | 11,036 | 576 |
Gross Unrealized Loss | 0 | 8 |
Estimated Fair Value | $ 175,704 | 17,348 |
Held to maturity: | ||
Amortized Cost | 138,416 | |
Gross Unrealized Gains | 4,710 | |
Gross Unrealized Losses | 3 | |
Estimated Fair Value | $ 143,123 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Positionsecurity | Dec. 31, 2019USD ($)security | Dec. 31, 2018security | |
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities impairment on allowance for credit losses | $ 0 | ||
Other than temporary impairment losses on debt securities related to credit losses | $ 0 | ||
Number of investment in an unrealized loss position | Position | 7 | ||
Percentage of unrealized loss exceeds book value | 20.00% | ||
Number of securities other than agencies amount | security | 0 | ||
Fair value of securities pledged as collateral | $ 314,962,000 | $ 278,318,000 | |
Number of held-to-maturity securities sold | security | 0 | 0 | 0 |
Mortgage Backed Securities or Collateralized Mortgage Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Number of investment in an unrealized loss position | Position | 6 |
MARKETABLE SECURITIES - Securit
MARKETABLE SECURITIES - Securities in Continuous Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Gross Unrealized Losses | ||
Less Than 12 Months | $ (95) | $ (33) |
12 Months or Longer | (1) | (327) |
Total | (96) | (360) |
Estimated Fair Value | ||
Less Than 12 Months | 28,268 | 20,559 |
12 Months or Longer | 106 | 44,710 |
Total | 28,374 | 65,269 |
Gross Unrealized Losses | ||
Less Than 12 Months | (1) | |
12 Months or Longer | (15) | |
Total | (16) | |
Estimated Fair Value | ||
Less Than 12 Months | 1,313 | |
12 Months or Longer | 7,791 | |
Total | 9,104 | |
Municipal securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (8) | |
12 Months or Longer | 0 | |
Total | (8) | |
Estimated Fair Value | ||
Less Than 12 Months | 1,138 | |
12 Months or Longer | 0 | |
Total | 1,138 | |
Gross Unrealized Losses | ||
Less Than 12 Months | (1) | |
12 Months or Longer | (2) | |
Total | (3) | |
Estimated Fair Value | ||
Less Than 12 Months | 1,313 | |
12 Months or Longer | 759 | |
Total | 2,072 | |
Corporate bonds | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (8) | |
12 Months or Longer | 0 | |
Total | (8) | |
Estimated Fair Value | ||
Less Than 12 Months | 2,493 | |
12 Months or Longer | 0 | |
Total | 2,493 | |
Mortgage-backed securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (87) | (25) |
12 Months or Longer | 0 | (310) |
Total | (87) | (335) |
Estimated Fair Value | ||
Less Than 12 Months | 25,775 | 19,421 |
12 Months or Longer | 0 | 42,116 |
Total | 25,775 | 61,537 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | (13) | |
Total | (13) | |
Estimated Fair Value | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 7,032 | |
Total | 7,032 | |
Collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | (1) | (17) |
Total | (1) | (17) |
Estimated Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 106 | 2,594 |
Total | $ 106 | $ 2,594 |
MARKETABLE SECURITIES - Sched_2
MARKETABLE SECURITIES - Schedule of Proceeds from Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Sale of Marketable Securities [Abstract] | |||
Proceeds from sales | $ 0 | $ 3,957 | $ 411,796 |
Gross gains | 0 | 0 | 4 |
Gross losses | $ 0 | $ (22) | $ (54) |
MARKETABLE SECURITIES - Contrac
MARKETABLE SECURITIES - Contractual Maturities of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due within one year | $ 4,139 | |
Due after one year through five years | 52,050 | |
Due after five years through ten years | 60,132 | |
Due after ten years | 77,955 | |
Available-for-sale debt securities, amortized cost basis | 363,097 | $ 210,212 |
Estimated Fair Value | ||
Due within one year | 4,154 | |
Due after one year through five years | 54,688 | |
Due after five years through ten years | 63,966 | |
Due after ten years | 83,878 | |
Available-for-sale debt securities, estimated fair value | 380,795 | 212,716 |
Mortgage-backed securities | ||
Amortized Cost | ||
Available-for-sale debt securities, amortized cost basis | 104,210 | |
Available-for-sale debt securities, amortized cost basis | 104,210 | 83,967 |
Estimated Fair Value | ||
Available-for-sale debt securities, estimated fair value | 107,164 | |
Available-for-sale debt securities, estimated fair value | 107,164 | 84,182 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Available-for-sale debt securities, amortized cost basis | 64,611 | |
Available-for-sale debt securities, amortized cost basis | 64,611 | 89,798 |
Estimated Fair Value | ||
Available-for-sale debt securities, estimated fair value | 66,945 | |
Available-for-sale debt securities, estimated fair value | $ 66,945 | $ 90,927 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans held for investment: | ||||
Total loans | $ 1,866,819 | $ 1,706,395 | ||
Deferred loan (fees) costs, net | (1,463) | 601 | ||
Allowance for credit losses | (33,619) | (16,202) | $ (14,651) | $ (12,859) |
Total net loans | 1,831,737 | 1,690,794 | ||
Commercial and industrial | ||||
Loans held for investment: | ||||
Total loans | 445,771 | 279,583 | ||
Allowance for credit losses | (4,033) | (2,056) | (1,751) | (1,581) |
Construction and development | ||||
Loans held for investment: | ||||
Total loans | 270,407 | 280,498 | ||
Allowance for credit losses | (4,735) | (2,378) | (1,920) | (1,724) |
Commercial real estate | ||||
Loans held for investment: | ||||
Total loans | 594,216 | 567,360 | ||
Allowance for credit losses | (15,780) | (6,853) | (6,025) | (4,585) |
Farmland | ||||
Loans held for investment: | ||||
Total loans | 78,508 | 57,476 | ||
Allowance for credit losses | (1,220) | (570) | (643) | (523) |
1-4 family residential | ||||
Loans held for investment: | ||||
Total loans | 389,096 | 412,166 | ||
Allowance for credit losses | (6,313) | (3,125) | (2,868) | (3,022) |
Multi-family residential | ||||
Loans held for investment: | ||||
Total loans | 21,701 | 37,379 | ||
Allowance for credit losses | (363) | (409) | (631) | (629) |
Consumer | ||||
Loans held for investment: | ||||
Total loans | 51,044 | 53,245 | ||
Allowance for credit losses | (929) | (602) | (565) | (602) |
Agricultural | ||||
Loans held for investment: | ||||
Total loans | 15,734 | 18,359 | ||
Allowance for credit losses | (239) | (197) | (238) | (187) |
Overdrafts | ||||
Loans held for investment: | ||||
Total loans | 342 | 329 | ||
Allowance for credit losses | $ (7) | $ (12) | $ (10) | $ (6) |
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, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accrued interest receivable on loans | $ 7 | $ 6.4 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Loans to related parties | $ 52,559,000 | $ 33,663,000 |
Unfunded commitments of related party loans | 15,503,000 | |
Loans classified in doubtful or loss risk rating | 0 | 0 |
Interest income if accrual method | 821,000 | 637,000 |
Troubled debt restructurings loans modified pursuant to CARES Act and GAAP | 62,133,000 | |
Increase in allowance for loan and credit losses due to TDRs | 0 | 0 |
Troubled debt restructuring charge-offs | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Loans to Principal Officers, Directors and Affiliates (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |
Beginning balance | $ 33,663 |
New loans | 58,154 |
Effect of changes in composition of related parties | (39) |
Repayments | (39,219) |
Ending balance | $ 52,559 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Allowance for Loan Losses Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | $ 16,202 | $ 14,651 | $ 12,859 |
Impact of adopting ASC 326 | 4,548 | ||
Provision for credit losses and Loans losses | 13,200 | 1,250 | 2,250 |
Loans charged-off | (543) | (453) | (918) |
Recoveries | 212 | 754 | 460 |
Ending balance | 33,619 | 16,202 | 14,651 |
Commercial and industrial | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 2,056 | 1,751 | 1,581 |
Impact of adopting ASC 326 | 546 | ||
Provision for credit losses and Loans losses | 1,398 | (117) | 426 |
Loans charged-off | (68) | (86) | (367) |
Recoveries | 101 | 508 | 111 |
Ending balance | 4,033 | 2,056 | 1,751 |
Construction and development | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 2,378 | 1,920 | 1,724 |
Impact of adopting ASC 326 | 323 | ||
Provision for credit losses and Loans losses | 2,034 | 458 | 196 |
Ending balance | 4,735 | 2,378 | 1,920 |
Commercial real estate | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 6,853 | 6,025 | 4,585 |
Impact of adopting ASC 326 | 2,228 | ||
Provision for credit losses and Loans losses | 6,698 | 827 | 1,472 |
Loans charged-off | (33) | ||
Recoveries | 1 | 1 | 1 |
Ending balance | 15,780 | 6,853 | 6,025 |
Farmland | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 570 | 643 | 523 |
Impact of adopting ASC 326 | 26 | ||
Provision for credit losses and Loans losses | 624 | (73) | 120 |
Ending balance | 1,220 | 570 | 643 |
1-4 family residential | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 3,125 | 2,868 | 3,022 |
Impact of adopting ASC 326 | 1,339 | ||
Provision for credit losses and Loans losses | 1,915 | 268 | (196) |
Loans charged-off | (68) | (14) | (93) |
Recoveries | 2 | 3 | 135 |
Ending balance | 6,313 | 3,125 | 2,868 |
Multi-family residential | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 409 | 631 | 629 |
Impact of adopting ASC 326 | (50) | ||
Provision for credit losses and Loans losses | 4 | (222) | 2 |
Ending balance | 363 | 409 | 631 |
Consumer | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 602 | 565 | 602 |
Impact of adopting ASC 326 | 72 | ||
Provision for credit losses and Loans losses | 373 | (2) | 127 |
Loans charged-off | (155) | (72) | (254) |
Recoveries | 37 | 111 | 90 |
Ending balance | 929 | 602 | 565 |
Agricultural | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 197 | 238 | 187 |
Impact of adopting ASC 326 | 73 | ||
Provision for credit losses and Loans losses | (33) | (41) | (12) |
Loans charged-off | (18) | (89) | (2) |
Recoveries | 20 | 89 | 65 |
Ending balance | 239 | 197 | 238 |
Overdrafts | |||
Allowance for credit losses: | |||
Beginning balance, prior to adoption of ASC 326 | 12 | 10 | 6 |
Impact of adopting ASC 326 | (9) | ||
Provision for credit losses and Loans losses | 187 | 152 | 115 |
Loans charged-off | (234) | (192) | (169) |
Recoveries | 51 | 42 | 58 |
Ending balance | $ 7 | $ 12 | $ 10 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Credit Exposure in Company Loan Portfolio (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | $ 628,756 |
Credit Exposure 2019 | 286,256 |
Credit Exposure 2018 | 212,899 |
Credit Exposure 2017 | 163,831 |
Credit Exposure 2016 | 174,558 |
Credit Exposure Prior | 274,903 |
Revolving Loans Amortized Cost | 125,616 |
Total | 1,866,819 |
Credit Exposure 2020.Charge - offs | (243) |
Credit Exposure 2019.Charge - offs | (63) |
Credit Exposure 2018.Charge - offs | (92) |
Credit Exposure 2017.Charge - offs | (43) |
Credit Exposure 2016.Charge - offs | (12) |
Credit Exposure Prior. Charge - offs | (65) |
Credit Exposure Revolving Loans Amortized Cost. Charge - offs | (25) |
Total | (543) |
Credit Exposure 2020, Recoveries | 49 |
Credit Exposure 2019, Recoveries | 2 |
Credit Exposure 2018, Recoveries | 55 |
Credit Exposure 2017, Recoveries | 8 |
Credit Exposure 2016, Recoveries | 24 |
Credit Exposure Prior, Recoveries | 30 |
Credit Exposure Revolving Loans Amortized Cost, Recoveries | 44 |
Total | 212 |
Credit Exposure 2020,Current period net | (194) |
Credit Exposure 2019,Current period net | (61) |
Credit Exposure 2018,Current period net | (37) |
Credit Exposure 2017,Current period net | (35) |
Credit Exposure 2016,Current period net | 12 |
Credit Exposure Prior,Current period net | (35) |
Credit Exposure Revolving Loans Amortized Cost,Current period net | 19 |
Total | (331) |
Pass | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 628,236 |
Credit Exposure 2019 | 281,239 |
Credit Exposure 2018 | 205,907 |
Credit Exposure 2017 | 148,724 |
Credit Exposure 2016 | 157,326 |
Credit Exposure Prior | 264,245 |
Revolving Loans Amortized Cost | 125,616 |
Total | 1,811,293 |
Special Mention | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 496 |
Credit Exposure 2019 | 2,918 |
Credit Exposure 2018 | 3,773 |
Credit Exposure 2017 | 5,922 |
Credit Exposure 2016 | 7,048 |
Credit Exposure Prior | 652 |
Total | 20,809 |
Substandard | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2019 | 923 |
Credit Exposure 2018 | 2,565 |
Credit Exposure 2017 | 4,963 |
Credit Exposure 2016 | 5,192 |
Credit Exposure Prior | 8,369 |
Total | 22,012 |
Nonaccrual | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 24 |
Credit Exposure 2019 | 1,176 |
Credit Exposure 2018 | 654 |
Credit Exposure 2017 | 4,222 |
Credit Exposure 2016 | 4,992 |
Credit Exposure Prior | 1,637 |
Total | 12,705 |
Commercial and industrial | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 278,811 |
Credit Exposure 2019 | 30,989 |
Credit Exposure 2018 | 13,635 |
Credit Exposure 2017 | 8,456 |
Credit Exposure 2016 | 7,512 |
Credit Exposure Prior | 16,294 |
Revolving Loans Amortized Cost | 90,074 |
Total | 445,771 |
Credit Exposure 2018.Charge - offs | (43) |
Credit Exposure Revolving Loans Amortized Cost. Charge - offs | (25) |
Total | (68) |
Credit Exposure 2018, Recoveries | 43 |
Credit Exposure Prior, Recoveries | 14 |
Credit Exposure Revolving Loans Amortized Cost, Recoveries | 44 |
Total | 101 |
Credit Exposure Prior,Current period net | 14 |
Credit Exposure Revolving Loans Amortized Cost,Current period net | 19 |
Total | 33 |
Commercial and industrial | Pass | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 278,687 |
Credit Exposure 2019 | 30,563 |
Credit Exposure 2018 | 12,860 |
Credit Exposure 2017 | 4,366 |
Credit Exposure 2016 | 6,131 |
Credit Exposure Prior | 16,294 |
Revolving Loans Amortized Cost | 90,074 |
Total | 438,975 |
Commercial and industrial | Special Mention | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 124 |
Credit Exposure 2019 | 119 |
Credit Exposure 2018 | 222 |
Credit Exposure 2017 | 4,040 |
Credit Exposure 2016 | 1,324 |
Total | 5,829 |
Commercial and industrial | Substandard | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2019 | 307 |
Credit Exposure 2018 | 540 |
Credit Exposure 2017 | 50 |
Credit Exposure 2016 | 43 |
Total | 940 |
Commercial and industrial | Nonaccrual | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2018 | 13 |
Credit Exposure 2016 | 14 |
Total | 27 |
Construction and development | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 118,946 |
Credit Exposure 2019 | 77,535 |
Credit Exposure 2018 | 26,217 |
Credit Exposure 2017 | 25,514 |
Credit Exposure 2016 | 8,422 |
Credit Exposure Prior | 10,507 |
Revolving Loans Amortized Cost | 3,266 |
Total | 270,407 |
Construction and development | Pass | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 118,590 |
Credit Exposure 2019 | 76,926 |
Credit Exposure 2018 | 26,212 |
Credit Exposure 2017 | 24,524 |
Credit Exposure 2016 | 7,742 |
Credit Exposure Prior | 10,507 |
Revolving Loans Amortized Cost | 3,266 |
Total | 267,767 |
Construction and development | Special Mention | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 356 |
Credit Exposure 2017 | 990 |
Total | 1,346 |
Construction and development | Substandard | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2019 | 609 |
Credit Exposure 2018 | 5 |
Credit Exposure 2016 | 680 |
Total | 1,294 |
Commercial real estate | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 91,819 |
Credit Exposure 2019 | 84,609 |
Credit Exposure 2018 | 95,245 |
Credit Exposure 2017 | 82,231 |
Credit Exposure 2016 | 101,884 |
Credit Exposure Prior | 132,538 |
Revolving Loans Amortized Cost | 5,890 |
Total | 594,216 |
Credit Exposure Prior, Recoveries | 1 |
Total | 1 |
Credit Exposure Prior,Current period net | 1 |
Total | 1 |
Commercial real estate | Pass | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 91,819 |
Credit Exposure 2019 | 80,753 |
Credit Exposure 2018 | 89,542 |
Credit Exposure 2017 | 72,311 |
Credit Exposure 2016 | 86,946 |
Credit Exposure Prior | 123,463 |
Revolving Loans Amortized Cost | 5,890 |
Total | 550,724 |
Commercial real estate | Special Mention | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2019 | 2,716 |
Credit Exposure 2018 | 3,542 |
Credit Exposure 2017 | 849 |
Credit Exposure 2016 | 5,724 |
Credit Exposure Prior | 449 |
Total | 13,280 |
Commercial real estate | Substandard | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2018 | 2,010 |
Credit Exposure 2017 | 4,913 |
Credit Exposure 2016 | 4,445 |
Credit Exposure Prior | 8,240 |
Total | 19,608 |
Commercial real estate | Nonaccrual | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2019 | 1,140 |
Credit Exposure 2018 | 151 |
Credit Exposure 2017 | 4,158 |
Credit Exposure 2016 | 4,769 |
Credit Exposure Prior | 386 |
Total | 10,604 |
Farmland | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 17,444 |
Credit Exposure 2019 | 12,668 |
Credit Exposure 2018 | 10,327 |
Credit Exposure 2017 | 6,620 |
Credit Exposure 2016 | 9,904 |
Credit Exposure Prior | 15,681 |
Revolving Loans Amortized Cost | 5,864 |
Total | 78,508 |
Farmland | Pass | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 17,444 |
Credit Exposure 2019 | 12,668 |
Credit Exposure 2018 | 10,327 |
Credit Exposure 2017 | 6,620 |
Credit Exposure 2016 | 9,904 |
Credit Exposure Prior | 15,402 |
Revolving Loans Amortized Cost | 5,864 |
Total | 78,229 |
Farmland | Special Mention | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure Prior | 35 |
Total | 35 |
Farmland | Substandard | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure Prior | 129 |
Total | 129 |
Farmland | Nonaccrual | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure Prior | 115 |
Total | 115 |
1-4 family residential | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 87,578 |
Credit Exposure 2019 | 62,937 |
Credit Exposure 2018 | 52,413 |
Credit Exposure 2017 | 37,268 |
Credit Exposure 2016 | 44,021 |
Credit Exposure Prior | 94,788 |
Revolving Loans Amortized Cost | 10,091 |
Total | 389,096 |
Credit Exposure 2016.Charge - offs | (9) |
Credit Exposure Prior. Charge - offs | (59) |
Total | (68) |
Credit Exposure Prior, Recoveries | 2 |
Total | 2 |
Credit Exposure 2016,Current period net | (9) |
Credit Exposure Prior,Current period net | (57) |
Total | (66) |
1-4 family residential | Pass | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 87,578 |
Credit Exposure 2019 | 62,937 |
Credit Exposure 2018 | 52,087 |
Credit Exposure 2017 | 37,224 |
Credit Exposure 2016 | 43,858 |
Credit Exposure Prior | 93,486 |
Revolving Loans Amortized Cost | 10,091 |
Total | 387,261 |
1-4 family residential | Special Mention | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure Prior | 168 |
Total | 168 |
1-4 family residential | Nonaccrual | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2018 | 326 |
Credit Exposure 2017 | 44 |
Credit Exposure 2016 | 163 |
Credit Exposure Prior | 1,134 |
Total | 1,667 |
Multi-family residential | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 5,889 |
Credit Exposure 2019 | 4,498 |
Credit Exposure 2018 | 3,617 |
Credit Exposure 2017 | 1,371 |
Credit Exposure 2016 | 1,737 |
Credit Exposure Prior | 4,391 |
Revolving Loans Amortized Cost | 198 |
Total | 21,701 |
Multi-family residential | Pass | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 5,889 |
Credit Exposure 2019 | 4,498 |
Credit Exposure 2018 | 3,617 |
Credit Exposure 2017 | 1,371 |
Credit Exposure 2016 | 1,737 |
Credit Exposure Prior | 4,391 |
Revolving Loans Amortized Cost | 198 |
Total | 21,701 |
Consumer and Overdrafts | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 24,780 |
Credit Exposure 2019 | 11,295 |
Credit Exposure 2018 | 9,509 |
Credit Exposure 2017 | 1,728 |
Credit Exposure 2016 | 736 |
Credit Exposure Prior | 513 |
Revolving Loans Amortized Cost | 2,825 |
Total | 51,386 |
Credit Exposure 2020.Charge - offs | (243) |
Credit Exposure 2019.Charge - offs | (63) |
Credit Exposure 2018.Charge - offs | (31) |
Credit Exposure 2017.Charge - offs | (43) |
Credit Exposure 2016.Charge - offs | (3) |
Credit Exposure Prior. Charge - offs | (6) |
Total | (389) |
Credit Exposure 2020, Recoveries | 49 |
Credit Exposure 2019, Recoveries | 2 |
Credit Exposure 2018, Recoveries | 12 |
Credit Exposure 2017, Recoveries | 8 |
Credit Exposure 2016, Recoveries | 4 |
Credit Exposure Prior, Recoveries | 13 |
Total | 88 |
Credit Exposure 2020,Current period net | (194) |
Credit Exposure 2019,Current period net | (61) |
Credit Exposure 2018,Current period net | (19) |
Credit Exposure 2017,Current period net | (35) |
Credit Exposure 2016,Current period net | 1 |
Credit Exposure Prior,Current period net | 7 |
Total | (301) |
Consumer and Overdrafts | Pass | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 24,740 |
Credit Exposure 2019 | 11,176 |
Credit Exposure 2018 | 9,369 |
Credit Exposure 2017 | 1,701 |
Credit Exposure 2016 | 735 |
Credit Exposure Prior | 513 |
Revolving Loans Amortized Cost | 2,825 |
Total | 51,059 |
Consumer and Overdrafts | Special Mention | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 16 |
Credit Exposure 2019 | 83 |
Credit Exposure 2018 | 9 |
Credit Exposure 2017 | 7 |
Total | 115 |
Consumer and Overdrafts | Nonaccrual | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 24 |
Credit Exposure 2019 | 36 |
Credit Exposure 2018 | 131 |
Credit Exposure 2017 | 20 |
Credit Exposure 2016 | 1 |
Total | 212 |
Agricultural | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 3,489 |
Credit Exposure 2019 | 1,725 |
Credit Exposure 2018 | 1,936 |
Credit Exposure 2017 | 643 |
Credit Exposure 2016 | 342 |
Credit Exposure Prior | 191 |
Revolving Loans Amortized Cost | 7,408 |
Total | 15,734 |
Credit Exposure 2018.Charge - offs | (18) |
Total | (18) |
Credit Exposure 2016, Recoveries | 20 |
Total | 20 |
Credit Exposure 2018,Current period net | (18) |
Credit Exposure 2016,Current period net | 20 |
Total | 2 |
Agricultural | Pass | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2020 | 3,489 |
Credit Exposure 2019 | 1,718 |
Credit Exposure 2018 | 1,893 |
Credit Exposure 2017 | 607 |
Credit Exposure 2016 | 273 |
Credit Exposure Prior | 189 |
Revolving Loans Amortized Cost | 7,408 |
Total | 15,577 |
Agricultural | Special Mention | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2017 | 36 |
Total | 36 |
Agricultural | Substandard | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2019 | 7 |
Credit Exposure 2018 | 10 |
Credit Exposure 2016 | 24 |
Total | 41 |
Agricultural | Nonaccrual | |
Financing Receivable Recorded Investment [Line Items] | |
Credit Exposure 2018 | 33 |
Credit Exposure 2016 | 45 |
Credit Exposure Prior | 2 |
Total | $ 80 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Credit Exposure (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 1,866,819 | $ 1,706,395 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,682,413 | |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,658 | |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 20,324 | |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 445,771 | 279,583 |
Commercial and industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 279,217 | |
Commercial and industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 153 | |
Commercial and industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 213 | |
Construction and development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 270,407 | 280,498 |
Construction and development | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 278,679 | |
Construction and development | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 600 | |
Construction and development | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,219 | |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 594,216 | 567,360 |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 548,662 | |
Commercial real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,071 | |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 17,627 | |
Farmland | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 78,508 | 57,476 |
Farmland | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 57,152 | |
Farmland | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 91 | |
Farmland | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 233 | |
1-4 family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 389,096 | 412,166 |
1-4 family residential | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 409,896 | |
1-4 family residential | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,425 | |
1-4 family residential | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 845 | |
Multi-family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 21,701 | 37,379 |
Multi-family residential | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 37,379 | |
Consumer and Overdrafts | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 53,574 | |
Consumer and Overdrafts | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 53,327 | |
Consumer and Overdrafts | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 192 | |
Consumer and Overdrafts | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 55 | |
Agricultural | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 15,734 | 18,359 |
Agricultural | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 18,101 | |
Agricultural | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 126 | |
Agricultural | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 132 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Amortized Cost Basis of Collateral-dependent Loans (Details) - Collateral Dependent Loans $ in Thousands | Dec. 31, 2020USD ($) |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | $ 10,727 |
Allowance for Credit Losses Allocation | 2,300 |
Real Estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 10,727 |
Commercial and industrial | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 129 |
Allowance for Credit Losses Allocation | 44 |
Commercial and industrial | Real Estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 129 |
Construction and development | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 609 |
Allowance for Credit Losses Allocation | 208 |
Construction and development | Real Estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 609 |
Commercial real estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | 9,989 |
Allowance for Credit Losses Allocation | 2,048 |
Commercial real estate | Real Estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Amortized cost | $ 9,989 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Payment Status of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | $ 15,532 | $ 8,296 |
Current | 1,851,287 | 1,698,099 |
Total Loans | 1,866,819 | 1,706,395 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 4,382 | 4,704 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 754 | 1,754 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 10,396 | 1,838 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 432 | 389 |
Current | 445,339 | 279,194 |
Total Loans | 445,771 | 279,583 |
Commercial and industrial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 385 | 321 |
Commercial and industrial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 25 | 53 |
Commercial and industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 22 | 15 |
Construction and development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 256 | 161 |
Current | 270,151 | 280,337 |
Total Loans | 270,407 | 280,498 |
Construction and development | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 256 | 161 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 11,199 | 2,112 |
Current | 583,017 | 565,248 |
Total Loans | 594,216 | 567,360 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 1,094 | 1,181 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 49 | |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 10,105 | 882 |
Farmland | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 120 | 103 |
Current | 78,388 | 57,373 |
Total Loans | 78,508 | 57,476 |
Farmland | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 117 | 103 |
Farmland | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 3 | |
1-4 family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 2,780 | 4,792 |
Current | 386,316 | 407,374 |
Total Loans | 389,096 | 412,166 |
1-4 family residential | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 2,097 | 2,514 |
1-4 family residential | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 556 | 1,433 |
1-4 family residential | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 127 | 845 |
Multi-family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 21,701 | 37,379 |
Total Loans | 21,701 | 37,379 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 604 | 621 |
Current | 50,440 | 52,624 |
Total Loans | 51,044 | 53,245 |
Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 383 | 373 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 124 | 152 |
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 97 | 96 |
Agricultural | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 141 | 118 |
Current | 15,593 | 18,241 |
Total Loans | 15,734 | 18,359 |
Agricultural | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 50 | 51 |
Agricultural | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 46 | 67 |
Agricultural | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due loans | 45 | |
Overdrafts | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 342 | 329 |
Total Loans | $ 342 | $ 329 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 12,705 | $ 11,262 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 27 | 46 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 10,604 | 6,860 |
Farmland | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 115 | 182 |
1-4 family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 1,667 | 3,853 |
Consumer and Overdrafts | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 212 | 279 |
Agricultural | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 80 | $ 42 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Total | $ 9,716 | $ 7,341 |
Specific reserves on TDRs | $ 0 | $ 164 |
Troubled Debt Restructurings: | ||
Number of Contracts | contract | 4 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 2,435 | $ 1,680 |
Post-Modification Outstanding Recorded Investment | $ 1,836 | $ 1,515 |
Construction and development | ||
Troubled Debt Restructurings: | ||
Number of Contracts | contract | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 1,289 | |
Post-Modification Outstanding Recorded Investment | $ 1,081 | |
Commercial real estate | ||
Troubled Debt Restructurings: | ||
Number of Contracts | contract | 1 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 1,017 | $ 1,680 |
Post-Modification Outstanding Recorded Investment | $ 670 | 1,515 |
Commercial and industrial | ||
Troubled Debt Restructurings: | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 129 | |
Post-Modification Outstanding Recorded Investment | 85 | |
Nonaccrual TDRs | ||
Financing Receivable, Modifications [Line Items] | ||
Total | 90 | 101 |
Performing TDRs | ||
Financing Receivable, Modifications [Line Items] | ||
Total | $ 9,626 | $ 7,240 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Impaired Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Unpaid Principal Balance [Abstract] | |
Unpaid Principal Balance, With no related allowance recorded | $ 8,673 |
Unpaid Principal Balance, With related allowance recorded | 13,004 |
Unpaid Principal Balance | 21,677 |
Recorded Investment [Abstract] | |
Recorded Investment, With no related allowance recorded | 8,673 |
Recorded Investment, With related allowance recorded | 13,004 |
Recorded Investment, With related allowance recorded | 21,677 |
Related Allowance [Abstract] | |
Related Allowance | 1,649 |
Average Recorded Investment [Abstract] | |
Average Recorded Investment, With no related allowance recorded | 7,803 |
Average Recorded Investment, With related allowance recorded | 9,385 |
Average Recorded Investment, With related allowance recorded | 17,188 |
Commercial and industrial | |
Unpaid Principal Balance [Abstract] | |
Unpaid Principal Balance, With no related allowance recorded | 289 |
Recorded Investment [Abstract] | |
Recorded Investment, With no related allowance recorded | 289 |
Average Recorded Investment [Abstract] | |
Average Recorded Investment, With no related allowance recorded | 312 |
Average Recorded Investment, With related allowance recorded | 61 |
Construction and development | |
Unpaid Principal Balance [Abstract] | |
Unpaid Principal Balance, With no related allowance recorded | 1,212 |
Recorded Investment [Abstract] | |
Recorded Investment, With no related allowance recorded | 1,212 |
Average Recorded Investment [Abstract] | |
Average Recorded Investment, With no related allowance recorded | 1,259 |
Commercial real estate | |
Unpaid Principal Balance [Abstract] | |
Unpaid Principal Balance, With no related allowance recorded | 4,612 |
Unpaid Principal Balance, With related allowance recorded | 12,871 |
Recorded Investment [Abstract] | |
Recorded Investment, With no related allowance recorded | 4,612 |
Recorded Investment, With related allowance recorded | 12,871 |
Related Allowance [Abstract] | |
Related Allowance | 1,587 |
Average Recorded Investment [Abstract] | |
Average Recorded Investment, With no related allowance recorded | 4,244 |
Average Recorded Investment, With related allowance recorded | 9,111 |
Farmland | |
Unpaid Principal Balance [Abstract] | |
Unpaid Principal Balance, With related allowance recorded | 133 |
Recorded Investment [Abstract] | |
Recorded Investment, With related allowance recorded | 133 |
Related Allowance [Abstract] | |
Related Allowance | 62 |
Average Recorded Investment [Abstract] | |
Average Recorded Investment, With related allowance recorded | 135 |
1-4 family residential | |
Unpaid Principal Balance [Abstract] | |
Unpaid Principal Balance, With no related allowance recorded | 2,498 |
Recorded Investment [Abstract] | |
Recorded Investment, With no related allowance recorded | 2,498 |
Average Recorded Investment [Abstract] | |
Average Recorded Investment, With no related allowance recorded | 1,798 |
Average Recorded Investment, With related allowance recorded | 78 |
Agricultural | |
Unpaid Principal Balance [Abstract] | |
Unpaid Principal Balance, With no related allowance recorded | 62 |
Recorded Investment [Abstract] | |
Recorded Investment, With no related allowance recorded | 62 |
Average Recorded Investment [Abstract] | |
Average Recorded Investment, With no related allowance recorded | $ 190 |
PREMISES AND EQUIPMENT - Schedu
PREMISES AND EQUIPMENT - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 89,554 | $ 84,208 |
Less: accumulated depreciation | 34,342 | 30,777 |
Premises and equipment, net | 55,212 | 53,431 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 10,944 | 10,944 |
Building and improvements | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 58,569 | 54,809 |
Furniture, fixtures and equipment | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 19,641 | 17,960 |
Automobiles | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 400 | $ 495 |
PREMISES AND EQUIPMENT - Narrat
PREMISES AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 4,117 | $ 3,886 | $ 3,400 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning of year | $ 32,160 | $ 32,160 |
Effect of acquisitions | 0 | 0 |
End of year | $ 32,160 | $ 32,160 |
CORE DEPOSIT INTANGIBLES - Sche
CORE DEPOSIT INTANGIBLES - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning of year | $ 3,853 | $ 4,706 | |
Amortization | (854) | (853) | $ (718) |
End of year | $ 2,999 | $ 3,853 | $ 4,706 |
CORE DEPOSIT INTANGIBLES - Narr
CORE DEPOSIT INTANGIBLES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Accumulated amortization | $ 5,532 | $ 4,678 | |
Amortization | $ 854 | $ 853 | $ 718 |
CORE DEPOSIT INTANGIBLES - Sc_2
CORE DEPOSIT INTANGIBLES - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2021 | $ 687 | ||
2022 | 453 | ||
2023 | 441 | ||
2024 | 424 | ||
2025 | 316 | ||
Thereafter | 678 | ||
Total | $ 2,999 | $ 3,853 | $ 4,706 |
INTEREST -BEARING DEPOSITS - Sc
INTEREST -BEARING DEPOSITS - Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Interest Bearing Deposits [Abstract] | ||
NOW accounts | $ 259,357 | $ 202,672 |
Savings and money market accounts | 868,643 | 712,972 |
Time deposits $250,000 or less | 245,796 | 300,608 |
Time deposits greater than $250,000 | 132,854 | 214,687 |
Interest-bearing deposits | $ 1,506,650 | $ 1,430,939 |
INTEREST -BEARING DEPOSITS - _2
INTEREST -BEARING DEPOSITS - Schedule of Time Deposit Maturities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Maturities of Time Deposits [Abstract] | |
2021 | $ 306,760 |
2022 | 50,257 |
2023 | 13,755 |
2024 | 5,162 |
2025 | 2,716 |
Thereafter | 0 |
Time Deposits | $ 378,650 |
INTEREST -BEARING DEPOSITS - Na
INTEREST -BEARING DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Interest-bearing | $ 1,506,650 | $ 1,430,939 |
Executive Officers, Directors and Significant Shareholders | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Interest-bearing | $ 46,192 | $ 59,658 |
BORROWED MONEY - Summary of Fix
BORROWED MONEY - Summary of Fixed-Rate Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Federal Home Loan Bank advances | $ 109,101 | $ 55,118 |
Fixed-rate Advances, With Monthly Interest Payments | ||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
2021 (percent) | 0.15% | |
2022 (percent) | 1.99% | |
2023 (percent) | 0.00% | |
2024 (percent) | 1.76% | |
2025 (percent) | 0.00% | |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2021 | $ 101,500 | |
2022 | 1,500 | |
2024 | 6,000 | |
Federal Home Loan Bank advances | $ 109,000 | |
Fixed-rate Advances, With Monthly Principal and Interest Payments | ||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
2021 (percent) | 1.38% | |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2021 | $ 101 | |
Total | $ 101 |
BORROWED MONEY - Narrative (Det
BORROWED MONEY - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit | $ 12,000,000 |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Line of credit facility, current borrowing capacity | $ 25,000,000 |
Line of credit facility, frequency of periodic payment | quarterly |
Line of credit facility, maturity month and year | 2021-03 |
Line of credit | $ 12,000,000 |
Secured Debt | |
Line of Credit Facility [Line Items] | |
Covenant description, risk-based capital ratio, minimum | 10.00% |
Covenant description, tangible net worth | $ 85,000,000 |
Covenant description, non-performing assets to equity, maximum | 15.00% |
Covenant description, cash flow coverage, minimum | 1.25 |
Covenant description, other additional debt to total assets maximum | 15.00% |
Restrictive covenants, additional debt maximum | $ 500,000 |
Prime Rate | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Spread on variable rate | 3.25% |
Floor | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Spread on variable rate | 3.50% |
SUBORDINATED DEBENTURES - Sched
SUBORDINATED DEBENTURES - Schedule of Subordinated Debentures (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Subordinated debentures | $ 19,810 | $ 10,810 |
Trust II Debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | 3,093 | 3,093 |
Trust III Debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | 2,062 | 2,062 |
DCB Trust I Debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | 5,155 | 5,155 |
Other debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | $ 9,500 | $ 500 |
SUBORDINATED DEBENTURES - Narra
SUBORDINATED DEBENTURES - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
May 31, 2020 | Dec. 31, 2019 | Jul. 31, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | May 31, 2017 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2015 | Jul. 31, 2015 | |
Debt Instrument [Line Items] | |||||||||||
Liquidation value per share | $ 1,000,000 | ||||||||||
Debentures mature date | 30 years | ||||||||||
Subordinated debentures | Trust II Debentures | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debenture issued | $ 3,093,000 | ||||||||||
Subordinated debentures | Trust II Debentures | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notice period required for redemption of debentures | 30 days | ||||||||||
Subordinated debentures | Trust II Debentures | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notice period required for redemption of debentures | 60 days | ||||||||||
Redemption price of debentures as a percentage of principal | 100.00% | ||||||||||
Subordinated debentures | Trust II Debentures | 3 Month LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Spread on variable rate | 3.35% | ||||||||||
Subordinated debentures | Trust III Debentures | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debenture issued | $ 2,062,000 | ||||||||||
Subordinated debentures | Trust III Debentures | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notice period required for redemption of debentures | 30 days | ||||||||||
Subordinated debentures | Trust III Debentures | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notice period required for redemption of debentures | 60 days | ||||||||||
Redemption price of debentures as a percentage of principal | 100.00% | ||||||||||
Subordinated debentures | Trust III Debentures | 3 Month LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Spread on variable rate | 1.67% | ||||||||||
Subordinated debentures | DCB Trust I Debentures | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debenture issued | $ 5,155,000 | ||||||||||
Subordinated debentures | DCB Trust I Debentures | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notice period required for redemption of debentures | 30 days | ||||||||||
Subordinated debentures | DCB Trust I Debentures | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notice period required for redemption of debentures | 60 days | ||||||||||
Redemption price of debentures as a percentage of principal | 100.00% | ||||||||||
Subordinated debentures | DCB Trust I Debentures | 3 Month LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Spread on variable rate | 1.80% | ||||||||||
Subordinated debentures | Other Debentures Issued in July 2015 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debenture issued | $ 4,000,000 | ||||||||||
Debentures that matured and were paid off | $ 500,000 | $ 1,000,000 | $ 1,000,000 | $ 500,000 | |||||||
Repayments of related party debt | $ 3,000,000 | ||||||||||
Subordinated debentures | Other Debentures Issued in July 2015 | Directors and Related Parties | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debenture issued | $ 3,000,000 | ||||||||||
Subordinated debentures | Other Subordinated Debentures Issued in July 2015, 2.50%, Maturing July 1, 2017 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 2.50% | ||||||||||
Debentures that matured and were paid off | $ 500,000 | ||||||||||
Subordinated debentures | Other Subordinated Debentures Issued in July 2015, 4.00%, Maturing January 1, 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 4.00% | ||||||||||
Debentures that matured and were paid off | $ 500,000 | ||||||||||
Subordinated debentures | Other Subordinated Debentures Issued In December2015 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notice period required for redemption of debentures | 30 days | ||||||||||
Redemption price of debentures as a percentage of principal | 100.00% | ||||||||||
Debenture issued | $ 5,000,000 | ||||||||||
Repayments of related party debt | $ 2,000,000 | ||||||||||
Debenture issued, par value per instrument issued | $ 500,000 | ||||||||||
Debt instrument maturity end date | Nov. 1, 2020 | ||||||||||
Debt instrument maturity end date | Nov. 1, 2024 | ||||||||||
Subordinated debentures | Other Subordinated Debentures Issued In December2015 | Directors and Related Parties | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debenture issued | $ 10,000,000 | $ 2,500,000 | |||||||||
Subordinated debentures | Other Subordinated Debentures Issued In December2015 | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 1.00% | ||||||||||
Subordinated debentures | Other Subordinated Debentures Issued In December2015 | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 4.00% |
SUBORDINATED DEBENTURES - Sch_2
SUBORDINATED DEBENTURES - Schedule of Trusts (Details) $ in Thousands | Dec. 31, 2020USD ($)shares |
Trust II | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Common securities liquidation value | $ 93 |
Trust III | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Common securities liquidation value | 62 |
DCB Trust I | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Common securities liquidation value | $ 155 |
Capital trust pass-through securities | Trust II | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Number of shares (in shares) | shares | 3,000 |
Original liquidation value | $ 3,000 |
Capital trust pass-through securities | Trust III | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Number of shares (in shares) | shares | 2,000 |
Original liquidation value | $ 2,000 |
Capital trust pass-through securities | DCB Trust I | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Number of shares (in shares) | shares | 5,000 |
Original liquidation value | $ 5,000 |
SUBORDINATED DEBENTURES - Sch_3
SUBORDINATED DEBENTURES - Schedule of Terms of Subordinated Debentures (Details) - Subordinated debentures $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Trust II Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 3,093 |
Maturity date | Oct. 30, 2032 |
Interest due | Quarterly |
Trust III Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 2,062 |
Maturity date | Oct. 1, 2036 |
Interest due | Quarterly |
DCB Trust I Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 5,155 |
Maturity date | Jun. 15, 2037 |
Interest due | Quarterly |
SUBORDINATED DEBENTURES - Sch_4
SUBORDINATED DEBENTURES - Schedule of Principal Payments and Weighted Average Rates of Other Debentures (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Current Weighted Average Rate, 2022 | 2.45% |
Current Weighted Average Rate, 2023 | 2.85% |
Current Weighted Average Rate, 2024 | 3.74% |
Principal Due, 2022 | $ 2,000 |
Principal Due, 2023 | 3,500 |
Principal Due, 2024 | 4,000 |
Principal payments | $ 9,500 |
EQUITY AWARDS - Narrative (Deta
EQUITY AWARDS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | Minimum [Member] | Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Option and Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost, nonvested options and restricted stock | $ 1,980 | ||
Unrecognized compensation cost, nonvested options and restricted stock, period for recognition | 3 years 4 months 2 days | ||
2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares permitted for grant (in shares) | 1,000,000 | ||
Grace period for vested options, forfeitures in period | 90 days | ||
2015 Equity Incentive Plan | Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term | 10 years | ||
2015 Equity Incentive Plan | Option | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
2015 Equity Incentive Plan | Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 10 years | ||
2015 Equity Incentive Plan | Option and Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 749 | $ 663 | $ 592 |
EQUITY AWARDS - Valuation Assum
EQUITY AWARDS - Valuation Assumptions (Details) - Option | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.79% | 2.11% | 2.87% |
Expected term (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected stock price volatility | 22.26% | 19.89% | 20.10% |
Dividend yield | 2.56% | 2.36% | 1.76% |
EQUITY AWARDS - Schedule of Opt
EQUITY AWARDS - Schedule of Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 508,000 | 537,872 | |
Granted (in shares) | 74,000 | 39,000 | |
Exercised (in shares) | (26,600) | (37,672) | |
Forfeited (in shares) | (49,200) | (31,200) | |
Balance (in shares) | 506,200 | 508,000 | 537,872 |
Exercisable | |||
Outstanding (in shares) | 291,520 | 256,880 | |
Weighted-average exercise price (in USD per share) | $ 25.63 | $ 25.21 | |
Weighted-average remaining contractual life in years | 4 years 8 months 26 days | 5 years 2 months 4 days | |
Aggregate intrinsic value | $ 1,339 | $ 1,971 | |
Weighted-Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 26.68 | $ 26.49 | |
Granted (in USD per share) | 28.67 | 29.89 | |
Exercised (in USD per share) | 24 | 24.55 | |
Forfeited (in USD per share) | 29.71 | 30.04 | |
Balance (in USD per share) | $ 26.81 | $ 26.68 | $ 26.49 |
Weighted-Average Remaining Contractual Life in Years | |||
Outstanding | 5 years 9 months 25 days | 6 years 2 months 26 days | 6 years 11 months 19 days |
Granted | 9 years 6 months 25 days | 9 years 4 months 24 days | |
Exercised | 1 year 9 months 14 days | 4 years 1 month 9 days | |
Forfeited | 7 years 6 months 29 days | 8 years 7 days | |
Aggregate Intrinsic Value | |||
Outstanding | $ 3,159 | $ 2,088 | |
Granted | 145 | 117 | |
Exercised | 158 | 314 | $ 102 |
Forfeited | 84 | 89 | |
Outstanding | $ 1,805 | $ 3,159 | $ 2,088 |
EQUITY AWARDS - Schedule of Non
EQUITY AWARDS - Schedule of Nonvested Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 251,120 | 331,560 | |
Granted (in shares) | 74,000 | 39,000 | |
Vested (in shares) | (71,040) | (91,040) | |
Forfeited (in shares) | (39,400) | (28,400) | |
Balance (in shares) | 214,680 | 251,120 | 331,560 |
Weighted-Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 28.18 | $ 27.74 | |
Granted (in USD per share) | 28.67 | 29.89 | |
Vested (in USD per share) | 27.26 | 26.71 | |
Forfeited (in USD per share) | 29.71 | 33 | |
Balance (in USD per share) | $ 28.42 | $ 28.18 | $ 27.74 |
Weighted-Average Remaining Contractual Life in Years | |||
Outstanding | 7 years 3 months 10 days | 7 years 3 months 21 days | 7 years 9 months 7 days |
Granted | 9 years 6 months 25 days | 9 years 4 months 24 days | |
Vested | 6 years | 6 years 7 days | |
Forfeited | 7 years 6 months 29 days | 8 years 9 months 21 days | |
Aggregate Intrinsic Value | |||
Outstanding | $ 1,188 | $ 975 | |
Granted | 145 | 117 | |
Vested | 230 | 563 | |
Forfeited | 84 | 89 | |
Outstanding | $ 466 | $ 1,188 | $ 975 |
EQUITY AWARDS - Information Rel
EQUITY AWARDS - Information Related to Stock Options Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Intrinsic value of options exercised | $ 158 | $ 314 | $ 102 |
Cash received from options exercised | $ 638 | $ 925 | $ 327 |
Weighted average fair value of options granted (in USD per share) | $ 4.46 | $ 4.97 | $ 6.69 |
EQUITY AWARDS - Summary of Rest
EQUITY AWARDS - Summary of Restricted Stock Activity (Details) - Restricted Stock Awards [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Outstanding at beginning of year (in shares) | 31,459 | 2,398 |
Granted (in shares) | 19,500 | 30,500 |
Vested (in shares) | (15,179) | (1,439) |
Forfeited (in shares) | (480) | 0 |
Balance (in shares) | 35,300 | 31,459 |
Outstanding at beginning of year | $ 30.29 | $ 31.57 |
Granted | 29.32 | 30.25 |
Vested | 30.33 | 31.57 |
Forfeited | 31.57 | 0 |
Balance | $ 29.72 | $ 30.29 |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee stock ownership plan, maximum employer contribution as a percentage of participant's qualified compensation | 5.00% | ||
Employee stock ownership plan, total contributions accrued or paid | $ 1,330 | $ 1,270 | $ 965 |
Employee stock ownership plan, shares held under plan (in shares) | 1,225,828 | 1,224,697 | |
Employee stock ownership plan, unallocated shares (in shares) | 0 | 0 | |
Cash surrender value of life insurance | $ 35,510 | $ 34,495 | |
Bonus expense | 3,164 | 3,265 | 2,943 |
Executive Incentive Retirement Plan | Postretirement Life Insurance | Nonqualified Plan | Unfunded Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of life insurance | 35,510 | 34,495 | |
Plan cost | 592 | 602 | $ 502 |
Plan obligation | $ 4,383 | $ 4,081 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating leases, option to extend | 7 years | |
Operating lease right-of-use assets | $ 13,291 | $ 11,554 |
Operating lease liabilities | $ 13,539 | $ 11,675 |
Operating lease liability, Statement of financial position [Extensible List] | us-gaap:OtherLiabilitiesMember | us-gaap:OtherLiabilitiesMember |
Occupancy Expenses | ||
Operating leases, rental expense | $ 1,954 | $ 1,881 |
Minimum [Member] | ||
Operating leases, remaining lease term | 1 year | |
Maximum | ||
Operating leases, remaining lease term | 14 years |
LEASES - Schedule of Summarizes
LEASES - Schedule of Summarizes Other Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating leases | ||
Operating lease right-of-use assets | $ 13,291 | $ 11,554 |
Operating lease liabilities | $ 13,539 | $ 11,675 |
Weighted average remaining lease term | ||
Operating leases | 9 years | 10 years |
Weighted average discount rate | ||
Operating leases | 2.19% | 2.69% |
LEASES - Schedule of Minimum Fu
LEASES - Schedule of Minimum Future Lease Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 1,956 | |
2022 | 1,779 | |
2023 | 1,747 | |
2024 | 1,750 | |
2025 | 1,627 | |
Thereafter | 6,091 | |
Total lease payments | 14,950 | |
Less: interest | (1,411) | |
Present value of lease liabilities | $ 13,539 | $ 11,675 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current federal tax expense | $ 10,542 | $ 6,097 | $ 5,288 |
Deferred federal tax (benefit) expense | (4,647) | (319) | (683) |
Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate | 0 | 0 | (6) |
Total | $ 5,895 | $ 5,778 | $ 4,599 |
INCOME TAXES - Income Tax Rate
INCOME TAXES - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax at 21% | $ 6,992 | $ 6,732 | $ 5,291 |
Tax exempt interest income | (1,065) | (1,027) | (968) |
Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate | 0 | 0 | (6) |
Earnings of bank owned life insurance | (182) | (192) | (113) |
Nondeductible expenses | 356 | 462 | 566 |
Other | (206) | (197) | (171) |
Total | $ 5,895 | $ 5,778 | $ 4,599 |
INCOME TAXES - Income Tax Rat_2
INCOME TAXES - Income Tax Rate Reconciliation (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 21.00% | 21.00% | 21.00% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate | $ 0 | $ 0 | $ (6) | |
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | |
Deferred tax assets effect of transition to CECL | $ 955 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for credit losses | $ 7,060 | $ 3,402 |
Deferred compensation | 920 | 857 |
Bonus accrual | 422 | 399 |
Deferred loan fees, net | 259 | 0 |
Accretion of acquisition allowance | 112 | 183 |
Other real estate owned | 2 | 134 |
Other | 437 | 420 |
Total deferred tax assets | 9,212 | 5,395 |
Deferred tax liabilities: | ||
Unrealized gain on available for sale securities | (3,717) | (526) |
Premises and equipment | (2,721) | (2,353) |
Prepaid expenses | (343) | (270) |
Deferred loan costs, net | 0 | (137) |
Intangibles | (350) | (470) |
Other | (42) | (101) |
Total deferred tax liabilities | (7,173) | (3,857) |
Net deferred tax asset | $ 2,039 | $ 1,538 |
NONINTEREST INCOME AND NONINT_3
NONINTEREST INCOME AND NONINTEREST EXPENSE - Schedule of Other Nonoperating Income and Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income, Nonoperating [Abstract] | |||
Fiduciary and custodial income | $ 2,012 | $ 1,760 | $ 1,587 |
Bank-owned life insurance income | 838 | 774 | 570 |
Merchant and debit card fees | 5,515 | 4,264 | 3,642 |
Loan processing fee income | 628 | 590 | 589 |
Warehouse lending fees | 957 | 679 | 471 |
Mortgage fee income | 771 | 323 | 283 |
Other noninterest income | 2,418 | 2,029 | 2,303 |
Total | 13,139 | 10,419 | 9,445 |
Other Expense, Nonoperating [Abstract] | |||
Legal and professional fees | 2,650 | 2,610 | 3,080 |
Software support fees | 4,104 | 3,341 | 2,502 |
Amortization | 1,349 | 1,378 | 1,228 |
Director and committee fees | 846 | 873 | 1,029 |
Advertising and promotions | 1,498 | 1,655 | 1,410 |
ATM and debit card expense | 1,951 | 1,347 | 1,127 |
Office and computer supplies | 645 | 470 | 416 |
Postage | 268 | 302 | 310 |
Telecommunication expense | 864 | 676 | 649 |
FDIC insurance assessment fees | 821 | 173 | 625 |
Other real estate owned expenses and write-downs | 77 | 59 | 157 |
Other noninterest expense | 4,036 | 3,900 | 3,721 |
Total | $ 19,109 | $ 16,784 | $ 16,254 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Ineffectiveness included in net income | $ 0 | $ 0 | |
Interest expense | 13,060,000 | 23,691,000 | $ 19,542,000 |
Unrealized loss to be reclassified as a reduction of interest expense | 0 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | 5,000,000 | 5,000,000 | |
Interest expense | 747,000 | $ 648,000 | $ 687,000 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | FHLB Advances | |||
Derivative [Line Items] | |||
Notional amount | $ 40,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Information Pertaining to Outstanding Interest Rate Swap Agreements (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Swap, 3 month LIBOR plus 1.67% | ||
Derivative [Line Items] | ||
Notional Amount | $ 2,000,000 | $ 2,000,000 |
Pay Rate | 5.979% | 5.979% |
Effective Date | Oct. 1, 2016 | Oct. 1, 2016 |
Maturity in Years | 5 years 3 months | 6 years 3 months |
Unrealized Losses | $ 408,000 | $ 314,000 |
Interest Rate Swap, 3 month LIBOR plus 1.67% | LIBOR | ||
Derivative [Line Items] | ||
Receive Rate | 1.67% | 1.67% |
Interest Rate Swap, 3 month LIBOR plus 3.35% | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,000,000 | $ 3,000,000 |
Pay Rate | 7.505% | 7.505% |
Effective Date | Oct. 30, 2012 | Oct. 30, 2012 |
Maturity in Years | 1 year 9 months 29 days | 2 years 9 months 29 days |
Unrealized Losses | $ 221,000 | $ 212,000 |
Interest Rate Swap, 3 month LIBOR plus 3.35% | LIBOR | ||
Derivative [Line Items] | ||
Receive Rate | 3.35% | 3.35% |
Interest Rate Swap, 3 month LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | $ 15,000,000 | |
Pay Rate | 0.668% | |
Effective Date | Mar. 18, 2020 | |
Maturity in Years | 2 years 2 months 19 days | |
Unrealized Losses | $ 159,000 | |
Interest Rate Swap, 3 month LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | $ 15,000,000 | |
Pay Rate | 0.79% | |
Effective Date | Mar. 18, 2020 | |
Maturity in Years | 4 years 2 months 19 days | |
Unrealized Losses | $ 288,000 | |
Interest Rate Swap, 3 month LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | $ 10,000,000 | |
Pay Rate | 0.53% | |
Effective Date | Mar. 23, 2020 | |
Maturity in Years | 2 years 2 months 23 days | |
Unrealized Losses | $ 75,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
FHLB letters of credit | $ 40,833,000 | |
Letters of credit | ||
Other Commitments [Line Items] | ||
Potential guarantee obligation | 0 | $ 0 |
Loans Receivable | ||
Other Commitments [Line Items] | ||
Allowance for credit loss | $ 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Commitments and Letters of Credit Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 324,276 | $ 440,685 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 8,488 | $ 9,054 |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Common equity tier 1 capital to risk-weighted assets: | ||||||
Capital conservation buffer percentage, increase | 0.625% | 0.625% | 0.625% | |||
Bank | ||||||
Common equity tier 1 capital to risk-weighted assets: | ||||||
Amount available for dividend payments | $ 24,854,000 | |||||
Subordinated debentures | Subordinated Debentures II, Subordinated Debentures III, and DCB Debentures I | ||||||
Common equity tier 1 capital to risk-weighted assets: | ||||||
Debenture issued | $ 10,310,000 | $ 10,310,000 | ||||
Minimum [Member] | ||||||
Common equity tier 1 capital to risk-weighted assets: | ||||||
Capital conservation buffer percentage | 0.625% | |||||
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, 2020USD ($) | Dec. 31, 2019USD ($) |
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 263,144 | $ 253,793 |
Actual, Ratio | 13.20 | 13.29 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 159,496 | $ 152,770 |
Minimum Required for Capital Adequacy Purposes, Ratio | 8 | 8 |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 209,338 | $ 200,510 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 10.50 | 10.50 |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 238,115 | $ 237,591 |
Actual, Ratio | 11.94 | 12.44 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 119,622 | $ 114,577 |
Minimum Required for Capital Adequacy Purposes, Ratio | 6 | 6 |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 169,464 | $ 162,318 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 8.50 | 8.50 |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 238,115 | $ 237,591 |
Actual, Ratio | 9.13 | 10.29 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 104,293 | $ 92,318 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4 | 4 |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 104,293 | $ 92,318 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 4 | 4 |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 227,805 | $ 227,281 |
Actual, Ratio | 11.43 | 11.90 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 89,716 | $ 85,933 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 139,559 | $ 133,674 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 7.00% | 7.00% |
Bank | ||
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 285,490 | $ 249,643 |
Actual, Ratio | 14.32 | 13.07 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 159,514 | $ 152,774 |
Minimum Required for Capital Adequacy Purposes, Ratio | 8 | 8 |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 209,362 | $ 200,516 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 10.50 | 10.50 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 199,392 | $ 190,968 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10 | 10 |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 260,459 | $ 233,441 |
Actual, Ratio | 13.06 | 12.22 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 119,635 | $ 114,581 |
Minimum Required for Capital Adequacy Purposes, Ratio | 6 | 6 |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 169,483 | $ 162,322 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 8.50 | 8.50 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 159,514 | $ 152,774 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8 | 8 |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 260,459 | $ 233,441 |
Actual, Ratio | 9.99 | 10.11 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 104,293 | $ 92,321 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4 | 4 |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 104,293 | $ 92,321 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 4 | 4 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 130,366 | $ 115,401 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5 | 5 |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 260,459 | $ 233,441 |
Actual, Ratio | 13.06 | 12.22 |
Minimum Required for Capital Adequacy Purposes, Amount | $ 89,726 | $ 85,935 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 139,574 | $ 133,677 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 7.00% | 7.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 129,605 | $ 124,129 |
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 - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Funds Purchased And Securities Sold Under Agreements To Repurchase [Abstract] | ||
Mortgage backed securities and collateralized mortgage obligations | $ 15,631 | $ 11,100 |
SECURITIES SOLD UNDER AGREEME_4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Summary of Securities (Details) - Securities Sold under Agreements to Repurchase - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Short Term Debt [Line Items] | ||
Average balance during the year | $ 18,115 | $ 10,901 |
Average interest rate during the year | 0.18% | 0.50% |
Maximum month-end balance during the year | $ 21,400 | $ 11,542 |
Weighted average interest rate at year-end | 0.19% | 0.31% |
FAIR VALUE - Schedule of Financ
FAIR VALUE - Schedule of Financial Assets (Liabilities) Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 380,795 | $ 212,716 |
Loans held for sale | 5,542 | 2,368 |
Cash surrender value of life insurance | 35,510 | 34,495 |
SBA servicing assets | 763 | 672 |
Derivative instrument assets | 629 | 526 |
Derivative instrument liabilities | (1,151) | (526) |
Individually evaluated collateral dependent loans | 8,427 | 1,251 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 107,164 | 84,182 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 66,945 | 90,927 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 30,982 | 20,259 |
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 | 107,164 | 84,182 |
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 | 66,945 | 90,927 |
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 | 30,982 | 20,259 |
Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 8,427 | |
Impaired loans | 20,028 | |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 175,704 | 17,348 |
Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 175,704 | 17,348 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Cash surrender value of life insurance | 0 | 0 |
SBA servicing assets | 0 | 0 |
Derivative instrument assets | 0 | 0 |
Derivative instrument liabilities | 0 | 0 |
Municipal securities | 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 |
Municipal securities | 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 |
Municipal securities | 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 |
Municipal securities | Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 0 | |
Impaired loans | 0 | |
Municipal securities | Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Cash surrender value of life insurance | 35,510 | 34,495 |
SBA servicing assets | 0 | 0 |
Derivative instrument assets | 629 | 526 |
Derivative instrument liabilities | (1,151) | (526) |
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 | 107,164 | 84,182 |
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 | 66,945 | 90,927 |
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 | 30,982 | 20,259 |
Significant Other Observable Inputs (Level 2) | Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 0 | |
Impaired loans | 0 | |
Significant Other Observable Inputs (Level 2) | Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 175,704 | 17,348 |
Significant Other Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 5,542 | 2,368 |
Cash surrender value of life insurance | 0 | 0 |
SBA servicing assets | 763 | 672 |
Derivative instrument assets | 0 | 0 |
Derivative instrument liabilities | 0 | 0 |
Individually evaluated collateral dependent loans | 8,427 | 1,251 |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated collateral dependent loans | 8,427 | |
Impaired loans | 20,028 | |
Significant Other Unobservable Inputs (Level 3) | Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
FAIR VALUE - Fair Value of Fore
FAIR VALUE - Fair Value of Foreclosed Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | Other real estate owned remeasured at initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | $ 42 | $ 147 | $ 542 |
Carrying Value | Revision of Prior Period, Adjustment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 62 | 35 | 599 |
Charge-offs | Other real estate owned remeasured at initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | (9) | (11) | (25) |
Charge-offs | Revision of Prior Period, Adjustment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | (1) | (10) | (56) |
Fair Value | Other real estate owned remeasured at initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 33 | 136 | 517 |
Fair Value | Revision of Prior Period, Adjustment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | $ 61 | $ 25 | $ 543 |
FAIR VALUE - Schedule of Quanti
FAIR VALUE - Schedule of Quantitative Information About Nonrecurring Level 3 Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Assets at fair value on a nonrecurring basis: | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 20,028 | |
Assets at fair value on a nonrecurring basis: | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 20,028 | |
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 | $ 404 | 603 |
Cost to Sell | Impaired Loans | Sales Comparison Approach | Assets at fair value on a nonrecurring basis: | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 20,028 | |
Minimum [Member] | 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) | 0.10 | 0.10 |
Minimum [Member] | Cost to Sell | Impaired Loans | Sales Comparison Approach | Real Estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.10 | |
Minimum [Member] | Cost to Sell | Impaired Loans | Sales Comparison Approach | Equipment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.10 | |
Maximum | 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) | 0.20 | 0.20 |
Maximum | Cost to Sell | Impaired Loans | Sales Comparison Approach | Real Estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.20 | |
Maximum | Cost to Sell | Impaired Loans | Sales Comparison Approach | Equipment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.20 | |
Weighted Average | 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) | 0.16 | 0.16 |
Weighted Average | Cost to Sell | Impaired Loans | Sales Comparison Approach | Real Estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.16 | |
Weighted Average | Cost to Sell | Impaired Loans | Sales Comparison Approach | Equipment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.12 |
FAIR VALUE - Schedule of Indivi
FAIR VALUE - Schedule of Individually Evaluated Collateral Dependent Loans at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | $ 8,427 | $ 1,251 |
Construction And Development | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | 401 | |
Commercial Real Estate | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | 7,941 | 1,198 |
Commercial and Industrial Sector | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | 85 | |
Real Estate [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | 53 | |
Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | 8,427 | 1,251 |
Significant Other Unobservable Inputs (Level 3) | Construction And Development | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | 401 | |
Significant Other Unobservable Inputs (Level 3) | Commercial Real Estate | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | 7,941 | 1,198 |
Significant Other Unobservable Inputs (Level 3) | Commercial and Industrial Sector | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | $ 85 | |
Significant Other Unobservable Inputs (Level 3) | Real Estate [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total fair value of individually evaluated collateral dependent loans | $ 53 |
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, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Marketable securities held to maturity | $ 160,460 | |
Reported Value Measurement | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | $ 351,791 | 90,714 |
Marketable securities held to maturity | 155,458 | |
Loans, net | 1,831,737 | 1,690,794 |
Accrued interest receivable | 9,834 | 9,151 |
Nonmarketable equity securities | 14,095 | 12,301 |
Financial liabilities: | ||
Deposits | 2,286,390 | 1,956,804 |
Securities sold under repurchase agreements | 15,631 | 11,100 |
Accrued interest payable | 804 | 1,642 |
Federal Home Loan Bank advances | 109,101 | 55,118 |
Subordinated debentures | 19,810 | 10,810 |
Fair Value | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 351,791 | 90,714 |
Marketable securities held to maturity | 160,460 | |
Loans, net | 1,846,868 | 1,705,155 |
Accrued interest receivable | 9,834 | 9,151 |
Nonmarketable equity securities | 14,095 | 12,301 |
Financial liabilities: | ||
Deposits | 2,288,157 | 1,958,978 |
Securities sold under repurchase agreements | 15,631 | 11,100 |
Accrued interest payable | 804 | 1,642 |
Federal Home Loan Bank advances | 109,381 | 55,125 |
Subordinated debentures | 17,406 | 8,677 |
Fair Value | Level 1 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 351,791 | 90,714 |
Marketable securities held to maturity | 0 | |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Financial liabilities: | ||
Deposits | 1,907,587 | 1,438,509 |
Securities sold under repurchase agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures | 0 | 0 |
Fair Value | Level 2 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 0 | 0 |
Marketable securities held to maturity | 160,460 | |
Loans, net | 0 | 0 |
Accrued interest receivable | 9,834 | 9,151 |
Nonmarketable equity securities | 14,095 | 12,301 |
Financial liabilities: | ||
Deposits | 380,570 | 520,469 |
Securities sold under repurchase agreements | 15,631 | 11,100 |
Accrued interest payable | 804 | 1,642 |
Federal Home Loan Bank advances | 109,381 | 55,125 |
Subordinated debentures | 17,406 | 8,677 |
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 | |
Loans, net | 1,846,868 | 1,705,155 |
Accrued interest receivable | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCL (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (1,793,000) | $ (9,162,000) | $ (6,127,000) |
Other comprehensive income (loss) before reclassification | 7,352,000 | (2,589,000) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 17,000 | 40,000 |
Total other comprehensive income (loss) | 11,422,000 | 7,369,000 | (2,549,000) |
Reclassification of certain tax effects from accumulated other comprehensive loss | (486,000) | ||
Ending balance | 9,629,000 | (1,793,000) | (9,162,000) |
(Losses) and Gains on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (526,000) | (393,000) | (571,000) |
Other comprehensive income (loss) before reclassification | (133,000) | 178,000 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Total other comprehensive income (loss) | (625,000) | (133,000) | 178,000 |
Reclassification of certain tax effects from accumulated other comprehensive loss | 0 | ||
Ending balance | (1,151,000) | (526,000) | (393,000) |
Unrealized (Losses) and Gains on Securities | Available-for-sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,221,000) | (8,705,000) | (5,460,000) |
Other comprehensive income (loss) before reclassification | 7,467,000 | (2,799,000) | |
Amounts reclassified from accumulated other comprehensive loss | 17,000 | 40,000 | |
Total other comprehensive income (loss) | 12,001,000 | 7,484,000 | (2,759,000) |
Reclassification of certain tax effects from accumulated other comprehensive loss | (486,000) | ||
Ending balance | 10,780,000 | (1,221,000) | (8,705,000) |
Unrealized (Losses) and Gains on Securities | Held-to-maturity Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (46,000) | (64,000) | (96,000) |
Other comprehensive income (loss) before reclassification | 18,000 | 32,000 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Total other comprehensive income (loss) | 46,000 | 18,000 | 32,000 |
Reclassification of certain tax effects from accumulated other comprehensive loss | 0 | ||
Ending balance | $ 0 | $ (46,000) | $ (64,000) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Amounts reclassified out of accumulated other comprehensive income (loss) | $ 0 | $ (17,000) | $ (40,000) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications from AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized (loss) gain on securities sales | $ 0 | $ (22) | $ (50) |
Tax effect | $ (5,895) | (5,778) | (4,599) |
Reclassification out of Accumulated Other Comprehensive Loss | Unrealized Gains and (Losses) on Securities | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized (loss) gain on securities sales | 22 | 50 | |
Tax effect | (5) | (10) | |
Net of Tax | $ 17 | $ 40 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net earnings (basic) | $ 27,402 | $ 26,279 | $ 20,596 |
Net earnings (diluted) | $ 27,402 | $ 26,279 | $ 20,596 |
Denominator: | |||
Weighted-average shares outstanding (basic) (in shares) | 11,108,564 | 11,638,897 | 11,562,826 |
Effect of dilutive securities: | |||
Common stock equivalent shares from stock options (in shares) | 32,781 | 66,202 | 90,940 |
Weighted-average shares outstanding (diluted) (in shares) | 11,141,345 | 11,705,099 | 11,653,766 |
Net earnings per share | |||
Basic (in USD per share) | $ 2.47 | $ 2.26 | $ 1.78 |
Diluted (in USD per share) | $ 2.46 | $ 2.25 | $ 1.77 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ASSETS | ||||
Other assets | $ 34,848 | $ 32,701 | ||
Total assets | 2,740,832 | 2,318,444 | ||
LIABILITIES AND EQUITY | ||||
Accrued interest and other liabilities | 25,257 | 23,061 | ||
Shareholders’ equity | 272,643 | 261,551 | $ 244,583 | $ 207,345 |
Total liabilities and shareholders' equity | 2,740,832 | 2,318,444 | ||
Income Statement [Abstract] | ||||
Interest income | 103,042 | 102,561 | 88,458 | |
Interest expense | 13,060 | 23,691 | 19,542 | |
Income before income taxes | 33,297 | 32,057 | 25,195 | |
Tax effect | (5,895) | (5,778) | (4,599) | |
Net earnings | 27,402 | 26,279 | 20,596 | |
Comprehensive income | 38,824 | 33,648 | 18,047 | |
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 1,227 | 7,264 | ||
Investment in banking subsidiaries | 305,926 | 268,237 | ||
Other assets | 451 | 469 | ||
Total assets | 307,604 | 275,970 | ||
LIABILITIES AND EQUITY | ||||
Debt | 31,810 | 11,563 | ||
Accrued interest and other liabilities | 3,151 | 2,856 | ||
Shareholders’ equity | 272,643 | 261,551 | ||
Total liabilities and shareholders' equity | 307,604 | 275,970 | ||
Income Statement [Abstract] | ||||
Interest income | 10 | 15 | 13 | |
Dividends from Guaranty Bank & Trust | 0 | 23,000 | 10,000 | |
Income | 10 | 23,015 | 10,013 | |
Interest expense | 939 | 653 | 687 | |
Other expenses | 2,000 | 1,819 | 2,590 | |
Expenses | 2,939 | 2,472 | 3,277 | |
Income before income taxes | (2,929) | 20,543 | 6,736 | |
Tax effect | 574 | 639 | 482 | |
Net of Tax | (2,355) | 21,182 | 7,218 | |
Equity in undistributed earnings of subsidiary | 29,757 | 5,097 | 13,378 | |
Net earnings | 27,402 | 26,279 | 20,596 | |
Comprehensive income | $ 38,824 | $ 33,648 | $ 18,047 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net earnings | $ 27,402 | $ 26,279 | $ 20,596 |
Adjustments: | |||
Stock based compensation | 749 | 663 | 592 |
Net cash provided by operating activities | 42,521 | 32,046 | 28,214 |
Cash flows from investing activities | |||
Net cash used in investing activities | (165,768) | (17,740) | (108,734) |
Cash flows from financing activities | |||
Purchase of treasury stock | (16,927) | (10,140) | (4,265) |
Exercise of stock options | 638 | 925 | 327 |
Dividends paid | (8,487) | (8,065) | (7,031) |
Net cash provided by financing activities | 384,324 | 4,898 | 60,602 |
Net change in cash and cash equivalents | 261,077 | 19,204 | (19,918) |
Cash and cash equivalents at beginning of period | 90,714 | 71,510 | 91,428 |
Cash and cash equivalents at end of period | 351,791 | 90,714 | 71,510 |
Parent Company | |||
Cash flows from operating activities | |||
Net earnings | 27,402 | 26,279 | 20,596 |
Adjustments: | |||
Equity in undistributed subsidiary earnings | (29,757) | (5,097) | (13,378) |
Stock based compensation | 749 | 663 | 592 |
Change in other assets | 18 | 85 | 127 |
Change in other liabilities | (673) | 503 | 557 |
Net cash provided by operating activities | (2,261) | 22,433 | 8,494 |
Cash flows from investing activities | |||
Cash paid in connection with acquisitions | 0 | 0 | (6,423) |
Net cash used in investing activities | 0 | 0 | (6,423) |
Cash flows from financing activities | |||
Proceeds of borrowings | 40,000 | 0 | 0 |
Repayments of borrowings | (19,000) | (2,000) | (1,000) |
Purchase of treasury stock | (16,927) | (10,140) | (4,265) |
Exercise of stock options | 638 | 925 | 327 |
Dividends paid | (8,487) | (8,065) | (7,031) |
Net cash provided by financing activities | (3,776) | (19,280) | (11,969) |
Net change in cash and cash equivalents | (6,037) | 3,153 | (9,898) |
Cash and cash equivalents at beginning of period | 7,264 | 4,111 | 14,009 |
Cash and cash equivalents at end of period | $ 1,227 | $ 7,264 | $ 4,111 |