Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38888 | |
Entity Registrant Name | Red River Bancshares, Inc. | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 72-1412058 | |
Entity Address, Address Line One | 1412 Centre Court Drive, Suite 501 | |
Entity Address, City or Town | Alexandria | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 71301 | |
City Area Code | 318 | |
Local Phone Number | 561-5028 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | RRBI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Category | true | |
Entity Emerging Growth Category | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,325,333 | |
Entity Central Index Key | 0001071236 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 31,422 | $ 25,937 |
Interest-bearing deposits in other banks | 239,466 | 107,355 |
Total Cash and Cash Equivalents | 270,888 | 133,292 |
Securities available-for-sale | 467,744 | 335,573 |
Equity securities | 4,032 | 3,936 |
Nonmarketable equity securities | 3,445 | 1,350 |
Loans held for sale | 23,358 | 5,089 |
Loans held for investment | 1,649,272 | 1,438,924 |
Allowance for loan losses | (16,192) | (13,937) |
Premises and equipment, net | 44,501 | 41,744 |
Accrued interest receivable | 6,617 | 5,251 |
Bank-owned life insurance | 22,270 | 21,845 |
Intangible assets | 1,546 | 1,546 |
Right-of-use assets | 4,255 | 4,553 |
Other assets | 9,192 | 9,059 |
Total Assets | 2,490,928 | 1,988,225 |
LIABILITIES | ||
Noninterest-bearing deposits | 923,286 | 584,915 |
Interest-bearing deposits | 1,270,654 | 1,136,205 |
Total Deposits | 2,193,940 | 1,721,120 |
Accrued interest payable | 1,805 | 2,222 |
Lease liabilities | 4,327 | 4,603 |
Accrued expenses and other liabilities | 12,778 | 8,382 |
Total Liabilities | 2,212,850 | 1,736,327 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value: Authorized - 1,000,000 shares; None Issued and Outstanding | 0 | 0 |
Common stock, no par value: Authorized - 30,000,000 shares; Issued and Outstanding - 7,325,333 and 7,306,221 shares | 68,055 | 68,082 |
Additional paid-in capital | 1,487 | 1,269 |
Retained earnings | 202,136 | 182,571 |
Accumulated other comprehensive income (loss) | 6,400 | (24) |
Total Stockholders' Equity | 278,078 | 251,898 |
Total Liabilities and Stockholders' Equity | $ 2,490,928 | $ 1,988,225 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares, issued (in shares) | 7,325,333 | 7,325,333 |
Common stock, shares, outstanding (in shares) | 7,306,221 | 7,306,221 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INTEREST AND DIVIDEND INCOME | ||||
Interest and fees on loans | $ 17,080 | $ 16,578 | $ 50,623 | $ 48,026 |
Interest on securities | 2,099 | 1,800 | 5,766 | 5,347 |
Interest on federal funds sold | 30 | 178 | 179 | 603 |
Interest on deposits in other banks | 27 | 213 | 265 | 935 |
Dividends on stock | 13 | 12 | 19 | 30 |
Total Interest and Dividend Income | 19,249 | 18,781 | 56,852 | 54,941 |
INTEREST EXPENSE | ||||
Interest on deposits | 1,954 | 2,514 | 6,497 | 7,260 |
Interest on other borrowed funds | 0 | 0 | 16 | 0 |
Interest on junior subordinated debentures | 0 | 73 | 0 | 385 |
Total Interest Expense | 1,954 | 2,587 | 6,513 | 7,645 |
Net Interest Income | 17,295 | 16,194 | 50,339 | 47,296 |
Provision for loan losses | 1,590 | 378 | 3,618 | 1,432 |
Net Interest Income After Provision for Loan Losses | 15,705 | 15,816 | 46,721 | 45,864 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 1,055 | 1,195 | 3,001 | 3,304 |
Debit card income, net | 978 | 833 | 2,629 | 2,314 |
Mortgage loan income | 2,884 | 1,014 | 5,720 | 2,186 |
Brokerage income | 586 | 561 | 1,725 | 1,552 |
Loan and deposit income | 413 | 404 | 1,340 | 1,131 |
Bank-owned life insurance income | 139 | 137 | 425 | 407 |
Gain (Loss) on equity securities | 0 | 30 | 96 | 133 |
Gain (Loss) on sale of securities | 125 | 5 | 1,348 | 5 |
SBIC income | 200 | 139 | 568 | 634 |
Other income (loss) | 40 | 68 | 122 | 115 |
Total Noninterest Income | 6,420 | 4,386 | 16,974 | 11,781 |
OPERATING EXPENSES | ||||
Personnel expenses | 8,077 | 7,007 | 23,072 | 20,652 |
Occupancy and equipment expenses | 1,319 | 1,199 | 3,739 | 3,708 |
Technology expenses | 661 | 595 | 1,863 | 1,697 |
Advertising | 240 | 216 | 717 | 821 |
Other business development expenses | 233 | 266 | 782 | 827 |
Data processing expense | 491 | 479 | 1,412 | 1,420 |
Other taxes | 433 | 425 | 1,308 | 1,234 |
Loan and deposit expenses | 289 | 285 | 808 | 901 |
Legal and professional expenses | 487 | 436 | 1,587 | 1,138 |
Regulatory assessment expenses | 172 | 37 | 337 | 312 |
Other operating expenses | 849 | 940 | 2,445 | 2,737 |
Total Operating Expenses | 13,251 | 11,885 | 38,070 | 35,447 |
Income Before Income Tax Expense | 8,874 | 8,317 | 25,625 | 22,198 |
Income tax expense | 1,589 | 1,470 | 4,741 | 4,117 |
Net Income | $ 7,285 | $ 6,847 | $ 20,884 | $ 18,081 |
EARNINGS PER SHARE | ||||
Basic (in dollars per share) | $ 0.99 | $ 0.94 | $ 2.85 | $ 2.59 |
Diluted (in dollars per share) | $ 0.99 | $ 0.93 | $ 2.84 | $ 2.57 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,285 | $ 6,847 | $ 20,884 | $ 18,081 |
Other comprehensive income (loss): | ||||
Unrealized net gain (loss) on securities arising during period | 353 | 721 | 9,479 | 9,852 |
Tax effect | (74) | (150) | (1,990) | (2,068) |
(Gain) loss on sale of securities included in net income | (125) | (5) | (1,348) | (5) |
Tax effect | 26 | 1 | 283 | 1 |
Total change in other comprehensive income (loss) | 180 | 567 | 6,424 | 7,780 |
Comprehensive Income | $ 7,465 | $ 7,414 | $ 27,308 | $ 25,861 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at the beginning of period (in shares) at Dec. 31, 2018 | 6,627,358 | ||||
Balance in the beginning of period at Dec. 31, 2018 | $ 193,703 | $ 41,094 | $ 1,042 | $ 159,073 | $ (7,506) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,696 | 5,696 | |||
Stock incentive plan | 49 | 49 | |||
Issuance of shares of common stock through exercise of stock options (in shares) | 7,200 | ||||
Issuance of shares of common stock through exercise of stock options | 80 | $ 80 | |||
Issuance of shares of common stock as board compensation (in shares) | 2,368 | ||||
Issuance of shares of common stock as board compensation | 97 | $ 97 | |||
Cash dividend | (1,326) | (1,326) | |||
Other comprehensive income (loss) | 3,885 | 3,885 | |||
Balance at the end of period (in shares) at Mar. 31, 2019 | 6,636,926 | ||||
Balance at the end of period at Mar. 31, 2019 | 202,184 | $ 41,271 | 1,091 | 163,443 | (3,621) |
Balance at the beginning of period (in shares) at Dec. 31, 2018 | 6,627,358 | ||||
Balance in the beginning of period at Dec. 31, 2018 | 193,703 | $ 41,094 | 1,042 | 159,073 | (7,506) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 18,081 | ||||
Other comprehensive income (loss) | 7,780 | ||||
Balance at the end of period (in shares) at Sep. 30, 2019 | 7,306,221 | ||||
Balance at the end of period at Sep. 30, 2019 | 245,389 | $ 68,082 | 1,205 | 175,828 | 274 |
Balance at the beginning of period (in shares) at Mar. 31, 2019 | 6,636,926 | ||||
Balance in the beginning of period at Mar. 31, 2019 | 202,184 | $ 41,271 | 1,091 | 163,443 | (3,621) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,538 | 5,538 | |||
Stock incentive plan | 50 | 50 | |||
Issuance of shares of common stock through IPO (in shares) | 663,320 | ||||
Issuance of shares of common stock through IPO | 26,812 | $ 26,812 | |||
Board compensation adjustment | (1) | $ (1) | |||
Other comprehensive income (loss) | 3,328 | 3,328 | |||
Balance at the end of period (in shares) at Jun. 30, 2019 | 7,300,246 | ||||
Balance at the end of period at Jun. 30, 2019 | 237,911 | $ 68,082 | 1,141 | 168,981 | (293) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,847 | 6,847 | |||
Stock incentive plan | 64 | 64 | |||
Issuance of restricted shares of common stock through stock incentive plan, net (in shares) | 5,975 | ||||
Issuance of restricted shares of common stock through stock incentive plan, net | 0 | ||||
Other comprehensive income (loss) | 567 | 567 | |||
Balance at the end of period (in shares) at Sep. 30, 2019 | 7,306,221 | ||||
Balance at the end of period at Sep. 30, 2019 | $ 245,389 | $ 68,082 | 1,205 | 175,828 | 274 |
Balance at the beginning of period (in shares) at Dec. 31, 2019 | 7,306,221 | 7,306,221 | |||
Balance in the beginning of period at Dec. 31, 2019 | $ 251,898 | $ 68,082 | 1,269 | 182,571 | (24) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,745 | 6,745 | |||
Stock incentive plan | 64 | 64 | |||
Issuance of shares of common stock through exercise of stock options (in shares) | 14,720 | ||||
Issuance of shares of common stock through exercise of stock options | 8 | $ 8 | |||
Issuance of shares of common stock as board compensation (in shares) | 1,591 | ||||
Issuance of shares of common stock as board compensation | 87 | $ 87 | |||
Cash dividend | (439) | (439) | |||
Other comprehensive income (loss) | 5,812 | 5,812 | |||
Balance at the end of period (in shares) at Mar. 31, 2020 | 7,322,532 | ||||
Balance at the end of period at Mar. 31, 2020 | $ 264,175 | $ 68,177 | 1,333 | 188,877 | 5,788 |
Balance at the beginning of period (in shares) at Dec. 31, 2019 | 7,306,221 | 7,306,221 | |||
Balance in the beginning of period at Dec. 31, 2019 | $ 251,898 | $ 68,082 | 1,269 | 182,571 | (24) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 20,884 | ||||
Other comprehensive income (loss) | $ 6,424 | ||||
Balance at the end of period (in shares) at Sep. 30, 2020 | 7,306,221 | 7,325,333 | |||
Balance at the end of period at Sep. 30, 2020 | $ 278,078 | $ 68,055 | 1,487 | 202,136 | 6,400 |
Balance at the beginning of period (in shares) at Mar. 31, 2020 | 7,322,532 | ||||
Balance in the beginning of period at Mar. 31, 2020 | 264,175 | $ 68,177 | 1,333 | 188,877 | 5,788 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,854 | 6,854 | |||
Stock incentive plan | 96 | 96 | |||
Cash dividend | (440) | (440) | |||
Other comprehensive income (loss) | 432 | 432 | |||
Balance at the end of period (in shares) at Jun. 30, 2020 | 7,322,532 | ||||
Balance at the end of period at Jun. 30, 2020 | 271,117 | $ 68,177 | 1,429 | 195,291 | 6,220 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 7,285 | 7,285 | |||
Stock incentive plan | 58 | 58 | |||
Cash dividend | (440) | (440) | |||
Issuance of restricted shares of common stock through stock incentive plan, net (in shares) | 5,625 | ||||
Issuance of restricted shares of common stock through stock incentive plan, net | $ 0 | ||||
Purchase of common stock under stock buyback program (in shares) | (2,824) | (2,824) | |||
Purchase of common stock under stock repurchase program | $ (122) | $ (122) | |||
Other comprehensive income (loss) | $ 180 | 180 | |||
Balance at the end of period (in shares) at Sep. 30, 2020 | 7,306,221 | 7,325,333 | |||
Balance at the end of period at Sep. 30, 2020 | $ 278,078 | $ 68,055 | $ 1,487 | $ 202,136 | $ 6,400 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common Stock, Dividends, Per Share, Cash Paid (in dollar per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 20,884 | $ 18,081 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 1,362 | 1,279 |
Amortization | 404 | 468 |
Share-based compensation earned | 218 | 163 |
Share-based board compensation earned | 47 | 66 |
(Gain) Loss on other assets owned | 5 | (16) |
Net (accretion) amortization on securities AFS | 2,130 | 963 |
Gain on sale of securities AFS | (1,348) | (5) |
Provision for loan losses | 3,618 | 1,432 |
Deferred income tax (benefit) expense | (127) | (308) |
Net (increase) decrease in loans HFS | (18,269) | (1,209) |
Net (increase) decrease in accrued interest receivable | (1,366) | 85 |
Net (increase) decrease in BOLI | (425) | (406) |
Net increase (decrease) in accrued interest payable | (417) | 168 |
Net increase (decrease) in accrued income taxes payable | 462 | (252) |
Other operating activities, net | 1,465 | 477 |
Net cash provided by (used in) operating activities | 8,643 | 20,986 |
Activity in securities AFS: | ||
Sales | 93,376 | 34,957 |
Maturities, prepayments, and calls | 75,305 | 49,267 |
Purchases | (293,503) | (109,356) |
Purchase of nonmarketable equity securities | (2,095) | (48) |
Net (increase) decrease in loans HFI | (211,734) | (86,383) |
Proceeds from sales of foreclosed assets | 330 | 902 |
Purchases of premises and equipment | (4,113) | (1,402) |
Net cash provided by (used in) investing activities | (342,434) | (112,063) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 472,820 | 31,268 |
Proceeds from other borrowed funds | 50,000 | 0 |
Repayments of other borrowed funds | (50,000) | 0 |
Redemption of junior subordinated debentures | 0 | (11,341) |
Repurchase of common stock | (122) | 0 |
Proceeds from exercise of stock options | 8 | 80 |
Proceeds from initial public offering, net | 0 | 26,812 |
Cash dividends | (1,319) | (1,326) |
Net cash provided by (used in) financing activities | 471,387 | 45,493 |
Net change in cash and cash equivalents | 137,596 | (45,584) |
Cash and cash equivalents - beginning of period | 133,292 | 151,906 |
Cash and cash equivalents - end of period | 270,888 | 106,322 |
Cash paid during the year for: | ||
Interest | 6,930 | 7,477 |
Income taxes | 4,387 | 4,649 |
Initial measurement and recognition of operating lease assets in exchange for lease liabilities | 0 | 4,954 |
SUPPLEMENTAL INFORMATION FOR NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Assets acquired in settlement of loans | $ 23 | $ 1,609 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with GAAP for interim financial information, general practices within the financial services industry, and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all of the information or footnotes required by GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire fiscal year. These statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Certain prior period amounts have been reclassified to conform to the current period presentation. These changes in presentation did not have a material impact on the Company's financial condition or results of operations. Accounting Standards Adopted in 2020 ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds, and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. ASU 2018-13 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements . ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment based on that difference. The impairment will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the requirement to calculate a goodwill impairment using Step 2, which requires an entity to calculate any impairment by comparing the implied fair value of goodwill with its carrying amount. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. ASU 2017-04 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements . Recent Accounting Pronouncements ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The guidance issued in this update simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted tax changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 sets forth the CECL model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses. In addition, the update amends the accounting for credit losses on AFS securities. As an SEC registrant with smaller reporting company filing status as determined on June 30, 2019, CECL is effective for the Company beginning January 1, 2023. The Company continues to evaluate the impact of this ASU on the consolidated financial statements and disclosures. In that regard, the Company has formed a cross-functional working group and is currently working through an implementation plan. The implementation plan includes an assessment of data, model development and documentation, documentation of processes, and implementation of a third-party vendor solution to assist in the adoption of ASU 2016-13 . |
Securities
Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Securities held for indefinite periods of time are classified as AFS and carried at estimated fair value. The Company did not have any HTM securities as of September 30, 2020. Investment activity for the nine months ended September 30, 2020, included $293.5 million of securities purchased, partially offset by $93.4 million in sales and $75.3 million in maturities, prepayments, and calls. The net unrealized gain of the securities AFS portfolio increased $8.1 million for the nine months ended September 30, 2020. The amortized cost and estimated fair values of securities AFS are summarized in the following tables: September 30, 2020 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 278,786 $ 3,995 $ (268) $ 282,513 Municipal bonds 169,954 4,252 (82) 174,124 U.S. agency securities 10,903 210 (6) 11,107 Total Securities AFS $ 459,643 $ 8,457 $ (356) $ 467,744 December 31, 2019 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 236,572 $ 299 $ (1,200) $ 235,671 Municipal bonds 91,929 1,108 (279) 92,758 U.S. agency securities 7,102 46 (4) 7,144 Total Securities AFS $ 335,603 $ 1,453 $ (1,483) $ 335,573 The amortized costs and estimated fair value of debt securities as of September 30, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties. (in thousands) Amortized Fair Within one year $ 6,254 $ 6,281 After one year but within five years 41,179 42,008 After five years but within ten years 51,448 53,043 After ten years 360,762 366,412 Total $ 459,643 $ 467,744 Information pertaining to securities with gross unrealized losses as of September 30, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows: Less than twelve months Twelve months or more Gross Fair Gross Fair September 30, 2020 Securities AFS: Mortgage-backed securities $ (268) $ 64,059 $ — $ — Municipal bonds (82) 12,644 — — U.S. agency securities (6) 994 — — Total Securities AFS $ (356) $ 77,697 $ — $ — December 31, 2019 Securities AFS: Mortgage-backed securities $ (474) $ 109,416 $ (726) $ 70,425 Municipal bonds (172) 18,735 (107) 9,323 U.S. agency securities (4) 1,020 — — Total Securities AFS $ (650) $ 129,171 $ (833) $ 79,748 As of September 30, 2020, the number of investment securities in an unrealized loss position totaled 34. The aggregate unrealized loss of these securities as of September 30, 2020, was 0.08% of the amortized cost basis of the total securities AFS portfolio. Management and the Asset-Liability Committee continually monitor the securities portfolio and are able to effectively measure and monitor the unrealized loss positions on these securities. Management does not intend to sell these securities prior to recovery, and it is more likely than not that the Company will have the ability to hold them, primarily due to adequate liquidity, until each security has recovered its cost basis. The unrealized losses on these securities have been determined by management to be a function of the movement of interest rates since the time of purchase. Based on the review of available information, including recent changes in interest rates and credit rating information, management believes the declines in fair value of these securities are temporary. The Company does not consider these securities to have OTTI. Management evaluates securities for OTTI on at least a quarterly basis, and more frequently if economic or market concerns merit such evaluation. Consideration is 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) whether the Company intends to, and it is more likely than not that it will be able to, retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Additionally, the Company annually performs a detailed credit review of the municipal securities owned to identify any potential credit concerns. There were no OTTI losses on debt securities related to credit losses recognized during the nine months ended September 30, 2020, or the year ended December 31, 2019. The proceeds from sales of securities AFS and their gross gain (loss) for the three and nine months ended September 30, 2020 and 2019, are shown below: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Proceeds (1) $ 6,451 $ 34,957 $ 93,376 $ 34,957 Gross gain $ 125 $ 185 $ 1,441 $ 185 Gross loss $ — $ (180) $ (93) $ (180) (1) The proceeds include the gross gain and loss. Pledged Securities Securities with carrying values of approximately $92.3 million and $89.8 million were pledged to secure public entity deposits as of September 30, 2020 and December 31, 2019, respectively. |
Loans and Asset Quality
Loans and Asset Quality | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans and Asset Quality | Loans and Asset Quality Loans Loans HFI by category and loans HFS are summarized below: (in thousands) September 30, 2020 December 31, 2019 Real estate: Commercial real estate $ 567,037 $ 531,990 One-to-four family residential 426,758 420,020 Construction and development 129,879 132,461 Commercial and industrial 249,313 267,940 SBA PPP, net of deferred income 193,532 — Tax-exempt 59,418 56,494 Consumer 23,335 30,019 Total loans HFI $ 1,649,272 $ 1,438,924 Total loans HFS $ 23,358 $ 5,089 Allowance for Loan Losses The following table summarizes the activity in the allowance for loan losses by category for the nine months ended September 30, 2020: (in thousands) Beginning Provision Loans Recoveries Ending Real estate: Commercial real estate $ 3,454 $ 1,135 $ — $ — $ 4,589 One-to-four family residential 3,323 705 — 8 4,036 Construction and development 1,211 188 (14) 1 1,386 Commercial and industrial 5,175 896 (1,316) 83 4,838 SBA PPP, net of deferred income — 480 — — 480 Tax-exempt 334 114 — — 448 Consumer 440 100 (254) 129 415 Total allowance for loan losses $ 13,937 $ 3,618 $ (1,584) $ 221 $ 16,192 The following table summarizes the activity in the allowance for loan losses by category for the twelve months ended December 31, 2019: (in thousands) Beginning Provision Loans Recoveries Ending Real estate: Commercial real estate $ 3,081 $ 373 $ — $ — $ 3,454 One-to-four family residential 3,146 216 (44) 5 3,323 Construction and development 951 172 — 88 1,211 Commercial and industrial 4,604 850 (864) 585 5,175 SBA PPP, net of deferred income — — — — — Tax-exempt 372 (38) — — 334 Consumer 370 237 (311) 144 440 Total allowance for loan losses $ 12,524 $ 1,810 $ (1,219) $ 822 $ 13,937 The balance in the allowance for loan losses and the related recorded investment in loans by category as of September 30, 2020, are as follows: (in thousands) Individually Collectively Acquired with Total Allowance for loan losses: Real estate: Commercial real estate $ 279 $ 4,310 $ — $ 4,589 One-to-four family residential 41 3,995 — 4,036 Construction and development — 1,386 — 1,386 Commercial and industrial 2,432 2,406 — 4,838 SBA PPP, net of deferred income — 480 — 480 Tax-exempt — 448 — 448 Consumer 112 303 — 415 Total allowance for loan losses $ 2,864 $ 13,328 $ — $ 16,192 Loans: Real estate: Commercial real estate $ 3,639 $ 563,398 $ — $ 567,037 One-to-four family residential 1,333 425,425 — 426,758 Construction and development — 129,879 — 129,879 Commercial and industrial 10,034 239,279 — 249,313 SBA PPP, net of deferred income — 193,532 — 193,532 Tax-exempt — 59,418 — 59,418 Consumer 114 23,221 — 23,335 Total loans HFI $ 15,120 $ 1,634,152 $ — $ 1,649,272 The balance in the allowance for loan losses and the related recorded investment in loans by category as of December 31, 2019, are as follows: (in thousands) Individually Collectively Acquired with Total Allowance for loan losses: Real estate: Commercial real estate $ 260 $ 3,194 $ — $ 3,454 One-to-four family residential 31 3,292 — 3,323 Construction and development 10 1,201 — 1,211 Commercial and industrial 2,916 2,259 — 5,175 SBA PPP, net of deferred income — — — — Tax-exempt — 334 — 334 Consumer 71 369 — 440 Total allowance for loan losses $ 3,288 $ 10,649 $ — $ 13,937 Loans: Real estate: Commercial real estate $ 2,639 $ 529,351 $ — $ 531,990 One-to-four family residential 1,193 418,827 — 420,020 Construction and development 38 132,423 — 132,461 Commercial and industrial 8,797 259,143 — 267,940 SBA PPP, net of deferred income — — — — Tax-exempt — 56,494 — 56,494 Consumer 75 29,944 — 30,019 Total loans HFI $ 12,742 $ 1,426,182 $ — $ 1,438,924 Past Due and Nonaccrual Loans A summary of current, past due, and nonaccrual loans as of September 30, 2020, is as follows: Accruing (in thousands) Current 30-89 Days 90 Days Nonaccrual Total Real estate: Commercial real estate $ 564,989 $ 191 $ — $ 1,857 $ 567,037 One-to-four family residential 425,959 70 — 729 426,758 Construction and development 129,879 — — — 129,879 Commercial and industrial 247,463 56 80 1,714 249,313 SBA PPP, net of deferred income 193,532 — — — 193,532 Tax-exempt 59,418 — — — 59,418 Consumer 23,324 4 2 5 23,335 Total loans HFI $ 1,644,564 $ 321 $ 82 $ 4,305 $ 1,649,272 A summary of current, past due, and nonaccrual loans as of December 31, 2019, is as follows: Accruing (in thousands) Current 30-89 Days 90 Days Nonaccrual Total Real estate: Commercial real estate $ 530,712 $ — $ — $ 1,278 $ 531,990 One-to-four family residential 419,229 184 — 607 420,020 Construction and development 132,423 — — 38 132,461 Commercial and industrial 264,427 143 — 3,370 267,940 SBA PPP, net of deferred income — — — — — Tax-exempt 56,494 — — — 56,494 Consumer 29,973 20 — 26 30,019 Total loans HFI $ 1,433,258 $ 347 $ — $ 5,319 $ 1,438,924 Impaired Loans Impaired loans include TDRs and performing and nonperforming loans. Information pertaining to impaired loans as of September 30, 2020, is as follows: (in thousands) Unpaid Recorded Related Average With no related allowance recorded: Real estate: Commercial real estate $ 1,469 $ 1,438 $ — $ 1,414 One-to-four family residential 1,120 1,060 — 1,027 Construction and development — — — — Commercial and industrial 1,831 1,463 — 1,444 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 2 2 — 2 Total with no related allowance 4,422 3,963 — 3,887 With allowance recorded: Real estate: Commercial real estate 2,399 2,201 279 1,368 One-to-four family residential 280 273 41 218 Construction and development — — — 10 Commercial and industrial 8,594 8,571 2,432 7,179 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 114 112 112 102 Total with related allowance 11,387 11,157 2,864 8,877 Total impaired loans $ 15,809 $ 15,120 $ 2,864 $ 12,764 Information pertaining to impaired loans as of December 31, 2019, is as follows: (in thousands) Unpaid Recorded Related Average With no related allowance recorded: Real estate: Commercial real estate $ 1,560 $ 1,537 $ — $ 2,647 One-to-four family residential 1,040 984 — 1,194 Construction and development — — — 76 Commercial and industrial 1,805 1,474 — 3,685 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 2 2 — 9 Total with no related allowance 4,407 3,997 — 7,611 With allowance recorded: Real estate: Commercial real estate 1,263 1,102 260 1,076 One-to-four family residential 216 209 31 339 Construction and development 51 38 10 89 Commercial and industrial 8,544 7,323 2,916 7,746 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 76 73 71 76 Total with related allowance 10,150 8,745 3,288 9,326 Total impaired loans $ 14,557 $ 12,742 $ 3,288 $ 16,937 The interest income recognized on impaired loans for the three months ended September 30, 2020 and September 30, 2019, was $199,000 and $111,000, respectively. The interest income recognized on impaired loans for the nine months ended September 30, 2020 and September 30, 2019, was $361,000 and $336,000, respectively. Troubled Debt Restructurings The restructuring of a loan is considered a TDR if the borrower is experiencing financial difficulties and the bank has granted a concession. Concessions grant terms to the borrower that would not be offered for new debt with similar risk characteristics. Concessions typically include interest rate reductions or below market interest rates, revising amortization schedules to defer principal and interest payments, and other changes necessary to provide payment relief to the borrower and minimize the risk of loss. There were no unfunded commitments to extend credit related to these loans as of September 30, 2020 or December 31, 2019. A summary of current, past due, and nonaccrual TDR loans as of September 30, 2020, is as follows: (dollars in thousands) Current 30-89 90 Days Nonaccrual Total Real estate: Commercial real estate $ 1,162 $ — $ — $ 1,230 $ 2,392 One-to-four family residential 215 — — — 215 Construction and development — — — — — Commercial and industrial — — — 9 9 SBA PPP, net of deferred income — — — — — Tax-exempt — — — — — Consumer — — — — — Total $ 1,377 $ — $ — $ 1,239 $ 2,616 Number of TDR loans 7 — — 4 11 A summary of current, past due, and nonaccrual TDR loans as of December 31, 2019, is as follows: (dollars in thousands) Current 30-89 90 Days Nonaccrual Total Real estate: Commercial real estate $ 1,361 $ — $ — $ 1,278 $ 2,639 One-to-four family residential 252 — — — 252 Construction and development — — — 38 38 Commercial and industrial 36 — — 1,869 1,905 SBA PPP, net of deferred income — — — — — Tax-exempt — — — — — Consumer 46 — — — 46 Total $ 1,695 $ — $ — $ 3,185 $ 4,880 Number of TDR loans 12 — — 6 18 A summary of loans modified as TDRs that occurred during the nine months ended September 30, 2020 and September 30, 2019, is as follows: September 30, 2020 September 30, 2019 Recorded Investment Recorded Investment (dollars in thousands) Loan Pre Post Loan Pre Post Real estate: Commercial real estate — $ — $ — 1 $ 166 $ 166 One-to-four family residential — — — — — — Construction and development — — — — — — Commercial and industrial — — — 1 4 4 SBA PPP, net of deferred income — — — — — — Tax-exempt — — — — — — Consumer — — — — — — Total — $ — $ — 2 $ 170 $ 170 The TDRs described above increased the allowance for loan losses by $4,000 as of September 30, 2019. Additionally, there were no defaults on loans during the nine months ended September 30, 2020 or September 30, 2019, that had been modified as a TDR during the prior twelve months. Short-term loan modifications on loans HFI were made to provide temporary relief to borrowers that have been adversely affected by the outbreak of COVID-19. In accordance with interagency regulatory guidance issued in March 2020, these short-term deferrals are not deemed to be TDRs to the extent they meet the terms of such guidance. Credit Quality Indicators Loans are categorized based on the degree of risk inherent in the credit and the ability of the borrower to service the debt. A description of the general characteristics of the Bank’s risk rating grades follows: Pass - These loans are of satisfactory quality and do not require a more severe classification. Special Mention - This category includes loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan. Substandard - Loans in this category have well defined weaknesses which jeopardize normal repayment of principal and interest. Doubtful - Loans in this category have well defined weaknesses that make full collection improbable. Loss - Loans classified in this category are considered uncollectible and charged-off to the allowance for loan losses. The following table summarizes loans by risk rating as of September 30, 2020: (in thousands) Pass Special Substandard Doubtful Loss Total Real estate: Commercial real estate $ 562,169 $ 582 $ 4,286 $ — $ — $ 567,037 One-to-four family residential 424,921 492 1,345 — — 426,758 Construction and development 129,100 — 779 — — 129,879 Commercial and industrial 238,616 212 10,485 — — 249,313 SBA PPP, net of deferred income 193,532 — — — — 193,532 Tax-exempt 59,418 — — — — 59,418 Consumer 23,221 — 114 — — 23,335 Total loans HFI $ 1,630,977 $ 1,286 $ 17,009 $ — $ — $ 1,649,272 The following table summarizes loans by risk rating as of December 31, 2019: (in thousands) Pass Special Substandard Doubtful Loss Total Real estate: Commercial real estate $ 515,926 $ 14,118 $ 1,946 $ — $ — $ 531,990 One-to-four family residential 416,884 2,021 1,115 — — 420,020 Construction and development 131,185 565 711 — — 132,461 Commercial and industrial 247,382 11,473 9,085 — — 267,940 SBA PPP, net of deferred income — — — — — — Tax-exempt 56,494 — — — — 56,494 Consumer 29,876 5 138 — — 30,019 Total loans HFI $ 1,397,747 $ 28,182 $ 12,995 $ — $ — $ 1,438,924 Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer if all conditions of the commitment have been met. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s evaluation of the customer’s ability to repay. As of September 30, 2020, unfunded loan commitments totaled approximately $293.1 million. As of December 31, 2019, unfunded loan commitments totaled approximately $257.0 million. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2020 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits were $2.19 billion and $1.72 billion for September 30, 2020 and December 31, 2019, respectively. This increase was a result of customers receiving funds from various government stimulus programs, customers depositing the proceeds from their PPP loans, strong deposit account opening activity, a large, temporary deposit in late September 2020, and commercial customers maintaining larger deposit balances. Deposits are summarized below: (in thousands) September 30, 2020 December 31, 2019 Noninterest-bearing demand deposits $ 923,286 $ 584,915 Interest-bearing deposits: NOW accounts 304,616 331,374 Money market accounts 498,293 367,689 Savings accounts 135,396 103,984 Time deposits < $100,000 108,021 110,636 Time deposits $100,000 to $250,000 135,935 131,957 Time deposits > $250,000 88,393 90,565 Total interest-bearing deposits 1,270,654 1,136,205 Total deposits $ 2,193,940 $ 1,721,120 |
Other Borrowed Funds
Other Borrowed Funds | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Other Borrowed Funds | Other Borrowed FundsThe Company has established various lines of credit with the FHLB and other correspondent banks to provide additional sources of operating funds. On April 15, 2020, in order to fund PPP loans, the Company borrowed $50.0 million from the FHLB for 90 days at a rate of 0.35% under its existing line of credit. The Company's FHLB line of credit is collateralized by eligible Red River Bank loans. Due to having adequate liquidity, the $50.0 million was paid off on May 19, 2020. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is a lease at inception of the contract and assesses the appropriate classification as operating or financing. Operating leases with terms greater than one year are included in right-of-use assets and lease liabilities on the Company's consolidated balance sheets. Agreements with both lease and non-lease components are accounted for separately, with only the lease component capitalized. Operating right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the term using the interest rate implicit in the contract, when available, or the Company's incremental collateralized borrowing rate with similar terms. The Company maintains six operating leases on land and buildings for banking center facilities under long-term leases. These operating leases contain renewal options for periods ranging from three The Company elects to recognize the lease payments on leases with terms of one year or less in its consolidated statements of income on a straight-line basis over the lease term. Operating lease expenses totaled $137,000 for each of the three months ended September 30, 2020 and 2019. For each of the nine months ended September 30, 2020 and 2019, operating lease expenses were $412,000. Operating lease expenses are included as a component of occupancy and equipment expenses within the accompanying consolidated statements of income. Cash paid for amounts included in the measurement of lease liabilities for operating leases totaled $390,000 and $375,000 for the nine months ended September 30, 2020 and 2019, respectively. The table below summarizes other information related to the Company's operating leases as of and for the nine months ended September 30, 2020: (dollars in thousands) As of and for the Weighted average remaining operating lease term 9.6 years Weighted average operating lease discount rate 3.4 % Future obligations over the primary and renewal option terms of the Company’s long-term operating leases as of September 30, 2020, were as follows: (in thousands) Amount 3 months remaining in 2020 $ 130 2021 529 2022 537 2023 539 2024 539 Thereafter 2,815 Total lease payments 5,089 Less: Imputed interest (762) Present value of lease liabilities $ 4,327 The Company's obligations under financing leases are not material and have not been included in assets and liabilities in the financial statements. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesThe Company and the Bank are involved, from time to time, in various legal matters arising in the ordinary course of business. While the outcome of these claims or litigation cannot be determined at this time, in the opinion of management, neither the Company nor the Bank, are involved in such legal proceedings that the resolution is expected to have a material adverse effect on the consolidated results of operations, financial condition, or cash flows. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value Disclosure Securities AFS, loans HFS, and equity securities are recorded at fair value on a recurring basis. Additionally, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, foreclosed assets, and other certain assets. The nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. ASC 820, Fair Value Measurements and Disclosures indicates that assets and liabilities are recorded at fair value according to a fair value hierarchy comprised of three levels: Level 1 pricing represents quotes on the exact financial instrument that is traded in active markets. Quoted prices on actively traded equities, for example, are in this category. Level 2 pricing is derived from observable data including market spreads, current and projected rates, prepayment data, and credit quality. The valuation may be based on 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 pricing is derived without the use of observable data. In such cases, mark-to-model strategies are typically employed. Often, these types of instruments have no active market, possess unique characteristics, and are thinly traded. The Company used the following methods and significant assumptions to estimate fair value: Investment Securities and other Stocks: 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 HFS: Residential mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value on an individual basis. The fair values of mortgage loans HFS are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustments for mortgage loans HFS are recurring Level 2. Loans HFI: The Company does not record loans HFI at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using estimated fair value methodologies. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value, and discounted cash flows. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the impaired loan as nonrecurring Level 3. Foreclosed Assets: Foreclosed assets, consisting of properties obtained through foreclosure or in satisfaction of loans, are reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). However, foreclosed assets are considered Level 3 in the fair value hierarchy because management has qualitatively applied a discount due to the size, supply of inventory, and the incremental discounts applied to the appraisals. Management also considers other factors, including changes in absorption rates, length of time the property has been on the market, and anticipated sales values, which have resulted in adjustments to the collateral value estimates indicated in certain appraisals. Fair Value of Assets Measured on a Recurring Basis The table below presents the recorded amount of assets measured at fair value on a recurring basis: (in thousands) Fair Value Level 1 Level 2 Level 3 September 30, 2020 Loans HFS $ 23,358 $ — $ 23,358 $ — Securities AFS: Mortgage-backed securities 282,513 — 282,513 — Municipal bonds 174,124 — 174,124 — U.S. agency securities 11,107 — 11,107 — Equity securities 4,032 4,032 — — December 31, 2019 Loans HFS $ 5,089 $ — $ 5,089 $ — Securities AFS: Mortgage-backed securities 235,671 — 235,671 — Municipal bonds 92,758 — 92,758 — U.S. agency securities 7,144 — 7,144 — Equity securities 3,936 3,936 — — There were no transfers between Level 1, 2, or 3 during the nine months ended September 30, 2020 and the year ended December 31, 2019. Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis Financial Assets and Financial Liabilities: Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a nonrecurring basis during the reported periods include certain collateral dependent loans reported at fair value of the underlying collateral if repayment is expected solely from the collateral. Prior to foreclosure of these loans, fair value of the collateral is estimated using Level 3 inputs based on customized discounting criteria. The table below presents certain impaired loans that were remeasured and reported at fair value through the allowance for loan losses based upon the fair value of the underlying collateral during the reported periods: For the Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 Carrying value of impaired loans before allowance for loan losses $ 5,021 $ 1,337 Specific allowance for loan losses (780) (140) Fair value of impaired loans $ 4,241 $ 1,197 There were no financial liabilities measured at fair value on a nonrecurring basis. Nonfinancial Assets and Liabilities: Certain nonfinancial assets and nonfinancial liabilities are measured at fair value on a nonrecurring basis. These include certain foreclosed assets, which are remeasured and reported at fair value through a charge-off to allowance for loan losses upon initial recognition. Subsequent to their initial recognition, certain foreclosed assets are remeasured at fair value through a write-down included in other noninterest income. The fair value of foreclosed assets is estimated using Level 3 inputs based on customized discounting criteria less estimated selling costs. The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods: For the Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to remeasurement $ — $ 1,119 Charge-offs — — Fair value of foreclosed assets $ — $ 1,119 There were no foreclosed assets that were remeasured subsequent to initial recognition for the nine months ended September 30, 2020 or September 30, 2019. There were no nonfinancial liabilities measured at fair value on a nonrecurring basis. The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis are as follows: (dollars in thousands) Fair Value Valuation Technique Unobservable Input Discount Ranges Weighted Average Discount September 30, 2020 Impaired loans $ 12,256 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 18.24% Foreclosed assets $ 828 Discounted appraisals Collateral discounts and costs to sell N/A N/A December 31, 2019 Impaired loans $ 9,454 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 25.80% Foreclosed assets $ 1,128 Discounted appraisals Collateral discounts and costs to sell 0% - 36% 2.60% Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments as of September 30, 2020 and December 31, 2019, were as follows: (in thousands) Carrying Fair Value Level 1 Level 2 Level 3 September 30, 2020 Financial assets: Cash and due from banks $ 31,422 $ 31,422 $ 31,422 $ — $ — Interest-bearing deposits in other banks 239,466 239,466 239,466 — — Securities AFS 467,744 467,744 — 467,744 — Equity securities 4,032 4,032 4,032 — — Nonmarketable equity securities 3,445 3,445 — 3,445 — Loans HFS 23,358 23,358 — 23,358 — Loans HFI, net of allowance 1,633,080 1,641,936 — — 1,641,936 Accrued interest receivable 6,617 6,617 — — 6,617 Financial liabilities: Deposits 2,193,940 2,198,985 — 2,198,985 — Accrued interest payable 1,805 1,805 — 1,805 — December 31, 2019 Financial assets: Cash and due from banks $ 25,937 $ 25,937 $ 25,937 $ — $ — Interest-bearing deposits in other banks 107,355 107,355 107,355 — — Securities AFS 335,573 335,573 — 335,573 — Equity securities 3,936 3,936 3,936 — — Nonmarketable equity securities 1,350 1,350 — 1,350 — Loans HFS 5,089 5,089 — 5,089 — Loans HFI, net of allowance 1,424,987 1,426,163 — — 1,426,163 Accrued interest receivable 5,251 5,251 — — 5,251 Financial liabilities: Deposits 1,721,120 1,721,286 — 1,721,286 — Accrued interest payable 2,222 2,222 — 2,222 — |
Regulatory Capital Requirements
Regulatory Capital Requirements | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements Red River Bank The Bank is subject to various regulatory capital requirements administered by the FDIC. 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 Bank's and the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Bank is subject to Basel III capital guidelines. Basel III requires the Bank to maintain certain minimum ratios to meet capital adequacy requirements. In addition, a capital conservation buffer ("CCB") was established above the minimum regulatory capital requirements. Effective January 1, 2019, the final CCB was fully phased in at 2.500%. It is management’s belief that, as of September 30, 2020, the Bank met all capital adequacy requirements under Basel III. Management expects that the capital ratios for the Bank under Basel III will continue to exceed capital adequacy requirements. The most recent notification from the FDIC (as of December 31, 2019) categorized the Bank as "well capitalized" under the regulatory framework for prompt corrective action. Capital amounts and ratios for Red River Bank as of September 30, 2020 and December 31, 2019, are presented in the following table: Regulatory Requirements Actual Minimum Minimum Plus CCB (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2020 Total Risk-Based Capital $ 261,840 16.62 % $ 126,031 8.00 % $ 165,415 10.50 % Tier I Risk-Based Capital $ 245,648 15.59 % $ 94,523 6.00 % $ 133,908 8.50 % Common Equity Tier I Capital $ 245,648 15.59 % $ 70,892 4.50 % $ 110,277 7.00 % Tier I Leverage Capital $ 245,648 10.24 % $ 95,933 4.00 % $ 95,933 4.00 % December 31, 2019 Total Risk-Based Capital $ 238,021 16.23 % $ 117,325 8.00 % $ 153,989 10.50 % Tier I Risk-Based Capital $ 224,084 15.28 % $ 87,994 6.00 % $ 124,658 8.50 % Common Equity Tier I Capital $ 224,084 15.28 % $ 65,995 4.50 % $ 102,660 7.00 % Tier I Leverage Capital $ 224,084 11.47 % $ 78,114 4.00 % $ 78,114 4.00 % Red River Bancshares, Inc. As a general matter, bank holding companies are subject to capital adequacy requirements under applicable Federal Reserve regulations. However, bank holding companies which qualify as "small bank holding companies" under the Federal Reserve's Small Bank Holding Company Policy Statement are exempt from the Federal Reserve's capital adequacy guidelines at the holding company level. In May 2018, the Economic Growth Act was enacted, and it increased the asset threshold for "small bank holding companies" from $1.0 billion to $3.0 billion. Because the Company has less than $3.0 billion in assets, it is no longer subject to capital adequacy guidelines on a consolidated basis. Although the minimum regulatory capital requirements are no longer applicable to the Company, the Company calculates these ratios for its own planning and monitoring purposes. Capital amounts and ratios for Red River Bancshares, Inc. as of September 30, 2020 and December 31, 2019, are presented in the following table: Actual (dollars in thousands) Amount Ratio September 30, 2020 Total Risk-Based Capital $ 286,324 18.17 % Tier I Risk-Based Capital $ 270,132 17.15 % Common Equity Tier I Capital $ 270,132 17.15 % Tier I Leverage Capital $ 270,132 11.26 % December 31, 2019 Total Risk-Based Capital $ 264,313 18.02 % Tier I Risk-Based Capital $ 250,376 17.07 % Common Equity Tier I Capital $ 250,376 17.07 % Tier I Leverage Capital $ 250,376 12.82 % Community Bank Leverage Ratio Framework As part of the directive under the Economic Growth Act, on September 17, 2019, the FDIC and other federal bank regulatory agencies approved the CBLR framework. This optional framework became effective January 1, 2020, and is available as an alternative to the Basel III risk-based capital framework. The CBLR framework provides for a simple measure of capital adequacy for certain community banking organizations. Specifically, depository institutions and depository institution holding companies that have less than $10.0 billion in total consolidated assets and meet other qualifying criteria, including a Tier 1 leverage ratio of greater than 9.00% (subsequently temporarily reduced to 8.00% as a COVID-19 relief measure), are considered qualifying community banking organizations and are eligible to opt into the CBLR framework and replace the applicable Basel III risk-based capital requirements. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits. Diluted EPS includes accrued but unissued shares relating to the Director's Compensation Program, stock options, and restricted stock determined using the treasury stock method. The dilutive EPS calculation assumes all outstanding stock options to purchase common stock have been exercised at the beginning of the year and the pro forma proceeds from the exercised options and restricted stock are used to purchase common stock at the average fair market valuation price. The computations of basic and diluted earnings per common share for the Company were as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands, except per share amounts) 2020 2019 2020 2019 Numerator: Net income - basic $ 7,285 $ 6,847 $ 20,884 $ 18,081 Net income - diluted $ 7,285 $ 6,847 $ 20,884 $ 18,081 Denominator: Weighted average shares outstanding - basic 7,327,395 7,304,273 7,321,092 6,993,990 Plus: Effect of Director Stock Compensation Program 272 330 1,088 1,529 Plus: Effect of stock options and restricted stock 15,011 35,895 19,567 36,540 Weighted average shares outstanding - diluted 7,342,678 7,340,498 7,341,747 7,032,059 Earnings per common share: Basic $ 0.99 $ 0.94 $ 2.85 $ 2.59 Diluted $ 0.99 $ 0.93 $ 2.84 $ 2.57 |
Stock Repurchase Program
Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase ProgramOn August 27, 2020, the Company's board of directors approved a stock repurchase program. The repurchase program authorizes the Company to purchase up to $3.0 million of its outstanding shares of common stock through August 27, 2021. Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions. For the quarter ended September 30, 2020, the Company repurchased 2,824 shares, at an aggregate cost of $122,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited consolidated financial statements of the Company were prepared in accordance with GAAP for interim financial information, general practices within the financial services industry, and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all of the information or footnotes required by GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire fiscal year. These statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Reclassification | Certain prior period amounts have been reclassified to conform to the current period presentation. These changes in presentation did not have a material impact on the Company's financial condition or results of operations. |
Critical Accounting Policies and Estimates | Critical Accounting Policies and Estimates There were no material changes or developments during the reporting period with respect to methodologies the Company uses when applying critical accounting policies and developing critical accounting estimates as disclosed in Note 1 of the notes to the audited consolidated financial statements for the year ended December 31, 2019, that were included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. In preparing the financial statements, the Company is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s financial condition, results of operations, comprehensive income, changes in stockholders’ equity, and cash flows for the interim period presented. These adjustments are of a normal recurring nature and include appropriate estimated provisions. |
Accounting Standards Adopted in 2020 and Recent Accounting Pronouncements | Accounting Standards Adopted in 2020 ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds, and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. ASU 2018-13 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements . ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment based on that difference. The impairment will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the requirement to calculate a goodwill impairment using Step 2, which requires an entity to calculate any impairment by comparing the implied fair value of goodwill with its carrying amount. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. ASU 2017-04 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements . Recent Accounting Pronouncements ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The guidance issued in this update simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted tax changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 sets forth the CECL model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses. In addition, the update amends the accounting for credit losses on AFS securities. As an SEC registrant with smaller reporting company filing status as determined on June 30, 2019, CECL is effective for the Company beginning January 1, 2023. The Company continues to evaluate the impact of this ASU on the consolidated financial statements and disclosures. In that regard, the Company has formed a cross-functional working group and is currently working through an implementation plan. The implementation plan includes an assessment of data, model development and documentation, documentation of processes, and implementation of a third-party vendor solution to assist in the adoption of ASU 2016-13 . |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of debt securities available for sale | The amortized cost and estimated fair values of securities AFS are summarized in the following tables: September 30, 2020 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 278,786 $ 3,995 $ (268) $ 282,513 Municipal bonds 169,954 4,252 (82) 174,124 U.S. agency securities 10,903 210 (6) 11,107 Total Securities AFS $ 459,643 $ 8,457 $ (356) $ 467,744 December 31, 2019 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 236,572 $ 299 $ (1,200) $ 235,671 Municipal bonds 91,929 1,108 (279) 92,758 U.S. agency securities 7,102 46 (4) 7,144 Total Securities AFS $ 335,603 $ 1,453 $ (1,483) $ 335,573 |
Schedule of maturities of securities available for sale | The amortized costs and estimated fair value of debt securities as of September 30, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties. (in thousands) Amortized Fair Within one year $ 6,254 $ 6,281 After one year but within five years 41,179 42,008 After five years but within ten years 51,448 53,043 After ten years 360,762 366,412 Total $ 459,643 $ 467,744 |
Schedule of debt securities available for sale in unrealized loss position | Information pertaining to securities with gross unrealized losses as of September 30, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows: Less than twelve months Twelve months or more Gross Fair Gross Fair September 30, 2020 Securities AFS: Mortgage-backed securities $ (268) $ 64,059 $ — $ — Municipal bonds (82) 12,644 — — U.S. agency securities (6) 994 — — Total Securities AFS $ (356) $ 77,697 $ — $ — December 31, 2019 Securities AFS: Mortgage-backed securities $ (474) $ 109,416 $ (726) $ 70,425 Municipal bonds (172) 18,735 (107) 9,323 U.S. agency securities (4) 1,020 — — Total Securities AFS $ (650) $ 129,171 $ (833) $ 79,748 |
Schedule of realized gain (loss) | The proceeds from sales of securities AFS and their gross gain (loss) for the three and nine months ended September 30, 2020 and 2019, are shown below: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Proceeds (1) $ 6,451 $ 34,957 $ 93,376 $ 34,957 Gross gain $ 125 $ 185 $ 1,441 $ 185 Gross loss $ — $ (180) $ (93) $ (180) |
Loans and Asset Quality (Tables
Loans and Asset Quality (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of loans information | Loans HFI by category and loans HFS are summarized below: (in thousands) September 30, 2020 December 31, 2019 Real estate: Commercial real estate $ 567,037 $ 531,990 One-to-four family residential 426,758 420,020 Construction and development 129,879 132,461 Commercial and industrial 249,313 267,940 SBA PPP, net of deferred income 193,532 — Tax-exempt 59,418 56,494 Consumer 23,335 30,019 Total loans HFI $ 1,649,272 $ 1,438,924 Total loans HFS $ 23,358 $ 5,089 |
Schedule of allowance for credit losses | The following table summarizes the activity in the allowance for loan losses by category for the nine months ended September 30, 2020: (in thousands) Beginning Provision Loans Recoveries Ending Real estate: Commercial real estate $ 3,454 $ 1,135 $ — $ — $ 4,589 One-to-four family residential 3,323 705 — 8 4,036 Construction and development 1,211 188 (14) 1 1,386 Commercial and industrial 5,175 896 (1,316) 83 4,838 SBA PPP, net of deferred income — 480 — — 480 Tax-exempt 334 114 — — 448 Consumer 440 100 (254) 129 415 Total allowance for loan losses $ 13,937 $ 3,618 $ (1,584) $ 221 $ 16,192 The following table summarizes the activity in the allowance for loan losses by category for the twelve months ended December 31, 2019: (in thousands) Beginning Provision Loans Recoveries Ending Real estate: Commercial real estate $ 3,081 $ 373 $ — $ — $ 3,454 One-to-four family residential 3,146 216 (44) 5 3,323 Construction and development 951 172 — 88 1,211 Commercial and industrial 4,604 850 (864) 585 5,175 SBA PPP, net of deferred income — — — — — Tax-exempt 372 (38) — — 334 Consumer 370 237 (311) 144 440 Total allowance for loan losses $ 12,524 $ 1,810 $ (1,219) $ 822 $ 13,937 The balance in the allowance for loan losses and the related recorded investment in loans by category as of September 30, 2020, are as follows: (in thousands) Individually Collectively Acquired with Total Allowance for loan losses: Real estate: Commercial real estate $ 279 $ 4,310 $ — $ 4,589 One-to-four family residential 41 3,995 — 4,036 Construction and development — 1,386 — 1,386 Commercial and industrial 2,432 2,406 — 4,838 SBA PPP, net of deferred income — 480 — 480 Tax-exempt — 448 — 448 Consumer 112 303 — 415 Total allowance for loan losses $ 2,864 $ 13,328 $ — $ 16,192 Loans: Real estate: Commercial real estate $ 3,639 $ 563,398 $ — $ 567,037 One-to-four family residential 1,333 425,425 — 426,758 Construction and development — 129,879 — 129,879 Commercial and industrial 10,034 239,279 — 249,313 SBA PPP, net of deferred income — 193,532 — 193,532 Tax-exempt — 59,418 — 59,418 Consumer 114 23,221 — 23,335 Total loans HFI $ 15,120 $ 1,634,152 $ — $ 1,649,272 The balance in the allowance for loan losses and the related recorded investment in loans by category as of December 31, 2019, are as follows: (in thousands) Individually Collectively Acquired with Total Allowance for loan losses: Real estate: Commercial real estate $ 260 $ 3,194 $ — $ 3,454 One-to-four family residential 31 3,292 — 3,323 Construction and development 10 1,201 — 1,211 Commercial and industrial 2,916 2,259 — 5,175 SBA PPP, net of deferred income — — — — Tax-exempt — 334 — 334 Consumer 71 369 — 440 Total allowance for loan losses $ 3,288 $ 10,649 $ — $ 13,937 Loans: Real estate: Commercial real estate $ 2,639 $ 529,351 $ — $ 531,990 One-to-four family residential 1,193 418,827 — 420,020 Construction and development 38 132,423 — 132,461 Commercial and industrial 8,797 259,143 — 267,940 SBA PPP, net of deferred income — — — — Tax-exempt — 56,494 — 56,494 Consumer 75 29,944 — 30,019 Total loans HFI $ 12,742 $ 1,426,182 $ — $ 1,438,924 |
Schedule of financing receivable past due | A summary of current, past due, and nonaccrual loans as of September 30, 2020, is as follows: Accruing (in thousands) Current 30-89 Days 90 Days Nonaccrual Total Real estate: Commercial real estate $ 564,989 $ 191 $ — $ 1,857 $ 567,037 One-to-four family residential 425,959 70 — 729 426,758 Construction and development 129,879 — — — 129,879 Commercial and industrial 247,463 56 80 1,714 249,313 SBA PPP, net of deferred income 193,532 — — — 193,532 Tax-exempt 59,418 — — — 59,418 Consumer 23,324 4 2 5 23,335 Total loans HFI $ 1,644,564 $ 321 $ 82 $ 4,305 $ 1,649,272 A summary of current, past due, and nonaccrual loans as of December 31, 2019, is as follows: Accruing (in thousands) Current 30-89 Days 90 Days Nonaccrual Total Real estate: Commercial real estate $ 530,712 $ — $ — $ 1,278 $ 531,990 One-to-four family residential 419,229 184 — 607 420,020 Construction and development 132,423 — — 38 132,461 Commercial and industrial 264,427 143 — 3,370 267,940 SBA PPP, net of deferred income — — — — — Tax-exempt 56,494 — — — 56,494 Consumer 29,973 20 — 26 30,019 Total loans HFI $ 1,433,258 $ 347 $ — $ 5,319 $ 1,438,924 |
Schedule of impaired financing receivable | Information pertaining to impaired loans as of September 30, 2020, is as follows: (in thousands) Unpaid Recorded Related Average With no related allowance recorded: Real estate: Commercial real estate $ 1,469 $ 1,438 $ — $ 1,414 One-to-four family residential 1,120 1,060 — 1,027 Construction and development — — — — Commercial and industrial 1,831 1,463 — 1,444 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 2 2 — 2 Total with no related allowance 4,422 3,963 — 3,887 With allowance recorded: Real estate: Commercial real estate 2,399 2,201 279 1,368 One-to-four family residential 280 273 41 218 Construction and development — — — 10 Commercial and industrial 8,594 8,571 2,432 7,179 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 114 112 112 102 Total with related allowance 11,387 11,157 2,864 8,877 Total impaired loans $ 15,809 $ 15,120 $ 2,864 $ 12,764 Information pertaining to impaired loans as of December 31, 2019, is as follows: (in thousands) Unpaid Recorded Related Average With no related allowance recorded: Real estate: Commercial real estate $ 1,560 $ 1,537 $ — $ 2,647 One-to-four family residential 1,040 984 — 1,194 Construction and development — — — 76 Commercial and industrial 1,805 1,474 — 3,685 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 2 2 — 9 Total with no related allowance 4,407 3,997 — 7,611 With allowance recorded: Real estate: Commercial real estate 1,263 1,102 260 1,076 One-to-four family residential 216 209 31 339 Construction and development 51 38 10 89 Commercial and industrial 8,544 7,323 2,916 7,746 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 76 73 71 76 Total with related allowance 10,150 8,745 3,288 9,326 Total impaired loans $ 14,557 $ 12,742 $ 3,288 $ 16,937 |
Schedule of TDRs | A summary of current, past due, and nonaccrual TDR loans as of September 30, 2020, is as follows: (dollars in thousands) Current 30-89 90 Days Nonaccrual Total Real estate: Commercial real estate $ 1,162 $ — $ — $ 1,230 $ 2,392 One-to-four family residential 215 — — — 215 Construction and development — — — — — Commercial and industrial — — — 9 9 SBA PPP, net of deferred income — — — — — Tax-exempt — — — — — Consumer — — — — — Total $ 1,377 $ — $ — $ 1,239 $ 2,616 Number of TDR loans 7 — — 4 11 A summary of current, past due, and nonaccrual TDR loans as of December 31, 2019, is as follows: (dollars in thousands) Current 30-89 90 Days Nonaccrual Total Real estate: Commercial real estate $ 1,361 $ — $ — $ 1,278 $ 2,639 One-to-four family residential 252 — — — 252 Construction and development — — — 38 38 Commercial and industrial 36 — — 1,869 1,905 SBA PPP, net of deferred income — — — — — Tax-exempt — — — — — Consumer 46 — — — 46 Total $ 1,695 $ — $ — $ 3,185 $ 4,880 Number of TDR loans 12 — — 6 18 A summary of loans modified as TDRs that occurred during the nine months ended September 30, 2020 and September 30, 2019, is as follows: September 30, 2020 September 30, 2019 Recorded Investment Recorded Investment (dollars in thousands) Loan Pre Post Loan Pre Post Real estate: Commercial real estate — $ — $ — 1 $ 166 $ 166 One-to-four family residential — — — — — — Construction and development — — — — — — Commercial and industrial — — — 1 4 4 SBA PPP, net of deferred income — — — — — — Tax-exempt — — — — — — Consumer — — — — — — Total — $ — $ — 2 $ 170 $ 170 |
Schedule of financing receivable by credit risk | The following table summarizes loans by risk rating as of September 30, 2020: (in thousands) Pass Special Substandard Doubtful Loss Total Real estate: Commercial real estate $ 562,169 $ 582 $ 4,286 $ — $ — $ 567,037 One-to-four family residential 424,921 492 1,345 — — 426,758 Construction and development 129,100 — 779 — — 129,879 Commercial and industrial 238,616 212 10,485 — — 249,313 SBA PPP, net of deferred income 193,532 — — — — 193,532 Tax-exempt 59,418 — — — — 59,418 Consumer 23,221 — 114 — — 23,335 Total loans HFI $ 1,630,977 $ 1,286 $ 17,009 $ — $ — $ 1,649,272 The following table summarizes loans by risk rating as of December 31, 2019: (in thousands) Pass Special Substandard Doubtful Loss Total Real estate: Commercial real estate $ 515,926 $ 14,118 $ 1,946 $ — $ — $ 531,990 One-to-four family residential 416,884 2,021 1,115 — — 420,020 Construction and development 131,185 565 711 — — 132,461 Commercial and industrial 247,382 11,473 9,085 — — 267,940 SBA PPP, net of deferred income — — — — — — Tax-exempt 56,494 — — — — 56,494 Consumer 29,876 5 138 — — 30,019 Total loans HFI $ 1,397,747 $ 28,182 $ 12,995 $ — $ — $ 1,438,924 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deposits [Abstract] | |
Summary of deposits | Deposits are summarized below: (in thousands) September 30, 2020 December 31, 2019 Noninterest-bearing demand deposits $ 923,286 $ 584,915 Interest-bearing deposits: NOW accounts 304,616 331,374 Money market accounts 498,293 367,689 Savings accounts 135,396 103,984 Time deposits < $100,000 108,021 110,636 Time deposits $100,000 to $250,000 135,935 131,957 Time deposits > $250,000 88,393 90,565 Total interest-bearing deposits 1,270,654 1,136,205 Total deposits $ 2,193,940 $ 1,721,120 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Information about operating leases | The table below summarizes other information related to the Company's operating leases as of and for the nine months ended September 30, 2020: (dollars in thousands) As of and for the Weighted average remaining operating lease term 9.6 years Weighted average operating lease discount rate 3.4 % |
Schedule of maturity of operating lease liability | Future obligations over the primary and renewal option terms of the Company’s long-term operating leases as of September 30, 2020, were as follows: (in thousands) Amount 3 months remaining in 2020 $ 130 2021 529 2022 537 2023 539 2024 539 Thereafter 2,815 Total lease payments 5,089 Less: Imputed interest (762) Present value of lease liabilities $ 4,327 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets measured on recurring basis | The table below presents the recorded amount of assets measured at fair value on a recurring basis: (in thousands) Fair Value Level 1 Level 2 Level 3 September 30, 2020 Loans HFS $ 23,358 $ — $ 23,358 $ — Securities AFS: Mortgage-backed securities 282,513 — 282,513 — Municipal bonds 174,124 — 174,124 — U.S. agency securities 11,107 — 11,107 — Equity securities 4,032 4,032 — — December 31, 2019 Loans HFS $ 5,089 $ — $ 5,089 $ — Securities AFS: Mortgage-backed securities 235,671 — 235,671 — Municipal bonds 92,758 — 92,758 — U.S. agency securities 7,144 — 7,144 — Equity securities 3,936 3,936 — — |
Schedule of fair value of assets measured on nonrecurring basis | The table below presents certain impaired loans that were remeasured and reported at fair value through the allowance for loan losses based upon the fair value of the underlying collateral during the reported periods: For the Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 Carrying value of impaired loans before allowance for loan losses $ 5,021 $ 1,337 Specific allowance for loan losses (780) (140) Fair value of impaired loans $ 4,241 $ 1,197 The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods: For the Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to remeasurement $ — $ 1,119 Charge-offs — — Fair value of foreclosed assets $ — $ 1,119 |
Schedule of inputs used for the Level 3 fair value measurement | The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis are as follows: (dollars in thousands) Fair Value Valuation Technique Unobservable Input Discount Ranges Weighted Average Discount September 30, 2020 Impaired loans $ 12,256 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 18.24% Foreclosed assets $ 828 Discounted appraisals Collateral discounts and costs to sell N/A N/A December 31, 2019 Impaired loans $ 9,454 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 25.80% Foreclosed assets $ 1,128 Discounted appraisals Collateral discounts and costs to sell 0% - 36% 2.60% |
Schedule of carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair values of financial instruments as of September 30, 2020 and December 31, 2019, were as follows: (in thousands) Carrying Fair Value Level 1 Level 2 Level 3 September 30, 2020 Financial assets: Cash and due from banks $ 31,422 $ 31,422 $ 31,422 $ — $ — Interest-bearing deposits in other banks 239,466 239,466 239,466 — — Securities AFS 467,744 467,744 — 467,744 — Equity securities 4,032 4,032 4,032 — — Nonmarketable equity securities 3,445 3,445 — 3,445 — Loans HFS 23,358 23,358 — 23,358 — Loans HFI, net of allowance 1,633,080 1,641,936 — — 1,641,936 Accrued interest receivable 6,617 6,617 — — 6,617 Financial liabilities: Deposits 2,193,940 2,198,985 — 2,198,985 — Accrued interest payable 1,805 1,805 — 1,805 — December 31, 2019 Financial assets: Cash and due from banks $ 25,937 $ 25,937 $ 25,937 $ — $ — Interest-bearing deposits in other banks 107,355 107,355 107,355 — — Securities AFS 335,573 335,573 — 335,573 — Equity securities 3,936 3,936 3,936 — — Nonmarketable equity securities 1,350 1,350 — 1,350 — Loans HFS 5,089 5,089 — 5,089 — Loans HFI, net of allowance 1,424,987 1,426,163 — — 1,426,163 Accrued interest receivable 5,251 5,251 — — 5,251 Financial liabilities: Deposits 1,721,120 1,721,286 — 1,721,286 — Accrued interest payable 2,222 2,222 — 2,222 — |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Schedule of compliance with regulatory capital requirements under banking regulations | Capital amounts and ratios for Red River Bank as of September 30, 2020 and December 31, 2019, are presented in the following table: Regulatory Requirements Actual Minimum Minimum Plus CCB (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2020 Total Risk-Based Capital $ 261,840 16.62 % $ 126,031 8.00 % $ 165,415 10.50 % Tier I Risk-Based Capital $ 245,648 15.59 % $ 94,523 6.00 % $ 133,908 8.50 % Common Equity Tier I Capital $ 245,648 15.59 % $ 70,892 4.50 % $ 110,277 7.00 % Tier I Leverage Capital $ 245,648 10.24 % $ 95,933 4.00 % $ 95,933 4.00 % December 31, 2019 Total Risk-Based Capital $ 238,021 16.23 % $ 117,325 8.00 % $ 153,989 10.50 % Tier I Risk-Based Capital $ 224,084 15.28 % $ 87,994 6.00 % $ 124,658 8.50 % Common Equity Tier I Capital $ 224,084 15.28 % $ 65,995 4.50 % $ 102,660 7.00 % Tier I Leverage Capital $ 224,084 11.47 % $ 78,114 4.00 % $ 78,114 4.00 % Capital amounts and ratios for Red River Bancshares, Inc. as of September 30, 2020 and December 31, 2019, are presented in the following table: Actual (dollars in thousands) Amount Ratio September 30, 2020 Total Risk-Based Capital $ 286,324 18.17 % Tier I Risk-Based Capital $ 270,132 17.15 % Common Equity Tier I Capital $ 270,132 17.15 % Tier I Leverage Capital $ 270,132 11.26 % December 31, 2019 Total Risk-Based Capital $ 264,313 18.02 % Tier I Risk-Based Capital $ 250,376 17.07 % Common Equity Tier I Capital $ 250,376 17.07 % Tier I Leverage Capital $ 250,376 12.82 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The computations of basic and diluted earnings per common share for the Company were as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands, except per share amounts) 2020 2019 2020 2019 Numerator: Net income - basic $ 7,285 $ 6,847 $ 20,884 $ 18,081 Net income - diluted $ 7,285 $ 6,847 $ 20,884 $ 18,081 Denominator: Weighted average shares outstanding - basic 7,327,395 7,304,273 7,321,092 6,993,990 Plus: Effect of Director Stock Compensation Program 272 330 1,088 1,529 Plus: Effect of stock options and restricted stock 15,011 35,895 19,567 36,540 Weighted average shares outstanding - diluted 7,342,678 7,340,498 7,341,747 7,032,059 Earnings per common share: Basic $ 0.99 $ 0.94 $ 2.85 $ 2.59 Diluted $ 0.99 $ 0.93 $ 2.84 $ 2.57 |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||||
Purchases | $ 293,503 | $ 109,356 | |||
Sales | $ 6,451 | $ 34,957 | 93,376 | 34,957 | |
Maturities, prepayments, and calls | 75,305 | $ 49,267 | |||
Increase in fair value | $ 8,100 | ||||
Number of positions | security | 34 | 34 | |||
Securities in a loss position as a percent of total AFS securities | 0.08% | 0.08% | |||
Securities pledged to secure public deposits | $ 92,300 | $ 92,300 | $ 89,800 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 459,643 | $ 335,603 |
Gross Unrealized Gains | 8,457 | 1,453 |
Gross Unrealized Losses | (356) | (1,483) |
Fair Value | 467,744 | 335,573 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 278,786 | 236,572 |
Gross Unrealized Gains | 3,995 | 299 |
Gross Unrealized Losses | (268) | (1,200) |
Fair Value | 282,513 | 235,671 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 169,954 | 91,929 |
Gross Unrealized Gains | 4,252 | 1,108 |
Gross Unrealized Losses | (82) | (279) |
Fair Value | 174,124 | 92,758 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,903 | 7,102 |
Gross Unrealized Gains | 210 | 46 |
Gross Unrealized Losses | (6) | (4) |
Fair Value | $ 11,107 | $ 7,144 |
Securities - Schedule of AFS De
Securities - Schedule of AFS Debt Securities, By Maturity Date (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Within one year | $ 6,254 | |
After one year but within five years | 41,179 | |
After five years but within ten years | 51,448 | |
After ten years | 360,762 | |
Amortized Cost | 459,643 | $ 335,603 |
Fair Value | ||
Within one year | 6,281 | |
After one year but within five years | 42,008 | |
After five years but within ten years | 53,043 | |
After ten years | 366,412 | |
Fair Value | $ 467,744 |
Securities - Schedule of Securi
Securities - Schedule of Securities With Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | $ (356) | $ (650) |
Fair Value | 77,697 | 129,171 |
Gross Unrealized Losses | 0 | (833) |
Fair Value | 0 | 79,748 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | (268) | (474) |
Fair Value | 64,059 | 109,416 |
Gross Unrealized Losses | 0 | (726) |
Fair Value | 0 | 70,425 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | (82) | (172) |
Fair Value | 12,644 | 18,735 |
Gross Unrealized Losses | 0 | (107) |
Fair Value | 0 | 9,323 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | (6) | (4) |
Fair Value | 994 | 1,020 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Securities - Schedule of Procee
Securities - Schedule of Proceeds from Sale Of Securities AFS and Their Gains (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 6,451 | $ 34,957 | $ 93,376 | $ 34,957 |
Gross gain | 125 | 185 | 1,441 | 185 |
Gross loss | $ 0 | $ (180) | $ (93) | $ (180) |
Loans and Asset Quality - Total
Loans and Asset Quality - Total Loans Held for Investment by Category and Loans Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment | $ 1,649,272 | $ 1,438,924 |
Loans held for sale | 23,358 | 5,089 |
Real estate | Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment | 567,037 | 531,990 |
Real estate | One-to-four family residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment | 426,758 | 420,020 |
Real estate | Construction and development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment | 129,879 | 132,461 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment | 249,313 | 267,940 |
SBA PPP, net of deferred income | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment | 193,532 | 0 |
Tax-exempt | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment | 59,418 | 56,494 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment | $ 23,335 | $ 30,019 |
Loans and Asset Quality - Sched
Loans and Asset Quality - Schedule of Allowance of Loan Losses By Category (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | $ 13,937 | $ 12,524 |
Provision for Loan Losses | 3,618 | 1,810 |
Loans Charged-off | (1,584) | (1,219) |
Recoveries | 221 | 822 |
Ending Balance | 16,192 | 13,937 |
Real estate | Commercial real estate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 3,454 | 3,081 |
Provision for Loan Losses | 1,135 | 373 |
Loans Charged-off | 0 | 0 |
Recoveries | 0 | 0 |
Ending Balance | 4,589 | 3,454 |
Real estate | One-to-four family residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 3,323 | 3,146 |
Provision for Loan Losses | 705 | 216 |
Loans Charged-off | 0 | (44) |
Recoveries | 8 | 5 |
Ending Balance | 4,036 | 3,323 |
Real estate | Construction and development | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 1,211 | 951 |
Provision for Loan Losses | 188 | 172 |
Loans Charged-off | (14) | 0 |
Recoveries | 1 | 88 |
Ending Balance | 1,386 | 1,211 |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 5,175 | 4,604 |
Provision for Loan Losses | 896 | 850 |
Loans Charged-off | (1,316) | (864) |
Recoveries | 83 | 585 |
Ending Balance | 4,838 | 5,175 |
SBA PPP, net of deferred income | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Provision for Loan Losses | 480 | 0 |
Loans Charged-off | 0 | 0 |
Recoveries | 0 | 0 |
Ending Balance | 480 | 0 |
Tax-exempt | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 334 | 372 |
Provision for Loan Losses | 114 | (38) |
Loans Charged-off | 0 | 0 |
Recoveries | 0 | 0 |
Ending Balance | 448 | 334 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 440 | 370 |
Provision for Loan Losses | 100 | 237 |
Loans Charged-off | (254) | (311) |
Recoveries | 129 | 144 |
Ending Balance | $ 415 | $ 440 |
Loans and Asset Quality - Sch_2
Loans and Asset Quality - Schedule of Allowance for Loan Losses and the Related Recorded Investment in Loans by Category (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for loan losses: | |||
Individually Evaluated for Impairment | $ 2,864 | $ 3,288 | |
Collectively Evaluated for Impairment | 13,328 | 10,649 | |
Loans and Leases Receivable, Allowance | 16,192 | 13,937 | $ 12,524 |
Loans: | |||
Individually Evaluated for Impairment | 15,120 | 12,742 | |
Collectively Evaluated for Impairment | 1,634,152 | 1,426,182 | |
Loans held for investment | 1,649,272 | 1,438,924 | |
Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Loans and Leases Receivable, Allowance | 0 | 0 | |
Loans: | |||
Loans held for investment | 0 | 0 | |
Real estate | Commercial real estate | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 279 | 260 | |
Collectively Evaluated for Impairment | 4,310 | 3,194 | |
Loans and Leases Receivable, Allowance | 4,589 | 3,454 | 3,081 |
Loans: | |||
Individually Evaluated for Impairment | 3,639 | 2,639 | |
Collectively Evaluated for Impairment | 563,398 | 529,351 | |
Loans held for investment | 567,037 | 531,990 | |
Real estate | Commercial real estate | Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Loans and Leases Receivable, Allowance | 0 | 0 | |
Loans: | |||
Loans held for investment | 0 | 0 | |
Real estate | One-to-four family residential | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 41 | 31 | |
Collectively Evaluated for Impairment | 3,995 | 3,292 | |
Loans and Leases Receivable, Allowance | 4,036 | 3,323 | 3,146 |
Loans: | |||
Individually Evaluated for Impairment | 1,333 | 1,193 | |
Collectively Evaluated for Impairment | 425,425 | 418,827 | |
Loans held for investment | 426,758 | 420,020 | |
Real estate | One-to-four family residential | Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Loans and Leases Receivable, Allowance | 0 | 0 | |
Loans: | |||
Loans held for investment | 0 | 0 | |
Real estate | Construction and development | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 0 | 10 | |
Collectively Evaluated for Impairment | 1,386 | 1,201 | |
Loans and Leases Receivable, Allowance | 1,386 | 1,211 | 951 |
Loans: | |||
Individually Evaluated for Impairment | 0 | 38 | |
Collectively Evaluated for Impairment | 129,879 | 132,423 | |
Loans held for investment | 129,879 | 132,461 | |
Real estate | Construction and development | Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Loans and Leases Receivable, Allowance | 0 | 0 | |
Loans: | |||
Loans held for investment | 0 | 0 | |
Commercial and industrial | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 2,432 | 2,916 | |
Collectively Evaluated for Impairment | 2,406 | 2,259 | |
Loans and Leases Receivable, Allowance | 4,838 | 5,175 | 4,604 |
Loans: | |||
Individually Evaluated for Impairment | 10,034 | 8,797 | |
Collectively Evaluated for Impairment | 239,279 | 259,143 | |
Loans held for investment | 249,313 | 267,940 | |
Commercial and industrial | Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Loans and Leases Receivable, Allowance | 0 | 0 | |
Loans: | |||
Loans held for investment | 0 | 0 | |
SBA PPP, net of deferred income | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 0 | 0 | |
Collectively Evaluated for Impairment | 480 | 0 | |
Loans and Leases Receivable, Allowance | 480 | 0 | 0 |
Loans: | |||
Individually Evaluated for Impairment | 0 | 0 | |
Collectively Evaluated for Impairment | 193,532 | 0 | |
Loans held for investment | 193,532 | 0 | |
SBA PPP, net of deferred income | Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Loans and Leases Receivable, Allowance | 0 | 0 | |
Loans: | |||
Loans held for investment | 0 | 0 | |
Tax-exempt | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 0 | 0 | |
Collectively Evaluated for Impairment | 448 | 334 | |
Loans and Leases Receivable, Allowance | 448 | 334 | 372 |
Loans: | |||
Individually Evaluated for Impairment | 0 | 0 | |
Collectively Evaluated for Impairment | 59,418 | 56,494 | |
Loans held for investment | 59,418 | 56,494 | |
Tax-exempt | Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Loans and Leases Receivable, Allowance | 0 | 0 | |
Loans: | |||
Loans held for investment | 0 | 0 | |
Consumer | |||
Allowance for loan losses: | |||
Individually Evaluated for Impairment | 112 | 71 | |
Collectively Evaluated for Impairment | 303 | 369 | |
Loans and Leases Receivable, Allowance | 415 | 440 | $ 370 |
Loans: | |||
Individually Evaluated for Impairment | 114 | 75 | |
Collectively Evaluated for Impairment | 23,221 | 29,944 | |
Loans held for investment | 23,335 | 30,019 | |
Consumer | Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Loans and Leases Receivable, Allowance | 0 | 0 | |
Loans: | |||
Loans held for investment | $ 0 | $ 0 |
Loans and Asset Quality - Summa
Loans and Asset Quality - Summary of Current, Past Due, and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | $ 1,644,564 | $ 1,433,258 |
Nonaccrual | 4,305 | 5,319 |
Loans held for investment | 1,649,272 | 1,438,924 |
30-89 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 321 | 347 |
90 Days or More Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 82 | 0 |
Real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 564,989 | 530,712 |
Nonaccrual | 1,857 | 1,278 |
Loans held for investment | 567,037 | 531,990 |
Real estate | Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 191 | 0 |
Real estate | Commercial real estate | 90 Days or More Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Real estate | One-to-four family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 425,959 | 419,229 |
Nonaccrual | 729 | 607 |
Loans held for investment | 426,758 | 420,020 |
Real estate | One-to-four family residential | 30-89 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 70 | 184 |
Real estate | One-to-four family residential | 90 Days or More Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Real estate | Construction and development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 129,879 | 132,423 |
Nonaccrual | 0 | 38 |
Loans held for investment | 129,879 | 132,461 |
Real estate | Construction and development | 30-89 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Real estate | Construction and development | 90 Days or More Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 247,463 | 264,427 |
Nonaccrual | 1,714 | 3,370 |
Loans held for investment | 249,313 | 267,940 |
Commercial and industrial | 30-89 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 56 | 143 |
Commercial and industrial | 90 Days or More Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 80 | 0 |
SBA PPP, net of deferred income | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 193,532 | 0 |
Nonaccrual | 0 | 0 |
Loans held for investment | 193,532 | 0 |
SBA PPP, net of deferred income | 30-89 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
SBA PPP, net of deferred income | 90 Days or More Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 59,418 | 56,494 |
Nonaccrual | 0 | 0 |
Loans held for investment | 59,418 | 56,494 |
Tax-exempt | 30-89 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Tax-exempt | 90 Days or More Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 23,324 | 29,973 |
Nonaccrual | 5 | 26 |
Loans held for investment | 23,335 | 30,019 |
Consumer | 30-89 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 4 | 20 |
Consumer | 90 Days or More Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | $ 2 | $ 0 |
Loans and Asset Quality - Sch_3
Loans and Asset Quality - Schedule of Loans Impaired (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Unpaid Principal Balance | ||
With no related allowance recorded: | $ 4,422 | $ 4,407 |
With allowance recorded: | 11,387 | 10,150 |
Total impaired loans | 15,809 | 14,557 |
Recorded Investment | ||
With no related allowance recorded: | 3,963 | 3,997 |
With allowance recorded: | 11,157 | 8,745 |
Total impaired loans | 15,120 | 12,742 |
Related Allowance | 2,864 | 3,288 |
Average Recorded Investment | ||
With no related allowance recorded: | 3,887 | 7,611 |
With allowance recorded: | 8,877 | 9,326 |
Total impaired loans | 12,764 | 16,937 |
Real estate | Commercial real estate | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 1,469 | 1,560 |
With allowance recorded: | 2,399 | 1,263 |
Recorded Investment | ||
With no related allowance recorded: | 1,438 | 1,537 |
With allowance recorded: | 2,201 | 1,102 |
Related Allowance | 279 | 260 |
Average Recorded Investment | ||
With no related allowance recorded: | 1,414 | 2,647 |
With allowance recorded: | 1,368 | 1,076 |
Real estate | One-to-four family residential | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 1,120 | 1,040 |
With allowance recorded: | 280 | 216 |
Recorded Investment | ||
With no related allowance recorded: | 1,060 | 984 |
With allowance recorded: | 273 | 209 |
Related Allowance | 41 | 31 |
Average Recorded Investment | ||
With no related allowance recorded: | 1,027 | 1,194 |
With allowance recorded: | 218 | 339 |
Real estate | Construction and development | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 51 |
Recorded Investment | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 38 |
Related Allowance | 0 | 10 |
Average Recorded Investment | ||
With no related allowance recorded: | 0 | 76 |
With allowance recorded: | 10 | 89 |
Commercial and industrial | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 1,831 | 1,805 |
With allowance recorded: | 8,594 | 8,544 |
Recorded Investment | ||
With no related allowance recorded: | 1,463 | 1,474 |
With allowance recorded: | 8,571 | 7,323 |
Related Allowance | 2,432 | 2,916 |
Average Recorded Investment | ||
With no related allowance recorded: | 1,444 | 3,685 |
With allowance recorded: | 7,179 | 7,746 |
SBA PPP, net of deferred income | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 0 |
Recorded Investment | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 0 |
Tax-exempt | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 0 |
Recorded Investment | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
With no related allowance recorded: | 0 | 0 |
With allowance recorded: | 0 | 0 |
Consumer | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 2 | 2 |
With allowance recorded: | 114 | 76 |
Recorded Investment | ||
With no related allowance recorded: | 2 | 2 |
With allowance recorded: | 112 | 73 |
Related Allowance | 112 | 71 |
Average Recorded Investment | ||
With no related allowance recorded: | 2 | 9 |
With allowance recorded: | $ 102 | $ 76 |
Loans and Asset Quality - Narra
Loans and Asset Quality - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Interest income on impaired loans | $ 199,000 | $ 111,000 | $ 361,000 | $ 336,000 | ||
Increase for allowance for loan losses | 16,192,000 | 16,192,000 | $ 13,937,000 | $ 12,524,000 | ||
Defaults on loans | 0 | 0 | ||||
Unfunded Loan Commitment | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Other commitments | 293,100,000 | 293,100,000 | 257,000,000 | |||
Standby Letters of Credit | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Other commitments | $ 9,900,000 | $ 9,900,000 | $ 11,100,000 | |||
TDRs | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Increase for allowance for loan losses | $ 4,000 | $ 4,000 |
Loans and Asset Quality - Sum_2
Loans and Asset Quality - Summary of Current, Past Due, and Nonaccrual TDR Loans (Details) $ in Thousands | Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2019loan |
TDR | ||||
Current | $ 1,377 | $ 1,695 | $ 1,377 | |
Nonaccrual | 1,239 | 3,185 | 1,239 | |
Total TDRs | $ 2,616 | $ 4,880 | $ 2,616 | |
Number of TDR loans | ||||
Current | loan | 7 | 12 | ||
Nonaccrual | loan | 4 | 6 | ||
Total TDRs | loan | 11 | 18 | 0 | 2 |
30-89 Days Past Due | ||||
TDR | ||||
Past Due | $ 0 | $ 0 | $ 0 | |
Number of TDR loans | ||||
Past Due | loan | 0 | 0 | ||
90 Days or More Past Due | ||||
TDR | ||||
Past Due | $ 0 | $ 0 | 0 | |
Number of TDR loans | ||||
Past Due | loan | 0 | 0 | ||
Real estate | Commercial real estate | ||||
TDR | ||||
Current | $ 1,162 | $ 1,361 | 1,162 | |
Nonaccrual | 1,230 | 1,278 | 1,230 | |
Total TDRs | 2,392 | 2,639 | $ 2,392 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 1 | ||
Real estate | Commercial real estate | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Real estate | Commercial real estate | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
Real estate | One-to-four family residential | ||||
TDR | ||||
Current | 215 | 252 | 215 | |
Nonaccrual | 0 | 0 | 0 | |
Total TDRs | 215 | 252 | $ 215 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
Real estate | One-to-four family residential | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Real estate | One-to-four family residential | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
Real estate | Construction and development | ||||
TDR | ||||
Current | 0 | 0 | 0 | |
Nonaccrual | 0 | 38 | 0 | |
Total TDRs | 0 | 38 | $ 0 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
Real estate | Construction and development | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Real estate | Construction and development | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
Commercial and industrial | ||||
TDR | ||||
Current | 0 | 36 | 0 | |
Nonaccrual | 9 | 1,869 | 9 | |
Total TDRs | 9 | 1,905 | $ 9 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 1 | ||
Commercial and industrial | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Commercial and industrial | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
SBA PPP, net of deferred income | ||||
TDR | ||||
Current | 0 | 0 | 0 | |
Nonaccrual | 0 | 0 | 0 | |
Total TDRs | 0 | 0 | $ 0 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
SBA PPP, net of deferred income | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
SBA PPP, net of deferred income | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
Tax-exempt | ||||
TDR | ||||
Current | 0 | 0 | 0 | |
Nonaccrual | 0 | 0 | 0 | |
Total TDRs | 0 | 0 | $ 0 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
Tax-exempt | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Tax-exempt | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | 0 | |
Consumer | ||||
TDR | ||||
Current | 0 | 46 | 0 | |
Nonaccrual | 0 | 0 | 0 | |
Total TDRs | 0 | 46 | $ 0 | |
Number of TDR loans | ||||
Total TDRs | loan | 0 | 0 | ||
Consumer | 30-89 Days Past Due | ||||
TDR | ||||
Past Due | 0 | 0 | $ 0 | |
Consumer | 90 Days or More Past Due | ||||
TDR | ||||
Past Due | $ 0 | $ 0 | $ 0 |
Loans and Asset Quality - Sum_3
Loans and Asset Quality - Summary of Loans Modified as TDRs That Occurred During Period (Details) $ in Thousands | Sep. 30, 2020loan | Dec. 31, 2019loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)loan |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan Count | loan | 11 | 18 | 0 | 2 |
Pre Modification | $ 0 | $ 170 | ||
Post Modification | $ 0 | $ 170 | ||
Real estate | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan Count | loan | 0 | 1 | ||
Pre Modification | $ 0 | $ 166 | ||
Post Modification | $ 0 | $ 166 | ||
Real estate | One-to-four family residential | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 | ||
Real estate | Construction and development | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 | ||
Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan Count | loan | 0 | 1 | ||
Pre Modification | $ 0 | $ 4 | ||
Post Modification | $ 0 | $ 4 | ||
SBA PPP, net of deferred income | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 | ||
Tax-exempt | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 | ||
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan Count | loan | 0 | 0 | ||
Pre Modification | $ 0 | $ 0 | ||
Post Modification | $ 0 | $ 0 |
Loans and Asset Quality - Sum_4
Loans and Asset Quality - Summary of Loans by Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | $ 1,649,272 | $ 1,438,924 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 1,630,977 | 1,397,747 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 1,286 | 28,182 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 17,009 | 12,995 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 567,037 | 531,990 |
Real estate | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 562,169 | 515,926 |
Real estate | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 582 | 14,118 |
Real estate | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 4,286 | 1,946 |
Real estate | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Commercial real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | One-to-four family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 426,758 | 420,020 |
Real estate | One-to-four family residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 424,921 | 416,884 |
Real estate | One-to-four family residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 492 | 2,021 |
Real estate | One-to-four family residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 1,345 | 1,115 |
Real estate | One-to-four family residential | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | One-to-four family residential | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Construction and development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 129,879 | 132,461 |
Real estate | Construction and development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 129,100 | 131,185 |
Real estate | Construction and development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 565 |
Real estate | Construction and development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 779 | 711 |
Real estate | Construction and development | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Construction and development | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 249,313 | 267,940 |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 238,616 | 247,382 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 212 | 11,473 |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 10,485 | 9,085 |
Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Commercial and industrial | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
SBA PPP, net of deferred income | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 193,532 | 0 |
SBA PPP, net of deferred income | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 193,532 | 0 |
SBA PPP, net of deferred income | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
SBA PPP, net of deferred income | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
SBA PPP, net of deferred income | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
SBA PPP, net of deferred income | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 59,418 | 56,494 |
Tax-exempt | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 59,418 | 56,494 |
Tax-exempt | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Tax-exempt | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Tax-exempt | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Tax-exempt | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 23,335 | 30,019 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 23,221 | 29,876 |
Consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 5 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 114 | 138 |
Consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | 0 | 0 |
Consumer | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment | $ 0 | $ 0 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Deposits | $ 2,193,940 | $ 1,721,120 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 923,286 | $ 584,915 |
Interest-bearing deposits: | ||
NOW accounts | 304,616 | 331,374 |
Money market accounts | 498,293 | 367,689 |
Savings accounts | 135,396 | 103,984 |
Time deposits less than $100,000 | 108,021 | 110,636 |
Time deposits $100,000 to $250,000 | 135,935 | 131,957 |
Time deposits > $250,000 | 88,393 | 90,565 |
Total interest-bearing deposits | 1,270,654 | 1,136,205 |
Total Deposits | $ 2,193,940 | $ 1,721,120 |
Other Borrowed Funds (Details)
Other Borrowed Funds (Details) - Line of Credit - USD ($) $ in Millions | May 19, 2020 | Apr. 15, 2020 |
Line of Credit Facility [Line Items] | ||
Proceeds from borrowing | $ 50 | |
Debt instrument, term | 90 days | |
Interest rate | 0.35% | |
Repayments of debt | $ 50 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Lease expense | $ 137 | $ 137 | $ 412 | $ 412 |
Cash paid for amounts included in measurement of lease liabilities for operating leases | $ 390 | $ 375 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 3 years | 3 years | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 5 years | 5 years | ||
Land | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of contracts | contract | 6 |
Leases - Operating Lease Inform
Leases - Operating Lease Information (Details) | Sep. 30, 2020 |
Leases [Abstract] | |
Weighted average remaining operating lease term | 9 years 7 months 6 days |
Weighted average operating lease discount rate | 3.40% |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
3 months remaining in 2020 | $ 130 | |
2021 | 529 | |
2022 | 537 | |
2023 | 539 | |
2024 | 539 | |
Thereafter | 2,815 | |
Total lease payments | 5,089 | |
Less: Imputed interest | (762) | |
Present value of lease liabilities | $ 4,327 | $ 4,603 |
Fair Value - Assets Measured on
Fair Value - Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 467,744 | $ 335,573 |
Equity securities | 4,032 | 3,936 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Securities AFS | 0 | 0 |
Equity securities | 4,032 | 3,936 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 23,358 | 5,089 |
Securities AFS | 467,744 | 335,573 |
Equity securities | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Securities AFS | 0 | 0 |
Equity securities | 0 | 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 23,358 | 5,089 |
Equity securities | 4,032 | 3,936 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Equity securities | 4,032 | 3,936 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 23,358 | 5,089 |
Equity securities | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 282,513 | 235,671 |
Mortgage-backed securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 282,513 | 235,671 |
Mortgage-backed securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Mortgage-backed securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 282,513 | 235,671 |
Mortgage-backed securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 174,124 | 92,758 |
Municipal bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 174,124 | 92,758 |
Municipal bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Municipal bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 174,124 | 92,758 |
Municipal bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 11,107 | 7,144 |
U.S. agency securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 11,107 | 7,144 |
U.S. agency securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
U.S. agency securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 11,107 | 7,144 |
U.S. agency securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 0 | $ 0 |
Fair Value - Assets Measured _2
Fair Value - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Specific allowance for loan losses | $ (16,192) | $ (13,937) | $ (12,524) | |
Nonrecurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of impaired loans | 12,256 | 9,454 | ||
Foreclosed assets remeasured at initial recognition: | ||||
Fair value of foreclosed assets | 828 | $ 1,128 | ||
Remeasured Loans | Nonrecurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying value of impaired loans before allowance for loan losses | 5,021 | $ 1,337 | ||
Specific allowance for loan losses | (780) | (140) | ||
Fair value of impaired loans | 4,241 | 1,197 | ||
Foreclosed assets remeasured at initial recognition: | ||||
Carrying value of foreclosed assets prior to remeasurement | 0 | 1,119 | ||
Charge-offs | 0 | 0 | ||
Fair value of foreclosed assets | $ 0 | $ 1,119 |
Fair Value - Unobservable Input
Fair Value - Unobservable Inputs Used for the Level 3 (Details) $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Minimum | Discounted appraisals | Collateral discounts and costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 0 | 0 |
Foreclosed assets | 0 | |
Maximum | Discounted appraisals | Collateral discounts and costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 1 | 1 |
Foreclosed assets | 0.36 | |
Weighted Average Discount | Discounted appraisals | Collateral discounts and costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 0.1824 | 0.2580 |
Foreclosed assets | 0.0260 | |
Nonrecurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 12,256 | $ 9,454 |
Foreclosed assets | $ 828 | $ 1,128 |
Fair Value - Carrying Amounts a
Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Securities AFS | $ 467,744 | $ 335,573 |
Equity securities | 4,032 | 3,936 |
Nonmarketable equity securities | 3,445 | 1,350 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 31,422 | 25,937 |
Interest-bearing deposits in other banks | 239,466 | 107,355 |
Securities AFS | 0 | 0 |
Equity securities | 4,032 | 3,936 |
Nonmarketable equity securities | 0 | 0 |
Loans HFS | 0 | 0 |
Loans HFI, net of allowance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Securities AFS | 467,744 | 335,573 |
Equity securities | 0 | 0 |
Nonmarketable equity securities | 3,445 | 1,350 |
Loans HFS | 23,358 | 5,089 |
Loans HFI, net of allowance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 2,198,985 | 1,721,286 |
Accrued interest payable | 1,805 | 2,222 |
Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Equity securities | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Loans HFS | 0 | 0 |
Loans HFI, net of allowance | 1,641,936 | 1,426,163 |
Accrued interest receivable | 6,617 | 5,251 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 31,422 | 25,937 |
Interest-bearing deposits in other banks | 239,466 | 107,355 |
Securities AFS | 467,744 | 335,573 |
Equity securities | 4,032 | 3,936 |
Nonmarketable equity securities | 3,445 | 1,350 |
Loans HFS | 23,358 | 5,089 |
Loans HFI, net of allowance | 1,633,080 | 1,424,987 |
Accrued interest receivable | 6,617 | 5,251 |
Financial liabilities: | ||
Deposits | 2,193,940 | 1,721,120 |
Accrued interest payable | 1,805 | 2,222 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 31,422 | 25,937 |
Interest-bearing deposits in other banks | 239,466 | 107,355 |
Securities AFS | 467,744 | 335,573 |
Equity securities | 4,032 | 3,936 |
Nonmarketable equity securities | 3,445 | 1,350 |
Loans HFS | 23,358 | 5,089 |
Loans HFI, net of allowance | 1,641,936 | 1,426,163 |
Accrued interest receivable | 6,617 | 5,251 |
Financial liabilities: | ||
Deposits | 2,198,985 | 1,721,286 |
Accrued interest payable | $ 1,805 | $ 2,222 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Schedule of Regulatory Requirements (Details) $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Red River Bank | ||
Total Risk-Based Capital | ||
Actual Amount | $ 261,840 | $ 238,021 |
Actual Ratio | 0.1662 | 0.1623 |
Regulatory Requirements, Minimum, Amount | $ 126,031 | $ 117,325 |
Regulatory Requirements, Minimum, Ratio | 0.0800 | 0.0800 |
Regulatory Requirements, Minimum Plus CCB, Amount | $ 165,415 | $ 153,989 |
Regulatory Requirements, Minimum Plus CCB, Ratio | 0.1050 | 0.1050 |
Tier I Risk-Based Capital | ||
Actual Amount | $ 245,648 | $ 224,084 |
Actual Ratio | 0.1559 | 0.1528 |
Regulatory Requirements, Minimum, Amount | $ 94,523 | $ 87,994 |
Regulatory Requirements, Minimum, Ratio | 0.0600 | 0.0600 |
Regulatory Requirements, Minimum Plus CCB, Amount | $ 133,908 | $ 124,658 |
Regulatory Requirements, Minimum Plus CCB, Ratio | 0.0850 | 0.0850 |
Common Equity Tier I Capital | ||
Actual Amount | $ 245,648 | $ 224,084 |
Actual Ratio | 0.1559 | 0.1528 |
Regulatory Requirements, Minimum, Amount | $ 70,892 | $ 65,995 |
Regulatory Requirements, Minimum, Ratio | 0.0450 | 0.0450 |
Regulatory Requirements, Minimum Plus CCB, Amount | $ 110,277 | $ 102,660 |
Regulatory Requirements, Minimum Plus CCB, Ratio | 0.0700 | 0.0700 |
Tier I Leverage Capital | ||
Actual Amount | $ 245,648 | $ 224,084 |
Actual Ratio | 0.1024 | 0.1147 |
Regulatory Requirements, Minimum, Amount | $ 95,933 | $ 78,114 |
Regulatory Requirements, Minimum, Ratio | 0.0400 | 0.0400 |
Regulatory Requirements, Minimum Plus CCB, Amount | $ 95,933 | $ 78,114 |
Regulatory Requirements, Minimum Plus CCB, Ratio | 0.0400 | 0.0400 |
Red River Bancshares, Inc. | ||
Total Risk-Based Capital | ||
Actual Amount | $ 286,324 | $ 264,313 |
Actual Ratio | 0.1817 | 0.1802 |
Tier I Risk-Based Capital | ||
Actual Amount | $ 270,132 | $ 250,376 |
Actual Ratio | 0.1715 | 0.1707 |
Common Equity Tier I Capital | ||
Actual Amount | $ 270,132 | $ 250,376 |
Actual Ratio | 0.1715 | 0.1707 |
Tier I Leverage Capital | ||
Actual Amount | $ 270,132 | $ 250,376 |
Actual Ratio | 0.1126 | 0.1282 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||
Net income - basic | $ 7,285 | $ 6,847 | $ 20,884 | $ 18,081 |
Net income - diluted | $ 7,285 | $ 6,847 | $ 20,884 | $ 18,081 |
Denominator: | ||||
Weighted average shares outstanding - basic (in shares) | 7,327,395 | 7,304,273 | 7,321,092 | 6,993,990 |
Weighted average shares outstanding - diluted (in shares) | 7,342,678 | 7,340,498 | 7,341,747 | 7,032,059 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.99 | $ 0.94 | $ 2.85 | $ 2.59 |
Diluted (in dollars per share) | $ 0.99 | $ 0.93 | $ 2.84 | $ 2.57 |
Plus: Effect of Director Stock Compensation Program | ||||
Denominator: | ||||
Effect of dilutive securities (in shares) | 272 | 330 | 1,088 | 1,529 |
Plus: Effect of stock options and restricted stock | ||||
Denominator: | ||||
Effect of dilutive securities (in shares) | 15,011 | 35,895 | 19,567 | 36,540 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Aug. 27, 2020 | |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $ 3,000,000 | |
Stock repurchased (in shares) | 2,824 | |
Stock repurchased value | $ 122,000 |