Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 08, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36522 | ||
Entity Registrant Name | Investar Holding Corp | ||
Entity Incorporation, State or Country Code | LA | ||
Entity Tax Identification Number | 27-1560715 | ||
Entity Address, Address Line One | 10500 Coursey Blvd. | ||
Entity Address, City or Town | Baton Rouge | ||
Entity Address, State or Province | LA | ||
Entity Address, Postal Zip Code | 70816 | ||
City Area Code | (225) | ||
Local Phone Number | 227-2222 | ||
Title of 12(b) Security | Common stock, $1.00 par value per share | ||
Trading Symbol | ISTR | ||
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 | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 146 | ||
Entity Common Stock, Shares Outstanding | 10,475,083 | ||
Documents Incorporated by Reference | Portions of the Definitive Proxy Statement relating to the 2021 Annual Meeting of Shareholders of Investar Holding Corporation are incorporated by reference into Part III of the Form 10-K. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2020. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001602658 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 25,672 | $ 23,769 |
Interest-bearing balances due from other banks | 9,696 | 20,539 |
Federal funds sold | 0 | 387 |
Cash and cash equivalents | 35,368 | 44,695 |
Available for sale securities at fair value (amortized cost of $263,913 and $258,104, respectively) | 268,410 | 259,805 |
Held to maturity securities at amortized cost (estimated fair value of $12,649 and $14,480, respectively) | 12,434 | 14,409 |
Loans, net of allowance for loan losses of $20,363 and $10,700, respectively | 1,839,955 | 1,681,275 |
Equity securities | 16,599 | 19,315 |
Bank premises and equipment, net of accumulated depreciation of $15,830 and $12,432, respectively | 56,303 | 50,916 |
Other real estate owned, net | 663 | 133 |
Accrued interest receivable | 12,969 | 7,913 |
Deferred tax asset | 1,360 | 0 |
Goodwill and other intangible assets, net | 32,232 | 31,035 |
Bank owned life insurance | 38,908 | 32,014 |
Other assets | 5,980 | 7,406 |
Total assets | 2,321,181 | 2,148,916 |
Deposits: | ||
Noninterest-bearing | 448,230 | 351,905 |
Interest-bearing | 1,439,594 | 1,355,801 |
Total deposits | 1,887,824 | 1,707,706 |
Advances from Federal Home Loan Bank | 120,500 | 131,600 |
Repurchase agreements | 5,653 | 2,995 |
Subordinated debt, net of unamortized issuance costs | 42,897 | 42,826 |
Junior subordinated debt | 5,949 | 5,897 |
Accrued taxes and other liabilities | 15,074 | 15,916 |
Total liabilities | 2,077,897 | 1,906,940 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, no par value per share; 5,000,000 shares authorized | 0 | 0 |
Common stock, $1.00 par value per share; 40,000,000 shares authorized; 10,608,869 and 11,228,775 shares issued and outstanding, respectively | 10,609 | 11,229 |
Surplus | 159,485 | 168,658 |
Retained earnings | 71,385 | 60,198 |
Accumulated other comprehensive income | 1,805 | 1,891 |
Total stockholders’ equity | 243,284 | 241,976 |
Total liabilities and stockholders’ equity | $ 2,321,181 | $ 2,148,916 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Available for sale securities at amortized cost | $ 263,913 | $ 258,104 |
Held-to-maturity securities at amortized cost, estimated fair value | 12,649 | 14,480 |
Allowance for loan losses | 20,363 | 10,700 |
Bank premises and equipment, accumulated depreciation | $ 15,830 | $ 12,432 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 10,608,869 | 11,228,775 |
Common stock, shares outstanding (in shares) | 10,608,869 | 11,228,775 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 87,365 | $ 80,954 | $ 66,750 |
Interest on investment securities | 5,613 | 7,440 | 6,608 |
Other interest income | 816 | 1,049 | 533 |
Total interest income | 93,794 | 89,443 | 73,891 |
INTEREST EXPENSE | |||
Interest on deposits | 15,376 | 19,307 | 11,394 |
Interest on borrowings | 4,884 | 5,318 | 5,127 |
Total interest expense | 20,260 | 24,625 | 16,521 |
Net interest income | 73,534 | 64,818 | 57,370 |
Provision for loan losses | 11,160 | 1,908 | 2,570 |
Net interest income after provision for loan losses | 62,374 | 62,910 | 54,800 |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 1,917 | 1,840 | 1,453 |
Gain on sale of investment securities, net | 2,289 | 262 | 14 |
(Loss) gain on sale of fixed assets, net | (38) | (11) | 98 |
Gain (loss) on sale of other real estate owned, net | 12 | 2 | (24) |
Servicing fees and fee income on serviced loans | 379 | 593 | 963 |
Interchange fees | 1,414 | 1,114 | 932 |
Income from bank owned life insurance | 894 | 703 | 628 |
Change in the fair value of equity securities | 268 | 341 | (267) |
Other operating income | 4,961 | 1,372 | 521 |
Total noninterest income | 12,096 | 6,216 | 4,318 |
Income before noninterest expense | 74,470 | 69,126 | 59,118 |
NONINTEREST EXPENSE | |||
Depreciation and amortization | 4,570 | 3,462 | 2,553 |
Salaries and employee benefits | 33,378 | 28,643 | 25,469 |
Occupancy | 2,236 | 1,837 | 1,378 |
Data processing | 3,069 | 2,360 | 2,090 |
Marketing | 333 | 260 | 237 |
Professional fees | 1,519 | 1,189 | 1,051 |
Acquisition expense | 1,062 | 2,090 | 1,445 |
Other operating expenses | 10,964 | 8,327 | 7,659 |
Total noninterest expense | 57,131 | 48,168 | 41,882 |
Income before income tax expense | 17,339 | 20,958 | 17,236 |
Income tax expense | 3,450 | 4,119 | 3,630 |
Net income | $ 13,889 | $ 16,839 | $ 13,606 |
EARNINGS PER SHARE | |||
Basic earnings per share (in dollars per share) | $ 1.27 | $ 1.68 | $ 1.41 |
Diluted earnings per share (in dollars per share) | 1.27 | 1.66 | 1.39 |
Cash dividends declared per common share (in dollars per share) | $ 0.25 | $ 0.23 | $ 0.17 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 13,889 | $ 16,839 | $ 13,606 |
Unrealized gain (loss) on investment securities: | |||
Unrealized gain (loss), available for sale, net of tax expense (benefit) of $1,068, $1,362, and $(419), respectively | 4,017 | 5,123 | (1,576) |
Reclassification of realized gain, net of tax expense of $481, $56, and $3, respectively | (1,808) | (206) | (11) |
Unrealized loss, transfer from available for sale to held to maturity, net of tax benefit of $0 for all respective periods | (1) | (1) | (2) |
Fair value of derivative financial instruments | |||
Change in fair value of interest rate swap designated as a cash flow hedge, net of tax (benefit) expense of $(610), $14, and $22, respectively | (2,294) | 51 | 84 |
Total other comprehensive (loss) income | (86) | 4,967 | (1,505) |
Total comprehensive income | $ 13,803 | $ 21,806 | $ 12,101 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss), available for sale, tax | $ 1,068 | $ 1,362 | $ (419) |
Realized gain, tax | 481 | 56 | 3 |
Unrealized loss, transfer from available for sale to held to maturity, tax | 0 | 0 | 0 |
Change in fair value of interest rate swaps designated as a cash flow hedge, tax | $ (610) | $ 14 | $ 22 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | [1] | Common Stock | Surplus | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | [1] | Accumulated Other Comprehensive Income (Loss) | |
Beginning of Period at Dec. 31, 2017 | $ 172,729 | $ (5) | $ 9,515 | $ 131,582 | $ 33,203 | $ (5) | $ (1,571) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Surrendered shares | (219) | (9) | (210) | |||||||
Shares repurchased | (3,368) | (132) | (3,236) | |||||||
Options and warrants exercised | 1,036 | 76 | 960 | |||||||
Dividends declared | (1,640) | (1,640) | ||||||||
Stock-based compensation | 1,071 | 34 | 1,037 | |||||||
Reclassification of tax effects of the Tax Cuts and Jobs Act | [2] | 557 | 557 | |||||||
Net income | 13,606 | 13,606 | ||||||||
Other comprehensive income (loss), net | (1,505) | (1,505) | ||||||||
End of Period at Dec. 31, 2018 | 182,262 | 9,484 | 130,133 | 45,721 | (3,076) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock issued in offering, net of direct costs of $1,475 | 28,525 | 1,290 | 27,235 | |||||||
Common stock issued in acquisition, net of issuance costs | 18,637 | 764 | 17,873 | |||||||
Stock issuance costs | (1,475) | |||||||||
Surrendered shares | (283) | (11) | (272) | |||||||
Shares repurchased | (8,326) | (360) | (7,966) | |||||||
Options and warrants exercised | 287 | 21 | 266 | |||||||
Dividends declared | (2,362) | (2,362) | ||||||||
Stock-based compensation | 1,430 | 41 | 1,389 | |||||||
Net income | 16,839 | 16,839 | ||||||||
Other comprehensive income (loss), net | 4,967 | 4,967 | ||||||||
End of Period at Dec. 31, 2019 | 241,976 | 11,229 | 168,658 | 60,198 | 1,891 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock issuance costs | (57) | (57) | ||||||||
Surrendered shares | (314) | (15) | (299) | |||||||
Shares repurchased | (11,112) | (662) | (10,450) | |||||||
Options and warrants exercised | 46 | 3 | 43 | |||||||
Dividends declared | (2,702) | (2,702) | ||||||||
Stock-based compensation | 1,644 | 54 | 1,590 | |||||||
Net income | 13,889 | 13,889 | ||||||||
Other comprehensive income (loss), net | (86) | (86) | ||||||||
End of Period at Dec. 31, 2020 | $ 243,284 | $ 10,609 | $ 159,485 | $ 71,385 | $ 1,805 | |||||
[1] | Represents the impact of adopting ASU No. 2016-01. | |||||||||
[2] | The $0.6 million adjustment to retained earnings for the period ended December 31, 2018 represents a reclassification of the tax effects of the Tax Cuts and Jobs Act (“TCJA”), enacted on December 22, 2017, which required the revaluation of the Company’s deferred tax assets and liabilities as of December 31, 2017 as a result of the lower corporate tax rates to be realized beginning January 1, 2018. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / shares | |
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 0.17 |
Retained Earnings | |
Reclassification of tax effects remaining in AOCI after the revaluation of deferred tax assets and liabilities | $ | $ 600 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income | $ 13,889 | $ 16,839 | $ 13,606 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 4,570 | 3,462 | 2,553 |
Provision for loan losses | 11,160 | 1,908 | 2,570 |
Amortization of purchase accounting adjustments | (1,112) | (1,425) | (2,180) |
Provision for other real estate owned | 30 | 18 | 567 |
Net amortization of securities | 2,825 | 712 | 478 |
Gain on sale of investment securities, net | (2,289) | (262) | (14) |
Loss (gain) on sale of fixed assets, net | 38 | 11 | (98) |
(Gain) loss on sale of other real estate owned, net | (12) | (2) | 24 |
FHLB stock dividend | (134) | (336) | (239) |
Stock-based compensation | 1,644 | 1,430 | 1,071 |
Deferred taxes | (1,388) | 153 | 841 |
Net change in value of bank owned life insurance | (894) | (703) | (628) |
Amortization of subordinated debt issuance costs | 71 | 53 | 46 |
Change in the fair value of equity securities | (268) | (341) | 267 |
Net change in: | |||
Accrued interest receivable | (5,056) | (1,925) | (865) |
Other assets | (953) | (2,015) | 995 |
Accrued taxes and other liabilities | (4,372) | 990 | (2,582) |
Net cash provided by operating activities | 17,749 | 18,567 | 16,412 |
Cash flows from investing activities | |||
Proceeds from sales of investment securities available for sale | 56,466 | 65,834 | 7,021 |
Purchases of securities available for sale | (127,123) | (110,431) | (72,258) |
Proceeds from maturities, prepayments and calls of investment securities available for sale | 64,348 | 39,578 | 30,545 |
Proceeds from maturities, prepayments and calls of investment securities held to maturity | 1,938 | 1,623 | 1,884 |
Proceeds from redemption or sale of equity securities | 9,283 | 2,986 | 1,299 |
Purchases of equity securities | (6,165) | (7,040) | (4,265) |
Net increase in loans | (124,736) | (162,025) | (141,505) |
Proceeds from sales of other real estate owned | 158 | 5,150 | 132 |
Purchases of other real estate owned | 0 | 0 | (257) |
Proceeds from insurance claims | 232 | 0 | 0 |
Proceeds from sales of fixed assets | 0 | 0 | 19 |
Purchases of fixed assets | (7,590) | (7,918) | (4,936) |
Purchase of bank owned life insurance | (6,000) | (5,023) | 0 |
Purchase of other investments | 0 | (95) | (119) |
Proceeds from sales of other investments | 1,762 | 0 | 0 |
Distributions from investments | 93 | 162 | 39 |
Cash paid for acquisition of PlainsCapital branches, net of cash acquired | (10,809) | 0 | 0 |
Net cash provided by (used in) investing activities | (148,143) | (103,063) | (182,401) |
Cash flows from financing activities | |||
Net increase in customer deposits | 143,318 | 153,403 | 136,644 |
Net increase (decrease) in repurchase agreements | 2,658 | (9,329) | (19,936) |
Net (decrease) increase in short-term FHLB advances | (8,000) | (86,400) | 22,900 |
Proceeds from long-term FHLB advances | 0 | 23,500 | 75,000 |
Repayment of long-term FHLB advances | (3,100) | (12,000) | (58,100) |
Cash dividends paid on common stock | (2,686) | (2,167) | (1,468) |
Payments to repurchase common stock | (11,112) | (8,326) | (3,368) |
Proceeds from common stock offering, net of issuance costs | 0 | 28,525 | 0 |
Proceeds from stock options and warrants exercised | 46 | 287 | 1,036 |
Proceeds from subordinated debt, net of issuance costs | 0 | 24,558 | 0 |
Payments of stock issuance costs | (57) | 0 | 0 |
Net cash (used in) provided by financing activities | 121,067 | 112,051 | 152,708 |
Net (decrease) increase in cash and cash equivalents | (9,327) | 27,555 | (13,281) |
Cash and cash equivalents, beginning of period | 44,695 | 17,140 | 30,421 |
Cash and cash equivalents, end of period | 35,368 | 44,695 | 17,140 |
Cash payments for: | |||
Income taxes | 4,336 | 4,190 | 2,555 |
Interest on deposits and borrowings | 20,702 | 24,396 | 16,139 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES | |||
Transfer from loans to other real estate owned | 41 | 133 | 239 |
Transfer from bank premises and equipment to other real estate owned | 665 | 0 | 0 |
Mainland | |||
Cash flows from investing activities | |||
Cash acquired from acquisition | 0 | 38,365 | 0 |
Bank of York | |||
Cash flows from investing activities | |||
Cash acquired from acquisition | $ 0 | $ 35,771 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Investar Holding Corporation (the “Company”) is a financial holding company headquartered in Baton Rouge, Louisiana, that provides, through its wholly-owned subsidiary, Investar Bank, National Association (the “Bank”), full banking services, excluding trust services, tailored primarily to meet the needs of individuals and small to medium-sized businesses throughout its markets in south Louisiana, southeast Texas and west Alabama. Basis of Presentation The consolidated financial statements of Investar Holding Corporation and its wholly-owned subsidiary, the Bank, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and to generally accepted practices within the banking industry. Segments While our chief decision maker monitors the revenue streams of the various banking products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Because the overall banking operations comprise substantially all of the consolidated operations, no separate segment disclosures are presented in the accompanying consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowance for loan losses may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Other estimates that are susceptible to significant change in the near term relate to the allowance for off-balance sheet credit losses, the fair value of stock-based compensation awards, the determination of other-than-temporary impairments of securities, and the fair value of financial instruments and goodwill. The ongoing COVID-19 pandemic has made certain estimates more challenging, including those discussed above, as the pandemic is unprecedented in recent history, continues to evolve, and its future effects are impossible to predict with any certainty. Investment Securities The Company’s investments in securities are accounted for in accordance with applicable guidance contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), which requires the classification of securities into one of the following categories: • Securities to be held to maturity (“HTM”): bonds, notes, and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. • Securities available for sale (“AFS”): available for sale securities consist of bonds, notes, and debentures that are available to meet the Company’s operating needs. These securities are reported at fair value. Unrealized holding gains and losses, net of tax, on available for sale securities are reported as a net amount in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses on the sale of debt and equity securities are determined using the specific-identification method and average price method, respectively. The Company follows FASB guidance related to the recognition and presentation of other-than-temporary impairment. The guidance specifies that if an entity does not have the intent to sell a debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not that the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. Loans The Company’s loan portfolio categories include real estate, commercial and consumer loans. Real estate loans are further categorized into construction and development, one-to-four family residential, multifamily, farmland and commercial real estate loans. The consumer loan category includes loans originated through indirect lending. Indirect lending, which is lending initiated through third-party business partners, is largely comprised of loans made through automotive dealerships. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the unpaid principal balance outstanding, net of purchase premiums or discounts, deferred income (net of costs), any direct principal charge-offs, and an allowance for loan losses. Interest on loans is calculated by using the effective interest rate on daily balances of the principal amount outstanding. Loan origination fees, net of direct loan origination costs, and commitment fees, are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are ordinarily placed on nonaccrual when a loan is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more; however, management may elect to continue the accrual when the estimated net realizable value of collateral is sufficient to cover the principal balance and the accrued interest. Any unpaid interest previously accrued on nonaccrual loans is reversed from income. Interest income, generally, is not recognized on specific impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are applied as a reduction of the loan principal balance. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period of repayment performance by the borrower. The Company considers a loan to be impaired when, based upon current information and events, it believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The Company’s impaired loans include troubled debt restructurings (“TDRs”) and performing and non-performing loans for which full payment of principal or interest is not expected. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. The Company calculates an allowance required for impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of its collateral. If the recorded investment in the impaired loan exceeds the measure of fair value, a valuation allowance is required as a component of the allowance for loan losses. Changes to the valuation allowance are recorded as a component of the provision for loan losses. See Treatment of Loan Modifications Pursuant to the CARES Act and Interagency Statement under Accounting Standards Adopted in 2020 below for further discussion on the accounting treatment for loans. The Company follows the FASB accounting guidance on sales of financial assets, which includes participating interests in loans. For loan participations that are structured in accordance with this guidance, the sold portions are recorded as a reduction of the loan portfolio. Loan participations that do not meet the criteria are accounted for as secured borrowings. See Acquisition Accounting and Acquired Impaired Loans below for accounting treatment of loans acquired through business acquisitions. Allowance for Loan Losses The adequacy of the allowance for loan losses is determined in accordance with GAAP. The allowance for loan losses is estimated through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the loan balance is uncollectable. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount that management believes will be adequate to absorb probable losses inherent in the loan portfolio as of the balance sheet date based on evaluations of the collectability of loans and prior loan loss experience. The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrower’s ability to pay. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Allowances for impaired loans are generally determined based on collateral values or the present value of estimated cash flows. Credits deemed uncollectible are charged to the allowance. Provisions for loan losses and recoveries on loans previously charged off are adjusted to the allowance. Past due status is determined based on contractual terms. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. Based on management’s review and observations made through qualitative review, management may apply qualitative adjustments to determine loss estimates at a group and/or portfolio segment level as deemed appropriate. Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in its portfolio and portfolio segments. The Company utilizes an internally developed model that requires judgment to determine the estimation method that fits the credit risk characteristics of the loans in its portfolio and portfolio segments. Qualitative and environmental factors that may not be directly reflected in quantitative estimates include: asset quality trends, changes in loan concentrations, new products and process changes, changes and pressures from competition, changes in lending policies and underwriting practices, trends in the nature and volume of the loan portfolio, changes in experience and depth of lending staff and management and national and regional economic trends. The Company also considers third party or comparable company loss data. Changes in these factors are considered in determining changes in the allowance for loan losses. The impact of these factors on the Company’s qualitative assessment of the allowance for loan losses can change from period to period based on management’s assessment of the extent to which these factors are already reflected in historic loss rates. The uncertainty inherent in the estimation process is also considered in evaluating the allowance for loan losses. In the ordinary course of business, the Bank enters into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for unfunded lending commitments is included in other liabilities in the consolidated balance sheet. At December 31, 2020 and 2019 the reserve for unfunded loan commitments was $0.2 million and $0.1 million, respectively. Equity Securities The Company is a member of the Federal Home Loan Bank (“FHLB”) system. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, is restricted as to redemption, and is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Equity securities also include investments in our other correspondent banks including Independent Bankers Financial Corporation (“IBFC”) and First National Bankers Bank (“FNBB”) stock. These investments are carried at cost which approximates fair value. The balance of equity securities in our correspondent banks at December 31, 2020 and 2019 was $14.9 million and $17.2 million, respectively. In addition, equity securities include marketable securities in corporate stocks and mutual funds and totaled $1.7 million and $2.1 million at December 31, 2020 and 2019, respectively. Bank Premises and Equipment Bank premises and equipment are stated at cost, less accumulated depreciation, with the exception of land, which is stated at cost. Depreciation expense is computed using the straight-line method and is charged to expense over the estimated useful lives of 39 years for buildings, five three one Other Real Estate Owned Real estate acquired through foreclosure, or other real estate owned on the consolidated balance sheets, is initially recorded at fair value at the time of foreclosure, less estimated selling cost, and any related write down is charged to the allowance for loan losses. Valuations are periodically performed by management and provisions for estimated losses on other real estate owned are charged to expense when fair value is determined to be less than the carrying value. Costs relative to the development and improvement of properties are capitalized to the extent realizable, whereas ordinary upkeep disbursements are charged to expense. The ability of the Company to recover the carrying value of real estate is based upon future sales of the other real estate owned. The ability to affect such sales is subject to market conditions and other factors, many of which are beyond the Company’s control. Operating income and expense of such properties is included in other operating income or expense, respectively, on the accompanying consolidated statements of income. Gain or loss on the disposition of such properties is included in noninterest income on the consolidated statements of income. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill and other intangible assets deemed to have an indefinite useful life are not amortized but instead are subject to review for impairment annually, or more frequently if deemed necessary, in accordance with the provisions of FASB ASC Topic 350, Intangibles – Goodwill and Other . Intangible assets with estimable useful lives are amortized over their respective estimated useful lives and reviewed for impairment in accordance with FASB ASC Topic 360, Property, Plant, and Equipment. If impaired, the asset is written down to its estimated fair value. No impairment charges have been recognized through December 31, 2020. Core deposit intangibles representing the value of the acquired core deposit base are generally recorded in connection with business combinations involving banks and branch locations. The Company’s policy is to amortize core deposit intangibles over the estimated useful life of the deposit base. The remaining useful lives of core deposit intangibles are evaluated periodically to determine whether events and circumstances warrant revision of the remaining period of amortization. The Company’s core deposit intangibles are currently amortized using the sum-of-the-years-digits basis over 10 to 15 years. See Note 8, Goodwill and Other Intangible Assets, for additional information. Bank Owned Life Insurance The Company invests in bank owned life insurance (“BOLI”) policies that provide earnings to help cover the cost of employee benefit plans. The Company is the owner and beneficiary of the life insurance policies it purchased directly on a chosen group of employees. The policies are carried on the Company’s consolidated balance sheet at their cash surrender value and are subject to regulatory capital requirements. The determination of the cash surrender value includes a full evaluation of the contractual terms of each policy and assumes the surrender of policies on an individual-life by individual-life basis. Additionally, the Company periodically reviews the creditworthiness of the insurance companies that have underwritten the policies. Earnings accruing to the Company are derived from the general account investments of the insurance companies. Increases in the net cash surrender value of BOLI policies and insurance proceeds received are not taxable and are recorded in noninterest income in the consolidated statements of income. Repurchase Agreements Securities sold under agreements to repurchase are secured borrowings treated as financing activities and are carried at the amounts at which the securities will be subsequently reacquired as specified in the respective agreements. Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC Topic 718, Compensation - Stock Compensation . Under this accounting guidance, fair value is established as the measurement objective in accounting for share-based payment awards and requires the application of a fair value based measurement method in accounting for compensation costs, which is recognized over the requisite service period. The impact of forfeitures of share-based payment awards on compensation expense is recognized as forfeitures occur. See Note 15, Stock-Based Compensation, for further disclosures regarding stock-based compensation. Off-Balance Sheet Credit-Related Financial Instruments The Company accounts for its guarantees in accordance with the provisions of ASC Topic 460, Guarantees . In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card agreements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. Derivative Financial Instruments ASC Topic 815, Derivatives and Hedging , requires that all derivatives be recognized as assets or liabilities in the balance sheet at fair value. Derivatives executed with the same counterparty are generally subject to master netting arrangements, however, fair value amounts recognized for derivative financial instruments and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. In the course of its business operations, the Company is exposed to certain risks, including interest rate, liquidity and credit risk. The Company manages its risks through the use of derivative financial instruments, primarily through management of exposure due to the receipt or payment of future cash amounts based on interest rates. The Company’s derivative financial instruments manage the differences in the timing, amount and duration of expected cash receipts and payments. Derivatives which are designated and qualify as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. The effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. The ineffective portion of the gain or loss is reported in earnings immediately. In applying hedge accounting for derivatives, the Company establishes a method for assessing the effectiveness of the hedging derivative and a measurement approach for determining the ineffective aspect of the hedge upon the inception of the hedge. These methods are consistent with the Company’s approach to managing risk. Note 13, Derivative Financial Instruments, describes the derivative instruments currently used by the Company and discloses how these derivatives impact the Company’s financial position and results of operations. Income Taxes The provision for income taxes is based on amounts reported in the consolidated statements of income after exclusion of nontaxable income such as interest on state and municipal securities. Also, certain items of income and expenses are recognized in different time periods for financial statement purposes than for income tax purposes. Thus, provisions for deferred taxes are recorded in recognition of such temporary differences. Deferred taxes are determined utilizing a liability method whereby deferred tax assets are recognized for deductible temporary differences 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 bases. 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 adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company has adopted accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The Company recognizes interest and penalties on income taxes as a component of income tax expense. Revenue Recognition The Company recognizes revenue in the consolidated statements of income as it is earned and when collectability is reasonably assured. The primary source of revenue is interest income from interest-earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest-earning assets is based upon formulas from underlying loan agreements, securities contracts, or other similar contracts. Noninterest income is recognized on the accrual basis of accounting as services are provided or as transactions occur. Noninterest income includes fees from deposit accounts, merchant services, ATM and debit card fees, servicing fees, interchange fees, and other miscellaneous services and transactions. Earnings Per Share Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share separately for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities (i.e. unvested time-vested restricted stock), not subject to performance based measures. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options and warrants) were issued during the period, computed using the treasury stock method. Statements of Cash Flows For purposes of the statements of cash flows, cash and cash equivalents include cash and amounts due from banks and federal funds sold due to the short-term nature of these items. Comprehensive Income Comprehensive income includes net income and other comprehensive income or loss, which in the case of the Company includes unrealized gains and losses on securities and changes in the fair value of interest rate swaps, net of related income taxes. Troubled Debt Restructurings The Company periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and minimize the risk of loss. These concessions may include restructuring the terms of a customer loan, thereby adjusting the customer’s payment requirements. In accordance with the FASB’s Accounting Standards Update (“ASU”) 2011-2, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring , in order to be considered a troubled debt restructuring (a “TDR”), the Company must conclude that the restructuring constitutes a concession and the customer is experiencing financial difficulties. The Company defines a concession to a customer as a modification of existing loan terms for economic or legal reasons that it would otherwise not consider. Concessions are typically granted through an agreement with the customer or are imposed by a court of law. Concessions include modifying original loan terms to reduce or defer cash payments required as part of the loan agreement, including but not limited to a reduction of the stated interest rate for the remaining original life of the debt, an extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk characteristics, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest receivable on a debt. In its determination of whether the customer is experiencing financial difficulties, the Company considers numerous indicators, including but not limited to, whether the customer has declared or is in the process of declaring bankruptcy, whether there is substantial doubt about the customer’s ability to continue as a going concern, whether the Company believes the customer’s future cash flows will be insufficient to service the debt in accordance with the contractual terms of the existing agreement for the foreseeable future, and whether without modification the customer cannot obtain sufficient funds from other sources at an effective interest rate equal to the current market rate for similar debt for a non-troubled debtor. If the Company concludes that both a concession has been granted and the concession was granted to a customer experiencing financial difficulties, the Company identifies the loan as a TDR. For purposes of the determination of an allowance for loan losses on these TDRs, the loan is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology. If it is determined that losses are probable on such TDRs, either because of delinquency or other credit quality indicators, the Company establishes specific reserves for these loans. Acquisition Accounting Acquisitions are accounted for under the purchase method of accounting. Purchased assets and assumed liabilities are recorded at their respective acquisition date fair values, and identifiable intangible assets are recorded at fair value. If the consideration given exceeds the fair value of the net assets received, goodwill is recognized. If the fair value of the net assets received exceeds the consideration given, a bargain purchase gain is recognized. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Purchased loans acquired in a business combination are recorded at their estimated fair value as of the acquisition date. The fair value of loans acquired is determined using a discounted cash flow model based on assumptions regarding the amount and timing of principal and interest prepayments, estimated payments, estimated default rates, estimated loss severity in the event of defaults, and current market rates. The fair value adjustment for performing acquired loans is accreted over the life of the loan using the effective interest method. Estimated credit losses are included in the determination of fair value; therefore, an allowance for loan losses is not recorded on the acquisition date. Subsequent to acquisition, acquired performing loans are evaluated using a similar allowance methodology as the legacy portfolio. An allowance for credit losses is only recorded to the extent that the required reserves exceed the unaccreted fair value adjustment. Acquired Impaired Loans The Company accounts for acquired impaired loans under FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). An acquired loan is considered impaired when there is evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will be unable to collect all contractually required payments. For acquired impaired loans, the Company (a) calculates the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (b) estimates the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). Under ASC 310-30, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the acquired impaired loan portfolio, and such amount is subject to change over time based on the performance of such loans. The excess of expected cash flows at acquisition over the initial fair value of acquired impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. As required by ASC 310-30, the Company periodically re-estimates the expected cash flows to be collected over the life of the acquired impaired loans. Improvements in expected cash flows over those originally estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in the amount and changes in the timing of expected cash flows compared to those originally estimated decrease the accretable yield and usually result in a provision for loan losses and the establishment of an allowance for loan losses with respect to the acquired impaired loan. The carrying value of acquired impaired loans is reduced by p |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Mainland Bank On March 1, 2019, the Company completed the acquisition of Mainland Bank (“Mainland”) located in Texas City, Texas. The Company acquired 100% of Mainland’s outstanding common shares for an aggregate merger consideration of 763,849 shares of the Company’s common stock, for a total of approximately $18.6 million. The acquisition of Mainland expanded the Company’s branch footprint into the greater Houston, Texas market. After fair value adjustments, the acquisition added $127.6 million in total assets, $81.3 million in loans, and $107.6 million in deposits. As consideration paid was in excess of the net fair value of acquired assets, the Company recorded $5.2 million of goodwill. Goodwill resulted from a combination of synergies and cost savings, expansion into Texas with the addition of three branch locations, and enhanced products and services. The table below shows the allocation of the consideration paid for Mainland’s common equity to the acquired identifiable assets and liabilities assumed and the goodwill generated from the transaction (dollars in thousands). Purchase price: Stock issued $ 18,637 Fair value of assets acquired: Cash and cash equivalents 38,365 Loans 81,336 Other real estate owned 1,507 Bank premises and equipment 2,550 Core deposit intangible asset 2,439 Other assets 1,414 Total assets acquired 127,611 Fair value of liabilities acquired: Deposits 107,646 Repurchase agreements 4,684 Other liabilities 1,883 Total liabilities assumed 114,213 Fair value of net assets acquired 13,398 Goodwill $ 5,239 Fair value adjustments to assets acquired and liabilities assumed are generally amortized using the effective yield method over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities. The fair value of net assets acquired includes a fair value adjustment to loans as of the acquisition date. The adjustment for the acquired loan portfolio is based on current market interest rates at the time of acquisition, and the Company’s initial evaluation of credit losses identified. The contractually required principal and interest payments of the loans acquired from Mainland total $92.4 million. Prior to the end of the one-year adjustment period following the acquisition of Mainland, certain loans were identified to be purchase credit impaired loans at the time of acquisition. These loans had a balance of $2.8 million at the time of acquisition. The contractually required principal and interest payments of these loans total $3.1 million, of which $1.7 million is not expected to be collected. Bank of York On November 1, 2019, the Company completed the acquisition of Bank of York located in York, Alabama. The Company acquired 100% of Bank of York’s outstanding common shares for an aggregate cash merger consideration of $15.0 million. The acquisition of Bank of York expanded the Company’s branch footprint into the west Alabama market. After fair value adjustments, the acquisition added $101.9 million in total assets, $46.1 million in loans, and $85.0 million in deposits. As consideration paid was in excess of the net fair value of acquired assets, the Company recorded $5.0 million of goodwill. Goodwill resulted from a combination of synergies and cost savings, and expansion into Alabama with the addition of two branch locations. The table below shows the allocation of the consideration paid for Bank of York’s common equity to the acquired identifiable assets and liabilities assumed and the goodwill generated from the transaction (dollars in thousands). Purchase price: Cash paid $ 15,000 Fair value of assets acquired: Cash and cash equivalents 50,776 Investments 451 Loans 46,086 Bank premises and equipment 917 Core deposit intangible asset 931 Bank owned life insurance 2,429 Other assets 344 Total assets acquired 101,934 Fair value of liabilities acquired: Deposits 85,004 Repurchase agreements 5,641 Other liabilities 1,306 Total liabilities assumed 91,951 Fair value of net assets acquired 9,983 Goodwill $ 5,017 The fair value of net assets acquired includes a fair value adjustment to loans as of the acquisition date. The adjustment for the acquired loan portfolio is based on current market interest rates at the time of acquisition, and the Company’s initial evaluation of credit losses identified. The contractually required principal and interest payments of the loans acquired from Bank of York total $51.5 million. Loans acquired from Bank of York that are considered to be purchased credit impaired loans had a balance of $0.3 million at the time of acquisition. The contractually required principal and interest payments of these loans total $0.3 million, of which $0.1 million is not expected to be collected. PlainsCapital On February 21, 2020, the Company completed the acquisition of the Alice and Victoria, Texas branch locations of PlainsCapital Bank (“PlainsCapital”), a wholly-owned subsidiary of Hilltop Holdings Inc., for an aggregate cash consideration of approximately $11.2 million. The acquisition added $48.8 million in total assets, including $45.3 million in loans, and $37.0 million in deposits. As consideration paid was in excess of the net fair value of acquired assets, the Company recorded $0.5 million of goodwill. Goodwill resulted from a combination of synergies and cost savings, and further expansion into south Texas with the addition of two branch locations. The table below shows the allocation of the consideration paid for certain assets, deposits and other liabilities associated with the Alice and Victoria, Texas locations of PlainsCapital and the goodwill generated from the transaction (dollars in thousands). The fair values listed below, primarily related to loans and deferred tax assets and liabilities, are subject to refinement for up to one year after the closing date of the acquisition as additional information becomes available. Purchase price: Cash paid $ 11,162 Fair value of assets acquired: Cash and cash equivalents 353 Loans 45,299 Bank premises and equipment 2,770 Core deposit intangible asset 170 Other assets 163 Total assets acquired 48,755 Fair value of liabilities acquired: Deposits 36,973 Other liabilities 1,084 Total liabilities assumed 38,057 Fair value of net assets acquired 10,698 Goodwill $ 464 The fair value of net assets acquired includes a fair value adjustment to loans as of the acquisition date. The adjustment for the acquired loan portfolio is based on current market interest rates at the time of acquisition, and the Company’s initial evaluation of credit losses identified. The contractually required principal and interest payments of the loans acquired from PlainsCapital total $51.3 million. No loans acquired from PlainsCapital were considered to be purchased credit impaired loans. The change in goodwill and other intangibles at December 31, 2020 compared to December 31, 2019 is primarily attributable to fair value adjustments recorded within the one-year adjustment period following the acquisitions of Mainland and Bank of York, as well as goodwill and core deposit intangibles recorded as a result of the acquisition of branch locations from PlainsCapital. Acquisition Expense Acquisition related costs of $1.1 million and $2.1 million are included in acquisition expenses in the accompanying consolidated statements of income for the years ended December 31, 2020 and 2019, respectively. These costs include system conversion and integrating operations charges and legal and consulting expenses related to the acquisitions of Mainland, Bank of York, and the branches from PlainsCapital, as well as legal and consulting expenses related to the pending acquisition of Cheaha Financial Group, Inc., announced in January 2021. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities classified as AFS are summarized below as of the dates presented (dollars in thousands). December 31, 2020 Amortized Gross Gross Fair Obligations of U.S. government agencies and corporations $ 36,648 $ 201 $ (28) $ 36,821 Obligations of state and political subdivisions 21,650 490 (3) 22,137 Corporate bonds 27,583 348 (223) 27,708 Residential mortgage-backed securities 119,934 2,675 (11) 122,598 Commercial mortgage-backed securities 58,098 1,202 (154) 59,146 Total $ 263,913 $ 4,916 $ (419) $ 268,410 December 31, 2019 Amortized Gross Gross Fair Obligations of U.S. government agencies and corporations $ 33,651 $ 100 $ (100) $ 33,651 Obligations of state and political subdivisions 32,920 541 (12) 33,449 Corporate bonds 19,245 192 (274) 19,163 Residential mortgage-backed securities 100,948 1,083 (85) 101,946 Commercial mortgage-backed securities 71,340 564 (308) 71,596 Total $ 258,104 $ 2,480 $ (779) $ 259,805 Proceeds from sales of investment securities AFS and gross realized gains and losses are summarized below for the periods presented (dollars in thousands). Twelve months ended December 31, 2020 2019 2018 Proceeds from sales $ 56,466 $ 65,834 $ 7,021 Gross gains $ 2,300 $ 608 $ 35 Gross losses $ (11) $ (346) $ (21) The amortized cost and approximate fair value of investment securities classified as HTM are summarized below as of the dates presented (dollars in thousands). December 31, 2020 Amortized Gross Gross Fair Obligations of state and political subdivisions $ 8,225 $ 12 $ — $ 8,237 Residential mortgage-backed securities 4,209 203 — 4,412 Total $ 12,434 $ 215 $ — $ 12,649 December 31, 2019 Amortized Gross Gross Fair Obligations of state and political subdivisions $ 9,487 $ 14 $ — $ 9,501 Residential mortgage-backed securities 4,922 57 — 4,979 Total $ 14,409 $ 71 $ — $ 14,480 Securities are classified in the consolidated balance sheets according to management’s intent. The Company had no securities classified as trading as of December 31, 2020 or December 31, 2019. The number of AFS securities, fair value, and unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized below as of the dates presented (dollars in thousands). There were no HTM securities in a continuous loss position as of December 31, 2020 or December 31, 2019. Less than 12 Months 12 Months or More Total December 31, 2020 Count Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Obligations of U.S. government agencies and corporations 12 $ 9,080 $ (19) $ 4,043 $ (9) $ 13,123 $ (28) Obligations of state and political subdivisions 4 505 (3) 204 — 709 (3) Corporate bonds 22 6,970 (133) 2,559 (90) 9,529 (223) Residential mortgage-backed securities 6 11,070 (11) — — 11,070 (11) Commercial mortgage-backed securities 26 6,921 (57) 7,965 (97) 14,886 (154) Total 70 $ 34,546 $ (223) $ 14,771 $ (196) $ 49,317 $ (419) Less than 12 Months 12 Months or More Total December 31, 2019 Count Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Obligations of U.S. government agencies and corporations 21 $ 19,980 $ (94) $ 955 $ (6) $ 20,935 $ (100) Obligations of state and political subdivisions 10 212 (1) 371 (11) 583 (12) Corporate bonds 21 495 (5) 7,829 (269) 8,324 (274) Residential mortgage-backed securities 32 12,341 (56) 6,190 (29) 18,531 (85) Commercial mortgage-backed securities 57 29,072 (274) 2,516 (34) 31,588 (308) Total 141 $ 62,100 $ (430) $ 17,861 $ (349) $ 79,961 $ (779) Unrealized losses are generally due to changes in interest rates. Beginning in the first quarter of 2020, the COVID-19 pandemic has led to ongoing disruption and volatility in the capital markets, causing fluctuations of fair values across asset classes. The Company has the intent to hold these securities either until maturity or a forecasted recovery, and it is more likely than not that the Company will not have to sell the securities before the recovery of their amortized cost basis. Due to the nature of the investment, current market prices, and the current interest rate environment, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2020 and 2019. The amortized cost and approximate fair value of investment debt securities, by contractual maturity (including mortgage-backed securities), are shown below as of the dates presented (dollars in thousands). Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available For Sale Securities Held to Maturity December 31, 2020 Amortized Fair Amortized Fair Due within one year $ 1,669 $ 1,691 $ 830 $ 832 Due after one year through five years 12,937 13,014 2,745 2,751 Due after five years through ten years 64,159 64,865 4,650 4,654 Due after ten years 185,148 188,840 4,209 4,412 Total debt securities $ 263,913 $ 268,410 $ 12,434 $ 12,649 Securities Available For Sale Securities Held to Maturity December 31, 2019 Amortized Fair Amortized Fair Due within one year $ 2,174 $ 2,175 $ 790 $ 792 Due after one year through five years 13,525 13,675 3,575 3,582 Due after five years through ten years 66,551 66,568 5,122 5,126 Due after ten years 175,854 177,387 4,922 4,980 Total debt securities $ 258,104 $ 259,805 $ 14,409 $ 14,480 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s loan portfolio consists of the following categories of loans as of the dates presented (dollars in thousands). December 31, 2020 2019 Construction and development $ 206,011 $ 197,797 1-4 Family 339,525 321,489 Multifamily 60,724 60,617 Farmland 26,547 27,780 Commercial real estate 812,395 731,060 Total mortgage loans on real estate 1,445,202 1,338,743 Commercial and industrial 394,497 323,786 Consumer 20,619 29,446 Total loans $ 1,860,318 $ 1,691,975 Unamortized premiums and discounts on loans, included in the total loans balances above, were $1.8 million and $2.1 million at December 31, 2020 and 2019, respectively. Unearned income, or deferred fees, on loans was $3.2 million and $0.9 million at December 31, 2020 and 2019, respectively and is also included in the total loans balances in the table above. In the second quarter of 2020, the Bank began participating as a lender in the Small Business Administration’s (“SBA”) and U.S. Department of Treasury’s Paycheck Protection Program (“PPP”) as established by the CARES Act and enhanced by the Paycheck Protection Program and Health Care Enhancement Act and the Paycheck Protection Program Flexibility Act of 2020 (“Flexibility Act”). The PPP was established to provide unsecured low interest rate loans to small businesses that have been impacted by the COVID-19 pandemic. The PPP loans are 100% guaranteed by the SBA. The loans have a fixed interest rate of 1% with deferred payments, and if originated before June 5, 2020, mature two years from origination, or if made on or after June 5, 2020, five years from origination. PPP loans are forgiven by the SBA (which makes forgiveness payments directly to the lender) to the extent the borrower uses the proceeds of the loan for certain purposes (primarily to fund payroll costs) during a certain time period following origination and maintains certain employee and compensation levels. Lenders receive processing fees from the SBA for originating the PPP loans which are based on a percentage of the loan amount. In July 2020, the CARES Act was amended to extend the SBA’s authority to make commitments under the PPP, which had previously expired on June 30, 2020. The PPP resumed taking applications on July 6, 2020, and the new deadline to apply for a PPP loan ended on August 8, 2020. On December 27, 2020, legislation was enacted that renewed the PPP and allocated additional funding for both new first time PPP loans under the original PPP and also authorized second draw PPP loans for certain eligible borrowers that had previously received a PPP loan. The SBA began accepting applications on the next round of the PPP in January 2021, and the application period will last until March 31, 2021, subject to the availability of funds. At December 31, 2020, our loan portfolio included PPP loans with a balance of $94.5 million, all of which are included in commercial and industrial loans. Nonaccrual and Past Due Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. In determining whether or not a borrower may be unable to meet payment obligations for each class of loans, we consider the borrower’s debt service capacity through the analysis of current financial information, if available, and/or current information with regard to our collateral position. Regulatory provisions would typically require the placement of a loan on nonaccrual status if (i) principal or interest has been in default for a period of 90 days or more unless the loan is both well secured and in the process of collection or (ii) full payment of principal and interest is not expected. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income on nonaccrual loans is recognized only to the extent that cash payments are received in excess of principal due. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future payment of principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period (at least six months) of repayment performance by the borrower. Certain borrowers are currently experiencing difficulties meeting their contractual payment obligations because of the adverse economic effects attributable to the COVID-19 pandemic. As a result, loan customers may apply for payment deferrals, or portions thereof, for up to 90 days. In the absence of other contributing factors, these short-term modifications made on a good faith basis are not considered TDRs, nor are loans granted payment deferrals related to COVID-19 reported as past due or placed on non-accrual status if the loans were not past due or on non-accrual status prior to the deferral. See Note 1, Summary of Significant Accounting Policies for further discussion. The tables below provide an analysis of the aging of loans as of the dates presented (dollars in thousands). December 31, 2020 Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Past Acquired Impaired Loans Total Loans Construction and development $ 205,002 $ 488 $ — $ — $ 521 $ 1,009 $ — $ 206,011 1-4 Family 335,710 1,085 734 — 1,615 3,434 381 339,525 Multifamily 60,724 — — — — — — 60,724 Farmland 24,333 297 — 216 — 513 1,701 26,547 Commercial real estate 807,243 1,472 118 — 1,771 3,361 1,791 812,395 Total mortgage loans on real estate 1,433,012 3,342 852 216 3,907 8,317 3,873 1,445,202 Commercial and industrial 386,607 359 273 105 6,907 7,644 246 394,497 Consumer 20,135 79 21 — 346 446 38 20,619 Total loans $ 1,839,754 $ 3,780 $ 1,146 $ 321 $ 11,160 $ 16,407 $ 4,157 $ 1,860,318 December 31, 2019 Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Past Acquired Impaired Loans Total Loans Construction and development $ 197,318 $ 133 $ 32 $ — $ 314 $ 479 $ — $ 197,797 1-4 Family 317,572 998 413 138 1,923 3,472 445 321,489 Multifamily 60,617 — — — — — — 60,617 Farmland 25,516 — — — — — 2,264 27,780 Commercial real estate 727,423 1,193 14 657 141 2,005 1,632 731,060 Total mortgage loans on real estate 1,328,446 2,324 459 795 2,378 5,956 4,341 1,338,743 Commercial and industrial 323,446 171 19 — 137 327 13 323,786 Consumer 28,443 339 95 — 531 965 38 29,446 Total loans $ 1,680,335 $ 2,834 $ 573 $ 795 $ 3,046 $ 7,248 $ 4,392 $ 1,691,975 Portfolio Segment Risk Factors The following describes the risk characteristics relevant to each of the Company’s loan portfolio segments. Construction and Development. Construction and development loans are generally made for the purpose of acquisition and development of land to be improved through the construction of commercial and residential buildings. The successful repayment of these types of loans is generally dependent upon a commitment for permanent financing from the Company, or from the sale of the constructed property. These loans carry more risk than commercial or residential real estate loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. One such risk is that loan funds are advanced upon the security of the property under construction, which is of uncertain value prior to the completion of construction. Thus, it is more difficult to evaluate accurately the total loan funds required to complete a project and to calculate related loan-to-value ratios. The Company attempts to minimize the risks associated with construction lending by limiting loan-to-value ratios as described above. In addition, as to speculative development loans, the Company generally makes such loans only to borrowers that have a positive pre-existing relationship with us. The Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations in any one business or industry. 1-4 Family. The 1-4 Family portfolio mainly consists of residential mortgage loans to consumers to finance a primary residence. The majority of these loans are secured by properties located in the Company’s market areas and carry risks associated with the creditworthiness of the borrower and changes in the value of the collateral and loan-to-value-ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, employing experienced underwriting personnel, requiring standards for appraisers, and not making subprime loans. Multifamily. Multifamily loans are normally made to real estate investors to support permanent financing for multifamily residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance and collection of rents due from tenants. This type of lending carries a lower level of risk, as compared to other commercial lending. In addition, underwriting requirements for multifamily properties are stricter than for other non-owner-occupied property types. The Company manages this risk by avoiding concentrations with any particular customer. Farmland. Farmland loans are often for land improvements related to agricultural endeavors and may include construction of new specialized facilities. These loans are usually repaid through the conversion to permanent financing, or if scheduled loan amortization begins, for the long-term benefit of the borrower’s ongoing operations. Underwriting generally involves intensive analysis of the financial strength of the borrower and guarantor, liquidation value of the subject collateral, the associated unguaranteed exposure, and any available secondary sources of repayment, with the greatest emphasis given to a borrower’s capacity to meet cash flow coverage requirements as set forth by Bank policies. Commercial Real Estate. Commercial real estate loans are extensions of credit secured by owner occupied and non-owner occupied collateral. Underwriting generally involves intensive analysis of the financial strength of the borrower and guarantor, liquidation value of the subject collateral, the associated unguaranteed exposure, and any available secondary sources of repayment, with the greatest emphasis given to a borrower’s capacity to meet cash flow coverage requirements as set forth by Bank policies. Repayment is commonly derived from the successful ongoing operations of the property. General market conditions and economic activity may impact the performance of these types of loans, including fluctuations in the value of real estate, new job creation trends, and tenant vacancy rates. The Company attempts to limit risk by analyzing a borrower’s cash flow and collateral value on an ongoing basis. The Company also typically requires personal guarantees from the principal owners of the property, supported by a review of their personal financial statements, as an additional means of mitigating our risk. The Company manages risk by avoiding concentrations in any one business or industry. Commercial and Industrial. Commercial and industrial loans receive similar underwriting treatment as commercial real estate loans in that the repayment source is analyzed to determine its ability to meet cash flow coverage requirements as set forth by Bank policies. Repayment of these loans generally comes from the generation of cash flow as the result of the borrower’s business operations. Commercial lending generally involves different risks from those associated with commercial real estate lending or construction lending. Although commercial loans may be collateralized by equipment or other business assets (including real estate, if available as collateral), the repayment of these types of loans depends primarily on the creditworthiness and projected cash flow of the borrower (and any guarantors). Thus, the general business conditions of the local economy and the borrower’s ability to sell its products and services, thereby generating sufficient operating revenue to repay us under the agreed upon terms and conditions, are the chief considerations when assessing the risk of a commercial loan. The liquidation of collateral, if any, is considered a secondary source of repayment because equipment and other business assets may, among other things, be obsolete or of limited resale value. The Company actively monitors certain financial measures of the borrower, including advance rate, cash flow, collateral value and other appropriate credit factors. Consumer. Consumer loans are offered by the Company in order to provide a full range of retail financial services to its customers and include auto loans, credit cards, and other consumer installment loans. Typically, the Company evaluates the borrower’s repayment ability through a review of credit scores and an evaluation of debt to income ratios. Repayment of consumer loans depends upon key consumer economic measures and upon the borrower’s financial stability, and is more likely to be adversely affected by divorce, job loss, illness and personal hardships than repayment of other loans. A shortfall in the value of any collateral also may pose a risk of loss to the Company for these types of loans. Concentrations of Credit Substantially all of the Company’s loans and commitments have been granted to customers in the Company’s market areas in south Louisiana, southeast Texas and west Alabama. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Credit Quality Indicators Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The following definitions are utilized for risk ratings, which are consistent with the definitions used in supervisory guidance. Pass – Loans not meeting the criteria below are considered pass. These loans have high credit characteristics and financial strength. The borrowers at least generate profits and cash flow that are in line with peer and industry standards and have debt service coverage ratios above loan covenants and our policy guidelines. For some of these loans, a guaranty from a financially capable party mitigates characteristics of the borrower that might otherwise result in a lower grade. Special Mention – Loans classified as special mention possess some credit deficiencies that need to be corrected to avoid a greater risk of default in the future. For example, financial ratios relating to the borrower may have deteriorated. Often, a special mention categorization is temporary while certain factors are analyzed or matters addressed before the loan is re-categorized as either pass or substandard. Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the borrower or the liquidation value of any collateral. If deficiencies are not addressed, it is likely that this category of loan will result in the Bank incurring a loss. Where a borrower has been unable to adjust to industry or general economic conditions, the borrower’s loan is often categorized as substandard. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss – Loans classified as loss are considered uncollectible and of such little value that their continuance as recorded assets is not warranted. This classification does not mean that the assets have absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off these assets. The tables below present a summary of the Company’s loan portfolio by category and credit quality indicator as of the dates presented (dollars in thousands). December 31, 2020 Pass Special Substandard Doubtful Total Construction and development $ 198,139 $ 7,352 $ 520 $ — $ 206,011 1-4 Family 337,829 — 1,696 — 339,525 Multifamily 60,724 — — — 60,724 Farmland 24,846 — 1,701 — 26,547 Commercial real estate 801,244 4,729 6,422 — 812,395 Total mortgage loans on real estate 1,422,782 12,081 10,339 — 1,445,202 Commercial and industrial 379,451 4,794 9,343 909 394,497 Consumer 20,235 — 384 — 20,619 Total loans $ 1,822,468 $ 16,875 $ 20,066 $ 909 $ 1,860,318 December 31, 2019 Pass Special Substandard Doubtful Total Construction and development $ 196,873 $ 610 $ 314 $ — $ 197,797 1-4 Family 318,549 714 2,198 28 321,489 Multifamily 60,617 — — — 60,617 Farmland 25,516 — 2,264 — 27,780 Commercial real estate 729,921 — 1,139 — 731,060 Total mortgage loans on real estate 1,331,476 1,324 5,915 28 1,338,743 Commercial and industrial 318,519 2,910 2,264 93 323,786 Consumer 28,775 128 543 — 29,446 Total loans $ 1,678,770 $ 4,362 $ 8,722 $ 121 $ 1,691,975 The Company had no loans that were classified as loss at December 31, 2020 or 2019. Loan Participations and Sold Loans Loan participations and whole loans sold to and serviced for others are not included in the accompanying consolidated balance sheets. The balances of the participations and whole loans sold were $53.5 million and $82.8 million as of December 31, 2020 and 2019, respectively. The unpaid principal balances of these loans were approximately $154.0 million and $174.7 million at December 31, 2020 and 2019, respectively. Loans to Related Parties In the ordinary course of business, the Company makes loans to related parties including its executive officers, principal shareholders, directors and their immediate family members, as well as to companies in which these individuals are principal owners. Loans outstanding to such related party borrowers amounted to approximately $96.4 million and $98.1 million as of December 31, 2020 and December 31, 2019, respectively. The table below shows the aggregate principal balance of loans to such related parties for the years ended December 31, 2020 and 2019 (dollars in thousands). December 31, 2020 2019 Balance, beginning of period $ 98,093 $ 93,021 New loans/changes in relationship 12,443 20,903 Repayments/changes in relationship (14,146) (15,831) Balance, end of period $ 96,390 $ 98,093 Loans Acquired with Deteriorated Credit Quality The Company accounts for certain loans acquired as acquired impaired loans under ASC 310-30 due to evidence of credit deterioration at acquisition and the probability that the Company will be unable to collect all contractually required payments. There were no changes in the accretable yield on acquired impaired loans for the years ended December 31, 2020 and 2019. Allowance for Loan Losses The table below shows a summary of the activity in the allowance for loan losses for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands). December 31, 2020 2019 2018 Balance, beginning of period $ 10,700 $ 9,454 $ 7,891 Provision for loan losses 11,160 1,908 2,570 Loans charged-off (1,754) (800) (1,185) Recoveries 257 138 178 Balance, end of period $ 20,363 $ 10,700 $ 9,454 The following tables outline the activity in the allowance for loan losses by collateral type for the years ended December 31, 2020, 2019 and 2018, and show both the allowance and portfolio balances for loans individually and collectively evaluated for impairment as of December 31, 2020, 2019 and 2018 (dollars in thousands). December 31, 2020 Construction & Farmland 1-4 Family Multifamily Commercial Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 1,201 $ 101 $ 1,490 $ 387 $ 4,424 $ 2,609 $ 488 $ 10,700 Charge-offs — — (173) — (51) (1,195) (335) (1,754) Recoveries 47 — 74 — 8 50 78 257 Provision 1,127 334 1,979 202 4,115 3,094 309 11,160 Ending balance $ 2,375 $ 435 $ 3,370 $ 589 $ 8,496 $ 4,558 $ 540 $ 20,363 Ending allowance balance for loans individually evaluated for impairment — — — — — 80 130 210 Ending allowance balance for loans acquired with deteriorated credit quality — 210 — — — — — 210 Ending allowance balance for loans collectively evaluated for impairment 2,375 225 3,370 589 8,496 4,478 410 19,943 Loans receivable: Balance of loans individually evaluated for impairment 782 — 2,280 — 6,666 9,102 347 19,177 Balance of loans acquired with deteriorated credit quality — 1,701 381 — 1,791 246 38 4,157 Balance of loans collectively evaluated for impairment 205,229 24,846 336,864 60,724 803,938 385,149 20,234 1,836,984 Total period-end balance $ 206,011 $ 26,547 $ 339,525 $ 60,724 $ 812,395 $ 394,497 $ 20,619 $ 1,860,318 December 31, 2019 Construction & Farmland 1-4 Family Multifamily Commercial Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 1,038 $ 81 $ 1,465 $ 331 $ 4,182 $ 1,641 $ 716 $ 9,454 Charge-offs (51) — (62) — (24) (252) (411) (800) Recoveries 27 — 27 — 1 26 57 138 Provision 187 20 60 56 265 1,194 126 1,908 Ending balance $ 1,201 $ 101 $ 1,490 $ 387 $ 4,424 $ 2,609 $ 488 $ 10,700 Ending allowance balance for loans individually evaluated for impairment — — — — — — 141 141 Ending allowance balance for loans acquired with deteriorated credit quality — — — — — — — — Ending allowance balance for loans collectively evaluated for impairment 1,201 101 1,490 387 4,424 2,609 347 10,559 Loans receivable: Balance of loans individually evaluated for impairment 247 — 1,662 — 47 93 498 2,547 Balance of loans acquired with deteriorated credit quality — 2,264 445 — 1,632 13 38 4,392 Balance of loans collectively evaluated for impairment 197,550 25,516 319,382 60,617 729,381 323,680 28,910 1,685,036 Total period-end balance $ 197,797 $ 27,780 $ 321,489 $ 60,617 $ 731,060 $ 323,786 $ 29,446 $ 1,691,975 December 31, 2018 Construction & Farmland 1-4 Family Multifamily Commercial Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 945 $ 60 $ 1,287 $ 332 $ 3,599 $ 693 $ 975 $ 7,891 Charge-offs (24) — (167) — — (481) (513) (1,185) Recoveries 12 — 29 — — 55 82 178 Provision 105 21 316 (1) 583 1,374 172 2,570 Ending balance $ 1,038 $ 81 $ 1,465 $ 331 $ 4,182 $ 1,641 $ 716 $ 9,454 Ending allowance balance for loans individually evaluated for impairment — — — — — — 236 236 Ending allowance balance for loans acquired with deteriorated credit quality — — — — — — — — Ending allowance balance for loans collectively evaluated for impairment 1,038 81 1,465 331 4,182 1,641 480 9,218 Loans receivable: Balance of loans individually evaluated for impairment 339 — 1,177 — 761 76 916 3,269 Balance of loans acquired with deteriorated credit quality 13 2,264 490 — 2,011 1,195 44 6,017 Balance of loans collectively evaluated for impairment 157,594 19,092 285,470 50,501 624,232 209,653 44,997 1,391,539 Total period-end balance $ 157,946 $ 21,356 $ 287,137 $ 50,501 $ 627,004 $ 210,924 $ 45,957 $ 1,400,825 Impaired Loans The Company considers a loan to be impaired when, based on current information and events, the Company determines that it will not be able to collect all amounts due according to the loan agreement, including scheduled interest payments. Determination of impairment is treated the same across all classes of loans. When the Company identifies a loan as impaired, it measures the impairment based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole (remaining) source of repayment for the loans is the operation or liquidation of the collateral. In these cases when foreclosure is probable, the Company uses the current fair value of the collateral, less selling costs, instead of discounted cash flows. If the Company determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs, and unamortized premium or discount), the Company recognizes impairment through an allowance estimate or a charge-off to the allowance. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual, contractual interest is credited to interest income when received, under the cash basis method. The following tables contain information on the Company’s impaired loans, which include TDRs, discussed in more detail below, and nonaccrual loans individually evaluated for impairment for purposes of determining the allowance for loan losses. The average balances are calculated based on the month-end balances of the loans during the period reported (dollars in thousands). As of and for the year ended December 31, 2020 Recorded Unpaid Related Average Interest With no related allowance recorded: Construction and development $ 782 $ 800 $ — $ 887 $ 13 1-4 Family 2,280 2,353 — 2,172 26 Commercial real estate 6,666 6,721 — 3,456 126 Total mortgage loans on real estate 9,728 9,874 — 6,515 165 Commercial and industrial 8,841 9,953 — 4,614 31 Consumer 126 143 — 227 1 Total 18,695 19,970 — 11,356 197 With related allowance recorded: Commercial and industrial 261 260 80 22 — Consumer 221 265 130 256 1 Total 482 525 210 278 1 Total loans: Construction and development 782 800 — 887 13 1-4 Family 2,280 2,353 — 2,172 26 Commercial real estate 6,666 6,721 — 3,456 126 Total mortgage loans on real estate 9,728 9,874 — 6,515 165 Commercial and industrial 9,102 10,213 80 4,636 31 Consumer 347 408 130 483 2 Total $ 19,177 $ 20,495 $ 210 $ 11,634 $ 198 As of and for the year ended December 31, 2019 Recorded Unpaid Related Average Interest With no related allowance recorded: Construction and development $ 247 $ 269 $ — $ 328 $ 14 1-4 Family 1,662 1,745 — 1,507 32 Multifamily — — — 36 — Commercial real estate 47 50 — 700 7 Total mortgage loans on real estate 1,956 2,064 — 2,571 53 Commercial and industrial 93 96 — 33 — Consumer 188 205 — 328 — Total 2,237 2,365 — 2,932 53 With related allowance recorded: Consumer 310 347 141 324 — Total 310 347 141 324 — Total loans: Construction and development 247 269 — 328 14 1-4 Family 1,662 1,745 — 1,507 32 Multifamily — — — 36 — Commercial real estate 47 50 — 700 7 Total mortgage loans on real estate 1,956 2,064 — 2,571 53 Commercial and industrial 93 96 — 33 — Consumer 498 552 141 652 — Total $ 2,547 $ 2,712 $ 141 $ 3,256 $ 53 As of and for the year ended December 31, 2018 Recorded Unpaid Related Average Interest With no related allowance recorded: Construction and development $ 339 $ 359 $ — $ 237 $ 13 1-4 Family 1,177 1,180 — 1,455 39 Commercial real estate 761 777 — 878 20 Total mortgage loans on real estate 2,277 2,316 — 2,570 72 Commercial and industrial 76 77 — 278 — Consumer 215 237 — 410 — Total 2,568 2,630 — 3,258 72 With related allowance recorded: Consumer 701 738 236 588 — Total 701 738 236 588 — Total loans: Construction and development 339 359 — 237 13 1-4 Family 1,177 1,180 — 1,455 39 Commercial real estate 761 777 — 878 20 Total mortgage loans on real estate 2,277 2,316 — 2,570 72 Commercial and industrial 76 77 — 278 — Consumer 916 975 236 998 — Total $ 3,269 $ 3,368 $ 236 $ 3,846 $ 72 Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to the borrower that the Company would not otherwise consider, the related loan is classified as a TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before such loans reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases in which the Company grants the borrower new terms that provide for a reduction of either interest or principal, or otherwise include a concession, the Company identifies the loan as a TDR and measures any impairment on the restructuring as previously noted for impaired loans. Loans classified as TDRs, consisting of 34 credits, totaled approximately $14.7 million at December 31, 2020, compared to 18 credits totaling $1.5 million at December 31, 2019. Twelve of the restructured loans were considered TDRs due to modification of terms through adjustments to maturity, eleven restructured loans were considered TDRs due to principal payment forbearance paying interest only for a specified period of time, seven of the restructured loans were considered TDRs due to a reduction in the interest rate to a rate lower than the current market rate, three of the restructured loans were considered TDRs due to principal and interest payment forbearance, and one restructured loan was considered a TDR due to a reduction in principal payments on a modified payment schedule. At December 31, 2020, none of the TDRs were in default of their modified terms and included in nonaccrual loans. At December 31, 2019, two of the TDRs were in default of their modified terms and were included in nonaccrual loans. The Company individually evaluates each TDR for allowance purposes, primarily based on collateral value, and excludes these loans from the loan population that is collectively evaluated for impairment. At December 31, 2020 and 2019, there were no available balances on loans classified as TDRs that the Company was committed to lend. The table below presents the TDR pre- and post-modification outstanding recorded investments by loan categories for loans modified during the years ended December 31, 2020 and 2019 (dollars in thousands). December 31, 2020 December 31, 2019 Troubled debt restructurings Number of Pre- Post- Number of Pre- Post- Construction and development 1 $ 64 $ 64 — $ — $ — Commercial Real Estate 8 5,833 5,833 — — — Commercial and industrial 9 7,729 7,729 — — — $ 13,626 $ 13,626 $ — $ — There were no loans modified under troubled debt restructurings during the previous twelve month period that subsequently defaulted during the year ended December 31, 2020. The following is a summary of accruing and nonaccrual TDRs and the related loan losses by portfolio type as of the dates presented (dollars in thousands). TDRs Accruing Nonaccrual Total Related December 31, 2020 Construction and development $ 262 $ — $ 262 $ — 1-4 Family 665 161 826 — Commercial real estate 4,895 938 5,833 — Commercial and industrial 2,195 5,534 7,729 — Total $ 8,017 $ 6,633 $ 14,650 $ — December 31, 2019 Construction and development $ 220 $ 287 $ 507 $ — 1-4 Family 800 176 976 — Total $ 1,020 $ 463 $ 1,483 $ — The table below includes the average recorded investment and interest income recognized for TDRs for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands). TDRs Average Recorded Investment Interest Income Recognized December 31, 2020 Construction and development $ 438 $ 14 1-4 Family 936 35 Commercial real estate 2,778 126 Commercial and industrial 1,075 53 Total $ 5,227 $ 228 December 31, 2019 Construction and development $ 515 $ 14 1-4 Family 1,014 51 Commercial real estate 264 7 Commercial and industrial 2 — Total $ 1,795 $ 72 December 31, 2018 Construction and development $ 308 $ 13 1-4 Family 948 45 Commercial real estate 553 20 Commercial and industrial 8 — Consumer 2 — Total $ 1,819 $ 78 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate [Abstract] | |
OTHER REAL ESTATE OWNED | OTHER REAL ESTATE OWNED The table below shows the activity in other real estate owned for the years ended December 31, 2020 and 2019 (dollars in thousands). December 31, 2020 2019 Balance, beginning of period $ 133 $ 3,611 Additions 41 181 Transfers from bank premises and equipment 665 — Acquired other real estate owned — 1,507 Sales of other real estate owned (146) (5,148) Write-downs (30) (18) Balance, end of period $ 663 $ 133 For the years ended December 31, 2020 and 2019, additions to other real estate owned of $41,000 and $133,000, respectively, were related to acquired loans. After the closure of a branch location in 2020, the land and building were transferred from bank premises and equipment to other real estate owned as the Company does not intend to use the property for operations. At December 31, 2020, approximately $1.7 million of loans secured by real estate were in the process of foreclosure. |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
BANK PREMISES AND EQUIPMENT | BANK PREMISES AND EQUIPMENT Bank premises and equipment consisted of the following as of the dates indicated (dollars in thousands). December 31, 2020 2019 Land $ 13,530 $ 13,851 Buildings and improvements 37,947 31,926 Furniture and equipment 13,196 10,915 Software 1,990 1,373 Construction-in-progress 1,619 1,974 Right-of-use asset 3,851 3,309 Less: Accumulated depreciation and amortization (15,830) (12,432) Bank premises and equipment, net $ 56,303 $ 50,916 Depreciation and amortization related to bank premises and equipment charged to noninterest expense was approximately $3.6 million, $2.6 million and $2.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES The Company’s primary leasing activities relate to certain real estate leases entered into in support of the Company’s branch operations. The Company assumed lease agreements as part of its expansion into Texas. Two of the three branches acquired from Mainland in 2019 and the two branches acquired from PlainsCapital in 2020 are leased properties. In addition, the Company has lease agreements for a de novo branch in the Lafayette, Louisiana market, which opened in 2019, and a branch location opened in the New Orleans, Louisiana market in 2020. The Company’s branch locations operated under lease agreements have all been designated as operating leases. The Company does not lease equipment under operating leases, nor does it have leases designated as finance leases. The Company determines if an arrangement is a lease at inception. Operating leases, with the exception of short-term leases, are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in Bank premises and equipment, net and Accrued taxes and other liabilities, respectively, in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease. When it is reasonably certain that the Company will exercise an option to extend a lease, the extension is included in the lease term when calculating the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately, as the non-lease component amounts are readily determinable. Quantitative information regarding the Company’s operating leases is presented below as of and for the years ended December 31, 2020 and 2019 (dollars in thousands). December 31, 2020 2019 Total operating lease cost $ 599 $ 341 Weighted-average remaining lease term (in years) 8.6 10.4 Weighted-average discount rate 2.8 % 3.1 % As of December 31, 2020, the Company’s lease ROU assets and related lease liabilities were both $3.9 million and have remaining terms ranging from 3 to 11 years, including extension options if the Company is reasonably certain they will be exercised. Future minimum lease payments due under non-cancelable operating leases at December 31, 2020 are presented below (dollars in thousands). 2021 $ 593 2022 598 2023 595 2024 515 2025 476 Thereafter 1,691 Total $ 4,468 At December 31, 2020, the Company had not entered into any material leases that have not yet commenced. On May 29, 2020, the Bank purchased the first floor of its corporate headquarters building, which is currently occupied by multiple tenants. The Bank assumed the existing leases, all of which are operating leases. The Bank, as lessor, recognized rental income of $0.2 million for the year ended December 31, 2020. For the year ended December 31, 2019, the Bank recognized $8,000 in rental income. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The Company’s intangible assets consist of goodwill, core deposit intangible assets arising from acquisitions, and a trademark intangible. At December 31, 2020 and 2019, goodwill and other intangible assets totaled $32.2 million and $31.0 million, respectively, and included no accumulated impairment losses. Additions and adjustments to goodwill were recorded during the years ended December 31, 2020 and 2019 as a result of the acquisitions discussed in Note 2, Business Combinations. The carrying amount of goodwill at December 31, 2020 and 2019 was $28.1 million and $26.1 million, respectively. The trademark intangible had a carrying value of $0.1 million at December 31, 2020 and 2019. In accordance with ASC 350, Intangibles-Goodwill and Other, the Company reviews the carrying value of indefinite-lived intangible assets at least annually, or more frequently if certain impairment indicators exist. The Company performed its annual impairment testing on October 31, 2020 and determined that there was no impairment to its goodwill or trademark intangible asset. Core deposit intangibles have finite lives and are being amortized over their estimated useful lives, which range from 10 to 15 years. The table below shows a summary of the core deposit intangible assets as of the dates presented (dollars in thousands). December 31, Core deposit intangibles 2020 2019 Gross carrying amount $ 6,637 $ 6,467 Accumulated amortization (2,649) (1,664) Net carrying amount $ 3,988 $ 4,803 Amortization expense for the core deposit intangible assets recorded in depreciation and amortization totaled approximately $1.0 million, $0.8 million, and $0.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The future amortization schedule for the Company’s core deposit intangible assets is displayed in the table below. The weighted average amortization period remaining for core deposit intangibles is 7.8 years. (dollars in thousands) 2021 $ 882 2022 773 2023 663 2024 554 2025 444 Thereafter 672 $ 3,988 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
DEPOSITS | DEPOSITS Deposits consisted of the following as of the dates presented (dollars in thousands). December 31, 2020 2019 Noninterest-bearing demand deposits $ 448,230 $ 351,905 Interest-bearing demand deposits 496,745 335,478 Brokered deposits 80,017 — Money market deposit accounts 186,307 198,999 Savings accounts 141,134 115,324 Time deposits 535,391 706,000 Total deposits $ 1,887,824 $ 1,707,706 The table below summarizes outstanding time deposits as of the dates indicated (dollars in thousands). December 31, 2020 2019 $0 to $99,999 $ 161,957 $ 225,951 $100,000 to $249,999 274,470 345,040 $250,000 and above 98,964 135,009 $ 535,391 $ 706,000 The contractual maturities of time deposits of $100,000 or more outstanding are summarized in the table below as of the dates presented (dollars in thousands). December 31, 2020 2019 Time remaining until maturity: Three months or less $ 80,605 $ 92,157 Over three through six months 75,974 76,179 Over six through twelve months 111,879 200,654 Over one year through three years 94,178 95,495 Over three years 10,798 15,564 $ 373,434 $ 480,049 The approximate scheduled maturities of time deposits for each of the next five years are shown below (dollars in thousands). 2021 $ 382,713 2022 103,488 2023 33,247 2024 10,785 2025 5,158 $ 535,391 Public fund deposits as of December 31, 2020 and 2019 totaled approximately $86.6 million and $103.4 million, respectively. The funds were secured by securities with a fair value of approximately $72.7 million and $89.4 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, total deposits outstanding to executive officers, principal shareholders, directors and to companies in which they are principal owners amounted to approximately $38.8 million and $76.3 million, respectively. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENT TO REPURCHASE | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE We utilize securities sold under agreements to repurchase (“repurchase agreements”) to facilitate the needs of our customers and to facilitate secured short-term funding needs. Repurchase agreements are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. Repurchase agreements mature on a daily basis. The total balance of repurchase agreements was $5.7 million and $3.0 million at December 31, 2020 and December 31, 2019, respectively. These funds were secured by investment securities with fair values of approximately $6.3 million and $2.9 million at December 31, 2020 and December 31, 2019, respectively. The interest rate paid for repurchase agreements is tiered, based on balance, and is indexed to the Federal Funds Rate. The weighted average interest rate on repurchase agreements was 0.20% and 0.75% at December 31, 2020 and December 31, 2019, respectively. The weighted-average rate paid for repurchase agreements during the years ended December 31, 2020, 2019 and 2018 was 0.30%, 1.32% and 0.99%, respectively. |
SUBORDINATED DEBT SECURITIES
SUBORDINATED DEBT SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
SUBORDINATED DEBT SECURITIES | SUBORDINATED DEBT SECURITIES On November 12, 2019, the Company issued and sold $25.0 million in aggregate principal amount of its 5.125% Fixed-to-Floating Rate Subordinated Notes (the “2029 Notes”) due December 30, 2029. Beginning on December 30, 2024, the Company may redeem the 2029 Notes, in whole or in part, at their principal amount plus any accrued and unpaid interest. The 2029 Notes bear an interest rate of 5.125% per annum until December 30, 2024, on which date the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR as calculated on each applicable date of determination, or an alternative rate determined in accordance with the terms of the 2029 Notes if the three-month LIBOR cannot be determined, plus 349.0 basis points. On March 24, 2017, the Company issued and sold $18.6 million in aggregate principal amount of its 6.00% Fixed-to-Floating Rate Subordinated Notes (the “2027 Notes”) due March 30, 2027. Beginning on March 30, 2022, the Company may redeem the 2027 Notes, in whole or in part, at their principal amount plus any accrued and unpaid interest. The 2027 Notes bear an interest rate of 6.00% per annum until March 30, 2022, on which date the interest rate will reset quarterly to an annual interest rate equal to the then-current LIBOR plus 394.5 basis points. The carrying value of subordinated debt was $42.9 million and $42.8 million at December 31, 2020 and 2019, respectively. The subordinated debt securities were recorded net of issuance costs of $0.7 million and $0.8 million at December 31, 2020 and 2019, respectively, which are being amortized using the straight-line method over the lives of the respective securities. Federal Home Loan Bank Advances FHLB advances and weighted average interest rates at the end of the period by contractual maturity are summarized as of the dates presented (dollars in thousands). Amount Weighted Average Rate December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Fixed rate advances maturing: 2020 $ — $ 53,100 — % 1.74 % 2021 42,000 — 0.11 — 2024 23,500 23,500 1.81 1.81 2028 25,000 25,000 1.77 1.77 2033 30,000 30,000 1.88 1.88 $ 120,500 $ 131,600 1.23 % 1.79 % As of December 31, 2020, these advances are collateralized by approximately $775.7 million of the Company’s loan portfolio and $9.0 million of the Company’s investment securities in accordance with the Advance Security and Collateral Agreement with the FHLB. As of December 31, 2020, the Company had an additional $654.9 million available under its line of credit with the FHLB. At December 31, 2020 and 2019, the FHLB advances contractually maturing in 2028 and 2033 are fixed rate, nonamortizing puttable advances. Under the terms of these advances, the Bank sells the FHLB options to terminate the fixed rate advances at specified points in time prior to the stated maturity dates. The FHLB may terminate the advances on quarterly option exercise dates until maturity. Lines of Credit In addition, the Company has outstanding unsecured lines of credit with its correspondent banks available to assist in the management of short-term liquidity. Any balances drawn on these lines of credit mature daily. At December 31, 2020 and 2019, the available balance on the unsecured lines of credit totaled approximately $60.0 million, with no outstanding balance reflected on the consolidated balance sheets. Junior Subordinated Debt The following table provides a summary of the Company’s junior subordinated debentures (dollars in thousands). Face Value Carrying Value Maturity Date Variable Interest Rate Interest Rate at December 31, 2020 First Community Louisiana Statutory Trust I $ 3,609 $ 3,609 June 2036 3-month LIBOR + 1.77% 1.99 % BOJ Bancshares Statutory Trust I 3,093 2,340 December 2034 3-month LIBOR + 1.90% 2.12 % $ 6,702 $ 5,949 These debentures are unsecured obligations due to trusts that are unconsolidated subsidiaries. The debentures were issued in conjunction with the trusts’ issuances of obligated capital securities. The trusts used the proceeds from the issuances of their capital securities to buy floating rate junior subordinated deferrable interest debentures that bear the same interest rate and terms as the capital securities. These debentures are the trusts’ only assets and the interest payments from the debentures finance the distributions paid on the capital securities. These debentures rank junior and are subordinate in the right of payment to all other debt of the Company. As part of the purchase accounting adjustments made with the BOJ Bancshares Inc. acquisition on December 1, 2017, the Company adjusted the carrying value of the BOJ Bancshares Statutory Trust I junior subordinated debentures to fair value as of the acquisition date. The discount on the debentures will continue to be amortized through maturity and recognized as a component of interest expense. The debentures may be called by the Company at par plus any accrued interest. Interest on the debentures is calculated quarterly. The distribution rate payable on the capital securities is cumulative and payable quarterly in arrears. The Company has the right to defer payments of interest on the debentures at any time by extending the interest payment period for a period not exceeding 20 consecutive quarters with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the debentures. |
OTHER BORROWED FUNDS
OTHER BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
OTHER BORROWED FUNDS | SUBORDINATED DEBT SECURITIES On November 12, 2019, the Company issued and sold $25.0 million in aggregate principal amount of its 5.125% Fixed-to-Floating Rate Subordinated Notes (the “2029 Notes”) due December 30, 2029. Beginning on December 30, 2024, the Company may redeem the 2029 Notes, in whole or in part, at their principal amount plus any accrued and unpaid interest. The 2029 Notes bear an interest rate of 5.125% per annum until December 30, 2024, on which date the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR as calculated on each applicable date of determination, or an alternative rate determined in accordance with the terms of the 2029 Notes if the three-month LIBOR cannot be determined, plus 349.0 basis points. On March 24, 2017, the Company issued and sold $18.6 million in aggregate principal amount of its 6.00% Fixed-to-Floating Rate Subordinated Notes (the “2027 Notes”) due March 30, 2027. Beginning on March 30, 2022, the Company may redeem the 2027 Notes, in whole or in part, at their principal amount plus any accrued and unpaid interest. The 2027 Notes bear an interest rate of 6.00% per annum until March 30, 2022, on which date the interest rate will reset quarterly to an annual interest rate equal to the then-current LIBOR plus 394.5 basis points. The carrying value of subordinated debt was $42.9 million and $42.8 million at December 31, 2020 and 2019, respectively. The subordinated debt securities were recorded net of issuance costs of $0.7 million and $0.8 million at December 31, 2020 and 2019, respectively, which are being amortized using the straight-line method over the lives of the respective securities. Federal Home Loan Bank Advances FHLB advances and weighted average interest rates at the end of the period by contractual maturity are summarized as of the dates presented (dollars in thousands). Amount Weighted Average Rate December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Fixed rate advances maturing: 2020 $ — $ 53,100 — % 1.74 % 2021 42,000 — 0.11 — 2024 23,500 23,500 1.81 1.81 2028 25,000 25,000 1.77 1.77 2033 30,000 30,000 1.88 1.88 $ 120,500 $ 131,600 1.23 % 1.79 % As of December 31, 2020, these advances are collateralized by approximately $775.7 million of the Company’s loan portfolio and $9.0 million of the Company’s investment securities in accordance with the Advance Security and Collateral Agreement with the FHLB. As of December 31, 2020, the Company had an additional $654.9 million available under its line of credit with the FHLB. At December 31, 2020 and 2019, the FHLB advances contractually maturing in 2028 and 2033 are fixed rate, nonamortizing puttable advances. Under the terms of these advances, the Bank sells the FHLB options to terminate the fixed rate advances at specified points in time prior to the stated maturity dates. The FHLB may terminate the advances on quarterly option exercise dates until maturity. Lines of Credit In addition, the Company has outstanding unsecured lines of credit with its correspondent banks available to assist in the management of short-term liquidity. Any balances drawn on these lines of credit mature daily. At December 31, 2020 and 2019, the available balance on the unsecured lines of credit totaled approximately $60.0 million, with no outstanding balance reflected on the consolidated balance sheets. Junior Subordinated Debt The following table provides a summary of the Company’s junior subordinated debentures (dollars in thousands). Face Value Carrying Value Maturity Date Variable Interest Rate Interest Rate at December 31, 2020 First Community Louisiana Statutory Trust I $ 3,609 $ 3,609 June 2036 3-month LIBOR + 1.77% 1.99 % BOJ Bancshares Statutory Trust I 3,093 2,340 December 2034 3-month LIBOR + 1.90% 2.12 % $ 6,702 $ 5,949 These debentures are unsecured obligations due to trusts that are unconsolidated subsidiaries. The debentures were issued in conjunction with the trusts’ issuances of obligated capital securities. The trusts used the proceeds from the issuances of their capital securities to buy floating rate junior subordinated deferrable interest debentures that bear the same interest rate and terms as the capital securities. These debentures are the trusts’ only assets and the interest payments from the debentures finance the distributions paid on the capital securities. These debentures rank junior and are subordinate in the right of payment to all other debt of the Company. As part of the purchase accounting adjustments made with the BOJ Bancshares Inc. acquisition on December 1, 2017, the Company adjusted the carrying value of the BOJ Bancshares Statutory Trust I junior subordinated debentures to fair value as of the acquisition date. The discount on the debentures will continue to be amortized through maturity and recognized as a component of interest expense. The debentures may be called by the Company at par plus any accrued interest. Interest on the debentures is calculated quarterly. The distribution rate payable on the capital securities is cumulative and payable quarterly in arrears. The Company has the right to defer payments of interest on the debentures at any time by extending the interest payment period for a period not exceeding 20 consecutive quarters with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the debentures. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS As part of its liability management, the Company utilizes pay-fixed interest rate swaps to manage exposure against the variability in the expected future cash flows (future interest payments) attributable to changes in the 1-month LIBOR associated with the forecasted issuances of 1-month fixed rate debt arising from a rollover strategy. The maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions is approximately 9.6 years. As of December 31, 2020, the Company had interest rate swap agreements with a total notional amount of $80.0 million and forward starting interest rate swap agreements with a total notional amount $140.0 million, all of which were designated as cash flow hedges, compared to one interest rate swap agreement with a notional amount of $50.0 million at December 31, 2019. The derivative contracts are between the Company and a single counterparty. To mitigate credit risk, securities are pledged to the Company by the counterparty in an amount greater than or equal to the gain position of the derivative contracts. Conversely, securities are pledged to the counterparty by the Company in an amount greater than or equal to the loss position of the derivative contracts, if applicable. For the year ended December 31, 2020, a loss of $2.3 million, net of a $0.6 million tax benefit, was recognized in “Other comprehensive (loss) income” (“OCI”) in the accompanying consolidated statements of other comprehensive income for the change in fair value of the interest rate swap contracts. For the years ended December 31, 2019 and December 31, 2018, a gain of $51,000, net of a $14,000 tax expense, and a gain of $84,000, net of a $22,000 tax expense, respectively, was recognized in OCI in the accompanying consolidated statements of other comprehensive income for the change in fair value of the interest rate swap contracts. The fair value of the swap contracts consisted of gross liabilities of $2.8 million and gross assets of $0.6 million, netting to a fair value of $2.2 million recorded in “Accrued taxes and other liabilities” in the accompanying consolidated balance sheet at December 31, 2020. The swap contract had a fair value of $0.7 million and is included in “Other assets” in the accompanying consolidated balance sheet at December 31, 2019. The accumulated loss of $1.8 million included in “Accumulated other comprehensive income” in the accompanying consolidated balance sheets would be reclassified to current earnings if the hedge transaction becomes probable of not occurring. The Company expects the hedges to remain fully effective during the remaining terms of the swap contracts. Customer Derivatives – Interest Rate Swaps The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC Topic 815, Derivatives and Hedging, and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820, Fair Value Measurement and Disclosure (“ASC 820”). The Company did not recognize any gains or losses in other income resulting from fair value adjustments during the years ended December 31, 2020, 2019 and 2018. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Preferred Stock The Company’s Articles of Incorporation give the Company’s board of directors the authority to issue up to 5,000,000 shares of preferred stock. At December 31, 2020, there were no preferred shares outstanding. The preferred shares are considered “blank check” preferred stock. This type of preferred stock allows the board of directors to fix the designations, preferences and relative, participating, optional or other special rights, and qualifications and limitations or restrictions of any series of preferred stock without further shareholder approval. Common Stock The Company’s Articles of Incorporation give the Company’s board of directors the authority to issue up to 40,000,000 shares of common stock. At December 31, 2020, there were 10,608,869 common shares outstanding compared to 11,228,775 and 9,484,219 at December 31, 2019 and 2018, respectively. On March 1, 2019, the Company issued 763,849 shares of its common stock as consideration for the acquisition of Mainland. On December 20, 2019 the Company completed a private placement of 1,290,323 shares of its common stock at a price of $23.25 per share. The private offering generated net proceeds of $28.5 million. In addition, the Company repurchased 661,504 and 359,906 shares of its common stock through its stock repurchase program at an average price of $16.75 and $23.09 during the years ended December 31, 2020 and 2019, respectively. Dividend Restrictions. In the ordinary course of business, the Company is dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. Under the foregoing dividend restrictions and while maintaining its “well capitalized” status, at December 31, 2020, the Bank could pay aggregate dividends of up to $44.3 million to the Company without prior regulatory approval. Under the terms of the junior subordinated debentures, assumed through acquisition, the Company has the right at any time during the term of the debentures to defer the payment of interest. In the event that the Company elects to defer interest on the debentures, it may not, with certain exceptions, declare or pay any dividends or distributions on its common stock or purchase or acquire any of its common stock. Under the terms of the Company’s 5.125% Fixed -to-Floating Rate Subordinated Notes due 2029, the Company may not pay a dividend if either the parent company or the Bank, both immediately prior to the declaration of the dividend and after giving effect to the payment of the dividend, would not maintain regulatory capital ratios that are at “well capitalized” levels for regulatory purposes (but with respect to the parent company, only if it is required to measure and report such ratios on a consolidated basis under applicable law). The Company is also prohibited from paying dividends upon and during the continuance of any Event of Default under such notes. These restrictions do not, and are not expected in the future to, materially limit the Company’s ability to pay dividends to its shareholders in an amount consistent with the Company’s history of paying dividends. Accumulated Other Comprehensive Income (Loss) Activity within the balances in accumulated other comprehensive income (loss), net is shown in the tables below (dollars in thousands). For the years ended December 31, 2020 2019 2018 Beginning of Period Net Change End of Period Beginning of Period Net Change End of Period Beginning of Period Net Change End of Period Unrealized gain (loss), available for sale, net $ 3,476 $ 4,017 $ 7,493 $ (1,647) $ 5,123 $ 3,476 $ (71) $ (1,576) $ (1,647) Reclassification of realized gain, net (2,131) (1,808) (3,939) (1,925) (206) (2,131) (1,914) (11) (1,925) Unrealized loss, transfer from available for sale to held to maturity, net 4 (1) 3 5 (1) 4 7 (2) 5 Change in fair value of interest rate swap designated as a cash flow hedge, net 542 (2,294) (1,752) 491 51 542 407 84 491 Accumulated other comprehensive income (loss) $ 1,891 $ (86) $ 1,805 $ (3,076) $ 4,967 $ 1,891 $ (1,571) $ (1,505) $ (3,076) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Equity Incentive Plan. The Company’s 2017 Long-Term Incentive Compensation Plan (the “Plan”) authorizes the grant of various types of equity awards, such as restricted stock, restricted stock units, stock options and stock appreciation rights to eligible participants, which include all of the Company’s employees, non-employee directors, and consultants. The Plan has reserved 600,000 shares of common stock for issuance to eligible participants pursuant to equity awards under the Plan. The Plan is administered by the Compensation Committee of the Company’s board of directors, which determines, within the provisions of the Plan, those eligible employees to whom, and the times at which, equity awards will be granted. The Compensation Committee, in its discretion, may delegate its authority and duties under the Plan to specified officers; however, only the Compensation Committee may approve the terms of equity awards to the Company’s executive officers and directors. At December 31, 2020, approximately 242,408 shares remain available for grant. Stock Options During the years ended December 31, 2020, 2019 and 2018, the Company granted 58,993, 36,984 and 31,788 stock options, respectively, to key personnel that vest in one-fifth increments on each of the first five The table below summarizes the Company’s stock option activity for the periods indicated. Stock Options Shares Weighted Average Price Weighted Average Remaining Contractual Term (Years) Outstanding at December 31, 2017 322,917 $ 15.09 7.19 Granted 31,788 20.25 Forfeited (1,644) 14.00 Exercised (12,415) 14.07 Outstanding at December 31, 2018 340,646 15.98 6.49 Granted 36,984 24.40 Forfeited — — Exercised (20,416) 14.06 Outstanding at December 31, 2019 357,214 16.96 5.93 Granted 58,993 16.96 Forfeited (4,585) 21.36 Exercised (3,334) 14.00 Outstanding at December 31, 2020 408,288 17.66 5.57 Exercisable at December 31, 2020 276,855 15.67 4.47 The aggregate intrinsic value of stock options is calculated as the aggregate difference between the exercise price of the stock options and the fair market value of the Company’s common stock for those stock options having an exercise price lower than the fair market value of the Company’s common stock. At December 31, 2020, the shares underlying outstanding and exercisable stock options had an intrinsic value of $0.5 million. The Company uses a Black-Scholes option pricing model to estimate the fair value of stock-based awards. The Black-Scholes option pricing model incorporates various subjective assumptions, including expected term and expected volatility. Stock option expense in the accompanying consolidated statements of income for the years ended December 31, 2020, 2019, and 2018 was $0.2 million, $0.3 million and $0.3 million, respectively. At December 31, 2020, there was $0.6 million of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted average period of 3.3 years. The table below shows the assumptions used for the stock options granted during the years ended December 31, 2020 and 2019. 2020 2019 Dividend yield 1.12 % 0.82 % Expected volatility 26.39 % 27.26 % Risk-free interest rate 0.99 % 2.63 % Expected term (in years) 6.5 6.5 Weighted-average grant date fair value $ 5.17 $ 7.30 Restricted Stock and Restricted Stock Units Under the Plan, the Company may grant restricted stock, restricted stock units, and other stock-based awards to Plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While restricted stock is subject to forfeiture, holders of restricted stock may exercise full voting rights and will receive all dividends paid with respect to the restricted shares. Restricted stock units (“RSUs”) do not have voting rights and do not receive dividends or dividend equivalents. The restricted stock and RSUs granted under the Plan are typically subject to a vesting period. Compensation expense for restricted stock and RSUs is determined based on the market price of the Company’s common stock at the grant date and is applied to the total number of shares or units granted and is recognized on a straight-line basis over the requisite service period of generally five years for employees and two years for non-employee directors. Upon vesting of restricted stock and RSUs, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the Consolidated Statements of Income. Historically, the Company has granted restricted stock awards to Plan participants. Beginning in 2019, the Company granted time vested RSUs to its non-employee directors and certain officers of the Company with vesting terms ranging from two years to five years. The Company granted a total of 102,953 RSUs to employees and directors for the year ended December 31, 2020. Of the RSUs issued in 2020, 91,268 shares will vest over five years and 11,685 shares will vest over two years. The Company granted a total of 79,439 shares of RSUs to employees and directors for the year ended December 31, 2019. Of the RSUs issued in 2019, 68,430 shares will vest over five years and 11,009 shares will vest over two years. The Company granted a total of 60,260 shares of restricted stock to employees for the year ended December 31, 2018. Of the restricted stock issued in 2018, 51,263 shares will vest over five years and 8,997 shares will vest over two years. Compensation expense related to restricted stock and RSUs in the accompanying consolidated statements of income for the years ended December 31, 2020, 2019, and 2018 was $1.4 million, $1.1 million and $0.8 million, respectively. The unearned compensation related to these awards is amortized to compensation expense over the vesting period. As of December 31, 2020, 2019 and 2018, unearned stock-based compensation associated with these awards totaled approximately $3.4 million, $2.8 million and $2.1 million, respectively. The $3.4 million of unrecognized compensation cost related to time vested restricted stock and RSUs at December 31, 2020 is expected to be recognized over a weighted average period of 3.3 years. The following table summarizes the restricted stock and RSU activity for the years ended December 31, 2020 and December 31, 2019. December 31, 2020 2019 Shares Weighted Avg Grant Date Fair Value Shares Weighted Avg Grant Date Fair Value Balance, beginning of period 168,216 $ 22.43 135,848 $ 20.47 Granted 102,953 21.41 79,439 24.46 Forfeited (10,283) 22.16 (5,828) 23.70 Earned and issued (53,740) 21.29 (41,243) 19.65 Balance, end of period 207,146 $ 22.23 168,216 $ 22.43 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company maintains a 401(k) defined contribution plan (the “401(k) Plan”) which covers employees over the age of twenty-one The 401(k) Plan also allows for discretionary Company contributions in the form of cash or Company stock. Contributions in the form of Company stock are held in a portion of the 401(k) Plan that qualifies as an employee stock ownership plan. The Company made a $0.2 million Company stock contribution in both the years ended December 31, 2020 and 2019. The discretionary components vest in increments of 20% annually over a period of five years based on the employees’ years of service, beginning upon completion of two years of service (such that an employee with six years of service will be 100% vested). In 2018, 2019 and 2020, the Bank entered into Salary Continuation Agreements (“SCA”) with certain of the Company’s officers. The SCAs represent unfunded, non-qualified deferred compensation arrangements under the Internal Revenue Code of 1986, as amended. The SCAs between the Bank and each officer, as supplemented if applicable, provide that the officer shall receive annual payments of a fixed amount upon attaining the age of 65, with such payments payable monthly over a period of 120 months (10 years). Each officer is also entitled to certain reduced payments following a termination of employment prior to attaining age 65 (other than a termination due to death or with cause), which payments shall be made on the same schedule mentioned above. The Company maintained a deferred compensation plan for a former employee of First Community Bank, a bank acquired by the Company in 2013. A single premium immediate annuity policy was purchased of which the former employee is the beneficiary. Under this policy, the beneficiary received monthly payments of $2,000 through 2020. The Company also maintains a deferred compensation plan for a former employee of Citizens Bank (“Citizens”), a liability for which was assumed in the Citizens acquisition in 2017. Under the deferred compensation agreement, the former employee will receive monthly payments of $2,000 through May of 2030. At December 31, 2020 and 2019, the Company had a liability of $1.9 million and $1.6 million, respectively, in Accrued taxes and other liabilities on the consolidated balance sheets related to these deferred compensation plans. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law. The TCJA made broad and complex changes to the U.S. tax code that affected the Company’s income tax rate in 2017, including requiring the revaluation of the Company’s deferred tax assets and liabilities as of December 31, 2017 as a result of the lower corporate tax rates to be realized beginning January 1, 2018. The TCJA reduced the U.S. federal corporate income tax rate from 35% to 21% and established new tax laws that affected 2018. The income tax expense included in the consolidated statements of income is displayed in the table below for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands). December 31, 2020 2019 2018 Current $ 4,838 $ 3,966 $ 2,789 Deferred (1,388) 153 841 Total income tax expense $ 3,450 $ 4,119 $ 3,630 The Company’s income tax expense for the year ended December 31, 2018 includes total charges of $0.3 million related to the revaluation of its deferred tax assets and liabilities as a result of the TCJA. The provision for federal income taxes differs from that computed by applying the federal statutory rate of 21% as indicated in the following analysis for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands). December 31, 2020 2019 2018 Tax based on statutory rate $ 3,641 $ 4,401 $ 3,619 Increase (decrease) resulting from: Effect of tax-exempt income (299) (250) (249) Acquisition costs — 32 29 Historical tax credits 29 6 6 Effect of tax rate change — — 338 State taxes 33 15 — Other 46 (85) (113) Total income tax expense $ 3,450 $ 4,119 $ 3,630 Effective rate 19.9 % 19.7 % 21.1 % The Company records deferred income tax on the tax effect of changes in timing differences. The net deferred tax liability or asset was comprised of the following items as of the dates indicated (dollars in thousands). December 31, 2020 2019 Deferred tax liabilities: Depreciation $ (3,746) $ (2,903) FHLB stock dividend (63) (122) Unrealized gain on available for sale securities (480) (502) Basis difference in acquired assets and liabilities (1,010) (1,123) Operating lease right-of-use asset (809) (695) Other (149) (88) Gross deferred tax liability (6,257) (5,433) Deferred tax assets: Allowance for loan losses 4,012 2,219 Net operating loss carryforward 440 564 Deferred compensation 404 372 Basis difference in acquired assets and liabilities 380 481 Historical tax credit — 155 Employee and director stock awards 524 419 Operating lease liability 828 709 Unearned loan fees 667 190 Other 362 229 Gross deferred tax assets 7,617 5,338 Net deferred tax asset (liability) $ 1,360 $ (95) The Company acquired net operating loss (“NOL”) carryforwards through tax free acquisitions. As of December 31, 2020 and December 31, 2019, the Company’s gross NOL carryforwards were approximately $2.1 million and $2.7 million, respectively. As of December 31, 2020, $0.4 million and $1.7 million of the NOL carryforwards expire in 2033 and 2039, respectively. All available NOL carryforwards are expected to be fully utilized by 2023. The Company files income tax returns under U.S. federal jurisdiction and the states of Alabama, Florida, Texas and Louisiana, although the state of Louisiana does not assess an income tax on income resulting from banking operations. The Company is open to examination in the U.S. and the state of Louisiana for tax years ended December 31, 2017 through December 31, 2020; and Alabama, Texas and Florida for tax years ended December 31, 2019 and December 31, 2020. |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS In accordance with FASB ASC 820, disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, is required. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Fair value is best determined based upon quoted market prices, or exit prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows, and the fair value estimates may not be realized in an immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with ASC 820, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based upon quoted prices for identical assets or liabilities traded in active markets. Level 2 – Valuation is based upon observable inputs other than quoted prices included in level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 – Valuation is based upon unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and Due from Banks – For these short-term instruments, fair value is the carrying value. Cash and due from banks is classified in level 1 of the fair value hierarchy. Federal Funds Sold – The fair value is the carrying value. The Company classifies these assets in level 1 of the fair value hierarchy. Investment Securities and Equity Securities – Where quoted prices are available in an active market, the Company classifies the securities within level 1 of the valuation hierarchy. Securities are defined as both long and short positions. Level 1 securities include exchange-traded equity securities. If quoted market prices are not available, the Company estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, and credit spreads. Examples of such instruments, which would generally be classified within level 2 of the valuation hierarchy if observable inputs are available, include obligations of U.S. government agencies and corporations, obligations of state and political subdivisions, corporate bonds, residential mortgage-backed securities, commercial mortgage-backed securities, and other equity securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, the Company classifies those securities in level 3. Based on market reference data, which may include reported trades; bids, offers or broker/dealer quotes; benchmark yields and spreads; as well as other reference data, management monitors the current placement of securities in the fair value hierarchy to determine whether transfers between levels may be warranted. In the fourth quarter of 2019, the Company transferred approximately $1.3 million of corporate bonds from level 3 to level 2 based on reported trades of similar securities. At December 31, 2020, all of our level 3 investments were obligations of state and political subdivisions. The Company estimated the fair value of these level 3 investments using discounted cash flow models, the key inputs of which are the coupon rate, current spreads to the yield curves, and expected repayment dates, adjusted for illiquidity of the local municipal market and sinking funds, if applicable. Option-adjusted models may be used for structured or callable notes, as appropriate. Loans – The fair value of portfolio loans, net is determined using an exit price methodology. The exit price methodology continues to be based on a discounted cash flow analysis, in which projected cash flows are based on contractual cash flows adjusted for prepayments for certain loan types (e.g. residential mortgage loans and multifamily loans) and the use of a discount rate based on expected relative risk of the cash flows. The discount rate selected considers loan type, maturity date, a liquidity premium, cost to service, and cost of capital, which is a level 3 fair value estimate. Deposit Liabilities – The fair values disclosed for noninterest-bearing demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). These noninterest-bearing deposits are classified in level 2 of the fair value hierarchy. All interest-bearing deposits are classified in level 3 of the fair value hierarchy. The carrying amounts of variable-rate (for example interest-bearing checking, savings, and money market accounts), fixed-term money market accounts, and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits. Short-Term Borrowings— The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings approximate their fair values. The Company classifies these borrowings in level 2 of the fair value hierarchy. Long-Term Borrowings, including Junior Subordinated Debt Securities – The fair values of long-term borrowings are estimated using discounted cash flows analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Company’s long-term debt is therefore classified in level 3 in the fair value hierarchy. Subordinated Debt Securities – The fair value of subordinated debt is estimated based on current market rates on similar debt in the market. The Company classifies this debt in level 2 of the fair value hierarchy. Derivative Instruments – The fair value for interest rate swap agreements are based upon the amounts required to settle the contracts. These derivative instruments are classified in level 2 of the fair value hierarchy. Fair Value of Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below as of the dates indicated (dollars in thousands). Fair Value Quoted Prices in Significant Other Significant December 31, 2020 Assets: Obligations of U.S. government agencies and corporations $ 36,821 $ — $ 36,821 $ — Obligations of state and political subdivisions 22,137 — 3,621 18,516 Corporate bonds 27,708 — 27,708 — Residential mortgage-backed securities 122,598 — 122,598 — Commercial mortgage-backed securities 59,146 — 59,146 — Equity securities 1,670 1,670 — — Total assets $ 270,080 $ 1,670 $ 249,894 $ 18,516 Liabilities: Derivative financial instruments $ 2,216 $ — $ 2,216 $ — December 31, 2019 Assets: Obligations of U.S. government agencies and corporations $ 33,651 $ — $ 33,651 $ — Obligations of state and political subdivisions 33,449 — 14,074 19,375 Corporate bonds 19,163 — 19,163 — Residential mortgage-backed securities 101,946 — 101,946 — Commercial mortgage-backed securities 71,596 — 71,596 — Equity securities 2,097 2,097 — — Derivative financial instruments 687 — 687 — Total assets $ 262,589 $ 2,097 $ 241,117 $ 19,375 Equity securities balances in the table above do not reflect balances of stock held in correspondent banks. The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the Company’s ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy. The table below provides a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or level 3 inputs (dollars in thousands). Obligations of Corporate Total Balance at December 31, 2018 $ 18,808 $ 1,335 $ 20,143 Realized gains (losses) included in net income — — — Unrealized gains included in other comprehensive (loss) income 590 — 590 Purchases — — — Sales — — — Maturities, prepayments, and calls (23) — (23) Transfers into Level 3 — — — Transfers out of Level 3 — (1,335) (1,335) Balance at December 31, 2019 $ 19,375 $ — $ 19,375 Realized gains (losses) included in net income — — — Unrealized losses included in other comprehensive (loss) income (859) — (859) Purchases — — — Sales — — — Maturities, prepayments, and calls — — — Transfers into Level 3 — — — Transfers out of Level 3 — — — Balance at December 31, 2020 $ 18,516 $ — $ 18,516 There were no liabilities measured at fair value on a recurring basis using level 3 inputs at December 31, 2020 and 2019. For the years ended December 31, 2020, 2019 and 2018, there were no gains or losses included in earnings related to the change in fair value of the assets measured on a recurring basis using significant unobservable inputs held at the end of the period. The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at December 31, 2020 (dollars in thousands): Estimated Valuation Technique Unobservable Inputs Range of December 31, 2020 Obligations of State and Political Subdivisions $ 18,516 Option-adjusted discounted cash flow model; present value of expected future cash flow model Bond Appraisal Adjustment (1) 0% - 0.4% (1) Fair values determined through valuation analysis using coupon, yield (discount margin), liquidity and expected repayment dates. Fair Value of Assets Measured on a Nonrecurring Basis Quantitative information about assets measured at fair value on a nonrecurring basis based on significant unobservable inputs (level 3) are summarized below as of the dates indicated; there were no liabilities measured on a nonrecurring basis at December 31, 2020 or 2019 (dollars in thousands). Estimated Valuation Technique Unobservable Inputs Range of Weighted Average December 31, 2020 Impaired loans $ 259 Discounted cash flows, Underlying collateral value Collateral discounts and estimated costs to sell 2% - 100% 34% Other real estate owned $ 635 Underlying collateral value, Third party appraisals Collateral discounts and discount rates 4% 4% December 31, 2019 Impaired loans $ 55 Discounted cash flows, Underlying collateral value Collateral discounts and estimated costs to sell 0% - 100% 31% The estimated fair values of the Company’s financial instruments at December 31, 2020 and December 31, 2019 are shown below (dollars in thousands). December 31, 2020 Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 35,368 $ 35,368 $ 35,368 $ — $ — Investment securities 280,844 281,059 — 254,306 26,753 Equity securities 16,599 16,599 1,670 14,929 — Loans, net of allowance 1,839,955 1,861,971 — — 1,861,971 Financial liabilities: Deposits, noninterest-bearing $ 448,230 $ 448,230 $ — $ 448,230 $ — Deposits, interest-bearing 1,439,594 1,504,644 — — 1,504,644 FHLB short-term advances and repurchase agreements 47,653 47,653 — 47,653 — FHLB long-term advances 78,500 82,101 — — 82,101 Junior subordinated debt 5,949 5,299 — — 5,299 Subordinated debt 43,600 42,336 — 42,336 — Derivative financial instruments 2,216 2,216 — 2,216 — December 31, 2019 Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 44,308 $ 44,308 $ 44,308 $ — $ — Federal funds sold 387 387 387 — — Investment securities 274,214 274,285 — 245,410 28,875 Equity securities 19,315 19,316 2,097 17,219 — Loans, net of allowance 1,681,275 1,680,364 — — 1,680,364 Derivative financial instruments 687 687 — 687 — Financial liabilities: Deposits, noninterest-bearing $ 351,905 $ 351,905 $ — $ 351,905 $ — Deposits, interest-bearing 1,355,801 1,368,194 — — 1,368,194 FHLB short-term advances and repurchase agreements 56,095 56,095 — 56,095 — FHLB long-term advances 78,500 76,635 — — 76,635 Junior subordinated debt 5,897 7,747 — — 7,747 Subordinated debt 43,600 56,399 — 56,399 — |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS The Company and Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines, the Company and Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Common Equity Tier 1, and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and Tier 1 capital to average assets (as defined). As of December 31, 2020 and 2019, the Bank was considered well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum risk-based and Tier 1 leverage capital ratios as set forth in the table below and not be subject to a written agreement or order with regulators to maintain a specific capital level for any capital measure. There are no conditions or events since the regulatory framework for prompt corrective action was issued that management believes have changed the Bank’s category. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2020 and December 31, 2019 are presented in the tables below (dollars in thousands). Actual Capital Adequacy * Well Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Tier 1 leverage capital Investar Holding Corporation $ 215,750 9.49 % $ 90,975 4.00 % NA NA Investar Bank 237,684 10.47 90,837 4.00 113,546 5.00 Common Equity Tier 1 risk-based capital Investar Holding Corporation 209,250 11.02 132,890 7.00 NA NA Investar Bank 237,684 12.53 132,750 7.00 123,268 6.50 Tier 1 risk-based capital Investar Holding Corporation 215,750 11.36 161,366 8.50 NA NA Investar Bank 237,684 12.53 161,196 8.50 151,714 8.00 Total risk-based capital Investar Holding Corporation 279,253 14.71 199,335 10.50 NA NA Investar Bank 258,291 13.62 199,125 10.50 189,642 10.00 December 31, 2019 Tier 1 leverage capital Investar Holding Corporation $ 215,550 10.45 % $ 82,546 4.00 % NA NA Investar Bank 222,316 10.77 82,578 4.00 103,223 5.00 Common Equity Tier 1 risk-based capital Investar Holding Corporation 209,050 11.67 125,412 7.00 NA NA Investar Bank 222,316 12.43 125,238 7.00 116,293 6.50 Tier 1 risk-based capital Investar Holding Corporation 215,550 12.03 152,286 8.50 NA NA Investar Bank 222,316 12.43 152,074 8.50 143,130 8.00 Total risk-based capital Investar Holding Corporation 269,171 15.02 188,118 10.50 NA NA Investar Bank 233,111 13.03 187,857 10.50 178,912 10.00 * The minimum ratios and amounts under the column for Capital Adequacy for December 31, 2020 and December 31, 2019 reflect the minimum regulatory capital ratios imposed under Basel III plus the fully phased-in capital conservation buffer of 2.5%. Applicable Federal statutes and regulations impose restrictions on the amounts of dividends that may be declared by the Company and the Bank. In addition to the formal statutes and regulations, regulatory authorities also consider the adequacy of the Company’s and the Bank’s total capital in relation to its assets, deposits and other such items and, as a result, capital adequacy considerations could further limit the availability of dividends from the Company and the Bank. The Company is also subject to dividend restrictions under the terms of its 2029 Notes and junior subordinated debentures. See “Common Stock - Dividend Restrictions” in Note 14, Stockholders’ Equity, for more information. In July 2013, the federal banking regulatory agencies issued a final rule which revises the regulatory capital framework for financial institutions. The final rule (also known as the Basel III capital rules) covers a number of aspects pertaining to capital requirements. These include: • Increased the Prompt Corrective Action Capital Category Thresholds to be deemed well-capitalized. • Established a Capital Conservation Buffer - The Capital Conservation Buffer was phased in through 2019. • Changes in risk-weighting of assets. • Opt-out Election of Accumulated Other Comprehensive Income from Common Equity Tier 1 Capital. Financial institutions became subject to the final rule on January 1, 2015, and the rules were fully phased in as of January 1, 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Unfunded Commitments The Company is a party to financial instruments with off-balance sheet risk entered into in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit consisting of loan commitments and standby letters of credit, which are not included in the accompanying financial statements. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for unfunded lending commitments is included in other liabilities in the balance sheet. At December 31, 2020 and 2019, the reserve for unfunded loan commitments was $0.2 million and $0.1 million, respectively. Commitments to extend credit are agreements to lend money with fixed expiration dates or termination clauses. The Company applies the same credit standards used in the lending process when extending these commitments, and periodically reassesses the customer’s creditworthiness through ongoing credit reviews. Since some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Collateral is obtained based on the Company’s assessment of the transaction. Essentially all standby letters of credit issued have expiration dates within one year. The table below shows the approximate amounts of the Company’s commitments to extend credit as of the dates presented (dollars in thousands). December 31, 2020 December 31, 2019 Loan commitments $ 266,039 $ 242,180 Standby letters of credit 14,420 11,475 Additionally, at December 31, 2020, the Company had unfunded commitments of $1.0 million for its investment in Small Business Investment Company qualified funds, which is included in other assets on the consolidated balance sheet. Insurance The Company is obligated for certain costs associated with its insurance program for employee health. The Company is self-insured for a substantial portion of its potential claims. The Company recognizes its obligation associated with these costs, up to specified deductible limits in the period in which a claim is incurred, including with respect to both reported claims and claims incurred but not reported. The claims costs are estimated based on historical claims experience. The reserves for insurance claims are reviewed and updated by management on a quarterly basis. Employment Agreements On August 1, 2020, the Company entered into employment agreements with its Chief Executive Officer and Chief Financial Officer. These agreements provide that each executive shall receive a minimum annual base salary ($510,000 for its Chief Executive Officer and $285,000 for its Chief Financial Officer), shall be eligible for annual incentive compensation up to a certain percentage of the base salary, subject to the discretion and approval of the Company’s board of directors, and shall be entitled to the payment of severance benefits upon termination under specified circumstances. The initial term of each Employment Agreement expires on August 1, 2023 and will automatically renew for successive one-year periods unless written notice of non-renewal is given by either party to the other at least ninety (90) days prior to the expiration of the then-current term. Legal Proceedings The nature of the business of the Company’s banking and other subsidiaries ordinarily results in a certain amount of claims, litigation, investigations, and legal and administrative cases and proceedings, which are considered incidental to the normal conduct of business. Some of these claims are against entities which the Company acquired in business acquisitions. The Company has asserted defenses to these claims and, with respect to such legal proceedings, intends to continue to defend itself, litigating or settling cases according to management’s judgment as to what is in the best interest of the Company and its shareholders. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of loss is not estimable, the Company does not accrue legal reserves. While the outcome of legal proceedings is inherently uncertain, based on information currently available and available insurance coverage, the Company’s management believes that it has established appropriate legal reserves. If an accrual is not made, and there is at least a reasonable possibility that a loss or additional loss may have been incurred, the Company discloses the nature of the contingency and an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. Any incremental liabilities arising from pending legal proceedings are not expected to have a material adverse effect on the Company’s consolidated financial position, consolidated results of operations, or consolidated cash flows. However, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the Company’s consolidated financial position, consolidated results of operations, or consolidated cash flows. As of the date of this filing, the Company believes the amount of losses associated with legal proceedings that it is reasonably possible to incur is not material. |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | TRANSACTIONS WITH RELATED PARTIES The Bank has made, and expects in the future to continue to make in the ordinary course of business, loans to directors and executive officers of the Company, the Bank, and their affiliates. In management’s opinion, these loans were made in the ordinary course of business at normal credit terms, including interest rate and collateral requirements, and do not represent more than normal credit risk. See Note 4, Loans and Allowance for Loan Losses, for more information regarding lending transactions between the Company and these related parties. During 2020 and 2019, certain executive officers and directors of the Company and the Bank, including companies with which they are affiliated, were deposit customers of the Bank. See Note 9, Deposits, regarding total deposits outstanding to these related parties. The Company has transactions with related parties for which the Company believes the terms and conditions are comparable to terms that would have been available from a third party that was unaffiliated with the Company. The following describes transactions since January 1, 2018, in addition to the ordinary banking relationships described above, in which the Company has participated in which one or more of its directors, executive officers or other related persons had or will have a direct or indirect material interest. On May 29, 2020, the Bank purchased the first floor of its corporate headquarters, located at 10500 Coursey Blvd. in Baton Rouge, Louisiana, from Court Plaza Investments, LLC, a related party entity that is controlled by one of the Company’s board members. Following the purchases of the second and third floors in previous years, the first floor was purchased for $1.8 million and gives the Bank complete ownership of the building, branded as the Investar Tower. The purchase price approximated the appraised value as determined by an independent appraiser. The Company has engaged in a number of transactions with Joffrion Commercial Division, LLC (“JCD”), a commercial construction company owned and managed by Gordon H. Joffrion, one of the Company’s directors. For each transaction, the Company selected JCD through its public bidding process. The Company paid JCD approximately $0.9 million, $0.3 million and $0.6 million during the years ended December 31, 2020, 2019 and 2018, respectively. |
PARENT ONLY BALANCE SHEETS, STA
PARENT ONLY BALANCE SHEETS, STATEMENTS OF OPERATIONS AND STATEMENTS OF CASH FLOWS | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT ONLY BALANCE SHEETS, STATEMENTS OF OPERATIONS AND STATEMENTS OF CASH FLOWS | PARENT ONLY BALANCE SHEETS, STATEMENTS OF OPERATIONS AND STATEMENTS OF CASH FLOWS BALANCE SHEETS December 31, (dollars in thousands) 2020 2019 ASSETS Cash and due from bank $ 19,678 $ 35,535 Equity securities 1,178 1,615 Accounts receivable — 3 Due from bank subsidiary 909 712 Investment in bank subsidiary 271,619 255,141 Investment in trust 202 202 Investment in tax credit entity — 87 Trademark intangible 100 100 Other assets 63 37 Total assets $ 293,749 $ 293,432 LIABILITIES Subordinated debt, net of unamortized issuance costs $ 42,897 $ 42,826 Junior subordinated debt 5,949 5,897 Accounts payable 167 1,579 Accrued interest payable 606 465 Dividend payable 694 679 Deferred tax liability 152 10 Total liabilities 50,465 51,456 STOCKHOLDERS’ EQUITY Common stock 10,609 11,229 Surplus 159,485 168,658 Retained earnings 71,385 60,198 Accumulated other comprehensive income 1,805 1,891 Total stockholders’ equity 243,284 241,976 Total liabilities and stockholders’ equity $ 293,749 $ 293,432 STATEMENTS OF OPERATIONS For the year ended December 31, (dollars in thousands) 2020 2019 REVENUE Dividends received from bank subsidiary $ — $ 6,600 Dividends on corporate stock 78 30 Partnership income 19 — Change in the fair value of equity securities 258 327 Interest income from investment in trust 5 9 Total revenue 360 6,966 EXPENSE Interest on borrowings 2,713 1,686 Management fees to bank subsidiary 360 360 Acquisition expense 72 31 Other expense 574 440 Total expense 3,719 2,517 (Loss) income before income taxes and equity in undistributed income of bank subsidiary (3,359) 4,449 Equity in undistributed income of bank subsidiary 16,563 11,941 Income tax benefit 685 449 Net income $ 13,889 $ 16,839 STATEMENTS OF CASH FLOWS For the year ended December 31, (dollars in thousands) 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 13,889 $ 16,839 Adjustments to reconcile net loss to net cash provided by operating activities: Equity in undistributed earnings of bank subsidiary (16,563) (11,941) Change in the fair value of equity securities (258) (327) Amortization of debt issuance costs and purchase accounting adjustments 123 105 Net change in: Due from bank subsidiary (197) (261) Other assets 10 25 Deferred tax asset 142 62 Accrued other liabilities (23) 2,776 Net cash (used in) provided by operating activities (2,877) 7,278 CASH FLOWS FROM INVESTING ACTIVITIES Capital contributed to bank subsidiary — (23,250) Repayment of investment in and advances to subsidiary — 8,000 Distributions from investments 77 82 Purchases of equity securities (2,449) (144) Proceeds from the sale of equity securities 3,144 88 Net cash provided by (used in) investing activities 772 (15,224) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid on common stock (2,686) (2,167) Proceeds from common stock offering, net of issuance costs — 28,525 Payments to repurchase common stock (11,112) (8,326) Proceeds from stock options 46 287 Proceeds from subordinated debt, net of costs — 24,558 Net cash (used in) provided by financing activities (13,752) 42,877 Net (decrease) increase in cash (15,857) 34,931 Cash and cash equivalents, beginning of period 35,535 604 Cash and cash equivalents, end of period $ 19,678 $ 35,535 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash payments for: Interest on borrowings $ 2,571 $ 1,513 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following is a summary of the information used in the computation of basic and diluted earnings per common share for the years ended December 31, 2020, 2019 and 2018 (in thousands, except share data). December 31, 2020 2019 2018 Earnings per common share - basic Net income $ 13,889 $ 16,839 $ 13,606 Less: income allocated to participating securities (73) (164) (192) Net income allocated to common shareholders $ 13,816 $ 16,675 $ 13,414 Weighted-average basic shares outstanding 10,850,936 9,931,497 9,538,891 Basic earnings per common share $ 1.27 $ 1.68 $ 1.41 Earnings per common share - diluted Net income allocated to common shareholders $ 13,816 $ 16,676 $ 13,417 Weighted-average basic shares outstanding 10,850,936 9,931,497 9,538,891 Dilutive effect of securities 14,911 99,521 125,952 Total weighted average diluted shares outstanding 10,865,847 10,031,018 9,664,843 Diluted earnings per common share $ 1.27 $ 1.66 $ 1.39 The weighted average number of shares that have an antidilutive effect in the calculation of diluted earnings per common share and have been excluded from the computations above are shown below. December 31, 2020 2019 2018 Stock options 71 — 6,306 Restricted stock awards 10,968 388 1,364 Restricted stock units 62,754 7,550 — |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On January 21, 2021, the Company and its wholly-owned subsidiary, the Bank, entered into an Agreement and Plan of Reorganization (the “Reorganization Agreement”) with Cheaha Financial Group, Inc. (“Cheaha”), the holding company for Cheaha Bank, Oxford, Alabama, and High Point Acquisition, Inc., a Louisiana corporation and wholly-owned subsidiary of the Company (“Merger Subsidiary”). The Reorganization Agreement provides for the merger of the Merger Subsidiary with and into Cheaha, with Cheaha as the surviving corporation. Immediately following the merger, Cheaha will be merged with and into the Company, with the Company as the surviving corporation, and then Cheaha Bank will be immediately merged with and into the Bank, with the Bank as the surviving bank. Under the terms of the Reorganization Agreement, each of the issued and outstanding shares of Cheaha common stock will be converted into and represent the right to receive $80.00 in cash from the Company. In the aggregate, Cheaha’s shareholders will receive approximately $41.1 million in cash consideration as a result of the merger, which per share and aggregate consideration shall be reduced by any dividends paid to Cheaha shareholders prior to the closing of the acquisition. Prior to the closing of the merger, Cheaha will be required to have adjusted tangible shareholders equity, calculated on a consolidated basis in the manner described in the Reorganization Agreement, equal to at least $27.6 million. Consummation of the transactions contemplated by the Reorganization Agreement is subject to various customary conditions, including, without limitation (i) the approval of the shareholders of Cheaha, (ii) the receipt of certain regulatory approvals, (iii) the accuracy of the representations and warranties of the parties and compliance by the parties with their respective covenants and obligations under the Reorganization Agreement (subject to customary materiality qualifiers), and (iv) the absence of a material adverse change with respect to Cheaha. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Investar Holding Corporation (the “Company”) is a financial holding company headquartered in Baton Rouge, Louisiana, that provides, through its wholly-owned subsidiary, Investar Bank, National Association (the “Bank”), full banking services, excluding trust services, tailored primarily to meet the needs of individuals and small to medium-sized businesses throughout its markets in south Louisiana, southeast Texas and west Alabama. |
Basis of Presentation | Basis of PresentationThe consolidated financial statements of Investar Holding Corporation and its wholly-owned subsidiary, the Bank, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and to generally accepted practices within the banking industry. |
Segments | Segments While our chief decision maker monitors the revenue streams of the various banking products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Because the overall banking operations comprise substantially all of the consolidated operations, no separate segment disclosures are presented in the accompanying consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowance for loan losses may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Other estimates that are susceptible to significant change in the near term relate to the allowance for off-balance sheet credit losses, the fair value of stock-based compensation awards, the determination of other-than-temporary impairments of securities, and the fair value of financial instruments and goodwill. The ongoing COVID-19 pandemic has made certain estimates more challenging, including those discussed above, as the pandemic is unprecedented in recent history, continues to evolve, and its future effects are impossible to predict with any certainty. |
Investment Securities | Investment Securities The Company’s investments in securities are accounted for in accordance with applicable guidance contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), which requires the classification of securities into one of the following categories: • Securities to be held to maturity (“HTM”): bonds, notes, and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. • Securities available for sale (“AFS”): available for sale securities consist of bonds, notes, and debentures that are available to meet the Company’s operating needs. These securities are reported at fair value. Unrealized holding gains and losses, net of tax, on available for sale securities are reported as a net amount in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses on the sale of debt and equity securities are determined using the specific-identification method and average price method, respectively. The Company follows FASB guidance related to the recognition and presentation of other-than-temporary impairment. The guidance specifies that if an entity does not have the intent to sell a debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not that the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. |
Loans | Loans The Company’s loan portfolio categories include real estate, commercial and consumer loans. Real estate loans are further categorized into construction and development, one-to-four family residential, multifamily, farmland and commercial real estate loans. The consumer loan category includes loans originated through indirect lending. Indirect lending, which is lending initiated through third-party business partners, is largely comprised of loans made through automotive dealerships. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the unpaid principal balance outstanding, net of purchase premiums or discounts, deferred income (net of costs), any direct principal charge-offs, and an allowance for loan losses. Interest on loans is calculated by using the effective interest rate on daily balances of the principal amount outstanding. Loan origination fees, net of direct loan origination costs, and commitment fees, are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are ordinarily placed on nonaccrual when a loan is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more; however, management may elect to continue the accrual when the estimated net realizable value of collateral is sufficient to cover the principal balance and the accrued interest. Any unpaid interest previously accrued on nonaccrual loans is reversed from income. Interest income, generally, is not recognized on specific impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are applied as a reduction of the loan principal balance. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period of repayment performance by the borrower. The Company considers a loan to be impaired when, based upon current information and events, it believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The Company’s impaired loans include troubled debt restructurings (“TDRs”) and performing and non-performing loans for which full payment of principal or interest is not expected. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. The Company calculates an allowance required for impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of its collateral. If the recorded investment in the impaired loan exceeds the measure of fair value, a valuation allowance is required as a component of the allowance for loan losses. Changes to the valuation allowance are recorded as a component of the provision for loan losses. See Treatment of Loan Modifications Pursuant to the CARES Act and Interagency Statement under Accounting Standards Adopted in 2020 below for further discussion on the accounting treatment for loans. |
Allowance for Loan Losses | Allowance for Loan Losses The adequacy of the allowance for loan losses is determined in accordance with GAAP. The allowance for loan losses is estimated through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the loan balance is uncollectable. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount that management believes will be adequate to absorb probable losses inherent in the loan portfolio as of the balance sheet date based on evaluations of the collectability of loans and prior loan loss experience. The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrower’s ability to pay. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Allowances for impaired loans are generally determined based on collateral values or the present value of estimated cash flows. Credits deemed uncollectible are charged to the allowance. Provisions for loan losses and recoveries on loans previously charged off are adjusted to the allowance. Past due status is determined based on contractual terms. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. Based on management’s review and observations made through qualitative review, management may apply qualitative adjustments to determine loss estimates at a group and/or portfolio segment level as deemed appropriate. Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in its portfolio and portfolio segments. The Company utilizes an internally developed model that requires judgment to determine the estimation method that fits the credit risk characteristics of the loans in its portfolio and portfolio segments. Qualitative and environmental factors that may not be directly reflected in quantitative estimates include: asset quality trends, changes in loan concentrations, new products and process changes, changes and pressures from competition, changes in lending policies and underwriting practices, trends in the nature and volume of the loan portfolio, changes in experience and depth of lending staff and management and national and regional economic trends. The Company also considers third party or comparable company loss data. Changes in these factors are considered in determining changes in the allowance for loan losses. The impact of these factors on the Company’s qualitative assessment of the allowance for loan losses can change from period to period based on management’s assessment of the extent to which these factors are already reflected in historic loss rates. The uncertainty inherent in the estimation process is also considered in evaluating the allowance for loan losses. |
Equity Securities | Equity SecuritiesThe Company is a member of the Federal Home Loan Bank (“FHLB”) system. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, is restricted as to redemption, and is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Equity securities also include investments in our other correspondent banks including Independent Bankers Financial Corporation (“IBFC”) and First National Bankers Bank (“FNBB”) stock. These investments are carried at cost which approximates fair value. |
Bank Premises and Equipment | Bank Premises and Equipment Bank premises and equipment are stated at cost, less accumulated depreciation, with the exception of land, which is stated at cost. Depreciation expense is computed using the straight-line method and is charged to expense over the estimated useful lives of 39 years for buildings, five three one |
Other Real Estate Owned | Other Real Estate Owned Real estate acquired through foreclosure, or other real estate owned on the consolidated balance sheets, is initially recorded at fair value at the time of foreclosure, less estimated selling cost, and any related write down is charged to the allowance for loan losses. Valuations are periodically performed by management and provisions for estimated losses on other real estate owned are charged to expense when fair value is determined to be less than the carrying value. Costs relative to the development and improvement of properties are capitalized to the extent realizable, whereas ordinary upkeep disbursements are charged to expense. The ability of the Company to recover the carrying value of real estate is based upon future sales of the other real estate owned. The ability to affect such sales is subject to market conditions and other factors, many of which are beyond the Company’s control. Operating income and expense of such properties is included in other operating income or expense, respectively, on the accompanying consolidated statements of income. Gain or loss on the disposition of such properties is included in noninterest income on the consolidated statements of income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill and other intangible assets deemed to have an indefinite useful life are not amortized but instead are subject to review for impairment annually, or more frequently if deemed necessary, in accordance with the provisions of FASB ASC Topic 350, Intangibles – Goodwill and Other . Intangible assets with estimable useful lives are amortized over their respective estimated useful lives and reviewed for impairment in accordance with FASB ASC Topic 360, Property, Plant, and Equipment. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company invests in bank owned life insurance (“BOLI”) policies that provide earnings to help cover the cost of employee benefit plans. The Company is the owner and beneficiary of the life insurance policies it purchased directly on a chosen group of employees. The policies are carried on the Company’s consolidated balance sheet at their cash surrender value and are subject to regulatory capital requirements. The determination of the cash surrender value includes a full evaluation of the contractual terms of each policy and assumes the surrender of policies on an individual-life by individual-life basis. Additionally, the Company periodically reviews the creditworthiness of the insurance companies that have underwritten the policies. Earnings accruing to the Company are derived from the general account investments of the insurance companies. Increases in the net cash surrender value of BOLI policies and insurance proceeds received are not taxable and are recorded in noninterest income in the consolidated statements of income. |
Repurchase Agreements | Repurchase Agreements Securities sold under agreements to repurchase are secured borrowings treated as financing activities and are carried at the amounts at which the securities will be subsequently reacquired as specified in the respective agreements. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC Topic 718, Compensation - Stock Compensation |
Off-Balance Sheet Credit-Related Financial Instruments | Off-Balance Sheet Credit-Related Financial Instruments The Company accounts for its guarantees in accordance with the provisions of ASC Topic 460, Guarantees . In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card agreements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. |
Derivative Financial Instruments | Derivative Financial Instruments ASC Topic 815, Derivatives and Hedging , requires that all derivatives be recognized as assets or liabilities in the balance sheet at fair value. Derivatives executed with the same counterparty are generally subject to master netting arrangements, however, fair value amounts recognized for derivative financial instruments and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. In the course of its business operations, the Company is exposed to certain risks, including interest rate, liquidity and credit risk. The Company manages its risks through the use of derivative financial instruments, primarily through management of exposure due to the receipt or payment of future cash amounts based on interest rates. The Company’s derivative financial instruments manage the differences in the timing, amount and duration of expected cash receipts and payments. Derivatives which are designated and qualify as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. The effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. The ineffective portion of the gain or loss is reported in earnings immediately. In applying hedge accounting for derivatives, the Company establishes a method for assessing the effectiveness of the hedging derivative and a measurement approach for determining the ineffective aspect of the hedge upon the inception of the hedge. These methods are consistent with the Company’s approach to managing risk. Note 13, Derivative Financial Instruments, describes the derivative instruments currently used by the Company and discloses how these derivatives impact the Company’s financial position and results of operations. |
Income Taxes | Income Taxes The provision for income taxes is based on amounts reported in the consolidated statements of income after exclusion of nontaxable income such as interest on state and municipal securities. Also, certain items of income and expenses are recognized in different time periods for financial statement purposes than for income tax purposes. Thus, provisions for deferred taxes are recorded in recognition of such temporary differences. Deferred taxes are determined utilizing a liability method whereby deferred tax assets are recognized for deductible temporary differences 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 bases. 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 adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company has adopted accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The Company recognizes interest and penalties on income taxes as a component of income tax expense. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in the consolidated statements of income as it is earned and when collectability is reasonably assured. The primary source of revenue is interest income from interest-earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest-earning assets is based upon formulas from underlying loan agreements, securities contracts, or other similar contracts. Noninterest income is recognized on the accrual basis of accounting as services are provided or as transactions occur. Noninterest income includes fees from deposit accounts, merchant services, ATM and debit card fees, servicing fees, interchange fees, and other miscellaneous services and transactions. |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share separately for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities (i.e. unvested time-vested restricted stock), not subject to performance based measures. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options and warrants) were issued during the period, computed using the treasury stock method. |
Statements of Cash Flows | Statements of Cash Flows For purposes of the statements of cash flows, cash and cash equivalents include cash and amounts due from banks and federal funds sold due to the short-term nature of these items. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income and other comprehensive income or loss, which in the case of the Company includes unrealized gains and losses on securities and changes in the fair value of interest rate swaps, net of related income taxes. |
Troubled Debt Restructurings | Troubled Debt Restructurings The Company periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and minimize the risk of loss. These concessions may include restructuring the terms of a customer loan, thereby adjusting the customer’s payment requirements. In accordance with the FASB’s Accounting Standards Update (“ASU”) 2011-2, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring , in order to be considered a troubled debt restructuring (a “TDR”), the Company must conclude that the restructuring constitutes a concession and the customer is experiencing financial difficulties. The Company defines a concession to a customer as a modification of existing loan terms for economic or legal reasons that it would otherwise not consider. Concessions are typically granted through an agreement with the customer or are imposed by a court of law. Concessions include modifying original loan terms to reduce or defer cash payments required as part of the loan agreement, including but not limited to a reduction of the stated interest rate for the remaining original life of the debt, an extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk characteristics, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest receivable on a debt. In its determination of whether the customer is experiencing financial difficulties, the Company considers numerous indicators, including but not limited to, whether the customer has declared or is in the process of declaring bankruptcy, whether there is substantial doubt about the customer’s ability to continue as a going concern, whether the Company believes the customer’s future cash flows will be insufficient to service the debt in accordance with the contractual terms of the existing agreement for the foreseeable future, and whether without modification the customer cannot obtain sufficient funds from other sources at an effective interest rate equal to the current market rate for similar debt for a non-troubled debtor. If the Company concludes that both a concession has been granted and the concession was granted to a customer experiencing financial difficulties, the Company identifies the loan as a TDR. For purposes of the determination of an allowance for loan losses on these TDRs, the loan is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology. If it is determined that losses are probable on such TDRs, either because of delinquency or other credit quality indicators, the Company establishes specific reserves for these loans. |
Acquisition Accounting | Acquisition Accounting Acquisitions are accounted for under the purchase method of accounting. Purchased assets and assumed liabilities are recorded at their respective acquisition date fair values, and identifiable intangible assets are recorded at fair value. If the consideration given exceeds the fair value of the net assets received, goodwill is recognized. If the fair value of the net assets received exceeds the consideration given, a bargain purchase gain is recognized. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. |
Acquired Impaired Loans | Acquired Impaired Loans The Company accounts for acquired impaired loans under FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). An acquired loan is considered impaired when there is evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will be unable to collect all contractually required payments. For acquired impaired loans, the Company (a) calculates the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (b) estimates the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). Under ASC 310-30, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the acquired impaired loan portfolio, and such amount is subject to change over time based on the performance of such loans. The excess of expected cash flows at acquisition over the initial fair value of acquired impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. As required by ASC 310-30, the Company periodically re-estimates the expected cash flows to be collected over the life of the acquired impaired loans. Improvements in expected cash flows over those originally estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in the amount and changes in the timing of expected cash flows compared to those originally estimated decrease the accretable yield and usually result in a provision for loan losses and the establishment of an allowance for loan losses with respect to the acquired impaired loan. The carrying value of acquired impaired loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. If future cash flows are not reasonably estimable, the Company accounts for the acquired loans using the cash basis method. |
Share Repurchases | Share Repurchases The Louisiana Business Corporation Act does not include the concept of treasury stock. Rather, shares purchased by the Company constitute authorized but unissued shares. Accounting principles generally accepted in the United States of America state that accounting for treasury stock shall conform to state law. The Company’s consolidated financial statements as of December 31, 2020, 2019 and 2018 reflect this change. The cost of shares purchased by the Company has been allocated to common stock and surplus balances. |
Reclassifications | ReclassificationsCertain reclassifications have been made to the 2019 and 2018 financial statements to conform to the 2020 presentation. |
Impact Of New Accounting Pronouncements and Recent Accounting Pronouncements | Accounting Standards Adopted in 2020 FASB ASC Topic 820 “Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” Update No. 2018-13 . ASU 2018-13 became effective for the Company on January 1, 2020. The ASU modifies the existing guidance on disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. ASU 2018-13 removes the disclosure requirement detailing the amount of and reasons for transfers between Level 1 and Level 2 and the valuation processes for Level 3 fair value measurements. In addition, this ASU modifies the disclosure requirement for investments in certain entities that calculate net asset value. Lastly, ASU 2018-13 adds a disclosure requirement for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. The impact of these amendments is limited to presentation and disclosure changes that did not have an impact on the Company’s consolidated financial statements. FASB ASC Topic 350 “Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment” ASU No. 2017-04. ASU 2017-04 became effective for the Company on January 1, 2020. The ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Therefore, any carrying amount which exceeds the reporting unit’s fair value, up to the amount of goodwill recorded, will be recognized as an impairment loss. The amendment will be applied prospectively on or after the effective date. Based on recent annual goodwill impairments tests, performed in the fourth quarter of each year, which did not require the application of Step 2, the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. Prolonged continuation of the COVID-19 pandemic, or any other event that harms the global or U.S. economies or the economies of the regions in which our business is concentrated, could adversely affect our operations and negatively impact our financial condition and results of operations, which may require further evaluation in subsequent reporting periods, in addition to our annual impairment test performed in the fourth quarter of each year, and could result in an impairment charge. Treatment of Loan Modifications Pursuant to the CARES Act and Interagency Statement Section 4013 of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) enacted on March 27, 2020 provides that from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 pandemic declared by the President of the United States under the National Emergencies Act terminates (the “applicable period”), we may elect to suspend GAAP for loan modifications related to the pandemic that would otherwise be categorized as TDRs and suspend any determination of a loan modified as a result of the effects of the pandemic as being a TDR, including impairment for accounting purposes. The suspension is applicable for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. The suspension is not applicable to any adverse impact on the credit of a borrower that is not related to the pandemic. Legislation enacted on December 27, 2020 extended this relief to the earlier of January 1, 2022 or 60 days after the national emergency termination date. In addition, our banking regulators and other financial regulators, on March 22, 2020 and revised April 7, 2020, issued a joint interagency statement titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the COVID-19 pandemic. Pursuant to the interagency statement, loan modifications that do not meet the conditions of Section 4013 of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. Specifically, the agencies confirmed with the staff of the FASB that short-term modifications made in good faith in response to the pandemic to borrowers who were current prior to any relief are not TDRs under GAAP. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. Appropriate allowances for loan and lease losses are expected to be maintained. With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to the pandemic as past due because of the deferral. The interagency statement also states that during short-term pandemic-related loan modifications, these loans generally should not be reported as nonaccrual. Recent Accounting Pronouncements This section briefly describes accounting standards that have been issued, but are not yet adopted, that could impact the Company’s financial statements. FASB ASC Topic 326 “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” Update No. 2016-13. The FASB issued ASU No. 2016-13 in June 2016. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements. In that regard, we have formed a cross-functional working group, under the direction of our Chief Financial Officer and our Chief Risk Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology. We have developed an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. We have also selected a third-party vendor solution to assist us in the application of ASU 2016-13. The adoption of ASU 2016-13 is likely to result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses on debt securities. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios, as well as the prevailing economic conditions and forecasts, as of the adoption date. This amendment was originally effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In July 2019, the FASB proposed changes that would delay the effective date for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. In October 2019, the FASB voted in favor of finalizing its proposal to delay the effective date of this standard to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. ASU 2016-13 will be effective for the Company on January 1, 2023. The Company expects to adopt the standard as soon as practicable, based upon progress on the implementation plan. Adoption prior to the revised effective date of January 1, 2023 is permitted by the ASU. FASB ASC Topics 321, 323, and 815 “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)” Update No. 2020-01. In January 2020, the FASB issued ASU 2020-01 to clarify the interaction among ASC 321, ASC 323, and ASC 815 for equity securities, equity method investments, and certain financial instruments to acquire equity securities. ASU 2020-01 clarifies whether re-measurement of equity investments is appropriate when observable transactions cause the equity method to be triggered or discontinued. ASU 2020-01 also provides that certain forward contracts and purchased options to acquire equity securities will be measured under ASC 321 without an assessment of subsequent accounting upon settlement or exercise. The amendment is effective for the Company on January 1, 2021. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below shows the allocation of the consideration paid for Mainland’s common equity to the acquired identifiable assets and liabilities assumed and the goodwill generated from the transaction (dollars in thousands). Purchase price: Stock issued $ 18,637 Fair value of assets acquired: Cash and cash equivalents 38,365 Loans 81,336 Other real estate owned 1,507 Bank premises and equipment 2,550 Core deposit intangible asset 2,439 Other assets 1,414 Total assets acquired 127,611 Fair value of liabilities acquired: Deposits 107,646 Repurchase agreements 4,684 Other liabilities 1,883 Total liabilities assumed 114,213 Fair value of net assets acquired 13,398 Goodwill $ 5,239 The table below shows the allocation of the consideration paid for Bank of York’s common equity to the acquired identifiable assets and liabilities assumed and the goodwill generated from the transaction (dollars in thousands). Purchase price: Cash paid $ 15,000 Fair value of assets acquired: Cash and cash equivalents 50,776 Investments 451 Loans 46,086 Bank premises and equipment 917 Core deposit intangible asset 931 Bank owned life insurance 2,429 Other assets 344 Total assets acquired 101,934 Fair value of liabilities acquired: Deposits 85,004 Repurchase agreements 5,641 Other liabilities 1,306 Total liabilities assumed 91,951 Fair value of net assets acquired 9,983 Goodwill $ 5,017 The table below shows the allocation of the consideration paid for certain assets, deposits and other liabilities associated with the Alice and Victoria, Texas locations of PlainsCapital and the goodwill generated from the transaction (dollars in thousands). The fair values listed below, primarily related to loans and deferred tax assets and liabilities, are subject to refinement for up to one year after the closing date of the acquisition as additional information becomes available. Purchase price: Cash paid $ 11,162 Fair value of assets acquired: Cash and cash equivalents 353 Loans 45,299 Bank premises and equipment 2,770 Core deposit intangible asset 170 Other assets 163 Total assets acquired 48,755 Fair value of liabilities acquired: Deposits 36,973 Other liabilities 1,084 Total liabilities assumed 38,057 Fair value of net assets acquired 10,698 Goodwill $ 464 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Approximate Fair Value of Investment Securities Classified as Available for Sale | The amortized cost and approximate fair value of investment securities classified as AFS are summarized below as of the dates presented (dollars in thousands). December 31, 2020 Amortized Gross Gross Fair Obligations of U.S. government agencies and corporations $ 36,648 $ 201 $ (28) $ 36,821 Obligations of state and political subdivisions 21,650 490 (3) 22,137 Corporate bonds 27,583 348 (223) 27,708 Residential mortgage-backed securities 119,934 2,675 (11) 122,598 Commercial mortgage-backed securities 58,098 1,202 (154) 59,146 Total $ 263,913 $ 4,916 $ (419) $ 268,410 December 31, 2019 Amortized Gross Gross Fair Obligations of U.S. government agencies and corporations $ 33,651 $ 100 $ (100) $ 33,651 Obligations of state and political subdivisions 32,920 541 (12) 33,449 Corporate bonds 19,245 192 (274) 19,163 Residential mortgage-backed securities 100,948 1,083 (85) 101,946 Commercial mortgage-backed securities 71,340 564 (308) 71,596 Total $ 258,104 $ 2,480 $ (779) $ 259,805 |
Schedule of Proceeds from Sale of Investment Securities | Proceeds from sales of investment securities AFS and gross realized gains and losses are summarized below for the periods presented (dollars in thousands). Twelve months ended December 31, 2020 2019 2018 Proceeds from sales $ 56,466 $ 65,834 $ 7,021 Gross gains $ 2,300 $ 608 $ 35 Gross losses $ (11) $ (346) $ (21) |
Schedule of Amortized Cost and Approximate Fair Value of Investment Securities Classified as Held to Maturity | The amortized cost and approximate fair value of investment securities classified as HTM are summarized below as of the dates presented (dollars in thousands). December 31, 2020 Amortized Gross Gross Fair Obligations of state and political subdivisions $ 8,225 $ 12 $ — $ 8,237 Residential mortgage-backed securities 4,209 203 — 4,412 Total $ 12,434 $ 215 $ — $ 12,649 December 31, 2019 Amortized Gross Gross Fair Obligations of state and political subdivisions $ 9,487 $ 14 $ — $ 9,501 Residential mortgage-backed securities 4,922 57 — 4,979 Total $ 14,409 $ 71 $ — $ 14,480 |
Schedule of Unrealized Losses and Fair Value by Investment Category for Securities Available for Sale | The number of AFS securities, fair value, and unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized below as of the dates presented (dollars in thousands). There were no HTM securities in a continuous loss position as of December 31, 2020 or December 31, 2019. Less than 12 Months 12 Months or More Total December 31, 2020 Count Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Obligations of U.S. government agencies and corporations 12 $ 9,080 $ (19) $ 4,043 $ (9) $ 13,123 $ (28) Obligations of state and political subdivisions 4 505 (3) 204 — 709 (3) Corporate bonds 22 6,970 (133) 2,559 (90) 9,529 (223) Residential mortgage-backed securities 6 11,070 (11) — — 11,070 (11) Commercial mortgage-backed securities 26 6,921 (57) 7,965 (97) 14,886 (154) Total 70 $ 34,546 $ (223) $ 14,771 $ (196) $ 49,317 $ (419) Less than 12 Months 12 Months or More Total December 31, 2019 Count Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Obligations of U.S. government agencies and corporations 21 $ 19,980 $ (94) $ 955 $ (6) $ 20,935 $ (100) Obligations of state and political subdivisions 10 212 (1) 371 (11) 583 (12) Corporate bonds 21 495 (5) 7,829 (269) 8,324 (274) Residential mortgage-backed securities 32 12,341 (56) 6,190 (29) 18,531 (85) Commercial mortgage-backed securities 57 29,072 (274) 2,516 (34) 31,588 (308) Total 141 $ 62,100 $ (430) $ 17,861 $ (349) $ 79,961 $ (779) |
Schedule of Weighted Average Tax Equivalent Yield, Amortized Cost and Approximate Fair Value of Investment Debt Securities by Contractual Maturity (Including Mortgage-backed Securities) | The amortized cost and approximate fair value of investment debt securities, by contractual maturity (including mortgage-backed securities), are shown below as of the dates presented (dollars in thousands). Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available For Sale Securities Held to Maturity December 31, 2020 Amortized Fair Amortized Fair Due within one year $ 1,669 $ 1,691 $ 830 $ 832 Due after one year through five years 12,937 13,014 2,745 2,751 Due after five years through ten years 64,159 64,865 4,650 4,654 Due after ten years 185,148 188,840 4,209 4,412 Total debt securities $ 263,913 $ 268,410 $ 12,434 $ 12,649 Securities Available For Sale Securities Held to Maturity December 31, 2019 Amortized Fair Amortized Fair Due within one year $ 2,174 $ 2,175 $ 790 $ 792 Due after one year through five years 13,525 13,675 3,575 3,582 Due after five years through ten years 66,551 66,568 5,122 5,126 Due after ten years 175,854 177,387 4,922 4,980 Total debt securities $ 258,104 $ 259,805 $ 14,409 $ 14,480 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio Excluding Loans Held for Sale | The Company’s loan portfolio consists of the following categories of loans as of the dates presented (dollars in thousands). December 31, 2020 2019 Construction and development $ 206,011 $ 197,797 1-4 Family 339,525 321,489 Multifamily 60,724 60,617 Farmland 26,547 27,780 Commercial real estate 812,395 731,060 Total mortgage loans on real estate 1,445,202 1,338,743 Commercial and industrial 394,497 323,786 Consumer 20,619 29,446 Total loans $ 1,860,318 $ 1,691,975 |
Schedule of Aging Analysis of Loans | The tables below provide an analysis of the aging of loans as of the dates presented (dollars in thousands). December 31, 2020 Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Past Acquired Impaired Loans Total Loans Construction and development $ 205,002 $ 488 $ — $ — $ 521 $ 1,009 $ — $ 206,011 1-4 Family 335,710 1,085 734 — 1,615 3,434 381 339,525 Multifamily 60,724 — — — — — — 60,724 Farmland 24,333 297 — 216 — 513 1,701 26,547 Commercial real estate 807,243 1,472 118 — 1,771 3,361 1,791 812,395 Total mortgage loans on real estate 1,433,012 3,342 852 216 3,907 8,317 3,873 1,445,202 Commercial and industrial 386,607 359 273 105 6,907 7,644 246 394,497 Consumer 20,135 79 21 — 346 446 38 20,619 Total loans $ 1,839,754 $ 3,780 $ 1,146 $ 321 $ 11,160 $ 16,407 $ 4,157 $ 1,860,318 December 31, 2019 Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Past Acquired Impaired Loans Total Loans Construction and development $ 197,318 $ 133 $ 32 $ — $ 314 $ 479 $ — $ 197,797 1-4 Family 317,572 998 413 138 1,923 3,472 445 321,489 Multifamily 60,617 — — — — — — 60,617 Farmland 25,516 — — — — — 2,264 27,780 Commercial real estate 727,423 1,193 14 657 141 2,005 1,632 731,060 Total mortgage loans on real estate 1,328,446 2,324 459 795 2,378 5,956 4,341 1,338,743 Commercial and industrial 323,446 171 19 — 137 327 13 323,786 Consumer 28,443 339 95 — 531 965 38 29,446 Total loans $ 1,680,335 $ 2,834 $ 573 $ 795 $ 3,046 $ 7,248 $ 4,392 $ 1,691,975 |
Summary of the Company's Loan Portfolio by Credit Quality Indicator | The tables below present a summary of the Company’s loan portfolio by category and credit quality indicator as of the dates presented (dollars in thousands). December 31, 2020 Pass Special Substandard Doubtful Total Construction and development $ 198,139 $ 7,352 $ 520 $ — $ 206,011 1-4 Family 337,829 — 1,696 — 339,525 Multifamily 60,724 — — — 60,724 Farmland 24,846 — 1,701 — 26,547 Commercial real estate 801,244 4,729 6,422 — 812,395 Total mortgage loans on real estate 1,422,782 12,081 10,339 — 1,445,202 Commercial and industrial 379,451 4,794 9,343 909 394,497 Consumer 20,235 — 384 — 20,619 Total loans $ 1,822,468 $ 16,875 $ 20,066 $ 909 $ 1,860,318 December 31, 2019 Pass Special Substandard Doubtful Total Construction and development $ 196,873 $ 610 $ 314 $ — $ 197,797 1-4 Family 318,549 714 2,198 28 321,489 Multifamily 60,617 — — — 60,617 Farmland 25,516 — 2,264 — 27,780 Commercial real estate 729,921 — 1,139 — 731,060 Total mortgage loans on real estate 1,331,476 1,324 5,915 28 1,338,743 Commercial and industrial 318,519 2,910 2,264 93 323,786 Consumer 28,775 128 543 — 29,446 Total loans $ 1,678,770 $ 4,362 $ 8,722 $ 121 $ 1,691,975 |
Schedule of Aggregate Amount of Loans to Related Parties | The table below shows the aggregate principal balance of loans to such related parties for the years ended December 31, 2020 and 2019 (dollars in thousands). December 31, 2020 2019 Balance, beginning of period $ 98,093 $ 93,021 New loans/changes in relationship 12,443 20,903 Repayments/changes in relationship (14,146) (15,831) Balance, end of period $ 96,390 $ 98,093 |
Summary of Allowance for Loan Losses | The table below shows a summary of the activity in the allowance for loan losses for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands). December 31, 2020 2019 2018 Balance, beginning of period $ 10,700 $ 9,454 $ 7,891 Provision for loan losses 11,160 1,908 2,570 Loans charged-off (1,754) (800) (1,185) Recoveries 257 138 178 Balance, end of period $ 20,363 $ 10,700 $ 9,454 |
Allowance for Loan Loss Activity by Collateral Type | The following tables outline the activity in the allowance for loan losses by collateral type for the years ended December 31, 2020, 2019 and 2018, and show both the allowance and portfolio balances for loans individually and collectively evaluated for impairment as of December 31, 2020, 2019 and 2018 (dollars in thousands). December 31, 2020 Construction & Farmland 1-4 Family Multifamily Commercial Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 1,201 $ 101 $ 1,490 $ 387 $ 4,424 $ 2,609 $ 488 $ 10,700 Charge-offs — — (173) — (51) (1,195) (335) (1,754) Recoveries 47 — 74 — 8 50 78 257 Provision 1,127 334 1,979 202 4,115 3,094 309 11,160 Ending balance $ 2,375 $ 435 $ 3,370 $ 589 $ 8,496 $ 4,558 $ 540 $ 20,363 Ending allowance balance for loans individually evaluated for impairment — — — — — 80 130 210 Ending allowance balance for loans acquired with deteriorated credit quality — 210 — — — — — 210 Ending allowance balance for loans collectively evaluated for impairment 2,375 225 3,370 589 8,496 4,478 410 19,943 Loans receivable: Balance of loans individually evaluated for impairment 782 — 2,280 — 6,666 9,102 347 19,177 Balance of loans acquired with deteriorated credit quality — 1,701 381 — 1,791 246 38 4,157 Balance of loans collectively evaluated for impairment 205,229 24,846 336,864 60,724 803,938 385,149 20,234 1,836,984 Total period-end balance $ 206,011 $ 26,547 $ 339,525 $ 60,724 $ 812,395 $ 394,497 $ 20,619 $ 1,860,318 December 31, 2019 Construction & Farmland 1-4 Family Multifamily Commercial Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 1,038 $ 81 $ 1,465 $ 331 $ 4,182 $ 1,641 $ 716 $ 9,454 Charge-offs (51) — (62) — (24) (252) (411) (800) Recoveries 27 — 27 — 1 26 57 138 Provision 187 20 60 56 265 1,194 126 1,908 Ending balance $ 1,201 $ 101 $ 1,490 $ 387 $ 4,424 $ 2,609 $ 488 $ 10,700 Ending allowance balance for loans individually evaluated for impairment — — — — — — 141 141 Ending allowance balance for loans acquired with deteriorated credit quality — — — — — — — — Ending allowance balance for loans collectively evaluated for impairment 1,201 101 1,490 387 4,424 2,609 347 10,559 Loans receivable: Balance of loans individually evaluated for impairment 247 — 1,662 — 47 93 498 2,547 Balance of loans acquired with deteriorated credit quality — 2,264 445 — 1,632 13 38 4,392 Balance of loans collectively evaluated for impairment 197,550 25,516 319,382 60,617 729,381 323,680 28,910 1,685,036 Total period-end balance $ 197,797 $ 27,780 $ 321,489 $ 60,617 $ 731,060 $ 323,786 $ 29,446 $ 1,691,975 December 31, 2018 Construction & Farmland 1-4 Family Multifamily Commercial Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 945 $ 60 $ 1,287 $ 332 $ 3,599 $ 693 $ 975 $ 7,891 Charge-offs (24) — (167) — — (481) (513) (1,185) Recoveries 12 — 29 — — 55 82 178 Provision 105 21 316 (1) 583 1,374 172 2,570 Ending balance $ 1,038 $ 81 $ 1,465 $ 331 $ 4,182 $ 1,641 $ 716 $ 9,454 Ending allowance balance for loans individually evaluated for impairment — — — — — — 236 236 Ending allowance balance for loans acquired with deteriorated credit quality — — — — — — — — Ending allowance balance for loans collectively evaluated for impairment 1,038 81 1,465 331 4,182 1,641 480 9,218 Loans receivable: Balance of loans individually evaluated for impairment 339 — 1,177 — 761 76 916 3,269 Balance of loans acquired with deteriorated credit quality 13 2,264 490 — 2,011 1,195 44 6,017 Balance of loans collectively evaluated for impairment 157,594 19,092 285,470 50,501 624,232 209,653 44,997 1,391,539 Total period-end balance $ 157,946 $ 21,356 $ 287,137 $ 50,501 $ 627,004 $ 210,924 $ 45,957 $ 1,400,825 |
Schedule of Aging Analysis of Loans | The following tables contain information on the Company’s impaired loans, which include TDRs, discussed in more detail below, and nonaccrual loans individually evaluated for impairment for purposes of determining the allowance for loan losses. The average balances are calculated based on the month-end balances of the loans during the period reported (dollars in thousands). As of and for the year ended December 31, 2020 Recorded Unpaid Related Average Interest With no related allowance recorded: Construction and development $ 782 $ 800 $ — $ 887 $ 13 1-4 Family 2,280 2,353 — 2,172 26 Commercial real estate 6,666 6,721 — 3,456 126 Total mortgage loans on real estate 9,728 9,874 — 6,515 165 Commercial and industrial 8,841 9,953 — 4,614 31 Consumer 126 143 — 227 1 Total 18,695 19,970 — 11,356 197 With related allowance recorded: Commercial and industrial 261 260 80 22 — Consumer 221 265 130 256 1 Total 482 525 210 278 1 Total loans: Construction and development 782 800 — 887 13 1-4 Family 2,280 2,353 — 2,172 26 Commercial real estate 6,666 6,721 — 3,456 126 Total mortgage loans on real estate 9,728 9,874 — 6,515 165 Commercial and industrial 9,102 10,213 80 4,636 31 Consumer 347 408 130 483 2 Total $ 19,177 $ 20,495 $ 210 $ 11,634 $ 198 As of and for the year ended December 31, 2019 Recorded Unpaid Related Average Interest With no related allowance recorded: Construction and development $ 247 $ 269 $ — $ 328 $ 14 1-4 Family 1,662 1,745 — 1,507 32 Multifamily — — — 36 — Commercial real estate 47 50 — 700 7 Total mortgage loans on real estate 1,956 2,064 — 2,571 53 Commercial and industrial 93 96 — 33 — Consumer 188 205 — 328 — Total 2,237 2,365 — 2,932 53 With related allowance recorded: Consumer 310 347 141 324 — Total 310 347 141 324 — Total loans: Construction and development 247 269 — 328 14 1-4 Family 1,662 1,745 — 1,507 32 Multifamily — — — 36 — Commercial real estate 47 50 — 700 7 Total mortgage loans on real estate 1,956 2,064 — 2,571 53 Commercial and industrial 93 96 — 33 — Consumer 498 552 141 652 — Total $ 2,547 $ 2,712 $ 141 $ 3,256 $ 53 As of and for the year ended December 31, 2018 Recorded Unpaid Related Average Interest With no related allowance recorded: Construction and development $ 339 $ 359 $ — $ 237 $ 13 1-4 Family 1,177 1,180 — 1,455 39 Commercial real estate 761 777 — 878 20 Total mortgage loans on real estate 2,277 2,316 — 2,570 72 Commercial and industrial 76 77 — 278 — Consumer 215 237 — 410 — Total 2,568 2,630 — 3,258 72 With related allowance recorded: Consumer 701 738 236 588 — Total 701 738 236 588 — Total loans: Construction and development 339 359 — 237 13 1-4 Family 1,177 1,180 — 1,455 39 Commercial real estate 761 777 — 878 20 Total mortgage loans on real estate 2,277 2,316 — 2,570 72 Commercial and industrial 76 77 — 278 — Consumer 916 975 236 998 — Total $ 3,269 $ 3,368 $ 236 $ 3,846 $ 72 |
Summary of TDR Pre- and Post-modification Outstanding Recorded Investments by Loan Categories | The table below presents the TDR pre- and post-modification outstanding recorded investments by loan categories for loans modified during the years ended December 31, 2020 and 2019 (dollars in thousands). December 31, 2020 December 31, 2019 Troubled debt restructurings Number of Pre- Post- Number of Pre- Post- Construction and development 1 $ 64 $ 64 — $ — $ — Commercial Real Estate 8 5,833 5,833 — — — Commercial and industrial 9 7,729 7,729 — — — $ 13,626 $ 13,626 $ — $ — |
Summary of Accruing and Nonaccrual TDRs and Related Loan Losses by Portfolio Type | The following is a summary of accruing and nonaccrual TDRs and the related loan losses by portfolio type as of the dates presented (dollars in thousands). TDRs Accruing Nonaccrual Total Related December 31, 2020 Construction and development $ 262 $ — $ 262 $ — 1-4 Family 665 161 826 — Commercial real estate 4,895 938 5,833 — Commercial and industrial 2,195 5,534 7,729 — Total $ 8,017 $ 6,633 $ 14,650 $ — December 31, 2019 Construction and development $ 220 $ 287 $ 507 $ — 1-4 Family 800 176 976 — Total $ 1,020 $ 463 $ 1,483 $ — |
Summary of Average Recorded Investment and Interest Income Recognized for TDRs | The table below includes the average recorded investment and interest income recognized for TDRs for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands). TDRs Average Recorded Investment Interest Income Recognized December 31, 2020 Construction and development $ 438 $ 14 1-4 Family 936 35 Commercial real estate 2,778 126 Commercial and industrial 1,075 53 Total $ 5,227 $ 228 December 31, 2019 Construction and development $ 515 $ 14 1-4 Family 1,014 51 Commercial real estate 264 7 Commercial and industrial 2 — Total $ 1,795 $ 72 December 31, 2018 Construction and development $ 308 $ 13 1-4 Family 948 45 Commercial real estate 553 20 Commercial and industrial 8 — Consumer 2 — Total $ 1,819 $ 78 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate [Abstract] | |
Schedule of Activity in Other Real Estate Owned | The table below shows the activity in other real estate owned for the years ended December 31, 2020 and 2019 (dollars in thousands). December 31, 2020 2019 Balance, beginning of period $ 133 $ 3,611 Additions 41 181 Transfers from bank premises and equipment 665 — Acquired other real estate owned — 1,507 Sales of other real estate owned (146) (5,148) Write-downs (30) (18) Balance, end of period $ 663 $ 133 |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Bank Premises and Equipment | Bank premises and equipment consisted of the following as of the dates indicated (dollars in thousands). December 31, 2020 2019 Land $ 13,530 $ 13,851 Buildings and improvements 37,947 31,926 Furniture and equipment 13,196 10,915 Software 1,990 1,373 Construction-in-progress 1,619 1,974 Right-of-use asset 3,851 3,309 Less: Accumulated depreciation and amortization (15,830) (12,432) Bank premises and equipment, net $ 56,303 $ 50,916 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Quantitative Information Regarding Operating Leases | Quantitative information regarding the Company’s operating leases is presented below as of and for the years ended December 31, 2020 and 2019 (dollars in thousands). December 31, 2020 2019 Total operating lease cost $ 599 $ 341 Weighted-average remaining lease term (in years) 8.6 10.4 Weighted-average discount rate 2.8 % 3.1 % |
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases | Future minimum lease payments due under non-cancelable operating leases at December 31, 2020 are presented below (dollars in thousands). 2021 $ 593 2022 598 2023 595 2024 515 2025 476 Thereafter 1,691 Total $ 4,468 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Core Deposit Intangible Assets Activity | The table below shows a summary of the core deposit intangible assets as of the dates presented (dollars in thousands). December 31, Core deposit intangibles 2020 2019 Gross carrying amount $ 6,637 $ 6,467 Accumulated amortization (2,649) (1,664) Net carrying amount $ 3,988 $ 4,803 |
Finite-lived Intangible Assets, Future Amortization Expense | The future amortization schedule for the Company’s core deposit intangible assets is displayed in the table below. The weighted average amortization period remaining for core deposit intangibles is 7.8 years. (dollars in thousands) 2021 $ 882 2022 773 2023 663 2024 554 2025 444 Thereafter 672 $ 3,988 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Summary of Deposits | Deposits consisted of the following as of the dates presented (dollars in thousands). December 31, 2020 2019 Noninterest-bearing demand deposits $ 448,230 $ 351,905 Interest-bearing demand deposits 496,745 335,478 Brokered deposits 80,017 — Money market deposit accounts 186,307 198,999 Savings accounts 141,134 115,324 Time deposits 535,391 706,000 Total deposits $ 1,887,824 $ 1,707,706 |
Summary of Outstanding Time Deposits | The table below summarizes outstanding time deposits as of the dates indicated (dollars in thousands). December 31, 2020 2019 $0 to $99,999 $ 161,957 $ 225,951 $100,000 to $249,999 274,470 345,040 $250,000 and above 98,964 135,009 $ 535,391 $ 706,000 |
Schedule of Contractual Maturities of Time Deposits $100,000 or More Outstanding | The contractual maturities of time deposits of $100,000 or more outstanding are summarized in the table below as of the dates presented (dollars in thousands). December 31, 2020 2019 Time remaining until maturity: Three months or less $ 80,605 $ 92,157 Over three through six months 75,974 76,179 Over six through twelve months 111,879 200,654 Over one year through three years 94,178 95,495 Over three years 10,798 15,564 $ 373,434 $ 480,049 |
Schedule of Maturities of Time Deposits | The approximate scheduled maturities of time deposits for each of the next five years are shown below (dollars in thousands). 2021 $ 382,713 2022 103,488 2023 33,247 2024 10,785 2025 5,158 $ 535,391 |
OTHER BORROWED FUNDS (Tables)
OTHER BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Maturities and Weighted-Average Rate of FHLB Advances by Year of Maturity | FHLB advances and weighted average interest rates at the end of the period by contractual maturity are summarized as of the dates presented (dollars in thousands). Amount Weighted Average Rate December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Fixed rate advances maturing: 2020 $ — $ 53,100 — % 1.74 % 2021 42,000 — 0.11 — 2024 23,500 23,500 1.81 1.81 2028 25,000 25,000 1.77 1.77 2033 30,000 30,000 1.88 1.88 $ 120,500 $ 131,600 1.23 % 1.79 % |
Schedule of Junior Subordinated Debentures | The following table provides a summary of the Company’s junior subordinated debentures (dollars in thousands). Face Value Carrying Value Maturity Date Variable Interest Rate Interest Rate at December 31, 2020 First Community Louisiana Statutory Trust I $ 3,609 $ 3,609 June 2036 3-month LIBOR + 1.77% 1.99 % BOJ Bancshares Statutory Trust I 3,093 2,340 December 2034 3-month LIBOR + 1.90% 2.12 % $ 6,702 $ 5,949 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) Activity | Activity within the balances in accumulated other comprehensive income (loss), net is shown in the tables below (dollars in thousands). For the years ended December 31, 2020 2019 2018 Beginning of Period Net Change End of Period Beginning of Period Net Change End of Period Beginning of Period Net Change End of Period Unrealized gain (loss), available for sale, net $ 3,476 $ 4,017 $ 7,493 $ (1,647) $ 5,123 $ 3,476 $ (71) $ (1,576) $ (1,647) Reclassification of realized gain, net (2,131) (1,808) (3,939) (1,925) (206) (2,131) (1,914) (11) (1,925) Unrealized loss, transfer from available for sale to held to maturity, net 4 (1) 3 5 (1) 4 7 (2) 5 Change in fair value of interest rate swap designated as a cash flow hedge, net 542 (2,294) (1,752) 491 51 542 407 84 491 Accumulated other comprehensive income (loss) $ 1,891 $ (86) $ 1,805 $ (3,076) $ 4,967 $ 1,891 $ (1,571) $ (1,505) $ (3,076) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The table below summarizes the Company’s stock option activity for the periods indicated. Stock Options Shares Weighted Average Price Weighted Average Remaining Contractual Term (Years) Outstanding at December 31, 2017 322,917 $ 15.09 7.19 Granted 31,788 20.25 Forfeited (1,644) 14.00 Exercised (12,415) 14.07 Outstanding at December 31, 2018 340,646 15.98 6.49 Granted 36,984 24.40 Forfeited — — Exercised (20,416) 14.06 Outstanding at December 31, 2019 357,214 16.96 5.93 Granted 58,993 16.96 Forfeited (4,585) 21.36 Exercised (3,334) 14.00 Outstanding at December 31, 2020 408,288 17.66 5.57 Exercisable at December 31, 2020 276,855 15.67 4.47 |
Schedule of Assumptions Used for Option Awards Granted | The table below shows the assumptions used for the stock options granted during the years ended December 31, 2020 and 2019. 2020 2019 Dividend yield 1.12 % 0.82 % Expected volatility 26.39 % 27.26 % Risk-free interest rate 0.99 % 2.63 % Expected term (in years) 6.5 6.5 Weighted-average grant date fair value $ 5.17 $ 7.30 |
Time Vested Restricted Stock Award Activity | The following table summarizes the restricted stock and RSU activity for the years ended December 31, 2020 and December 31, 2019. December 31, 2020 2019 Shares Weighted Avg Grant Date Fair Value Shares Weighted Avg Grant Date Fair Value Balance, beginning of period 168,216 $ 22.43 135,848 $ 20.47 Granted 102,953 21.41 79,439 24.46 Forfeited (10,283) 22.16 (5,828) 23.70 Earned and issued (53,740) 21.29 (41,243) 19.65 Balance, end of period 207,146 $ 22.23 168,216 $ 22.43 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Expense for Income Taxes Included in Consolidated Statement of Operations | The income tax expense included in the consolidated statements of income is displayed in the table below for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands). December 31, 2020 2019 2018 Current $ 4,838 $ 3,966 $ 2,789 Deferred (1,388) 153 841 Total income tax expense $ 3,450 $ 4,119 $ 3,630 |
Summary of Provision for Federal Income Taxes Differs from that Computed by Applying the Federal Statutory Rate | The provision for federal income taxes differs from that computed by applying the federal statutory rate of 21% as indicated in the following analysis for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands). December 31, 2020 2019 2018 Tax based on statutory rate $ 3,641 $ 4,401 $ 3,619 Increase (decrease) resulting from: Effect of tax-exempt income (299) (250) (249) Acquisition costs — 32 29 Historical tax credits 29 6 6 Effect of tax rate change — — 338 State taxes 33 15 — Other 46 (85) (113) Total income tax expense $ 3,450 $ 4,119 $ 3,630 Effective rate 19.9 % 19.7 % 21.1 % |
Summary of Deferred Tax Assets and Liabilities | The net deferred tax liability or asset was comprised of the following items as of the dates indicated (dollars in thousands). December 31, 2020 2019 Deferred tax liabilities: Depreciation $ (3,746) $ (2,903) FHLB stock dividend (63) (122) Unrealized gain on available for sale securities (480) (502) Basis difference in acquired assets and liabilities (1,010) (1,123) Operating lease right-of-use asset (809) (695) Other (149) (88) Gross deferred tax liability (6,257) (5,433) Deferred tax assets: Allowance for loan losses 4,012 2,219 Net operating loss carryforward 440 564 Deferred compensation 404 372 Basis difference in acquired assets and liabilities 380 481 Historical tax credit — 155 Employee and director stock awards 524 419 Operating lease liability 828 709 Unearned loan fees 667 190 Other 362 229 Gross deferred tax assets 7,617 5,338 Net deferred tax asset (liability) $ 1,360 $ (95) |
FAIR VALUES OF FINANCIAL INST_2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below as of the dates indicated (dollars in thousands). Fair Value Quoted Prices in Significant Other Significant December 31, 2020 Assets: Obligations of U.S. government agencies and corporations $ 36,821 $ — $ 36,821 $ — Obligations of state and political subdivisions 22,137 — 3,621 18,516 Corporate bonds 27,708 — 27,708 — Residential mortgage-backed securities 122,598 — 122,598 — Commercial mortgage-backed securities 59,146 — 59,146 — Equity securities 1,670 1,670 — — Total assets $ 270,080 $ 1,670 $ 249,894 $ 18,516 Liabilities: Derivative financial instruments $ 2,216 $ — $ 2,216 $ — December 31, 2019 Assets: Obligations of U.S. government agencies and corporations $ 33,651 $ — $ 33,651 $ — Obligations of state and political subdivisions 33,449 — 14,074 19,375 Corporate bonds 19,163 — 19,163 — Residential mortgage-backed securities 101,946 — 101,946 — Commercial mortgage-backed securities 71,596 — 71,596 — Equity securities 2,097 2,097 — — Derivative financial instruments 687 — 687 — Total assets $ 262,589 $ 2,097 $ 241,117 $ 19,375 |
Summary of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The table below provides a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or level 3 inputs (dollars in thousands). Obligations of Corporate Total Balance at December 31, 2018 $ 18,808 $ 1,335 $ 20,143 Realized gains (losses) included in net income — — — Unrealized gains included in other comprehensive (loss) income 590 — 590 Purchases — — — Sales — — — Maturities, prepayments, and calls (23) — (23) Transfers into Level 3 — — — Transfers out of Level 3 — (1,335) (1,335) Balance at December 31, 2019 $ 19,375 $ — $ 19,375 Realized gains (losses) included in net income — — — Unrealized losses included in other comprehensive (loss) income (859) — (859) Purchases — — — Sales — — — Maturities, prepayments, and calls — — — Transfers into Level 3 — — — Transfers out of Level 3 — — — Balance at December 31, 2020 $ 18,516 $ — $ 18,516 |
Quantitative Information About Significant Unobservable Inputs Used in Fair Value Measurements | The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at December 31, 2020 (dollars in thousands): Estimated Valuation Technique Unobservable Inputs Range of December 31, 2020 Obligations of State and Political Subdivisions $ 18,516 Option-adjusted discounted cash flow model; present value of expected future cash flow model Bond Appraisal Adjustment (1) 0% - 0.4% (1) Fair values determined through valuation analysis using coupon, yield (discount margin), liquidity and expected repayment dates. |
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | Quantitative information about assets measured at fair value on a nonrecurring basis based on significant unobservable inputs (level 3) are summarized below as of the dates indicated; there were no liabilities measured on a nonrecurring basis at December 31, 2020 or 2019 (dollars in thousands). Estimated Valuation Technique Unobservable Inputs Range of Weighted Average December 31, 2020 Impaired loans $ 259 Discounted cash flows, Underlying collateral value Collateral discounts and estimated costs to sell 2% - 100% 34% Other real estate owned $ 635 Underlying collateral value, Third party appraisals Collateral discounts and discount rates 4% 4% December 31, 2019 Impaired loans $ 55 Discounted cash flows, Underlying collateral value Collateral discounts and estimated costs to sell 0% - 100% 31% |
Summary of Estimated Fair Values of Company's Financial Instruments | The estimated fair values of the Company’s financial instruments at December 31, 2020 and December 31, 2019 are shown below (dollars in thousands). December 31, 2020 Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 35,368 $ 35,368 $ 35,368 $ — $ — Investment securities 280,844 281,059 — 254,306 26,753 Equity securities 16,599 16,599 1,670 14,929 — Loans, net of allowance 1,839,955 1,861,971 — — 1,861,971 Financial liabilities: Deposits, noninterest-bearing $ 448,230 $ 448,230 $ — $ 448,230 $ — Deposits, interest-bearing 1,439,594 1,504,644 — — 1,504,644 FHLB short-term advances and repurchase agreements 47,653 47,653 — 47,653 — FHLB long-term advances 78,500 82,101 — — 82,101 Junior subordinated debt 5,949 5,299 — — 5,299 Subordinated debt 43,600 42,336 — 42,336 — Derivative financial instruments 2,216 2,216 — 2,216 — December 31, 2019 Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 44,308 $ 44,308 $ 44,308 $ — $ — Federal funds sold 387 387 387 — — Investment securities 274,214 274,285 — 245,410 28,875 Equity securities 19,315 19,316 2,097 17,219 — Loans, net of allowance 1,681,275 1,680,364 — — 1,680,364 Derivative financial instruments 687 687 — 687 — Financial liabilities: Deposits, noninterest-bearing $ 351,905 $ 351,905 $ — $ 351,905 $ — Deposits, interest-bearing 1,355,801 1,368,194 — — 1,368,194 FHLB short-term advances and repurchase agreements 56,095 56,095 — 56,095 — FHLB long-term advances 78,500 76,635 — — 76,635 Junior subordinated debt 5,897 7,747 — — 7,747 Subordinated debt 43,600 56,399 — 56,399 — |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Summary of Actual Capital Amounts and Ratios | The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2020 and December 31, 2019 are presented in the tables below (dollars in thousands). Actual Capital Adequacy * Well Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Tier 1 leverage capital Investar Holding Corporation $ 215,750 9.49 % $ 90,975 4.00 % NA NA Investar Bank 237,684 10.47 90,837 4.00 113,546 5.00 Common Equity Tier 1 risk-based capital Investar Holding Corporation 209,250 11.02 132,890 7.00 NA NA Investar Bank 237,684 12.53 132,750 7.00 123,268 6.50 Tier 1 risk-based capital Investar Holding Corporation 215,750 11.36 161,366 8.50 NA NA Investar Bank 237,684 12.53 161,196 8.50 151,714 8.00 Total risk-based capital Investar Holding Corporation 279,253 14.71 199,335 10.50 NA NA Investar Bank 258,291 13.62 199,125 10.50 189,642 10.00 December 31, 2019 Tier 1 leverage capital Investar Holding Corporation $ 215,550 10.45 % $ 82,546 4.00 % NA NA Investar Bank 222,316 10.77 82,578 4.00 103,223 5.00 Common Equity Tier 1 risk-based capital Investar Holding Corporation 209,050 11.67 125,412 7.00 NA NA Investar Bank 222,316 12.43 125,238 7.00 116,293 6.50 Tier 1 risk-based capital Investar Holding Corporation 215,550 12.03 152,286 8.50 NA NA Investar Bank 222,316 12.43 152,074 8.50 143,130 8.00 Total risk-based capital Investar Holding Corporation 269,171 15.02 188,118 10.50 NA NA Investar Bank 233,111 13.03 187,857 10.50 178,912 10.00 * The minimum ratios and amounts under the column for Capital Adequacy for December 31, 2020 and December 31, 2019 reflect the minimum regulatory capital ratios imposed under Basel III plus the fully phased-in capital conservation buffer of 2.5%. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments to Extend Credit | The table below shows the approximate amounts of the Company’s commitments to extend credit as of the dates presented (dollars in thousands). December 31, 2020 December 31, 2019 Loan commitments $ 266,039 $ 242,180 Standby letters of credit 14,420 11,475 |
PARENT ONLY BALANCE SHEETS, S_2
PARENT ONLY BALANCE SHEETS, STATEMENTS OF OPERATIONS AND STATEMENTS OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Balance Sheets | BALANCE SHEETS December 31, (dollars in thousands) 2020 2019 ASSETS Cash and due from bank $ 19,678 $ 35,535 Equity securities 1,178 1,615 Accounts receivable — 3 Due from bank subsidiary 909 712 Investment in bank subsidiary 271,619 255,141 Investment in trust 202 202 Investment in tax credit entity — 87 Trademark intangible 100 100 Other assets 63 37 Total assets $ 293,749 $ 293,432 LIABILITIES Subordinated debt, net of unamortized issuance costs $ 42,897 $ 42,826 Junior subordinated debt 5,949 5,897 Accounts payable 167 1,579 Accrued interest payable 606 465 Dividend payable 694 679 Deferred tax liability 152 10 Total liabilities 50,465 51,456 STOCKHOLDERS’ EQUITY Common stock 10,609 11,229 Surplus 159,485 168,658 Retained earnings 71,385 60,198 Accumulated other comprehensive income 1,805 1,891 Total stockholders’ equity 243,284 241,976 Total liabilities and stockholders’ equity $ 293,749 $ 293,432 |
Parent Company Statements of Operations | STATEMENTS OF OPERATIONS For the year ended December 31, (dollars in thousands) 2020 2019 REVENUE Dividends received from bank subsidiary $ — $ 6,600 Dividends on corporate stock 78 30 Partnership income 19 — Change in the fair value of equity securities 258 327 Interest income from investment in trust 5 9 Total revenue 360 6,966 EXPENSE Interest on borrowings 2,713 1,686 Management fees to bank subsidiary 360 360 Acquisition expense 72 31 Other expense 574 440 Total expense 3,719 2,517 (Loss) income before income taxes and equity in undistributed income of bank subsidiary (3,359) 4,449 Equity in undistributed income of bank subsidiary 16,563 11,941 Income tax benefit 685 449 Net income $ 13,889 $ 16,839 |
Parent Company Statements of Cash Flows | STATEMENTS OF CASH FLOWS For the year ended December 31, (dollars in thousands) 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 13,889 $ 16,839 Adjustments to reconcile net loss to net cash provided by operating activities: Equity in undistributed earnings of bank subsidiary (16,563) (11,941) Change in the fair value of equity securities (258) (327) Amortization of debt issuance costs and purchase accounting adjustments 123 105 Net change in: Due from bank subsidiary (197) (261) Other assets 10 25 Deferred tax asset 142 62 Accrued other liabilities (23) 2,776 Net cash (used in) provided by operating activities (2,877) 7,278 CASH FLOWS FROM INVESTING ACTIVITIES Capital contributed to bank subsidiary — (23,250) Repayment of investment in and advances to subsidiary — 8,000 Distributions from investments 77 82 Purchases of equity securities (2,449) (144) Proceeds from the sale of equity securities 3,144 88 Net cash provided by (used in) investing activities 772 (15,224) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid on common stock (2,686) (2,167) Proceeds from common stock offering, net of issuance costs — 28,525 Payments to repurchase common stock (11,112) (8,326) Proceeds from stock options 46 287 Proceeds from subordinated debt, net of costs — 24,558 Net cash (used in) provided by financing activities (13,752) 42,877 Net (decrease) increase in cash (15,857) 34,931 Cash and cash equivalents, beginning of period 35,535 604 Cash and cash equivalents, end of period $ 19,678 $ 35,535 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash payments for: Interest on borrowings $ 2,571 $ 1,513 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The following is a summary of the information used in the computation of basic and diluted earnings per common share for the years ended December 31, 2020, 2019 and 2018 (in thousands, except share data). December 31, 2020 2019 2018 Earnings per common share - basic Net income $ 13,889 $ 16,839 $ 13,606 Less: income allocated to participating securities (73) (164) (192) Net income allocated to common shareholders $ 13,816 $ 16,675 $ 13,414 Weighted-average basic shares outstanding 10,850,936 9,931,497 9,538,891 Basic earnings per common share $ 1.27 $ 1.68 $ 1.41 Earnings per common share - diluted Net income allocated to common shareholders $ 13,816 $ 16,676 $ 13,417 Weighted-average basic shares outstanding 10,850,936 9,931,497 9,538,891 Dilutive effect of securities 14,911 99,521 125,952 Total weighted average diluted shares outstanding 10,865,847 10,031,018 9,664,843 Diluted earnings per common share $ 1.27 $ 1.66 $ 1.39 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | The weighted average number of shares that have an antidilutive effect in the calculation of diluted earnings per common share and have been excluded from the computations above are shown below. December 31, 2020 2019 2018 Stock options 71 — 6,306 Restricted stock awards 10,968 388 1,364 Restricted stock units 62,754 7,550 — |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Policies (Details) | Oct. 31, 2020USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |||
Number of reportable operating segments | segment | 1 | ||
Reserve for unfunded loan commitments | $ 200,000 | $ 100,000 | |
Debt securities, fair value | 268,410,000 | 259,805,000 | |
Impairment charges | $ 0 | $ 0 | |
Building | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of property, plant and equipment | 39 years | ||
Minimum | Improvements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of property, plant and equipment | 5 years | ||
Minimum | Furniture and equipment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of property, plant and equipment | 3 years | ||
Minimum | Computer equipment and software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of property, plant and equipment | 1 year | ||
Maximum | Improvements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of property, plant and equipment | 39 years | ||
Maximum | Furniture and equipment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of property, plant and equipment | 7 years | ||
Maximum | Computer equipment and software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of property, plant and equipment | 5 years | ||
Core Deposits | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of core deposit intangibles | 10 years | ||
Core Deposits | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of core deposit intangibles | 15 years | ||
Equity Securities Held In Correspondent Banks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Equity securities | $ 14,900,000 | 17,200,000 | |
Corporate Bonds | |||
Finite-Lived Intangible Assets [Line Items] | |||
Debt securities, fair value | 27,708,000 | 19,163,000 | |
Corporate Bonds | Accounting Standards Update 2016-01 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Debt securities, fair value | $ 1,700,000 | $ 2,100,000 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Detail) | Feb. 21, 2020USD ($)branch_location | Nov. 01, 2019USD ($)branch_location | Mar. 01, 2019USD ($)branch_locationshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 28,100,000 | $ 26,100,000 | ||||
Acquisition expense | $ 1,062,000 | $ 2,090,000 | $ 1,445,000 | |||
Mainland | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of common stock acquired | 100.00% | |||||
Merger consideration, aggregate shares of common stock (in shares) | shares | 763,849 | |||||
Total consideration transferred | $ 18,600,000 | |||||
Assets | 127,611,000 | |||||
Net loans | 81,336,000 | |||||
Deposits | 107,646,000 | |||||
Goodwill | $ 5,239,000 | |||||
Number of branch locations | branch_location | 3 | |||||
Contractually required principal and interest payments of the loans acquired | $ 92,400,000 | |||||
Loans acquired that are considered to be purchased credit impaired loans | 2,800,000 | |||||
Contractually required principal and interest payments of the impaired loans acquired | 3,100,000 | |||||
Impaired loans not expected to be collected | $ 1,700,000 | |||||
Bank of York | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of common stock acquired | 100.00% | |||||
Assets | $ 101,934,000 | |||||
Net loans | 46,086,000 | |||||
Deposits | 85,004,000 | |||||
Goodwill | $ 5,017,000 | |||||
Number of branch locations | branch_location | 2 | |||||
Contractually required principal and interest payments of the loans acquired | $ 51,500,000 | |||||
Cash consideration | 15,000,000 | |||||
Bank of York | Receivables Acquired with Deteriorated Credit Quality | ||||||
Business Acquisition [Line Items] | ||||||
Contractually required principal and interest payments of the loans acquired | 300,000 | |||||
Loans acquired considered to be purchased credit impaired loans | 300,000 | |||||
Amount not expected to be collected | $ 100,000 | |||||
Plains Capital Bank | ||||||
Business Acquisition [Line Items] | ||||||
Assets | $ 48,755,000 | |||||
Net loans | 45,299,000 | |||||
Deposits | 36,973,000 | |||||
Goodwill | $ 464,000 | |||||
Number of branch locations | branch_location | 2 | |||||
Contractually required principal and interest payments of the loans acquired | $ 51,300,000 | |||||
Cash consideration | 11,162,000 | |||||
Plains Capital Bank | Receivables Acquired with Deteriorated Credit Quality | ||||||
Business Acquisition [Line Items] | ||||||
Loans acquired considered to be purchased credit impaired loans | $ 0 |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule Of Recognized Identified Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Feb. 21, 2020 | Nov. 01, 2019 | Mar. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair value of liabilities acquired: | |||||
Goodwill | $ 28,100 | $ 26,100 | |||
Mainland | |||||
Purchase price: | |||||
Stock issued | $ 18,637 | ||||
Fair value of assets acquired: | |||||
Cash and cash equivalents | 38,365 | ||||
Loans | 81,336 | ||||
Other real estate owned | 1,507 | ||||
Bank premises and equipment | 2,550 | ||||
Core deposit intangible asset | 2,439 | ||||
Other assets | 1,414 | ||||
Total assets acquired | 127,611 | ||||
Fair value of liabilities acquired: | |||||
Deposits | 107,646 | ||||
Repurchase agreements | 4,684 | ||||
Other liabilities | 1,883 | ||||
Total liabilities assumed | 114,213 | ||||
Fair value of net assets acquired | 13,398 | ||||
Goodwill | $ 5,239 | ||||
Bank of York | |||||
Purchase price: | |||||
Cash paid | $ 15,000 | ||||
Fair value of assets acquired: | |||||
Cash and cash equivalents | 50,776 | ||||
Investments | 451 | ||||
Loans | 46,086 | ||||
Bank premises and equipment | 917 | ||||
Core deposit intangible asset | 931 | ||||
Bank owned life insurance | 2,429 | ||||
Other assets | 344 | ||||
Total assets acquired | 101,934 | ||||
Fair value of liabilities acquired: | |||||
Deposits | 85,004 | ||||
Repurchase agreements | 5,641 | ||||
Other liabilities | 1,306 | ||||
Total liabilities assumed | 91,951 | ||||
Fair value of net assets acquired | 9,983 | ||||
Goodwill | $ 5,017 | ||||
Plains Capital Bank | |||||
Purchase price: | |||||
Cash paid | $ 11,162 | ||||
Fair value of assets acquired: | |||||
Cash and cash equivalents | 353 | ||||
Loans | 45,299 | ||||
Bank premises and equipment | 2,770 | ||||
Core deposit intangible asset | 170 | ||||
Other assets | 163 | ||||
Total assets acquired | 48,755 | ||||
Fair value of liabilities acquired: | |||||
Deposits | 36,973 | ||||
Other liabilities | 1,084 | ||||
Total liabilities assumed | 38,057 | ||||
Fair value of net assets acquired | 10,698 | ||||
Goodwill | $ 464 |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Amortized Cost and Approximate Fair Value of Investment Securities Classified as Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 263,913 | $ 258,104 |
Gross Unrealized Gains | 4,916 | 2,480 |
Gross Unrealized Losses | (419) | (779) |
Fair Value | 268,410 | 259,805 |
Obligations of U.S. government agencies and corporations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 36,648 | 33,651 |
Gross Unrealized Gains | 201 | 100 |
Gross Unrealized Losses | (28) | (100) |
Fair Value | 36,821 | 33,651 |
Obligations of state and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21,650 | 32,920 |
Gross Unrealized Gains | 490 | 541 |
Gross Unrealized Losses | (3) | (12) |
Fair Value | 22,137 | 33,449 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 27,583 | 19,245 |
Gross Unrealized Gains | 348 | 192 |
Gross Unrealized Losses | (223) | (274) |
Fair Value | 27,708 | 19,163 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 119,934 | 100,948 |
Gross Unrealized Gains | 2,675 | 1,083 |
Gross Unrealized Losses | (11) | (85) |
Fair Value | 122,598 | 101,946 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 58,098 | 71,340 |
Gross Unrealized Gains | 1,202 | 564 |
Gross Unrealized Losses | (154) | (308) |
Fair Value | $ 59,146 | $ 71,596 |
INVESTMENT SECURITIES - Sched_2
INVESTMENT SECURITIES - Schedules of Proceeds from Sale of Investment Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 56,466 | $ 65,834 | $ 7,021 |
Gross gains | 2,300 | 608 | 35 |
Gross losses | $ (11) | $ (346) | $ (21) |
INVESTMENT SECURITIES - Sched_3
INVESTMENT SECURITIES - Schedule of Amortized Cost and Approximate Fair Value of Investment Securities Classified as Held to Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Total debt securities | $ 12,434 | $ 14,409 |
Gross Unrealized Gains | 215 | 71 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 12,649 | 14,480 |
Obligations of state and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total debt securities | 8,225 | 9,487 |
Gross Unrealized Gains | 12 | 14 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 8,237 | 9,501 |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total debt securities | 4,209 | 4,922 |
Gross Unrealized Gains | 203 | 57 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 4,412 | $ 4,979 |
INVESTMENT SECURITIES - Sched_4
INVESTMENT SECURITIES - Schedule of Unrealized Losses and Fair Value by Investment Category for Securities Available for Sale (Detail) $ in Thousands | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Count | security | 70 | 141 |
Less than 12 months, fair value | $ 34,546 | $ 62,100 |
Less than 12 months, unrealized losses | (223) | (430) |
12 months or more, fair value | 14,771 | 17,861 |
12 months or more, unrealized losses | (196) | (349) |
Total, fair value | 49,317 | 79,961 |
Total, unrealized losses | $ (419) | $ (779) |
Obligations of U.S. government agencies and corporations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Count | security | 12 | 21 |
Less than 12 months, fair value | $ 9,080 | $ 19,980 |
Less than 12 months, unrealized losses | (19) | (94) |
12 months or more, fair value | 4,043 | 955 |
12 months or more, unrealized losses | (9) | (6) |
Total, fair value | 13,123 | 20,935 |
Total, unrealized losses | $ (28) | $ (100) |
Obligations of state and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Count | security | 4 | 10 |
Less than 12 months, fair value | $ 505 | $ 212 |
Less than 12 months, unrealized losses | (3) | (1) |
12 months or more, fair value | 204 | 371 |
12 months or more, unrealized losses | 0 | (11) |
Total, fair value | 709 | 583 |
Total, unrealized losses | $ (3) | $ (12) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Count | security | 22 | 21 |
Less than 12 months, fair value | $ 6,970 | $ 495 |
Less than 12 months, unrealized losses | (133) | (5) |
12 months or more, fair value | 2,559 | 7,829 |
12 months or more, unrealized losses | (90) | (269) |
Total, fair value | 9,529 | 8,324 |
Total, unrealized losses | $ (223) | $ (274) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Count | security | 6 | 32 |
Less than 12 months, fair value | $ 11,070 | $ 12,341 |
Less than 12 months, unrealized losses | (11) | (56) |
12 months or more, fair value | 0 | 6,190 |
12 months or more, unrealized losses | 0 | (29) |
Total, fair value | 11,070 | 18,531 |
Total, unrealized losses | $ (11) | $ (85) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Count | security | 26 | 57 |
Less than 12 months, fair value | $ 6,921 | $ 29,072 |
Less than 12 months, unrealized losses | (57) | (274) |
12 months or more, fair value | 7,965 | 2,516 |
12 months or more, unrealized losses | (97) | (34) |
Total, fair value | 14,886 | 31,588 |
Total, unrealized losses | $ (154) | $ (308) |
INVESTMENT SECURITIES - Sched_5
INVESTMENT SECURITIES - Schedule of Amortized Cost and Approximate Fair Value of Investment Debt Securities by Contractual Maturity (Including Mortgage-backed Securities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due within one year | $ 1,669 | $ 2,174 |
Due after one year through five years | 12,937 | 13,525 |
Due after five years through ten years | 64,159 | 66,551 |
Due after ten years | 185,148 | 175,854 |
Amortized Cost | 263,913 | 258,104 |
Fair Value | ||
Due within one year | 1,691 | 2,175 |
Due after one year through five years | 13,014 | 13,675 |
Due after five years through ten years | 64,865 | 66,568 |
Due after ten years | 188,840 | 177,387 |
Total debt securities | 268,410 | 259,805 |
Amortized Cost | ||
Due within one year | 830 | 790 |
Due after one year through five years | 2,745 | 3,575 |
Due after five years through ten years | 4,650 | 5,122 |
Due after ten years | 4,209 | 4,922 |
Total debt securities | 12,434 | 14,409 |
Fair Value | ||
Due within one year | 832 | 792 |
Due after one year through five years | 2,751 | 3,582 |
Due after five years through ten years | 4,654 | 5,126 |
Due after ten years | 4,412 | 4,980 |
Total debt securities | $ 12,649 | $ 14,480 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged securities | $ 84.6 | $ 89.5 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Loan Portfolio Excluding Loans Held for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 1,860,318 | $ 1,691,975 | $ 1,400,825 |
Mortgage loans on real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,445,202 | 1,338,743 | |
Mortgage loans on real estate | Construction and development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 206,011 | 197,797 | 157,946 |
Mortgage loans on real estate | 1-4 Family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 339,525 | 321,489 | 287,137 |
Mortgage loans on real estate | Multifamily | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 60,724 | 60,617 | 50,501 |
Mortgage loans on real estate | Farmland | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 26,547 | 27,780 | 21,356 |
Mortgage loans on real estate | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 812,395 | 731,060 | 627,004 |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 394,497 | 323,786 | 210,924 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 20,619 | $ 29,446 | $ 45,957 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020USD ($)contractsecurity_loanbranch_location | Dec. 31, 2019USD ($)security_loancontract | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unamortized premiums and discounts | $ 1,800,000 | $ 2,100,000 | |
Unearned income on loans | 3,200,000 | 900,000 | |
Total loans | 1,860,318,000 | 1,691,975,000 | $ 1,400,825,000 |
Balances of loans sold to and serviced for others | 53,500,000 | 82,800,000 | |
Unpaid principal balances of loans sold to and serviced for others | 154,000,000 | 174,700,000 | |
Loan outstanding to related parties | 96,390,000 | 98,093,000 | 93,021,000 |
Changes in accretable yield on acquired impaired loans | $ 0 | $ 0 | |
Number of loans under troubled debt restructurings | security_loan | 34 | 18 | |
Recorded investment or loans under troubled debt restructurings | $ 14,650,000 | $ 1,483,000 | |
Number of contracts in default | contract | 0 | 2 | |
Number of loans modified under troubled debt restructurings during previous twelve month period that subsequently defaulted | contract | 0 | ||
Troubled Debt Restructuring, Adjustments to Maturity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans under troubled debt restructurings | security_loan | 12 | ||
Troubled Debt Restructuring Principal Payment Forbearance Paying Interest | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans under troubled debt restructurings | branch_location | 11 | ||
Troubled Debt Restructuring, Reduction in Interest Rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans under troubled debt restructurings | security_loan | 7 | 3 | |
Nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans under troubled debt restructurings | security_loan | 1 | ||
Recorded investment or loans under troubled debt restructurings | $ 6,633,000 | $ 463,000 | |
Doubtful or Loss | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 0 | 0 | |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 394,497,000 | $ 323,786,000 | $ 210,924,000 |
Number of loans under troubled debt restructurings | contract | 9 | 0 | |
Recorded investment or loans under troubled debt restructurings | $ 7,729,000 | ||
Commercial and industrial | Paycheck Protection Program Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan portfolio | 94,500,000 | ||
Commercial and industrial | Nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment or loans under troubled debt restructurings | $ 5,534,000 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Aging Analysis of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | $ 1,839,754 | $ 1,680,335 | |
Nonaccrual | 11,160 | 3,046 | |
Total Past Due & Nonaccrual | 16,407 | 7,248 | |
Acquired Impaired Loans | 4,157 | 4,392 | |
Total Loans | 1,860,318 | 1,691,975 | $ 1,400,825 |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 3,780 | 2,834 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 1,146 | 573 | |
90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 321 | 795 | |
Mortgage loans on real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,433,012 | 1,328,446 | |
Nonaccrual | 3,907 | 2,378 | |
Total Past Due & Nonaccrual | 8,317 | 5,956 | |
Acquired Impaired Loans | 3,873 | 4,341 | |
Total Loans | 1,445,202 | 1,338,743 | |
Mortgage loans on real estate | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 3,342 | 2,324 | |
Mortgage loans on real estate | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 852 | 459 | |
Mortgage loans on real estate | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 216 | 795 | |
Mortgage loans on real estate | Construction and development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 205,002 | 197,318 | |
Nonaccrual | 521 | 314 | |
Total Past Due & Nonaccrual | 1,009 | 479 | |
Acquired Impaired Loans | 0 | 0 | |
Total Loans | 206,011 | 197,797 | 157,946 |
Mortgage loans on real estate | Construction and development | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 488 | 133 | |
Mortgage loans on real estate | Construction and development | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 32 | |
Mortgage loans on real estate | Construction and development | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
Mortgage loans on real estate | 1-4 Family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 335,710 | 317,572 | |
Nonaccrual | 1,615 | 1,923 | |
Total Past Due & Nonaccrual | 3,434 | 3,472 | |
Acquired Impaired Loans | 381 | 445 | |
Total Loans | 339,525 | 321,489 | 287,137 |
Mortgage loans on real estate | 1-4 Family | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 1,085 | 998 | |
Mortgage loans on real estate | 1-4 Family | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 734 | 413 | |
Mortgage loans on real estate | 1-4 Family | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 138 | |
Mortgage loans on real estate | Multifamily | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 60,724 | 60,617 | |
Nonaccrual | 0 | 0 | |
Total Past Due & Nonaccrual | 0 | 0 | |
Acquired Impaired Loans | 0 | 0 | |
Total Loans | 60,724 | 60,617 | 50,501 |
Mortgage loans on real estate | Multifamily | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
Mortgage loans on real estate | Multifamily | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
Mortgage loans on real estate | Multifamily | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
Mortgage loans on real estate | Farmland | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 24,333 | 25,516 | |
Nonaccrual | 0 | 0 | |
Total Past Due & Nonaccrual | 513 | 0 | |
Acquired Impaired Loans | 1,701 | 2,264 | |
Total Loans | 26,547 | 27,780 | 21,356 |
Mortgage loans on real estate | Farmland | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 297 | 0 | |
Mortgage loans on real estate | Farmland | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
Mortgage loans on real estate | Farmland | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 216 | 0 | |
Mortgage loans on real estate | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 807,243 | 727,423 | |
Nonaccrual | 1,771 | 141 | |
Total Past Due & Nonaccrual | 3,361 | 2,005 | |
Acquired Impaired Loans | 1,791 | 1,632 | |
Total Loans | 812,395 | 731,060 | 627,004 |
Mortgage loans on real estate | Commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 1,472 | 1,193 | |
Mortgage loans on real estate | Commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 118 | 14 | |
Mortgage loans on real estate | Commercial real estate | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 657 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 386,607 | 323,446 | |
Nonaccrual | 6,907 | 137 | |
Total Past Due & Nonaccrual | 7,644 | 327 | |
Acquired Impaired Loans | 246 | 13 | |
Total Loans | 394,497 | 323,786 | 210,924 |
Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 359 | 171 | |
Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 273 | 19 | |
Commercial and industrial | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 105 | 0 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 20,135 | 28,443 | |
Nonaccrual | 346 | 531 | |
Total Past Due & Nonaccrual | 446 | 965 | |
Acquired Impaired Loans | 38 | 38 | |
Total Loans | 20,619 | 29,446 | $ 45,957 |
Consumer | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 79 | 339 | |
Consumer | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 21 | 95 | |
Consumer | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of the Company's Loan Portfolio by Credit Quality Indicator (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 1,860,318 | $ 1,691,975 | $ 1,400,825 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,822,468 | 1,678,770 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 16,875 | 4,362 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 20,066 | 8,722 | |
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 909 | 121 | |
Mortgage loans on real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,445,202 | 1,338,743 | |
Mortgage loans on real estate | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 206,011 | 197,797 | 157,946 |
Mortgage loans on real estate | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 339,525 | 321,489 | 287,137 |
Mortgage loans on real estate | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 60,724 | 60,617 | 50,501 |
Mortgage loans on real estate | Farmland | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 26,547 | 27,780 | 21,356 |
Mortgage loans on real estate | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 812,395 | 731,060 | 627,004 |
Mortgage loans on real estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,422,782 | 1,331,476 | |
Mortgage loans on real estate | Pass | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 198,139 | 196,873 | |
Mortgage loans on real estate | Pass | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 337,829 | 318,549 | |
Mortgage loans on real estate | Pass | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 60,724 | 60,617 | |
Mortgage loans on real estate | Pass | Farmland | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 24,846 | 25,516 | |
Mortgage loans on real estate | Pass | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 801,244 | 729,921 | |
Mortgage loans on real estate | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 12,081 | 1,324 | |
Mortgage loans on real estate | Special Mention | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 7,352 | 610 | |
Mortgage loans on real estate | Special Mention | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 714 | |
Mortgage loans on real estate | Special Mention | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Mortgage loans on real estate | Special Mention | Farmland | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Mortgage loans on real estate | Special Mention | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,729 | 0 | |
Mortgage loans on real estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 10,339 | 5,915 | |
Mortgage loans on real estate | Substandard | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 520 | 314 | |
Mortgage loans on real estate | Substandard | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,696 | 2,198 | |
Mortgage loans on real estate | Substandard | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Mortgage loans on real estate | Substandard | Farmland | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,701 | 2,264 | |
Mortgage loans on real estate | Substandard | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,422 | 1,139 | |
Mortgage loans on real estate | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 28 | |
Mortgage loans on real estate | Doubtful | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Mortgage loans on real estate | Doubtful | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 28 | |
Mortgage loans on real estate | Doubtful | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Mortgage loans on real estate | Doubtful | Farmland | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Mortgage loans on real estate | Doubtful | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 394,497 | 323,786 | 210,924 |
Commercial and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 379,451 | 318,519 | |
Commercial and industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,794 | 2,910 | |
Commercial and industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 9,343 | 2,264 | |
Commercial and industrial | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 909 | 93 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 20,619 | 29,446 | $ 45,957 |
Consumer | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 20,235 | 28,775 | |
Consumer | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 128 | |
Consumer | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 384 | 543 | |
Consumer | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Aggregate Amount of Loans to Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning of period | $ 98,093 | $ 93,021 |
New loans/changes in relationship | 12,443 | 20,903 |
Repayments/changes in relationship | (14,146) | (15,831) |
Balance, end of period | $ 96,390 | $ 98,093 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of period | $ 10,700 | $ 9,454 | $ 7,891 |
Provision for loan losses | 11,160 | 1,908 | 2,570 |
Loans charged-off | (1,754) | (800) | (1,185) |
Recoveries | 257 | 138 | 178 |
Balance, end of period | $ 20,363 | $ 10,700 | $ 9,454 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Loan Loss by Collateral Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses: | |||
Balance, beginning of period | $ 10,700 | $ 9,454 | $ 7,891 |
Charge-offs | (1,754) | (800) | (1,185) |
Recoveries | 257 | 138 | 178 |
Provision | 11,160 | 1,908 | 2,570 |
Balance, end of period | 20,363 | 10,700 | 9,454 |
Ending allowance balance for loans individually evaluated for impairment | 210 | 141 | 236 |
Ending allowance balance for loans collectively evaluated for impairment | 19,943 | 10,559 | 9,218 |
Loans receivable: | |||
Balance of loans individually evaluated for impairment | 19,177 | 2,547 | 3,269 |
Balance of loans acquired with deteriorated credit quality | 4,157 | 4,392 | 6,017 |
Balance of loans collectively evaluated for impairment | 1,836,984 | 1,685,036 | 1,391,539 |
Total Loans | 1,860,318 | 1,691,975 | 1,400,825 |
Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Ending allowance balance for loans acquired with deteriorated credit quality | 210 | 0 | 0 |
Mortgage loans on real estate | |||
Loans receivable: | |||
Total Loans | 1,445,202 | 1,338,743 | |
Mortgage loans on real estate | Construction and development | |||
Allowance for loan losses: | |||
Balance, beginning of period | 1,201 | 1,038 | 945 |
Charge-offs | 0 | (51) | (24) |
Recoveries | 47 | 27 | 12 |
Provision | 1,127 | 187 | 105 |
Balance, end of period | 2,375 | 1,201 | 1,038 |
Ending allowance balance for loans individually evaluated for impairment | 0 | 0 | 0 |
Ending allowance balance for loans collectively evaluated for impairment | 2,375 | 1,201 | 1,038 |
Loans receivable: | |||
Balance of loans individually evaluated for impairment | 782 | 247 | 339 |
Balance of loans acquired with deteriorated credit quality | 0 | 0 | 13 |
Balance of loans collectively evaluated for impairment | 205,229 | 197,550 | 157,594 |
Total Loans | 206,011 | 197,797 | 157,946 |
Mortgage loans on real estate | Construction and development | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Ending allowance balance for loans acquired with deteriorated credit quality | 0 | 0 | 0 |
Mortgage loans on real estate | Farmland | |||
Allowance for loan losses: | |||
Balance, beginning of period | 101 | 81 | 60 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 334 | 20 | 21 |
Balance, end of period | 435 | 101 | 81 |
Ending allowance balance for loans individually evaluated for impairment | 0 | 0 | 0 |
Ending allowance balance for loans collectively evaluated for impairment | 225 | 101 | 81 |
Loans receivable: | |||
Balance of loans individually evaluated for impairment | 0 | 0 | 0 |
Balance of loans acquired with deteriorated credit quality | 1,701 | 2,264 | 2,264 |
Balance of loans collectively evaluated for impairment | 24,846 | 25,516 | 19,092 |
Total Loans | 26,547 | 27,780 | 21,356 |
Mortgage loans on real estate | Farmland | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Ending allowance balance for loans acquired with deteriorated credit quality | 210 | 0 | 0 |
Mortgage loans on real estate | 1-4 Family | |||
Allowance for loan losses: | |||
Balance, beginning of period | 1,490 | 1,465 | 1,287 |
Charge-offs | (173) | (62) | (167) |
Recoveries | 74 | 27 | 29 |
Provision | 1,979 | 60 | 316 |
Balance, end of period | 3,370 | 1,490 | 1,465 |
Ending allowance balance for loans individually evaluated for impairment | 0 | 0 | 0 |
Ending allowance balance for loans collectively evaluated for impairment | 3,370 | 1,490 | 1,465 |
Loans receivable: | |||
Balance of loans individually evaluated for impairment | 2,280 | 1,662 | 1,177 |
Balance of loans acquired with deteriorated credit quality | 381 | 445 | 490 |
Balance of loans collectively evaluated for impairment | 336,864 | 319,382 | 285,470 |
Total Loans | 339,525 | 321,489 | 287,137 |
Mortgage loans on real estate | 1-4 Family | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Ending allowance balance for loans acquired with deteriorated credit quality | 0 | 0 | 0 |
Mortgage loans on real estate | Multifamily | |||
Allowance for loan losses: | |||
Balance, beginning of period | 387 | 331 | 332 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 202 | 56 | (1) |
Balance, end of period | 589 | 387 | 331 |
Ending allowance balance for loans individually evaluated for impairment | 0 | 0 | 0 |
Ending allowance balance for loans collectively evaluated for impairment | 589 | 387 | 331 |
Loans receivable: | |||
Balance of loans individually evaluated for impairment | 0 | 0 | 0 |
Balance of loans acquired with deteriorated credit quality | 0 | 0 | 0 |
Balance of loans collectively evaluated for impairment | 60,724 | 60,617 | 50,501 |
Total Loans | 60,724 | 60,617 | 50,501 |
Mortgage loans on real estate | Multifamily | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Ending allowance balance for loans acquired with deteriorated credit quality | 0 | 0 | 0 |
Mortgage loans on real estate | Commercial real estate | |||
Allowance for loan losses: | |||
Balance, beginning of period | 4,424 | 4,182 | 3,599 |
Charge-offs | (51) | (24) | 0 |
Recoveries | 8 | 1 | 0 |
Provision | 4,115 | 265 | 583 |
Balance, end of period | 8,496 | 4,424 | 4,182 |
Ending allowance balance for loans individually evaluated for impairment | 0 | 0 | 0 |
Ending allowance balance for loans collectively evaluated for impairment | 8,496 | 4,424 | 4,182 |
Loans receivable: | |||
Balance of loans individually evaluated for impairment | 6,666 | 47 | 761 |
Balance of loans acquired with deteriorated credit quality | 1,791 | 1,632 | 2,011 |
Balance of loans collectively evaluated for impairment | 803,938 | 729,381 | 624,232 |
Total Loans | 812,395 | 731,060 | 627,004 |
Mortgage loans on real estate | Commercial real estate | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Ending allowance balance for loans acquired with deteriorated credit quality | 0 | 0 | 0 |
Commercial and industrial | |||
Allowance for loan losses: | |||
Balance, beginning of period | 2,609 | 1,641 | 693 |
Charge-offs | (1,195) | (252) | (481) |
Recoveries | 50 | 26 | 55 |
Provision | 3,094 | 1,194 | 1,374 |
Balance, end of period | 4,558 | 2,609 | 1,641 |
Ending allowance balance for loans individually evaluated for impairment | 80 | 0 | 0 |
Ending allowance balance for loans collectively evaluated for impairment | 4,478 | 2,609 | 1,641 |
Loans receivable: | |||
Balance of loans individually evaluated for impairment | 9,102 | 93 | 76 |
Balance of loans acquired with deteriorated credit quality | 246 | 13 | 1,195 |
Balance of loans collectively evaluated for impairment | 385,149 | 323,680 | 209,653 |
Total Loans | 394,497 | 323,786 | 210,924 |
Commercial and industrial | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Ending allowance balance for loans acquired with deteriorated credit quality | 0 | 0 | 0 |
Consumer | |||
Allowance for loan losses: | |||
Balance, beginning of period | 488 | 716 | 975 |
Charge-offs | (335) | (411) | (513) |
Recoveries | 78 | 57 | 82 |
Provision | 309 | 126 | 172 |
Balance, end of period | 540 | 488 | 716 |
Ending allowance balance for loans individually evaluated for impairment | 130 | 141 | 236 |
Ending allowance balance for loans collectively evaluated for impairment | 410 | 347 | 480 |
Loans receivable: | |||
Balance of loans individually evaluated for impairment | 347 | 498 | 916 |
Balance of loans acquired with deteriorated credit quality | 38 | 38 | 44 |
Balance of loans collectively evaluated for impairment | 20,234 | 28,910 | 44,997 |
Total Loans | 20,619 | 29,446 | 45,957 |
Consumer | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for loan losses: | |||
Ending allowance balance for loans acquired with deteriorated credit quality | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Recorded Investment and Unpaid Principal Balance for Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | $ 18,695 | $ 2,237 | $ 2,568 |
With no related allowance recorded, Unpaid Principal Balance | 19,970 | 2,365 | 2,630 |
With no related allowance recorded, Average Recorded Investment | 11,356 | 2,932 | 3,258 |
With no related allowance recorded, Interest Income Recognized | 197 | 53 | 72 |
With related allowance recorded, Recorded Investment | 482 | 310 | 701 |
With related allowance recorded, Unpaid Principal Balance | 525 | 347 | 738 |
Related Allowance | 210 | 141 | 236 |
With related allowance recorded, Average Recorded Investment | 278 | 324 | 588 |
With related allowance recorded, Interest Income Recognized | 1 | 0 | 0 |
Total loans, Recorded Investment | 19,177 | 2,547 | 3,269 |
Total loans, Unpaid Principal Balance | 20,495 | 2,712 | 3,368 |
Total loans, Average Recorded Investment | 11,634 | 3,256 | 3,846 |
Total loans, Interest Income Recognized | 198 | 53 | 72 |
Mortgage loans on real estate | |||
Financing Receivable Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 9,728 | 1,956 | 2,277 |
With no related allowance recorded, Unpaid Principal Balance | 9,874 | 2,064 | 2,316 |
With no related allowance recorded, Average Recorded Investment | 6,515 | 2,571 | 2,570 |
With no related allowance recorded, Interest Income Recognized | 165 | 53 | 72 |
Related Allowance | 0 | 0 | 0 |
Total loans, Recorded Investment | 9,728 | 1,956 | 2,277 |
Total loans, Unpaid Principal Balance | 9,874 | 2,064 | 2,316 |
Total loans, Average Recorded Investment | 6,515 | 2,571 | 2,570 |
Total loans, Interest Income Recognized | 165 | 53 | 72 |
Mortgage loans on real estate | Construction and development | |||
Financing Receivable Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 782 | 247 | 339 |
With no related allowance recorded, Unpaid Principal Balance | 800 | 269 | 359 |
With no related allowance recorded, Average Recorded Investment | 887 | 328 | 237 |
With no related allowance recorded, Interest Income Recognized | 13 | 14 | 13 |
Related Allowance | 0 | 0 | 0 |
Total loans, Recorded Investment | 782 | 247 | 339 |
Total loans, Unpaid Principal Balance | 800 | 269 | 359 |
Total loans, Average Recorded Investment | 887 | 328 | 237 |
Total loans, Interest Income Recognized | 13 | 14 | 13 |
Mortgage loans on real estate | 1-4 Family | |||
Financing Receivable Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 2,280 | 1,662 | 1,177 |
With no related allowance recorded, Unpaid Principal Balance | 2,353 | 1,745 | 1,180 |
With no related allowance recorded, Average Recorded Investment | 2,172 | 1,507 | 1,455 |
With no related allowance recorded, Interest Income Recognized | 26 | 32 | 39 |
Related Allowance | 0 | 0 | 0 |
Total loans, Recorded Investment | 2,280 | 1,662 | 1,177 |
Total loans, Unpaid Principal Balance | 2,353 | 1,745 | 1,180 |
Total loans, Average Recorded Investment | 2,172 | 1,507 | 1,455 |
Total loans, Interest Income Recognized | 26 | 32 | 39 |
Mortgage loans on real estate | Multifamily | |||
Financing Receivable Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 0 | ||
With no related allowance recorded, Unpaid Principal Balance | 0 | ||
With no related allowance recorded, Average Recorded Investment | 36 | ||
With no related allowance recorded, Interest Income Recognized | 0 | ||
Related Allowance | 0 | ||
Total loans, Recorded Investment | 0 | ||
Total loans, Unpaid Principal Balance | 0 | ||
Total loans, Average Recorded Investment | 36 | ||
Total loans, Interest Income Recognized | 0 | ||
Mortgage loans on real estate | Commercial real estate | |||
Financing Receivable Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 6,666 | 47 | 761 |
With no related allowance recorded, Unpaid Principal Balance | 6,721 | 50 | 777 |
With no related allowance recorded, Average Recorded Investment | 3,456 | 700 | 878 |
With no related allowance recorded, Interest Income Recognized | 126 | 7 | 20 |
Related Allowance | 0 | 0 | 0 |
Total loans, Recorded Investment | 6,666 | 47 | 761 |
Total loans, Unpaid Principal Balance | 6,721 | 50 | 777 |
Total loans, Average Recorded Investment | 3,456 | 700 | 878 |
Total loans, Interest Income Recognized | 126 | 7 | 20 |
Commercial and industrial | |||
Financing Receivable Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 8,841 | 93 | 76 |
With no related allowance recorded, Unpaid Principal Balance | 9,953 | 96 | 77 |
With no related allowance recorded, Average Recorded Investment | 4,614 | 33 | 278 |
With no related allowance recorded, Interest Income Recognized | 31 | 0 | 0 |
With related allowance recorded, Recorded Investment | 261 | ||
With related allowance recorded, Unpaid Principal Balance | 260 | ||
Related Allowance | 80 | 0 | 0 |
With related allowance recorded, Average Recorded Investment | 22 | ||
With related allowance recorded, Interest Income Recognized | 0 | ||
Total loans, Recorded Investment | 9,102 | 93 | 76 |
Total loans, Unpaid Principal Balance | 10,213 | 96 | 77 |
Total loans, Average Recorded Investment | 4,636 | 33 | 278 |
Total loans, Interest Income Recognized | 31 | 0 | 0 |
Consumer | |||
Financing Receivable Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 126 | 188 | 215 |
With no related allowance recorded, Unpaid Principal Balance | 143 | 205 | 237 |
With no related allowance recorded, Average Recorded Investment | 227 | 328 | 410 |
With no related allowance recorded, Interest Income Recognized | 1 | 0 | 0 |
With related allowance recorded, Recorded Investment | 221 | 310 | 701 |
With related allowance recorded, Unpaid Principal Balance | 265 | 347 | 738 |
Related Allowance | 130 | 141 | 236 |
With related allowance recorded, Average Recorded Investment | 256 | 324 | 588 |
With related allowance recorded, Interest Income Recognized | 1 | 0 | 0 |
Total loans, Recorded Investment | 347 | 498 | 916 |
Total loans, Unpaid Principal Balance | 408 | 552 | 975 |
Total loans, Average Recorded Investment | 483 | 652 | 998 |
Total loans, Interest Income Recognized | $ 2 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of TDR Pre- and Post-modification Outstanding Recorded Investments by Loan Categories (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)contractsecurity_loan | Dec. 31, 2019USD ($)contractsecurity_loan | |
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | security_loan | 34 | 18 |
Pre- Modification Outstanding Recorded Investment | $ 13,626 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 13,626 | $ 0 |
Mortgage loans on real estate | Construction and development | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 64 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 64 | $ 0 |
Mortgage loans on real estate | Commercial real estate | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | contract | 8 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 5,833 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 5,833 | $ 0 |
Commercial and industrial | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | contract | 9 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 7,729 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 7,729 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Accruing and Nonaccrual TDRs and Related Loan Losses by Portfolio Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Modifications [Line Items] | ||
TDRs loans | $ 14,650 | $ 1,483 |
Accruing | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 8,017 | 1,020 |
Nonaccrual | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 6,633 | 463 |
Mortgage loans on real estate | Construction and development | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 262 | 507 |
Mortgage loans on real estate | Construction and development | Accruing | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 262 | 220 |
Mortgage loans on real estate | Construction and development | Nonaccrual | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 0 | 287 |
Mortgage loans on real estate | 1-4 Family | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 826 | 976 |
Mortgage loans on real estate | 1-4 Family | Accruing | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 665 | 800 |
Mortgage loans on real estate | 1-4 Family | Nonaccrual | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 161 | $ 176 |
Mortgage loans on real estate | Commercial real estate | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 5,833 | |
Mortgage loans on real estate | Commercial real estate | Accruing | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 4,895 | |
Mortgage loans on real estate | Commercial real estate | Nonaccrual | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 938 | |
Commercial and industrial | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 7,729 | |
Commercial and industrial | Accruing | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | 2,195 | |
Commercial and industrial | Nonaccrual | ||
Financing Receivable Modifications [Line Items] | ||
TDRs loans | $ 5,534 |
LOANS AND ALLOWANCE FOR LOAN_13
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Average Recorded Investment and Interest Income Recognized for TDRs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | $ 11,634 | $ 3,256 | $ 3,846 |
Interest Income Recognized | 198 | 53 | 72 |
Mortgage loans on real estate | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 6,515 | 2,571 | 2,570 |
Interest Income Recognized | 165 | 53 | 72 |
Mortgage loans on real estate | Construction and development | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 887 | 328 | 237 |
Interest Income Recognized | 13 | 14 | 13 |
Mortgage loans on real estate | 1-4 Family | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 2,172 | 1,507 | 1,455 |
Interest Income Recognized | 26 | 32 | 39 |
Mortgage loans on real estate | Commercial real estate | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 3,456 | 700 | 878 |
Interest Income Recognized | 126 | 7 | 20 |
Commercial and industrial | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 4,636 | 33 | 278 |
Interest Income Recognized | 31 | 0 | 0 |
Consumer | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 483 | 652 | 998 |
Interest Income Recognized | 2 | 0 | 0 |
TDRs | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 5,227 | 1,795 | 1,819 |
Interest Income Recognized | 228 | 72 | 78 |
TDRs | Mortgage loans on real estate | Construction and development | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 438 | 515 | 308 |
Interest Income Recognized | 14 | 14 | 13 |
TDRs | Mortgage loans on real estate | 1-4 Family | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 936 | 1,014 | 948 |
Interest Income Recognized | 35 | 51 | 45 |
TDRs | Mortgage loans on real estate | Commercial real estate | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 2,778 | 264 | 553 |
Interest Income Recognized | 126 | 7 | 20 |
TDRs | Commercial and industrial | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 1,075 | 2 | 8 |
Interest Income Recognized | $ 53 | $ 0 | 0 |
TDRs | Consumer | |||
Financing Receivable Modifications [Line Items] | |||
Average Recorded Investment | 2 | ||
Interest Income Recognized | $ 0 |
OTHER REAL ESTATE OWNED - Sched
OTHER REAL ESTATE OWNED - Schedule of Activity in Other Real Estate Owned (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Repossessed Assets [Roll Forward] | ||
Balance, beginning of period | $ 133 | $ 3,611 |
Additions | 41 | 181 |
Transfers from bank premises and equipment | 665 | 0 |
Acquired other real estate owned | 0 | 1,507 |
Sales of other real estate owned | (146) | (5,148) |
Write-downs | (30) | (18) |
Balance, end of period | $ 663 | $ 133 |
OTHER REAL ESTATE OWNED - Addit
OTHER REAL ESTATE OWNED - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate Properties [Line Items] | |||
Other real estate owned related to acquisitions | $ 663 | $ 133 | $ 3,611 |
Loans secured by real estate in the process of foreclosure | 1,700 | ||
Acquired Loans | |||
Real Estate Properties [Line Items] | |||
Other real estate owned related to acquisitions | $ 41 | $ 133 |
BANK PREMISES AND EQUIPMENT - S
BANK PREMISES AND EQUIPMENT - Summary of Bank Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Right-of-use asset | $ 3,851 | $ 3,309 |
Less: Accumulated depreciation and amortization | (15,830) | (12,432) |
Bank premises and equipment, net | 56,303 | 50,916 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Bank premises and equipment, gross | 13,530 | 13,851 |
Buildings and improvements | ||
Property Plant And Equipment [Line Items] | ||
Bank premises and equipment, gross | 37,947 | 31,926 |
Furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Bank premises and equipment, gross | 13,196 | 10,915 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Bank premises and equipment, gross | 1,990 | 1,373 |
Construction-in-progress | ||
Property Plant And Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 1,619 | $ 1,974 |
BANK PREMISES AND EQUIPMENT - A
BANK PREMISES AND EQUIPMENT - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 4,570 | $ 3,462 | $ 2,553 |
Noninterest Expense | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 3,600 | $ 2,600 | $ 2,100 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 21, 2020branch_location | Mar. 01, 2019branch_location | |
Lessee, Lease, Description [Line Items] | ||||
Right-of-use asset | $ | $ 3,900 | |||
Lease liabilities | $ | 3,900 | |||
Rental income | $ | $ 200 | $ 8 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccruedLiabilitiesCurrentAndNoncurrent | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, remaining lease term | 3 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, remaining lease term | 11 years | |||
Mainland | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of branches leased | branch_location | 2 | |||
Number of branch locations | branch_location | 3 | |||
Plains Capital Bank | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of branch locations | branch_location | 2 |
LEASES - Quantitative Informati
LEASES - Quantitative Information Regarding Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Total operating lease cost | $ 599 | $ 341 |
Weighted-average remaining lease term (in years) | 8 years 7 months 6 days | 10 years 4 months 24 days |
Weighted-average discount rate | 2.80% | 3.10% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 593 |
2022 | 598 |
2023 | 595 |
2024 | 515 |
2025 | 476 |
Thereafter | 1,691 |
Total | $ 4,468 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) | Oct. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill and other intangible assets, net | $ 32,232,000 | $ 31,035,000 | ||
Accumulated impairment losses | 0 | 0 | ||
Goodwill | 28,100,000 | 26,100,000 | ||
Trademark intangible, carrying value | 100,000 | 100,000 | ||
Goodwill and trademark intangible asset impairment charges | $ 0 | 0 | ||
Other Operating Expenses | ||||
Business Acquisition [Line Items] | ||||
Amortization expense | $ 1,000,000 | $ 800,000 | $ 500,000 | |
Core Deposits | ||||
Business Acquisition [Line Items] | ||||
Weighted average amortization period remaining | 7 years 9 months 18 days | |||
Minimum | Core Deposits | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life of core deposit intangibles | 10 years | |||
Maximum | Core Deposits | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life of core deposit intangibles | 15 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Core Deposit Intangible Assets Activity (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 6,637 | $ 6,467 |
Accumulated amortization | (2,649) | (1,664) |
Net carrying amount | $ 3,988 | $ 4,803 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Future Amortization of Core Intangibles (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 882 | |
2022 | 773 | |
2023 | 663 | |
2024 | 554 | |
2025 | 444 | |
Thereafter | 672 | |
Net carrying amount | $ 3,988 | $ 4,803 |
DEPOSITS - Summary of Deposits
DEPOSITS - Summary of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Banking and Thrift, Interest [Abstract] | ||
Noninterest-bearing demand deposits | $ 448,230 | $ 351,905 |
Interest-bearing demand deposits | 496,745 | 335,478 |
Brokered deposits | 80,017 | 0 |
Money market deposit accounts | 186,307 | 198,999 |
Savings accounts | 141,134 | 115,324 |
Time deposits | 535,391 | 706,000 |
Total deposits | $ 1,887,824 | $ 1,707,706 |
DEPOSITS - Summary of Outstandi
DEPOSITS - Summary of Outstanding Time Deposit (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Banking and Thrift, Interest [Abstract] | ||
$0 to $99,999 | $ 161,957 | $ 225,951 |
$100,000 to $249,999 | 274,470 | 345,040 |
$250,000 and above | 98,964 | 135,009 |
Total | $ 535,391 | $ 706,000 |
DEPOSITS - Schedule of Contract
DEPOSITS - Schedule of Contractual Maturities of Time Deposits 100000 or More Outstanding (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Time remaining until maturity: | ||
Three months or less | $ 80,605 | $ 92,157 |
Over three through six months | 75,974 | 76,179 |
Over six through twelve months | 111,879 | 200,654 |
Over one year through three years | 94,178 | 95,495 |
Over three years | 10,798 | 15,564 |
Contractual maturities of time deposits of $100,000 or more outstanding | $ 373,434 | $ 480,049 |
DEPOSITS - Schedule of Maturiti
DEPOSITS - Schedule of Maturities of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Banking and Thrift, Interest [Abstract] | ||
2021 | $ 382,713 | |
2022 | 103,488 | |
2023 | 33,247 | |
2024 | 10,785 | |
2025 | 5,158 | |
Total | $ 535,391 | $ 706,000 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Banking and Thrift, Interest [Abstract] | ||
Public fund deposits | $ 86.6 | $ 103.4 |
Fair value U.S. government securities | 72.7 | 89.4 |
Total deposits outstanding | $ 38.8 | $ 76.3 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENT TO REPURCHASE (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift, Interest [Abstract] | |||
Securities sold under agreements for repurchase | $ 5,653 | $ 2,995 | |
Fair value of securities sold under agreements | $ 6,300 | $ 2,900 | |
Interest rate of securities sold under agreements | 0.20% | 0.75% | |
Weighted-average interest rate of securities sold under agreements | 0.30% | 1.32% | 0.99% |
SUBORDINATED DEBT SECURITIES (D
SUBORDINATED DEBT SECURITIES (Details) - USD ($) | Nov. 12, 2019 | Mar. 24, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Subordinated debt | $ 42,897,000 | $ 42,826,000 | ||
Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Issuance of debt | $ 25,000,000 | $ 18,600,000 | ||
Interest rate | 5.125% | 6.00% | ||
Subordinated debt | 42,900,000 | |||
Debt issuance costs | $ 700,000 | $ 800,000 | ||
Subordinated Debt | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis points | 3.49% | 3.945% |
OTHER BORROWED FUNDS - Summary
OTHER BORROWED FUNDS - Summary of Maturities and Weighted-Average Rate of FHLB Advances by Year of Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amount | ||
2020 | $ 0 | $ 53,100 |
2021 | 42,000 | 0 |
2024 | 23,500 | 23,500 |
2028 | 25,000 | 25,000 |
2033 | 30,000 | 30,000 |
Total fixed rate advances amount | $ 120,500 | $ 131,600 |
Weighted Average Rate | ||
2020 | 0.00% | 1.74% |
2021 | 0.11% | 0.00% |
2024 | 1.81% | 1.81% |
2028 | 1.77% | 1.77% |
2033 | 1.88% | 1.88% |
Weighted-average rate | 1.23% | 1.79% |
OTHER BORROWED FUNDS - Addition
OTHER BORROWED FUNDS - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Additional line of credit available with FHLB | $ 654,900,000 | |
Interest payment extension period | 60 months | |
Junior subordinated debt | $ 5,949,000 | $ 5,897,000 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Total lines of credit, available amount | 60,000,000 | 60,000,000 |
Total lines of credit, outstanding balances | 0 | $ 0 |
Loan Portfolio | ||
Debt Instrument [Line Items] | ||
Collateral agreement with the FHLB | 775,700,000 | |
Investment Securities | ||
Debt Instrument [Line Items] | ||
Collateral agreement with the FHLB | $ 9,000,000 |
OTHER BORROWED FUNDS - Junior S
OTHER BORROWED FUNDS - Junior Subordinated Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Carrying Value | $ 5,949 | $ 5,897 |
First Community Louisiana Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Carrying Value | 3,609 | |
BOJ Bancshares Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Carrying Value | 2,340 | |
Junior Subordinate Debt | ||
Debt Instrument [Line Items] | ||
Face Value | 6,702 | |
Junior Subordinate Debt | First Community Louisiana Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Face Value | $ 3,609 | |
Interest rate | 1.99% | |
Junior Subordinate Debt | First Community Louisiana Statutory Trust I | LIBOR | ||
Debt Instrument [Line Items] | ||
Variable Interest Rate | 1.77% | |
Junior Subordinate Debt | BOJ Bancshares Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Face Value | $ 3,093 | |
Interest rate | 2.12% | |
Junior Subordinate Debt | BOJ Bancshares Statutory Trust I | LIBOR | ||
Debt Instrument [Line Items] | ||
Variable Interest Rate | 1.90% |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flow Hedging | |||
Derivatives Fair Value [Line Items] | |||
Notional amount of derivative contract | $ 140,000,000 | ||
Interest Rate Swap | |||
Derivatives Fair Value [Line Items] | |||
Maximum length of time hedged cash flow hedge period | 9 years 7 months 6 days | ||
Notional amount of derivative contract | $ 80,000,000 | $ 50,000,000 | |
Gain (loss) on derivative instrument | (2,300,000) | 51,000 | |
Tax expense (benefit) | (600,000) | 14,000 | |
Gain on derivative instrument | $ 84,000 | ||
Income tax expense | $ 22,000 | ||
Interest Rate Swap | Accumulated other comprehensive income | |||
Derivatives Fair Value [Line Items] | |||
Accumulated loss in other comprehensive income | 1,800,000 | ||
Interest Rate Swap | Designated As Hedging Instrument | Cash Flow Hedging | Accrued Taxes And Other Liabilities | |||
Derivatives Fair Value [Line Items] | |||
Gross liabilities | 2,800,000 | ||
Gross assets | 600,000 | ||
Derivative financial instruments | $ 2,200,000 | ||
Interest Rate Swap | Designated As Hedging Instrument | Cash Flow Hedging | Other assets | |||
Derivatives Fair Value [Line Items] | |||
Fair value | $ 700,000 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 20, 2019 | Mar. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 12, 2019 | Mar. 24, 2017 |
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | |||||
Preferred stock, shares outstanding (in shares) | 0 | ||||||
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 | |||||
Common stock, shares outstanding (in shares) | 10,608,869 | 11,228,775 | 9,484,219 | ||||
Common stock issued in offering, net | $ 0 | $ 28,525 | $ 0 | ||||
Aggregate amount available for dividend payments without regulatory approval | $ 44,300 | ||||||
Subordinated Debt | |||||||
Class of Stock [Line Items] | |||||||
Interest rate | 5.125% | 6.00% | |||||
Mainland | |||||||
Class of Stock [Line Items] | |||||||
Merger consideration, aggregate shares of common stock (in shares) | 763,849 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares issued (in shares) | 1,290,323 | ||||||
Share price (in dollars per share) | $ 23.25 | $ 16.75 | $ 23.09 | ||||
Common stock issued in offering, net | $ 28,500 | ||||||
Repurchased common stock (in shares) | 661,504 | 359,906 | |||||
Common Stock | Mainland | |||||||
Class of Stock [Line Items] | |||||||
Merger consideration, aggregate shares of common stock (in shares) | 763,849 |
STOCKHOLDERS' EQUITY - AOCI Act
STOCKHOLDERS' EQUITY - AOCI Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of Period | $ 241,976 | $ 182,262 | $ 172,729 |
Net Change | (86) | 4,967 | (1,505) |
End of Period | 243,284 | 241,976 | 182,262 |
Unrealized gain (loss), available for sale, net | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of Period | 3,476 | (1,647) | (71) |
Net Change | 4,017 | 5,123 | (1,576) |
End of Period | 7,493 | 3,476 | (1,647) |
Reclassification of realized gain, net | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of Period | (2,131) | (1,925) | (1,914) |
Net Change | (1,808) | (206) | (11) |
End of Period | (3,939) | (2,131) | (1,925) |
Unrealized loss, transfer from available for sale to held to maturity, net | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of Period | 4 | 5 | 7 |
Net Change | (1) | (1) | (2) |
End of Period | 3 | 4 | 5 |
Change in fair value of interest rate swap designated as a cash flow hedge, net | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of Period | 542 | 491 | |
Net Change | (2,294) | 51 | |
End of Period | (1,752) | 542 | 491 |
Change in fair value of interest rate swap designated as a cash flow hedge, net | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of Period | 491 | 407 | |
Net Change | 84 | ||
End of Period | 491 | ||
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of Period | 1,891 | (3,076) | (1,571) |
Net Change | (86) | 4,967 | (1,505) |
End of Period | $ 1,805 | $ 1,891 | $ (3,076) |
STOCK-BASED COMPENSATION - Equi
STOCK-BASED COMPENSATION - Equity Incentive Plan (Detail) - The Plan | Dec. 31, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for grant (in shares) | 600,000 |
Stock Appreciation Rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining shares available for grant (in shares) | 242,408 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Options (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 58,993 | 36,984 | 31,788 |
Intrinsic value of stock options outstanding | $ 0.5 | ||
Stock option expense | 0.2 | $ 0.3 | $ 0.3 |
Unrecognized compensation cost related to stock options | $ 0.6 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period for recognition | 3 years 3 months 18 days | ||
Key Personnel | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 58,993 | 36,984 | 31,788 |
Key Personnel | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Time vested restricted stock, vesting period | 5 years | ||
Key Personnel | Stock options | Tranche one | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 20.00% | ||
Key Personnel | Stock options | Tranche two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 20.00% | ||
Key Personnel | Stock options | Tranche three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 20.00% | ||
Key Personnel | Stock options | Tranche four | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 20.00% | ||
Key Personnel | Stock options | Tranche five | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 20.00% |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | ||||
Beginning Balance (in shares) | 357,214 | 340,646 | 322,917 | |
Granted (in shares) | 58,993 | 36,984 | 31,788 | |
Forfeited (in shares) | (4,585) | 0 | (1,644) | |
Exercised (in shares) | (3,334) | (20,416) | (12,415) | |
Ending Balance (in shares) | 408,288 | 357,214 | 340,646 | 322,917 |
Exercisable (in shares) | 276,855 | |||
Weighted Average Price | ||||
Beginning balance (in dollars per share) | $ 16.96 | $ 15.98 | $ 15.09 | |
Granted (in dollars per share) | 16.96 | 24.40 | 20.25 | |
Forfeited (in dollars per share) | 21.36 | 0 | 14 | |
Exercised (in dollars per share) | 14 | 14.06 | 14.07 | |
Ending balance (in dollars per share) | 17.66 | $ 16.96 | $ 15.98 | $ 15.09 |
Exercisable (in dollars per share) | $ 15.67 | |||
Weighted Average Remaining Contractual Term (Years) | ||||
Outstanding, term | 5 years 6 months 25 days | 5 years 11 months 4 days | 6 years 5 months 26 days | 7 years 2 months 8 days |
Exercisable, term | 4 years 5 months 19 days |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Assumptions Used for Option Awards Granted (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Dividend yield | 1.12% | 0.82% |
Expected volatility | 26.39% | 27.26% |
Risk-free interest rate | 0.99% | 2.63% |
Expected term (in years) | 6 years 6 months | 6 years 6 months |
Weighted-average grant date fair value (in dollars per share) | $ 5.17 | $ 7.30 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock and Restricted Stock Units (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period for recognition | 4 years 5 months 19 days | ||
Restricted stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Time vested restricted stock, vesting period | 2 years | ||
Restricted stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Time vested restricted stock, vesting period | 5 years | ||
Restricted Stock And Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1.4 | $ 1.1 | $ 0.8 |
Unearned stock-based compensation | $ 3.4 | ||
Weighted average period for recognition | 3 years 3 months 18 days | ||
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock granted (in shares) | 79,439 | ||
Unearned stock-based compensation | $ 2.8 | $ 2.1 | |
Employee | Restricted Stock And Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 5 years | ||
Director | Restricted Stock And Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 2 years | ||
Employees and Directors | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock granted (in shares) | 102,953 | 79,439 | |
Employees and Directors | Restricted stock units | Tranche one | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Time vested restricted stock, vesting period | 5 years | 5 years | |
Stock granted (in shares) | 91,268 | 68,430 | |
Employees and Directors | Restricted stock units | Tranche two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Time vested restricted stock, vesting period | 2 years | 2 years | |
Stock granted (in shares) | 11,685 | 11,009 | |
Employees and Directors | Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock granted (in shares) | 102,953 | 60,260 | |
Employees and Directors | Restricted Stock Awards | Tranche one | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Time vested restricted stock, vesting period | 5 years | ||
Stock granted (in shares) | 51,263 | ||
Employees and Directors | Restricted Stock Awards | Tranche two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Time vested restricted stock, vesting period | 2 years | ||
Stock granted (in shares) | 8,997 |
STOCK-BASED COMPENSATION - Time
STOCK-BASED COMPENSATION - Time Vested RSA and RSU (Detail) - Restricted Stock Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | ||
Beginning balance (in shares) | 168,216 | 135,848 |
Granted (in shares) | 79,439 | |
Forfeited (in shares) | (10,283) | (5,828) |
Earned and issued (in shares) | (53,740) | (41,243) |
Ending balance (in shares) | 207,146 | 168,216 |
Weighted Avg Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 22.43 | $ 20.47 |
Granted (in dollars per share) | 21.41 | 24.46 |
Forfeited (in dollars per share) | 22.16 | 23.70 |
Earned and issued (in dollars per share) | 21.29 | 19.65 |
Ending balance (in dollars per share) | $ 22.23 | $ 22.43 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan requisite minimum age | 21 years | ||
Defined benefits plan minimum requisite service period | 3 months | ||
Employer matching contributions percentage on employees matching annual salary | 4.00% | ||
Employer matching contributions to the plan | $ 900,000 | $ 800,000 | $ 700,000 |
Employer discretionary contribution amount paid | $ 200,000 | 200,000 | |
Employers discretionary contribution annual vesting percentage | 20.00% | ||
Employers discretionary contribution, vesting period | 5 years | ||
Award requisite service period | 2 years | ||
Total vesting period | 6 years | ||
Deferred compensation arrangement with individual distributions paid | $ 2,000 | ||
Liability recorded on balance sheet related to plans | 1,900,000 | $ 1,600,000 | |
Citizens Bancshares, Inc. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement with individual distributions paid | $ 2,000 | ||
Salary Continuation Agreements | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement, eligibility age | 65 years | ||
Payment period | 120 months | ||
Termination age | 65 years |
INCOME TAXES - Summary of Expen
INCOME TAXES - Summary of Expense for Income Taxes Included in Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 4,838 | $ 3,966 | $ 2,789 |
Deferred | (1,388) | 153 | 841 |
Total income tax expense | $ 3,450 | $ 4,119 | $ 3,630 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Tax cuts and jobs act, income tax expense (benefit) | $ 0.3 | ||
Operating loss carryforwards | $ 2.1 | $ 2.7 | |
Expire in 2033 | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 0.4 | ||
Expire in 2039 | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 1.7 |
INCOME TAXES - Summary of Provi
INCOME TAXES - Summary of Provision for Federal Income Taxes Differs from that Computed by Applying the Federal Statutory Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax based on statutory rate | $ 3,641 | $ 4,401 | $ 3,619 |
Increase (decrease) resulting from: | |||
Effect of tax-exempt income | (299) | (250) | (249) |
Acquisition costs | 0 | 32 | 29 |
Historical tax credits | 29 | 6 | 6 |
Effect of tax rate change | 0 | 0 | 338 |
State taxes | 33 | 15 | 0 |
Other | 46 | (85) | (113) |
Total income tax expense | $ 3,450 | $ 4,119 | $ 3,630 |
Effective rate | 19.90% | 19.70% | 21.10% |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax liabilities: | ||
Depreciation | $ (3,746) | $ (2,903) |
FHLB stock dividend | (63) | (122) |
Unrealized gain on available for sale securities | (480) | (502) |
Basis difference in acquired assets and liabilities | (1,010) | (1,123) |
Operating lease right-of-use asset | (809) | (695) |
Other | (149) | (88) |
Gross deferred tax liability | (6,257) | (5,433) |
Deferred tax assets: | ||
Allowance for loan losses | 4,012 | 2,219 |
Net operating loss carryforward | 440 | 564 |
Deferred compensation | 404 | 372 |
Basis difference in acquired assets and liabilities | 380 | 481 |
Historical tax credit | 0 | 155 |
Employee and director stock awards | 524 | 419 |
Operating lease liability | 828 | 709 |
Unearned loan fees | 667 | 190 |
Other | 362 | 229 |
Gross deferred tax assets | 7,617 | 5,338 |
Net deferred tax asset (liability) | $ 1,360 | |
Net deferred tax asset (liability) | $ (95) |
FAIR VALUES OF FINANCIAL INST_3
FAIR VALUES OF FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Transfers out of Level 3 | $ 0 | $ 1,335,000 | ||
Liabilities measured at fair value on a recurring basis | $ 0 | 0 | 0 | |
Realized gains (losses) included in net income | 0 | 0 | $ 0 | |
Liabilities measured on a nonrecurring basis | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Liabilities measured on a nonrecurring basis | 0 | |||
Corporate bonds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Transfers out of Level 3 | $ 1,300,000 | 0 | 1,335,000 | |
Realized gains (losses) included in net income | $ 0 | $ 0 |
FAIR VALUES OF FINANCIAL INST_4
FAIR VALUES OF FINANCIAL INSTRUMENTS - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | $ 268,410 | $ 259,805 |
Obligations of U.S. government agencies and corporations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 36,821 | 33,651 |
Obligations of state and political subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 22,137 | 33,449 |
Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 27,708 | 19,163 |
Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 122,598 | 101,946 |
Commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 59,146 | 71,596 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 1,670 | 2,097 |
Derivative financial instruments | 687 | |
Total assets | 270,080 | 262,589 |
Derivative financial instruments | 2,216 | |
Fair Value, Measurements, Recurring | Obligations of U.S. government agencies and corporations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 36,821 | 33,651 |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 22,137 | 33,449 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 27,708 | 19,163 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 122,598 | 101,946 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 59,146 | 71,596 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 1,670 | 2,097 |
Derivative financial instruments | 0 | |
Total assets | 1,670 | 2,097 |
Derivative financial instruments | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Obligations of U.S. government agencies and corporations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Derivative financial instruments | 687 | |
Total assets | 249,894 | 241,117 |
Derivative financial instruments | 2,216 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Obligations of U.S. government agencies and corporations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 36,821 | 33,651 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 3,621 | 14,074 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 27,708 | 19,163 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 122,598 | 101,946 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 59,146 | 71,596 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Derivative financial instruments | 0 | |
Total assets | 18,516 | 19,375 |
Derivative financial instruments | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Obligations of U.S. government agencies and corporations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 18,516 | 19,375 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities, fair value | $ 0 | $ 0 |
FAIR VALUES OF FINANCIAL INST_5
FAIR VALUES OF FINANCIAL INSTRUMENTS - Summary of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning balance | $ 19,375,000 | $ 20,143,000 | ||
Realized gains (losses) included in net income | 0 | 0 | $ 0 | |
Unrealized gains included in other comprehensive (loss) income | (859,000) | 590,000 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Maturities, prepayments, and calls | 0 | (23,000) | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | (1,335,000) | ||
Fair value, ending balance | $ 19,375,000 | 18,516,000 | 19,375,000 | 20,143,000 |
Obligations of state and political subdivisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning balance | 19,375,000 | 18,808,000 | ||
Realized gains (losses) included in net income | 0 | 0 | ||
Unrealized gains included in other comprehensive (loss) income | (859,000) | 590,000 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Maturities, prepayments, and calls | 0 | (23,000) | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value, ending balance | 19,375,000 | 18,516,000 | 19,375,000 | 18,808,000 |
Corporate bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning balance | 0 | 1,335,000 | ||
Realized gains (losses) included in net income | 0 | 0 | ||
Unrealized gains included in other comprehensive (loss) income | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Maturities, prepayments, and calls | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (1,300,000) | 0 | (1,335,000) | |
Fair value, ending balance | $ 0 | $ 0 | $ 0 | $ 1,335,000 |
FAIR VALUES OF FINANCIAL INST_6
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information About Significant Unobservable Inputs Used In Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value | $ 268,410 | $ 259,805 |
Obligations of state and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value | 22,137 | 33,449 |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value | 22,137 | $ 33,449 |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Valuation Technique, Discounted Cash Flow | Measurement Input, Appraised Value | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value | $ 18,516 | |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Valuation Technique, Discounted Cash Flow | Measurement Input, Appraised Value | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Obligations of State and Political Subdivisions | 0 | |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Valuation Technique, Discounted Cash Flow | Measurement Input, Appraised Value | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Obligations of State and Political Subdivisions | 0.004 |
FAIR VALUES OF FINANCIAL INST_7
FAIR VALUES OF FINANCIAL INSTRUMENTS - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Detail) - Fair Value, Measurements, Nonrecurring $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 259 | $ 55 |
Other real estate owned | $ 635 | |
Measurement Input, Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned, measurement input | 0.04 | |
Measurement Input, Discount Rate | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans, measurement input | 0.02 | 0 |
Measurement Input, Discount Rate | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans, measurement input | 1 | 1 |
Measurement Input, Discount Rate | Weighted Average Discount | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned, measurement input | 0.04 | |
Impaired loans, measurement input | 0.34 | 0.31 |
FAIR VALUES OF FINANCIAL INST_8
FAIR VALUES OF FINANCIAL INSTRUMENTS - Summary of Estimated Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial liabilities: | ||
Junior subordinated debt | $ 5,949 | $ 5,897 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 35,368 | 44,308 |
Federal funds sold | 387 | |
Investment securities | 280,844 | 274,214 |
Equity securities | 16,599 | 19,315 |
Loans, net of allowance | 1,839,955 | 1,681,275 |
Derivative financial instruments | 687 | |
Financial liabilities: | ||
Deposits, noninterest-bearing | 448,230 | 351,905 |
Deposits, interest-bearing | 1,439,594 | 1,355,801 |
FHLB short-term advances and repurchase agreements | 47,653 | 56,095 |
FHLB long-term advances | 78,500 | 78,500 |
Junior subordinated debt | 5,949 | 5,897 |
Subordinated debt | 43,600 | 43,600 |
Derivative financial instruments | 2,216 | |
Estimated Fair Value | ||
Financial assets: | ||
Cash and due from banks | 35,368 | 44,308 |
Federal funds sold | 387 | |
Investment securities | 281,059 | 274,285 |
Equity securities | 16,599 | 19,316 |
Loans, net of allowance | 1,861,971 | 1,680,364 |
Derivative financial instruments | 687 | |
Financial liabilities: | ||
Deposits, noninterest-bearing | 448,230 | 351,905 |
Deposits, interest-bearing | 1,504,644 | 1,368,194 |
FHLB short-term advances and repurchase agreements | 47,653 | 56,095 |
FHLB long-term advances | 82,101 | 76,635 |
Junior subordinated debt | 5,299 | 7,747 |
Subordinated debt | 42,336 | 56,399 |
Derivative financial instruments | 2,216 | |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and due from banks | 35,368 | 44,308 |
Federal funds sold | 387 | |
Investment securities | 0 | 0 |
Equity securities | 1,670 | 2,097 |
Loans, net of allowance | 0 | 0 |
Derivative financial instruments | 0 | |
Financial liabilities: | ||
Deposits, noninterest-bearing | 0 | 0 |
Deposits, interest-bearing | 0 | 0 |
FHLB short-term advances and repurchase agreements | 0 | 0 |
FHLB long-term advances | 0 | 0 |
Junior subordinated debt | 0 | 0 |
Subordinated debt | 0 | 0 |
Derivative financial instruments | 0 | |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | |
Investment securities | 254,306 | 245,410 |
Equity securities | 14,929 | 17,219 |
Loans, net of allowance | 0 | 0 |
Derivative financial instruments | 687 | |
Financial liabilities: | ||
Deposits, noninterest-bearing | 448,230 | 351,905 |
Deposits, interest-bearing | 0 | 0 |
FHLB short-term advances and repurchase agreements | 47,653 | 56,095 |
FHLB long-term advances | 0 | 0 |
Junior subordinated debt | 0 | 0 |
Subordinated debt | 42,336 | 56,399 |
Derivative financial instruments | 2,216 | |
Estimated Fair Value | Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | |
Investment securities | 26,753 | 28,875 |
Equity securities | 0 | 0 |
Loans, net of allowance | 1,861,971 | 1,680,364 |
Derivative financial instruments | 0 | |
Financial liabilities: | ||
Deposits, noninterest-bearing | 0 | 0 |
Deposits, interest-bearing | 1,504,644 | 1,368,194 |
FHLB short-term advances and repurchase agreements | 0 | 0 |
FHLB long-term advances | 82,101 | 76,635 |
Junior subordinated debt | 5,299 | 7,747 |
Subordinated debt | 0 | $ 0 |
Derivative financial instruments | $ 0 |
REGULATORY MATTERS - Summary of
REGULATORY MATTERS - Summary of Actual Capital Amounts and Ratios (Detail) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Investar Holding Corporation | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Tier 1 leverage capital, Actual Amount | $ 215,750 | $ 215,550 |
Tier 1 common equity risk-based capital, Actual Amount | 209,250 | 209,050 |
Tier 1 risk-based capital, Actual Amount | 215,750 | 215,550 |
Total risk-based capital, Actual Amount | $ 279,253 | $ 269,171 |
Tier 1 leverage capital, Actual Ratio | 0.0949 | 0.1045 |
Tier 1 common equity risk-based capital, Actual Ratio | 11.02% | 11.67% |
Tier 1 risk-based capital, Actual Ratio | 0.1136 | 0.1203 |
Total risk-based capital, Actual Ratio | 0.1471 | 0.1502 |
Tier 1 leverage capital, Capital Adequacy Amount | $ 90,975 | $ 82,546 |
Tier 1 common equity risk-based capital, Capital Adequacy Amount | 132,890 | 125,412 |
Tier 1 risk-based capital, Capital Adequacy Amount | 161,366 | 152,286 |
Total risk-based capital, Capital Adequacy Amount | $ 199,335 | $ 188,118 |
Tier 1 leverage capital, Capital Adequacy Ratio | 0.0400 | 0.0400 |
Tier 1 common equity risk-based capital, Capital Adequacy Ratio | 7.00% | 7.00% |
Tier 1 risk-based capital, Capital Adequacy Ratio | 0.0850 | 0.0850 |
Total risk-based capital, Capital Adequacy Ratio | 0.1050 | 0.1050 |
Investar Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Tier 1 leverage capital, Actual Amount | $ 237,684 | $ 222,316 |
Tier 1 common equity risk-based capital, Actual Amount | 237,684 | 222,316 |
Tier 1 risk-based capital, Actual Amount | 237,684 | 222,316 |
Total risk-based capital, Actual Amount | $ 258,291 | $ 233,111 |
Tier 1 leverage capital, Actual Ratio | 0.1047 | 0.1077 |
Tier 1 common equity risk-based capital, Actual Ratio | 12.53% | 12.43% |
Tier 1 risk-based capital, Actual Ratio | 0.1253 | 0.1243 |
Total risk-based capital, Actual Ratio | 0.1362 | 0.1303 |
Tier 1 leverage capital, Capital Adequacy Amount | $ 90,837 | $ 82,578 |
Tier 1 common equity risk-based capital, Capital Adequacy Amount | 132,750 | 125,238 |
Tier 1 risk-based capital, Capital Adequacy Amount | 161,196 | 152,074 |
Total risk-based capital, Capital Adequacy Amount | $ 199,125 | $ 187,857 |
Tier 1 leverage capital, Capital Adequacy Ratio | 0.0400 | 0.0400 |
Tier 1 common equity risk-based capital, Capital Adequacy Ratio | 7.00% | 7.00% |
Tier 1 risk-based capital, Capital Adequacy Ratio | 0.0850 | 0.0850 |
Total risk-based capital, Capital Adequacy Ratio | 0.1050 | 0.1050 |
Tier 1 leverage capital, Well Capitalized Amount | $ 113,546 | $ 103,223 |
Tier 1 common equity risk-based capital, Well Capitalized Amount | 123,268 | 116,293 |
Tier 1 risk-based capital, Well Capitalized Amount | 151,714 | 143,130 |
Total risk-based capital, Well Capitalized Amount | $ 189,642 | $ 178,912 |
Tier 1 leverage capital, Well Capitalized Ratio | 0.0500 | 0.0500 |
Tier 1 common equity risk-based capital, Well Capitalized Ratio | 6.50% | 6.50% |
Tier 1 risk-based capital, Well Capitalized Ratio | 0.0800 | 0.0800 |
Total risk-based capital, Well Capitalized Ratio | 0.1000 | 0.1000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | |||
Reserve for unfunded loan commitments | $ 200 | $ 100 | |
Commitment to fund investment in SBIC qualified funds | $ 1,000 | ||
Automatic renewal period | 1 year | ||
Notice required for non-renewal, term | 90 days | ||
Chief Executive Officer | |||
Loss Contingencies [Line Items] | |||
Minimum annual base salary | $ 510 | ||
Chief Financial Officer | |||
Loss Contingencies [Line Items] | |||
Minimum annual base salary | $ 285 | ||
Letter of credit | |||
Loss Contingencies [Line Items] | |||
Letters of credit expiration period | 1 year |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Summary of Commitments to Extend Credit (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | $ 14,420 | $ 11,475 |
Loan commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | $ 266,039 | $ 242,180 |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($) $ in Millions | May 29, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Court Plaza Investments L L C | ||||
Related Party Transaction [Line Items] | ||||
Transaction with related parties | $ 1.8 | |||
JCD | ||||
Related Party Transaction [Line Items] | ||||
Transaction with related parties | $ 0.9 | $ 0.3 | $ 0.6 |
PARENT ONLY BALANCE SHEETS, S_3
PARENT ONLY BALANCE SHEETS, STATEMENTS OF OPERATIONS AND STATEMENTS OF CASH FLOWS - Parent Company Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||||
Cash and due from banks | $ 25,672 | $ 23,769 | ||
Trademark intangible | 100 | 100 | ||
Other assets | 5,980 | 7,406 | ||
Total assets | 2,321,181 | 2,148,916 | ||
LIABILITIES | ||||
Subordinated debt, net of unamortized issuance costs | 42,897 | 42,826 | ||
Junior subordinated debt | 5,949 | 5,897 | ||
Total liabilities | 2,077,897 | 1,906,940 | ||
STOCKHOLDERS’ EQUITY | ||||
Common stock | 10,609 | 11,229 | ||
Surplus | 159,485 | 168,658 | ||
Retained earnings | 71,385 | 60,198 | ||
Accumulated other comprehensive income | 1,805 | 1,891 | ||
Total stockholders’ equity | 243,284 | 241,976 | $ 182,262 | $ 172,729 |
Total liabilities and stockholders’ equity | 2,321,181 | 2,148,916 | ||
Investar Holding Corporation | ||||
ASSETS | ||||
Cash and due from banks | 19,678 | 35,535 | ||
Equity securities | 1,178 | 1,615 | ||
Accounts receivable | 0 | 3 | ||
Due from bank subsidiary | 909 | 712 | ||
Investment in bank subsidiary | 271,619 | 255,141 | ||
Investment in trust | 202 | 202 | ||
Investment in tax credit entity | 0 | 87 | ||
Trademark intangible | 100 | 100 | ||
Other assets | 63 | 37 | ||
Total assets | 293,749 | 293,432 | ||
LIABILITIES | ||||
Subordinated debt, net of unamortized issuance costs | 42,897 | 42,826 | ||
Junior subordinated debt | 5,949 | 5,897 | ||
Accounts payable | 167 | 1,579 | ||
Accrued interest payable | 606 | 465 | ||
Dividend payable | 694 | 679 | ||
Deferred tax liability | 152 | 10 | ||
Total liabilities | 50,465 | 51,456 | ||
STOCKHOLDERS’ EQUITY | ||||
Common stock | 10,609 | 11,229 | ||
Surplus | 159,485 | 168,658 | ||
Retained earnings | 71,385 | 60,198 | ||
Accumulated other comprehensive income | 1,805 | 1,891 | ||
Total stockholders’ equity | 243,284 | 241,976 | ||
Total liabilities and stockholders’ equity | $ 293,749 | $ 293,432 |
PARENT ONLY BALANCE SHEETS, S_4
PARENT ONLY BALANCE SHEETS, STATEMENTS OF OPERATIONS AND STATEMENTS OF CASH FLOWS - Parent Company Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE | |||
Change in the fair value of equity securities | $ 268 | $ 341 | $ (267) |
EXPENSE | |||
Interest on borrowings | 4,884 | 5,318 | 5,127 |
Acquisition expense | 1,062 | 2,090 | 1,445 |
Income tax benefit | (3,450) | (4,119) | (3,630) |
Net income | 13,889 | 16,839 | $ 13,606 |
Investar Holding Corporation | |||
REVENUE | |||
Dividends received from bank subsidiary | 0 | 6,600 | |
Dividends on corporate stock | 78 | 30 | |
Partnership income | 19 | 0 | |
Change in the fair value of equity securities | 258 | 327 | |
Interest income from investment in trust | 5 | 9 | |
Total revenue | 360 | 6,966 | |
EXPENSE | |||
Interest on borrowings | 2,713 | 1,686 | |
Management fees to bank subsidiary | 360 | 360 | |
Acquisition expense | 72 | 31 | |
Other expense | 574 | 440 | |
Total expense | 3,719 | 2,517 | |
(Loss) income before income taxes and equity in undistributed income of bank subsidiary | (3,359) | 4,449 | |
Equity in undistributed income of bank subsidiary | 16,563 | 11,941 | |
Income tax benefit | 685 | 449 | |
Net income | $ 13,889 | $ 16,839 |
PARENT ONLY BALANCE SHEETS, S_5
PARENT ONLY BALANCE SHEETS, STATEMENTS OF OPERATIONS AND STATEMENTS OF CASH FLOWS - Parent Company Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income | $ 13,889 | $ 16,839 | $ 13,606 |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Change in the fair value of equity securities | (268) | (341) | 267 |
Net change in: | |||
Other assets | (953) | (2,015) | 995 |
Accrued other liabilities | (4,372) | 990 | (2,582) |
Net cash provided by operating activities | 17,749 | 18,567 | 16,412 |
Cash flows from investing activities | |||
Distributions from investments | 93 | 162 | 39 |
Purchases of equity securities | (6,165) | (7,040) | (4,265) |
Proceeds from the sale of equity securities | 9,283 | 2,986 | 1,299 |
Net cash provided by (used in) investing activities | (148,143) | (103,063) | (182,401) |
Cash flows from financing activities | |||
Cash dividends paid on common stock | (2,686) | (2,167) | (1,468) |
Proceeds from common stock offering, net of issuance costs | 0 | 28,525 | 0 |
Payments to repurchase common stock | (11,112) | (8,326) | (3,368) |
Proceeds from stock options | 46 | 287 | 1,036 |
Proceeds from subordinated debt, net of costs | 0 | 24,558 | 0 |
Net cash (used in) provided by financing activities | 121,067 | 112,051 | 152,708 |
Net (decrease) increase in cash and cash equivalents | (9,327) | 27,555 | (13,281) |
Cash and cash equivalents, beginning of period | 44,695 | 17,140 | 30,421 |
Cash and cash equivalents, end of period | 35,368 | 44,695 | 17,140 |
Cash payments for: | |||
Interest on borrowings | 20,702 | 24,396 | 16,139 |
Investar Holding Corporation | |||
Cash flows from operating activities | |||
Net income | 13,889 | 16,839 | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Equity in undistributed earnings of bank subsidiary | (16,563) | (11,941) | |
Change in the fair value of equity securities | (258) | (327) | |
Amortization of debt issuance costs and purchase accounting adjustments | 123 | 105 | |
Net change in: | |||
Due from bank subsidiary | (197) | (261) | |
Other assets | 10 | 25 | |
Deferred tax asset | 142 | 62 | |
Accrued other liabilities | (23) | 2,776 | |
Net cash provided by operating activities | (2,877) | 7,278 | |
Cash flows from investing activities | |||
Capital contributed to bank subsidiary | 0 | (23,250) | |
Repayment of investment in and advances to subsidiary | 0 | 8,000 | |
Distributions from investments | 77 | 82 | |
Purchases of equity securities | (2,449) | (144) | |
Proceeds from the sale of equity securities | 3,144 | 88 | |
Net cash provided by (used in) investing activities | 772 | (15,224) | |
Cash flows from financing activities | |||
Cash dividends paid on common stock | (2,686) | (2,167) | |
Proceeds from common stock offering, net of issuance costs | 0 | 28,525 | |
Payments to repurchase common stock | (11,112) | (8,326) | |
Proceeds from stock options | 46 | 287 | |
Proceeds from subordinated debt, net of costs | 0 | 24,558 | |
Net cash (used in) provided by financing activities | (13,752) | 42,877 | |
Net (decrease) increase in cash and cash equivalents | (15,857) | 34,931 | |
Cash and cash equivalents, beginning of period | 35,535 | 604 | |
Cash and cash equivalents, end of period | 19,678 | 35,535 | $ 604 |
Cash payments for: | |||
Interest on borrowings | $ 2,571 | $ 1,513 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per common share - basic | |||
Net income | $ 13,889 | $ 16,839 | $ 13,606 |
Less: income allocated to participating securities | (73) | (164) | (192) |
Net income allocated to common shareholders | $ 13,816 | $ 16,675 | $ 13,414 |
Weighted-average basic shares outstanding (in shares) | 10,850,936 | 9,931,497 | 9,538,891 |
Basic earnings per share (in dollars per share) | $ 1.27 | $ 1.68 | $ 1.41 |
Earnings per common share - diluted | |||
Net income allocated to common shareholders | $ 13,816 | $ 16,676 | $ 13,417 |
Weighted-average basic shares outstanding (in shares) | 10,850,936 | 9,931,497 | 9,538,891 |
Dilutive effect of securities (in shares) | 14,911 | 99,521 | 125,952 |
Total weighted average diluted shares outstanding (in shares) | 10,865,847 | 10,031,018 | 9,664,843 |
Diluted earnings per share (in dollars per share) | $ 1.27 | $ 1.66 | $ 1.39 |
EARNINGS PER SHARE - Antidiluti
EARNINGS PER SHARE - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average number of shares that have an antidilutive effect in the calculation of diluted earnings per common share (in dollars per share) | 71 | 0 | 6,306 |
Restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average number of shares that have an antidilutive effect in the calculation of diluted earnings per common share (in dollars per share) | 10,968 | 388 | 1,364 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average number of shares that have an antidilutive effect in the calculation of diluted earnings per common share (in dollars per share) | 62,754 | 7,550 | 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 21, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||
Cash consideration | $ 10,809 | $ 0 | $ 0 | |
Subsequent Event | Cheaha | ||||
Subsequent Event [Line Items] | ||||
Cash (in dollars per shares) | $ 80 | |||
Cash consideration | $ 41,100 | |||
Adjusted tangible shareholders' equity | $ 27,600 |
Uncategorized Items - istr-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-01 [Member] |