Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 31, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | PEOPLES BANCORP OF NORTH CAROLINA, INC. | |
Entity Central Index Key | 0001093672 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 5,641,030 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-27205 | |
Entity Incorporation State Country Code | NC | |
Entity Tax Identification Number | 56-2132396 | |
Entity Interactive Data Current | Yes | |
Entity Address Address Line 1 | 518 West C Street | |
Entity Address City Or Town | Newton | |
Entity Address Postal Zip Code | 28658 | |
City Area Code | 828 | |
Local Phone Number | 464-5620 | |
Entity Address State Or Province | NC |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Cash and due from banks, including reserve requirements of $0 at both 6/30/22 and 12/31/21 | $ 47,953 | $ 44,711 |
Interest-bearing deposits | 175,754 | 232,788 |
Cash and cash equivalents | 223,707 | 277,499 |
Investment securities available for sale | 426,804 | 406,549 |
Other investments | 2,791 | 3,668 |
Total securities | 429,595 | 410,217 |
Mortgage loans held for sale | 1,288 | 3,637 |
Loans | 959,473 | 884,869 |
Less allowance for loan losses | (9,789) | (9,355) |
Net loans | 949,684 | 875,514 |
Premises and equipment, net | 16,001 | 16,104 |
Cash surrender value of life insurance | 17,500 | 17,365 |
Right of use lease asset | 5,969 | 4,612 |
Accrued interest receivable and other assets | 33,151 | 19,245 |
Total assets | 1,676,895 | 1,624,193 |
Deposits: | ||
Noninterest-bearing demand | 559,163 | 514,319 |
Interest-bearing demand, MMDA & savings | 833,094 | 797,179 |
Time, $250,000 or more | 30,856 | 26,333 |
Other time | 70,857 | 74,917 |
Total deposits | 1,493,970 | 1,412,748 |
Securities sold under agreements to repurchase | 37,146 | 37,094 |
Junior subordinated debentures | 15,464 | 15,464 |
Lease liability | 6,043 | 4,677 |
Accrued interest payable and other liabilities | 11,866 | 11,841 |
Total liabilities | 1,564,489 | 1,481,824 |
Shareholders' equity: | ||
Preferred stock, no par value; authorized 5,000,000 shares; no shares issued and outstanding | 0 | 0 |
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,641,030 shares at June 30, 2022 and 5,661,569 shares at December 31, 2021 | 52,752 | 53,305 |
Common stock held by deferred compensation trust, at cost; 165,984 shares at June 30, 2022 and 162,193 shares at December 31, 2021 Deferred compensation | (2,099) | (1,992) |
Deferred compensation | 2,099 | 1,992 |
Retained earnings | 92,741 | 88,968 |
Accumulated other comprehensive income (loss) | (33,087) | 96 |
Total shareholders' equity | 112,406 | 142,369 |
Total liabilities and shareholders' equity | $ 1,676,895 | $ 1,624,193 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Time | $ 250,000 | $ 0 |
Common Stock Held By Deferred Compensation Trust | $ 165,984 | $ 162,193 |
Preferred Stock, Stated Value (in Dollars Per Share) | $ 0 | $ 0 |
Preferred Stock, Shares Authorized (in Shares) | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued (in Shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in Shares) | 0 | 0 |
Common Stock, Par Value (in Dollars Per Share) | $ 0 | $ 0 |
Common Stock, Shares Authorized (in Shares) | 20,000,000 | 20,000,000 |
Common Stock, Shares Issued (in Shares) | 5,641,030 | 5,661,569 |
Common Stock, Shares Outstanding (in Shares) | 5,641,030 | 5,661,569 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income: | ||||
Interest and fees on loans | $ 9,934 | $ 11,003 | $ 19,676 | $ 21,667 |
Interest on due from banks | 442 | 48 | 553 | 83 |
Interest on investment securities: | ||||
U.S. Government sponsored enterprises | 585 | 682 | 1,096 | 1,220 |
State and political subdivisions | 1,010 | 758 | 1,953 | 1,397 |
Other | 21 | 26 | 43 | 72 |
Total interest income | 11,992 | 12,517 | 23,321 | 24,439 |
Interest expense: | ||||
NOW, MMDA & savings deposits | 366 | 543 | 769 | 1,040 |
Time deposits | 141 | 191 | 287 | 403 |
Junior subordinated debentures | 103 | 71 | 178 | 142 |
Other | 34 | 37 | 73 | 72 |
Total interest expense | 644 | 842 | 1,307 | 1,657 |
Net interest income | 11,348 | 11,675 | 22,014 | 22,782 |
Provision for (recovery of) loan losses | 410 | (226) | 481 | (681) |
Net interest income after provision for loan losses | 10,938 | 11,901 | 21,533 | 23,463 |
Non-interest income: | ||||
Service charges | 1,374 | 910 | 2,542 | 1,836 |
Other service charges and fees | 178 | 171 | 371 | 383 |
Mortgage banking income | 99 | 723 | 299 | 1,593 |
Insurance and brokerage commissions | 256 | 238 | 496 | 498 |
Appraisal management fee income | 3,439 | 2,005 | 6,945 | 3,821 |
Gain on sale of other real estate | 0 | 21 | 0 | 21 |
Miscellaneous | 1,982 | 1,972 | 3,721 | 3,761 |
Total non-interest income | 7,328 | 6,040 | 14,374 | 11,913 |
Non-interest expense: | ||||
Salaries and employee benefits | 6,443 | 5,666 | 12,292 | 11,849 |
Occupancy | 1,932 | 1,939 | 3,848 | 3,892 |
Professional fees | 455 | 435 | 828 | 772 |
Advertising | 169 | 154 | 334 | 297 |
Debit card expense | 322 | 264 | 598 | 496 |
FDIC Insurance | 115 | 164 | 225 | 196 |
Appraisal management fee expense | 2,757 | 1,634 | 5,529 | 3,090 |
Miscellaneous | 2,050 | 1,876 | 3,930 | 3,808 |
Total non-interest expense | 14,243 | 12,132 | 27,584 | 24,400 |
Earnings before income taxes | 4,023 | 5,809 | 8,323 | 10,976 |
Income tax expense | 806 | 1,194 | 1,654 | 2,240 |
Net earnings | $ 3,217 | $ 4,615 | $ 6,669 | $ 8,736 |
Basic net earnings per share | $ 0.59 | $ 0.82 | $ 1.21 | $ 1.55 |
Diluted net earnings per share | 0.57 | 0.80 | 1.18 | 1.51 |
Cash dividends declared per share | $ 0.18 | $ 0.16 | $ 0.51 | $ 0.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net earnings | $ 3,217 | $ 4,615 | $ 6,669 | $ 8,736 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) on securities available for sale | (19,268) | (2,155) | (43,081) | (1,870) |
Income tax expense (benefit) related to other comprehensive income: | ||||
Unrealized holding gains (losses) on securities available for sale | (4,427) | 495 | (9,898) | (430) |
Total other comprehensive income (loss), net of tax | (14,841) | 1,660 | (33,183) | (1,440) |
Total comprehensive income (loss) | $ (11,624) | $ 6,275 | $ (26,514) | $ 7,296 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Retained Earnings (Accumulated Deficit) | Deferred Compensation | Common Stock Held By Deferred Compensation Trust | Accumulated other comprehensive loss | Common Stock |
Balance, share at Dec. 31, 2020 | 5,787,504 | |||||
Balance, amount at Dec. 31, 2020 | $ 139,899 | $ 77,628 | $ 1,796 | $ (1,796) | $ 5,400 | $ 56,871 |
Common stock repurchase | 0 | 0 | 0 | 0 | 0 | 0 |
Cash dividends declared on common stock | (930) | (930) | 0 | 0 | 0 | $ 0 |
Restricted stock units exercised,Share | 1,662 | |||||
Restricted stock units exercised,Amount | 39 | 0 | 0 | 0 | 0 | $ 39 |
Equity incentive plan, net | 0 | 0 | 53 | (53) | 0 | 0 |
Net earnings | 4,121 | 4,121 | 0 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | (3,100) | 0 | 0 | 0 | (3,100) | $ 0 |
Balance,share at Mar. 31, 2021 | 5,789,166 | |||||
Balance,amount at Mar. 31, 2021 | 140,029 | 80,819 | 1,849 | (1,849) | 2,300 | $ 56,910 |
Cash dividends declared on common stock | (930) | (930) | 0 | 0 | 0 | 0 |
Equity incentive plan, net | 0 | 0 | 52 | (52) | 0 | 0 |
Net earnings | 4,615 | 4,615 | 0 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | 1,660 | 0 | 0 | 0 | 1,660 | $ 0 |
Balance,share at Jun. 30, 2021 | 5,789,166 | |||||
Balance,amount at Jun. 30, 2021 | 145,374 | 84,504 | 1,901 | (1,901) | 3,960 | $ 56,910 |
Balance, share at Dec. 31, 2021 | 5,661,569 | |||||
Balance, amount at Dec. 31, 2021 | 142,369 | 88,968 | 1,992 | (1,992) | 96 | $ 53,305 |
Common stock repurchase | (199) | 0 | 0 | 0 | 0 | (199) |
Cash dividends declared on common stock | (1,877) | (1,877) | 0 | 0 | 0 | $ 0 |
Restricted stock units exercised,Share | 1,461 | |||||
Restricted stock units exercised,Amount | 41 | 0 | 0 | 0 | 0 | $ 41 |
Equity incentive plan, net | 0 | 0 | 50 | (50) | 0 | 0 |
Net earnings | 3,452 | 3,452 | 0 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | (18,342) | 0 | 0 | 0 | (18,342) | $ 0 |
Common stock repurchase,share | (7,000) | |||||
Balance,share at Mar. 31, 2022 | 5,656,030 | |||||
Balance,amount at Mar. 31, 2022 | 125,444 | 90,543 | 2,042 | (2,042) | (18,246) | $ 53,147 |
Common stock repurchase | (395) | 0 | 0 | 0 | 0 | (395) |
Cash dividends declared on common stock | (1,019) | (1,019) | 0 | 0 | 0 | 0 |
Equity incentive plan, net | 0 | 0 | 57 | (57) | 0 | 0 |
Net earnings | 3,217 | 3,217 | 0 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | (14,841) | 0 | 0 | 0 | (14,841) | $ 0 |
Common stock repurchase,share | (15,000) | |||||
Balance,share at Jun. 30, 2022 | 5,641,030 | |||||
Balance,amount at Jun. 30, 2022 | $ 112,406 | $ 92,741 | $ 2,099 | $ (2,099) | $ (33,087) | $ 52,752 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net earnings | $ 6,669 | $ 8,736 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 3,505 | 2,549 |
Provision for (recovery of) loan losses | 481 | (681) |
Deferred income taxes | (21) | (18) |
Gain on sale of other real estate | 0 | (21) |
Restricted stock expense | (83) | (100) |
Proceeds from sales of mortgage loans held for sale | 16,428 | 54,006 |
Origination of mortgage loans held for sale | (14,079) | (50,368) |
Change in: | ||
Cash surrender value of life insurance | (200) | (196) |
Right of use lease asset | 369 | 406 |
Other assets | (3,946) | 92 |
Lease liability | (360) | (398) |
Other liabilities | 108 | 2,405 |
Net cash provided by operating activities | 8,871 | 16,412 |
Cash flows from investing activities: | ||
Purchases of investment securities available for sale | (96,357) | (141,780) |
Proceeds from sales, calls and maturities of investment securities available for sale | 7,870 | 5,300 |
Proceeds from paydowns of investment securities available for sale | 22,840 | 11,073 |
Proceeds from paydowns on other investments | 982 | 88 |
Redemptions (purchases) of FHLB stock | (105) | 331 |
Net change in loans | (74,651) | 60,339 |
Purchases of premises and equipment | (1,091) | (339) |
Proceeds from sale of other real estate and repossessions | 0 | 149 |
Proceeds from bank owned life insurance | 65 | 0 |
Net cash used by investing activities | (140,447) | (64,839) |
Cash flows from financing activities: | ||
Net change in deposits | 81,222 | 170,968 |
Net change in securities sold under agreement to repurchase | 52 | 5,048 |
Common stock repurchased | (594) | 0 |
Cash dividends paid on common stock | (2,896) | (1,860) |
Net cash provided by financing activities | 77,784 | 174,156 |
Net change in cash and cash equivalents | (53,792) | 125,729 |
Cash and cash equivalents at beginning of period | 277,499 | 161,580 |
Cash and cash equivalents at end of period | 223,707 | 287,309 |
Cash paid during the period for: | ||
Interest | 1,293 | 1,653 |
Income taxes | 2,319 | 2,000 |
Noncash investing and financing activities: | ||
Change in unrealized gain on investment securities available for sale, net | (33,183) | (1,440) |
Issuance of accrued restricted stock units | 41 | 39 |
Transfer of premises and equipment to other assets held for sale | 0 | 408 |
Initial recognition of lease right-of-use asset and lease liability | $ 1,726 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
1. Summary Of Significant Accounting Policies | (1) Summary of Significant Accounting Policies The Consolidated Financial Statements include the financial statements of Peoples Bancorp of North Carolina, Inc. (the “Company”) and its wholly owned subsidiary, Peoples Bank (the “Bank”), along with the Bank’s wholly owned subsidiaries, Peoples Investment Services, Inc. (“PIS”), Real Estate Advisory Services, Inc. (“REAS”), Community Bank Real Estate Solutions, LLC (“CBRES”) and PB Real Estate Holdings, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. In June 2006, the Company formed a wholly owned Delaware statutory trust, PEBK Capital Trust II (“PEBK Trust II”), to facilitate the issuance of $20.6 million of trust preferred securities. PEBK Trust II is not included in the Consolidated Financial Statements. The Bank operates three banking offices focused on the Latino population that were formerly operated as a separate division of the Bank under the name Banco de la Gente (“Banco”). These offices, which offer the same banking services as our other branches offer, now operate under the same name as our other offices; however, we continue to separately categorize mortgage loans originated from these offices. The Consolidated Financial Statements in this report (other than the Consolidated Balance Sheet at December 31, 2021) are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States (“GAAP”). Actual results could differ from those estimates. The Company’s accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition. Many of the Company’s accounting policies require significant judgment regarding valuation of assets and liabilities and/or significant interpretation of the specific accounting guidance. A description of the Company’s significant accounting policies can be found in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2021 Annual Report to Shareholders which is Appendix A to the Proxy Statement for the 2022 Annual Meeting of Shareholders. Recent Accounting Pronouncements The following table provides a summary of Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has not adopted as of June 30, 2022, which may impact the Company’s financial statements. Recently Issued Accounting Guidance Not Yet Adopted ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2016-13: Measurement of Credit Losses on Financial Instruments Provides guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. See ASU 2019-10 below. The Company will apply this guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company is still evaluating the impact of this guidance on its consolidated financial statements. The Company has formed a Current Expected Credit Losses (“CECL”) committee and implemented a model from a third-party vendor for running CECL calculations. The Company is currently developing CECL model assumptions and comparing results to current allowance for loan loss calculations. The Company plans to run parallel calculations leading up to the effective date of this guidance to ensure it is prepared for implementation by the effective date. In addition to the Company’s allowance for loan losses, it will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses Aligns the implementation date of the topic for annual financial statements of nonpublic companies with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the topic, but rather, should be accounted for in accordance with the leases topic. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Addresses unintended issues accountants flagged when implementing ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, ASU 2016-13, Measurement of Credit Losses on Financial Instruments, and ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-05: Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief Guidance to provide entities with an option to irrevocably elect the fair value option, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-10: Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Guidance to defer the effective dates for private companies, not-for-profit organizations, and certain smaller reporting companies applying standards on current expected credit losses (CECL), leases and hedging. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2019-11: Codification Improvements to Topic 326, Financial Instruments—Credit Losses Guidance that addresses issues raised by stakeholders during the implementation of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect a variety of Topics in the ASC. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2020-03: Codification Improvements to Financial Instruments Guidance to clarify that the contractual term of a net investment in a lease, determined in accordance with the leases standard, should be the contractual term used to measure expected credit losses under ASC 326. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Guidance that provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Therefore, it will be in effect for a limited time through December 31, 2022. March 12, 2020 through December 31, 2022 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2022-02: Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Eliminates the guidance on troubled debt restructurings (TDRs) for creditors in ASC 310-40 2 and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures. Reclassification Certain amounts in the 2021 Consolidated Financial Statements have been reclassified to conform to the 2022 presentation. These reclassifications did not have any impact on shareholders’ equity or net earnings. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investment Securities | |
2. Investment Securities | (2) Investment Securities Investment securities available for sale at June 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S Treasuries $ 10,940 - 882 10,058 U.S. Government sponsored enterprises 13,192 - 499 12,693 Mortgage-backed securities 263,904 538 16,243 248,199 State and political subdivisions 181,722 91 25,959 155,854 Total $ 469,758 629 43,583 426,804 (Dollars in thousands) December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S Treasuries $ 7,964 - 75 7,889 U.S. Government sponsored enterprises 14,252 200 185 14,267 Mortgage-backed securities 218,402 1,769 3,019 217,152 State and political subdivisions 165,804 3,694 2,257 167,241 Total $ 406,422 5,663 5,536 406,549 The current fair value and associated unrealized losses on investments in securities with unrealized losses at June 30, 2022 and December 31, 2021 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position. (Dollars in thousands) June 30, 2022 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 10,058 882 - - 10,058 882 U.S. Government sponsored enterprises 5,261 337 7,432 162 12,693 499 Mortgage-backed securities 179,160 12,653 34,152 3,590 213,312 16,243 State and political subdivisions 129,621 21,403 15,128 4,556 144,749 25,959 Total $ 324,100 35,275 56,712 8,308 380,812 43,583 (Dollars in thousands) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 7,889 75 - - 7,889 75 U.S. Government sponsored enterprises 5,232 15 3,263 170 8,495 185 Mortgage-backed securities 131,483 2,477 19,632 542 151,115 3,019 State and political subdivisions 80,076 1,981 5,922 276 85,998 2,257 Total $ 224,680 4,548 28,817 988 253,497 5,536 At June 30, 2022, unrealized losses in the investment securities portfolio relating to debt securities totaled $43.6 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the June 30, 2022 tables above, all three U.S. Treasury securities, 143 out of 164 securities issued by state and political subdivisions and 104 out of 124 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses. These unrealized losses are considered temporary because of the acceptable financial condition and results of operations of the entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed. At December 31, 2021, unrealized losses in the investment securities portfolio relating to debt securities totaled $5.5 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the December 31, 2021 tables above, both of the U.S. Treasury securities, 70 of the 146 securities issued by state and political subdivisions contained unrealized losses and 54 of the 99 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses. These unrealized losses are considered temporary because of the acceptable financial condition and results of operations of the entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed. The amortized cost and estimated fair value of investment securities available for sale at June 30, 2022, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2022 (Dollars in thousands) Amortized Cost Fair Value Due within one year $ 1,413 1,419 Due from one to five years 9,605 9,529 Due from five to ten years 74,859 68,680 Due after ten years 119,977 98,977 Mortgage-backed securities 263,904 248,199 Total $ 469,758 426,804 No securities available for sale were sold during the three and six months ended June 30, 2022 and 2021. Securities with a fair value of approximately $98.5 million and $98.6 million at June 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits and for other purposes as required by law. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2022 | |
Loans | |
3. Loans | (3) Loans Major classifications of loans at June 30, 2022 and December 31, 2021 are summarized as follows: (Dollars in thousands) June 30, 2022 December 31, 2021 Real estate loans: Construction and land development $ 103,241 95,760 Single-family residential 292,685 266,111 Single-family residential - Banco de la Gente non-traditional 21,378 23,147 Commercial 386,368 337,841 Multifamily and farmland 62,687 58,366 Total real estate loans 866,359 781,225 Loans not secured by real estate: Commercial loans 70,691 91,172 Farm loans 1,006 796 Consumer loans 6,284 6,436 All other loans 15,133 5,240 Total loans 959,473 884,869 Less allowance for loan losses (9,789 ) (9,355 ) Total net loans $ 949,684 875,514 The Bank makes loans and extensions of credit primarily within the Catawba Valley region of North Carolina, which encompasses Catawba, Alexander, Iredell and Lincoln counties and also in Mecklenburg, Wake, Rowan and Forsyth counties of North Carolina. Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate, the value of which is dependent upon the real estate market. Risk characteristics of the major components of the Bank’s loan portfolio are discussed below: · Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral. · Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans. · Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. These loans also involve greater risk because they are generally not fully amortizing over the loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property. · Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business. · Multifamily and farmland loans – Decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans. Loans are considered past due if the required principal and interest payments have not been received within 30 days of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Generally, a loan is placed on non-accrual status when it is over 90 days past due and there is reasonable doubt that all principal will be collected. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following tables present an age analysis of past due loans, by loan type, as of June 30, 2022 and December 31, 2021: June 30, 2022 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 43 - 43 103,198 103,241 - Single-family residential 1,009 370 1,379 291,306 292,685 - Single-family residential - Banco de la Gente non-traditional 514 171 685 20,693 21,378 - Commercial 250 - 250 386,118 386,368 - Multifamily and farmland - - - 62,687 62,687 - Total real estate loans 1,816 541 2,357 864,002 866,359 - Loans not secured by real estate: Commercial loans 99 - 99 70,592 70,691 - Farm loans - - - 1,006 1,006 - Consumer loans 123 - 123 6,161 6,284 - All other loans 7 - 7 15,126 15,133 - Total loans $ 2,045 541 2,586 956,887 959,473 - December 31, 2021 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ - - - 95,760 95,760 - Single-family residential 2,323 634 2,957 263,154 266,111 - Single-family residential - Banco de la Gente non-traditional 2,593 112 2,705 20,442 23,147 - Commercial 488 - 488 337,353 337,841 - Multifamily and farmland - - - 58,366 58,366 - Total real estate loans 5,404 746 6,150 775,075 781,225 - Loans not secured by real estate: Commercial loans 43 - 43 91,129 91,172 - Farm loans - - - 796 796 - Consumer loans 38 - 38 6,398 6,436 - All other loans - - - 5,240 5,240 - Total loans $ 5,485 746 6,231 878,638 884,869 - The following table presents non-accrual loans as of June 30, 2022 and December 31, 2021: (Dollars in thousands) June 30, 2022 December 31, 2021 Real estate loans: Construction and land development $ - - Single-family residential 1,914 1,642 Single-family residential - Banco de la Gente non-traditional 1,416 1,232 Commercial 137 200 Multifamily and farmland 98 105 Total real estate loans 3,565 3,179 Loans not secured by real estate: Commercial loans - 49 Consumer loans 21 2 Total $ 3,586 3,230 At each reporting period, the Bank determines which loans are impaired. Accordingly, the Bank’s impaired loans are reported at their estimated fair value on a non-recurring basis. An allowance for each impaired loan that is collateral-dependent is calculated based on the fair value of its collateral less estimated selling costs. The fair value of the collateral is based on appraisals performed by REAS, a subsidiary of the Bank. REAS is staffed by certified appraisers that also perform appraisals for other companies. Factors, including the assumptions and techniques utilized by the appraiser, are considered by management. If the recorded investment in the impaired loan exceeds the measure of fair value of the collateral, a valuation allowance is recorded as a component of the allowance for loan losses. An allowance for each impaired loan that is not collateral dependent is calculated based on the present value of projected cash flows. If the recorded investment in the impaired loan exceeds the present value of projected cash flows, a valuation allowance is recorded as a component of the allowance for loan losses. Impaired loans under $250,000 are not individually evaluated for impairment with the exception of the Bank’s Troubled Debt Restructurings (“TDR”) loans in the residential mortgage loan portfolio, which are individually evaluated for impairment. Impaired loans were $16.5 million, $18.3 million and $19.7 million at June 30, 2022, December 31, 2021 and June 30, 2021, respectively. Interest income recognized on accruing impaired loans was $433,000, $1.0 million, and $536,000 for the six months ended June 30, 2022, the year ended December 31, 2021 and the six months ended June 30, 2021, respectively. Interest income recognized on accruing impaired loans was $217,000 and $253,000 for the three months ended June 30, 2022 and the three months ended June 30, 2021, respectively. No interest income is recognized on non-accrual impaired loans subsequent to their classification as non-accrual. The following table presents impaired loans as of June 30, 2022: June 30, 2022 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Real estate loans: Construction and land development $ 62 - 62 62 1 Single-family residential 4,177 514 3,378 3,892 61 Single-family residential - Banco de la Gente non-traditional 11,022 - 10,356 10,356 654 Commercial 2,020 429 1,520 1,949 10 Multifamily and farmland 108 - 98 98 - Total impaired real estate loans 17,389 943 15,414 16,357 726 Loans not secured by real estate: Commercial loans 146 - 145 145 1 Consumer loans 24 - 23 23 - Total impaired loans $ 17,559 943 15,582 16,525 727 The following table presents the average impaired loan balance and the interest income recognized by loan class for the three and six months ended June 30, 2022 and 2021. (Dollars in thousands) Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Real estate loans: Construction and land development $ 65 1 91 1 68 3 97 3 Single-family residential 1,231 51 6,100 57 1,015 99 5,731 118 Single-family residential - Banco de la Gente stated income 13,273 135 10,835 160 13,927 273 11,407 337 Commercial 1,984 26 2,682 29 2,004 50 2,779 64 Multifamily and farmland 100 1 113 1 102 3 114 2 Total impaired real estate loans 16,653 214 19,821 248 17,116 428 20,128 524 Loans not secured by real estate: Commercial loans 151 2 315 5 174 4 362 11 Farm loans (non RE) - - - - - - Consumer loans 16 1 15 - 12 1 22 1 Total impaired loans $ 16,820 217 20,151 253 17,302 433 20,512 536 The following table presents impaired loans as of and for the year ended December 31, 2021: December 31, 2021 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans YTD Interest Income Recognized Real estate loans: Construction and land development $ 73 - 73 73 3 82 6 Single-family residential 5,138 524 4,374 4,898 86 6,017 253 Single-family residential - Banco de la Gente non-traditional 11,753 - 10,922 10,922 687 10,325 609 Commercial 2,138 435 1,608 2,043 11 2,385 109 Multifamily and farmland 113 - 105 105 - 110 6 Total impaired real estate loans 19,215 959 17,082 18,041 787 18,919 983 Loans not secured by real estate: Commercial loans 282 49 170 219 2 271 19 Consumer loans 8 - 4 4 - 11 1 Total impaired loans $ 19,505 1,008 17,256 18,264 789 19,201 1,003 Impaired loans collectively evaluated for impairment totaled $5.1 million at June 30, 2022 and December 31, 2021 and are included in the tables above. Allowance on impaired loans collectively evaluated for impairment totaled $44,000 and $52,000 at June 30, 2022 and December 31, 2021, respectively. The following tables present changes in the allowance for loan losses for the three and six months ended June 30, 2022 and 2021. Unallocated balances in the following tables include allowance for loan losses based on qualitative factors such as economic outlook, concentrations of credit, interest rate risk and loan volume trends. Paycheck Protection Program ("PPP") loans are excluded from the allowance for loan losses as PPP loans are 100 percent guaranteed by the Small Business Administration (“SBA”). (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Six months ended June 30, 2022: Allowance for loan losses: Beginning balance $ 1,193 2,013 864 2,234 150 711 - 110 2,080 9,355 Charge-offs - (31 ) - - - (7 ) - (246 ) - (284 ) Recoveries - 127 - 4 - 55 - 51 - 237 Provision 79 62 (51 ) 918 7 (126 ) - 301 (709 ) 481 Ending balance $ 1,272 2,171 813 3,156 157 633 - 216 1,371 9,789 Three months ended June 30, 2022: Allowance for loan losses: Beginning balance $ 1,163 2,095 841 3,011 147 646 - 128 1,395 9,426 Charge-offs - - - - - (3 ) - (121 ) - (124 ) Recoveries - 10 - 2 - 36 - 29 - 77 Provision 109 66 (28 ) 143 10 (46 ) - 180 (24 ) 410 Ending balance $ 1,272 2,171 813 3,156 157 633 - 216 1,371 9,789 Allowance for loan losses at June 30, 2022: Ending balance: individually evaluated for impairment $ - 37 640 6 - - - - - 683 Ending balance: collectively evaluated for impairment 1,272 2,134 173 3,150 157 633 - 216 1,371 9,106 Ending balance $ 1,272 2,171 813 3,156 157 633 - 216 1,371 9,789 Loans at June 30, 2022: Ending balance $ 103,241 292,685 21,378 386,368 62,687 70,691 1,006 21,417 - 959,473 Ending balance: individually evaluated for impairment $ - 845 9,214 1,413 - - - - - 11,472 Ending balance: collectively evaluated for impairment $ 103,241 291,840 12,164 384,955 62,687 70,691 1,006 21,417 - 948,001 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Six months ended June 30, 2021: Allowance for loan losses: Beginning balance $ 1,196 1,843 1,052 2,212 122 1,345 - 128 2,010 9,908 Charge-offs - - - - - (78 ) - (158 ) - (236 ) Recoveries 90 78 - 48 - 6 - 74 - 296 Provision (248 ) (198 ) (72 ) (80 ) 26 (277 ) - 45 123 (681 ) Ending balance $ 1,038 1,723 980 2,180 148 996 - 89 2,133 9,287 Three months ended June 30, 2021: Allowance for loan losses: Beginning balance $ 1,061 1,850 1,033 2,252 145 1,244 - 91 1,856 9,532 Charge-offs - - - - - (78 ) - (73 ) - (151 ) Recoveries 40 18 - 36 - - - 38 - 132 Provision (63 ) (145 ) (53 ) (108 ) 3 (170 ) - 33 277 (226 ) Ending balance $ 1,038 1,723 980 2,180 148 996 - 89 2,133 9,287 Allowance for loan losses at June 30, 2021: Ending balance: individually evaluated for impairment $ 1 5 790 10 - - - - - 806 Ending balance: collectively evaluated for impairment 1,037 1,718 190 2,170 148 996 - 89 2,133 8,481 Ending balance $ 1,038 1,723 980 2,180 148 996 - 89 2,133 9,287 Loans at June 30, 2021: Ending balance $ 90,579 257,901 25,198 340,216 59,142 104,506 742 10,076 - 888,360 Ending balance: individually evaluated for impairment $ 6 1,426 10,722 1,741 - 59 - - - 13,954 Ending balance: collectively evaluated for impairment $ 90,573 256,475 14,476 338,475 59,142 104,447 742 10,076 - 874,406 The Bank utilizes an internal risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 8. These risk grades are evaluated on an ongoing basis. A description of the general characteristics of the eight risk grades is as follows: · Risk Grade 1 – Excellent Quality: Loans are well above average quality and a minimal amount of credit risk exists. CD or cash secured loans or properly margined actively traded stock or bond secured loans would fall in this grade. · Risk Grade 2 – High Quality: Loans are of good quality with risk levels well within the Bank’s range of acceptability. The organization or individual is established with a history of successful performance though somewhat susceptible to economic changes. · Risk Grade 3 – Good Quality: Loans of average quality with risk levels within the Bank’s range of acceptability but higher than normal. This may be a new organization or an existing organization in a transitional phase (e.g. expansion, acquisition, market change). PPP loans are classified as risk grade 3. · Risk Grade 4 – Management Attention: These loans have higher risk and servicing needs but still are acceptable. Evidence of marginal performance or deteriorating trends is observed. These are not problem credits presently, but may be in the future if the borrower is unable to change its present course. · Risk Grade 5 – Watch: These loans are currently performing satisfactorily, but there has been some recent past due history on repayment and there are potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date. · Risk Grade 6 – Substandard: A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged (if there is any). There is a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. · Risk Grade 7 – Doubtful: Loans classified as Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Doubtful is a temporary grade where a loss is expected but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is charged off. · Risk Grade 8 – Loss: Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be realized in the future. Loss is a temporary grade until the appropriate authority is obtained to charge the loan off. The following tables present the credit risk profile of each loan type based on internally assigned risk grades as of June 30, 2022 and December 31, 2021: June 30, 2022 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 3,556 - - - 1,381 - 564 - 5,501 2- High Quality 18,945 116,720 - 31,456 18 15,391 - 1,923 1,530 185,983 3- Good Quality 81,150 156,099 8,053 324,117 60,121 51,572 1,005 3,508 13,317 698,942 4- Management Attention 3,018 11,599 9,627 27,554 1,922 1,473 1 259 137 55,590 5- Watch 66 1,199 1,282 2,675 528 874 - 1 149 6,774 6- Substandard 62 3,512 2,416 566 98 - - 29 - 6,683 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 103,241 292,685 21,378 386,368 62,687 70,691 1,006 6,284 15,133 959,473 There were no new TDR modifications during the three and six months ended June 30, 2022 and 2021. December 31, 2021 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 5,923 - - - 371 - 581 - 6,875 2- High Quality 11,752 109,337 - 28,546 19 16,177 - 2,039 1,309 169,179 3- Good Quality 80,325 129,856 8,712 272,786 54,945 68,183 792 3,510 3,931 623,040 4- Management Attention 3,534 14,964 10,478 30,937 2,754 5,214 4 284 - 68,169 5- Watch 76 2,464 1,703 4,938 543 1,177 - 1 - 10,902 6- Substandard 73 3,567 2,254 634 105 50 - 21 - 6,704 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 95,760 266,111 23,147 337,841 58,366 91,172 796 6,436 5,240 884,869 There were no loans modified as TDR loans that defaulted during the six months ended June 30, 2022 and 2021, which were within 12 months of their modification date. On March 27, 2020, President Trump signed the CARES Act, which established a $2 trillion economic stimulus package, including cash payments to individuals, supplemental unemployment insurance benefits and a $349 billion loan program administered through the PPP. Under the PPP, small businesses, sole proprietorships, independent contractors and self-employed individuals were able to apply for loans from existing SBA lenders and other approved regulated lenders, subject to certain limitations and eligibility criteria. A second round of PPP funding provided a total of $320 billion additional funding for the PPP. The Bank participated as a lender in the PPP. Total PPP loans originated during the years ended December 31, 2020 and 2021 amounted to $128.1 million. The outstanding balance of PPP loans was $1.4 million and $18.0 million at June 30, 2022 and December 31, 2021, respectively, classified as commercial loans in the tables above. The Bank recognized $293,000 and $1.5 million of PPP loan fee income for the three months ended June 30, 2022 and the three months ended June 30, 2021, respectively. The Bank recognized $893,000 and $2.5 million of PPP loan fee income for the six months ended June 30, 2022 and six months ended June 30, 2021, respectively. |
Net Earnings Per Share
Net Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Net Earnings Per Share | |
4. Net Earnings Per Share | (4) Net Earnings Per Share Net earnings per share is based on the weighted average number of shares outstanding during the period while the effects of potential shares outstanding during the period are included in diluted earnings per share. The average market price during the applicable period is used to compute equivalent shares. The reconciliation of the amounts used in the computation of both “basic earnings per share” and “diluted earnings per share” for the three and six months ended June 30, 2022 and 2021 is as follows: For the three months ended June 30, 2022 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,217 5,481,899 $ 0.59 Effect of dilutive securities: Restricted stock units - unvested 14,879 Shares held in deferred comp plan by deferred compensation trust 164,934 Diluted earnings per share $ 3,217 5,661,712 $ 0.57 For the six months ended June 30, 2022 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 6,669 5,489,461 $ 1.21 Effect of dilutive securities: Restricted stock units - unvested 14,024 Shares held in deferred comp plan by deferred compensation trust 164,089 Diluted earnings per share $ 6,669 5,667,574 $ 1.18 For the three months ended June 30, 2021 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 4,615 5,630,580 $ 0.82 Effect of dilutive securities: Restricted stock units - unvested - 12,683 Shares held in deferred comp plan by deferred compensation trust 157,897 Diluted earnings per share $ 4,615 5,801,160 $ 0.80 For the six months ended June 30, 2021 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 8,736 5,630,995 $ 1.55 Effect of dilutive securities: Restricted stock units - unvested - 12,427 Shares held in deferred comp plan by deferred compensation trust 157,227 Diluted earnings per share $ 8,736 5,800,649 $ 1.51 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value | |
5. Fair Value | (5) Fair Value The Company is required to disclose fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good faith estimate of the increase or decrease in the value of financial instruments held by the Company since purchase, origination, or issuance. The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: · Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. · Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. · Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Cash and Cash Equivalents For cash, due from banks and interest-bearing deposits, the carrying amount is a reasonable estimate of fair value. Cash and cash equivalents are reported in the Level 1 fair value category. Investment Securities Available for Sale Fair values of investment securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges when available. If quoted prices are not available, fair value is determined using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Fair values for investment securities with quoted market prices are reported in the Level 1 fair value category. Fair value measurements obtained from independent pricing services are reported in the Level 2 fair value category. All other fair value measurements are reported in the Level 3 fair value category. Other Investments For other investments, the carrying value is a reasonable estimate of fair value. Other investments are reported in the Level 3 fair value category. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at lower of aggregate cost or market value. The cost of mortgage loans held for sale approximates the market value. Mortgage loans held for sale are reported in the Level 3 fair value category. Loans The fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans. Loans are reported in the Level 3 fair value category, as the pricing of loans is more subjective than the pricing of other financial instruments. Mutual Funds For mutual funds held in the deferred compensation trust, the carrying value is a reasonable estimate of fair value. Mutual funds held in the deferred compensation trust are included in other assets on the balance sheet and reported in the Level 2 fair value category. Deposits The fair value of demand deposits, interest-bearing demand deposits and savings is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Deposits are reported in the Level 3 fair value category. Securities Sold Under Agreements to Repurchase For securities sold under agreements to repurchase, the carrying value is a reasonable estimate of fair value. Securities sold under agreements to repurchase are reported in the Level 2 fair value category. FHLB Borrowings The fair value of FHLB borrowings is estimated based upon discounted future cash flows using a discount rate comparable to the current market rate for such borrowings. FHLB borrowings are reported in the Level 3 fair value category. Junior Subordinated Debentures Because the Company’s junior subordinated debentures were issued at a floating rate, the carrying amount is a reasonable estimate of fair value. Junior subordinated debentures are reported in the Level 2 fair value category. Commitments to Extend Credit and Standby Letters of Credit Commitments to extend credit and standby letters of credit are generally short-term and at variable interest rates. Therefore, both the carrying value and estimated fair value associated with these instruments are immaterial. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The tables below present all financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy, as of June 30, 2022 and December 31, 2021. (Dollars in thousands) June 30, 2022 Fair Value Level 1 Valuation Level 2 Valuation Level 3 Valuation U.S. Treasuries $ 10,058 - 10,058 - U.S. Government sponsored enterprises $ 12,692 - 12,692 - Mortgage-backed securities $ 248,200 - 248,200 - State and political subdivisions $ 155,854 - 155,854 - Mutual funds held in deferred compensation trust $ 1,332 - 1,332 (Dollars in thousands) December 31, 2021 Fair Value Level 1 Valuation Level 2 Valuation Level 3 Valuation U.S. Treasuries $ 7,889 - 7,889 - U.S. Government sponsored enterprises $ 14,267 - 14,267 - Mortgage-backed securities $ 217,152 - 217,152 - State and political subdivisions $ 167,241 - 167,241 - Mutual funds held in deferred compensation trust $ 1,510 - 1,510 - The fair value measurements for mortgage loans held for sale and impaired loans on a non-recurring basis at June 30, 2022 and December 31, 2021 are presented below. The fair value measurement process uses certified appraisals and other market-based information; however, in many cases, it also requires significant input based on management’s knowledge of, and judgment about, current market conditions, specific issues relating to the collateral and other matters. As a result, all fair value measurements for impaired loans and other real estate are considered Level 3. (Dollars in thousands) Fair Value Measurements June 30, 2022 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 1,288 - - 1,288 Impaired loans $ 15,798 - - 15,798 (Dollars in thousands) Fair Value Measurements December 31, 2021 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 3,637 - - 3,637 Impaired loans $ 17,475 - - 17,475 (Dollars in thousands) Fair Value June 30, 2022 Fair Value December 31, 2021 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Mortgage loans held for sale $ 1,288 3,637 Rate lock commitment N/A N/A Impaired loans $ 15,798 17,475 Appraised value and discounted cash flows Discounts to reflect current market conditions and ultimate collectability 0 - 25 % The carrying amount and estimated fair value of financial instruments at June 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) Fair Value Measurements at June 30, 2022 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 223,707 223,707 - - 223,707 Investment securities available for sale 426,804 - 426,804 - 426,804 Other investments 2,791 - - 2,791 2,791 Mortgage loans held for sale 1,288 - - 1,288 1,288 Loans, net 949,684 - - 924,433 924,433 Mutual funds held in deferred compensation trust 1,332 - 1,332 - 1,332 Liabilities: Deposits $ 1,493,970 - - 1,415,392 1,415,392 Securities sold under agreements to repurchase 37,146 - 37,146 - 37,146 Junior subordinated debentures 15,464 - 15,464 - 15,464 (Dollars in thousands) Fair Value Measurements at December 31, 2021 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 277,499 277,499 - - 277,499 Investment securities available for sale 406,549 - 406,549 - 406,549 Other investments 3,668 - - 3,668 3,668 Mortgage loans held for sale 3,637 - - 3,637 3,637 Loans, net 875,514 - - 855,814 855,814 Mutual funds held in deferred compensation trust 1,510 - 1,510 - 1,510 Liabilities: Deposits $ 1,412,748 - - 1,401,833 1,401,833 Securities sold under agreements to repurchase 37,094 - 37,094 - 37,094 Junior subordinated debentures 15,464 - 15,464 - 15,464 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
6. Leases | (6) Leases As of June 30, 2022, the Bank had operating right of use assets of $6.0 million and operating lease liabilities of $6.0 million. The Bank maintains operating leases on land and buildings for some of the Bank’s branch facilities and loan production offices. Most leases include one option to renew, with renewal terms extending up to 15 years. The exercise of renewal options is based on the judgment of management as to whether or not the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Bank if the option is not exercised. Leases with a term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term. The following table presents lease cost and other lease information as of June 30, 2022 and 2021. (Dollars in thousands) June 30, 2022 June 30, 2021 Operating lease cost $ 408 $ 418 Other information: Cash paid for amounts included in the measurement of lease liabilities 670 404 Right-of-use assets obtained in exchange for new lease liabilities - operating leases 1,726 942 Weighted-average remaining lease term - operating leases 8.54 6.84 Weighted-average discount rate - operating leases 2.14 % 2.71 % The following table presents lease maturities as of June 30, 2022 and December 31, 2021. (Dollars in thousands) Maturity Analysis of Operating Lease Liabilities: June 30, 2022 December 31, 2021 2022 $ 459 $ 740 2023 922 746 2024 867 691 2025 812 635 2026 694 518 Thereafter 2,975 1,838 Total 6,729 5,168 Less: Imputed Interest (686 ) (491 ) Operating Lease Liability $ 6,043 $ 4,677 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events | |
7. Subsequent Events | (7) Subsequent Events The Company has reviewed and evaluated subsequent events and transactions for material subsequent events through the date the financial statements are issued. Management has concluded that there were no material subsequent events. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Recent Accounting Pronouncements | The following table provides a summary of Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has not adopted as of June 30, 2022, which may impact the Company’s financial statements. Recently Issued Accounting Guidance Not Yet Adopted ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2016-13: Measurement of Credit Losses on Financial Instruments Provides guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. See ASU 2019-10 below. The Company will apply this guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company is still evaluating the impact of this guidance on its consolidated financial statements. The Company has formed a Current Expected Credit Losses (“CECL”) committee and implemented a model from a third-party vendor for running CECL calculations. The Company is currently developing CECL model assumptions and comparing results to current allowance for loan loss calculations. The Company plans to run parallel calculations leading up to the effective date of this guidance to ensure it is prepared for implementation by the effective date. In addition to the Company’s allowance for loan losses, it will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses Aligns the implementation date of the topic for annual financial statements of nonpublic companies with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the topic, but rather, should be accounted for in accordance with the leases topic. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Addresses unintended issues accountants flagged when implementing ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, ASU 2016-13, Measurement of Credit Losses on Financial Instruments, and ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-05: Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief Guidance to provide entities with an option to irrevocably elect the fair value option, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-10: Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Guidance to defer the effective dates for private companies, not-for-profit organizations, and certain smaller reporting companies applying standards on current expected credit losses (CECL), leases and hedging. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2019-11: Codification Improvements to Topic 326, Financial Instruments—Credit Losses Guidance that addresses issues raised by stakeholders during the implementation of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect a variety of Topics in the ASC. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2020-03: Codification Improvements to Financial Instruments Guidance to clarify that the contractual term of a net investment in a lease, determined in accordance with the leases standard, should be the contractual term used to measure expected credit losses under ASC 326. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Guidance that provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Therefore, it will be in effect for a limited time through December 31, 2022. March 12, 2020 through December 31, 2022 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2022-02: Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Eliminates the guidance on troubled debt restructurings (TDRs) for creditors in ASC 310-40 2 and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures. |
Reclassification | Certain amounts in the 2021 Consolidated Financial Statements have been reclassified to conform to the 2022 presentation. These reclassifications did not have any impact on shareholders’ equity or net earnings. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investment Securities | |
Investment Securities Available For Sale | (Dollars in thousands) June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S Treasuries $ 10,940 - 882 10,058 U.S. Government sponsored enterprises 13,192 - 499 12,693 Mortgage-backed securities 263,904 538 16,243 248,199 State and political subdivisions 181,722 91 25,959 155,854 Total $ 469,758 629 43,583 426,804 (Dollars in thousands) December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S Treasuries $ 7,964 - 75 7,889 U.S. Government sponsored enterprises 14,252 200 185 14,267 Mortgage-backed securities 218,402 1,769 3,019 217,152 State and political subdivisions 165,804 3,694 2,257 167,241 Total $ 406,422 5,663 5,536 406,549 |
Current Fair Value And Associated Unrealized Losses On Investments In Securities With Unrealized Losses | (Dollars in thousands) June 30, 2022 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 10,058 882 - - 10,058 882 U.S. Government sponsored enterprises 5,261 337 7,432 162 12,693 499 Mortgage-backed securities 179,160 12,653 34,152 3,590 213,312 16,243 State and political subdivisions 129,621 21,403 15,128 4,556 144,749 25,959 Total $ 324,100 35,275 56,712 8,308 380,812 43,583 (Dollars in thousands) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 7,889 75 - - 7,889 75 U.S. Government sponsored enterprises 5,232 15 3,263 170 8,495 185 Mortgage-backed securities 131,483 2,477 19,632 542 151,115 3,019 State and political subdivisions 80,076 1,981 5,922 276 85,998 2,257 Total $ 224,680 4,548 28,817 988 253,497 5,536 |
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Contractual Maturity | June 30, 2022 (Dollars in thousands) Amortized Cost Fair Value Due within one year $ 1,413 1,419 Due from one to five years 9,605 9,529 Due from five to ten years 74,859 68,680 Due after ten years 119,977 98,977 Mortgage-backed securities 263,904 248,199 Total $ 469,758 426,804 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loans | |
Major Classifications Of Loans | (Dollars in thousands) June 30, 2022 December 31, 2021 Real estate loans: Construction and land development $ 103,241 95,760 Single-family residential 292,685 266,111 Single-family residential - Banco de la Gente non-traditional 21,378 23,147 Commercial 386,368 337,841 Multifamily and farmland 62,687 58,366 Total real estate loans 866,359 781,225 Loans not secured by real estate: Commercial loans 70,691 91,172 Farm loans 1,006 796 Consumer loans 6,284 6,436 All other loans 15,133 5,240 Total loans 959,473 884,869 Less allowance for loan losses (9,789 ) (9,355 ) Total net loans $ 949,684 875,514 |
Age Analysis Of Past Due Loans, By Loan Type | June 30, 2022 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 43 - 43 103,198 103,241 - Single-family residential 1,009 370 1,379 291,306 292,685 - Single-family residential - Banco de la Gente non-traditional 514 171 685 20,693 21,378 - Commercial 250 - 250 386,118 386,368 - Multifamily and farmland - - - 62,687 62,687 - Total real estate loans 1,816 541 2,357 864,002 866,359 - Loans not secured by real estate: Commercial loans 99 - 99 70,592 70,691 - Farm loans - - - 1,006 1,006 - Consumer loans 123 - 123 6,161 6,284 - All other loans 7 - 7 15,126 15,133 - Total loans $ 2,045 541 2,586 956,887 959,473 - December 31, 2021 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ - - - 95,760 95,760 - Single-family residential 2,323 634 2,957 263,154 266,111 - Single-family residential - Banco de la Gente non-traditional 2,593 112 2,705 20,442 23,147 - Commercial 488 - 488 337,353 337,841 - Multifamily and farmland - - - 58,366 58,366 - Total real estate loans 5,404 746 6,150 775,075 781,225 - Loans not secured by real estate: Commercial loans 43 - 43 91,129 91,172 - Farm loans - - - 796 796 - Consumer loans 38 - 38 6,398 6,436 - All other loans - - - 5,240 5,240 - Total loans $ 5,485 746 6,231 878,638 884,869 - |
Non-accrual Loans | (Dollars in thousands) June 30, 2022 December 31, 2021 Real estate loans: Construction and land development $ - - Single-family residential 1,914 1,642 Single-family residential - Banco de la Gente non-traditional 1,416 1,232 Commercial 137 200 Multifamily and farmland 98 105 Total real estate loans 3,565 3,179 Loans not secured by real estate: Commercial loans - 49 Consumer loans 21 2 Total $ 3,586 3,230 |
Impaired Loans | June 30, 2022 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Real estate loans: Construction and land development $ 62 - 62 62 1 Single-family residential 4,177 514 3,378 3,892 61 Single-family residential - Banco de la Gente non-traditional 11,022 - 10,356 10,356 654 Commercial 2,020 429 1,520 1,949 10 Multifamily and farmland 108 - 98 98 - Total impaired real estate loans 17,389 943 15,414 16,357 726 Loans not secured by real estate: Commercial loans 146 - 145 145 1 Consumer loans 24 - 23 23 - Total impaired loans $ 17,559 943 15,582 16,525 727 (Dollars in thousands) Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Real estate loans: Construction and land development $ 65 1 91 1 68 3 97 3 Single-family residential 1,231 51 6,100 57 1,015 99 5,731 118 Single-family residential - Banco de la Gente stated income 13,273 135 10,835 160 13,927 273 11,407 337 Commercial 1,984 26 2,682 29 2,004 50 2,779 64 Multifamily and farmland 100 1 113 1 102 3 114 2 Total impaired real estate loans 16,653 214 19,821 248 17,116 428 20,128 524 Loans not secured by real estate: Commercial loans 151 2 315 5 174 4 362 11 Farm loans (non RE) - - - - - - Consumer loans 16 1 15 - 12 1 22 1 Total impaired loans $ 16,820 217 20,151 253 17,302 433 20,512 536 December 31, 2021 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans YTD Interest Income Recognized Real estate loans: Construction and land development $ 73 - 73 73 3 82 6 Single-family residential 5,138 524 4,374 4,898 86 6,017 253 Single-family residential - Banco de la Gente non-traditional 11,753 - 10,922 10,922 687 10,325 609 Commercial 2,138 435 1,608 2,043 11 2,385 109 Multifamily and farmland 113 - 105 105 - 110 6 Total impaired real estate loans 19,215 959 17,082 18,041 787 18,919 983 Loans not secured by real estate: Commercial loans 282 49 170 219 2 271 19 Consumer loans 8 - 4 4 - 11 1 Total impaired loans $ 19,505 1,008 17,256 18,264 789 19,201 1,003 |
Changes In The Allowance For Loan Losses | (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Six months ended June 30, 2022: Allowance for loan losses: Beginning balance $ 1,193 2,013 864 2,234 150 711 - 110 2,080 9,355 Charge-offs - (31 ) - - - (7 ) - (246 ) - (284 ) Recoveries - 127 - 4 - 55 - 51 - 237 Provision 79 62 (51 ) 918 7 (126 ) - 301 (709 ) 481 Ending balance $ 1,272 2,171 813 3,156 157 633 - 216 1,371 9,789 Three months ended June 30, 2022: Allowance for loan losses: Beginning balance $ 1,163 2,095 841 3,011 147 646 - 128 1,395 9,426 Charge-offs - - - - - (3 ) - (121 ) - (124 ) Recoveries - 10 - 2 - 36 - 29 - 77 Provision 109 66 (28 ) 143 10 (46 ) - 180 (24 ) 410 Ending balance $ 1,272 2,171 813 3,156 157 633 - 216 1,371 9,789 Allowance for loan losses at June 30, 2022: Ending balance: individually evaluated for impairment $ - 37 640 6 - - - - - 683 Ending balance: collectively evaluated for impairment 1,272 2,134 173 3,150 157 633 - 216 1,371 9,106 Ending balance $ 1,272 2,171 813 3,156 157 633 - 216 1,371 9,789 Loans at June 30, 2022: Ending balance $ 103,241 292,685 21,378 386,368 62,687 70,691 1,006 21,417 - 959,473 Ending balance: individually evaluated for impairment $ - 845 9,214 1,413 - - - - - 11,472 Ending balance: collectively evaluated for impairment $ 103,241 291,840 12,164 384,955 62,687 70,691 1,006 21,417 - 948,001 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Six months ended June 30, 2021: Allowance for loan losses: Beginning balance $ 1,196 1,843 1,052 2,212 122 1,345 - 128 2,010 9,908 Charge-offs - - - - - (78 ) - (158 ) - (236 ) Recoveries 90 78 - 48 - 6 - 74 - 296 Provision (248 ) (198 ) (72 ) (80 ) 26 (277 ) - 45 123 (681 ) Ending balance $ 1,038 1,723 980 2,180 148 996 - 89 2,133 9,287 Three months ended June 30, 2021: Allowance for loan losses: Beginning balance $ 1,061 1,850 1,033 2,252 145 1,244 - 91 1,856 9,532 Charge-offs - - - - - (78 ) - (73 ) - (151 ) Recoveries 40 18 - 36 - - - 38 - 132 Provision (63 ) (145 ) (53 ) (108 ) 3 (170 ) - 33 277 (226 ) Ending balance $ 1,038 1,723 980 2,180 148 996 - 89 2,133 9,287 Allowance for loan losses at June 30, 2021: Ending balance: individually evaluated for impairment $ 1 5 790 10 - - - - - 806 Ending balance: collectively evaluated for impairment 1,037 1,718 190 2,170 148 996 - 89 2,133 8,481 Ending balance $ 1,038 1,723 980 2,180 148 996 - 89 2,133 9,287 Loans at June 30, 2021: Ending balance $ 90,579 257,901 25,198 340,216 59,142 104,506 742 10,076 - 888,360 Ending balance: individually evaluated for impairment $ 6 1,426 10,722 1,741 - 59 - - - 13,954 Ending balance: collectively evaluated for impairment $ 90,573 256,475 14,476 338,475 59,142 104,447 742 10,076 - 874,406 |
Credit Risk Profile Of Each Loan Type Based On Internally Assigned Risk Grade | June 30, 2022 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 3,556 - - - 1,381 - 564 - 5,501 2- High Quality 18,945 116,720 - 31,456 18 15,391 - 1,923 1,530 185,983 3- Good Quality 81,150 156,099 8,053 324,117 60,121 51,572 1,005 3,508 13,317 698,942 4- Management Attention 3,018 11,599 9,627 27,554 1,922 1,473 1 259 137 55,590 5- Watch 66 1,199 1,282 2,675 528 874 - 1 149 6,774 6- Substandard 62 3,512 2,416 566 98 - - 29 - 6,683 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 103,241 292,685 21,378 386,368 62,687 70,691 1,006 6,284 15,133 959,473 December 31, 2021 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 5,923 - - - 371 - 581 - 6,875 2- High Quality 11,752 109,337 - 28,546 19 16,177 - 2,039 1,309 169,179 3- Good Quality 80,325 129,856 8,712 272,786 54,945 68,183 792 3,510 3,931 623,040 4- Management Attention 3,534 14,964 10,478 30,937 2,754 5,214 4 284 - 68,169 5- Watch 76 2,464 1,703 4,938 543 1,177 - 1 - 10,902 6- Substandard 73 3,567 2,254 634 105 50 - 21 - 6,704 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 95,760 266,111 23,147 337,841 58,366 91,172 796 6,436 5,240 884,869 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Net Earnings Per Share (Tables) | |
Reconciliations Of The Amounts Used In The Computation Of Both Basic Earnings Per Common Share And Diluted Earnings Per Common Share | For the three months ended June 30, 2022 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,217 5,481,899 $ 0.59 Effect of dilutive securities: Restricted stock units - unvested 14,879 Shares held in deferred comp plan by deferred compensation trust 164,934 Diluted earnings per share $ 3,217 5,661,712 $ 0.57 For the six months ended June 30, 2022 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 6,669 5,489,461 $ 1.21 Effect of dilutive securities: Restricted stock units - unvested 14,024 Shares held in deferred comp plan by deferred compensation trust 164,089 Diluted earnings per share $ 6,669 5,667,574 $ 1.18 For the three months ended June 30, 2021 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 4,615 5,630,580 $ 0.82 Effect of dilutive securities: Restricted stock units - unvested - 12,683 Shares held in deferred comp plan by deferred compensation trust 157,897 Diluted earnings per share $ 4,615 5,801,160 $ 0.80 For the six months ended June 30, 2021 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 8,736 5,630,995 $ 1.55 Effect of dilutive securities: Restricted stock units - unvested - 12,427 Shares held in deferred comp plan by deferred compensation trust 157,227 Diluted earnings per share $ 8,736 5,800,649 $ 1.51 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value | |
Available For Sale Securities Measured At Fair Value On A Recurring Basis | (Dollars in thousands) June 30, 2022 Fair Value Level 1 Valuation Level 2 Valuation Level 3 Valuation U.S. Treasuries $ 10,058 - 10,058 - U.S. Government sponsored enterprises $ 12,692 - 12,692 - Mortgage-backed securities $ 248,200 - 248,200 - State and political subdivisions $ 155,854 - 155,854 - Mutual funds held in deferred compensation trust $ 1,332 - 1,332 (Dollars in thousands) December 31, 2021 Fair Value Level 1 Valuation Level 2 Valuation Level 3 Valuation U.S. Treasuries $ 7,889 - 7,889 - U.S. Government sponsored enterprises $ 14,267 - 14,267 - Mortgage-backed securities $ 217,152 - 217,152 - State and political subdivisions $ 167,241 - 167,241 - Mutual funds held in deferred compensation trust $ 1,510 - 1,510 - |
Fair Value Measurements Of Investment Securities Available For Sale Using Level 3 Significant Unobservable Inputs | (Dollars in thousands) Fair Value Measurements June 30, 2022 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 1,288 - - 1,288 Impaired loans $ 15,798 - - 15,798 (Dollars in thousands) Fair Value Measurements December 31, 2021 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 3,637 - - 3,637 Impaired loans $ 17,475 - - 17,475 (Dollars in thousands) Fair Value June 30, 2022 Fair Value December 31, 2021 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Mortgage loans held for sale $ 1,288 3,637 Rate lock commitment N/A N/A Impaired loans $ 15,798 17,475 Appraised value and discounted cash flows Discounts to reflect current market conditions and ultimate collectability 0 - 25 % |
Carrying Amount And Estimated Fair Value Of The Company's Financial Instruments | (Dollars in thousands) Fair Value Measurements at June 30, 2022 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 223,707 223,707 - - 223,707 Investment securities available for sale 426,804 - 426,804 - 426,804 Other investments 2,791 - - 2,791 2,791 Mortgage loans held for sale 1,288 - - 1,288 1,288 Loans, net 949,684 - - 924,433 924,433 Mutual funds held in deferred compensation trust 1,332 - 1,332 - 1,332 Liabilities: Deposits $ 1,493,970 - - 1,415,392 1,415,392 Securities sold under agreements to repurchase 37,146 - 37,146 - 37,146 Junior subordinated debentures 15,464 - 15,464 - 15,464 (Dollars in thousands) Fair Value Measurements at December 31, 2021 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 277,499 277,499 - - 277,499 Investment securities available for sale 406,549 - 406,549 - 406,549 Other investments 3,668 - - 3,668 3,668 Mortgage loans held for sale 3,637 - - 3,637 3,637 Loans, net 875,514 - - 855,814 855,814 Mutual funds held in deferred compensation trust 1,510 - 1,510 - 1,510 Liabilities: Deposits $ 1,412,748 - - 1,401,833 1,401,833 Securities sold under agreements to repurchase 37,094 - 37,094 - 37,094 Junior subordinated debentures 15,464 - 15,464 - 15,464 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Lease Expense | (Dollars in thousands) June 30, 2022 June 30, 2021 Operating lease cost $ 408 $ 418 Other information: Cash paid for amounts included in the measurement of lease liabilities 670 404 Right-of-use assets obtained in exchange for new lease liabilities - operating leases 1,726 942 Weighted-average remaining lease term - operating leases 8.54 6.84 Weighted-average discount rate - operating leases 2.14 % 2.71 % |
Maturity Analysis Of Operating Lease Liabilities | (Dollars in thousands) Maturity Analysis of Operating Lease Liabilities: June 30, 2022 December 31, 2021 2022 $ 459 $ 740 2023 922 746 2024 867 691 2025 812 635 2026 694 518 Thereafter 2,975 1,838 Total 6,729 5,168 Less: Imputed Interest (686 ) (491 ) Operating Lease Liability $ 6,043 $ 4,677 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) $ in Millions | Jun. 30, 2022 USD ($) |
Summary of Significant Accounting Policies | |
Issuance Preferred Securities | $ 20.6 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Amortized Cost | $ 469,758 | $ 406,422 |
Gross Unrealized Gains | 629 | 5,663 |
Gross Unrealized Losses | 43,583 | 5,536 |
Estimated Fair Value | 426,804 | 406,549 |
U.S. Government sponsored enterprises | ||
Amortized Cost | 13,192 | 14,252 |
Gross Unrealized Gains | 0 | 200 |
Gross Unrealized Losses | 499 | 185 |
Estimated Fair Value | 12,693 | 14,267 |
Mortgage-backed securities | ||
Amortized Cost | 263,904 | 218,402 |
Gross Unrealized Gains | 538 | 1,769 |
Gross Unrealized Losses | 16,243 | 3,019 |
Estimated Fair Value | 248,199 | 217,152 |
State and political subdivisions | ||
Amortized Cost | 181,722 | 165,804 |
Gross Unrealized Gains | 91 | 3,694 |
Gross Unrealized Losses | 25,959 | 2,257 |
Estimated Fair Value | 155,854 | 167,241 |
U.S Treasuries [Member] | ||
Amortized Cost | 10,940 | 7,964 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 882 | 75 |
Estimated Fair Value | $ 10,058 | $ 7,889 |
Investment securities (Details
Investment securities (Details 1) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Less Than 12 Months, Fair Value | $ 324,100 | $ 224,680 |
Less Than 12 Months, Unrealized Losses | 35,275 | 4,548 |
12 Months Or More, Fair Value | 56,712 | 28,817 |
12 Months Or More, Unrealized Losses | 8,308 | 988 |
Total, Fair Value | 380,812 | 253,497 |
Total, Unrealized Losses | 43,583 | 5,536 |
U.S. Government Sponsored Enterprises | ||
Less Than 12 Months, Fair Value | 5,261 | 5,232 |
Less Than 12 Months, Unrealized Losses | 337 | 15 |
12 Months Or More, Fair Value | 7,432 | 3,263 |
12 Months Or More, Unrealized Losses | 162 | 170 |
Total, Fair Value | 12,693 | 8,495 |
Total, Unrealized Losses | 499 | 185 |
Mortgage-backed securities | ||
Less Than 12 Months, Fair Value | 179,160 | 131,483 |
Less Than 12 Months, Unrealized Losses | 12,653 | 2,477 |
12 Months Or More, Fair Value | 34,152 | 19,632 |
12 Months Or More, Unrealized Losses | 3,590 | 542 |
Total, Fair Value | 213,312 | 151,115 |
Total, Unrealized Losses | 16,243 | 3,019 |
State and political subdivisions | ||
Less Than 12 Months, Fair Value | 129,621 | 80,076 |
Less Than 12 Months, Unrealized Losses | 21,403 | 1,981 |
12 Months Or More, Fair Value | 15,128 | 5,922 |
12 Months Or More, Unrealized Losses | 4,556 | 276 |
Total, Fair Value | 144,749 | 85,998 |
Total, Unrealized Losses | 25,959 | 2,257 |
US Treasury Securities [Member] | ||
Less Than 12 Months, Fair Value | 10,058 | 7,889 |
Less Than 12 Months, Unrealized Losses | 882 | 75 |
12 Months Or More, Fair Value | 0 | 0 |
12 Months Or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 10,058 | 7,889 |
Total, Unrealized Losses | $ 882 | $ 75 |
Investment securities (Detail_2
Investment securities (Details 2) $ in Thousands | Jun. 30, 2022 USD ($) |
Amortized Cost | |
Due Within One Year | $ 1,413 |
Due From One To Five Years | 9,605 |
Due From Five To Ten Years | 74,859 |
Due After Ten Years | 119,977 |
Mortgage-backed Securities | 263,904 |
Total | 469,758 |
Estimated Fair Value | |
Due Within One Year | 1,419 |
Due From One To Five Years | 9,529 |
Due From Five To Ten Years | 68,680 |
Due After Ten Years | 98,977 |
Mortgage-backed Securities | 248,199 |
Total | $ 426,804 |
Investment Securities (Detail_3
Investment Securities (Details Narrative) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Investment Securities | ||
Securities Pledged To Secure Public Deposits | $ 98.5 | $ 98.6 |
Debt Securities Total | $ 43.6 | $ 5.5 |
Loans (Details)
Loans (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Major Classifications | ||
Total Loans | $ 959,473,000 | $ 884,869,000 |
Less allowance for loan losses | (9,789,000) | (9,355,000) |
Net loans | 949,684,000 | 875,514,000 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Major Classifications | ||
Total Loans | 21,378,000 | 23,147,000 |
Construction and Land Development | ||
Major Classifications | ||
Total Loans | 103,241,000 | 95,760,000 |
Single-Family Residential | ||
Major Classifications | ||
Total Loans | 292,685,000 | 266,111,000 |
Commercial | ||
Major Classifications | ||
Total Loans | 386,368,000 | 337,841,000 |
Multifamily and Farmland | ||
Major Classifications | ||
Total Loans | 62,687,000 | 58,366,000 |
Commercial Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 70,691,000 | 91,172,000 |
Farm Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 1,006,000 | 796,000 |
Consumer Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 6,284,000 | 6,436,000 |
All Other Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 15,133,000 | 5,240,000 |
Excellent Quality | ||
Major Classifications | ||
Total Loans | 5,501,000 | 6,875,000 |
Excellent Quality | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Major Classifications | ||
Total Loans | 0 | 0 |
Excellent Quality | Commercial | ||
Major Classifications | ||
Total Loans | 0 | 0 |
Excellent Quality | Multifamily and Farmland | ||
Major Classifications | ||
Total Loans | 0 | 0 |
Excellent Quality | Commercial Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 1,381,000 | 371,000 |
Excellent Quality | Farm Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 0 | 0 |
Excellent Quality | Consumer Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 564,000 | 581,000 |
Excellent Quality | All Other Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 0 | 0 |
Total Real Estate Loans | ||
Major Classifications | ||
Total Loans | $ 866,359,000 | $ 781,225,000 |
Loans (Details 1)
Loans (Details 1) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Loans 30-89 Days Past Due36 | $ 2,045,000 | $ 5,485,000 |
Loans 90 Or More Days Past Due | 541,000 | 746,000 |
Total Past Due Loans | 2,586,000 | 6,231,000 |
Total Current Loans | 956,887,000 | 878,638,000 |
Total Loans | 959,473,000 | 884,869,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Loans 90 Or More Days Past Due | 171,000 | 112,000 |
Total Past Due Loans | 685,000 | 2,705,000 |
Total Current Loans | 20,693,000 | 20,442,000 |
Total Loans | 21,378,000 | 23,147,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 514,000 | 2,593,000 |
Construction and Land Development | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 43,000 | 0 |
Total Current Loans | 103,198,000 | 95,760,000 |
Total Loans | 103,241,000 | 95,760,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 43,000 | 0 |
Single-Family Residential | ||
Loans 90 Or More Days Past Due | 370,000 | 634,000 |
Total Past Due Loans | 1,379,000 | 2,957,000 |
Total Current Loans | 291,306,000 | 263,154,000 |
Total Loans | 292,685,000 | 266,111,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 1,009,000 | 2,323,000 |
Commercial | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 250,000 | 488,000 |
Total Current Loans | 386,118,000 | 337,353,000 |
Total Loans | 386,368,000 | 337,841,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 250,000 | 488,000 |
Multifamily and Farmland | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 0 |
Total Current Loans | 62,687,000 | 58,366,000 |
Total Loans | 62,687,000 | 58,366,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 0 | 0 |
Commercial Loans (Not Secured by Real Estate) | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 99,000 | 43,000 |
Total Current Loans | 70,592,000 | 91,129,000 |
Total Loans | 70,691,000 | 91,172,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 99,000 | 43,000 |
Farm Loans (Not Secured by Real Estate) | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 0 |
Total Current Loans | 1,006,000 | 796,000 |
Total Loans | 1,006,000 | 796,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 0 | 0 |
Consumer Loans (Not Secured by Real Estate) | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 123,000 | 38,000 |
Total Current Loans | 6,161,000 | 6,398,000 |
Total Loans | 6,284,000 | 6,436,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 123,000 | 38,000 |
All Other Loans (Not Secured by Real Estate) | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 7 | 0 |
Total Current Loans | 15,126,000 | 5,240,000 |
Total Loans | 15,133,000 | 5,240,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 7 | 0 |
Excellent Quality | ||
Total Loans | 5,501,000 | 6,875,000 |
Excellent Quality | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 0 | 0 |
Excellent Quality | Commercial | ||
Total Loans | 0 | 0 |
Excellent Quality | Multifamily and Farmland | ||
Total Loans | 0 | 0 |
Excellent Quality | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 1,381,000 | 371,000 |
Excellent Quality | Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Excellent Quality | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 564,000 | 581,000 |
Excellent Quality | All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Total Real Estate Loans | ||
Loans 90 Or More Days Past Due | 541,000 | 746,000 |
Total Past Due Loans | 2,357,000 | 6,150,000 |
Total Current Loans | 864,002,000 | 775,075,000 |
Total Loans | 866,359,000 | 781,225,000 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | $ 1,816,000 | $ 5,404,000 |
Loans (Details 2)
Loans (Details 2) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Non-accrual Loans | ||
Total | $ 3,586,000 | $ 3,230,000 |
Total Real Estate Loans | ||
Non-accrual Loans | ||
Non-accrual Loans | 3,565,000 | 3,179,000 |
Construction and Land Development | ||
Non-accrual Loans | ||
Non-accrual Loans | 0 | 0 |
Single-Family Residential | ||
Non-accrual Loans | ||
Non-accrual Loans | 1,914,000 | 1,642,000 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Non-accrual Loans | ||
Non-accrual Loans | 1,416,000 | 1,232,000 |
Commercial | ||
Non-accrual Loans | ||
Non-accrual Loans | 137,000 | 200,000 |
Multifamily and Farmland | ||
Non-accrual Loans | ||
Non-accrual Loans | 98,000 | 105,000 |
Commercial Loans (Not Secured by Real Estate) | ||
Non-accrual Loans | ||
Non-accrual Loans | 0 | 49,000 |
Consumer Loans (Not Secured by Real Estate) | ||
Non-accrual Loans | ||
Non-accrual Loans | $ 21,000 | $ 2,000 |
Loans (Details 3)
Loans (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Impaired Loans | |||||
Unpaid Contractual Principal Balance | $ 17,559,000 | $ 17,559,000 | $ 19,505,000 | ||
Recorded Investment With No Allowance | 943,000 | 943,000 | 1,008,000 | ||
Recorded Investment With Allowance | 15,582,000 | 15,582,000 | 17,256,000 | ||
Recorded Investment In Impaired Loans | 16,525,000 | 16,525,000 | 18,264,000 | ||
Related Allowance | 727,000 | 727,000 | 789,000 | ||
Average Outstanding Impaired Loans | 16,820,000 | $ 20,151,000 | 17,302,000 | $ 20,512,000 | 19,201,000 |
Interest Income Recognized | 217,000 | 253,000 | 433,000 | 536,000 | 1,003,000 |
Total Real Estate Loans | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 17,389,000 | 17,389,000 | 19,215,000 | ||
Recorded Investment With No Allowance | 943,000 | 943,000 | 959,000 | ||
Recorded Investment With Allowance | 15,414,000 | 15,414,000 | 17,082,000 | ||
Recorded Investment In Impaired Loans | 16,357,000 | 16,357,000 | 18,041,000 | ||
Related Allowance | 726,000 | 726,000 | 787,000 | ||
Average Outstanding Impaired Loans | 16,653,000 | 19,821,000 | 17,116,000 | 20,128,000 | 18,919,000 |
Interest Income Recognized | 214,000 | 248,000 | 428,000 | 524,000 | 983,000 |
Construction and Land Development | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 62,000 | 62,000 | 73,000 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 62,000 | 62,000 | 73,000 | ||
Recorded Investment In Impaired Loans | 62,000 | 62,000 | 73,000 | ||
Related Allowance | 1,000 | 1,000 | 3,000 | ||
Average Outstanding Impaired Loans | 65,000 | 91,000 | 68,000 | 97,000 | 82,000 |
Interest Income Recognized | 1,000 | 1,000 | 3,000 | 3,000 | 6,000 |
Single-Family Residential | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 4,177,000 | 4,177,000 | 5,138,000 | ||
Recorded Investment With No Allowance | 514,000 | 514,000 | 524,000 | ||
Recorded Investment With Allowance | 3,378,000 | 3,378,000 | 4,374,000 | ||
Recorded Investment In Impaired Loans | 3,892,000 | 3,892,000 | 4,898,000 | ||
Related Allowance | 61,000 | 61,000 | 86,000 | ||
Average Outstanding Impaired Loans | 1,231,000 | 6,100,000 | 1,015,000 | 5,731,000 | 6,017,000 |
Interest Income Recognized | 51,000 | 57,000 | 99,000 | 118,000 | 253,000 |
Single-Family Residential - Banco de la Gente Non-Tradtional | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 11,022,000 | 11,022,000 | 11,753,000 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 10,356,000 | 10,356,000 | 10,922,000 | ||
Recorded Investment In Impaired Loans | 10,356,000 | 10,356,000 | 10,922,000 | ||
Related Allowance | 654,000 | 654,000 | 687,000 | ||
Average Outstanding Impaired Loans | 13,273,000 | 10,835,000 | 13,927,000 | 11,407,000 | 10,325,000 |
Interest Income Recognized | 135,000 | 160,000 | 273,000 | 337,000 | 609,000 |
Commercial | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 2,020,000 | 2,020,000 | 2,138,000 | ||
Recorded Investment With No Allowance | 429,000 | 429,000 | 435,000 | ||
Recorded Investment With Allowance | 1,520,000 | 1,520,000 | 1,608,000 | ||
Recorded Investment In Impaired Loans | 1,949,000 | 1,949,000 | 2,043,000 | ||
Related Allowance | 10,000 | 10,000 | 11,000 | ||
Average Outstanding Impaired Loans | 1,984,000 | 2,682,000 | 2,004,000 | 2,779,000 | 2,385,000 |
Interest Income Recognized | 26,000 | 29,000 | 50,000 | 64,000 | 109,000 |
Multifamily and Farmland | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 108,000 | 108,000 | 113,000 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 98,000 | 98,000 | 105,000 | ||
Recorded Investment In Impaired Loans | 98,000 | 98,000 | 105,000 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Outstanding Impaired Loans | 100,000 | 113,000 | 102,000 | 114,000 | 110,000 |
Interest Income Recognized | 1,000 | 1,000 | 3,000 | 2,000 | 6,000 |
Commercial Loans (Not Secured by Real Estate) | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 146,000 | 146,000 | 282,000 | ||
Recorded Investment With No Allowance | 0 | 0 | 49,000 | ||
Recorded Investment With Allowance | 145,000 | 145,000 | 170,000 | ||
Recorded Investment In Impaired Loans | 145,000 | 145,000 | 219,000 | ||
Related Allowance | 1,000 | 1,000 | 2,000 | ||
Average Outstanding Impaired Loans | 151,000 | 315,000 | 174,000 | 362,000 | 271,000 |
Interest Income Recognized | 2,000 | 5,000 | 4,000 | 11,000 | 19,000 |
Consumer Loans (Not Secured by Real Estate) | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 24,000 | 24,000 | 8,000 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 23,000 | 23,000 | 4,000 | ||
Recorded Investment In Impaired Loans | 23,000 | 23,000 | 4,000 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Outstanding Impaired Loans | 16,000 | 15,000 | 12,000 | 22,000 | 11,000 |
Interest Income Recognized | $ 1 | $ 0 | $ 1 | $ 1 | $ 1,000 |
Loans (Details 4)
Loans (Details 4) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance For Loan Losses | ||||
Beginning Balance | $ 9,426 | $ 9,532 | $ 9,355 | $ 9,908 |
Charge-offs | (124) | (151) | (284) | (236) |
Recoveries | 77 | 132 | 237 | 296 |
Provision | 410 | (226) | 481 | (681) |
Ending Balance | 9,789 | 9,287 | 9,789 | 9,287 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 683 | 806 | 683 | 806 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 9,106 | 8,481 | 9,106 | 8,481 |
Allowance For Loan Losses, Ending Balance | 9,789 | 9,287 | 9,789 | 9,287 |
Loans, Ending Balance | 959,473,000 | 883,360,000 | 959,473,000 | 883,360,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 11,472 | 13,954 | 11,472 | 13,954 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 948,001,000 | 874,406,000 | 948,001,000 | 874,406,000 |
Consumer And All Other Loans | ||||
Allowance For Loan Losses | ||||
Beginning Balance | 128,000 | 91,000 | 110,000 | 128,000 |
Charge-offs | (121,000) | (73,000) | (246,000) | (158,000) |
Recoveries | 29,000 | 38,000 | 51,000 | 74,000 |
Provision | 180,000 | 33,000 | 301,000 | 45,000 |
Ending Balance | 216,000 | 89,000 | 216,000 | 89,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 216,000 | 89,000 | 216,000 | 89,000 |
Allowance For Loan Losses, Ending Balance | 216,000 | 89,000 | 216,000 | 89,000 |
Loans, Ending Balance | 21,417,000 | 10,076,000 | 21,417,000 | 10,076,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 21,417,000 | 10,076,000 | 21,417,000 | 10,076,000 |
Unallocated | ||||
Allowance For Loan Losses | ||||
Beginning Balance | 1,395,000 | 1,856,000 | 2,080,000 | 2,010,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (24,000) | 277,000 | (709,000) | 123,000 |
Ending Balance | 1,371,000 | 2,133,000 | 1,371,000 | 2,133,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 1,371,000 | 2,133,000 | 1,371,000 | 2,133,000 |
Allowance For Loan Losses, Ending Balance | 1,371,000 | 2,133,000 | 1,371,000 | 2,133,000 |
Loans, Ending Balance | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 0 | 0 | 0 | 0 |
Construction and Land Development | ||||
Allowance For Loan Losses | ||||
Beginning Balance | 1,163,000 | 1,061,000 | 1,193,000 | 1,196,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 40 | 0 | 90 |
Provision | 109,000 | (63,000) | 79,000 | (248,000) |
Ending Balance | 1,272,000 | 1,038,000 | 1,272,000 | 1,038,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 1,000 | 0 | 1,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 1,272,000 | 1,037,000 | 1,272,000 | 1,037,000 |
Allowance For Loan Losses, Ending Balance | 1,272,000 | 1,038,000 | 1,272,000 | 1,038,000 |
Loans, Ending Balance | 103,241,000 | 90,579,000 | 103,241,000 | 90,579,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 6,000 | 0 | 6,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 103,241,000 | 90,573,000 | 103,241,000 | 90,573,000 |
Single-Family Residential | ||||
Allowance For Loan Losses | ||||
Beginning Balance | 2,095,000 | 1,850,000 | 2,013,000 | 1,843,000 |
Charge-offs | 0 | 0 | (31,000) | 0 |
Recoveries | 10,000 | 18,000 | 127,000 | 78,000 |
Provision | 66,000 | (145,000) | 62,000 | (198,000) |
Ending Balance | 2,171,000 | 1,723,000 | 2,171,000 | 1,723,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 37,000 | 5,000 | 37,000 | 5,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 2,134,000 | 1,718,000 | 2,134,000 | 1,718,000 |
Allowance For Loan Losses, Ending Balance | 2,171,000 | 1,723,000 | 2,171,000 | 1,723,000 |
Loans, Ending Balance | 292,685,000 | 257,901,000 | 292,685,000 | 257,901,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 845,000 | 1,426,000 | 845,000 | 1,426,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 291,840,000 | 256,475,000 | 291,840,000 | 256,475,000 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||||
Allowance For Loan Losses | ||||
Beginning Balance | 841,000 | 1,033,000 | 864,000 | 1,052,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (28,000) | (53,000) | (51,000) | (72,000) |
Ending Balance | 813,000 | 980,000 | 813,000 | 980,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 640,000 | 790,000 | 640,000 | 790,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 173,000 | 190,000 | 173,000 | 190,000 |
Allowance For Loan Losses, Ending Balance | 813,000 | 980,000 | 813,000 | 980,000 |
Loans, Ending Balance | 21,378,000 | 25,198,000 | 21,378,000 | 25,198,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 9,214,000 | 10,722,000 | 9,214,000 | 10,722,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 12,164,000 | 14,476,000 | 12,164,000 | 14,476,000 |
Commercial | ||||
Allowance For Loan Losses | ||||
Beginning Balance | 3,011,000 | 2,252,000 | 2,234,000 | 2,212,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 2,000 | 36,000 | 4,000 | 48,000 |
Provision | 143,000 | (108,000) | 918,000 | (80,000) |
Ending Balance | 3,156,000 | 2,180,000 | 3,156,000 | 2,180,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 6,000 | 10,000 | 6,000 | 10,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 3,150,000 | 2,170,000 | 3,150,000 | 2,170,000 |
Allowance For Loan Losses, Ending Balance | 3,156,000 | 2,180,000 | 3,156,000 | 2,180,000 |
Loans, Ending Balance | 386,368,000 | 340,216,000 | 386,368,000 | 340,216,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 1,413,000 | 1,741,000 | 1,413,000 | 1,741,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 384,955,000 | 338,475,000 | 384,955,000 | 338,475,000 |
Multifamily and Farmland | ||||
Allowance For Loan Losses | ||||
Beginning Balance | 147,000 | 145,000 | 150,000 | 122,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 10,000 | 3,000 | 7,000 | 26,000 |
Ending Balance | 157,000 | 148,000 | 157,000 | 148,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 157,000 | 148,000 | 157,000 | 148,000 |
Allowance For Loan Losses, Ending Balance | 157,000 | 148,000 | 157,000 | 148,000 |
Loans, Ending Balance | 62,687,000 | 59,142,000 | 62,687,000 | 59,142,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 62,687,000 | 59,142,000 | 62,687,000 | 59,142,000 |
Commercial Loans (Not Secured by Real Estate) | ||||
Allowance For Loan Losses | ||||
Beginning Balance | 646,000 | 1,244,000 | 711,000 | 1,345,000 |
Charge-offs | (3) | (78) | (7,000) | (78) |
Recoveries | 36,000 | 0 | 55,000 | 6,000 |
Provision | (46,000) | (170,000) | (126,000) | (277,000) |
Ending Balance | 633,000 | 996,000 | 633,000 | 996,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 633,000 | 996,000 | 633,000 | 996,000 |
Allowance For Loan Losses, Ending Balance | 633,000 | 996,000 | 633,000 | 996,000 |
Loans, Ending Balance | 70,691,000 | 104,506,000 | 70,691,000 | 104,506,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 59 | 0 | 59 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 70,691,000 | 104,447,000 | 70,691,000 | 104,447,000 |
Farm Loans (Not Secured by Real Estate) | ||||
Allowance For Loan Losses | ||||
Beginning Balance | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 0 | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance | 0 | 0 | 0 | 0 |
Loans, Ending Balance | 1,006,000 | 742,000 | 1,006,000 | 742,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Collectively Evaluated For Impairments | $ 1,006,000 | $ 742,000 | $ 1,006,000 | $ 742,000 |
Loans (Details 5)
Loans (Details 5) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Total Loans | $ 959,473,000 | $ 884,869,000 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 21,378,000 | 23,147,000 |
Construction and Land Development | ||
Total Loans | 103,241,000 | 95,760,000 |
Single-Family Residential | ||
Total Loans | 292,685,000 | 266,111,000 |
Commercial | ||
Total Loans | 386,368,000 | 337,841,000 |
Multifamily and Farmland | ||
Total Loans | 62,687,000 | 58,366,000 |
Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 70,691,000 | 91,172,000 |
Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 1,006,000 | 796,000 |
Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 6,284,000 | 6,436,000 |
All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 15,133,000 | 5,240,000 |
All Other Loans (Not Secured by Real Estate) | Total Loans [Member] | ||
Total Loans | 959,473,000 | 884,869,000 |
Excellent Quality | ||
Total Loans | 5,501,000 | 6,875,000 |
Excellent Quality | Construction and Land Development [Member] | ||
Total Loans | 0 | 0 |
Excellent Quality | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 0 | 0 |
Excellent Quality | Commercial | ||
Total Loans | 0 | 0 |
Excellent Quality | Multifamily and Farmland | ||
Total Loans | 0 | 0 |
Excellent Quality | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 1,381,000 | 371,000 |
Excellent Quality | Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Excellent Quality | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 564,000 | 581,000 |
Excellent Quality | All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Excellent Quality | Single-Family Residential [Member] | ||
Total Loans | 3,556,000 | 5,923,000 |
High Quality | ||
Total Loans | 185,983,000 | 169,179,000 |
High Quality | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 0 | 0 |
High Quality | Construction and Land Development | ||
Total Loans | 18,945,000 | 11,752,000 |
High Quality | Single-Family Residential | ||
Total Loans | 116,720,000 | 109,337,000 |
High Quality | Commercial | ||
Total Loans | 31,456,000 | 28,546,000 |
High Quality | Multifamily and Farmland | ||
Total Loans | 18,000 | 19,000 |
High Quality | Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
High Quality | All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 1,530,000 | 1,309,000 |
High Quality | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 15,391,000 | 16,177,000 |
High Quality | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 1,923,000 | 2,039,000 |
Management Attention | ||
Total Loans | 55,590,000 | 68,169,000 |
Management Attention | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 9,627,000 | 10,478,000 |
Management Attention | Construction and Land Development | ||
Total Loans | 3,018,000 | 3,534,000 |
Management Attention | Multifamily and Farmland | ||
Total Loans | 1,922,000 | 2,754,000 |
Management Attention | All Other Loans (Not Secured by Real Estate) [Member] | ||
Total Loans | 137 | 0 |
Management Attention | Single-Family Residential [Member] | ||
Total Loans | 11,599,000 | 14,964,000 |
Management Attention | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 259,000 | 284,000 |
Management Attention | Commercial | ||
Total Loans | 27,554,000 | 30,937,000 |
Management Attention | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 1,473,000 | 5,214,000 |
Watch | ||
Total Loans | 6,774,000 | 10,902,000 |
Watch | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 1,282,000 | 1,703,000 |
Watch | Construction and Land Development | ||
Total Loans | 66,000 | 76,000 |
Watch | Single-Family Residential | ||
Total Loans | 1,199,000 | 2,464,000 |
Watch | Multifamily and Farmland | ||
Total Loans | 528,000 | 543,000 |
Watch | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 874,000 | 1,177,000 |
Watch | Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Watch | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 1,000 | 1,000 |
Watch | All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 149 | 0 |
Watch | Commercial | ||
Total Loans | 2,675,000 | 4,938,000 |
Substandard | ||
Total Loans | 6,683,000 | 6,704,000 |
Substandard | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 2,416,000 | 2,254,000 |
Substandard | Construction and Land Development | ||
Total Loans | 62,000 | 73,000 |
Substandard | Single-Family Residential | ||
Total Loans | 3,512,000 | 3,567,000 |
Substandard | Commercial | ||
Total Loans | 566,000 | 634,000 |
Substandard | Multifamily and Farmland | ||
Total Loans | 98,000 | 105,000 |
Substandard | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 50,000 |
Substandard | Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Substandard | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 29,000 | 21,000 |
Substandard | All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Doubtful | ||
Total Loans | 0 | 0 |
Doubtful | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 0 | 0 |
Doubtful | Construction and Land Development | ||
Total Loans | 0 | 0 |
Doubtful | Single-Family Residential | ||
Total Loans | 0 | 0 |
Doubtful | Commercial | ||
Total Loans | 0 | 0 |
Doubtful | Multifamily and Farmland | ||
Total Loans | 0 | 0 |
Doubtful | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Doubtful | Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Doubtful | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Doubtful | All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Loss | ||
Total Loans | 0 | 0 |
Loss | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 0 | 0 |
Loss | Construction and Land Development | ||
Total Loans | 0 | 0 |
Loss | Single-Family Residential | ||
Total Loans | 0 | 0 |
Loss | Commercial | ||
Total Loans | 0 | 0 |
Loss | Multifamily and Farmland | ||
Total Loans | 0 | 0 |
Loss | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Loss | Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Loss | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Loss | All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 0 | 0 |
Good Quality | ||
Total Loans | 698,942,000 | 623,040,000 |
Good Quality | Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 8,053,000 | 8,712,000 |
Good Quality | Construction and Land Development | ||
Total Loans | 81,150,000 | 80,325,000 |
Good Quality | Commercial | ||
Total Loans | 324,117,000 | 272,786,000 |
Good Quality | Multifamily and Farmland | ||
Total Loans | 60,121,000 | 54,945,000 |
Good Quality | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 51,572,000 | 68,183,000 |
Good Quality | Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 1,005,000 | 792,000 |
Good Quality | All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 13,317,000 | 3,931,000 |
Good Quality | Single-Family Residential [Member] | ||
Total Loans | 156,099,000 | 129,856,000 |
Good Quality | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 3,508,000 | 3,510,000 |
Management Attention | Farm Loans (Not Secured by Real Estate) | ||
Total Loans | $ 1,000 | $ 4,000 |
Loans (Details Narrative)
Loans (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 24, 2020 | Mar. 27, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Impaired Loan | $ 5,100,000 | $ 5,100,000 | $ 5,100,000 | |||||
Allowance For Loan And Leases Losses | 44,000 | 52,000 | ||||||
Interest Income Recognized On Accruing Impaired Loans | 217,000 | $ 253,000 | 433,000 | $ 536,000 | 1,003,000 | |||
Paycheck Protection Program | ||||||||
Ppp Loan Amount | 128,100,000 | $ 128,100,000 | ||||||
Ppp Loan Program Description | On March 27, 2020, President Trump signed the CARES Act, which established a $2 trillion economic stimulus package, including cash payments to individuals, supplemental unemployment insurance benefits and a $349 billion loan program administered through the PPP. | |||||||
Additional Funding Loan, Description | A second round of PPP funding provided a total of $320 billion additional funding for the PPP. | |||||||
Ppp Loan Outstanding Amount | 1,400,000 | 1,400,000 | 1,800,000 | |||||
Recognized Ppp Loan Fee Income | 293,000,000,000 | 1,500,000 | 893,000 | 2,500,000 | ||||
Allowance for Loan and Lease Losses [Member] | ||||||||
Accruing Impaired Loans | 16,500,000 | 19,700,000 | 16,500,000 | 19,700,000 | 18,300,000 | |||
Interest Income Recognized On Accruing Impaired Loans | $ 217,000 | $ 253,000 | 433,000 | $ 536,000 | $ 1,000,000 | |||
Tdr Residential Mortage Portfolio Loan Amount | $ 250,000 |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net Earnings | ||||||
Basic Earnings Per Share | $ 3,217,000 | $ 4,615,000 | $ 6,669,000 | $ 8,736,000 | ||
Effect Of Dilutive Securities: Restricted Stock Units | 0 | 0 | 0 | 0 | ||
Effect Of Dilutive Securities: Shares Held In Deferred Comp Plan | 0 | 0 | 0 | 0 | ||
Diluted Earnings Per Share | $ 3,217,000 | $ 4,615,000 | $ 6,669,000 | $ 8,736,000 | ||
Weighted Average Number Of Shares | ||||||
Basic Earnings Per Share (in Shares) | 5,481,899 | 5,630,580 | 5,489,461 | 5,630,995 | ||
Effect Of Dilutive Securities: Restricted Stock Units (in Shares) | 14,879 | 12,683 | 14,024 | 12,427 | ||
Effect Of Dilutive Securities: Shares Held In Deferred Comp Plan | 164,934 | 157,897 | 164,089 | 157,227 | ||
Diluted Earnings Per Share (in Shares) | 5,661,712 | 5,801,160 | 5,667,574 | 5,800,649 | ||
Per Share Amount | ||||||
Basic Earnings Per Share | $ 0.59 | $ 0.59 | $ 0.82 | $ 0.82 | $ 1.21 | $ 1.55 |
Diluted Earnings Per Share | $ 0.57 | $ 0.57 | $ 0.80 | $ 0.80 | $ 1.18 | $ 1.51 |
Fair Value (Details)
Fair Value (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Estimated Fair Value | $ 426,804,000 | $ 406,549,000 |
Level 1 | U.S. Treasuries | ||
Estimated Fair Value | 0 | 0 |
Level 2 | U.S. Treasuries | ||
Estimated Fair Value | 10,058,000 | 7,889,000 |
U.S. Government Sponsored Enterprises | ||
Estimated Fair Value | 12,692,000 | 14,267,000 |
U.S. Government Sponsored Enterprises | Level 1 | ||
Estimated Fair Value | 0 | 0 |
U.S. Treasuries | Level 3 | ||
Estimated Fair Value | 0 | 0 |
U.S. Government Sponsored Enterprises | Level 2 | ||
Estimated Fair Value | 12,692,000 | 14,267,000 |
U.S. Government Sponsored Enterprises | Level 3 | ||
Estimated Fair Value | 0 | 0 |
Mortgage-Backed Securities | ||
Estimated Fair Value | 248,200,000 | 217,152,000 |
Mortgage-Backed Securities | Level 1 | ||
Estimated Fair Value | 0 | 0 |
Mortgage-Backed Securities | Level 2 | ||
Estimated Fair Value | 248,200,000 | 217,152,000 |
Mortgage-Backed Securities | Level 3 | ||
Estimated Fair Value | 0 | 0 |
State and Political Subdivisions | ||
Estimated Fair Value | 155,854,000 | 167,241,000 |
State and Political Subdivisions | Level 1 | ||
Estimated Fair Value | 0 | 0 |
State and Political Subdivisions | Level 2 | ||
Estimated Fair Value | 155,854,000 | 167,241,000 |
State and Political Subdivisions | Level 3 | ||
Estimated Fair Value | 0 | 0 |
Mutual funds held in deferred compensation trust | ||
Mutual Funds Held In Deferred Compensation Trust | 1,332,000 | 1,510,000 |
Mutual funds held in deferred compensation trust | Level 1 | ||
Mutual Funds Held In Deferred Compensation Trust | 0 | 0 |
Mutual funds held in deferred compensation trust | Level 2 | ||
Mutual Funds Held In Deferred Compensation Trust | 1,332,000 | 1,510,000 |
Mutual funds held in deferred compensation trust | Level 3 | ||
Mutual Funds Held In Deferred Compensation Trust | 0 | 0 |
US Treasury Securities [Member] | ||
Estimated Fair Value | $ 10,058,000 | $ 7,889,000 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Mortgage Loans Held For Sale | $ 1,288,000 | $ 3,637,000 |
Impaired Loans | 15,798 | 17,475 |
Mortgage Loans Held For Sale | ||
Mortgage Loans Held For Sale | $ 1,288,000 | 3,637,000 |
Valuation Technique | Rate lock commitment | |
Significant Unobservable Inputs | N/A | |
General Range Of Significant Unobservable Input Values | N/A | |
Impaired Loans | ||
Impaired Loans | $ 15,798,000 | 17,475,000 |
Valuation Technique | Appraised value and discounted cash flows | |
Significant Unobservable Inputs | Discounts to reflect current market conditions and ultimate collectability | |
General Range Of Significant Unobservable Input Values | 0 - 25 | |
Level 1 | ||
Mortgage Loans Held For Sale | $ 0 | 0 |
Impaired Loans | 0 | 0 |
Level 2 | ||
Mortgage Loans Held For Sale | 0 | 0 |
Impaired Loans | 0 | 0 |
Level 3 | ||
Mortgage Loans Held For Sale | 1,288,000 | 3,637,000 |
Impaired Loans | $ 15,798 | $ 17,475,000 |
Fair Value (Details 2)
Fair Value (Details 2) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investment Securities Available For Sale | $ 426,804 | $ 406,549 |
Mortgage Loans Held For Sale | 1,288 | 3,637 |
Level 1 | ||
Cash And Cash Equivalents | 223,707 | 277,499 |
Investment Securities Available For Sale | 0 | 0 |
Other Investments | 0 | 0 |
Mortgage Loans Held For Sale | 0 | 0 |
Loans, Net | 0 | 0 |
Mutual Funds Held In Deferred Compensation Trust | 0 | 0 |
Deposits | 0 | 0 |
Securities Sold Under Agreements To Repurchase | 0 | 0 |
Junior Subordinated Debentures | 0 | 0 |
Level 2 | ||
Cash And Cash Equivalents | 0 | 0 |
Investment Securities Available For Sale | 426,804 | 406,549 |
Other Investments | 0 | 0 |
Mortgage Loans Held For Sale | 0 | 0 |
Loans, Net | 0 | 0 |
Mutual Funds Held In Deferred Compensation Trust | 1,332 | 1,510 |
Deposits | 0 | 0 |
Securities Sold Under Agreements To Repurchase | 37,146 | 37,094 |
Junior Subordinated Debentures | 15,464 | 15,464 |
Level 3 | ||
Cash And Cash Equivalents | 0 | 0 |
Investment Securities Available For Sale | 0 | 0 |
Other Investments | 2,791 | 3,668 |
Mortgage Loans Held For Sale | 1,288 | 3,637 |
Loans, Net | 924,433 | 855,814 |
Mutual Funds Held In Deferred Compensation Trust | 0 | 0 |
Deposits | 1,415,392 | 1,401,833 |
Securities Sold Under Agreements To Repurchase | 0 | 0 |
Junior Subordinated Debentures | 0 | 0 |
Carrying Amount | ||
Cash And Cash Equivalents | 223,707 | 277,499 |
Investment Securities Available For Sale | 426,804 | 406,549 |
Other Investments | 2,791 | 3,668 |
Mortgage Loans Held For Sale | 1,288 | 3,637 |
Loans, Net | 949,684 | 875,514 |
Mutual Funds Held In Deferred Compensation Trust | 1,332 | 1,510 |
Deposits | 1,493,970 | 1,412,748 |
Securities Sold Under Agreements To Repurchase | 37,146 | 37,094 |
Junior Subordinated Debentures | 15,464 | 15,464 |
Estimated Fair Value | ||
Cash And Cash Equivalents | 223,707 | 277,499 |
Investment Securities Available For Sale | 426,804 | 406,549 |
Other Investments | 2,791 | 3,668 |
Mortgage Loans Held For Sale | 1,288 | 3,637 |
Loans, Net | 924,433 | 855,814 |
Mutual Funds Held In Deferred Compensation Trust | 1,332 | 1,510 |
Deposits | 1,415,392 | 1,401,833 |
Securities Sold Under Agreements To Repurchase | 37,146 | 37,094 |
Junior Subordinated Debentures | $ 15,464 | $ 15,464 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases | ||
Operating Lease Cost | $ 408 | $ 418 |
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities | 670 | 404 |
Right-of-use Assets Obtained In Exchange For New Lease Liabilities - Operating Leases | $ 1,726 | $ 942 |
Weighted-average Remaining Lease Term - Operating Leases | 8 years 6 months 14 days | 6 years 10 months 2 days |
Weighted-average Discount Rate - Operating Leases | 2.14% | 2.71% |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases | ||
2022 | $ 459 | $ 740 |
2023 | 922 | 746 |
2024 | 867 | 691 |
2025 | 812 | 635 |
2026 | 694 | 518 |
Thereafter | 2,975 | 1,838 |
Total | 6,729 | 5,168 |
Less: Imputed Interest | (686) | (491) |
Operating Lease Liability | $ 6,043 | $ 4,677 |
Leases (Details Narrative)
Leases (Details Narrative) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Leases | |
Extended Renewal Lease Terms | 15 years |
Operating Right Of Use Assets | $ 6 |
Operating Lease Liabilities | $ 6 |