Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 22, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 0-49677 | ||
Entity Registrant Name | WEST BANCORPORATION, INC. | ||
Entity Incorporation, State or Country Code | IA | ||
Entity Tax Identification Number | 42-1230603 | ||
Entity Address, Address Line One | 1601 22nd Street | ||
Entity Address, City or Town | West Des Moines | ||
Entity Address, State or Province | IA | ||
Entity Address, Postal Zip Code | 50266 | ||
City Area Code | (515) | ||
Local Phone Number | 222-2300 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | WTBA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 389,961,582 | ||
Entity Common Stock, Shares Outstanding | 16,640,413 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE The definitive proxy statement of West Bancorporation, Inc., which will be filed on or before March 7, 2023, is incorporated by reference into Part III hereof to the extent indicated in such Part. | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Central Index Key | 0001166928 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Firm ID | 49 | ||
Auditor Name | RSM US LLP | ||
Auditor Location | Des Moines, Iowa |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 24,896 | $ 17,555 |
Interest-bearing deposits | 1,643 | 175,270 |
Cash and cash equivalents | 26,539 | 192,825 |
Securities available for sale, at fair value | 664,115 | 758,822 |
Federal Home Loan Bank stock, at cost | 19,336 | 9,965 |
Loans | 2,742,836 | 2,456,196 |
Allowance for loan losses | (25,473) | (28,364) |
Loans, net | 2,717,363 | 2,427,832 |
Premises and equipment, net | 53,124 | 34,568 |
Accrued interest receivable | 11,988 | 8,890 |
Bank-owned life insurance | 44,573 | 43,609 |
Deferred tax assets, net | 36,609 | 10,819 |
Other assets | 39,571 | 12,871 |
Total assets | 3,613,218 | 3,500,201 |
Deposits: | ||
Noninterest-bearing demand | 693,563 | 720,136 |
Interest-bearing demand | 536,226 | 548,242 |
Savings and money market | 1,237,954 | 1,550,636 |
Time | 412,665 | 196,991 |
Total deposits | 2,880,408 | 3,016,005 |
Federal funds purchased and other short-term borrowings | 200,000 | 2,880 |
Subordinated notes, net | 79,369 | 20,465 |
Federal Home Loan Bank advances | 155,000 | 125,000 |
Long-term debt | 51,486 | 51,521 |
Accrued expenses and other liabilities | 35,843 | 24,002 |
Total liabilities | 3,402,106 | 3,239,873 |
COMMITMENTS AND CONTINGENCIES (Note 17) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.01 par value; authorized 50,000,000 shares; no shares issued and outstanding at December 31, 2022 and 2021 | 0 | 0 |
Common stock, no par value; authorized 50,000,000 shares; 16,640,413 and 16,554,846 shares issued and outstanding at December 31, 2022 and 2021, respectively | 3,000 | 3,000 |
Additional paid-in capital | 32,021 | 30,183 |
Retained earnings | 267,562 | 237,782 |
Accumulated other comprehensive loss | (91,471) | (10,637) |
Total stockholders’ equity | 211,112 | 260,328 |
Total liabilities and stockholders’ equity | $ 3,613,218 | $ 3,500,201 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred Stock: | ||
Preferred stock, par value ($ per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock: | ||
Common stock, no par value | $ 0 | $ 0 |
Common stock, share authorized | 50,000,000 | 50,000,000 |
Common stock, share issued | 16,640,413 | 16,554,846 |
Common stock, shares outstanding | 16,640,413 | 16,554,846 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | |||
Loans, including fees | $ 107,095 | $ 95,585 | $ 90,668 |
Securities: | |||
Taxable | 12,524 | 8,542 | 7,818 |
Tax-exempt | 3,527 | 2,861 | 1,443 |
Interest-bearing deposits | 203 | 292 | 304 |
Total interest income | 123,349 | 107,280 | 100,233 |
Interest expense: | |||
Deposits | 22,629 | 7,948 | 11,256 |
Federal funds purchased and other short-term borrowings | 1,764 | 5 | 23 |
Subordinated notes | 2,867 | 1,008 | 1,016 |
Federal Home Loan Bank advances | 2,669 | 2,944 | 4,705 |
Long-term debt | 1,680 | 316 | 400 |
Total interest expense | 31,609 | 12,221 | 17,400 |
Net interest income | 91,740 | 95,059 | 82,833 |
Provision for loan losses | 2,500 | 1,500 | (12,000) |
Net interest income after provision for loan losses | 94,240 | 96,559 | 70,833 |
Noninterest income: | |||
Increase in cash value of bank-owned life insurance | 964 | 923 | 593 |
Loan swap fees | 835 | 66 | 1,572 |
Realized securities gains (losses), net | 0 | 51 | 77 |
Other income | 1,537 | 1,718 | 1,290 |
Total noninterest income | 10,208 | 9,729 | 9,602 |
Noninterest expense: | |||
Salaries and employee benefits | 25,838 | 23,226 | 21,591 |
Occupancy | 4,913 | 5,162 | 4,879 |
Data processing | 2,597 | 2,465 | 2,331 |
Subscriptions and service contracts | 2,137 | 1,777 | 1,333 |
FDIC insurance | 996 | 1,818 | 1,210 |
Professional fees | 874 | 946 | 927 |
Director fees | 814 | 765 | 868 |
Other expenses | 6,882 | 7,221 | 5,915 |
Total noninterest expense | 45,051 | 43,380 | 39,054 |
Income before income taxes | 59,397 | 62,908 | 41,381 |
Income taxes | 12,998 | 13,301 | 8,669 |
Net income | $ 46,399 | $ 49,607 | $ 32,712 |
Basic earnings per common share | $ 2.79 | $ 3 | $ 1.99 |
Diluted earnings per common share | $ 2.76 | $ 2.95 | $ 1.98 |
Deposit accounts [Member] | |||
Noninterest income: | |||
Revenue from contract with customer | $ 2,194 | $ 2,352 | $ 2,360 |
Debit cards [Member] | |||
Noninterest income: | |||
Revenue from contract with customer | 1,969 | 1,948 | 1,632 |
Trust services [Member] | |||
Noninterest income: | |||
Revenue from contract with customer | $ 2,709 | $ 2,671 | $ 2,078 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 46,399 | $ 49,607 | $ 32,712 |
Unrealized holding gains (losses) on securities arising during the period | (132,009) | (14,684) | 6,681 |
Plus: reclassification adjustment for net (gains) losses realized in net income | 0 | (51) | (77) |
Other | (22) | 0 | 0 |
Income tax (expense) benefit | 33,372 | 3,720 | (1,667) |
Other comprehensive income (loss) on available for sale securities, net of tax | (98,659) | (11,015) | 4,937 |
Unrealized holding gains (losses) on derivatives arising during the period | 23,595 | 8,047 | (22,278) |
Plus: reclassification adjustment for net losses realized in net income | 206 | 8,284 | 4,156 |
Plus: reclassification adjustment for amortization of derivative termination costs | 0 | 0 | 31 |
Income tax (expense) benefit | (5,976) | (4,107) | 4,569 |
Other comprehensive income (loss) on derivatives | 17,825 | 12,224 | (13,522) |
Other comprehensive income (loss), net of tax | (80,834) | 1,209 | (8,585) |
Comprehensive income (loss) | $ (34,435) | $ 50,816 | $ 24,127 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2019 | $ 211,820,000 | $ 0 | $ 3,000,000 | $ 27,260,000 | $ 184,821,000 | $ (3,261,000) |
Common stock, shares outstanding at Dec. 31, 2019 | 16,379,752 | |||||
Stockholders' Equity [Roll Forward] | ||||||
Net income | 32,712,000 | 0 | $ 0 | 0 | 32,712,000 | 0 |
Other comprehensive income (loss), net of tax | (8,585,000) | 0 | 0 | 0 | 0 | (8,585,000) |
Cash dividends declared, common stock | (13,815,000) | 0 | 0 | 0 | (13,815,000) | 0 |
Stock-based compensation costs | 2,312,000 | 0 | 0 | 2,312,000 | 0 | 0 |
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes, value | (749,000) | 0 | $ 0 | (749,000) | 0 | 0 |
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes, shares | 89,520 | |||||
Balance at Dec. 31, 2020 | $ 223,695,000 | 0 | $ 3,000,000 | 28,823,000 | 203,718,000 | (11,846,000) |
Common stock, shares outstanding at Dec. 31, 2020 | 16,469,272 | |||||
Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared per common share | $ 0.84 | |||||
Net income | $ 49,607,000 | 0 | $ 0 | 0 | 49,607,000 | 0 |
Other comprehensive income (loss), net of tax | 1,209,000 | 0 | 0 | 0 | 0 | 1,209,000 |
Cash dividends declared, common stock | (15,543,000) | 0 | 0 | 0 | (15,543,000) | 0 |
Stock-based compensation costs | 2,573,000 | 0 | 0 | 2,573,000 | 0 | 0 |
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes, value | (1,213,000) | 0 | $ 0 | (1,213,000) | 0 | 0 |
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes, shares | 85,574 | |||||
Balance at Dec. 31, 2021 | $ 260,328,000 | 0 | $ 3,000,000 | 30,183,000 | 237,782,000 | (10,637,000) |
Common stock, shares outstanding at Dec. 31, 2021 | 16,554,846 | 16,554,846 | ||||
Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared per common share | $ 0.94 | |||||
Net income | $ 46,399,000 | 0 | $ 0 | 0 | 46,399,000 | 0 |
Other comprehensive income (loss), net of tax | (80,834,000) | 0 | 0 | 0 | 0 | (80,834,000) |
Cash dividends declared, common stock | (16,619,000) | 0 | 0 | 0 | (16,619,000) | 0 |
Stock-based compensation costs | 3,357,000 | 0 | 0 | 3,357,000 | 0 | 0 |
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes, value | (1,519,000) | 0 | $ 0 | (1,519,000) | 0 | 0 |
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes, shares | 85,567 | |||||
Balance at Dec. 31, 2022 | $ 211,112,000 | $ 0 | $ 3,000,000 | $ 32,021,000 | $ 267,562,000 | $ (91,471,000) |
Common stock, shares outstanding at Dec. 31, 2022 | 16,640,413 | 16,640,413 | ||||
Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared per common share | $ 1 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per common share | $ 1 | $ 0.94 | $ 0.84 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net income | $ 46,399 | $ 49,607 | $ 32,712 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | (2,500) | (1,500) | 12,000 |
Net amortization and accretion | 2,965 | 2,111 | 1,892 |
Securities gains, net | 0 | (51) | (77) |
Stock-based compensation | 3,357 | 2,573 | 2,312 |
Increase in cash value of bank-owned life insurance | (964) | (923) | (593) |
Depreciation | 1,498 | 1,504 | 1,499 |
(Benefit) provision for deferred income taxes | 1,583 | 82 | (3,025) |
Change in assets and liabilities: | |||
(Increase) decrease in accrued interest receivable | (3,098) | 2,341 | (4,097) |
(Increase) decrease in other assets | 1,005 | 2,118 | (490) |
Increase in accrued expenses and other liabilities | 9,194 | 16 | 152 |
Net Cash Provided by (Used in) Operating Activities | 59,439 | 57,878 | 42,285 |
Cash Flows from Investing Activities: | |||
Proceeds from sales of securities available for sale | 0 | 30,374 | 139,819 |
Proceeds from maturities and calls of securities available for sale | 79,959 | 95,733 | 76,065 |
Purchases of securities available for sale | (120,077) | (481,140) | (232,409) |
Purchases of Federal Home Loan Bank stock | (75,092) | (2,329) | (9,338) |
Proceeds from redemption of Federal Home Loan Bank stock | 65,721 | 4,087 | 10,106 |
Net increase in loans | (287,031) | (175,193) | (341,887) |
Purchase of bank-owned life insurance | 0 | 0 | (7,200) |
Purchases of premises and equipment | (21,311) | (8,743) | (2,319) |
Net Cash Provided by (Used in) Investing Activities, Total | (357,831) | (537,211) | (367,163) |
Cash Flows from Financing Activities: | |||
Net increase (decrease) in deposits | (135,597) | 315,011 | 686,238 |
Net increase (decrease) in federal funds purchased | 197,120 | (2,495) | 2,715 |
Net increase (decrease) in Federal Home Loan Bank advances | 30,000 | (50,000) | (5,000) |
Proceeds from Issuance of Subordinated Long-Term Debt | 58,756 | 0 | 0 |
Proceeds from long-term debt | 0 | 34,500 | 0 |
Principal payments on long-term debt | (35) | (4,537) | (1,366) |
Common stock dividends paid | (16,619) | (15,543) | (13,815) |
Restricted stock units withheld for payroll taxes | (1,519) | (1,213) | (749) |
Net Cash Provided by (Used in) Financing Activities | 132,106 | 275,723 | 668,023 |
Net increase (decrease) in cash and cash equivalents | (166,286) | (203,610) | 343,145 |
Cash and Cash Equivalents: | |||
Beginning | 192,825 | 396,435 | 53,290 |
Ending | 26,539 | 192,825 | 396,435 |
Supplemental Disclosure of Cash Flow Information: | |||
Cash payments for interest | 28,868 | 12,641 | 18,531 |
Cash payments for income taxes | $ 10,630 | $ 13,380 | $ 11,190 |
Subordinated Debt (Notes)
Subordinated Debt (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | Subordinated Notes In July 2003, the Company issued $20,619 in junior subordinated debentures to the Company’s subsidiary trust, West Bancorporation Capital Trust I. The junior subordinated debentures are senior to the Company’s common stock. As a result, the Company must make payments on the junior subordinated debentures (and the related trust preferred securities) before any dividends can be paid on its common stock, and, in the event of the Company’s bankruptcy, dissolution or liquidation, the holders of the debentures must be satisfied before any distribution can be made to the holders of the common stock. The Company has the right to defer distributions on the junior subordinated debentures (and the related trust preferred securities) for up to five years, during which time no dividends may be paid to holders of the Company’s common stock. The junior subordinated debentures have a 30-year term, do not require any principal amortization, and are callable at the issuer’s option. The interest rate is a variable rate based on the 3-month LIBOR plus 3.05 percent. At December 31, 2022, the interest rate was 7.78 percent. Interest is payable quarterly, unless deferred. The Company has never deferred an interest payment. The effective cost of the junior subordinated debentures at December 31, 2022, including amortization of issuance costs, was 7.84 percent. Holders of the trust preferred securities associated with the junior subordinated debentures have no voting rights, are unsecured, and rank junior in priority to all the Company’s indebtedness and senior to the Company’s common stock. The junior subordinated debentures were reported net of unamortized debt issuance costs of $141 and $154 as of December 31, 2022 and 2021, respectively. The Company has an interest rate swap contract that effectively converts $20,000 of the variable-rate junior subordinated debentures to a fixed rate of 4.81 percent. See Note 11 for additional information on the interest rate swap. In addition, the junior subordinated debentures qualify as additional Tier 1 capital of the Company for regulatory purposes. |
Organization and Nature of Busi
Organization and Nature of Business and Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Organization and Nature of Business and Summary of Significant Accounting Policies Organization and nature of business : West Bancorporation, Inc. operates in the commercial banking industry through its wholly-owned subsidiary, West Bank. West Bank is a state chartered bank and has its main office in West Des Moines, Iowa, with five additional offices located in the Des Moines, Iowa, metropolitan area, one office located in Coralville, Iowa, and four offices located in Minnesota, in the cities of Rochester, Owatonna, Mankato and St. Cloud. As used herein, the term “Company” refers to West Bancorporation, Inc., or if the context dictates, West Bancorporation, Inc. and its subsidiary. Significant accounting policies : Accounting estimates and assumptions : The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) established by the Financial Accounting Standards Board (FASB). References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification TM , sometimes referred to as the Codification or ASC. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term are the fair value of financial instruments and the allowance for loan losses. Consolidation policy : The consolidated financial statements include the accounts of the Company, West Bank and West Bank’s special purpose subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In addition, the Company owns an unconsolidated subsidiary, West Bancorporation Capital Trust I (the Trust), which was formed for the purpose of issuing trust preferred securities. In accordance with GAAP, the results of the Trust are recorded on the books of the Company using the equity method of accounting and are not consolidated. Reclassification : Certain amounts in prior year financial statements have been reclassified, with no effect on net income, comprehensive income or stockholders’ equity, to conform with current period presentation. Segment information: An operating segment is generally defined as a component of a business for which discrete financial information is available and whose operating results are regularly reviewed by the chief operating decision-maker. As a community-oriented financial institution, substantially all of West Bank’s operations involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of the community banking activities, which constitutes the Company’s only operating segment for financial reporting purposes. Comprehensive income : Comprehensive income consists of net income and other comprehensive income (OCI). OCI consists of the net change in unrealized gains and losses on the Company’s securities available for sale, including the noncredit-related portion of unrealized gains (losses) of other than temporarily impaired (OTTI) securities, if any, and the change in fair value of derivative instruments designated as hedges. OCI also includes the amortization of derivative termination costs. Cash and cash equivalents and cash flows : For statement of cash flow purposes, the Company considers cash, due from banks and interest-bearing deposits to be cash and cash equivalents. Cash inflows and outflows from loans, deposits, federal funds purchased and short-term borrowings and FHLB advances are reported on a net basis. Securities Available for Sale : Securities that may be sold for general liquidity needs, in response to market interest rate fluctuations, implementation of asset-liability management strategies, funding loan demand, changes in securities prepayment risk or other similar factors are classified as available for sale and reported at fair value, with unrealized gains and losses reported as a separate component of accumulated other comprehensive income (AOCI), net of deferred income taxes. Realized gains and losses on sales of securities are computed on a specific identification basis based on amortized cost. The amortized cost of securities available for sale is adjusted for accretion of discounts to maturity and amortization of premiums over the estimated life of each security or, in the case of callable securities, through the first call date, using the effective yield method. Such amortization and accretion is included in interest income. Interest income on securities is recognized using the interest method according to the terms of the security. The Company evaluates each of its securities whose value has declined below amortized cost to determine whether the decline in fair value is OTTI. When determining whether a security is OTTI, management assesses the severity and duration of the decline in fair value, the length of time expected for recovery, the financial condition of the issuer and other qualitative factors, as well as whether: (a) it has the intent to sell the security, and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery. In instances when a determination is made that an OTTI exists but management does not intend to sell the security and it is not more likely than not that it will be required to sell the security prior to its anticipated repayment or maturity, the OTTI is separated into: (a) the amount of the total OTTI related to a decrease in cash flows expected to be collected from the security (the credit loss); and (b) the amount of the total OTTI related to all other factors. The amount of the total OTTI related to the credit loss is recognized as a charge to earnings. The amount of the total OTTI related to all other factors is recognized in OCI. If the Company intends to sell or it is more likely than not that it will be required to sell a security with OTTI before recovery of its amortized cost basis, the OTTI is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. Federal Home Loan Bank stock : West Bank, as a member of the Federal Home Loan Bank (FHLB) system, is required to maintain an investment in capital stock of the FHLB in an amount equal to 0.12 percent of total assets plus 4.00 percent of outstanding advances from the FHLB and the outstanding principal balance of loans previously issued through the Mortgage Partnership Finance Program (MPF). No ready market exists for the FHLB stock, and it has no quoted market value. The Company evaluates this asset for impairment on a quarterly basis and determined there was no impairment as of December 31, 2022. All shares of FHLB stock are issued and redeemed at par value. Loans : Loans are stated at the principal amounts outstanding, net of unamortized loan fees and costs, with interest income recognized on the interest method based upon the terms of the loan. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans are reported by the portfolio segments identified and are analyzed by management on this basis. All loan policies identified below apply to all segments of the loan portfolio. Delinquencies are determined based on the payment terms of the individual loan agreements. The accrual of interest on past due and other impaired loans is generally discontinued at 90 days past due or when, in the opinion of management, the borrower may be unable to make all payments pursuant to contractual terms. Unless considered collectible, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, if accrued in the current year, or charged to the allowance for loan losses, if accrued in a prior year. Generally, all payments received while a loan is on nonaccrual status are applied to the principal balance of the loan. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is classified as troubled debt restructured (TDR) when the Company separately concludes that a borrower is experiencing financial difficulties and a concession is granted that would not otherwise be considered. Concessions may include a restructuring of the loan terms to alleviate the burden of the borrower’s cash requirements, such as an extension of the payment terms beyond the original maturity date or a change in the interest rate charged. TDR loans with extended payment terms are accounted for as impaired until performance is established. A change to the interest rate would change the classification of a loan to a TDR loan if the restructured loan yields a rate that is below a market rate for that of a new loan with comparable risk. TDR loans with below-market rates are considered impaired until fully collected. TDR loans may also be reported as nonaccrual or 90 days past due if they are not performing per the restructured terms. Based upon its ongoing assessment of credit quality within the loan portfolio, the Company maintains a Watch List, which includes loans classified as Doubtful, Substandard and Watch according to the Company’s classification criteria. These loans involve the anticipated potential for payment defaults or collateral inadequacies. A loan on the Watch List is considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The amount of impairment, if any, and any subsequent changes are included in the specific component of the allowance for loan losses. Allowance for loan losses : The allowance for loan losses is established through a provision for loan losses charged to expense. The allowance is an amount that management believes will be adequate to absorb probable losses on existing loans based on an evaluation of the collectability of loans and prior loss experience. This evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, the review of specific problem loans, and current economic conditions that may affect the borrowers’ ability to pay. Loans are charged-off against the allowance for loan losses when management believes that collectability of the principal is unlikely. While management uses the best information available to make its evaluations, future adjustments to the allowance may be necessary if there are significant changes in economic conditions or the other factors relied upon. The allowance for loan losses consists of specific and general components. The specific component relates to loans that meet the definition of impaired. The general component covers the remaining loans and is based on historical loss experience adjusted for qualitative factors such as delinquency trends, loan growth, economic elements and local market conditions. These same policies are applied to all segments of loans. In addition, regulatory agencies, as integral parts of their examination processes, periodically review the Company’s allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. Premises and equipment : Premises and equipment are stated at cost less accumulated depreciation. The straight-line method of depreciation and amortization is used for calculating expense. The estimated useful lives of premises and equipment range up to 40 years for buildings, up to 10 years for furniture and equipment, and the shorter of the estimated useful life or lease term for leasehold improvements. The Company reviews its property and equipment whenever events indicate that the carrying amount of an asset group may not be recoverable. An impairment loss is recorded when the sum of the undiscounted future cash flows is less than the carrying amount of the asset group. An impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. Other real estate owned : Real estate properties acquired through or in lieu of foreclosure are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Fair value is determined by management by obtaining appraisals or other market value information at the time of foreclosure. Any write-downs in value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management by obtaining updated appraisals or other market value information at least annually. Any subsequent write-downs are recorded as a charge to operations, if necessary, to reduce the carrying value of a property to the updated fair value less estimated selling cost. Net costs related to the holding of properties are included in noninterest expense. As of December 31, 2022 and 2021, the Company had no other real estate owned. Trust assets : Assets held by West Bank in fiduciary or agency capacities, other than trust cash on deposit at West Bank, are not included in the consolidated balance sheets of the Company, as such assets are not assets of West Bank. The Company managed or administered accounts with assets totaling $550,994 and $462,105 as of December 31, 2022 and 2021, respectively. Bank-owned life insurance : The carrying amount of bank-owned life insurance consists of the initial premium paid, plus increases in cash value, less the carrying amount associated with any death benefit received. Death benefits paid in excess of the applicable carrying amount are recognized as income. Increases in cash value and the portion of death benefits recognized as income are exempt from income taxes. Derivatives: The Company uses derivative financial instruments, which consist of interest rate swaps, to assist in its interest rate risk management. All derivatives are measured and reported at fair value on the Company’s consolidated balance sheet as other assets or other liabilities. The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to likely effectiveness as a hedge. The Company documents the strategy for entering into the transactions and the method of assessing ongoing effectiveness. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge that is effective, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. All of the Company’s cash flow hedges qualify for hedge accounting and are considered highly effective. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. To determine fair value, the Company uses third-party pricing models that incorporate assumptions about market conditions and risks that are current at the reporting date. The Company does not use derivative instruments for trading or speculative purposes. The Company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. To accommodate customer needs, the Company on occasion offers loan level interest rate swaps to its customers and offsets its exposure from such contracts by entering into mirror image swaps with a swap counterparty (back-to-back swap program). The interest rate swaps are free-standing derivatives and are recorded at fair value. The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments which do not qualify for hedge accounting. Stock-based compensation: Compensation expense for stock-based awards is recorded over the vesting period, or until the participant reaches full retirement age if less than the vesting period, at the fair value of the award at the time of grant. Certain grants of restricted stock units (RSUs) are subject to performance-based vesting and cliff vest based on those conditions. Compensation expense is recognized over the service period to the extent restricted stock awards are expected to vest. The fair value of RSUs granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date, adjusted for dividends and required post vesting holding periods where applicable. The Company has elected to record forfeitures as they occur. See Note 13 Stock Compensation Plans for further information. Deferred compensation: The West Bancorporation, Inc. Deferred Compensation Plan (the Deferred Compensation Plan) provides certain individuals with additional deferral opportunities in planning for retirement. Eligible participants, including directors and key officers of the Company, may choose to voluntarily defer receipt of a portion of their respective cash compensation. The Deferred Compensation Plan is an unfunded, nonqualified deferred compensation plan intended to conform to the requirements of Section 409A of the Internal Revenue Code. Liabilities accrued under the Deferred Compensation Plan totaled $648 and $432 as of December 31, 2022 and 2021, respectively. Income taxes : The Company files a consolidated federal income tax return. Income tax expense is generally allocated as if the Company and its subsidiary file separate income tax returns. Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, capital losses and net operating losses, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When tax returns are filed, it is highly certain that some tax positions taken will be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the positions taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and is not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. Management does not believe the Company has any material uncertain tax positions to disclose. Interest and penalties, if any, related to income taxes are recorded as other noninterest expense in the consolidated income statements in the year assessed. Revenue recognition : Revenue from deposit account-related fees, including general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer or overdraft activities, is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. Trust services, which include periodic fees earned from trusts and investment management agency accounts, estate administration, custody accounts, individual retirement accounts, and other related services, are charged based on standard agreements or by statute and are recognized over the period of time the Company provides the contracted services. Earnings per common share : Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflect the potential dilution that could occur if the Company’s outstanding RSUs were vested. The dilutive effect is computed using the treasury stock method, which assumes all stock-based awards were exercised and the hypothetical proceeds from exercise were used by the Company to purchase common stock at the average market price during the period. Current accounting developments : In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the financial assets. Under the update, the income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount of financial assets. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Off-balance-sheet arrangements such as commitments to extend credit, guarantees, and standby letters of credit that are not considered derivatives under ASC 815 and are not unconditionally cancellable are also within the scope of this update. Credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. The FASB has also issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-11, ASU No. 2020-02, and ASU No. 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. In December 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326). This update amends the effective date of ASU No. 2016-13 for certain entities, including smaller reporting companies, until fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. The one-time determination date for identifying as a smaller reporting company was November 15, 2019. The Company met the definition of a smaller reporting company as of this date and will adopt the standard effective January 1, 2023. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses ( ASC 326 ): Troubled Debt Restructurings and Vintage Disclosures . The amendments in this ASU improve the usefulness of information provided to investors about certain loan refinancings, restructurings, and write-offs. The amendments eliminate the accounting guidance for troubled debt restructurings (TDRs) by creditors that have adopted ASU No. 2016-13. It also enhances disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Lastly, the amendments require that a public business entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases. The Company is finalizing the processes and assumptions related to the CECL model, including validations and determining the implementation impact as of January 1, 2023. The Company has made preliminary estimates of the implementation impact based on the current status of the CECL model, which are subject to change based on continued finalization of procedures and implementation efforts including execution of internal control framework. The Company expects to recognize a one-time cumulative adjustment to the allowance for credit losses in the first quarter of 2023. Based on the preliminary estimates, the Company is expecting an increase to its allowance for credit losses, including the allowance for unfunded commitments, of between $4,500 and $5,500 upon adoption. The ongoing impact of CECL is dependent on various factors, including credit quality, macroeconomic forecasts and conditions, composition of our loans and securities portfolios, and other management judgments. The transition adjustment to record the allowance for credit losses, which remains subject to further review and analysis by the Company’s management team, may fall outside of the estimated range based on material changes to these factors. The Company does not expect a material allowance for credit losses to be recorded on the available for sale securities portfolio under the newly codified CECL model. The Company performs a quarterly analysis of the risk of credit losses on the available for sale portfolio. Based on this assessment, we deemed the risk of loss to be minimal. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. They provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope . The amendments in this update refined the scope for certain optional expedients and exceptions for contract modifications and hedge accounting to apply to derivative contracts and certain hedging relationships affected by the discounting transition. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 |
Earnings per Common Share (Note
Earnings per Common Share (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings per Common Share The calculation of earnings per common share and diluted earnings per common share is presented below for the years ended December 31, 2022, 2021 and 2020. (in thousands, except per share data) 2022 2021 2020 Net income $ 46,399 $ 49,607 $ 32,712 Weighted average common shares outstanding 16,620 16,534 16,447 Weighted average effect of restricted stock units outstanding 178 255 68 Diluted weighted average common shares outstanding 16,798 16,789 16,515 Basic earnings per common share $ 2.79 $ 3.00 $ 1.99 Diluted earnings per common share $ 2.76 $ 2.95 $ 1.98 Number of anti-dilutive common stock equivalents excluded from diluted earnings per share computation 152 — 243 |
Investment securities (Notes)
Investment securities (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities Disclosure [Text Block] | The following tables show the amortized cost, gross unrealized gains and losses and fair value of securities available for sale, by security type as of December 31, 2022 and 2021. 2022 Amortized Gross Unrealized Gross Unrealized Fair Securities available for sale: State and political subdivisions $ 242,823 $ 4 $ (49,472) $ 193,355 Collateralized mortgage obligations (1) 338,875 — (57,247) 281,628 Mortgage-backed securities (1) 169,451 — (29,171) 140,280 Collateralized loan obligations 37,948 — (1,137) 36,811 Corporate notes 13,750 — (1,709) 12,041 $ 802,847 $ 4 $ (138,736) $ 664,115 2021 Amortized Gross Unrealized Gross Unrealized Fair Securities available for sale: State and political subdivisions $ 231,903 $ 3,161 $ (2,617) $ 232,447 Collateralized mortgage obligations (1) 325,406 1,627 (6,260) 320,773 Mortgage-backed securities (1) 157,607 167 (2,714) 155,060 Collateralized loan obligations 37,880 59 (157) 37,782 Corporate notes 12,750 62 (52) 12,760 $ 765,546 $ 5,076 $ (11,800) $ 758,822 (1) Collateralized mortgage obligations and mortgage-backed securities consist of residential and commercial mortgage pass-through securities and collateralized mortgage obligations guaranteed by FNMA, FHLMC, GNMA and SBA. Securities with an amortized cost of approximately $293,017 and $295,961 as of December 31, 2022 and 2021, respectively, were pledged to secure access to the Federal Reserve discount window, for public fund deposits, and for other purposes as required or permitted by law or regulation. The amortized cost and fair value of securities available for sale as of December 31, 2022, by contractual maturity, are shown below. Certain securities have call features that allow the issuer to call the securities prior to maturity. Expected maturities may differ from contractual maturities for collateralized mortgage obligations and mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, collateralized mortgage obligations and mortgage-backed securities are not included in the maturity categories within the following maturity summary. 2022 Amortized Cost Fair Value Due after five years through ten years $ 71,192 $ 64,809 Due after ten years 223,329 177,398 294,521 242,207 Collateralized mortgage obligations and mortgage-backed securities 508,326 421,908 $ 802,847 $ 664,115 The details of the sales of securities available for sale for the years ended December 31, 2022, 2021 and 2020 are summarized in the following table. 2022 2021 2020 Proceeds from sales $ — $ 30,374 $ 139,819 Gross gains on sales — 282 1,801 Gross losses on sales — 231 1,724 The following tables show the fair value and gross unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous loss position, as of December 31, 2022 and 2021. 2022 Less than 12 months 12 months or longer Total Fair Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized Securities available for sale: State and political subdivisions $ 74,676 $ (11,556) $ 118,487 $ (37,916) $ 193,163 $ (49,472) Collateralized mortgage obligations 107,449 (14,484) 174,179 (42,763) 281,628 (57,247) Mortgage-backed securities 31,350 (4,556) 108,930 (24,615) 140,280 (29,171) Collateralized loan obligations 14,468 (480) 22,343 (657) 36,811 (1,137) Corporate notes 9,185 (1,315) 2,856 (394) 12,041 (1,709) $ 237,128 $ (32,391) $ 426,795 $ (106,345) $ 663,923 $ (138,736) 2021 Less than 12 months 12 months or longer Total Fair Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized Securities available for sale: State and political subdivisions $ 121,574 $ (1,223) $ 33,894 $ (1,394) $ 155,468 $ (2,617) Collateralized mortgage obligations 241,320 (6,149) 2,352 (111) 243,672 (6,260) Mortgage-backed securities 140,168 (2,714) — — 140,168 (2,714) Collateralized loan obligations 22,821 (157) — — 22,821 (157) Corporate notes 4,198 (52) — — 4,198 (52) $ 530,081 $ (10,295) $ 36,246 $ (1,505) $ 566,327 $ (11,800) As of December 31, 2022, securities available for sale with unrealized losses included 117 state and political subdivisions, 79 collateralized mortgage obligations, 27 mortgage-backed securities, six collateralized loan obligations and eight corporate notes. Collateralized loan obligations are debt securities backed by pools of senior secured commercial loans to a diverse group of companies across a broad spectrum of industries. At December 31, 2022, the Company only owned collateralized loan obligations that were rated AAA or AA. The Company believes the unrealized losses on securities available for sale as of December 31, 2022 were due to market conditions rather than reduced estimated cash flows. At December 31, 2022, the Company did not intend to sell these securities, did not anticipate that these securities will be required to be sold before anticipated recovery, and expected full principal and interest to be collected. Therefore, the Company does not consider these securities to have other than temporary impairment as of December 31, 2022. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Loans and Allowance for Loan Losses Loans consisted of the following segments as of December 31, 2022 and 2021. 2022 2021 Commercial $ 519,196 $ 492,815 Real estate: Construction, land and land development 363,014 359,258 1-4 family residential first mortgages 75,211 66,216 Home equity 10,322 8,422 Commercial 1,771,940 1,530,218 Consumer and other 7,292 3,797 2,746,975 2,460,726 Net unamortized fees and costs (4,139) (4,530) $ 2,742,836 $ 2,456,196 Included in commercial loans at December 31, 2022 and 2021, were $1,117 and $22,206, respectively, of loans originated in the Paycheck Protection Program (PPP). The PPP was established by the Coronavirus Aid, Relief and Economic Security Act (CARES Act), enacted on March 27, 2020, and expanded by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, enacted on December 27, 2020 and the American Rescue Plan Act, enacted on March 11, 2021, in response to the Coronavirus Disease 2019 (COVID-19) pandemic. The PPP is administered by the Small Business Administration (SBA). PPP loans may be forgiven by the SBA and are 100 percent guaranteed by the SBA. Therefore, no allowance for loan losses is allocated to PPP loans. The loan portfolio included $1,919,948 and $1,719,109 of fixed-rate loans and $827,027 and $741,617 of variable-rate loans as of December 31, 2022 and 2021, respectively. Real estate loans of approximately $1,190,000 were pledged as security for FHLB advances as of December 31, 2022 and 2021. The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with directors, executive officers, their immediate families, and affiliated companies in which they are principal stockholders or executive officers (commonly referred to as related parties), all of which have been originated, in the opinion of management, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties. None of these loans are past due, on nonaccrual status or restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. There were no loans to a related party that the Company considered adversely classified at December 31, 2022 or 2021. Loan transactions with related parties were as follows for the years ended December 31, 2022 and 2021. 2022 2021 Balance, beginning of year $ 143,768 $ 119,600 New loans 42,371 35,450 Repayments (20,650) (11,282) Effect of change in classification (9,700) — Balance, end of year $ 155,789 $ 143,768 The following table summarizes the recorded investment in impaired loans by segment, broken down by loans with no related allowance and loans with a related allowance and the amount of that allowance as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Recorded Unpaid Related Recorded Unpaid Related With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 322 322 — 349 349 — Home equity — — — — — — Commercial — — — — — — Consumer and other — — — — — — 322 322 — 349 349 — With an allowance recorded: Commercial — — — — — — Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages — — — — — — Home equity — — — — — — Commercial — — — 8,599 8,599 2,500 Consumer and other — — — — — — — — — 8,599 8,599 2,500 Total: Commercial — — — — — — Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 322 322 — 349 349 — Home equity — — — — — — Commercial — — — 8,599 8,599 2,500 Consumer and other — — — — — — Total impaired loans $ 322 $ 322 $ — $ 8,948 $ 8,948 $ 2,500 The balance of impaired loans was composed of loans to one and two borrowers as of December 31, 2022 and 2021, respectively. The Company has no commitments to advance additional funds on any of the impaired loans. The following table summarizes the average recorded investment and interest income recognized on impaired loans by segment for the years ended December 31, 2022, 2021 and 2020. December 31, 2022 December 31, 2021 December 31, 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ — $ — $ — $ — $ 42 $ 2 Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 336 — 363 — 392 5 Home equity — — — — 2 — Commercial — — — — 3,659 17 Consumer and other — — — — — — 336 — 363 — 4,095 24 With an allowance recorded: Commercial — — — 339 — Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages — — — — — — Home equity — — — — — — Commercial 3,915 — 13,002 — 1,217 — Consumer and other — — — — — — 3,915 — 13,002 — 1,556 — Total: Commercial — — — — 381 2 Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 336 — 363 — 392 5 Home equity — — — — 2 — Commercial 3,915 — 13,002 — 4,876 17 Consumer and other — — — — — — Total impaired loans $ 4,251 $ — $ 13,365 $ — $ 5,651 $ 24 Interest income forgone on impaired loans was $144, $534 and $235, respectively, during the years ended December 31, 2022, 2021 and 2020. The following tables provide an analysis of the payment status of the recorded investment in loans as of December 31, 2022 and 2021. December 31, 2022 30-59 60-89 Days Past Due 90 Days or More Past Due Total Current Nonaccrual Loans Total Loans Commercial $ — $ — $ — $ — $ 519,196 $ — $ 519,196 Real estate: Construction, land and land development — — — — 363,014 — 363,014 1-4 family residential first mortgages — — — — 74,889 322 75,211 Home equity — — — — 10,322 — 10,322 Commercial — — — — 1,771,940 — 1,771,940 Consumer and other — — — — 7,292 — 7,292 Total $ — $ — $ — $ — $ 2,746,653 $ 322 $ 2,746,975 December 31, 2021 30-59 60-89 Days Past Due 90 Days or More Past Due Total Current Nonaccrual Loans Total Loans Commercial $ — $ — $ — $ — $ 492,815 $ — $ 492,815 Real estate: Construction, land and land development — — — — 359,258 — 359,258 1-4 family residential first mortgages — — — — 65,867 349 66,216 Home equity — — — — 8,422 — 8,422 Commercial — — — — 1,521,619 8,599 1,530,218 Consumer and other — — — — 3,797 — 3,797 Total $ — $ — $ — $ — $ 2,451,778 $ 8,948 $ 2,460,726 TDR loans totaled $0 and $8,599 as of December 31, 2022 and December 31, 2021, respectively, and were included in the nonaccrual category. There were no loan modifications considered to be TDR that occurred during the years ended December 31, 2022 and 2020. There were six loan modifications considered to be TDR that occurred during the year ended December 31, 2021 related to one borrower. A specific reserve of $2,500 related to these loans was recorded at December 31, 2021. The pre- and post-modification recorded investment in TDR loans that have occurred during the years ended December 31, 2022, 2021 and 2020, totaled $0, $14,044 and $0, respectively. There were no TDR loans that have been modified within the twelve months ended December 31, 2022, 2021 and 2020 that have subsequently had a payment default. A TDR loan is considered to have a payment default when it is past due 30 days or more. The following tables show the recorded investment in loans by credit quality indicator and loan segment as of December 31, 2022 and 2021. December 31, 2022 Pass Watch Substandard Doubtful Total Commercial $ 519,196 $ — $ — $ — $ 519,196 Real estate: Construction, land and land development 362,967 47 — — 363,014 1-4 family residential first mortgages 74,653 148 410 — 75,211 Home equity 10,322 — — — 10,322 Commercial 1,717,904 54,036 — — 1,771,940 Consumer and other 7,292 — — — 7,292 Total $ 2,692,334 $ 54,231 $ 410 $ — $ 2,746,975 December 31, 2021 Pass Watch Substandard Doubtful Total Commercial $ 492,545 $ 270 $ — $ — $ 492,815 Real estate: Construction, land and land development 359,203 55 — — 359,258 1-4 family residential first mortgages 65,596 156 464 — 66,216 Home equity 8,422 — — — 8,422 Commercial 1,458,075 63,544 8,599 — 1,530,218 Consumer and other 3,797 — — — 3,797 Total $ 2,387,638 $ 64,025 $ 9,063 $ — $ 2,460,726 All loans are subject to the assessment of a credit quality indicator. Risk ratings are assigned for each loan at the time of approval, and they change as circumstances dictate during the term of the loan. The Company utilizes a 9-point risk rating scale as shown below, with ratings 1 - 5 included in the Pass column, rating 6 included in the Watch column, ratings 7 - 8 included in the Substandard column, and rating 9 included in the Doubtful column. All loans classified as impaired that are included in the specific evaluation of the allowance for loan losses are included in the Substandard column along with all other loans with ratings of 7 - 8. Risk rating 1: The loan is secured by cash equivalent collateral. Risk rating 2: The loan is secured by properly margined marketable securities, bonds or cash surrender value of life insurance. Risk rating 3: The borrower is in strong financial condition and has strong debt service capacity. The loan is performing as agreed, and the financial characteristics and trends of the borrower exceed industry statistics. Risk rating 4: The borrower’s financial condition is satisfactory and stable. The borrower has satisfactory debt service capacity, and the loan is well secured. The loan is performing as agreed, and the financial characteristics and trends fall in line with industry statistics. Risk rating 5: The borrower’s financial condition is less than satisfactory. The loan is still generally paying as agreed, but strained cash flow may cause some slowness in payments. The collateral values adequately preclude loss on the loan. Financial characteristics and trends lag industry statistics. There may be noncompliance with loan covenants. Risk rating 6: The borrower’s financial condition is deficient. Payment delinquencies may be more common. Collateral values still protect from loss, but margins are narrow. The loan may be reliant on secondary sources of repayment, including liquidation of collateral and guarantor support. Risk rating 7: The loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Well-defined weaknesses exist that jeopardize the liquidation of the debt. The Company is inadequately protected by the valuation or paying capacity of the collateral pledged. If deficiencies are not corrected, there is a distinct possibility that a loss will be sustained. Risk rating 8: All the characteristics of rating 7 exist with the added condition that the loan is past due more than 90 days or there is reason to believe the Company will not receive its principal and interest according to the terms of the loan agreement. Risk rating 9: All the weaknesses inherent in risk ratings 7 and 8 exist with the added condition that collection or liquidation, on the basis of currently known facts, conditions and values, is highly questionable and improbable. A loan reaching this category would most likely be charged off. Credit quality indicators for all loans and the Company’s risk rating process are dynamic and updated on a continuous basis. Risk ratings are updated as circumstances that could affect the repayment of an individual loan are brought to management’s attention through an established monitoring process. Individual lenders initiate changes as appropriate for ratings 1 through 5, and changes for ratings 6 through 9 are initiated via communications with management. The likelihood of loss increases as the risk rating increases and is generally preceded by a loan appearing on the Watch List, which consists of all loans with a risk rating of 6 or worse. Written action plans with firm target dates for resolution of identified problems are maintained and reviewed on a quarterly basis for all segments of loans included on the Watch List. In addition to the Company’s internal credit monitoring practices and procedures, an outsourced independent credit review function is in place to further assess assigned internal risk classifications and monitor compliance with internal lending policies and procedures. In all portfolio segments, the primary risks are that a borrower’s income stream diminishes to the point that it is not able to make scheduled principal and interest payments and any collateral securing the loan declines in value. The risk of declining collateral values is present for most types of loans. Commercial loans consist primarily of loans to businesses for various purposes, including revolving lines to finance current operations, inventory and accounts receivable, and capital expenditure loans to finance equipment and other fixed assets. These loans generally have short maturities, have either adjustable or fixed interest rates, and are either unsecured or secured by inventory, accounts receivable and/or fixed assets. For commercial loans, the primary source of repayment is from the operation of the business. Real estate loans include various types of loans for which the Company holds real property as collateral, and consist of loans on commercial properties and single and multifamily residences. Real estate loans are typically structured to mature or reprice every 5 to 10 years with payments based on amortization periods up to 30 years. The majority of construction loans are to contractors and developers for construction of commercial buildings or residential real estate. These loans typically have maturities of up to 24 months. The Company’s loan policy includes minimum appraisal and other credit guidelines. Consumer loans include loans extended to individuals for household, family and other personal expenditures not secured by real estate. The majority of the Company’s consumer lending is for vehicles, consolidation of personal debts and household improvements. The repayment source for consumer loans, including 1-4 family residential mortgages and home equity loans, is typically wages. The following tables detail changes in the allowance for loan losses by segment for the years ended December 31, 2022, 2021 and 2020. 2022 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Beginning balance $ 4,776 $ 3,646 $ 339 $ 91 $ 19,466 $ 46 $ 28,364 Charge-offs — — (31) — (451) — (482) Recoveries 29 — 33 4 25 — 91 Provision (1) (1) (98) 16 6 (2,465) 42 (2,500) Ending balance $ 4,804 $ 3,548 $ 357 $ 101 $ 16,575 $ 88 $ 25,473 2021 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Beginning balance $ 4,718 $ 2,634 $ 360 $ 114 $ 21,535 $ 75 $ 29,436 Charge-offs — — — — — — — Recoveries 404 — 2 4 13 5 428 Provision (1) (346) 1,012 (23) (27) (2,082) (34) (1,500) Ending balance $ 4,776 $ 3,646 $ 339 $ 91 $ 19,466 $ 46 $ 28,364 2020 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Beginning balance $ 3,875 $ 2,375 $ 216 $ 127 $ 10,565 $ 77 $ 17,235 Charge-offs — — — (1) — — (1) Recoveries 103 — 72 4 12 11 202 Provision (1) 740 259 72 (16) 10,958 (13) 12,000 Ending balance $ 4,718 $ 2,634 $ 360 $ 114 $ 21,535 $ 75 $ 29,436 (1) The negative provisions for the various segments are either related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed and/or improvement in the credit quality factors related to those portfolio segments. The following tables show a breakdown of the allowance for loan losses disaggregated on the basis of impairment analysis method by segment as of December 31, 2022 and 2021. December 31, 2022 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 4,804 3,548 357 101 16,575 88 25,473 Total $ 4,804 $ 3,548 $ 357 $ 101 $ 16,575 $ 88 $ 25,473 December 31, 2021 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ 2,500 $ — $ 2,500 Collectively evaluated for impairment 4,776 3,646 339 91 16,966 46 25,864 Total $ 4,776 $ 3,646 $ 339 $ 91 $ 19,466 $ 46 $ 28,364 The following tables show the recorded investment in loans, exclusive of unamortized fees and costs, disaggregated on the basis of impairment analysis method by segment as of December 31, 2022 and 2021. December 31, 2022 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ — $ — $ 322 $ — $ — $ — $ 322 Collectively evaluated for impairment 519,196 363,014 74,889 10,322 1,771,940 7,292 2,746,653 Total $ 519,196 $ 363,014 $ 75,211 $ 10,322 $ 1,771,940 $ 7,292 $ 2,746,975 December 31, 2021 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ — $ — $ 349 $ — $ 8,599 $ — $ 8,948 Collectively evaluated for impairment 492,815 359,258 65,867 8,422 1,521,619 3,797 2,451,778 Total $ 492,815 $ 359,258 $ 66,216 $ 8,422 $ 1,530,218 $ 3,797 $ 2,460,726 |
Premises and Equipment, Net (No
Premises and Equipment, Net (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Premises and Equipment, Net Premises and equipment consisted of the following as of December 31, 2022 and 2021. 2022 2021 Land $ 10,450 $ 6,117 Buildings 37,173 21,423 Right-of-use assets under operating leases 4,487 5,730 Leasehold improvements 3,578 3,683 Furniture and equipment 9,441 9,094 65,129 46,047 Accumulated depreciation (12,005) (11,479) $ 53,124 $ 34,568 |
Operating Leases Operating Leas
Operating Leases Operating Leases (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases | Operating Leases The Company leases real estate for its main office, six branch offices and office space for operations departments under various operating lease agreements. The lease agreements have maturity dates ranging from May 2023 to February 2033, some of which include options to renew at the Company's discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the measurement of the right-of-use asset and lease liability. The weighted average remaining lives of the lease terms used in the measurement of the operating lease liability were 6.5 years and 6.8 years as of December 31, 2022 and 2021, respectively. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption of this accounting standard and as of the lease commencement date for leases entered into subsequent to January 1, 2019. The weighted average discount rates used in the measurement of the operating lease liabilities were 3.32 percent and 3.26 percent as of December 31, 2022 and 2021, respectively. Operating lease right-of-use assets are included in premises and equipment. Operating lease liabilities of $ 4,681 5,938 Total estimated rental commitments for the operating leases were as follows as of December 31, 2022. 2023 $ 1,413 2024 857 2025 588 2026 503 2027 347 Thereafter 1,534 Total lease payments 5,242 Less: present value discount (561) Present value of lease liabilities $ 4,681 |
Deposits (Notes)
Deposits (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Deposits The scheduled maturities of time deposits were as follows as of December 31, 2022. 2023 $ 395,927 2024 8,914 2025 2,815 2026 2,640 2027 2,369 $ 412,665 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Advance from Federal Home Loan Bank [Abstract] | |
Federal Home Loan Bank Advances, Disclosure [Text Block] | Federal Home Loan Bank Advances and Other Borrowings The Company had fixed-rate FHLB advances totaling $155,000 and $125,000 as of December 31, 2022 and December 31, 2021, respectively. These advances have maturities of one month and are part of a rolling funding program associated with long-term interest rate swaps related to the interest cash flows of the rolling advances. The weighted average contractual rates on these advances were 4.47 percent and 0.32 percent as of December 31, 2022 and December 31, 2021, respectively. The weighted average effective rate for these advances, which includes adjustments for the interest rate swaps, were 2.32 percent and 2.09 percent as of December 31, 2022 and December 31, 2021, respectively. See Note 11 for additional information on interest rate swaps hedging FHLB advances. The Company had overnight and other short-term FHLB advances totaling $200,000 as of December 31, 2022, which are included in federal funds purchased and other short-term borrowings. The FHLB advances are collateralized by FHLB stock and real estate loans, as required by the FHLB’s collateral policy. West Bank had additional borrowing capacity of approximately $372,000 at the FHLB as of December 31, 2022. |
Long-term debt (Notes)
Long-term debt (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
Long-term Debt [Text Block] | Long-Term Debt O n December 15, 2021, the Company entered into a credit agreement with a commercial bank and borrowed $40,000. The borrowing was used to make a capital injection into the Company’s subsidiary, West Bank. Interest under the term note is payable quarterly over five years. Required quarterly princip al payments of $1,250 begin May 2023, with the remaining balance due February 2027. The Company may make additional principal payments without penalty. The interest rate is variable at the Wall Street Journal Prime Rate minus 1.00 percent, which totaled 6.50 percent as of December 31, 2022. In the event of default, the unaffiliated commercial bank may accelerate payment of the loan. The outstanding balance was $40,000 as of both December 31, 2022 and 2021 . The note is secured by 100 percent of West Bank’s stock. West Bank’s special purpose subsidiary has a credit agreement for $11,486. Interest is payable monthly over the term of the agreement with an interest rate of one percent. Monthly principal payments begin in January 2026 and the agreement matures in December 2048. The outstanding balance was $11,486 as of December 31, 2022 and 2021. Future required principal payments for long-term debt as of December 31, 2022 are shown in the table below. 2023 $ 3,750 2024 5,000 2025 5,000 2026 5,446 2027 21,701 Thereafter 10,589 $ 51,486 |
Derivatives (Notes)
Derivatives (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DerivativesThe Company has entered into various interest rate swap agreements as part of its interest rate risk management strategy. The Company uses interest rate swaps to manage its interest rate risk exposure on certain loans, variable-rate and short-term borrowings, and deposits due to interest rate movements. The notional amounts of the interest rate swaps do not represent amounts exchanged by the counterparties, but rather, the notional amount is used to determine, along with other terms of the derivative, the amounts to be exchanged between the counterparties. Interest Rate Swaps Designated as a Cash Flow Hedge: The Company had interest rate swaps designated as cash flow hedges with total notional amounts of $310,000 and $255,000 at December 31, 2022 and 2021, respectively. As of December 31, 2022, the Company had swaps with a total notional amount of $180,000 that hedge the interest payments of rolling fixed-rate one-month funding consisting of FHLB advances or brokered deposits. One of these swaps with a total notional amount of $25,000 is a forward-starting swap with a starting date in September 2023. Also, as of December 31, 2022, the Company had a swap with a total notional amount of $20,000 that effectively converts variable-rate junior subordinated notes to fixed-rate debt and swaps with a total notional amount of $110,000 that hedge the interest payments of certain deposit accounts. In March 2021, the Company terminated interest rate swaps with a total notional amount of $50,000. In the second quarter of 2021, the Company repaid $50,000 of FHLB advances related to these terminated swaps as a result of excess liquidity and in response to market conditions. Pre-tax losses of $3,600 were reclassified from AOCI and recorded in noninterest income at termination. At the inception of each hedge transaction, the Company represented that the underlying principal balance would remain outstanding throughout the hedge transaction, making it probable that sufficient interest payments would exist through the maturity date of the swaps. The cash flow hedges were determined to be fully effective during the remaining terms of the swaps. Therefore, the aggregate fair value of the swaps is recorded in other assets or other liabilities with changes in market value recorded in OCI, net of deferred taxes. See Note 18 for additional fair value information and disclosures. The amounts included in AOCI will be reclassified to interest expense should the hedge no longer be considered effective. Derivatives Not Designated as Accounting Hedges: To accommodate customer needs, the Company on occasion offers loan level interest rate swaps to its customers and offsets its exposure from such contracts by entering into mirror image swaps with a swap counterparty (back-to-back swap program). The interest rate swaps are free-standing derivatives and are recorded at fair value. The Company enters into a floating-rate loan and a fixed-rate swap with our customer. Simultaneously, the Company enters into an offsetting fixed-rate swap with a swap counterparty. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay a swap counterparty the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customers to effectively convert variable-rate loans to fixed-rate loans. The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments, which do not qualify for hedge accounting. The Company entered into forward-starting interest rate swaps with a total notional amount of $100,000 in January 2021 that were not accounting hedges. These swaps were terminated in March 2021, and the resulting gains of $3,781 were recorded in noninterest income. The table below identifies the balance sheet category and fair values of the Company’s derivative instruments as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Cash Flow Hedges: Gross notional amount $ 310,000 $ 255,000 Fair value in other assets 16,284 — Fair value in other liabilities — (7,517) Weighted-average floating rate received 4.53 % 0.39 % Weighted-average fixed rate paid 2.25 % 2.09 % Weighted-average maturity in years 3.3 4.2 Non-Hedging Derivatives: Gross notional amount $ 254,369 $ 172,008 Fair value in other assets 15,309 3,887 Fair value in other liabilities (15,309) (3,887) The following table identifies the pretax gains or losses recognized on the Company’s derivative instruments designated as cash flow hedges for the years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Pre-tax gain (loss) recognized in other comprehensive income $ 23,595 $ 8,047 $ (22,278) Reclassification from AOCI into income: Increase in interest expense $ (206) $ (4,684) $ (4,187) Decrease in noninterest income, swap termination fees — (3,600) — The Company estimates there will be approximately $6,477 reclassified from accumulated other comprehensive income to reduce interest expense through December 31, 2023 related to cash flow hedges. The Company will continue to assess the effectiveness of hedges on a quarterly basis. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The Company files income tax returns in the U.S. federal and various state jurisdictions. Income tax returns for the years 2019 through 2022 remain open to examination by federal and state taxing authorities. No material income tax related interest or penalties were recognized during the years ended December 31, 2022, 2021 or 2020. The following table shows the components of income taxes for the years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Current: Federal $ 8,194 $ 9,789 $ 8,773 State 3,221 3,430 2,921 Deferred: Federal 971 44 (2,564) State 612 38 (461) Income taxes $ 12,998 $ 13,301 $ 8,669 Total income taxes for the years ended December 31, 2022, 2021 and 2020 differed from the amount computed by applying the U.S. federal income tax rate of 21 percent to income before income taxes, as shown in the following table. 2022 2021 2020 Amount Percent Amount Percent Amount Percent Computed expected tax expense $ 12,473 21.0 % $ 13,211 21.0 % $ 8,690 21.0 % State income tax expense, net of federal income tax benefit 2,729 4.6 2,747 4.4 1,846 4.5 Tax-exempt interest income (1,240) (2.1) (1,091) (1.7) (647) (1.6) Nondeductible interest expense to own tax-exempt securities 354 0.6 141 0.2 88 0.2 Tax-exempt increase in cash value of life insurance and gains (203) (0.3) (194) (0.3) (125) (0.3) Stock compensation (320) (0.6) (195) (0.3) 97 0.2 Enactment of state tax reform 649 1.1 — — — — Federal income tax credits (1,468) (2.5) (1,368) (2.2) (1,239) (3.0) Other, net 24 0.1 50 0.1 (41) (0.1) Income taxes $ 12,998 21.9 % $ 13,301 21.2 % $ 8,669 20.9 % In 2022, the Company recorded a one-time increase in state income tax expense related to the June 2022 enactment of changes in the Iowa bank franchise tax rates. This legislation reduces the Iowa bank franchise tax rate applied to apportioned income for 2023 and future years. This future reduction in the state tax rate required the Company to reduce net deferred tax assets by $671 and in turn caused a one-time increase in 2022 tax expense. The effective tax rate for 2022 was 21.9 percent. Excluding this one-time state tax expense, the effective tax rate for 2022 would have been 20.8 percent. Net deferred tax assets consisted of the following components as of December 31, 2022 and 2021. 2022 2021 Deferred tax assets: Allowance for loan losses $ 6,241 $ 7,176 Net unrealized losses on securities available for sale 34,544 1,701 Net unrealized losses on interest rate swaps — 1,903 Lease liabilities 1,147 1,502 Accrued expenses 434 395 Restricted stock unit compensation 1,038 821 State net operating loss carryforward 1,476 1,276 Other 156 139 45,036 14,913 Deferred tax liabilities: Right-of-use assets 1,099 1,450 Deferred loan costs 249 247 Net unrealized gains on interest rate swaps 4,003 — Premises and equipment 1,219 809 Other 381 312 6,951 2,818 Net deferred tax assets before valuation allowance 38,085 12,095 Valuation allowance for deferred tax assets (1,476) (1,276) Net deferred tax assets $ 36,609 $ 10,819 |
Stock Compensation Plans (Notes
Stock Compensation Plans (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Stock Compensation Plans The West Bancorporation, Inc. 2021 Equity Incentive Plan (the 2021 Plan) was approved by the stockholders in April 2021. The 2021 Plan replaced the West Bancorporation, Inc. 2017 Equity Incentive Plan (the 2017 Plan). Upon approval of the 2021 Plan, the 2017 Plan was frozen and no new grants will be made under that plan. Outstanding awards under the 2017 Plan will continue pursuant to their terms and provisions. The 2021 and 2017 Plans are administered by the Compensation Committee of the Board of Directors, which determines the specific individuals who will be granted awards under the 2021 Plan and the type and amount of any such awards. All employees and directors of the Company and its subsidiary are eligible to become participants in the 2021 Plan. Under the terms of the 2021 Plan, the Company may grant a total of 625,000 shares of the Company’s common stock as nonqualified and incentive stock options, stock appreciation rights and stock awards. As of December 31, 2022, 442,643 shares of the Company’s common stock remained available for future awards under the 2021 Plan. Under the 2021 Plan, the Company may grant RSU awards, as determined by the Compensation Committee, that vest upon the completion of future service requirements or specified performance criteria. All RSUs granted through December 31, 2022 under the 2021 and 2017 Plans were at no cost to the participants, and the participants will not be entitled to receive or accrue dividends until the RSUs have vested. Each RSU entitles the participant to receive one share of common stock on the vesting date or upon the participant’s termination due to death or disability, or upon a change in control of the Company if the RSUs are not fully assumed or if the RSUs are assumed and the participant’s employment is thereafter terminated by the Company without cause or by the participant for good reason. If a participant terminates employment prior to the end of the continuous service period other than due to death, disability or retirement, the award is forfeited. If a participant terminates service due to retirement, the RSUs will continue to vest, subject to provisions of the 2021 and 2017 Plans. RSUs granted to employees prior to 2021 vest 20 percent per year over a five year period, and RSUs granted to directors vest after one year. Beginning in 2021, the Company has granted time-based and performance-based RSU awards. The time-based RSU awards granted to employees vest 20 percent per year over a five year period and have a one to three year post-vesting holding period. The time-based RSU awards granted to directors vest after one year and have a one to three year post-vesting holding period. The performance based RSU awards granted to employees cliff vest at the end of a three year performance period based upon the Company meeting certain performance metrics and have a one to three year post-vesting holding period. The following table includes a summary of nonvested RSU activity for the years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Weighted Weighted Weighted Average Average Average Grant Date Grant Date Grant Date Fair Value Fair Value Fair Value (actual amounts, not in thousands) Shares Per Share Shares Per Share Shares Per Share Nonvested shares, beginning balance 408,800 $ 20.07 390,265 $ 19.35 380,600 $ 21.52 Granted 169,357 23.26 156,000 21.61 147,465 15.38 Vested (139,920) 21.38 (135,965) 19.65 (137,800) 21.09 Forfeited — — (1,500) 31.37 — — Nonvested shares, ending balance 438,237 $ 20.87 408,800 $ 20.07 390,265 $ 19.35 The fair value of RSU awards that vested during 2022, 2021 and 2020 was $3,889, $3,280 and $2,150, respectively. Total compensation costs, including director compensation, recorded for the RSUs were $3,357, $2,573 and $2,312 for the years ended December 31, 2022, 2021 and 2020, respectively. The tax benefit related to vesting of RSUs totaled $385 and $233 for the years ended December 31, 2022 and 2021, respectively. The tax expense related to the vesting of RSUs totaled $116 for the year ended December 31, 2020. As of December 31, 2022, there was $4,262 of unrecognized compensation cost related to nonvested RSUs, and the weighted average period over which these remaining costs are expected to be recognized was approximately 1.5 years. |
Employee Savings and Stock Owne
Employee Savings and Stock Ownership Plan (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Savings and Stock Ownership Plan [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Plan The Company has a defined contribution plan covering substantially all of its employees. Matching and discretionary contributions are determined annually by the Board of Directors. The Company matched 100 percent of the first six percent of employee deferrals and made an annual discretionary contribution of four percent of eligible employee compensation for the years ended December 31, 2022, 2021 and 2020. Total matching and discretionary contribution expense for the years ended December 31, 2022, 2021 and 2020, totaled $1,395, $1,319 and $1,256, respectively. As of December 31, 2022 and 2021, the plan held 329,712 and 336,948 shares, respectively, of the Company’s common stock. These shares are included in the computation of earnings per share. Dividends on shares held in the plan may be reinvested in Company common stock or paid in cash to the participants, at the election of the participants. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Comprehensive Income (Loss) The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2022, 2021 and 2020. Unrealized Accumulated Unrealized Gains Other Gains (Losses) (Losses) on Comprehensive on Securities Derivatives Income (Loss) Balance, December 31, 2019 $ 1,057 $ (4,318) $ (3,261) Other comprehensive income (loss) before reclassifications 4,994 (16,653) (11,659) Amounts reclassified from accumulated other comprehensive income (57) 3,131 3,074 Net current period other comprehensive income (loss) 4,937 (13,522) (8,585) Balance, December 31, 2020 5,994 (17,840) (11,846) Other comprehensive income (loss) before reclassifications (10,977) 6,032 (4,945) Amounts reclassified from accumulated other comprehensive income (38) 6,192 6,154 Net current period other comprehensive income (loss) (11,015) 12,224 1,209 Balance, December 31, 2021 (5,021) (5,616) (10,637) Other comprehensive income (loss) before reclassifications (98,637) 17,739 (80,898) Amounts reclassified from accumulated other comprehensive income (22) 86 64 Net current period other comprehensive income (loss) (98,659) 17,825 (80,834) Balance, December 31, 2022 $ (103,680) $ 12,209 $ (91,471) |
Regulatory Capital Requirements
Regulatory Capital Requirements (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Regulatory Capital RequirementsThe Company and West Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements (as shown in the following table) can result in certain mandatory and possibly additional discretionary actions by regulators which, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and West Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory requirements. The Company’s and West Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believed the Company and West Bank met all capital adequacy requirements to which they were subject as of December 31, 2022. The Company’s and West Bank’s capital ratios are presented in the following table as of December 31, 2022 and 2021. Actual For Capital Adequacy Purposes For Capital To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022: Total Capital (to Risk-Weighted Assets) Consolidated $ 408,056 12.08 % $ 270,221 8.00 % $ 354,665 10.50 % $ 337,776 10.00 % West Bank 441,628 13.08 % 270,053 8.00 % 354,445 10.50 % 337,566 10.00 % Tier 1 Capital (to Risk-Weighted Assets) Consolidated 322,583 9.55 % 202,666 6.00 % 287,110 8.50 % 270,221 8.00 % West Bank 416,155 12.33 % 202,540 6.00 % 286,930 8.50 % 270,053 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) Consolidated 302,583 8.96 % 151,999 4.50 % 236,443 7.00 % 219,555 6.50 % West Bank 416,155 12.33 % 151,905 4.50 % 236,296 7.00 % 219,418 6.50 % Tier 1 Capital (to Average Assets) Consolidated 322,583 8.81 % 146,439 4.00 % 146,439 4.00 % 183,049 5.00 % West Bank 416,155 11.37 % 146,367 4.00 % 146,367 4.00 % 182,958 5.00 % As of December 31, 2021: Total Capital (to Risk-Weighted Assets) Consolidated $ 319,329 10.89 % $ 234,670 8.00 % $ 308,004 10.50 % $ 293,337 10.00 % West Bank 354,846 12.10 % 234,621 8.00 % 307,941 10.50 % 293,277 10.00 % Tier 1 Capital (to Risk-Weighted Assets) Consolidated 290,965 9.92 % 176,002 6.00 % 249,337 8.50 % 234,670 8.00 % West Bank 326,482 11.13 % 175,966 6.00 % 249,284 8.50 % 234,621 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) Consolidated 270,965 9.24 % 132,002 4.50 % 205,336 7.00 % 190,669 6.50 % West Bank 326,482 11.13 % 131,975 4.50 % 205,294 7.00 % 190,630 6.50 % Tier 1 Capital (to Average Assets) Consolidated 290,965 8.49 % 137,065 4.00 % 137,065 4.00 % 171,331 5.00 % West Bank 326,482 9.53 % 137,011 4.00 % 137,011 4.00 % 171,264 5.00 % The Company and West Bank are subject to the rules of the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules include the implementation of a 2.5 percent capital conservation buffer that is added to the minimum requirements for capital adequacy purposes. A banking organization with a conservation buffer of less than the required amount will be subject to limitations on capital distributions, including dividend payments, and certain discretionary bonus payments to executive officers. At December 31, 2022, the capital ratios for the Company and West Bank were sufficient to meet the capital conservation buffer. The ability of the Company to pay dividends to its stockholders is dependent upon dividends paid by its subsidiary, West Bank. There are currently no additional restrictions on such dividends other than the general restrictions imposed on all Iowa state-chartered banks by applicable law. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Financial instruments with off-balance sheet risk : The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations that it uses for on-balance sheet instruments. Commitments to lend are subject to borrowers’ continuing compliance with existing credit agreements. The Company’s commitments consisted of the following approximate amounts as of December 31, 2022 and 2021. 2022 2021 Commitments to fund real estate construction loans $ 336,900 $ 294,580 Other commitments to extend credit 727,666 585,678 Standby letters of credit 20,557 17,391 $ 1,085,123 $ 897,649 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract and generally expire within one year. Commitments to extend credit of approximately $196,447 at December 31, 2022, expire beyond one year. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, inventory, equipment, and residential and commercial real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party and generally expire within one year. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Collateral held varies as specified above and is required in instances the Company deems necessary. In the event the customer does not perform in accordance with the terms of the third-party agreement, West Bank would be required to fund the commitment. The maximum potential amount of future payments West Bank could be required to make is represented by the contractual amount for letters of credit shown in the table above. If the commitment is funded, West Bank would be entitled to seek recovery from the customer. At December 31, 2022 and 2021, no amounts have been recorded as liabilities for West Bank’s potential obligations under these guarantees. West Bank previously executed MPF Master Commitments (Commitments) with the FHLB of Des Moines to deliver residential mortgage loans and to guarantee the payment of any realized losses that exceed the FHLB’s first loss account for mortgages delivered under the Commitments. West Bank receives credit enhancement fees from the FHLB for providing this guarantee and continuing to assist with managing the credit risk of the MPF Program residential mortgage loans. The term of the most recent Commitment was through January 16, 2015 and was not renewed. The outstanding balance of mortgage loans sold under the MPF Program was $23,337 and $31,552 at December 31, 2022 and 2021, respectively. The Company had commitments to invest in qualified affordable housing projects totaling $3,431 and $3,986 as of December 31, 2022 and 2021, respectively. West Bank entered into a construction contract for the construction of a new headquarters building in West Des Moines, Iowa in 2022. West Bank will pay the contractor a contract price consisting of the cost of work plus a fee, subject to a guaranteed maximum price of $42,309, with anticipated construction completed in 2024. As of December 31, 2022, there was a remaining commitment of $34,938 under this contract. West Bank also began construction on a new office in Mankato, Minnesota in 2022, which had a remaining commitment of $6,520 as of December 31, 2022. Concentrations of credit risk : Substantially all of the Company’s loans, commitments to extend credit and standby letters of credit have been granted to customers in the Company’s market areas. The concentrations of credit by type of loan are set forth in Note 4. The distribution by type of loan of commitments to extend credit approximates the distribution by type of loan of loans outstanding. Standby letters of credit were granted primarily to commercial borrowers. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts business. The Company’s balance sheet contains securities available for sale and derivative instruments that are recorded at fair value on a recurring basis. The three-level valuation hierarchy for disclosure of fair value is as follows: Level 1 uses quoted market prices in active markets for identical assets or liabilities. Level 2 uses observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 uses unobservable inputs that are not corroborated by market data. The Company’s policy is to recognize transfers between levels at the end of each reporting period, if applicable. There were no transfers between levels of the fair value hierarchy during 2022 or 2021. The following is a description of valuation methodologies used for financial assets and liabilities recorded at fair value on a recurring basis. Securities available for sale: When available, quoted market prices are used to determine the fair value of securities (Level 1). If quoted market prices are not available, the Company determines fair value based on various sources and may apply matrix pricing with observable prices for similar bonds where a price for the identical bond is not observable (Level 2). The fair values of these securities are determined by pricing models that consider observable market data such as interest rate volatilities, yield curves, credit spreads, prices from market makers and live trading systems. Management obtains the fair value of securities at the end of each reporting period via a third-party pricing service. Management reviewed the valuation process used by the third party and believed that process was valid. On a quarterly basis, management corroborates the fair values of a randomly selected sample of securities by obtaining pricing from an independent financial market data provider and compares the two sets of fair values. Any significant variances are reviewed and investigated. For a sample of securities, the fair values are further validated by management, by obtaining details of the inputs used by the pricing service. Those inputs were independently tested, and management concluded the fair values were consistent with GAAP requirements and the securities were properly classified in the fair value hierarchy. Derivative instruments: The Company’s derivative instruments consist of interest rate swaps accounted for as cash flow hedges, as well as interest rate swaps which are accounted for as non-hedging derivatives. The Company’s derivative positions are classified within Level 2 of the fair value hierarchy and are valued using models generally accepted in the financial services industry and that use actively quoted or observable market input values from external market data providers and/or nonbinding broker-dealer quotations. The fair value of the derivatives are determined using discounted cash flow models. These models’ key assumptions include the contractual terms of the respective contract along with significant observable inputs, including interest rates, yield curves, nonperformance risk and volatility. The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis by level as of December 31, 2022 and 2021. 2022 Description Total Level 1 Level 2 Level 3 Financial assets: Securities available for sale: State and political subdivisions $ 193,355 $ — $ 193,355 $ — Collateralized mortgage obligations 281,628 — 281,628 — Mortgage-backed securities 140,280 — 140,280 — Collateralized loan obligations 36,811 — 36,811 — Corporate notes 12,041 — 12,041 — Derivative instrument, interest rate swaps 31,593 — 31,593 — Financial liabilities: Derivative instrument, interest rate swaps $ 15,309 $ — $ 15,309 $ — 2021 Description Total Level 1 Level 2 Level 3 Financial assets: Securities available for sale: State and political subdivisions $ 232,447 $ — $ 232,447 $ — Collateralized mortgage obligations 320,773 — 320,773 — Mortgage-backed securities 155,060 — 155,060 — Collateralized loan obligations 37,782 — 37,782 — Corporate notes 12,760 — 12,760 — Derivative instrument, interest rate swaps 3,887 — 3,887 — Financial liabilities: Derivative instrument, interest rate swaps $ 11,404 $ — $ 11,404 $ — Certain assets are measured at fair value on a nonrecurring basis. That is, they are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Impaired loans with a net book value of $6,099 for which a fair value adjustment was recorded were classified as Level 3 as of December 31, 2021. As of December 31, 2021, impaired loans with a carrying value of $8,599 were reduced by a specific reserve of $2,500, resulting in a reporting fair value of $6,099. As of December 31, 2022, there were no loans for which a fair value adjustment was recorded. In determining the estimated net realizable value of the underlying collateral of impaired loans, the Company primarily uses third-party appraisals or broker opinions which may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available and include consideration of variations in location, size, and income production capacity of the property. Additionally, the appraisals are periodically further adjusted by the Company in consideration of charges that may be incurred in the event of foreclosure and are based on management’s historical knowledge, changes in business factors and changes in market conditions. Because of the high degree of judgment required in estimating the fair value of collateral underlying impaired loans and because of the relationship between fair value and general economic conditions, the Company considers the fair value of impaired loans to be highly sensitive to changes in market conditions. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis. Valuation Technique Unobservable Inputs Range (Weighted Average) December 31, 2022 Impaired loans — — — December 31, 2021 Impaired loans Appraisal of collateral Appraisal adjustment 50%, including selling costs GAAP requires disclosure of the fair value of financial assets and liabilities, including those that are not measured and reported at fair value on a recurring or nonrecurring basis. The following table presents the carrying amounts and approximate fair values of financial assets and liabilities as of December 31, 2022 and 2021. December 31, 2022 Carrying Approximate Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,896 $ 24,896 $ 24,896 $ — $ — Interest-bearing deposits 1,643 1,643 1,643 — — Securities available for sale 664,115 664,115 — 664,115 — Federal Home Loan Bank stock 19,336 19,336 19,336 — — Loans, net 2,717,363 2,582,911 — 2,582,911 — Accrued interest receivable 11,988 11,988 11,988 — — Interest rate swaps 31,593 31,593 — 31,593 — Financial liabilities: Deposits $ 2,880,408 $ 2,880,495 $ — $ 2,880,495 $ — Federal funds purchased and short-term borrowings 200,000 200,000 200,000 — — Subordinated notes, net 79,369 68,047 — 68,047 — Federal Home Loan Bank advances 155,000 155,000 — 155,000 — Long-term debt 51,486 51,486 — 51,486 — Accrued interest payable 3,260 3,260 3,260 — — Interest rate swaps 15,309 15,309 — 15,309 — Off-balance-sheet financial instruments: Commitments to extend credit — — — — — Standby letters of credit — — — — — December 31, 2021 Carrying Approximate Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 17,555 $ 17,555 $ 17,555 $ — $ — Interest-bearing deposits 175,270 175,270 175,270 — — Securities available for sale 758,822 758,822 — 758,822 — Federal Home Loan Bank stock 9,965 9,965 9,965 — — Loans, net 2,427,832 2,453,081 — 2,446,982 6,099 Accrued interest receivable 8,890 8,890 8,890 — — Interest rate swaps 3,887 3,887 — 3,887 — Financial liabilities: Deposits $ 3,016,005 $ 3,016,305 $ — $ 3,016,305 $ — Federal funds purchased and short-term borrowings 2,880 2,880 2,880 — — Subordinated notes, net 20,465 17,122 — 17,122 — Federal Home Loan Bank advances 125,000 125,000 — 125,000 — Long-term debt 51,521 51,521 — 51,521 — Accrued interest payable 519 519 519 — — Interest rate swaps 11,404 11,404 — 11,404 — Off-balance-sheet financial instruments: Commitments to extend credit — — — — — Standby letters of credit — — — — — |
West Bancorporation, Inc. (Pare
West Bancorporation, Inc. (Parent Company Only) Condensed Financial Statements (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | West Bancorporation, Inc. (Parent Company Only) Condensed Financial Statements Balance Sheets December 31, 2022 and 2021 2022 2021 ASSETS Cash $ 5,811 $ 4,646 Investment in West Bank 323,458 316,150 Investment in West Bancorporation Capital Trust I 619 619 Other assets 1,787 28 Total assets $ 331,675 $ 321,443 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Accrued expenses and other liabilities $ 1,194 $ 650 Subordinated notes, net 79,369 20,465 Long-term debt 40,000 40,000 Total liabilities 120,563 61,115 STOCKHOLDERS’ EQUITY Preferred stock — — Common stock 3,000 3,000 Additional paid-in capital 32,021 30,183 Retained earnings 267,562 237,782 Accumulated other comprehensive loss (91,471) (10,637) Total stockholders’ equity 211,112 260,328 Total liabilities and stockholders’ equity $ 331,675 $ 321,443 Statements of Income Years Ended December 31, 2022, 2021 and 2020 2022 2021 2020 Operating income: Equity in net income of West Bank $ 50,185 $ 50,880 $ 34,069 Equity in net income of West Bancorporation Capital Trust I 30 21 25 Other income — — 3 Total operating income 50,215 50,901 34,097 Operating expenses: Interest on subordinated notes 2,867 1,008 1,016 Interest on long-term debt 1,565 201 283 Other expenses 576 542 550 Total operating expenses 5,008 1,751 1,849 Income before income taxes 45,207 49,150 32,248 Income tax benefits (1,192) (457) (464) Net income $ 46,399 $ 49,607 $ 32,712 Statements of Cash Flows Years Ended December 31, 2022, 2021 and 2020 2022 2021 2020 Cash Flows from Operating Activities: Net income $ 46,399 $ 49,607 $ 32,712 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of West Bank (50,185) (50,880) (34,069) Equity in net income of West Bancorporation Capital Trust I (30) (21) (25) Dividends received from West Bank 21,000 21,500 16,800 Dividends received from West Bancorporation Capital Trust I 30 21 25 Amortization 148 13 13 Deferred income taxes (8) 1 2 Change in assets and liabilities: Decrease in other assets (116) (20) (3) Increase (decrease) in accrued expenses and other liabilities 440 5 (49) Net cash provided by operating activities 17,678 20,226 15,406 Cash Flows from Investing Activities: Capital contribution to West Bank (58,650) (34,500) — Net cash used in investing activities (58,650) (34,500) — Cash Flows from Financing Activities: Proceeds from long-term debt 58,756 34,500 — Principal payments on long-term debt — (4,500) (1,250) Common stock cash dividends (16,619) (15,543) (13,815) Net cash provided by (used in) financing activities 42,137 14,457 (15,065) Net increase in cash 1,165 183 341 Cash: Beginning 4,646 4,463 4,122 Ending $ 5,811 $ 4,646 $ 4,463 |
Organization and Nature of Bu_2
Organization and Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Accounting estimates and assumptions : The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) established by the Financial Accounting Standards Board (FASB). References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification TM , sometimes referred to as the Codification or ASC. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term are the fair value of financial instruments and the allowance for loan losses. |
Consolidation, Policy [Policy Text Block] | Consolidation policy: The consolidated financial statements include the accounts of the Company, West Bank and West Bank’s special purpose subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In addition, the Company owns an unconsolidated subsidiary, West Bancorporation Capital Trust I (the Trust), which was formed for the purpose of issuing trust preferred securities. In accordance with GAAP, the results of the Trust are recorded on the books of the Company using the equity method of accounting and are not consolidated |
Reclassification, Comparability Adjustment | Reclassification: Certain amounts in prior year financial statements have been reclassified, with no effect on net income, comprehensive income or stockholders’ equity, to conform with current period presentation. |
Segment Reporting, Policy [Policy Text Block] | Segment information: An operating segment is generally defined as a component of a business for which discrete financial information is available and whose operating results are regularly reviewed by the chief operating decision-maker. As a community-oriented financial institution, substantially all of West Bank’s operations involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of the community banking activities, which constitutes the Company’s only operating segment for financial reporting purposes. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income : Comprehensive income consists of net income and other comprehensive income (OCI). OCI consists of the net change in unrealized gains and losses on the Company’s securities available for sale, including the noncredit-related portion of unrealized gains (losses) of other than temporarily impaired (OTTI) securities, if any, and the change in fair value of derivative instruments designated as hedges. OCI also includes the amortization of derivative termination costs. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents and cash flows : For statement of cash flow purposes, the Company considers cash, due from banks and interest-bearing deposits to be cash and cash equivalents. Cash inflows and outflows from loans, deposits, federal funds purchased and short-term borrowings and FHLB advances are reported on a net basis. |
Investment Securities, Policy [Policy Text Block] | Securities Available for Sale : Securities that may be sold for general liquidity needs, in response to market interest rate fluctuations, implementation of asset-liability management strategies, funding loan demand, changes in securities prepayment risk or other similar factors are classified as available for sale and reported at fair value, with unrealized gains and losses reported as a separate component of accumulated other comprehensive income (AOCI), net of deferred income taxes. Realized gains and losses on sales of securities are computed on a specific identification basis based on amortized cost. The amortized cost of securities available for sale is adjusted for accretion of discounts to maturity and amortization of premiums over the estimated life of each security or, in the case of callable securities, through the first call date, using the effective yield method. Such amortization and accretion is included in interest income. Interest income on securities is recognized using the interest method according to the terms of the security. |
Federal Home Loan Bank Stock [Policy Text Block] | Federal Home Loan Bank stock : West Bank, as a member of the Federal Home Loan Bank (FHLB) system, is required to maintain an investment in capital stock of the FHLB in an amount equal to 0.12 percent of total assets plus 4.00 percent of outstanding advances from the FHLB and the outstanding principal balance of loans previously issued through the Mortgage Partnership Finance Program (MPF). No ready market exists for the FHLB stock, and it has no quoted market value. The Company evaluates this asset for impairment on a quarterly basis and determined there was no impairment as of December 31, 2022. All shares of FHLB stock are issued and redeemed at par value. |
Loans and Leases Receivable, Fee and Interest Income [Policy Text Block] | Loans: Loans are stated at the principal amounts outstanding, net of unamortized loan fees and costs, with interest income recognized on the interest method based upon the terms of the loan. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. |
Loans and Leases Receivable, Nonaccrual Loan and Lease Status, Policy [Policy Text Block] | Delinquencies are determined based on the payment terms of the individual loan agreements. The accrual of interest on past due and other impaired loans is generally discontinued at 90 days past due or when, in the opinion of management, the borrower may be unable to make all payments pursuant to contractual terms. Unless considered collectible, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, if accrued in the current year, or charged to the allowance for loan losses, if accrued in a prior year. Generally, all payments received while a loan is on nonaccrual status are applied to the principal balance of the loan. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Loans and Leases Receivable, Troubled Debt Restructuring [Policy Text Block] | A loan is classified as troubled debt restructured (TDR) when the Company separately concludes that a borrower is experiencing financial difficulties and a concession is granted that would not otherwise be considered. Concessions may include a restructuring of the loan terms to alleviate the burden of the borrower’s cash requirements, such as an extension of the payment terms beyond the original maturity date or a change in the interest rate charged. TDR loans with extended payment terms are accounted for as impaired until performance is established. A change to the interest rate would change the classification of a loan to a TDR loan if the restructured loan yields a rate that is below a market rate for that of a new loan with comparable risk. TDR loans with below-market rates are considered impaired until fully collected. TDR loans may also be reported as nonaccrual or 90 days past due if they are not performing per the restructured terms. |
Impaired Financing Receivable, Policy [Policy Text Block] | Based upon its ongoing assessment of credit quality within the loan portfolio, the Company maintains a Watch List, which includes loans classified as Doubtful, Substandard and Watch according to the Company’s classification criteria. These loans involve the anticipated potential for payment defaults or collateral inadequacies. A loan on the Watch List is considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The amount of impairment, if any, and any subsequent changes are included in the specific component of the allowance for loan losses. |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for loan losses : The allowance for loan losses is established through a provision for loan losses charged to expense. The allowance is an amount that management believes will be adequate to absorb probable losses on existing loans based on an evaluation of the collectability of loans and prior loss experience. This evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, the review of specific problem loans, and current economic conditions that may affect the borrowers’ ability to pay. Loans are charged-off against the allowance for loan losses when management believes that collectability of the principal is unlikely. While management uses the best information available to make its evaluations, future adjustments to the allowance may be necessary if there are significant changes in economic conditions or the other factors relied upon. The allowance for loan losses consists of specific and general components. The specific component relates to loans that meet the definition of impaired. The general component covers the remaining loans and is based on historical loss experience adjusted for qualitative factors such as delinquency trends, loan growth, economic elements and local market conditions. These same policies are applied to all segments of loans. In addition, regulatory agencies, as integral parts of their examination processes, periodically review the Company’s allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. |
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and equipment : Premises and equipment are stated at cost less accumulated depreciation. The straight-line method of depreciation and amortization is used for calculating expense. The estimated useful lives of premises and equipment range up to 40 years for buildings, up to 10 years for furniture and equipment, and the shorter of the estimated useful life or lease term for leasehold improvements. |
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure [Policy Text Block] | Other real estate owned: Real estate properties acquired through or in lieu of foreclosure are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Fair value is determined by management by obtaining appraisals or other market value information at the time of foreclosure. Any write-downs in value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management by obtaining updated appraisals or other market value information at least annually. Any subsequent write-downs are recorded as a charge to operations, if necessary, to reduce the carrying value of a property to the updated fair value less estimated selling cost. Net costs related to the holding of properties are included in noninterest expense. |
Trust Assets Policy [Policy Text Block] | Trust assets: Assets held by West Bank in fiduciary or agency capacities, other than trust cash on deposit at West Bank, are not included in the consolidated balance sheets of the Company, as such assets are not assets of West Bank. |
Bank-Owned Life Insurance [Policy Text Block] | Bank-owned life insurance : The carrying amount of bank-owned life insurance consists of the initial premium paid, plus increases in cash value, less the carrying amount associated with any death benefit received. Death benefits paid in excess of the applicable carrying amount are recognized as income. Increases in cash value and the portion of death benefits recognized as income are exempt from income taxes. |
Derivatives, Policy [Policy Text Block] | Derivatives: The Company uses derivative financial instruments, which consist of interest rate swaps, to assist in its interest rate risk management. All derivatives are measured and reported at fair value on the Company’s consolidated balance sheet as other assets or other liabilities. The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to likely effectiveness as a hedge. The Company documents the strategy for entering into the transactions and the method of assessing ongoing effectiveness. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge that is effective, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. All of the Company’s cash flow hedges qualify for hedge accounting and are considered highly effective. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. To determine fair value, the Company uses third-party pricing models that incorporate assumptions about market conditions and risks that are current at the reporting date. The Company does not use derivative instruments for trading or speculative purposes. The Company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. To accommodate customer needs, the Company on occasion offers loan level interest rate swaps to its customers and offsets its exposure from such contracts by entering into mirror image swaps with a swap counterparty (back-to-back swap program). The interest rate swaps are free-standing derivatives and are recorded at fair value. The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments which do not qualify for hedge accounting. |
Share-based Payment Arrangement [Policy Text Block] | Stock-based compensation: Compensation expense for stock-based awards is recorded over the vesting period, or until the participant reaches full retirement age if less than the vesting period, at the fair value of the award at the time of grant. Certain grants of restricted stock units (RSUs) are subject to performance-based vesting and cliff vest based on those conditions. Compensation expense is recognized over the service period to the extent restricted stock awards are expected to vest. The fair value of RSUs granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date, adjusted for dividends and required post vesting holding periods where applicable. The Company has elected to record forfeitures as they occur |
Deferred compensation [Policy Text Block] | Deferred compensation: The West Bancorporation, Inc. Deferred Compensation Plan (the Deferred Compensation Plan) provides certain individuals with additional deferral opportunities in planning for retirement. Eligible participants, including directors and key officers of the Company, may choose to voluntarily defer receipt of a portion of their respective cash compensation. The Deferred Compensation Plan is an unfunded, nonqualified deferred compensation plan intended to conform to the requirements of Section 409A of the Internal Revenue Code. |
Income Tax, Policy [Policy Text Block] | Income taxes : The Company files a consolidated federal income tax return. Income tax expense is generally allocated as if the Company and its subsidiary file separate income tax returns. Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, capital losses and net operating losses, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When tax returns are filed, it is highly certain that some tax positions taken will be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the positions taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and is not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. Management does not believe the Company has any material uncertain tax positions to disclose. Interest and penalties, if any, related to income taxes are recorded as other noninterest expense in the consolidated income statements in the year assessed. |
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block] | Revenue recognition: Revenue from deposit account-related fees, including general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer or overdraft activities, is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. Trust services, which include periodic fees earned from trusts and investment management agency accounts, estate administration, custody accounts, individual retirement accounts, and other related services, are charged based on standard agreements or by statute and are recognized over the period of time the Company provides the contracted services. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per common share: Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflect the potential dilution that could occur if the Company’s outstanding RSUs were vested. The dilutive effect is computed using the treasury stock method, which assumes all stock-based awards were exercised and the hypothetical proceeds from exercise were used by the Company to purchase common stock at the average market price during the period. |
New Accounting Pronouncements, Policy [Policy Text Block] | Current accounting developments : In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the financial assets. Under the update, the income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount of financial assets. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Off-balance-sheet arrangements such as commitments to extend credit, guarantees, and standby letters of credit that are not considered derivatives under ASC 815 and are not unconditionally cancellable are also within the scope of this update. Credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. The FASB has also issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-11, ASU No. 2020-02, and ASU No. 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. In December 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326). This update amends the effective date of ASU No. 2016-13 for certain entities, including smaller reporting companies, until fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. The one-time determination date for identifying as a smaller reporting company was November 15, 2019. The Company met the definition of a smaller reporting company as of this date and will adopt the standard effective January 1, 2023. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses ( ASC 326 ): Troubled Debt Restructurings and Vintage Disclosures . The amendments in this ASU improve the usefulness of information provided to investors about certain loan refinancings, restructurings, and write-offs. The amendments eliminate the accounting guidance for troubled debt restructurings (TDRs) by creditors that have adopted ASU No. 2016-13. It also enhances disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Lastly, the amendments require that a public business entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases. The Company is finalizing the processes and assumptions related to the CECL model, including validations and determining the implementation impact as of January 1, 2023. The Company has made preliminary estimates of the implementation impact based on the current status of the CECL model, which are subject to change based on continued finalization of procedures and implementation efforts including execution of internal control framework. The Company expects to recognize a one-time cumulative adjustment to the allowance for credit losses in the first quarter of 2023. Based on the preliminary estimates, the Company is expecting an increase to its allowance for credit losses, including the allowance for unfunded commitments, of between $4,500 and $5,500 upon adoption. The ongoing impact of CECL is dependent on various factors, including credit quality, macroeconomic forecasts and conditions, composition of our loans and securities portfolios, and other management judgments. The transition adjustment to record the allowance for credit losses, which remains subject to further review and analysis by the Company’s management team, may fall outside of the estimated range based on material changes to these factors. The Company does not expect a material allowance for credit losses to be recorded on the available for sale securities portfolio under the newly codified CECL model. The Company performs a quarterly analysis of the risk of credit losses on the available for sale portfolio. Based on this assessment, we deemed the risk of loss to be minimal. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. They provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope . The amendments in this update refined the scope for certain optional expedients and exceptions for contract modifications and hedge accounting to apply to derivative contracts and certain hedging relationships affected by the discounting transition. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 |
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | Financial instruments with off-balance sheet risk: The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations that it uses for on-balance sheet instruments. Commitments to lend are subject to borrowers’ continuing compliance with existing credit agreements. |
Fair Value Measurement, Policy [Policy Text Block] | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts business. The Company’s balance sheet contains securities available for sale and derivative instruments that are recorded at fair value on a recurring basis. The three-level valuation hierarchy for disclosure of fair value is as follows: Level 1 uses quoted market prices in active markets for identical assets or liabilities. Level 2 uses observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 uses unobservable inputs that are not corroborated by market data. The Company’s policy is to recognize transfers between levels at the end of each reporting period, if applicable. There were no transfers between levels of the fair value hierarchy during 2022 or 2021. The following is a description of valuation methodologies used for financial assets and liabilities recorded at fair value on a recurring basis. Securities available for sale: When available, quoted market prices are used to determine the fair value of securities (Level 1). If quoted market prices are not available, the Company determines fair value based on various sources and may apply matrix pricing with observable prices for similar bonds where a price for the identical bond is not observable (Level 2). The fair values of these securities are determined by pricing models that consider observable market data such as interest rate volatilities, yield curves, credit spreads, prices from market makers and live trading systems. Management obtains the fair value of securities at the end of each reporting period via a third-party pricing service. Management reviewed the valuation process used by the third party and believed that process was valid. On a quarterly basis, management corroborates the fair values of a randomly selected sample of securities by obtaining pricing from an independent financial market data provider and compares the two sets of fair values. Any significant variances are reviewed and investigated. For a sample of securities, the fair values are further validated by management, by obtaining details of the inputs used by the pricing service. Those inputs were independently tested, and management concluded the fair values were consistent with GAAP requirements and the securities were properly classified in the fair value hierarchy. |
Fair Value Transfer, Policy [Policy Text Block] | The Company’s policy is to recognize transfers between levels at the end of each reporting period, if applicable. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | GAAP requires disclosure of the fair value of financial assets and liabilities, including those that are not measured and reported at fair value on a recurring or nonrecurring basis. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation of earnings per common share and diluted earnings per common share is presented below for the years ended December 31, 2022, 2021 and 2020. (in thousands, except per share data) 2022 2021 2020 Net income $ 46,399 $ 49,607 $ 32,712 Weighted average common shares outstanding 16,620 16,534 16,447 Weighted average effect of restricted stock units outstanding 178 255 68 Diluted weighted average common shares outstanding 16,798 16,789 16,515 Basic earnings per common share $ 2.79 $ 3.00 $ 1.99 Diluted earnings per common share $ 2.76 $ 2.95 $ 1.98 Number of anti-dilutive common stock equivalents excluded from diluted earnings per share computation 152 — 243 |
Investment securities (Tables)
Investment securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized Gain (Loss) on Investments [Table Text Block] | The following tables show the amortized cost, gross unrealized gains and losses and fair value of securities available for sale, by security type as of December 31, 2022 and 2021. 2022 Amortized Gross Unrealized Gross Unrealized Fair Securities available for sale: State and political subdivisions $ 242,823 $ 4 $ (49,472) $ 193,355 Collateralized mortgage obligations (1) 338,875 — (57,247) 281,628 Mortgage-backed securities (1) 169,451 — (29,171) 140,280 Collateralized loan obligations 37,948 — (1,137) 36,811 Corporate notes 13,750 — (1,709) 12,041 $ 802,847 $ 4 $ (138,736) $ 664,115 2021 Amortized Gross Unrealized Gross Unrealized Fair Securities available for sale: State and political subdivisions $ 231,903 $ 3,161 $ (2,617) $ 232,447 Collateralized mortgage obligations (1) 325,406 1,627 (6,260) 320,773 Mortgage-backed securities (1) 157,607 167 (2,714) 155,060 Collateralized loan obligations 37,880 59 (157) 37,782 Corporate notes 12,750 62 (52) 12,760 $ 765,546 $ 5,076 $ (11,800) $ 758,822 (1) Collateralized mortgage obligations and mortgage-backed securities consist of residential and commercial mortgage pass-through securities and collateralized mortgage obligations guaranteed by FNMA, FHLMC, GNMA and SBA. |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of securities available for sale as of December 31, 2022, by contractual maturity, are shown below. Certain securities have call features that allow the issuer to call the securities prior to maturity. Expected maturities may differ from contractual maturities for collateralized mortgage obligations and mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, collateralized mortgage obligations and mortgage-backed securities are not included in the maturity categories within the following maturity summary. 2022 Amortized Cost Fair Value Due after five years through ten years $ 71,192 $ 64,809 Due after ten years 223,329 177,398 294,521 242,207 Collateralized mortgage obligations and mortgage-backed securities 508,326 421,908 $ 802,847 $ 664,115 |
Schedule of Realized Gain (Loss) [Table Text Block] | The details of the sales of securities available for sale for the years ended December 31, 2022, 2021 and 2020 are summarized in the following table. 2022 2021 2020 Proceeds from sales $ — $ 30,374 $ 139,819 Gross gains on sales — 282 1,801 Gross losses on sales — 231 1,724 |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables show the fair value and gross unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous loss position, as of December 31, 2022 and 2021. 2022 Less than 12 months 12 months or longer Total Fair Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized Securities available for sale: State and political subdivisions $ 74,676 $ (11,556) $ 118,487 $ (37,916) $ 193,163 $ (49,472) Collateralized mortgage obligations 107,449 (14,484) 174,179 (42,763) 281,628 (57,247) Mortgage-backed securities 31,350 (4,556) 108,930 (24,615) 140,280 (29,171) Collateralized loan obligations 14,468 (480) 22,343 (657) 36,811 (1,137) Corporate notes 9,185 (1,315) 2,856 (394) 12,041 (1,709) $ 237,128 $ (32,391) $ 426,795 $ (106,345) $ 663,923 $ (138,736) 2021 Less than 12 months 12 months or longer Total Fair Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized Securities available for sale: State and political subdivisions $ 121,574 $ (1,223) $ 33,894 $ (1,394) $ 155,468 $ (2,617) Collateralized mortgage obligations 241,320 (6,149) 2,352 (111) 243,672 (6,260) Mortgage-backed securities 140,168 (2,714) — — 140,168 (2,714) Collateralized loan obligations 22,821 (157) — — 22,821 (157) Corporate notes 4,198 (52) — — 4,198 (52) $ 530,081 $ (10,295) $ 36,246 $ (1,505) $ 566,327 $ (11,800) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loans and Allowance for Loan Losses [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Loans consisted of the following segments as of December 31, 2022 and 2021. 2022 2021 Commercial $ 519,196 $ 492,815 Real estate: Construction, land and land development 363,014 359,258 1-4 family residential first mortgages 75,211 66,216 Home equity 10,322 8,422 Commercial 1,771,940 1,530,218 Consumer and other 7,292 3,797 2,746,975 2,460,726 Net unamortized fees and costs (4,139) (4,530) $ 2,742,836 $ 2,456,196 |
Schedule of Loan Transactions with Related Parties [Table Text Block] | Loan transactions with related parties were as follows for the years ended December 31, 2022 and 2021. 2022 2021 Balance, beginning of year $ 143,768 $ 119,600 New loans 42,371 35,450 Repayments (20,650) (11,282) Effect of change in classification (9,700) — Balance, end of year $ 155,789 $ 143,768 |
Schedule of Impaired Loans With and Without an Allowance [Table Text Block] | The following table summarizes the recorded investment in impaired loans by segment, broken down by loans with no related allowance and loans with a related allowance and the amount of that allowance as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Recorded Unpaid Related Recorded Unpaid Related With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 322 322 — 349 349 — Home equity — — — — — — Commercial — — — — — — Consumer and other — — — — — — 322 322 — 349 349 — With an allowance recorded: Commercial — — — — — — Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages — — — — — — Home equity — — — — — — Commercial — — — 8,599 8,599 2,500 Consumer and other — — — — — — — — — 8,599 8,599 2,500 Total: Commercial — — — — — — Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 322 322 — 349 349 — Home equity — — — — — — Commercial — — — 8,599 8,599 2,500 Consumer and other — — — — — — Total impaired loans $ 322 $ 322 $ — $ 8,948 $ 8,948 $ 2,500 The balance of impaired loans was composed of loans to one and two borrowers as of December 31, 2022 and 2021, respectively. The Company has no commitments to advance additional funds on any of the impaired loans. The following table summarizes the average recorded investment and interest income recognized on impaired loans by segment for the years ended December 31, 2022, 2021 and 2020. December 31, 2022 December 31, 2021 December 31, 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ — $ — $ — $ — $ 42 $ 2 Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 336 — 363 — 392 5 Home equity — — — — 2 — Commercial — — — — 3,659 17 Consumer and other — — — — — — 336 — 363 — 4,095 24 With an allowance recorded: Commercial — — — 339 — Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages — — — — — — Home equity — — — — — — Commercial 3,915 — 13,002 — 1,217 — Consumer and other — — — — — — 3,915 — 13,002 — 1,556 — Total: Commercial — — — — 381 2 Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 336 — 363 — 392 5 Home equity — — — — 2 — Commercial 3,915 — 13,002 — 4,876 17 Consumer and other — — — — — — Total impaired loans $ 4,251 $ — $ 13,365 $ — $ 5,651 $ 24 |
Past Due Loans [Table Text Block] | The following tables provide an analysis of the payment status of the recorded investment in loans as of December 31, 2022 and 2021. December 31, 2022 30-59 60-89 Days Past Due 90 Days or More Past Due Total Current Nonaccrual Loans Total Loans Commercial $ — $ — $ — $ — $ 519,196 $ — $ 519,196 Real estate: Construction, land and land development — — — — 363,014 — 363,014 1-4 family residential first mortgages — — — — 74,889 322 75,211 Home equity — — — — 10,322 — 10,322 Commercial — — — — 1,771,940 — 1,771,940 Consumer and other — — — — 7,292 — 7,292 Total $ — $ — $ — $ — $ 2,746,653 $ 322 $ 2,746,975 December 31, 2021 30-59 60-89 Days Past Due 90 Days or More Past Due Total Current Nonaccrual Loans Total Loans Commercial $ — $ — $ — $ — $ 492,815 $ — $ 492,815 Real estate: Construction, land and land development — — — — 359,258 — 359,258 1-4 family residential first mortgages — — — — 65,867 349 66,216 Home equity — — — — 8,422 — 8,422 Commercial — — — — 1,521,619 8,599 1,530,218 Consumer and other — — — — 3,797 — 3,797 Total $ — $ — $ — $ — $ 2,451,778 $ 8,948 $ 2,460,726 |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | TDR loans totaled $0 and $8,599 as of December 31, 2022 and December 31, 2021, respectively, and were included in the nonaccrual category. There were no loan modifications considered to be TDR that occurred during the years ended December 31, 2022 and 2020. There were six loan modifications considered to be TDR that occurred during the year ended December 31, 2021 related to one borrower. A specific reserve of $2,500 related to these loans was recorded at December 31, 2021. The pre- and post-modification recorded investment in TDR loans that have occurred during the years ended December 31, 2022, 2021 and 2020, totaled $0, $14,044 and $0, respectively. There were no TDR loans that have been modified within the twelve months ended December 31, 2022, 2021 and 2020 that have subsequently had a payment default. A TDR loan is considered to have a payment default when it is past due 30 days or more. |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables show the recorded investment in loans by credit quality indicator and loan segment as of December 31, 2022 and 2021. December 31, 2022 Pass Watch Substandard Doubtful Total Commercial $ 519,196 $ — $ — $ — $ 519,196 Real estate: Construction, land and land development 362,967 47 — — 363,014 1-4 family residential first mortgages 74,653 148 410 — 75,211 Home equity 10,322 — — — 10,322 Commercial 1,717,904 54,036 — — 1,771,940 Consumer and other 7,292 — — — 7,292 Total $ 2,692,334 $ 54,231 $ 410 $ — $ 2,746,975 December 31, 2021 Pass Watch Substandard Doubtful Total Commercial $ 492,545 $ 270 $ — $ — $ 492,815 Real estate: Construction, land and land development 359,203 55 — — 359,258 1-4 family residential first mortgages 65,596 156 464 — 66,216 Home equity 8,422 — — — 8,422 Commercial 1,458,075 63,544 8,599 — 1,530,218 Consumer and other 3,797 — — — 3,797 Total $ 2,387,638 $ 64,025 $ 9,063 $ — $ 2,460,726 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | The following tables detail changes in the allowance for loan losses by segment for the years ended December 31, 2022, 2021 and 2020. 2022 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Beginning balance $ 4,776 $ 3,646 $ 339 $ 91 $ 19,466 $ 46 $ 28,364 Charge-offs — — (31) — (451) — (482) Recoveries 29 — 33 4 25 — 91 Provision (1) (1) (98) 16 6 (2,465) 42 (2,500) Ending balance $ 4,804 $ 3,548 $ 357 $ 101 $ 16,575 $ 88 $ 25,473 2021 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Beginning balance $ 4,718 $ 2,634 $ 360 $ 114 $ 21,535 $ 75 $ 29,436 Charge-offs — — — — — — — Recoveries 404 — 2 4 13 5 428 Provision (1) (346) 1,012 (23) (27) (2,082) (34) (1,500) Ending balance $ 4,776 $ 3,646 $ 339 $ 91 $ 19,466 $ 46 $ 28,364 2020 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Beginning balance $ 3,875 $ 2,375 $ 216 $ 127 $ 10,565 $ 77 $ 17,235 Charge-offs — — — (1) — — (1) Recoveries 103 — 72 4 12 11 202 Provision (1) 740 259 72 (16) 10,958 (13) 12,000 Ending balance $ 4,718 $ 2,634 $ 360 $ 114 $ 21,535 $ 75 $ 29,436 |
Allowance for Loan Loss by Impairment Method [Table Text Block] | The following tables show a breakdown of the allowance for loan losses disaggregated on the basis of impairment analysis method by segment as of December 31, 2022 and 2021. December 31, 2022 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 4,804 3,548 357 101 16,575 88 25,473 Total $ 4,804 $ 3,548 $ 357 $ 101 $ 16,575 $ 88 $ 25,473 December 31, 2021 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ 2,500 $ — $ 2,500 Collectively evaluated for impairment 4,776 3,646 339 91 16,966 46 25,864 Total $ 4,776 $ 3,646 $ 339 $ 91 $ 19,466 $ 46 $ 28,364 |
Loans by Impairment Method [Table Text Block] | The following tables show the recorded investment in loans, exclusive of unamortized fees and costs, disaggregated on the basis of impairment analysis method by segment as of December 31, 2022 and 2021. December 31, 2022 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ — $ — $ 322 $ — $ — $ — $ 322 Collectively evaluated for impairment 519,196 363,014 74,889 10,322 1,771,940 7,292 2,746,653 Total $ 519,196 $ 363,014 $ 75,211 $ 10,322 $ 1,771,940 $ 7,292 $ 2,746,975 December 31, 2021 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ — $ — $ 349 $ — $ 8,599 $ — $ 8,948 Collectively evaluated for impairment 492,815 359,258 65,867 8,422 1,521,619 3,797 2,451,778 Total $ 492,815 $ 359,258 $ 66,216 $ 8,422 $ 1,530,218 $ 3,797 $ 2,460,726 |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Premises and equipment consisted of the following as of December 31, 2022 and 2021. 2022 2021 Land $ 10,450 $ 6,117 Buildings 37,173 21,423 Right-of-use assets under operating leases 4,487 5,730 Leasehold improvements 3,578 3,683 Furniture and equipment 9,441 9,094 65,129 46,047 Accumulated depreciation (12,005) (11,479) $ 53,124 $ 34,568 |
Operating Leases Operating Le_2
Operating Leases Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Total estimated rental commitments for the operating leases were as follows as of December 31, 2022. 2023 $ 1,413 2024 857 2025 588 2026 503 2027 347 Thereafter 1,534 Total lease payments 5,242 Less: present value discount (561) Present value of lease liabilities $ 4,681 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits [Table Text Block] | The scheduled maturities of time deposits were as follows as of December 31, 2022. 2023 $ 395,927 2024 8,914 2025 2,815 2026 2,640 2027 2,369 $ 412,665 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Future required principal payments for long-term debt as of December 31, 2022 are shown in the table below. 2023 $ 3,750 2024 5,000 2025 5,000 2026 5,446 2027 21,701 Thereafter 10,589 $ 51,486 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The table below identifies the balance sheet category and fair values of the Company’s derivative instruments as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Cash Flow Hedges: Gross notional amount $ 310,000 $ 255,000 Fair value in other assets 16,284 — Fair value in other liabilities — (7,517) Weighted-average floating rate received 4.53 % 0.39 % Weighted-average fixed rate paid 2.25 % 2.09 % Weighted-average maturity in years 3.3 4.2 Non-Hedging Derivatives: Gross notional amount $ 254,369 $ 172,008 Fair value in other assets 15,309 3,887 Fair value in other liabilities (15,309) (3,887) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table identifies the pretax gains or losses recognized on the Company’s derivative instruments designated as cash flow hedges for the years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Pre-tax gain (loss) recognized in other comprehensive income $ 23,595 $ 8,047 $ (22,278) Reclassification from AOCI into income: Increase in interest expense $ (206) $ (4,684) $ (4,187) Decrease in noninterest income, swap termination fees — (3,600) — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The following table shows the components of income taxes for the years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Current: Federal $ 8,194 $ 9,789 $ 8,773 State 3,221 3,430 2,921 Deferred: Federal 971 44 (2,564) State 612 38 (461) Income taxes $ 12,998 $ 13,301 $ 8,669 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Total income taxes for the years ended December 31, 2022, 2021 and 2020 differed from the amount computed by applying the U.S. federal income tax rate of 21 percent to income before income taxes, as shown in the following table. 2022 2021 2020 Amount Percent Amount Percent Amount Percent Computed expected tax expense $ 12,473 21.0 % $ 13,211 21.0 % $ 8,690 21.0 % State income tax expense, net of federal income tax benefit 2,729 4.6 2,747 4.4 1,846 4.5 Tax-exempt interest income (1,240) (2.1) (1,091) (1.7) (647) (1.6) Nondeductible interest expense to own tax-exempt securities 354 0.6 141 0.2 88 0.2 Tax-exempt increase in cash value of life insurance and gains (203) (0.3) (194) (0.3) (125) (0.3) Stock compensation (320) (0.6) (195) (0.3) 97 0.2 Enactment of state tax reform 649 1.1 — — — — Federal income tax credits (1,468) (2.5) (1,368) (2.2) (1,239) (3.0) Other, net 24 0.1 50 0.1 (41) (0.1) Income taxes $ 12,998 21.9 % $ 13,301 21.2 % $ 8,669 20.9 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax assets consisted of the following components as of December 31, 2022 and 2021. 2022 2021 Deferred tax assets: Allowance for loan losses $ 6,241 $ 7,176 Net unrealized losses on securities available for sale 34,544 1,701 Net unrealized losses on interest rate swaps — 1,903 Lease liabilities 1,147 1,502 Accrued expenses 434 395 Restricted stock unit compensation 1,038 821 State net operating loss carryforward 1,476 1,276 Other 156 139 45,036 14,913 Deferred tax liabilities: Right-of-use assets 1,099 1,450 Deferred loan costs 249 247 Net unrealized gains on interest rate swaps 4,003 — Premises and equipment 1,219 809 Other 381 312 6,951 2,818 Net deferred tax assets before valuation allowance 38,085 12,095 Valuation allowance for deferred tax assets (1,476) (1,276) Net deferred tax assets $ 36,609 $ 10,819 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table includes a summary of nonvested RSU activity for the years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Weighted Weighted Weighted Average Average Average Grant Date Grant Date Grant Date Fair Value Fair Value Fair Value (actual amounts, not in thousands) Shares Per Share Shares Per Share Shares Per Share Nonvested shares, beginning balance 408,800 $ 20.07 390,265 $ 19.35 380,600 $ 21.52 Granted 169,357 23.26 156,000 21.61 147,465 15.38 Vested (139,920) 21.38 (135,965) 19.65 (137,800) 21.09 Forfeited — — (1,500) 31.37 — — Nonvested shares, ending balance 438,237 $ 20.87 408,800 $ 20.07 390,265 $ 19.35 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Note 15. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2022, 2021 and 2020. Unrealized Accumulated Unrealized Gains Other Gains (Losses) (Losses) on Comprehensive on Securities Derivatives Income (Loss) Balance, December 31, 2019 $ 1,057 $ (4,318) $ (3,261) Other comprehensive income (loss) before reclassifications 4,994 (16,653) (11,659) Amounts reclassified from accumulated other comprehensive income (57) 3,131 3,074 Net current period other comprehensive income (loss) 4,937 (13,522) (8,585) Balance, December 31, 2020 5,994 (17,840) (11,846) Other comprehensive income (loss) before reclassifications (10,977) 6,032 (4,945) Amounts reclassified from accumulated other comprehensive income (38) 6,192 6,154 Net current period other comprehensive income (loss) (11,015) 12,224 1,209 Balance, December 31, 2021 (5,021) (5,616) (10,637) Other comprehensive income (loss) before reclassifications (98,637) 17,739 (80,898) Amounts reclassified from accumulated other comprehensive income (22) 86 64 Net current period other comprehensive income (loss) (98,659) 17,825 (80,834) Balance, December 31, 2022 $ (103,680) $ 12,209 $ (91,471) |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | as of December 31, 2022 and 2021. Actual For Capital Adequacy Purposes For Capital To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022: Total Capital (to Risk-Weighted Assets) Consolidated $ 408,056 12.08 % $ 270,221 8.00 % $ 354,665 10.50 % $ 337,776 10.00 % West Bank 441,628 13.08 % 270,053 8.00 % 354,445 10.50 % 337,566 10.00 % Tier 1 Capital (to Risk-Weighted Assets) Consolidated 322,583 9.55 % 202,666 6.00 % 287,110 8.50 % 270,221 8.00 % West Bank 416,155 12.33 % 202,540 6.00 % 286,930 8.50 % 270,053 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) Consolidated 302,583 8.96 % 151,999 4.50 % 236,443 7.00 % 219,555 6.50 % West Bank 416,155 12.33 % 151,905 4.50 % 236,296 7.00 % 219,418 6.50 % Tier 1 Capital (to Average Assets) Consolidated 322,583 8.81 % 146,439 4.00 % 146,439 4.00 % 183,049 5.00 % West Bank 416,155 11.37 % 146,367 4.00 % 146,367 4.00 % 182,958 5.00 % As of December 31, 2021: Total Capital (to Risk-Weighted Assets) Consolidated $ 319,329 10.89 % $ 234,670 8.00 % $ 308,004 10.50 % $ 293,337 10.00 % West Bank 354,846 12.10 % 234,621 8.00 % 307,941 10.50 % 293,277 10.00 % Tier 1 Capital (to Risk-Weighted Assets) Consolidated 290,965 9.92 % 176,002 6.00 % 249,337 8.50 % 234,670 8.00 % West Bank 326,482 11.13 % 175,966 6.00 % 249,284 8.50 % 234,621 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) Consolidated 270,965 9.24 % 132,002 4.50 % 205,336 7.00 % 190,669 6.50 % West Bank 326,482 11.13 % 131,975 4.50 % 205,294 7.00 % 190,630 6.50 % Tier 1 Capital (to Average Assets) Consolidated 290,965 8.49 % 137,065 4.00 % 137,065 4.00 % 171,331 5.00 % West Bank 326,482 9.53 % 137,011 4.00 % 137,011 4.00 % 171,264 5.00 % |
Commitments and Contingencies_2
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary Of Outstanding Commitments To Extend Credit And Letters Of Credit [Table Text Block] | The Company’s commitments consisted of the following approximate amounts as of December 31, 2022 and 2021. 2022 2021 Commitments to fund real estate construction loans $ 336,900 $ 294,580 Other commitments to extend credit 727,666 585,678 Standby letters of credit 20,557 17,391 $ 1,085,123 $ 897,649 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis by level as of December 31, 2022 and 2021. 2022 Description Total Level 1 Level 2 Level 3 Financial assets: Securities available for sale: State and political subdivisions $ 193,355 $ — $ 193,355 $ — Collateralized mortgage obligations 281,628 — 281,628 — Mortgage-backed securities 140,280 — 140,280 — Collateralized loan obligations 36,811 — 36,811 — Corporate notes 12,041 — 12,041 — Derivative instrument, interest rate swaps 31,593 — 31,593 — Financial liabilities: Derivative instrument, interest rate swaps $ 15,309 $ — $ 15,309 $ — 2021 Description Total Level 1 Level 2 Level 3 Financial assets: Securities available for sale: State and political subdivisions $ 232,447 $ — $ 232,447 $ — Collateralized mortgage obligations 320,773 — 320,773 — Mortgage-backed securities 155,060 — 155,060 — Collateralized loan obligations 37,782 — 37,782 — Corporate notes 12,760 — 12,760 — Derivative instrument, interest rate swaps 3,887 — 3,887 — Financial liabilities: Derivative instrument, interest rate swaps $ 11,404 $ — $ 11,404 $ — | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table presents the carrying amounts and approximate fair values of financial assets and liabilities as of December 31, 2022 and 2021. December 31, 2022 Carrying Approximate Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,896 $ 24,896 $ 24,896 $ — $ — Interest-bearing deposits 1,643 1,643 1,643 — — Securities available for sale 664,115 664,115 — 664,115 — Federal Home Loan Bank stock 19,336 19,336 19,336 — — Loans, net 2,717,363 2,582,911 — 2,582,911 — Accrued interest receivable 11,988 11,988 11,988 — — Interest rate swaps 31,593 31,593 — 31,593 — Financial liabilities: Deposits $ 2,880,408 $ 2,880,495 $ — $ 2,880,495 $ — Federal funds purchased and short-term borrowings 200,000 200,000 200,000 — — Subordinated notes, net 79,369 68,047 — 68,047 — Federal Home Loan Bank advances 155,000 155,000 — 155,000 — Long-term debt 51,486 51,486 — 51,486 — Accrued interest payable 3,260 3,260 3,260 — — Interest rate swaps 15,309 15,309 — 15,309 — Off-balance-sheet financial instruments: Commitments to extend credit — — — — — Standby letters of credit — — — — — | December 31, 2021 Carrying Approximate Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 17,555 $ 17,555 $ 17,555 $ — $ — Interest-bearing deposits 175,270 175,270 175,270 — — Securities available for sale 758,822 758,822 — 758,822 — Federal Home Loan Bank stock 9,965 9,965 9,965 — — Loans, net 2,427,832 2,453,081 — 2,446,982 6,099 Accrued interest receivable 8,890 8,890 8,890 — — Interest rate swaps 3,887 3,887 — 3,887 — Financial liabilities: Deposits $ 3,016,005 $ 3,016,305 $ — $ 3,016,305 $ — Federal funds purchased and short-term borrowings 2,880 2,880 2,880 — — Subordinated notes, net 20,465 17,122 — 17,122 — Federal Home Loan Bank advances 125,000 125,000 — 125,000 — Long-term debt 51,521 51,521 — 51,521 — Accrued interest payable 519 519 519 — — Interest rate swaps 11,404 11,404 — 11,404 — Off-balance-sheet financial instruments: Commitments to extend credit — — — — — Standby letters of credit — — — — — |
West Bancorporation, Inc. (Pa_2
West Bancorporation, Inc. (Parent Company Only) Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet [Table Text Block] | Balance Sheets December 31, 2022 and 2021 2022 2021 ASSETS Cash $ 5,811 $ 4,646 Investment in West Bank 323,458 316,150 Investment in West Bancorporation Capital Trust I 619 619 Other assets 1,787 28 Total assets $ 331,675 $ 321,443 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Accrued expenses and other liabilities $ 1,194 $ 650 Subordinated notes, net 79,369 20,465 Long-term debt 40,000 40,000 Total liabilities 120,563 61,115 STOCKHOLDERS’ EQUITY Preferred stock — — Common stock 3,000 3,000 Additional paid-in capital 32,021 30,183 Retained earnings 267,562 237,782 Accumulated other comprehensive loss (91,471) (10,637) Total stockholders’ equity 211,112 260,328 Total liabilities and stockholders’ equity $ 331,675 $ 321,443 |
Schedule of Condensed Income Statement [Table Text Block] | Statements of Income Years Ended December 31, 2022, 2021 and 2020 2022 2021 2020 Operating income: Equity in net income of West Bank $ 50,185 $ 50,880 $ 34,069 Equity in net income of West Bancorporation Capital Trust I 30 21 25 Other income — — 3 Total operating income 50,215 50,901 34,097 Operating expenses: Interest on subordinated notes 2,867 1,008 1,016 Interest on long-term debt 1,565 201 283 Other expenses 576 542 550 Total operating expenses 5,008 1,751 1,849 Income before income taxes 45,207 49,150 32,248 Income tax benefits (1,192) (457) (464) Net income $ 46,399 $ 49,607 $ 32,712 |
Schedule of Condensed Cash Flow Statement [Table Text Block] | Statements of Cash Flows Years Ended December 31, 2022, 2021 and 2020 2022 2021 2020 Cash Flows from Operating Activities: Net income $ 46,399 $ 49,607 $ 32,712 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of West Bank (50,185) (50,880) (34,069) Equity in net income of West Bancorporation Capital Trust I (30) (21) (25) Dividends received from West Bank 21,000 21,500 16,800 Dividends received from West Bancorporation Capital Trust I 30 21 25 Amortization 148 13 13 Deferred income taxes (8) 1 2 Change in assets and liabilities: Decrease in other assets (116) (20) (3) Increase (decrease) in accrued expenses and other liabilities 440 5 (49) Net cash provided by operating activities 17,678 20,226 15,406 Cash Flows from Investing Activities: Capital contribution to West Bank (58,650) (34,500) — Net cash used in investing activities (58,650) (34,500) — Cash Flows from Financing Activities: Proceeds from long-term debt 58,756 34,500 — Principal payments on long-term debt — (4,500) (1,250) Common stock cash dividends (16,619) (15,543) (13,815) Net cash provided by (used in) financing activities 42,137 14,457 (15,065) Net increase in cash 1,165 183 341 Cash: Beginning 4,646 4,463 4,122 Ending $ 5,811 $ 4,646 $ 4,463 |
Organization and Nature of Bu_3
Organization and Nature of Business and Summary of Significant Accounting Policies (Branches) (Details) | Dec. 31, 2022 Bank_branches |
Des Moines, Iowa metropolitan area, excluding main [Member] | |
Number of bank branches by location [Line Items] | |
Number of bank branches | 5 |
Coralville, Iowa [Member] | |
Number of bank branches by location [Line Items] | |
Number of bank branches | 1 |
Minnesota | |
Number of bank branches by location [Line Items] | |
Number of bank branches | 4 |
Organization and Nature of Bu_4
Organization and Nature of Business and Summary of Significant Accounting Policies (FHLB stock) (Details) - Federal Home Loan Bank stock [Member] | Dec. 31, 2022 USD ($) |
Schedule of Cost-method Investments [Line Items] (Deprecated 2018-01-31) | |
Federal Home Loan Bank stock, percent of total assets required | 0.12% |
Federal Home Loan Bank stock, percent of outstanding advances required | 4% |
Quoted market value | $ 0 |
Organization and Nature of Bu_5
Organization and Nature of Business and Summary of Significant Accounting Policies (Useful Lives) (Details) - Maximum [Member] | 12 Months Ended |
Dec. 31, 2022 | |
Buildings [Member] | |
Premises and equipment [Line Items] | |
Premises and equipment, useful life | 40 years |
Furniture and equipment [Member] | |
Premises and equipment [Line Items] | |
Premises and equipment, useful life | 10 years |
Organization and Nature of Bu_6
Organization and Nature of Business and Summary of Significant Accounting Policies (OREO) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Other real estate owned, included in other assets | $ 0 | $ 0 |
Organization and Nature of Bu_7
Organization and Nature of Business and Summary of Significant Accounting Policies (Trust assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Trust assets | $ 550,994 | $ 462,105 |
Organization and Nature of Bu_8
Organization and Nature of Business and Summary of Significant Accounting Policies (Deferred Compensation) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred compensation plan liability | $ 648 | $ 432 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income | $ 46,399 | $ 49,607 | $ 32,712 |
Weighted average common shares outstanding (shares) | 16,620 | 16,534 | 16,447 |
Weighted average effect of restricted stock units outstanding (shares) | 178 | 255 | 68 |
Diluted weighted average common shares outstanding (shares) | 16,798 | 16,789 | 16,515 |
Basic earnings per common share | $ 2.79 | $ 3 | $ 1.99 |
Diluted earnings per common share | $ 2.76 | $ 2.95 | $ 1.98 |
Number of anti-dilutive common stock equivalents excluded from diluted earnings per share computation | 152 | 0 | 243 |
Investment Securities Available
Investment Securities Available-for-Sale by Security Type (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | $ 802,847 | $ 765,546 |
Investment securities available for sale, gross unrealized gains | 4 | 5,076 |
Investment securities available for sale, gross unrealized losses | (138,736) | (11,800) |
Securities available for sale, at fair value | 664,115 | 758,822 |
State and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 242,823 | 231,903 |
Investment securities available for sale, gross unrealized gains | 4 | 3,161 |
Investment securities available for sale, gross unrealized losses | (49,472) | (2,617) |
Securities available for sale, at fair value | 193,355 | 232,447 |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 338,875 | 325,406 |
Investment securities available for sale, gross unrealized gains | 0 | 1,627 |
Investment securities available for sale, gross unrealized losses | (57,247) | (6,260) |
Securities available for sale, at fair value | 281,628 | 320,773 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 169,451 | 157,607 |
Investment securities available for sale, gross unrealized gains | 0 | 167 |
Investment securities available for sale, gross unrealized losses | (29,171) | (2,714) |
Securities available for sale, at fair value | 140,280 | 155,060 |
Collateralized Loan Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 37,948 | 37,880 |
Investment securities available for sale, gross unrealized gains | 0 | 59 |
Investment securities available for sale, gross unrealized losses | (1,137) | (157) |
Securities available for sale, at fair value | 36,811 | 37,782 |
Corporate notes [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 13,750 | 12,750 |
Investment securities available for sale, gross unrealized gains | 0 | 62 |
Investment securities available for sale, gross unrealized losses | (1,709) | (52) |
Securities available for sale, at fair value | $ 12,041 | $ 12,760 |
Investment Securities Contractu
Investment Securities Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment Securities Available for Sale, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Due after five years through ten years, amortized cost | $ 71,192 | |
Due after ten years, amortized cost | 223,329 | |
Subtotal before securities without single maturities, amortized cost | 294,521 | |
Collateralized mortgage obligations, and mortgage-backed securities, amortized cost | 508,326 | |
Investment securities available for sale, amortized cost | 802,847 | $ 765,546 |
Investment Securities Available for Sale, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due after five years through ten years, fair value | 64,809 | |
Due after ten years, fair value | 177,398 | |
Subtotal before securities without single maturities, fair value | 242,207 | |
Collateralized mortgage obligations and mortgage-backed securities, fair value | 421,908 | |
Investment securities available for sale, fair value | $ 664,115 | $ 758,822 |
Investment Securities Detail of
Investment Securities Detail of Sale of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |||
Proceeds from sales of securities available for sale | $ 0 | $ 30,374 | $ 139,819 |
Gross gains on sales | 0 | 282 | 1,801 |
Gross losses on sales | $ 0 | $ 231 | $ 1,724 |
Investment Securities Gross Unr
Investment Securities Gross Unrealized Losses - AFS (Details) $ in Thousands | Dec. 31, 2022 USD ($) securities | Dec. 31, 2021 USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, continuous unrealized loss position, less than 12 months, fair value | $ 237,128 | $ 530,081 |
Investment securities available for sale, continuous unrealized loss position, less than 12 months, gross unrealized losses | (32,391) | (10,295) |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, fair value | 426,795 | 36,246 |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, gross unrealized losses | (106,345) | (1,505) |
Investment securities available for sale, total, continuous unrealized loss position, fair value | 663,923 | 566,327 |
Investment securities available for sale, total, continuous unrealized loss position, gross unrealized losses | (138,736) | (11,800) |
State and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, continuous unrealized loss position, less than 12 months, fair value | 74,676 | 121,574 |
Investment securities available for sale, continuous unrealized loss position, less than 12 months, gross unrealized losses | (11,556) | (1,223) |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, fair value | 118,487 | 33,894 |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, gross unrealized losses | (37,916) | (1,394) |
Investment securities available for sale, total, continuous unrealized loss position, fair value | 193,163 | 155,468 |
Investment securities available for sale, total, continuous unrealized loss position, gross unrealized losses | $ (49,472) | (2,617) |
Investment securities available for sale in unrealized loss positions, qualitative disclosure, number of positions | securities | 117 | |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, continuous unrealized loss position, less than 12 months, fair value | $ 107,449 | 241,320 |
Investment securities available for sale, continuous unrealized loss position, less than 12 months, gross unrealized losses | (14,484) | (6,149) |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, fair value | 174,179 | 2,352 |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, gross unrealized losses | (42,763) | (111) |
Investment securities available for sale, total, continuous unrealized loss position, fair value | 281,628 | 243,672 |
Investment securities available for sale, total, continuous unrealized loss position, gross unrealized losses | $ (57,247) | (6,260) |
Investment securities available for sale in unrealized loss positions, qualitative disclosure, number of positions | securities | 79 | |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, continuous unrealized loss position, less than 12 months, fair value | $ 31,350 | 140,168 |
Investment securities available for sale, continuous unrealized loss position, less than 12 months, gross unrealized losses | (4,556) | (2,714) |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, fair value | 108,930 | 0 |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, gross unrealized losses | (24,615) | 0 |
Investment securities available for sale, total, continuous unrealized loss position, fair value | 140,280 | 140,168 |
Investment securities available for sale, total, continuous unrealized loss position, gross unrealized losses | $ (29,171) | (2,714) |
Investment securities available for sale in unrealized loss positions, qualitative disclosure, number of positions | securities | 27 | |
Collateralized Loan Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, continuous unrealized loss position, less than 12 months, fair value | $ 14,468 | 22,821 |
Investment securities available for sale, continuous unrealized loss position, less than 12 months, gross unrealized losses | (480) | (157) |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, fair value | 22,343 | 0 |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, gross unrealized losses | (657) | 0 |
Investment securities available for sale, total, continuous unrealized loss position, fair value | 36,811 | 22,821 |
Investment securities available for sale, total, continuous unrealized loss position, gross unrealized losses | $ (1,137) | (157) |
Investment securities available for sale in unrealized loss positions, qualitative disclosure, number of positions | securities | 6 | |
Corporate notes [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, continuous unrealized loss position, less than 12 months, fair value | $ 9,185 | 4,198 |
Investment securities available for sale, continuous unrealized loss position, less than 12 months, gross unrealized losses | (1,315) | (52) |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, fair value | 2,856 | 0 |
Investment securities available for sale, continuous unrealized loss position, 12 months or longer, gross unrealized losses | (394) | 0 |
Investment securities available for sale, total, continuous unrealized loss position, fair value | 12,041 | 4,198 |
Investment securities available for sale, total, continuous unrealized loss position, gross unrealized losses | $ (1,709) | $ (52) |
Investment securities available for sale in unrealized loss positions, qualitative disclosure, number of positions | securities | 8 |
Investment Securities Other Nar
Investment Securities Other Narratives (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged securities | $ 293,017 | $ 295,961 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses Schedule of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans Receivable [Line Items] | ||
Loans | $ 2,746,975 | $ 2,460,726 |
Net unamortized fees and costs | (4,139) | (4,530) |
Loans, net of unamortized fees and costs | 2,742,836 | 2,456,196 |
Loans with fixed rates of interest | 1,919,948 | 1,719,109 |
Loans with variable rates of interest | 827,027 | 741,617 |
Commercial [Member] | ||
Loans Receivable [Line Items] | ||
Loans | 519,196 | 492,815 |
Payroll Protection Program Loans | 1,117 | 22,206 |
Real Estate [Member] | ||
Loans Receivable [Line Items] | ||
Loans pledged for Federal Home Loan Bank Advances | 1,190,000 | 1,190,000 |
Construction, land and land development [Member] | ||
Loans Receivable [Line Items] | ||
Loans | 363,014 | 359,258 |
1-4 family residential first mortgages [Member] | ||
Loans Receivable [Line Items] | ||
Loans | 75,211 | 66,216 |
Home Equity Loan [Member] | ||
Loans Receivable [Line Items] | ||
Loans | 10,322 | 8,422 |
Commercial real estate [Member] | ||
Loans Receivable [Line Items] | ||
Loans | 1,771,940 | 1,530,218 |
Consumer and other [Member] | ||
Loans Receivable [Line Items] | ||
Loans | $ 7,292 | $ 3,797 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses Schedule of Loan Transactions with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Related party loans, due from related party, beginning of year | $ 143,768 | $ 119,600 |
Related party loans, new loans | 42,371 | 35,450 |
Related party loans, repayments | (20,650) | (11,282) |
Related party loans, effect of change in classification | (9,700) | 0 |
Related party loans, due from related party, end of year | $ 155,789 | $ 143,768 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses Schedule of Impaired Loans With and Without an Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans, Impaired [Line Items] | |||
Impaired loans, with no related allowance, recorded investment | $ 322 | $ 349 | |
Impaired loans, with no related allowance, unpaid principal balance | 322 | 349 | |
Impaired loans, with related allowance, recorded investment | 0 | 8,599 | |
Impaired loans, with related allowance, unpaid principal balance | 0 | 8,599 | |
Impaired loans, recorded investment | 322 | 8,948 | |
Impaired loans, unpaid principal balance | 322 | 8,948 | |
Impaired loans, related allowance | 0 | 2,500 | |
Impaired loans, with no related allowance, average recorded investment | 336 | 363 | $ 4,095 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 24 |
Impaired loans, with related allowance, average recorded investment | 3,915 | 13,002 | 1,556 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, average recorded investment | 4,251 | 13,365 | 5,651 |
Impaired loans, interest income, accrual method | 0 | 0 | 24 |
Impaired loans, interest lost on nonaccrual loans | 144 | 534 | 235 |
Commercial [Member] | |||
Loans, Impaired [Line Items] | |||
Impaired loans, with no related allowance, recorded investment | 0 | 0 | |
Impaired loans, with no related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, with related allowance, recorded investment | 0 | 0 | |
Impaired loans, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, recorded investment | 0 | 0 | |
Impaired loans, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, with no related allowance, average recorded investment | 0 | 0 | 42 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 2 |
Impaired loans, with related allowance, average recorded investment | 0 | 339 | |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, average recorded investment | 0 | 0 | 381 |
Impaired loans, interest income, accrual method | 0 | 0 | 2 |
Construction, land and land development [Member] | |||
Loans, Impaired [Line Items] | |||
Impaired loans, with no related allowance, recorded investment | 0 | 0 | |
Impaired loans, with no related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, with related allowance, recorded investment | 0 | 0 | |
Impaired loans, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, recorded investment | 0 | 0 | |
Impaired loans, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, with no related allowance, average recorded investment | 0 | 0 | 0 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, with related allowance, average recorded investment | 0 | 0 | 0 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, average recorded investment | 0 | 0 | 0 |
Impaired loans, interest income, accrual method | 0 | 0 | 0 |
1-4 family residential first mortgages [Member] | |||
Loans, Impaired [Line Items] | |||
Impaired loans, with no related allowance, recorded investment | 322 | 349 | |
Impaired loans, with no related allowance, unpaid principal balance | 322 | 349 | |
Impaired loans, with related allowance, recorded investment | 0 | 0 | |
Impaired loans, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, recorded investment | 322 | 349 | |
Impaired loans, unpaid principal balance | 322 | 349 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, with no related allowance, average recorded investment | 336 | 363 | 392 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 5 |
Impaired loans, with related allowance, average recorded investment | 0 | 0 | 0 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, average recorded investment | 336 | 363 | 392 |
Impaired loans, interest income, accrual method | 0 | 0 | 5 |
Home Equity Loan [Member] | |||
Loans, Impaired [Line Items] | |||
Impaired loans, with no related allowance, recorded investment | 0 | 0 | |
Impaired loans, with no related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, with related allowance, recorded investment | 0 | 0 | |
Impaired loans, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, recorded investment | 0 | 0 | |
Impaired loans, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, with no related allowance, average recorded investment | 0 | 0 | 2 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, with related allowance, average recorded investment | 0 | 0 | 0 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, average recorded investment | 0 | 0 | 2 |
Impaired loans, interest income, accrual method | 0 | 0 | 0 |
Commercial real estate [Member] | |||
Loans, Impaired [Line Items] | |||
Impaired loans, with no related allowance, recorded investment | 0 | 0 | |
Impaired loans, with no related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, with related allowance, recorded investment | 0 | 8,599 | |
Impaired loans, with related allowance, unpaid principal balance | 0 | 8,599 | |
Impaired loans, recorded investment | 0 | 8,599 | |
Impaired loans, unpaid principal balance | 0 | 8,599 | |
Impaired loans, related allowance | 0 | 2,500 | |
Impaired loans, with no related allowance, average recorded investment | 0 | 0 | 3,659 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 17 |
Impaired loans, with related allowance, average recorded investment | 3,915 | 13,002 | 1,217 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, average recorded investment | 3,915 | 13,002 | 4,876 |
Impaired loans, interest income, accrual method | 0 | 0 | 17 |
Consumer and other [Member] | |||
Loans, Impaired [Line Items] | |||
Impaired loans, with no related allowance, recorded investment | 0 | 0 | |
Impaired loans, with no related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, with related allowance, recorded investment | 0 | 0 | |
Impaired loans, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, recorded investment | 0 | 0 | |
Impaired loans, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, with no related allowance, average recorded investment | 0 | 0 | 0 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, with related allowance, average recorded investment | 0 | 0 | 0 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired loans, average recorded investment | 0 | 0 | 0 |
Impaired loans, interest income, accrual method | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses Impaired Loans (Details) $ in Thousands | Dec. 31, 2022 USD ($) Borrowers | Dec. 31, 2021 USD ($) Borrowers |
Loans and Allowance for Loan Losses [Abstract] | ||
Impaired loans, number of borrowers | Borrowers | 1 | 2 |
Impaired loans, commitment to lend | $ | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses Schedule of Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, nonaccrual status | $ 322 | $ 8,948 |
Loans | 2,746,975 | 2,460,726 |
Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, nonaccrual status | 0 | 0 |
Loans | 519,196 | 492,815 |
Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, nonaccrual status | 0 | 0 |
Loans | 363,014 | 359,258 |
1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, nonaccrual status | 322 | 349 |
Loans | 75,211 | 66,216 |
Home Equity Loan [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, nonaccrual status | 0 | 0 |
Loans | 10,322 | 8,422 |
Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, nonaccrual status | 0 | 8,599 |
Loans | 1,771,940 | 1,530,218 |
Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, nonaccrual status | 0 | 0 |
Loans | 7,292 | 3,797 |
Loans, 30 to 59 days past due [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 30 to 59 days past due [Member] | Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 30 to 59 days past due [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 30 to 59 days past due [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 30 to 59 days past due [Member] | Home Equity Loan [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 30 to 59 days past due [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 30 to 59 days past due [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 60 to 89 days past due [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 60 to 89 days past due [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Home Equity Loan [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 90 or more days past due [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 90 or more days past due [Member] | Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 90 or more days past due [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 90 or more days past due [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 90 or more days past due [Member] | Home Equity Loan [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 90 or more days past due [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, 90 or more days past due [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Total loans past due | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Total loans past due | Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Total loans past due | Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Total loans past due | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Total loans past due | Home Equity Loan [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Total loans past due | Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Total loans past due | Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Loans, not past due | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 2,746,653 | 2,451,778 |
Loans, not past due | Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 519,196 | 492,815 |
Loans, not past due | Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 363,014 | 359,258 |
Loans, not past due | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 74,889 | 65,867 |
Loans, not past due | Home Equity Loan [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 10,322 | 8,422 |
Loans, not past due | Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,771,940 | 1,521,619 |
Loans, not past due | Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 7,292 | $ 3,797 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses Schedule of Troubled Debt Restructured Loan Modifications (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loans | Dec. 31, 2021 USD ($) loans | Dec. 31, 2020 USD ($) loans | |
Loans and Allowance for Loan Losses [Abstract] | |||
Troubled debt restructured loans included in nonaccrual | $ 0 | $ 8,599 | |
Troubled debt restructured loans | $ 0 | $ 8,599 | |
Troubled debt restructured loan modifications, number | loans | 0 | 6 | 0 |
Troubled debt restructured loan modifications, pre-modification recorded investment | $ 0 | $ 14,044 | $ 0 |
Troubled debt restructured loan modifications, post-modification recorded investment | $ 0 | 14,044 | $ 0 |
Troubled debt restructured loans included in nonaccrual, specific reserve | $ 2,500 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses Schedule of Troubled Debt Restructured Loans that Subsequently Defaulted (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Allowance for Loan Losses [Abstract] | |||
Troubled debt restructured loans, subsequent default, recorded investment | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses Schedule of Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans, Recorded Investment [Line Items] | ||
Loans | $ 2,746,975 | $ 2,460,726 |
Commercial [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 519,196 | 492,815 |
Construction, land and land development [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 363,014 | 359,258 |
1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 75,211 | 66,216 |
Home Equity Loan [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 10,322 | 8,422 |
Commercial real estate [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 1,771,940 | 1,530,218 |
Consumer and other [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 7,292 | 3,797 |
Pass [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 2,692,334 | 2,387,638 |
Pass [Member] | Commercial [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 519,196 | 492,545 |
Pass [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 362,967 | 359,203 |
Pass [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 74,653 | 65,596 |
Pass [Member] | Home Equity Loan [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 10,322 | 8,422 |
Pass [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 1,717,904 | 1,458,075 |
Pass [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 7,292 | 3,797 |
Watch [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 54,231 | 64,025 |
Watch [Member] | Commercial [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 270 |
Watch [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 47 | 55 |
Watch [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 148 | 156 |
Watch [Member] | Home Equity Loan [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Watch [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 54,036 | 63,544 |
Watch [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Substandard [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 410 | 9,063 |
Substandard [Member] | Commercial [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Substandard [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Substandard [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 410 | 464 |
Substandard [Member] | Home Equity Loan [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Substandard [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 8,599 |
Substandard [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | Commercial [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | Home Equity Loan [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Doubtful [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses Schedule of Allowance for Loan Loss Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Loan Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | $ 28,364 | $ 29,436 | $ 17,235 |
Charge-offs | (482) | 0 | (1) |
Recoveries | 91 | 428 | 202 |
Provision for loan losses | (2,500) | (1,500) | 12,000 |
Allowance for loan losses, ending balance | 25,473 | 28,364 | 29,436 |
Commercial [Member] | |||
Allowance for Loan Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 4,776 | 4,718 | 3,875 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 29 | 404 | 103 |
Provision for loan losses | (1) | (346) | 740 |
Allowance for loan losses, ending balance | 4,804 | 4,776 | 4,718 |
Construction, land and land development [Member] | |||
Allowance for Loan Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 3,646 | 2,634 | 2,375 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision for loan losses | (98) | 1,012 | 259 |
Allowance for loan losses, ending balance | 3,548 | 3,646 | 2,634 |
1-4 family residential first mortgages [Member] | |||
Allowance for Loan Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 339 | 360 | 216 |
Charge-offs | (31) | 0 | 0 |
Recoveries | 33 | 2 | 72 |
Provision for loan losses | 16 | (23) | 72 |
Allowance for loan losses, ending balance | 357 | 339 | 360 |
Home Equity Loan [Member] | |||
Allowance for Loan Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 91 | 114 | 127 |
Charge-offs | 0 | 0 | (1) |
Recoveries | 4 | 4 | 4 |
Provision for loan losses | 6 | (27) | (16) |
Allowance for loan losses, ending balance | 101 | 91 | 114 |
Commercial real estate [Member] | |||
Allowance for Loan Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 19,466 | 21,535 | 10,565 |
Charge-offs | (451) | 0 | 0 |
Recoveries | 25 | 13 | 12 |
Provision for loan losses | (2,465) | (2,082) | 10,958 |
Allowance for loan losses, ending balance | 16,575 | 19,466 | 21,535 |
Consumer and other [Member] | |||
Allowance for Loan Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 46 | 75 | 77 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 5 | 11 |
Provision for loan losses | 42 | (34) | (13) |
Allowance for loan losses, ending balance | $ 88 | $ 46 | $ 75 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses Schedule of Allowance for Loan Losses Based on Impairment Method (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, individually evaluated for impairment | $ 0 | $ 2,500 |
Allowance for loan losses, collectively evaluated for impairment | 25,473 | 25,864 |
Allowance for loan losses | 25,473 | 28,364 |
Commercial [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 |
Allowance for loan losses, collectively evaluated for impairment | 4,804 | 4,776 |
Allowance for loan losses | 4,804 | 4,776 |
Construction, land and land development [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 |
Allowance for loan losses, collectively evaluated for impairment | 3,548 | 3,646 |
Allowance for loan losses | 3,548 | 3,646 |
1-4 family residential first mortgages [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 |
Allowance for loan losses, collectively evaluated for impairment | 357 | 339 |
Allowance for loan losses | 357 | 339 |
Home Equity Loan [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 |
Allowance for loan losses, collectively evaluated for impairment | 101 | 91 |
Allowance for loan losses | 101 | 91 |
Commercial real estate [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, individually evaluated for impairment | 0 | 2,500 |
Allowance for loan losses, collectively evaluated for impairment | 16,575 | 16,966 |
Allowance for loan losses | 16,575 | 19,466 |
Consumer and other [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 |
Allowance for loan losses, collectively evaluated for impairment | 88 | 46 |
Allowance for loan losses | $ 88 | $ 46 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses Schedule of Loans by Impairment Method (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans, Allowance for Credit Losses [Line Items] | ||
Loans, individually evaluated for impairment | $ 322 | $ 8,948 |
Loans, collectively evaluated for impairment | 2,746,653 | 2,451,778 |
Loans | 2,746,975 | 2,460,726 |
Commercial [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Loans, individually evaluated for impairment | 0 | 0 |
Loans, collectively evaluated for impairment | 519,196 | 492,815 |
Loans | 519,196 | 492,815 |
Construction, land and land development [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Loans, individually evaluated for impairment | 0 | 0 |
Loans, collectively evaluated for impairment | 363,014 | 359,258 |
Loans | 363,014 | 359,258 |
1-4 family residential first mortgages [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Loans, individually evaluated for impairment | 322 | 349 |
Loans, collectively evaluated for impairment | 74,889 | 65,867 |
Loans | 75,211 | 66,216 |
Home Equity Loan [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Loans, individually evaluated for impairment | 0 | 0 |
Loans, collectively evaluated for impairment | 10,322 | 8,422 |
Loans | 10,322 | 8,422 |
Commercial real estate [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Loans, individually evaluated for impairment | 0 | 8,599 |
Loans, collectively evaluated for impairment | 1,771,940 | 1,521,619 |
Loans | 1,771,940 | 1,530,218 |
Consumer and other [Member] | ||
Loans, Allowance for Credit Losses [Line Items] | ||
Loans, individually evaluated for impairment | 0 | 0 |
Loans, collectively evaluated for impairment | 7,292 | 3,797 |
Loans | $ 7,292 | $ 3,797 |
Premises and Equipment, Net (De
Premises and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Premises and equipment [Line Items] | ||
Premises and equipment, gross | $ 65,129 | $ 46,047 |
Accumulated depreciation | (12,005) | (11,479) |
Premises and equipment, net | 53,124 | 34,568 |
Land [Member] | ||
Premises and equipment [Line Items] | ||
Premises and equipment, gross | 10,450 | 6,117 |
Buildings [Member] | ||
Premises and equipment [Line Items] | ||
Premises and equipment, gross | 37,173 | 21,423 |
Right-of-use assets under operating leases [Member] | ||
Premises and equipment [Line Items] | ||
Premises and equipment, gross | 4,487 | 5,730 |
Leasehold improvements [Member] | ||
Premises and equipment [Line Items] | ||
Premises and equipment, gross | 3,578 | 3,683 |
Furniture and equipment [Member] | ||
Premises and equipment [Line Items] | ||
Premises and equipment, gross | $ 9,441 | $ 9,094 |
Operating Leases Operating Le_3
Operating Leases Operating Leases Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Bank_branches | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Leases [Abstract] | |||
Number of bank branches with leased real estate | Bank_branches | 6 | ||
Operating lease, weighted average remaining lease term | 6 years 6 months | 6 years 9 months 18 days | |
Operating lease, weighted average discount rate, percent | 3.32% | 3.26% | |
Operating lease liability | Other Liabilities | Other Liabilities | |
Operating lease, rent expense | $ | $ 1,395 | $ 1,958 | $ 1,673 |
Operating Leases Schedule of op
Operating Leases Schedule of operating lease payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 1,413 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 857 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 588 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 503 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 347 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 1,534 | |
Lessee, Operating Lease, Liability, Payments, Due | 5,242 | |
Operating lease discount effect | $ (561) | |
Operating lease liability | Other Liabilities | Other Liabilities |
Deposits Deposits (Details)
Deposits Deposits (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Deposits [Abstract] | |
Time deposit maturities, 2023 | $ 395,927 |
Time deposit maturities, 2024 | 8,914 |
Time deposit maturities, 2025 | 2,815 |
Time deposit maturities, 2026 | 2,640 |
Time deposit maturities, 2027 | 2,369 |
Time deposits, total | $ 412,665 |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | 12 Months Ended | ||||
Jun. 15, 2027 | Dec. 31, 2022 | Jun. 14, 2022 | Dec. 31, 2021 | Jul. 18, 2003 | |
Debt Instrument [Line Items] | |||||
Debt instrument, frequency of periodic payment | semi-annually | ||||
Other subordinated debt, interest rate | 5.25% | ||||
Subordinated debt used for subsidiary capital injection | $ 58,650,000 | ||||
Junior subordinated debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Junior subordinated debt, gross | $ 20,619,000 | ||||
Deferral period option, junior subordinated debentures | 5 years | ||||
Dividends allowed, deferral of junior subordinated debentures | $ 0 | ||||
Term of junior subordinated debenture maturity | 30 years | ||||
Debt instrument, variable interest rate, period end | 7.78% | ||||
Debt instrument, frequency of periodic payment | quarterly | ||||
Debt instrument, interest rate, effective percentage | 7.84% | ||||
Debt instrument, unamortized discount and debt issuance costs | $ 141,000 | $ 154,000 | |||
Subordinated debt with an interest rate swap contract | $ 20,000,000 | ||||
Fixed interest rate of junior subordinated debt due to interest rate swap | 481% | ||||
Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, unamortized discount and debt issuance costs | $ 1,109,000 | ||||
Other subordinated debt, gross | $ 60,000,000 | ||||
Other subordinated debt, due date | Jun. 15, 2032 | ||||
Subordinated Debt | Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, frequency of periodic payment | quarterly | ||||
London Interbank Offered Rate (LIBOR) [Member] | Junior subordinated debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, description of variable rate basis | 3-month LIBOR | ||||
Debt instrument, basis spread on variable rate | 3.05% | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Subordinated Debt | Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, description of variable rate basis | three-month term Secured Overnight Financing Rate (SOFR) | ||||
Debt instrument, basis spread on variable rate | 2.41% |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances, Maturities Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Advance from Federal Home Loan Bank [Abstract] | ||
Federal Home Loan Bank advances | $ 155,000 | $ 125,000 |
Federal Home Loan Bank, advances, fixed rate, maturing in the next 12 months | $ 155,000 | $ 125,000 |
Federal Home Loan Bank, advances, weighted average contractual interest rate | 4.47% | 0.32% |
Federal Home Loan Bank, advances, weighted average effective interest rate | 2.32% | 2.09% |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances (Other Narratives) (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Overnight and other short-term FHLB advances | $ 200,000,000 |
Additional borrowing capacity, Federal Home Loan Bank advances | 372,000,000 |
Federal Reserve, remaining borrowing capacity | $ 3,830,000 |
Federal Reserve, collateral | no |
Federal funds lines of credit at correspondent banks [Member] | |
Debt Instrument [Line Items] | |
Amount outstanding, line of credit | $ 0 |
Federal funds lines of credit at correspondent banks [Member] | Unsecured debt [Member] | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity, line of credit | $ 67,000,000 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) | 12 Months Ended | |||
Dec. 15, 2021 | Dec. 21, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Debt instrument, frequency of periodic payment | semi-annually | |||
Secured debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 40,000,000 | |||
Debt instrument, frequency of periodic payment | quarterly | |||
Debt instrument, periodic payment, principal | $ 1,250,000 | |||
Debt instrument, gross | $ 40,000,000 | |||
DebtInstrumentMaturityMonthandYear | Feb. 05, 2027 | |||
Secured debt [Member] | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, description of variable rate basis | Wall Street Journal Prime Rate | |||
Debt instrument basis spread reduction on variable rate | 1% | |||
Debt instrument, interest rate, stated percentage | 6.50% | |||
Special purpose subsidiary debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 11,486,000 | |||
Debt instrument, frequency of periodic payment | monthly | |||
Debt instrument, interest rate, stated percentage | 1% | |||
Debt instrument, gross | $ 11,486,000 | $ 11,486,000 |
Long-term debt Maturities of lo
Long-term debt Maturities of long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-Term Debt, Unclassified [Abstract] | ||
Long-term debt, maturities, repayments of principal in next twelve months | $ 3,750 | |
Long-term debt, maturities, repayments of principal in year two | 5,000 | |
Long-term debt, maturities, repayments of principal in year three | 5,000 | |
Long-term debt, maturities, repayments of principal in year four | 5,446 | |
Long-term debt, maturities, repayments of principal in year five | 21,701 | |
Long-term debt, maturities, repayments of principal after year five | 10,589 | |
Long-term debt | $ 51,486 | $ 51,521 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||||
FHLB Advances repaid related to terminated swaps | $ 50,000 | ||||
Interest rate swaps terminated | Other Income | |||||
Derivatives, Fair Value [Line Items] | |||||
Swap termination losses reclassified to noninterest income, before tax | $ 0 | (3,600) | $ 0 | ||
Not Designated as Hedging Instrument [Member] | Interest rate swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | 254,369 | 172,008 | |||
Not Designated as Hedging Instrument [Member] | Interest rate swaps terminated | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | 100,000 | ||||
Not Designated as Hedging Instrument [Member] | Interest rate swaps terminated | Other Income | |||||
Derivatives, Fair Value [Line Items] | |||||
Swap termination losses reclassified to noninterest income, before tax | 3,781 | ||||
Not Designated as Hedging Instrument [Member] | Other assets [Member] | Interest rate swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest rate non-hedging derivative asset at fair value | 15,309 | 3,887 | |||
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest rate swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest rate non-hedging derivative liability at fair value | (15,309) | (3,887) | |||
Cash flow hedging [Member] | Designated as hedging instrument [Member] | Interest rate swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | $ 310,000 | $ 255,000 | |||
Weighted average floating interest rate received | 4.53% | 0.39% | |||
Weighted average fixed interest rate paid | 2.25% | 2.09% | |||
Weighted average maturity - years | 3 years 3 months 18 days | 4 years 2 months 12 days | |||
Cash pledged as collateral | $ 0 | $ 4,500 | |||
Counterparty collateral already posted | 31,560 | 0 | |||
Cash flow hedging [Member] | Designated as hedging instrument [Member] | Interest rate swap hedging rolling short-term funding [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | 180,000 | ||||
Cash flow hedging [Member] | Designated as hedging instrument [Member] | Forward-starting interest rate swap hedging rolling funding | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | 25,000 | ||||
Cash flow hedging [Member] | Designated as hedging instrument [Member] | Interest rate swap hedging FHLB advances and subordinated notes [Domain] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | 20,000 | ||||
Cash flow hedging [Member] | Designated as hedging instrument [Member] | Interest rate swap hedging deposit accounts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | 110,000 | ||||
Cash flow hedging [Member] | Designated as hedging instrument [Member] | Interest rate swaps terminated | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | $ 50,000 | ||||
Cash flow hedging [Member] | Designated as hedging instrument [Member] | Other assets [Member] | Interest rate swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest rate cash flow hedge asset at fair value | 16,284 | 0 | |||
Cash flow hedging [Member] | Designated as hedging instrument [Member] | Other Liabilities [Member] | Interest rate swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest rate cash flow hedge liability at fair value | $ 0 | $ (7,517) | |||
Cash flow hedging [Member] | Designated as hedging instrument [Member] | Forecast [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative instruments, gain (loss) reclassification from accumulated OCI to income, estimated net amount to be transferred | $ (6,477) |
Derivatives Pre-Tax Losses (Det
Derivatives Pre-Tax Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax cash flow hedge gain (loss) recognized in other comprehensive income | $ 23,595 | $ 8,047 | $ (22,278) |
Cash flow hedge gain (loss), reclassified to interest expense, before tax | (206) | (8,284) | (4,156) |
Interest rate swaps terminated | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Swap termination losses reclassified to noninterest income, before tax | 0 | (3,600) | 0 |
Designated as hedging instrument [Member] | Interest rate swap [Member] | Cash flow hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax cash flow hedge gain (loss) recognized in other comprehensive income | 23,595 | 8,047 | (22,278) |
Designated as hedging instrument [Member] | Interest rate swap [Member] | Interest expense [Member] | Cash flow hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedge gain (loss), reclassified to interest expense, before tax | $ (206) | $ (4,684) | $ (4,187) |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current federal income tax expense | $ 8,194 | $ 9,789 | $ 8,773 |
Current state income tax expense | 3,221 | 3,430 | 2,921 |
Deferred federal income tax expense | 971 | 44 | (2,564) |
Deferred state income tax expense | 612 | 38 | (461) |
Income tax expense | $ 12,998 | $ 13,301 | $ 8,669 |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax reconciliation, income tax expense, at federal statutory income tax rate, amount | $ 12,473 | $ 13,211 | $ 8,690 | ||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21% | 21% | 21% | ||
Income tax reconciliation, state income taxes, amount | 2,729 | $ 2,747 | $ 1,846 | ||
Effective income tax rate reconciliation, state income taxes, percent | 4.60% | 4.40% | 4.50% | ||
Income tax reconciliation, tax exempt interest income, amount | (1,240) | $ (1,091) | $ (647) | ||
Effective income rate tax reconciliation, tax exempt interest income, percent | (2.10%) | (1.70%) | (1.60%) | ||
Income tax reconciliation, nondeductible interest expense to own tax-exempt securities, amount | 354 | $ 141 | $ 88 | ||
Effective income tax rate reconciliation, nondeductible interest expense to own tax-exempt securities, percent | 0.60% | 0.20% | 0.20% | ||
Income tax reconciliation, tax-exempt increase in cash value of life insurance and gains, amount | (203) | $ (194) | $ (125) | ||
Effective income tax rate reconciliation, tax-exempt increase in cash value of life insurance and gains, percent | (0.30%) | (0.30%) | (0.30%) | ||
Income tax reconciliation, stock compensation, amount | (320) | $ (195) | $ 97 | ||
Effective income tax rate reconciliation, stock compensation, percent | (0.60%) | (0.30%) | 0.20% | ||
Income tax reconciliation, change in enacted tax rate, amount | 649 | $ 0 | $ 0 | ||
Effective income tax rate reconciliation, change in enacted state tax rate, percent | 1.10% | 0% | 0% | ||
Income tax reconciliation, federal income tax credits, amount | (1,468) | $ (1,368) | $ (1,239) | ||
Effective income tax rate reconciliation, federal income tax credits, percent | (2.50%) | (2.20%) | (3.00%) | ||
Income tax reconciliation, other adjustments, amount | 24 | $ 50 | $ (41) | ||
Effective income tax rate reconciliation, other adjustments, percent | 0.10% | 0.10% | (0.10%) | ||
Income tax expense | 12,998 | $ 13,301 | $ 8,669 | ||
One-time adjustment to income tax expense related to a change in the enacted state tax rate | $ 671 | ||||
Effective income tax rate | 21.90% | 21.90% | 21.20% | 20.90% | |
Effective income tax rate excluding change in enacted rate | 20.80% |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, allowance for loan losses | $ 6,241 | $ 7,176 |
Deferred tax assets, net unrealized losses on securities available for sale | 34,544 | 1,701 |
Deferred tax assets, net unrealized losses on interest rate swaps | 0 | 1,903 |
Deferred tax assets, lease liabilities | 1,147 | 1,502 |
Deferred tax assets, accrued expenses | 434 | 395 |
Deferred tax assets, restricted stock unit compensation | 1,038 | 821 |
Deferred tax assets, state net operating loss carryforward | 1,476 | 1,276 |
Deferred tax assets, other | 156 | 139 |
Deferred tax assets, gross | 45,036 | 14,913 |
Deferred tax liabilities, right-of-use assets | 1,099 | 1,450 |
Deferred tax liabilities, deferred loan costs | 249 | 247 |
Deferred tax liabilities, net unrealized gains on interest rate swaps | 4,003 | 0 |
Deferred tax liabilities, premises and equipment | 1,219 | 809 |
Deferred tax liabilities, other | 381 | 312 |
Deferred tax liabilities, gross | 6,951 | 2,818 |
Deferred tax assets, net, before valuation allowance | 38,085 | 12,095 |
Valuation allowance | (1,476) | (1,276) |
Deferred tax assets, net | $ 36,609 | $ 10,819 |
Income Taxes Schedule of Operat
Income Taxes Schedule of Operating Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Loss Carryforwards [Line Items] | |
State net operating loss carryforwards | $ 36,896 |
Expired in Prior 12 Months [Domain] | |
Operating Loss Carryforwards [Line Items] | |
State net operating loss carryforwards | $ 216 |
Income Taxes Schedule of Penalt
Income Taxes Schedule of Penalties and Interest (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Material income tax interest and penalties recognized | $ 0 | $ 0 | $ 0 |
Stock Compensation Plans Restri
Stock Compensation Plans Restricted Stock Unit Activity (Details) - Restricted stock units (RSUs) [Member] - Common stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Stock compensation plan, restricted stock units, outstanding beginning of period (number of shares) | 408,800 | 390,265 | 380,600 |
Stock compensation plan, restricted stock units, grants in period (number of shares) | 169,357 | 156,000 | 147,465 |
Stock compensation plan, restricted stock units, vested in period (number of shares) | (139,920) | (135,965) | (137,800) |
Stock compensation plan, restricted stock units, forfeited in period (number of shares) | 0 | (1,500) | 0 |
Stock compensation plan, restricted stock units, outstanding end of period (number of shares) | 438,237 | 408,800 | 390,265 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Stock compensation plan, restricted stock units, outstanding beginning of period, weighted average grant date fair value ($ per share) | $ 20.07 | $ 19.35 | $ 21.52 |
Stock compensation plan, restricted stock units, grants in period, weighted average grant date fair value ($ per share) | 23.26 | 21.61 | 15.38 |
Stock compensation plan, restricted stock units, vested in period, weighted average grant date fair value ($ per share) | 21.38 | 19.65 | 21.09 |
Stock compensation plan, restricted stock units, forfeited in period, weighted average grant date fair value ($ per share) | 0 | 31.37 | 0 |
Stock compensation plan, restricted stock units, outstanding end of period, weighted average grand date fair value ($ per share) | $ 20.87 | $ 20.07 | $ 19.35 |
Stock Compensation Plans Narrat
Stock Compensation Plans Narratives (Details) - Common stock [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted stock units (RSUs) [Member] | |||
Stock compensation plan [Line Items] | |||
Restricted stock unit employee expense | $ 0 | ||
Shares of common stock per restricted stock unit | 1 | ||
Stock compensation plan, restricted stock units, vested in period, fair value | $ 3,889 | $ 3,280 | $ 2,150 |
Stock compensation expense | 3,357 | 2,573 | 2,312 |
Stock compensation plan, tax benefit from vesting of restricted stock units | 385 | $ 233 | |
Stock compensation plan, tax expense from vesting of restricted stock units | $ 116 | ||
Stock compensation plan, restricted stock units, nonvested awards, compensation not yet recognized | $ 4,262 | ||
Stock compensation plan, restricted stock units, outstanding, weighted average remaining contractual terms | 1 year 6 months | ||
West Bancorporation, Inc. 2021 Equity Incentive Plan | |||
Stock compensation plan [Line Items] | |||
Stock compensation plan, restricted stock units, number of shares authorized | 625,000 | ||
Stock compensation plan, restricted stock units, number of shares available for grant | 442,643 |
Employee Savings and Stock Ow_2
Employee Savings and Stock Ownership Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Savings and Stock Ownership Plan [Abstract] | |||
Defined contribution plan, employer matching contribution, percent of company match | 100% | 100% | 100% |
Defined contribution plan, employer matching contribution, percent of employee's gross pay | 6% | 6% | 6% |
Defined contribution plan, employer discretionary contribution percent | 4% | 4% | 4% |
Expense, defined contribution plan, employer contributions | $ 1,395 | $ 1,319 | $ 1,256 |
Shares held in employee stock ownership plan, allocated | 329,712 | 336,948 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), balance beg of period | $ (10,637) | ||
Net current period other comprehensive income (loss) | (80,834) | $ 1,209 | $ (8,585) |
Accumulated other comprehensive income (loss), balance end of period | (91,471) | (10,637) | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), balance beg of period | (5,021) | 5,994 | 1,057 |
Other comprehensive income (loss), before reclassifications, net of tax | (98,637) | (10,977) | 4,994 |
Amounts reclassified from accumulated other comprehensive income, current period, net of tax | (22) | (38) | (57) |
Net current period other comprehensive income (loss) | (98,659) | (11,015) | 4,937 |
Accumulated other comprehensive income (loss), balance end of period | (103,680) | (5,021) | 5,994 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), balance beg of period | (5,616) | (17,840) | (4,318) |
Other comprehensive income (loss), before reclassifications, net of tax | 17,739 | 6,032 | (16,653) |
Amounts reclassified from accumulated other comprehensive income, current period, net of tax | 86 | 6,192 | 3,131 |
Net current period other comprehensive income (loss) | 17,825 | 12,224 | (13,522) |
Accumulated other comprehensive income (loss), balance end of period | 12,209 | (5,616) | (17,840) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), balance beg of period | (10,637) | (11,846) | (3,261) |
Other comprehensive income (loss), before reclassifications, net of tax | (80,898) | (4,945) | (11,659) |
Amounts reclassified from accumulated other comprehensive income, current period, net of tax | 64 | 6,154 | 3,074 |
Net current period other comprehensive income (loss) | (80,834) | 1,209 | (8,585) |
Accumulated other comprehensive income (loss), balance end of period | $ (91,471) | $ (10,637) | $ (11,846) |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital | $ 408,056,000 | $ 319,329,000 |
Total capital to risk weighted assets ratio | 0.1208 | 0.1089 |
Total capital required for capital adequacy | $ 270,221,000 | $ 234,670,000 |
Total capital required for capital adequacy to risk-weighted assets ratio | 0.0800 | 0.0800 |
Total capital required for capital adequacy with capital conservation buffer | $ 354,665,000 | $ 308,004,000 |
Total capital required for capital adequacy with capital conservation buffer to risk-weighted assets ratio | 10.50% | 10.50% |
Total capital required to be well-capitalized | $ 337,776,000 | $ 293,337,000 |
Total capital required to be well-capitalized to risk-weighted assets ratio | 0.1000 | 0.1000 |
Tier one risk-based capital | $ 322,583,000 | $ 290,965,000 |
Tier one risk-based capital to risk-weighted assets ratio | 0.0955 | 0.0992 |
Tier one risk-based capital required for capital adequacy | $ 202,666,000 | $ 176,002,000 |
Tier one risk-based capital required for capital adequacy to risk-weighted assets ratio | 0.0600 | 0.0600 |
Tier one risk-based capital required for capital adequacy with capital conservation buffer | $ 287,110,000 | $ 249,337,000 |
Tier one risk-based capital required for capital adequacy with capital conservation buffer to risk-weighted assets ratio | 8.50% | 8.50% |
Tier one risk-based capital required to be well-capitalized | $ 270,221,000 | $ 234,670,000 |
Tier one risk-based capital required to be well-capitalized to risk-weighted assets ratio | 0.0800 | 0.0800 |
Common equity tier one risk-based capital | $ 302,583,000 | $ 270,965,000 |
Common equity tier one risk-based capital to risk-weighted assets ratio | 0.0896 | 0.0924 |
Common equity tier one risk-based capital required for capital adequacy | $ 151,999,000 | $ 132,002,000 |
Common equity tier one risk-based capital required for capital adequacy to risk-weighted assets ratio | 0.0450 | 0.0450 |
Common equity tier one risk-based capital required for capital adequacy with capital conservation buffer | $ 236,443,000 | $ 205,336,000 |
Common equity tier one risk-based capital required for capital adequacy with capital conservation buffer to risk-weighted assets ratio | 7% | 7% |
Common equity tier one risk-based capital required to be well-capitalized | $ 219,555,000 | $ 190,669,000 |
Common equity tier one risk-based capital required to be well-capitalized to risk-weighted assets ratio | 0.0650 | 0.0650 |
Tier one leverage capital | $ 322,583,000 | $ 290,965,000 |
Tier one leverage capital to average assets ratio | 0.0881 | 0.0849 |
Tier one leverage capital required for capital adequacy | $ 146,439,000 | $ 137,065,000 |
Tier one leverage capital required for capital adequacy to average assets ratio | 0.0400 | 0.0400 |
Tier one leverage capital required for capital adequacy with capital conservation buffer | $ 146,439,000 | $ 137,065,000 |
Tier one leverage capital required for capital adequacy with capital conservation buffer to average assets ratio | 4% | 4% |
Tier one leverage capital required to be well-capitalized | $ 183,049,000 | $ 171,331,000 |
Tier one leverage capital required to be well-capitalized to average assets ratio | 0.0500 | 0.0500 |
Tangible capital to tangible assets ratio | 0.0584 | 0.0744 |
Intangible assets | $ 0 | $ 0 |
Preferred stock, shares outstanding | shares | 0 | 0 |
West Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital | $ 441,628,000 | $ 354,846,000 |
Total capital to risk weighted assets ratio | 0.1308 | 0.1210 |
Total capital required for capital adequacy | $ 270,053,000 | $ 234,621,000 |
Total capital required for capital adequacy to risk-weighted assets ratio | 0.0800 | 0.0800 |
Total capital required for capital adequacy with capital conservation buffer | $ 354,445,000 | $ 307,941,000 |
Total capital required for capital adequacy with capital conservation buffer to risk-weighted assets ratio | 10.50% | 10.50% |
Total capital required to be well-capitalized | $ 337,566,000 | $ 293,277,000 |
Total capital required to be well-capitalized to risk-weighted assets ratio | 0.1000 | 0.1000 |
Tier one risk-based capital | $ 416,155,000 | $ 326,482,000 |
Tier one risk-based capital to risk-weighted assets ratio | 0.1233 | 0.1113 |
Tier one risk-based capital required for capital adequacy | $ 202,540,000 | $ 175,966,000 |
Tier one risk-based capital required for capital adequacy to risk-weighted assets ratio | 0.0600 | 0.0600 |
Tier one risk-based capital required for capital adequacy with capital conservation buffer | $ 286,930,000 | $ 249,284,000 |
Tier one risk-based capital required for capital adequacy with capital conservation buffer to risk-weighted assets ratio | 8.50% | 8.50% |
Tier one risk-based capital required to be well-capitalized | $ 270,053,000 | $ 234,621,000 |
Tier one risk-based capital required to be well-capitalized to risk-weighted assets ratio | 0.0800 | 0.0800 |
Common equity tier one risk-based capital | $ 416,155,000 | $ 326,482,000 |
Common equity tier one risk-based capital to risk-weighted assets ratio | 0.1233 | 0.1113 |
Common equity tier one risk-based capital required for capital adequacy | $ 151,905,000 | $ 131,975,000 |
Common equity tier one risk-based capital required for capital adequacy to risk-weighted assets ratio | 0.0450 | 0.0450 |
Common equity tier one risk-based capital required for capital adequacy with capital conservation buffer | $ 236,296,000 | $ 205,294,000 |
Common equity tier one risk-based capital required for capital adequacy with capital conservation buffer to risk-weighted assets ratio | 7% | 7% |
Common equity tier one risk-based capital required to be well-capitalized | $ 219,418,000 | $ 190,630,000 |
Common equity tier one risk-based capital required to be well-capitalized to risk-weighted assets ratio | 0.0650 | 0.0650 |
Tier one leverage capital | $ 416,155,000 | $ 326,482,000 |
Tier one leverage capital to average assets ratio | 0.1137 | 0.0953 |
Tier one leverage capital required for capital adequacy | $ 146,367,000 | $ 137,011,000 |
Tier one leverage capital required for capital adequacy to average assets ratio | 0.0400 | 0.0400 |
Tier one leverage capital required for capital adequacy with capital conservation buffer | $ 146,367,000 | $ 137,011,000 |
Tier one leverage capital required for capital adequacy with capital conservation buffer to average assets ratio | 4% | 4% |
Tier one leverage capital required to be well-capitalized | $ 182,958,000 | $ 171,264,000 |
Tier one leverage capital required to be well-capitalized to average assets ratio | 0.0500 | 0.0500 |
Commitments and Contingencies C
Commitments and Contingencies Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loan commitments | $ 1,085,123 | $ 897,649 |
Commitments to Fund Real Estate Construction Loans | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loan commitments | 336,900 | 294,580 |
Other commitments to extend credit | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loan commitments | 727,666 | 585,678 |
Standby letters of credit [Member] | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loan commitments | $ 20,557 | $ 17,391 |
Commitments and Contingencies O
Commitments and Contingencies Other Narratives (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Loan commitments | $ 1,085,123,000 | $ 897,649,000 |
FHLB MPF program remaining outstanding balance of loans sold | 23,337,000 | 31,552,000 |
Commitments to extend credit [Member] | Commitments to extend credit, expiration after one year [Member] | ||
Loss Contingencies [Line Items] | ||
Loan commitments | 196,447,000 | |
Standby letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Loan commitments | 20,557,000 | 17,391,000 |
Guarantor obligations, current carrying value | $ 0 | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies Contractual commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Affordable Housing Project Investment [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Contractual obligation | $ 3,431 | $ 3,986 |
Office building contract - West Des Moines, IA, headquarters [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Contractual obligation | 34,938 | |
Guaranteed maximum contract price | 42,309 | |
Office Building Contract, Mankato, MN | ||
Long-term Purchase Commitment [Line Items] | ||
Contractual obligation | $ 6,520 |
Fair Value Measurements Recurri
Fair Value Measurements Recurring Basis by Level (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 664,115 | $ 758,822 |
Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Interest rate swaps, derivative asset | Other assets | |
Interest rate swaps, derivative asset | 3,887 | |
Interest rate swaps, derivative liability | Accrued expenses and other liabilities | |
Interest rate swaps, derivative liability | 11,404 | |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Interest rate swaps, derivative asset | Other assets | |
Interest rate swaps, derivative asset | 0 | |
Interest rate swaps, derivative liability | Accrued expenses and other liabilities | |
Interest rate swaps, derivative liability | 0 | |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Interest rate swaps, derivative asset | Other assets | |
Interest rate swaps, derivative asset | 3,887 | |
Interest rate swaps, derivative liability | Accrued expenses and other liabilities | |
Interest rate swaps, derivative liability | 11,404 | |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Interest rate swaps, derivative asset | Other assets | |
Interest rate swaps, derivative asset | 0 | |
Interest rate swaps, derivative liability | Accrued expenses and other liabilities | |
Interest rate swaps, derivative liability | 0 | |
State and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 193,355 | 232,447 |
State and political subdivisions [Member] | Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 193,355 | 232,447 |
State and political subdivisions [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
State and political subdivisions [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 193,355 | 232,447 |
State and political subdivisions [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Collateralized mortgage obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 281,628 | 320,773 |
Collateralized mortgage obligations [Member] | Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 281,628 | 320,773 |
Collateralized mortgage obligations [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Collateralized mortgage obligations [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 281,628 | 320,773 |
Collateralized mortgage obligations [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 140,280 | 155,060 |
Mortgage-backed securities [Member] | Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 140,280 | 155,060 |
Mortgage-backed securities [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Mortgage-backed securities [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 140,280 | 155,060 |
Mortgage-backed securities [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 36,811 | 37,782 |
Collateralized Loan Obligations [Member] | Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 36,811 | 37,782 |
Collateralized Loan Obligations [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Collateralized Loan Obligations [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 36,811 | 37,782 |
Collateralized Loan Obligations [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Corporate notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 12,041 | 12,760 |
Corporate notes [Member] | Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 12,041 | 12,760 |
Corporate notes [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Corporate notes [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | 12,041 | 12,760 |
Corporate notes [Member] | Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 0 | $ 0 |
Fair Value Measurements Nonrecu
Fair Value Measurements Nonrecurring Basis by Level (Details) - Fair Value, measurements, nonrecurring [Member] - Fair value, inputs, level 3 [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | $ 0 | $ 6,099 |
Carrying value of collateral dependent impaired loans before specific reserve | 8,599 | |
Specific reserve related to collateral dependent impaired loans | $ 2,500 |
Fair Value Measurements Carryin
Fair Value Measurements Carrying Amounts and Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | $ 24,896 | $ 17,555 |
Interest-bearing deposits | 1,643 | 175,270 |
Securities available for sale, at fair value | 664,115 | 758,822 |
Federal Home Loan Bank stock, at cost | 19,336 | 9,965 |
Loans, net | 2,717,363 | 2,427,832 |
Accrued interest receivable | 11,988 | 8,890 |
Deposits | 2,880,408 | 3,016,005 |
Federal funds purchased and other short-term borrowings | 200,000 | 2,880 |
Subordinated notes, net | 79,369 | 20,465 |
Federal Home Loan Bank advances | 155,000 | 125,000 |
Long-term debt | 51,486 | 51,521 |
Fair value, inputs, level 1 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 24,896 | 17,555 |
Interest-bearing deposits | 1,643 | 175,270 |
Federal Home Loan Bank stock, at cost | 19,336 | 9,965 |
Accrued interest receivable | 11,988 | 8,890 |
Federal funds purchased and other short-term borrowings | 200,000 | 2,880 |
Interest Payable | 3,260 | 519 |
Fair value, inputs, level 1 [Member] | Estimate of fair value, fair value disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 24,896 | 17,555 |
Interest-bearing deposits | 1,643 | 175,270 |
Federal Home Loan Bank stock, at cost | 19,336 | 9,965 |
Accrued interest receivable | 11,988 | 8,890 |
Federal funds purchased and other short-term borrowings | 200,000 | 2,880 |
Interest Payable | 3,260 | 519 |
Fair value, inputs, level 2 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale, at fair value | 664,115 | 758,822 |
Loans, net | 2,717,363 | 2,427,832 |
Interest rate swaps, derivative asset | 31,593 | 3,887 |
Deposits | 2,880,408 | 3,016,005 |
Subordinated notes, net | 79,369 | 20,465 |
Federal Home Loan Bank advances | 155,000 | 125,000 |
Long-term debt | 51,486 | 51,521 |
Interest rate swaps, derivative liability | 15,309 | 11,404 |
Fair value, inputs, level 2 [Member] | Estimate of fair value, fair value disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale, at fair value | 664,115 | 758,822 |
Loans, net | 2,582,911 | 2,446,982 |
Interest rate swaps, derivative asset | 31,593 | 3,887 |
Deposits | 2,880,495 | 3,016,305 |
Subordinated notes, net | 68,047 | 17,122 |
Federal Home Loan Bank advances | 155,000 | 125,000 |
Long-term debt | 51,486 | 51,521 |
Interest rate swaps, derivative liability | 15,309 | 11,404 |
Fair value, inputs, level 3 [Member] | Estimate of fair value, fair value disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 6,099 | |
Standby letters of credit [Member] | Fair value, inputs, level 1 [Member] | Estimate of fair value, fair value disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Standby letters of credit | 0 | 0 |
Standby letters of credit [Member] | Fair value, inputs, level 2 [Member] | Estimate of fair value, fair value disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Standby letters of credit | 0 | 0 |
Standby letters of credit [Member] | Fair value, inputs, level 3 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Standby letters of credit | 0 | 0 |
Standby letters of credit [Member] | Fair value, inputs, level 3 [Member] | Estimate of fair value, fair value disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Standby letters of credit | 0 | 0 |
Commitments to extend credit [Member] | Fair value, inputs, level 1 [Member] | Estimate of fair value, fair value disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Standby letters of credit | 0 | 0 |
Commitments to extend credit [Member] | Fair value, inputs, level 2 [Member] | Estimate of fair value, fair value disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Standby letters of credit | 0 | 0 |
Commitments to extend credit [Member] | Fair value, inputs, level 3 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Standby letters of credit | 0 | 0 |
Commitments to extend credit [Member] | Fair value, inputs, level 3 [Member] | Estimate of fair value, fair value disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Standby letters of credit | $ 0 | $ 0 |
Fair Value Measurements Narrati
Fair Value Measurements Narratives (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Transfers between levels, fair value disclosure | $ 0 | $ 0 |
Condensed Balance Sheets - Pare
Condensed Balance Sheets - Parent Company Only (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Other assets | $ 39,571 | $ 12,871 | ||
Total assets | 3,613,218 | 3,500,201 | ||
LIABILITIES | ||||
Accrued expenses and other liabilities | 35,843 | 24,002 | ||
Subordinated notes, net | 79,369 | 20,465 | ||
Long-term debt | 51,486 | 51,521 | ||
Total liabilities | 3,402,106 | 3,239,873 | ||
STOCKHOLDERS’ EQUITY | ||||
Preferred stock | 0 | 0 | ||
Common stock | 3,000 | 3,000 | ||
Additional paid-in capital | 32,021 | 30,183 | ||
Retained earnings | 267,562 | 237,782 | ||
Accumulated other comprehensive income (loss) | (91,471) | (10,637) | ||
Total stockholders’ equity | 211,112 | 260,328 | $ 223,695 | $ 211,820 |
Total liabilities and stockholders’ equity | 3,613,218 | 3,500,201 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash | 5,811 | 4,646 | $ 4,463 | $ 4,122 |
Investment in West Bank | 323,458 | 316,150 | ||
Investment in West Bancorporation Capital Trust I | 619 | 619 | ||
Other assets | 1,787 | 28 | ||
Total assets | 331,675 | 321,443 | ||
LIABILITIES | ||||
Accrued expenses and other liabilities | 1,194 | 650 | ||
Subordinated notes, net | 79,369 | 20,465 | ||
Long-term debt | 40,000 | 40,000 | ||
Total liabilities | 120,563 | 61,115 | ||
STOCKHOLDERS’ EQUITY | ||||
Preferred stock | 0 | 0 | ||
Common stock | 3,000 | 3,000 | ||
Additional paid-in capital | 32,021 | 30,183 | ||
Retained earnings | 267,562 | 237,782 | ||
Accumulated other comprehensive income (loss) | (91,471) | (10,637) | ||
Total stockholders’ equity | 211,112 | 260,328 | ||
Total liabilities and stockholders’ equity | $ 331,675 | $ 321,443 |
Condensed Statements of Income-
Condensed Statements of Income- Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Expenses [Abstract] | |||
Interest on subordinated notes | $ 2,867 | $ 1,008 | $ 1,016 |
Interest on long-term debt | 1,680 | 316 | 400 |
Income tax benefits | 12,998 | 13,301 | 8,669 |
Net income | 46,399 | 49,607 | 32,712 |
Parent Company [Member] | |||
Operating Income | |||
Equity in net income of West Bank | 50,185 | 50,880 | 34,069 |
Equity in net income of West Bancorporation Capital Trust I | 30 | 21 | 25 |
Other Income | 0 | 0 | 3 |
Total operating income | 50,215 | 50,901 | 34,097 |
Operating Expenses [Abstract] | |||
Interest on subordinated notes | 2,867 | 1,008 | 1,016 |
Interest on long-term debt | 1,565 | 201 | 283 |
Other expenses | 576 | 542 | 550 |
Total operating expenses | 5,008 | 1,751 | 1,849 |
Income before income taxes | 45,207 | 49,150 | 32,248 |
Income tax benefits | (1,192) | (457) | (464) |
Net income | $ 46,399 | $ 49,607 | $ 32,712 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net income | $ 46,399 | $ 49,607 | $ 32,712 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income tax (benefits) | 1,583 | 82 | (3,025) |
Change in assets and liabilities: | |||
(Increase) decrease in other assets | 1,005 | 2,118 | (490) |
Increase (decrease) in accrued expenses and other liabilities | 9,194 | 16 | 152 |
Net Cash Provided by (Used in) Operating Activities | 59,439 | 57,878 | 42,285 |
Cash Flows from Investing Activities: | |||
Net Cash Provided by (Used in) Investing Activities | (357,831) | (537,211) | (367,163) |
Cash Flows from Financing Activities: | |||
Proceeds from long-term debt | 0 | 34,500 | 0 |
Common stock cash dividends | (16,619) | (15,543) | (13,815) |
Net Cash Provided by (Used in) Financing Activities | 132,106 | 275,723 | 668,023 |
Parent Company [Member] | |||
Cash Flows from Operating Activities: | |||
Net income | 46,399 | 49,607 | 32,712 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in net income of West Bank | (50,185) | (50,880) | (34,069) |
Equity in net income of West Bancorporation Capital Trust I | (30) | (21) | (25) |
Dividends received from West Bank | 21,000 | 21,500 | 16,800 |
Dividends received from West Bancorporation Capital Trust I | 30 | 21 | 25 |
Amortization | 148 | 13 | 13 |
Deferred income tax (benefits) | (8) | 1 | 2 |
Change in assets and liabilities: | |||
(Increase) decrease in other assets | (116) | (20) | (3) |
Increase (decrease) in accrued expenses and other liabilities | 440 | 5 | (49) |
Net Cash Provided by (Used in) Operating Activities | 17,678 | 20,226 | 15,406 |
Cash Flows from Investing Activities: | |||
Capital contribution to West Bank | (58,650) | (34,500) | 0 |
Net Cash Provided by (Used in) Investing Activities | (58,650) | (34,500) | 0 |
Cash Flows from Financing Activities: | |||
Proceeds from long-term debt | 58,756 | 34,500 | 0 |
Principal payments on long-term debt | 0 | (4,500) | (1,250) |
Common stock cash dividends | (16,619) | (15,543) | (13,815) |
Net Cash Provided by (Used in) Financing Activities | 42,137 | 14,457 | (15,065) |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect, Total | 1,165 | 183 | 341 |
Cash: | |||
Beginning | 4,646 | 4,463 | 4,122 |
Ending | $ 5,811 | $ 4,646 | $ 4,463 |