Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Entity File Number | 001-41315 | |
Entity Registrant Name | John Marshall Bancorp, Inc. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 81-5424879 | |
Entity Address, Address Line One | 1943 Isaac Newton Square East | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Reston | |
Entity Address State Or Province | VA | |
Entity Address, Postal Zip Code | 20190 | |
City Area Code | 703 | |
Local Phone Number | 584-0840 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | JMSB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,221,106 | |
Entity Central Index Key | 0001710482 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and due from banks | $ 5,696 | $ 7,424 |
Interest-bearing deposits in other banks | 147,320 | 91,581 |
Total cash and cash equivalents | 153,016 | 99,005 |
Securities available-for-sale, at fair value | 158,757 | 169,993 |
Securities held-to-maturity at amortized cost, fair value of $77,995 and $79,532 as of March 31, 2024 and December 31, 2023, respectively | 94,662 | 95,505 |
Securities held-to-maturity, net | 94,662 | 95,505 |
Restricted securities, at cost | 4,962 | 5,012 |
Equity securities, at fair value | 2,960 | 2,792 |
Loans, net of unearned income | 1,825,931 | 1,859,967 |
Less: Allowance for loan credit losses | (18,671) | (19,543) |
Loans, net | 1,807,260 | 1,840,424 |
Bank premises and equipment, net | 1,244 | 1,281 |
Accrued interest receivable | 6,410 | 6,110 |
Right of use assets | 3,872 | 4,176 |
Other assets | 18,694 | 18,251 |
Total assets | 2,251,837 | 2,242,549 |
Deposits: | ||
Non-interest bearing demand deposits | 404,669 | 411,374 |
Interest-bearing demand deposits | 644,580 | 607,971 |
Savings deposits | 50,664 | 52,061 |
Time deposits | 801,077 | 835,194 |
Total deposits | 1,900,990 | 1,906,600 |
Federal funds purchased | 10,000 | |
Federal Reserve Bank borrowings | 77,000 | 54,000 |
Subordinated debt | 24,729 | 24,708 |
Accrued interest payable | 2,949 | 4,559 |
Lease liabilities | 4,141 | 4,446 |
Other liabilities | 7,478 | 8,322 |
Total liabilities | 2,017,287 | 2,012,635 |
Commitments and contingencies | ||
Shareholders' Equity | ||
Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued | ||
Additional paid-in capital | 96,469 | 95,636 |
Retained earnings | 150,592 | 146,388 |
Accumulated other comprehensive loss | (12,653) | (12,251) |
Total shareholders' equity | 234,550 | 229,914 |
Total liabilities and shareholders' equity | 2,251,837 | 2,242,549 |
Common stock, non voting | ||
Shareholders' Equity | ||
Common stock | ||
Common stock, voting | ||
Shareholders' Equity | ||
Common stock | $ 142 | $ 141 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Securities held-to-maturity, fair value | $ 77,995 | $ 79,532 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, voting | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, issued (in shares) | 14,209,606 | 14,148,533 |
Common stock, outstanding (in shares) | 14,209,606 | 14,148,533 |
Common stock, voting | Unvested shares | ||
Common stock, issued (in shares) | 45,929 | 47,318 |
Common stock, non voting | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, issued (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 23,623 | $ 20,425 |
Interest on investment securities, taxable | 1,269 | 2,251 |
Interest on investment securities, tax-exempt | 9 | 19 |
Dividends | 82 | 75 |
Interest on deposits in banks | 1,936 | 683 |
Total interest and dividend income | 26,919 | 23,453 |
Interest Expense | ||
Deposits | 13,931 | 8,559 |
Federal funds purchased | 2 | 9 |
Federal Home Loan Bank advances and letter of credit fees | 67 | |
Federal Reserve Bank borrowings | 893 | |
Subordinated debt | 349 | 349 |
Total interest expense | 15,175 | 8,984 |
Net interest income | 11,744 | 14,469 |
Provision for (recovery of) credit losses | (776) | (774) |
Net interest income after provision for (recovery of) credit losses | 12,520 | 15,243 |
Non-interest Income | ||
Service charges on deposit accounts | 88 | 72 |
Bank owned life insurance | 100 | |
Other service charges and fees | 149 | 203 |
Losses on sale of available-for-sale securities | (202) | |
Insurance commissions | 252 | 206 |
Gain on sale of government guaranteed loans | 133 | |
Non-qualified deferred compensation plan asset gains, net | 124 | 89 |
Other income | 72 | 98 |
Total non-interest income | 818 | 566 |
Non-interest Expenses | ||
Salaries and employee benefits | 4,810 | 4,912 |
Occupancy expense of premises | 451 | 470 |
Furniture and equipment expenses | 297 | 296 |
Other operating expenses | 2,366 | 2,092 |
Total non-interest expenses | 7,924 | 7,770 |
Income before income taxes | 5,414 | 8,039 |
Income tax expense | 1,210 | 1,735 |
Net income | $ 4,204 | $ 6,304 |
Earnings per share, basic | $ 0.30 | $ 0.45 |
Earnings per share, diluted | $ 0.30 | $ 0.44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Comprehensive Income | ||
Net Income (Loss) | $ 4,204 | $ 6,304 |
Other comprehensive income: | ||
Unrealized gain/(loss) on available-for-sale securities, net of tax of $(101) and $981 for the three months ended March 31, 2024 and March 31, 2023, respectively | (380) | 3,689 |
Reclassification adjustment for losses on available-for-sale securities included in net income, net of tax of $42 for the three months ended March 31, 2023 | (160) | |
Amortization of unrealized gains on securities transferred to held-to-maturity, net of tax of $(6) and $(7) for the three months ended March 31, 2024 and March 31, 2023, respectively | (22) | (27) |
Total other comprehensive (loss) income | (402) | 3,502 |
Total comprehensive income | $ 3,802 | $ 9,806 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Comprehensive Income | ||
Unrealized (loss) on available-for-sale securities, net of tax | $ (101) | $ 981 |
Reclassification adjustment for losses on available-for-sale securities included in net income, net of tax | 42 | |
Amortization of unrealized gains on securities transferred to held-to-maturity, net of tax | $ (6) | $ (7) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive (Loss) | Cumulative Effect, Period of Adoption, Adjustment | Total |
Beginning balance at Dec. 31, 2022 | $ 141 | $ 94,726 | $ (2,292) | $ 146,630 | $ (28,697) | $ (2,292) | $ 212,800 |
Beginning balance (in shares) at Dec. 31, 2022 | 14,043,801 | ||||||
Net Income (Loss) | 6,304 | 6,304 | |||||
Other comprehensive income (loss) | 3,502 | 3,502 | |||||
Exercise of stock options | 312 | 312 | |||||
Exercise of stock options (in shares) | 26,625 | ||||||
Restricted stock vesting (in shares) | 6,381 | ||||||
Share-based compensation | 197 | 197 | |||||
Ending balance at Mar. 31, 2023 | $ 141 | 95,235 | 150,642 | (25,195) | 220,823 | ||
Ending balance (in shares) at Mar. 31, 2023 | 14,076,807 | ||||||
Beginning balance at Dec. 31, 2023 | $ 141 | 95,636 | 146,388 | (12,251) | 229,914 | ||
Beginning balance (in shares) at Dec. 31, 2023 | 14,101,215 | ||||||
Net Income (Loss) | 4,204 | 4,204 | |||||
Other comprehensive income (loss) | (402) | (402) | |||||
Exercise of stock options, net of shares surrendered | $ 1 | 704 | 705 | ||||
Exercise of stock options, net of shares surrendered (in shares) | 60,637 | ||||||
Restricted stock vesting | (3) | (3) | |||||
Restricted stock vesting (in shares) | 2,248 | ||||||
Share-based compensation | 132 | 132 | |||||
Ending balance at Mar. 31, 2024 | $ 142 | $ 96,469 | $ 150,592 | $ (12,653) | $ 234,550 | ||
Ending balance (in shares) at Mar. 31, 2024 | 14,164,100 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2024 shares | |
Consolidated Statements of Changes in Shareholders' Equity | |
Exercise of stock options, shares surrendered | 423 |
Restricted stock vesting, shares surrendered | 141 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities | ||
Net income | $ 4,204 | $ 6,304 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 112 | 117 |
Right of use asset amortization | 304 | 334 |
Recovery of credit losses | (776) | (774) |
Share-based compensation expense | 132 | 197 |
Net accretion of securities | (73) | (82) |
Fair value adjustment on equity securities | (124) | (89) |
Amortization of debt issuance costs | 21 | 21 |
Net gains on premises and equipment | 1 | |
Losses on available-for-sale securities | 202 | |
Deferred tax (benefit) expense | (14) | 221 |
Net increase in cash surrender value of life insurance | (100) | |
Gain on sale of government guaranteed loans | (133) | |
Changes in assets and liabilities: | ||
(Increase) Decrease in accrued interest receivable | (300) | 60 |
(Increase) decrease in other assets | (322) | 1,181 |
Decrease in accrued interest payable | (1,610) | (63) |
Decrease in other liabilities | (1,246) | (1,519) |
Net cash provided by operating activities | 175 | 6,011 |
Cash Flows from Investing Activities | ||
Net decrease in loans | 32,424 | 18,236 |
Proceeds from sale of government guaranteed loans originally classified as held for investment | 1,746 | |
Proceeds from sale of available-for-sale securities | 11,511 | |
Proceeds from maturities, calls and principal repayments of available-for-sale securities | 10,846 | 10,272 |
Proceeds from maturities, calls and principal repayments of held-to-maturity securities | 797 | 856 |
Net redemptions (purchases) of restricted securities | 50 | (104) |
Net purchases of equity securities | (44) | (386) |
Proceeds from sale of premises and equipment | 50 | |
Purchases of bank premises and equipment | (75) | (400) |
Net cash provided by investing activities | 45,744 | 40,035 |
Cash Flows from Financing Activities | ||
Net (decrease) increase in deposits | (5,610) | 20,902 |
Net repayment of Federal Home Loan Bank advances | (25,500) | |
Proceeds from Federal Reserve Bank borrowings | 23,000 | |
Net (repayment) of federal funds purchased | (10,000) | |
Issuance of common stock for share options exercised | 705 | 312 |
Restricted stock vesting, net of 141 shares surrendered | (3) | |
Net cash provided by (used in) financing activities | 8,092 | (4,286) |
Net increase in cash and cash equivalents | 54,011 | 41,760 |
Cash and cash equivalents, beginning of period | 99,005 | 61,599 |
Cash and cash equivalents, end of period | 153,016 | 103,359 |
Supplemental Disclosures of Cash Flow Information | ||
Interest | 16,764 | 9,027 |
Supplemental Disclosures of Noncash Transactions | ||
Unrealized (loss) gain on securities available-for-sale | $ (481) | 4,469 |
Right of use asset obtained in exchange for new operating lease liability | $ 490 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Cash Flows | ||
Restricted stock vesting, shares surrendered | 141 | 33 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policy | 3 Months Ended |
Mar. 31, 2024 | |
Nature of Business and Summary of Significant Accounting Policy | |
Nature of Business and Summary of Significant Accounting Policy | Note 1— Nature of Business and Summary of Significant Accounting Policies Nature of Banking Activities John Marshall Bancorp, Inc. (the “Company”), headquartered in Reston, Virginia, became the registered bank holding company under the Bank Holding Company Act of 1956 for its wholly-owned subsidiary, John Marshall Bank (the “Bank”), on March 1, 2017. This reorganization was completed through a one-for-one share exchange in which the Bank’s shareholders received one share of voting common stock of the Company in exchange for each share of the Bank’s voting common stock. The Company was formed on April 21, 2016 under the laws of the Commonwealth Virginia. The Bank was formed on April 5, 2005 under the laws of the Commonwealth of Virginia and was chartered as a bank on February 9, 2006, by the Virginia Bureau of Financial Institutions. The Bank is a member of the Federal Reserve System and is subject to the rules and regulations of the Virginia Bureau of Financial Institutions, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Federal Deposit Insurance Corporation (“FDIC”). The Bank opened for business on April 17, 2006 and provides banking services to its customers primarily in the Washington, D.C. metropolitan area. Basis of Presentation The accounting and reporting policies of John Marshall Bancorp, Inc. conform to generally accepted accounting principles in the United States of America (“GAAP”) and reflect practices of the banking industry. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). They do not include all of the information and notes required by GAAP for complete financial statements. As such, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2023, included in the Company’s 2023 Annual Report on Form 10-K filed with the SEC on March 20, 2024. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan credit losses. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2023, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period financial statements have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or shareholders’ equity. Significant Accounting Policies and Estimates Application of the principles of GAAP and practices within the banking industry requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements may reflect different estimates, assumptions, and judgments. Certain policies inherently rely more extensively on the use of estimates, assumptions, and judgments and as such may have a greater possibility of producing results that could be materially different than originally reported. The Company's significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements and notes for the year ended December 31, 2023 and are contained in the Company's 2023 Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2023. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2024 | |
Investment Securities | |
Investment Securities | Note 2— Investment Securities Available-for-Sale Each of the securities in the Company’s available-for-sale investment portfolio is either covered by the explicit or implied guarantee of the United States government or one of its agencies or rated investment grade or higher. All available-for-sale securities were current with no securities past due or on nonaccrual as of March 31, 2024 or December 31, 2023. The following tables summarize the amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses at March 31, 2024 and December 31, 2023. March 31, 2024 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Available-for-sale U.S. Treasuries $ 38,824 $ — $ (1,705) $ 37,119 U.S. government and federal agencies 13,879 — (605) 13,274 Corporate bonds 3,000 — (351) 2,649 U.S. agency collateralized mortgage obligations 40,136 — (6,665) 33,471 Tax-exempt municipal 1,380 — (181) 1,199 Taxable municipal 606 — (18) 588 U.S. agency mortgage-backed 77,110 — (6,653) 70,457 Total Available-for-sale Securities $ 174,935 $ — $ (16,178) $ 158,757 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Available-for-sale U.S. Treasuries $ 44,793 $ — $ (1,816) $ 42,977 U.S. government and federal agencies 13,850 — (575) 13,275 Corporate bonds 3,000 — (477) 2,523 U.S. agency collateralized mortgage obligations 40,806 — (6,496) 34,310 Tax-exempt municipal 1,380 — (149) 1,231 Taxable municipal 606 — (19) 587 U.S. agency mortgage-backed 81,255 — (6,165) 75,090 Total Available-for-sale Securities $ 185,690 $ — $ (15,697) $ 169,993 The Company did not sell or recognize any gain or loss for any securities for the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company sold available-for-sale securities with a total par value of $12.0 million resulting in a gross pre-tax loss of $202 thousand. Available-for-sale securities having a market value of $68.8 million and $90.3 million at March 31, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes required by law. These securities had an amortized cost of $74.0 million and $95.8 million at March 31, 2024 and December 31, 2023, respectively. The following tables summarize the fair value of securities available-for-sale at March 31, 2024 and December 31, 2023 and the corresponding amounts of gross unrealized losses. Management uses the valuations as of month-end in determining when securities are in an unrealized loss position. Therefore, a security’s market value could have exceeded its amortized cost on other days during the prior twelve-month period. March 31, 2024 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-sale U.S. Treasuries $ — $ — $ 37,119 $ (1,705) $ 37,119 $ (1,705) U.S. government and federal agencies — — 13,274 (605) 13,274 (605) Corporate bonds — — 2,649 (351) 2,649 (351) U.S. agency collateralized mortgage obligations — — 33,471 (6,665) 33,471 (6,665) Tax-exempt municipal — — 1,199 (181) 1,199 (181) Taxable municipal — — 588 (18) 588 (18) U.S. agency mortgage-backed — — 70,457 (6,653) 70,457 (6,653) Total Available-for-sale Securities $ — $ — $ 158,757 $ (16,178) $ 158,757 $ (16,178) December 31, 2023 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-sale U.S. Treasuries $ — $ — $ 42,977 $ (1,816) $ 42,977 $ (1,816) U.S. government and federal agencies — — 13,275 (575) 13,275 (575) Corporate bonds — — 2,523 (477) 2,523 (477) U.S. agency collateralized mortgage obligations — — 34,310 (6,496) 34,310 (6,496) Tax-exempt municipal — — 1,231 (149) 1,231 (149) Taxable municipal — — 587 (19) 587 (19) U.S. agency mortgage-backed — — 75,090 (6,165) 75,090 (6,165) Total Available-for-sale Securities $ — $ — $ 169,993 $ (15,697) $ 169,993 $ (15,697) The Company had 156 and 158 securities in an unrealized loss position for 12 months or longer as of March 31, 2024 and December 31, 2023, respectively. The Company has evaluated available-for-sale securities in an unrealized loss position for credit related impairment at March 31, 2024 and December 31, 2023 and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no allowance for credit losses on available-for-sale securities at March 31, 2024. The table below summarizes the contractual maturities of our available-for-sale investment securities as of March 31, 2024. Issuers may have the right to call or prepay certain obligations, and as such, the expected maturities of our securities may differ from the scheduled contractual maturities presented below. March 31, 2024 Amortized Fair (Dollars in thousands) Cost Value Available-for-sale Due in one year or less $ 22,977 $ 22,567 Due after one year through five years 39,011 37,075 Due after five years through ten years 51,198 48,114 Due after ten years 61,749 51,001 Total Available-for-sale Securities $ 174,935 $ 158,757 In the prevailing rate environments as of March 31, 2024 and December 31, 2023, the Company’s available-for-sale investment portfolio had an estimated weighted average remaining life of approximately 3.0 years and 3.0 years, respectively. Held-to-Maturity Each of the securities in the Company’s held-to-maturity investment portfolio is either covered by the explicit or implied guarantee of the United States government or one of its agencies or rated investment grade or higher. All held-to-maturity securities were current with no securities past due or on nonaccrual as of March 31, 2024 or December 31, 2023. The following tables summarize the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrealized losses at March 31, 2024 and December 31, 2023, respectively. March 31, 2024 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Held-to-maturity U.S. Treasuries $ 6,001 $ — $ (713) $ 5,288 U.S. government and federal agencies 35,406 — (5,343) 30,063 U.S agency collateralized mortgage obligations 19,019 — (4,168) 14,851 Taxable municipal 6,053 — (1,132) 4,921 U.S. agency mortgage-backed 28,183 — (5,311) 22,872 Total Held-to-maturity Securities $ 94,662 $ — $ (16,667) $ 77,995 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Held-to-maturity U.S. Treasuries $ 6,001 $ — $ (667) $ 5,334 U.S. government and federal agencies 35,434 — (5,100) 30,334 U.S agency collateralized mortgage obligations 19,395 — (4,095) 15,300 Taxable municipal 6,057 — (1,101) 4,956 U.S. agency mortgage-backed 28,618 — (5,010) 23,608 Total Held-to-maturity Securities $ 95,505 $ — $ (15,973) $ 79,532 Held-to-maturity securities having a market value of $34.4 million and $36.1 million at March 31, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes required by law. These securities had an amortized cost of $40.7 million and $42.3 million at March 31, 2024 and December 31, 2023, respectively. The Company evaluates the credit risk of its held-to-maturity securities on at least a quarterly basis. The Company estimates expected credit losses on held-to-maturity securities on an individual basis based on a probability of default/loss given default methodology primarily using security-level credit ratings. The primary indicators of credit quality for the Company’s held-to-maturity portfolio are security type and credit rating, which is influenced by a number of factors including obligor cash flow, geography, seniority, and others. The Company’s held-to-maturity securities with credit risk were comprised of municipal bonds and had a credit rating of AA or better as of March 31, 2024. All other held-to-maturity securities are covered by the explicit or implied guarantee of the United States government or one of its agencies. The Company did not have an allowance for credit losses on held-to-maturity securities as of March 31, 2024 or December 31, 2023. The table below summarizes the contractual maturities of our held-to-maturity investment securities as of March 31, 2024. Issuers may have the right to call or prepay certain obligations and as such, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. March 31, 2024 Amortized Fair (Dollars in thousands) Cost Value Held-to-maturity Due in one year or less $ — $ — Due after one year through five years 22,160 19,441 Due after five years through ten years 23,460 19,566 Due after ten years 49,042 38,988 Total Held-to-maturity Securities $ 94,662 $ 77,995 In the prevailing rate environments as of March 31, 2024 and December 31, 2023, the Company’s held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 6.5 years and 6.7 years, respectively. Restricted Securities The table below summarizes the carrying amount of restricted securities as of March 31, 2024 and December 31, 2023. (Dollars in thousands) March 31, 2024 December 31, 2023 Federal Reserve Bank Stock $ 3,314 $ 3,310 Federal Home Loan Bank Stock 1,588 1,642 Community Bankers’ Bank Stock 60 60 Total Restricted Securities $ 4,962 $ 5,012 Equity Securities The Company held equity securities with readily determinable fair values totaling $3.0 million and $2.8 million at March 31, 2024 and December 31, 2023, respectively. These securities consist of mutual funds held in a trust and were obtained for the purpose of economically hedging changes in the Company’s nonqualified deferred compensation liability. Changes in the fair value of these securities are reflected in earnings. Gains of $124 thousand and $89 thousand were recorded in non-interest income in the Consolidated Statements of Income for the three months ended March 31, 2024 and March 31, 2023, respectively. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2024 | |
Allowance for Loan Credit Losses | |
Loans | Note 3— Loans The following table presents the composition of the Company’s loan portfolio as of March 31, 2024 and December 31, 2023. (Dollars in thousands) March 31, 2024 December 31, 2023 Real Estate Loans: Commercial $ 1,143,472 $ 1,146,116 Construction and land development 151,476 180,922 Residential 482,254 482,182 Commercial - Non-Real Estate: Commercial loans 42,908 45,204 Consumer - Non-Real Estate: Consumer loans 772 560 Total Gross Loans $ 1,820,882 $ 1,854,984 Allowance for loan credit losses (18,671) (19,543) Net deferred loan costs 5,049 4,983 Total net loans $ 1,807,260 $ 1,840,424 Portfolio Segments The Company currently manages its loan products and the respective exposure to credit losses by the following specific portfolio segments which are levels at which the Company develops and documents its systematic methodology to determine the allowance for loan credit losses attributable to each respective portfolio segment. These segments are: ● Real estate - commercial loans – The real estate commercial loans category contains commercial mortgage loans secured by owner occupied, non-owner occupied, and multifamily real estate. ● Real estate - construction and land development loans – The real estate construction and land development loans category contains residential and commercial construction loan financing to builders and developers and to consumers building their own homes. ● Real estate - residential loans – The real estate residential mortgage loans category contains permanent mortgage loans principally to consumers secured by residential real estate. ● Commercial loans – The commercial loans category contains business purpose loans made to provide funds for the financing of equipment, receivables, contract administration expenses, and other general corporate needs of commercial businesses. ● Consumer loans – The consumer loans category contains personal loans such as installment loans and lines of credit. |
Allowance for Loan Credit Losse
Allowance for Loan Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
Allowance for Loan Credit Losses | |
Allowance for Loan Credit Losses | Note 4— Allowance for Loan Credit Losses The following tables present the activity in the allowance for loan credit losses for the three months ended March 31, 2024 and March 31, 2023. March 31, 2024 Real Estate Construction & Land Dollars in thousands Commercial Development Residential Commercial Consumer Total Beginning balance, December 31, 2023 $ 12,841 $ 1,787 $ 4,323 $ 495 $ 97 $ 19,543 Charge-offs — — — — — — Recoveries — — — 1 — 1 Provision for (recovery of) credit losses (119) (502) (140) (19) (93) (873) Ending balance, March 31, 2024 $ 12,722 $ 1,285 $ 4,183 $ 477 $ 4 $ 18,671 March 31, 2023 Real Estate Construction & Land Dollars in thousands Commercial Development Residential Commercial Consumer Unallocated Total Beginning balance, December 31, 2022 $ 13,205 $ 2,860 $ 3,044 $ 456 $ 5 $ 638 $ 20,208 Adjustment to allowance for adoption of ASC 326 (2,649) 476 4,552 367 57 (638) 2,165 Charge-offs — — — — — — — Recoveries — — — 1 — — 1 Provision for (recovery of) credit losses (742) (139) 330 (148) (56) — (755) Ending balance, March 31, 2023 $ 9,814 $ 3,197 $ 7,926 $ 676 $ 6 $ — $ 21,619 There were no collateral dependent or individually evaluated loans as of March 31, 2024 or December 31, 2023. Delinquency Information The following tables present a summary of past due and nonaccrual loans by segment as of March 31, 2024 and December 31, 2023. March 31, 2024 30-59 Days 60-89 Days 90 Days or 90 Days or More Past Past More Total Past Total Past Due and Nonaccrual (Dollars in thousands) Due Due Past Due Due Current Loans Still Accruing Loans Real Estate Loans Commercial $ — $ — $ — $ — $ 1,143,472 $ 1,143,472 $ — $ — Construction and land development — — — — 151,476 151,476 — — Residential — — — — 482,254 482,254 — — Commercial — — — — 42,908 42,908 — — Consumer — — — — 772 772 — — Total Loans $ — $ — $ — $ — $ 1,820,882 $ 1,820,882 $ — $ — December 31, 2023 30-59 Days 60-89 Days 90 Days or 90 Days or More Past Past More Total Past Total Past Due and Nonaccrual (Dollars in thousands) Due Due Past Due Due Current Loans Still Accruing Loans Real Estate Loans Commercial $ — $ — $ — $ — $ 1,146,116 $ 1,146,116 $ — $ — Construction and land development — — — — 180,922 180,922 — — Residential — — — — 482,182 482,182 — — Commercial — — — — 45,204 45,204 — — Consumer — — — — 560 560 — — Total Loans $ — $ — $ — $ — $ 1,854,984 $ 1,854,984 $ — $ — Credit Quality Indicators The Company assesses credit quality indicators based on internal risk rating of loans. Each loan is evaluated at least annually with more frequent evaluation of more severely criticized loans. The indicators represent the rating for loans as of the date presented is based on the most recent credit review performed. Internal risk rating definitions are: Pass Special Mention Substandard Doubtful Loss The Company has a portfolio of smaller homogenous loans that are not individually risk rated and include residential permanent and construction mortgages, home equity lines of credit, and consumer installment loans. For these loans, management uses payment status as the primary credit quality indicator. The payment status of these loans is then translated into an internal risk rating. The following table summarizes the translation of past due status to risk rating for loans that are not individually risk rated. Internal Days Past Due Risk Rating 0 - 29 days Pass 30-59 days Special Mention 60-89 days Substandard 90-119 days Doubtful 120+ days Loss The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of March 31, 2024. Term Loans by Year of Origination (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Total Real Estate Loans - Commercial Pass $ 2,003 $ 67,539 $ 318,376 $ 208,036 $ 124,290 $ 406,721 $ 3,405 $ 1,130,370 Special mention — — 13,102 — — — — 13,102 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Commercial $ 2,003 $ 67,539 $ 331,478 $ 208,036 $ 124,290 $ 406,721 $ 3,405 $ 1,143,472 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Construction and land development Pass $ 9,810 $ 49,617 $ 37,101 $ 15,565 $ 5,804 $ 7,040 $ 24,419 $ 149,356 Special mention — — — — — 2,120 — 2,120 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Construction and land development $ 9,810 $ 49,617 $ 37,101 $ 15,565 $ 5,804 $ 9,160 $ 24,419 $ 151,476 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Residential Pass $ 6,627 $ 81,655 $ 114,125 $ 130,588 $ 86,610 $ 44,948 $ 17,701 $ 482,254 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Residential $ 6,627 $ 81,655 $ 114,125 $ 130,588 $ 86,610 $ 44,948 $ 17,701 $ 482,254 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Loans Pass $ 3,075 $ 5,891 $ 6,587 $ 1,810 $ 2,373 $ 8,152 $ 15,020 $ 42,908 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial Loans $ 3,075 $ 5,891 $ 6,587 $ 1,810 $ 2,373 $ 8,152 $ 15,020 $ 42,908 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Loans Pass $ 526 $ 184 $ 4 $ 23 $ — $ 6 $ 29 $ 772 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Consumer Loans $ 526 $ 184 $ 4 $ 23 $ — $ 6 $ 29 $ 772 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Modifications with Borrowers Experiencing Financial Difficulty The allowance for loan credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination. The starting point for the estimate of the allowance for loan credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. As part of the Company’s loan modification program to borrowers experiencing financial difficulty, the Company may provide concessions to minimize the economic loss and improve long-term loan performance and collectability. The Company did not make any loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and March 31, 2023. Unfunded Commitments The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancellable by the Company. The allowance for off-balance sheet credit exposures is adjusted as a provision for (or recovery of) credit losses in the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for loan credit losses. The allowance for credit losses for unfunded loan commitments of $717 thousand and $620 thousand at March 31, 2024 and December 31, 2023, respectively, is separately classified within Other Liabilities on the Consolidated Balance Sheets. The provision for credit losses recorded during the three months ended March 31, 2024 was primarily due to an increase in unfunded commitments. The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three months ended March 31, 2024 and March 31, 2023. Allowance for Credit Losses (Dollars in thousands) Unfunded Commitments Beginning balance, December 31, 2023 $ 620 Provision for credit losses 97 Ending balance, March 31, 2024 $ 717 Allowance for Credit Losses (Dollars in thousands) Unfunded Commitments Beginning balance, December 31, 2022 $ 303 Adjustment to allowance for unfunded commitments for adoption of ASC 326 737 Provision for (recovery of) credit losses (19) Ending balance, March 31, 2023 $ 1,021 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2024 | |
Derivatives | |
Derivatives | Note 5— Derivatives The Company enters into interest rate swap agreements (“swaps”) with commercial loan customers to provide a facility for customers to manage their interest rate risk. These swaps are matched in exact offsetting terms with swaps that the Company enters into with an independent third party. These swaps qualify as derivatives, but are not designated as hedging instruments. The following tables summarize the Company’s swaps at March 31, 2024 and December 31, 2023. March 31, 2024 Estimated Weighted Average Notional Fair Years to Receive Pay (Dollars in thousands) Amount Value Maturity Rate Rate Interest rate swap agreements: Pay fixed/receive variable swaps $ 19,297 $ 1,026 3.4 years 6.31 % 4.08 % Pay variable/receive fixed swaps 19,297 (1,026) 3.4 years 4.08 % 6.31 % Total interest rate swap agreements $ 38,594 $ — 3.4 years 5.20 % 5.20 % December 31, 2023 Estimated Weighted Average Notional Fair Years to Receive Pay (Dollars in thousands) Amount Value Maturity Rate Rate Interest rate swap agreements: Pay fixed/receive variable swaps $ 19,444 $ 846 3.2 years 5.87 % 3.39 % Pay variable/receive fixed swaps 19,444 (846) 3.2 years 3.39 % 5.87 % Total interest rate swap agreements $ 38,888 $ — 3.2 years 4.63 % 4.63 % The |
Deposits and Borrowings
Deposits and Borrowings | 3 Months Ended |
Mar. 31, 2024 | |
Deposits and Borrowings | |
Deposits and Borrowings | Note 6— Deposits and Borrowings The following tables show the components of the Company’s funding sources. (Dollars in thousands) March 31, 2024 December 31, 2023 Deposits: Non-interest bearing demand deposits (1) $ 404,669 $ 411,374 Interest-bearing demand deposits (1) 644,580 607,971 Savings deposits 50,664 52,061 Time deposits (2) 801,077 835,194 Total Deposits $ 1,900,990 $ 1,906,600 (1) Overdraft demand deposits reclassified to loans totaled $1 thousand at both March 31, 2024 and December 31, 2023. (2) The aggregate amount of certificates of deposit with a minimum denomination of $250,000 was $356.8 million and $359.3 million at March 30, 2024 and December 31, 2023, respectively. March 31, 2024 December 31, 2023 (Dollars in thousands) Stated Interest Rate Weighted-Average Interest Rate Carrying Value Carrying Value Short-term Debt: Federal Reserve Bank borrowings 4.76 % 4.76 % $ 77,000 54,000 Total Short-term Debt $ 77,000 54,000 Long-term Debt: Subordinated debt 5.25 % 5.25 % $ 24,729 $ 24,708 Total Long-term Debt $ 24,729 $ 24,708 The Company obtains certain deposits through the efforts of third-party brokers. Brokered deposits totaled $306.1 million and $320.6 million at March 31, 2024 and December 31, 2023, respectively, and were included primarily in time deposits on the Company’s Consolidated Balance Sheets. At March 31, 2024, there were no depositors that represented 5% or more of the Company’s total deposits. The Company completed a private placement of a $25.0 million fixed-to-floating subordinated note on June 15, 2022. Subject to limited exceptions permitting earlier redemption, the note is callable, in whole or in part, commencing July 1, 2027. Unless redeemed earlier, the note will mature on July 1, 2032. The note bears interest at a fixed rate of 5.25% to but excluding July 1, 2027, and will bear interest at a floating rate equal to the three-month Secured Overnight Financing Rate plus 245 basis points thereafter. The note is carried at its principal amount, less unamortized issuance costs. The Company from time to time uses FHLB advances as a source of funding and to manage interest rate risk. FHLB advances are secured by a blanket floating lien on all real estate mortgage loans secured by 1-to-4 family residential, multi-family and commercial real estate properties. At March 31, 2024, the Company did not have any outstanding FHLB advances. Available borrowing capacity based on collateral value amounted to approximately $452.8 million as of March 31, 2024. The Company also has the capacity to borrow up to $111.9 million at the Federal Reserve discount window of which $0 had been drawn upon at March 31, 2024. The Bank had loans pledged at the Federal Reserve discount window totaling $138.9 million as of March 31, 2024. On March 12, 2023, the Federal Reserve Bank of Richmond (“Reserve Bank”) made available the Bank Term Funding Program (“BTFP”), which enhances the ability of banks to borrow against the par value of certain high-quality, unencumbered investments. In January 2024, the Company refinanced its $54.0 million advance and advanced an additional $23.0 million from the BTFP. The $77 million BTFP advance has a term of one year, bears interest at a fixed rate of 4.76% and can be prepaid without penalty prior to maturity. At March 31, 2024, the Company had pledged as collateral for the BTFP advance investment securities with an amortized cost and fair value of $77.9 million and $62.6 million, respectively. The Company also has federal funds lines of credit with correspondent banks available for overnight borrowing of $110.0 million, of which $0 had been drawn upon at March 31, 2024. The following table shows the carrying amount of the Company’s time deposits by contractual maturity as of March 31, 2024. (Dollars in thousands) March 31, 2024 2024 $ 443,700 2025 241,722 2026 89,284 2027 25,292 2028 549 Thereafter 530 Total $ 801,077 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7— Commitments and Contingencies The Company is party to financial instruments with off balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The following table summarizes the contract or notional amount of the Company’s exposure to off-balance sheet risk as of March 31, 2024 and December 31, 2023. (Dollars in thousands) March 31, 2024 December 31, 2023 Commitments to extend credit $ 258,684 $ 235,560 Standby letters of credit $ 16,351 $ 16,329 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property and equipment, income-producing commercial properties, and other real estate properties. Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers. Those lines of credit may not be drawn upon to the total extent to which the Company is committed. Standby letters of credit written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Fair Value Measurements | Note 8— Fair Value Measurements Determination of Fair Value The Company determines the fair values of its financial instruments based on the fair value hierarchy established by Accounting Standards Codification (“ASC”) Topic 820 – Fair Value Measurement The fair value measurements and disclosures topic specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. Fair Value Hierarchy In accordance with this guidance, the Company groups its assets and 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 on quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. 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. Assets Measured at Fair Value on a Recurring Basis In accordance with ASC Topic 820, the following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a recurring basis in the financial statements. Securities Available-for-sale and Equity Securities Securities available-for-sale and equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity then the security would fall to the lowest level of the hierarchy (Level 3). The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third party portfolio accounting service vendor for valuation of its portfolio of debt securities. The vendor’s primary source for security valuation is ICE Data Services, which evaluates securities based on market data. ICE Data Services utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance and rating to incorporate additional spreads to the industry benchmark curves. Interest Rate Swap Agreements Interest rate swap agreements are measured by alternative pricing sources using a discounted cash flow method that incorporates current market interest rates. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These characteristics classify interest rate swap agreements as Level 2 in the fair value hierarchy. Loan Servicing Rights Under the U.S Small Business Administration (“SBA”) 7(a) program, the Bank can sell in the secondary market the guaranteed portion of its SBA 7(a) loans and retain the related unguaranteed portion of these loans, as well as the servicing on such loans, for which it is paid a fee. The loan servicing spread is generally a minimum of 1.00% on all SBA 7(a) loans. The Company generally offers SBA 7(a) loans within a range of $50,000 to $2.0 million. The Company holds rights to service the guaranteed portion of SBA loans sold in the secondary market. Loan servicing rights are capitalized at estimated fair value when acquired through the origination of loans that are subsequently sold with the servicing rights retained. Loan servicing rights are amortized to servicing income on loans sold approximately in proportion to and over the period of estimated net servicing income. The value of loan servicing rights at the date of the sale of loans is estimated based on the discounted present value of expected future cash flows using key assumptions for servicing income and costs and expected prepayment rates on the underlying loans. The estimated fair value is periodically evaluated for impairment by comparing actual cash flows and estimated future cash flows from the loan servicing assets to those estimated at the time that the loan servicing assets were originated. Fair values are estimated using expected future discounted cash flows based on current market rates of interest. For purposes of measuring impairment, the loan servicing rights must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized loan servicing rights based on product type and term of the underlying loans. The amount of impairment recognized is the amount, if any, by which the amortized cost of the loan servicing rights exceeds their fair value. Impairment, if deemed temporary, is recognized through a valuation allowance to the extent that fair value is less than the recorded amount. Under the SBA 7(a) program, the loans carry an SBA guaranty for up to 85% of the loan. Typical maturities for this type of loan vary but can be up to ten years. SBA 7(a) loans are fixed or adjustable rate loans based on the Prime Rate. At March 31, 2024, the Bank’s SBA 7(a) loan servicing portfolio, which is not included in the Company’s consolidated financial statements, totaled $2.8 million. At March 31, 2024, SBA servicing rights of $47 thousand were recorded in other assets in the Consolidated Balance Sheets. The SBA servicing rights' fair values were estimated using discounted cash flow analyses with an average discount rate of 11.32% and average conditional prepayment rates of 12.16%. There was no valuation allowance on loan servicing rights at March 31, 2024. The following tables summarize the fair value of assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023. Fair Value Measurements at March 31, 2024 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs (Dollars in thousands) March 31, 2024 (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. Treasuries $ 37,119 $ — $ 37,119 $ — U.S. government and federal agencies 13,274 — 13,274 — Corporate bonds 2,649 — 2,649 — U.S. agency collateralized mortgage obligations 33,471 — 33,471 — Tax-exempt municipal 1,199 — 1,199 — Taxable municipal 588 — 588 — U.S. agency mortgage-backed 70,457 — 70,457 — Equity securities, at fair value 2,960 2,960 — — Interest rate swap agreements 1,026 — 1,026 — Loan servicing rights 47 — — 47 Total assets at fair value $ 162,790 $ 2,960 $ 159,783 $ 47 Liabilities: Interest rate swap agreements $ 1,026 $ — $ 1,026 $ — Total liabilities at fair value $ 1,026 $ — $ 1,026 $ — Fair Value Measurements at December 31, 2023 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs (Dollars in thousands) December 31, 2023 (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. Treasuries $ 42,977 $ — $ 42,977 $ — U.S. government and federal agencies 13,275 — 13,275 — Corporate bonds 2,523 — 2,523 — U.S. agency collateralized mortgage obligations 34,310 — 34,310 — Tax-exempt municipal 1,231 — 1,231 — Taxable municipal 587 — 587 — U.S. agency mortgage-backed 75,090 — 75,090 — Equity securities, at fair value 2,792 2,792 — — Interest rate swap agreement 846 — 846 — Loan servicing rights 22 — — 22 Total assets at fair value $ 173,653 $ 2,792 $ 170,839 $ 22 Liabilities: Interest rate swap agreement $ 846 $ — $ 846 $ — Total liabilities at fair value $ 846 $ — $ 846 $ — Assets Measured at Fair Value on a Non-recurring Basis Under certain circumstances, the Company makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a non-recurring basis in the financial statements: Collateral Dependent Loans In accordance with ASC 326, loans that do not share risk characteristics are evaluated on an individual basis. The Company designates individually evaluated loans on nonaccrual status as collateral dependent loans, as well as other loans that management of the Company designates as having higher risk and loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral. The measurement of loss associated with collateral dependent loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal, of one year or less, conducted by an independent, licensed appraiser using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, or if an appraisal of the property is more than one-year-old and not solely based on observable market comparables, or management determines the fair value of the collateral is further impaired below the appraised value, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. The Company had no collateral dependent loans with a recorded reserve as of March 31, 2024 or December 31, 2023. Other Real Estate Owned (“OREO”) OREO is carried at the lower of cost or fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value using observable market data, the Company records the property as Level 2. When an appraised value using observable market data is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the property as Level 3 valuation. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. The Company had no OREO as of March 31, 2024 or December 31, 2023. The following tables present the carrying value and estimated fair value, including the level within the fair value hierarchy, of the Company’s financial instruments as of March 31, 2024 or December 31, 2023. Fair Value Measurements at March 31, 2024 Using Quoted Prices in Active Markets Significant for Identical Significant Other Unobservable Carrying Value as of Assets Observable Inputs Inputs Fair Value as of (Dollars in thousands) March 31, 2024 (Level 1) (Level 2) (Level 3) March 31, 2024 Assets: Cash and cash equivalents $ 153,016 $ 153,016 $ — $ — $ 153,016 Securities: Available-for-sale 158,757 — 158,757 — 158,757 Held-to-maturity 94,662 — 77,995 — 77,995 Equity securities, at fair value 2,960 2,960 — — 2,960 Restricted securities, at cost 4,962 — 4,962 — 4,962 Loans, net 1,807,260 — — 1,671,566 1,671,566 Interest rate swap agreements 1,026 — 1,026 — 1,026 Loan servicing rights 47 — — 47 47 Accrued interest receivable 6,410 — 6,410 — 6,410 Liabilities: Deposits $ 1,900,990 $ — $ 1,900,160 $ — $ 1,900,160 Federal Reserve Bank borrowings 77,000 — 77,000 — 77,000 Subordinated debt 24,729 — — 21,681 21,681 Interest rate swap agreements 1,026 — 1,026 — 1,026 Accrued interest payable 2,949 — 2,949 — 2,949 Fair Value Measurements at December 31, 2023 Using Quoted Prices in Active Markets Significant for Identical Significant Other Unobservable Carrying Value as of Assets Observable Inputs Inputs Fair Value as of (Dollars in thousands) December 31, 2023 (Level 1) (Level 2) (Level 3) December 31, 2023 Assets: Cash and cash equivalents $ 99,005 $ 99,005 $ — $ — $ 99,005 Securities: Available-for-sale 169,993 — 169,993 — 169,993 Held-to-maturity 95,505 — 79,532 — 79,532 Equity securities, at fair value 2,792 2,792 — — 2,792 Restricted securities, at cost 5,012 — 5,012 — 5,012 Loans, net 1,840,424 — — 1,730,205 1,730,205 Interest rate swap agreement 846 — 846 — 846 Loan servicing rights 22 — — 22 22 Accrued interest receivable 6,110 — 6,110 — 6,110 Liabilities: Deposits $ 1,906,600 $ — $ 1,906,835 $ — $ 1,906,835 Federal Reserve Bank borrowings 54,000 54,000 54,000 Federal funds purchased 10,000 — 10,000 — 10,000 Subordinated debt 24,708 — — 21,873 21,873 Interest rate swap agreement 846 — 846 — 846 Accrued interest payable 4,559 — 4,559 — 4,559 |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings per Common Share | |
Earnings per Common Share | Note 9— Earnings per Common Share Earnings per common share is calculated in accordance with ASC 260 - Earnings Per Share Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of voting common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. The following table summarizes the computation of earnings per share for the three months ended March 31, 2024 and March 31, 2023. Three months ended March 31, 2024 2023 Earnings per common share - basic: Income available to common shareholders (in thousands): Net income $ 4,204 $ 6,304 Less: Income attributable to unvested restricted stock awards (14) (23) Net income available to common shareholders $ 4,190 $ 6,281 Weighted average shares outstanding: Common shares outstanding, including unvested restricted stock 14,176,570 14,117,981 Less: Unvested restricted stock (45,584) (50,934) Weighted-average common shares outstanding - basic 14,130,986 14,067,047 Earnings per common share - basic $ 0.30 $ 0.45 Earnings per common share - diluted: Income available to common shareholders (in thousands): Net income $ 4,204 $ 6,304 Less: Income attributable to unvested restricted stock awards (14) (23) Net income available to common shareholders $ 4,190 $ 6,281 Weighted average shares outstanding: Common shares outstanding, including unvested restricted stock 14,176,570 14,117,981 Less: Unvested restricted stock (45,584) (50,934) Plus: Effect of dilutive options 50,268 89,677 Weighted-average common shares outstanding - diluted 14,181,254 14,156,724 Earnings per common share - diluted $ 0.30 $ 0.44 Outstanding options to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. All stock options outstanding as of March 31, 2024 and March 31, 2023 were included in computing diluted earnings per share for the three months ended March 31, 2024 and March 31, 2023, respectively, as none had anti-dilutive effects. |
Stock Based Compensation Plan
Stock Based Compensation Plan | 3 Months Ended |
Mar. 31, 2024 | |
Stock Based Compensation Plan | |
Stock Based Compensation Plan | Note 10— Stock Based Compensation Plan The Company’s share-based compensation plan, approved by stockholders and effective April 28, 2015 (the “2015 Plan”), provides for the grant of share-based awards in the form of incentive stock options, non-incentive stock options, restricted stock and restricted stock units to directors and employees. The Company has reserved 976,211 shares of voting common stock for issuance under the 2015 Plan, which will remain in effect until April 28, 2025. The Company’s Compensation Committee administers the 2015 Plan and has the authority to determine the terms and conditions of each award thereunder. As of March 31, 2024, 277,529 shares are available to grant in future periods under the 2015 Plan. The Company’s previous share-based compensation plan, the 2006 Stock Option Plan (the “2006 Plan”), provided for the grant of share-based awards in the form of incentive stock options and non-incentive stock options to directors and employees. As amended, the 2006 Plan provided for awards of up to 1,490,700 shares. In April 2015, the 2006 Plan was terminated and replaced with the 2015 Plan. Options outstanding prior to April 28, 2015 were granted under the 2006 Plan and shall be subject to the provisions of the 2006 Plan. To date, options granted under the 2015 Plan typically vest over five years and expire 10 years from the grant date. Under the 2015 Plan, the exercise price of options may not be less than 100% of fair market value at the grant date with a maximum term for an option award of 10 years from the grant date. The table below provides a summary of the stock options activity for the three months ended March 31, 2024. March 31, 2024 Weighted Average Aggregate Intrinsic Shares Exercise Price Value Outstanding at January 1, 2024 162,147 $ 11.77 Granted — — Exercised (60,637) 11.77 Forfeited or expired — — Outstanding at March 31, 2024 101,510 11.77 $ 623,959 Exercisable March 31, 2024 101,510 $ 11.77 $ 623,959 The aggregate intrinsic value of stock options in the table above represents the total amount by which the current market value of the underlying stock exceeds the exercise price of the option that would have been received by the Company had all option holders exercised their options on March 31, 2024. The intrinsic value of options exercised was $455 thousand for the three months ended March 31, 2024 and $363 thousand for the three months ended March 31, 2023. These amounts and the intrinsic values noted in the table above change based on changes in the market value of the Company’s voting common stock. The table below provides a summary of the stock options outstanding and exercisable as of March 31, 2024. March 31, 2024 Options Outstanding Options Exercisable Weighted Average Weighted Average Remaining Remaining Number Contractual Life Number Contractual Life Exercise Prices Outstanding in Years Exercisable in Years $11.01 - $12.00 100,448 1.08 100,448 1.08 $12.01 - $13.00 1,062 0.73 1,062 0.73 Total 101,510 1.07 101,510 1.07 There were no options granted during the three months ended March 31, 2024 or March 31, 2023. The Company did not record any share-based compensation expense applicable to the Company’s share-based compensation plans for stock options during the three months ended March 31, 2024 or March 31, 2023. The Company does not have any unrecognized share-based compensation expense related to nonvested options as of March 31, 2024. The table below provides a summary of the restricted stock awards granted under the 2015 plan for the three months ended March 31, 2024. March 31, 2024 Weighted Average Shares Grant Date Fair Value Nonvested at January 1, 2024 47,318 $ 23.12 Granted 1,000 17.63 Vested (2,389) 15.79 Forfeited — — Nonvested at March 31, 2024 45,929 23.38 Compensation expense for restricted stock grants is recognized over the vesting period of the awards based on the fair value of the Company’s voting common stock at issue date. The fair value of the stock was determined using the closing stock price on the day of grant. The restricted stock grants vest over two Share-based compensation expense applicable to the Company’s share-based compensation plans for restricted stock grants was $132 thousand and $197 thousand for the three months ended March 31, 2024 and March 31, 2023, respectively. The total fair value of the shares, which vested during the three months ended March 31, 2024 and March 31, 2023, was $48 thousand and $139 thousand, respectively. Unrecognized share-based compensation expense related to nonvested restricted stock grants amounted to $922 thousand as of March 31, 2024. This amount is expected to be recognized over a weighted-average period of 1.8 years. |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2024 | |
Regulatory Capital | |
Regulatory Capital | Note 11— Regulatory Capital The Company is a bank holding company with less than $3 billion in assets and does not (i) have significant off balance sheet exposure, (ii) engage in significant non-banking activities, or (iii) have a material amount of securities registered under the Securities Exchange Act of 1934, as amended (“Exchange Act”). As a result, the Company qualifies as a small bank holding company under the Federal Reserve’s Small Bank Holding Company Policy Statement and is currently not subject to consolidated regulatory capital requirements. The Bank is subject to capital adequacy standards adopted by the Federal Reserve, including the capital rules that implemented the Basel III regulatory capital reforms developed by the Basel Committee on Banking Supervision. Failure to meet minimum capital requirements can initiate certain mandatory – possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines, the 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. Management believes that the Bank met all capital adequacy requirements to which it was subject as of March 31, 2024 and December 31, 2023. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, common equity Tier 1 to risk-weighted assets, and Tier 1 capital to average assets. In addition to the minimum regulatory capital required for capital adequacy purposes, the Bank is required to maintain a minimum capital conservation buffer above those minimums in the form of common equity. The capital conservation buffer, which was phased in ratably over a four year period beginning January 1, 2016, is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of common equity Tier 1 to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases, and discretionary compensation paid to certain officers, based on the amount of the shortfall. The capital conservation buffer was 2.5% at March 31, 2024, and is applicable for the common equity Tier 1, Tier 1, and total capital ratios. As of March 31, 2024, the most recent notification from the Reserve Bank categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the institution must maintain minimum total risk-based, common equity Tier 1, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since the notification that management believes have changed the Bank’s category. The table below provides a summary of the Bank’s capital ratios as of March 31, 2024 and December 31, 2023. Minimum To Be Well Capitalized Actual Minimum Capital Requirement (1) Under Prompt Corrective Action (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2024 Total capital (to risk weighted assets) $ 286,038 16.1 % $ 186,320 10.5 % $ 177,447 10.0 % Tier 1 capital (to risk weighted assets) 267,795 15.1 % 150,830 8.5 % 141,958 8.0 % Common equity tier 1 capital (to risk weighted assets) 267,795 15.1 % 124,213 7.0 % 115,341 6.5 % Tier 1 capital (to average assets) 267,795 11.8 % 90,500 4.0 % 113,125 5.0 % As of December 31, 2023 Total capital (to risk weighted assets) $ 282,082 15.7 % $ 188,448 10.5 % $ 179,475 10.0 % Tier 1 capital (to risk weighted assets) 263,637 14.7 % 152,553 8.5 % 143,580 8.0 % Common equity tier 1 capital (to risk weighted assets) 263,637 14.7 % 125,632 7.0 % 116,658 6.5 % Tier 1 capital (to average assets) 263,637 11.6 % 91,163 4.0 % 113,954 5.0 % (1) |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue | |
Revenue | Note 12— Revenue Certain of the Company’s non-interest revenue streams are derived from short-term contacts associated with services provided to deposit account holders as well as other ancillary services, which are accounted for in accordance with ASC 606 – Revenue Recognition The following table shows the components of non-interest income for the three months ended March 31, 2024 and March 31, 2023. Three months ended March 31, (Dollars in thousands) 2024 2023 Service charges on deposit accounts (1) Overdrawn account fees $ 21 $ 14 Account service fees 67 58 Other service charges and fees (1) Interchange income 88 99 Other charges and fees 61 104 Bank owned life insurance — 100 Losses on sale of available-for-sale securities — (202) Insurance commissions (1) 252 206 Gain on sale of government guaranteed loans 133 — Non-qualified deferred compensation plan asset gains (losses), net 124 89 Other income (2) 72 98 Total non-interest income $ 818 $ 566 (1) Income within the scope of ASC 606. (2) Includes other operating income within the scope of ASC 606 amounting to $9 thousand and $8 thousand for the three months ended March 31, 2024 and March 31, 2023, respectively. Includes other operating income of $64 thousand and $91 thousand related to swap fee income on a back-to-back loan swaps for the three months ended March 31, 2024 and March 31, 2023, respectively, which is outside the scope of ASC 606. As previously disclosed, the Company surrendered all of its Bank Owned Life Insurance (“BOLI”) policies in July 2023. A description of the Company’s revenue streams accounted for under ASC 606 follows: Service charges on deposit accounts Service charges on deposit accounts consist of overdrawn account fees and account service fees. Overdrawn account fees are recognized at the point in time that the overdraft occurs. Account service fees consist primarily of account analysis and other maintenance fees and are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Payment for service charges on deposit accounts is received immediately or in the following month through a direct charge to customers’ accounts. Other service charges and fees Other service charges and fees are primarily comprised of interchange income and other charges and fees. Interchange income is earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. Other charges and fees include revenue from processing wire transfers, cashier’s checks, and other transaction based services. The Company’s performance obligation for these charges and fees are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Net gains (losses) on premises and equipment The Company records a gain or loss on the disposition of premises and equipment when control of the property transfers or is involuntarily converted to a monetary asset (e.g., insurance proceeds). This income is reflected in other operating income on the Company’s Consolidated Statements of Income. Insurance commissions The Company performs the function of an insurance intermediary by introducing the policyholder and insurer and is compensated in the form of a commission for placement of an insurance policy based on a percentage of premiums issued and maintained during the period. Revenue is recognized when received. |
Other Operating Expenses
Other Operating Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Other Operating Expenses | |
Other Operating Expenses | Note 13— Other Operating Expenses The following table shows the components of other operating expenses for the three months ended March 31, 2024 and March 31, 2023. Three months ended March 31, (Dollars in thousands) 2024 2023 Advertising expense $ 97 $ 77 Data processing 527 434 FDIC insurance 260 213 Professional fees 286 158 State franchise tax 570 577 Director costs 211 255 Other operating expenses 415 378 Total other operating expenses $ 2,366 $ 2,092 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 14— Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss), by category, net of tax for the three months ended March 31, 2024 and March 31, 2023. March 31, 2024 Unrealized Gains on Securities Transferred from Unrealized (Loss) on Available-for-sale to Accumulated Other (Dollars in thousands) Available-for-sale Securities Held-to-maturity Comprehensive (Loss) Beginning balance, January 1, 2024 $ (12,400) $ 149 $ (12,251) Net change during the period (380) (22) (402) Ending Balance, March 31, 2024 $ (12,780) $ 127 $ (12,653) March 31, 2023 Unrealized Gains on Securities Transferred from Unrealized Gain on Available-for-sale to Accumulated Other (Dollars in thousands) Available-for-sale Securities Held-to-maturity Comprehensive (Loss) Beginning balance, January 1, 2023 $ (28,942) $ 245 $ (28,697) Net change during the period 3,529 (27) 3,502 Ending Balance, March 31, 2023 $ (25,413) $ 218 $ (25,195) The Company did not have any items reclassified out of accumulated other comprehensive income (loss) to net income during the three months ended March 31, 2024. Items reclassified out of accumulated other comprehensive income (loss) to net income during the three months ended March 31, 2023 consisted of losses on securities classified as available-for-sale. The losses on these transactions totaled $202 thousand and the related tax benefit was $42 thousand. Losses are included in the “Losses on sale of available-for-sale securities” line item and the related tax is presented in the “Income tax expense” line item in the Consolidated Statements of Income. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policy (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Nature of Business and Summary of Significant Accounting Policy | |
Nature of Banking Activities | Nature of Banking Activities John Marshall Bancorp, Inc. (the “Company”), headquartered in Reston, Virginia, became the registered bank holding company under the Bank Holding Company Act of 1956 for its wholly-owned subsidiary, John Marshall Bank (the “Bank”), on March 1, 2017. This reorganization was completed through a one-for-one share exchange in which the Bank’s shareholders received one share of voting common stock of the Company in exchange for each share of the Bank’s voting common stock. The Company was formed on April 21, 2016 under the laws of the Commonwealth Virginia. The Bank was formed on April 5, 2005 under the laws of the Commonwealth of Virginia and was chartered as a bank on February 9, 2006, by the Virginia Bureau of Financial Institutions. The Bank is a member of the Federal Reserve System and is subject to the rules and regulations of the Virginia Bureau of Financial Institutions, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Federal Deposit Insurance Corporation (“FDIC”). The Bank opened for business on April 17, 2006 and provides banking services to its customers primarily in the Washington, D.C. metropolitan area. |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of John Marshall Bancorp, Inc. conform to generally accepted accounting principles in the United States of America (“GAAP”) and reflect practices of the banking industry. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). They do not include all of the information and notes required by GAAP for complete financial statements. As such, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2023, included in the Company’s 2023 Annual Report on Form 10-K filed with the SEC on March 20, 2024. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan credit losses. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2023, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period financial statements have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or shareholders’ equity. |
Significant Accounting Policies and Estimates | Significant Accounting Policies and Estimates Application of the principles of GAAP and practices within the banking industry requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements may reflect different estimates, assumptions, and judgments. Certain policies inherently rely more extensively on the use of estimates, assumptions, and judgments and as such may have a greater possibility of producing results that could be materially different than originally reported. The Company's significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements and notes for the year ended December 31, 2023 and are contained in the Company's 2023 Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2023. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investment Securities | |
Summary of amortized cost and fair value of securities available-for-sale | March 31, 2024 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Available-for-sale U.S. Treasuries $ 38,824 $ — $ (1,705) $ 37,119 U.S. government and federal agencies 13,879 — (605) 13,274 Corporate bonds 3,000 — (351) 2,649 U.S. agency collateralized mortgage obligations 40,136 — (6,665) 33,471 Tax-exempt municipal 1,380 — (181) 1,199 Taxable municipal 606 — (18) 588 U.S. agency mortgage-backed 77,110 — (6,653) 70,457 Total Available-for-sale Securities $ 174,935 $ — $ (16,178) $ 158,757 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Available-for-sale U.S. Treasuries $ 44,793 $ — $ (1,816) $ 42,977 U.S. government and federal agencies 13,850 — (575) 13,275 Corporate bonds 3,000 — (477) 2,523 U.S. agency collateralized mortgage obligations 40,806 — (6,496) 34,310 Tax-exempt municipal 1,380 — (149) 1,231 Taxable municipal 606 — (19) 587 U.S. agency mortgage-backed 81,255 — (6,165) 75,090 Total Available-for-sale Securities $ 185,690 $ — $ (15,697) $ 169,993 |
Summary of amortized cost and fair value of securities held-to-maturity | March 31, 2024 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Held-to-maturity U.S. Treasuries $ 6,001 $ — $ (713) $ 5,288 U.S. government and federal agencies 35,406 — (5,343) 30,063 U.S agency collateralized mortgage obligations 19,019 — (4,168) 14,851 Taxable municipal 6,053 — (1,132) 4,921 U.S. agency mortgage-backed 28,183 — (5,311) 22,872 Total Held-to-maturity Securities $ 94,662 $ — $ (16,667) $ 77,995 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Held-to-maturity U.S. Treasuries $ 6,001 $ — $ (667) $ 5,334 U.S. government and federal agencies 35,434 — (5,100) 30,334 U.S agency collateralized mortgage obligations 19,395 — (4,095) 15,300 Taxable municipal 6,057 — (1,101) 4,956 U.S. agency mortgage-backed 28,618 — (5,010) 23,608 Total Held-to-maturity Securities $ 95,505 $ — $ (15,973) $ 79,532 |
Schedule of gross unrealized loss position of investments | March 31, 2024 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-sale U.S. Treasuries $ — $ — $ 37,119 $ (1,705) $ 37,119 $ (1,705) U.S. government and federal agencies — — 13,274 (605) 13,274 (605) Corporate bonds — — 2,649 (351) 2,649 (351) U.S. agency collateralized mortgage obligations — — 33,471 (6,665) 33,471 (6,665) Tax-exempt municipal — — 1,199 (181) 1,199 (181) Taxable municipal — — 588 (18) 588 (18) U.S. agency mortgage-backed — — 70,457 (6,653) 70,457 (6,653) Total Available-for-sale Securities $ — $ — $ 158,757 $ (16,178) $ 158,757 $ (16,178) December 31, 2023 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-sale U.S. Treasuries $ — $ — $ 42,977 $ (1,816) $ 42,977 $ (1,816) U.S. government and federal agencies — — 13,275 (575) 13,275 (575) Corporate bonds — — 2,523 (477) 2,523 (477) U.S. agency collateralized mortgage obligations — — 34,310 (6,496) 34,310 (6,496) Tax-exempt municipal — — 1,231 (149) 1,231 (149) Taxable municipal — — 587 (19) 587 (19) U.S. agency mortgage-backed — — 75,090 (6,165) 75,090 (6,165) Total Available-for-sale Securities $ — $ — $ 169,993 $ (15,697) $ 169,993 $ (15,697) |
Contractual maturities of investment securities | March 31, 2024 Amortized Fair (Dollars in thousands) Cost Value Available-for-sale Due in one year or less $ 22,977 $ 22,567 Due after one year through five years 39,011 37,075 Due after five years through ten years 51,198 48,114 Due after ten years 61,749 51,001 Total Available-for-sale Securities $ 174,935 $ 158,757 March 31, 2024 Amortized Fair (Dollars in thousands) Cost Value Held-to-maturity Due in one year or less $ — $ — Due after one year through five years 22,160 19,441 Due after five years through ten years 23,460 19,566 Due after ten years 49,042 38,988 Total Held-to-maturity Securities $ 94,662 $ 77,995 |
Summary of restricted securities | (Dollars in thousands) March 31, 2024 December 31, 2023 Federal Reserve Bank Stock $ 3,314 $ 3,310 Federal Home Loan Bank Stock 1,588 1,642 Community Bankers’ Bank Stock 60 60 Total Restricted Securities $ 4,962 $ 5,012 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Allowance for Loan Credit Losses | |
Schedule of composition of the loan portfolio | (Dollars in thousands) March 31, 2024 December 31, 2023 Real Estate Loans: Commercial $ 1,143,472 $ 1,146,116 Construction and land development 151,476 180,922 Residential 482,254 482,182 Commercial - Non-Real Estate: Commercial loans 42,908 45,204 Consumer - Non-Real Estate: Consumer loans 772 560 Total Gross Loans $ 1,820,882 $ 1,854,984 Allowance for loan credit losses (18,671) (19,543) Net deferred loan costs 5,049 4,983 Total net loans $ 1,807,260 $ 1,840,424 |
Allowance for Loan Credit Los_2
Allowance for Loan Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Allowance for Loan Credit Losses | |
Schedule of allowance for loan losses activity and balance | The following tables present the activity in the allowance for loan credit losses for the three months ended March 31, 2024 and March 31, 2023. March 31, 2024 Real Estate Construction & Land Dollars in thousands Commercial Development Residential Commercial Consumer Total Beginning balance, December 31, 2023 $ 12,841 $ 1,787 $ 4,323 $ 495 $ 97 $ 19,543 Charge-offs — — — — — — Recoveries — — — 1 — 1 Provision for (recovery of) credit losses (119) (502) (140) (19) (93) (873) Ending balance, March 31, 2024 $ 12,722 $ 1,285 $ 4,183 $ 477 $ 4 $ 18,671 March 31, 2023 Real Estate Construction & Land Dollars in thousands Commercial Development Residential Commercial Consumer Unallocated Total Beginning balance, December 31, 2022 $ 13,205 $ 2,860 $ 3,044 $ 456 $ 5 $ 638 $ 20,208 Adjustment to allowance for adoption of ASC 326 (2,649) 476 4,552 367 57 (638) 2,165 Charge-offs — — — — — — — Recoveries — — — 1 — — 1 Provision for (recovery of) credit losses (742) (139) 330 (148) (56) — (755) Ending balance, March 31, 2023 $ 9,814 $ 3,197 $ 7,926 $ 676 $ 6 $ — $ 21,619 |
Schedule of past due and non-accrual loans | March 31, 2024 30-59 Days 60-89 Days 90 Days or 90 Days or More Past Past More Total Past Total Past Due and Nonaccrual (Dollars in thousands) Due Due Past Due Due Current Loans Still Accruing Loans Real Estate Loans Commercial $ — $ — $ — $ — $ 1,143,472 $ 1,143,472 $ — $ — Construction and land development — — — — 151,476 151,476 — — Residential — — — — 482,254 482,254 — — Commercial — — — — 42,908 42,908 — — Consumer — — — — 772 772 — — Total Loans $ — $ — $ — $ — $ 1,820,882 $ 1,820,882 $ — $ — December 31, 2023 30-59 Days 60-89 Days 90 Days or 90 Days or More Past Past More Total Past Total Past Due and Nonaccrual (Dollars in thousands) Due Due Past Due Due Current Loans Still Accruing Loans Real Estate Loans Commercial $ — $ — $ — $ — $ 1,146,116 $ 1,146,116 $ — $ — Construction and land development — — — — 180,922 180,922 — — Residential — — — — 482,182 482,182 — — Commercial — — — — 45,204 45,204 — — Consumer — — — — 560 560 — — Total Loans $ — $ — $ — $ — $ 1,854,984 $ 1,854,984 $ — $ — |
Schedule of credit quality indicators | Internal Days Past Due Risk Rating 0 - 29 days Pass 30-59 days Special Mention 60-89 days Substandard 90-119 days Doubtful 120+ days Loss |
Schedule of credit quality information | Term Loans by Year of Origination (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Total Real Estate Loans - Commercial Pass $ 2,003 $ 67,539 $ 318,376 $ 208,036 $ 124,290 $ 406,721 $ 3,405 $ 1,130,370 Special mention — — 13,102 — — — — 13,102 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Commercial $ 2,003 $ 67,539 $ 331,478 $ 208,036 $ 124,290 $ 406,721 $ 3,405 $ 1,143,472 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Construction and land development Pass $ 9,810 $ 49,617 $ 37,101 $ 15,565 $ 5,804 $ 7,040 $ 24,419 $ 149,356 Special mention — — — — — 2,120 — 2,120 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Construction and land development $ 9,810 $ 49,617 $ 37,101 $ 15,565 $ 5,804 $ 9,160 $ 24,419 $ 151,476 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Residential Pass $ 6,627 $ 81,655 $ 114,125 $ 130,588 $ 86,610 $ 44,948 $ 17,701 $ 482,254 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Residential $ 6,627 $ 81,655 $ 114,125 $ 130,588 $ 86,610 $ 44,948 $ 17,701 $ 482,254 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Loans Pass $ 3,075 $ 5,891 $ 6,587 $ 1,810 $ 2,373 $ 8,152 $ 15,020 $ 42,908 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial Loans $ 3,075 $ 5,891 $ 6,587 $ 1,810 $ 2,373 $ 8,152 $ 15,020 $ 42,908 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Loans Pass $ 526 $ 184 $ 4 $ 23 $ — $ 6 $ 29 $ 772 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Consumer Loans $ 526 $ 184 $ 4 $ 23 $ — $ 6 $ 29 $ 772 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — |
Schedule of unfunded commitments | Allowance for Credit Losses (Dollars in thousands) Unfunded Commitments Beginning balance, December 31, 2023 $ 620 Provision for credit losses 97 Ending balance, March 31, 2024 $ 717 Allowance for Credit Losses (Dollars in thousands) Unfunded Commitments Beginning balance, December 31, 2022 $ 303 Adjustment to allowance for unfunded commitments for adoption of ASC 326 737 Provision for (recovery of) credit losses (19) Ending balance, March 31, 2023 $ 1,021 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivatives | |
Schedule of Company's swaps | March 31, 2024 Estimated Weighted Average Notional Fair Years to Receive Pay (Dollars in thousands) Amount Value Maturity Rate Rate Interest rate swap agreements: Pay fixed/receive variable swaps $ 19,297 $ 1,026 3.4 years 6.31 % 4.08 % Pay variable/receive fixed swaps 19,297 (1,026) 3.4 years 4.08 % 6.31 % Total interest rate swap agreements $ 38,594 $ — 3.4 years 5.20 % 5.20 % December 31, 2023 Estimated Weighted Average Notional Fair Years to Receive Pay (Dollars in thousands) Amount Value Maturity Rate Rate Interest rate swap agreements: Pay fixed/receive variable swaps $ 19,444 $ 846 3.2 years 5.87 % 3.39 % Pay variable/receive fixed swaps 19,444 (846) 3.2 years 3.39 % 5.87 % Total interest rate swap agreements $ 38,888 $ — 3.2 years 4.63 % 4.63 % |
Deposits and Borrowings (Tables
Deposits and Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deposits and Borrowings | |
Schedule of deposits | (Dollars in thousands) March 31, 2024 December 31, 2023 Deposits: Non-interest bearing demand deposits (1) $ 404,669 $ 411,374 Interest-bearing demand deposits (1) 644,580 607,971 Savings deposits 50,664 52,061 Time deposits (2) 801,077 835,194 Total Deposits $ 1,900,990 $ 1,906,600 (1) Overdraft demand deposits reclassified to loans totaled $1 thousand at both March 31, 2024 and December 31, 2023. (2) The aggregate amount of certificates of deposit with a minimum denomination of $250,000 was $356.8 million and $359.3 million at March 30, 2024 and December 31, 2023, respectively. |
Schedule of short-term debt and long-term debt | March 31, 2024 December 31, 2023 (Dollars in thousands) Stated Interest Rate Weighted-Average Interest Rate Carrying Value Carrying Value Short-term Debt: Federal Reserve Bank borrowings 4.76 % 4.76 % $ 77,000 54,000 Total Short-term Debt $ 77,000 54,000 Long-term Debt: Subordinated debt 5.25 % 5.25 % $ 24,729 $ 24,708 Total Long-term Debt $ 24,729 $ 24,708 |
Schedule of carrying amount of the time deposits by contractual maturity | (Dollars in thousands) March 31, 2024 2024 $ 443,700 2025 241,722 2026 89,284 2027 25,292 2028 549 Thereafter 530 Total $ 801,077 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Summary of the contract or notional amount of the Company's exposure to off-balance sheet risk | (Dollars in thousands) March 31, 2024 December 31, 2023 Commitments to extend credit $ 258,684 $ 235,560 Standby letters of credit $ 16,351 $ 16,329 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Summary of fair value of assets measured at fair value on a recurring basis | Fair Value Measurements at March 31, 2024 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs (Dollars in thousands) March 31, 2024 (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. Treasuries $ 37,119 $ — $ 37,119 $ — U.S. government and federal agencies 13,274 — 13,274 — Corporate bonds 2,649 — 2,649 — U.S. agency collateralized mortgage obligations 33,471 — 33,471 — Tax-exempt municipal 1,199 — 1,199 — Taxable municipal 588 — 588 — U.S. agency mortgage-backed 70,457 — 70,457 — Equity securities, at fair value 2,960 2,960 — — Interest rate swap agreements 1,026 — 1,026 — Loan servicing rights 47 — — 47 Total assets at fair value $ 162,790 $ 2,960 $ 159,783 $ 47 Liabilities: Interest rate swap agreements $ 1,026 $ — $ 1,026 $ — Total liabilities at fair value $ 1,026 $ — $ 1,026 $ — Fair Value Measurements at December 31, 2023 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs (Dollars in thousands) December 31, 2023 (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. Treasuries $ 42,977 $ — $ 42,977 $ — U.S. government and federal agencies 13,275 — 13,275 — Corporate bonds 2,523 — 2,523 — U.S. agency collateralized mortgage obligations 34,310 — 34,310 — Tax-exempt municipal 1,231 — 1,231 — Taxable municipal 587 — 587 — U.S. agency mortgage-backed 75,090 — 75,090 — Equity securities, at fair value 2,792 2,792 — — Interest rate swap agreement 846 — 846 — Loan servicing rights 22 — — 22 Total assets at fair value $ 173,653 $ 2,792 $ 170,839 $ 22 Liabilities: Interest rate swap agreement $ 846 $ — $ 846 $ — Total liabilities at fair value $ 846 $ — $ 846 $ — |
Summary of carrying value and estimated fair value of financial instruments | The following tables present the carrying value and estimated fair value, including the level within the fair value hierarchy, of the Company’s financial instruments as of March 31, 2024 or December 31, 2023. Fair Value Measurements at March 31, 2024 Using Quoted Prices in Active Markets Significant for Identical Significant Other Unobservable Carrying Value as of Assets Observable Inputs Inputs Fair Value as of (Dollars in thousands) March 31, 2024 (Level 1) (Level 2) (Level 3) March 31, 2024 Assets: Cash and cash equivalents $ 153,016 $ 153,016 $ — $ — $ 153,016 Securities: Available-for-sale 158,757 — 158,757 — 158,757 Held-to-maturity 94,662 — 77,995 — 77,995 Equity securities, at fair value 2,960 2,960 — — 2,960 Restricted securities, at cost 4,962 — 4,962 — 4,962 Loans, net 1,807,260 — — 1,671,566 1,671,566 Interest rate swap agreements 1,026 — 1,026 — 1,026 Loan servicing rights 47 — — 47 47 Accrued interest receivable 6,410 — 6,410 — 6,410 Liabilities: Deposits $ 1,900,990 $ — $ 1,900,160 $ — $ 1,900,160 Federal Reserve Bank borrowings 77,000 — 77,000 — 77,000 Subordinated debt 24,729 — — 21,681 21,681 Interest rate swap agreements 1,026 — 1,026 — 1,026 Accrued interest payable 2,949 — 2,949 — 2,949 Fair Value Measurements at December 31, 2023 Using Quoted Prices in Active Markets Significant for Identical Significant Other Unobservable Carrying Value as of Assets Observable Inputs Inputs Fair Value as of (Dollars in thousands) December 31, 2023 (Level 1) (Level 2) (Level 3) December 31, 2023 Assets: Cash and cash equivalents $ 99,005 $ 99,005 $ — $ — $ 99,005 Securities: Available-for-sale 169,993 — 169,993 — 169,993 Held-to-maturity 95,505 — 79,532 — 79,532 Equity securities, at fair value 2,792 2,792 — — 2,792 Restricted securities, at cost 5,012 — 5,012 — 5,012 Loans, net 1,840,424 — — 1,730,205 1,730,205 Interest rate swap agreement 846 — 846 — 846 Loan servicing rights 22 — — 22 22 Accrued interest receivable 6,110 — 6,110 — 6,110 Liabilities: Deposits $ 1,906,600 $ — $ 1,906,835 $ — $ 1,906,835 Federal Reserve Bank borrowings 54,000 54,000 54,000 Federal funds purchased 10,000 — 10,000 — 10,000 Subordinated debt 24,708 — — 21,873 21,873 Interest rate swap agreement 846 — 846 — 846 Accrued interest payable 4,559 — 4,559 — 4,559 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings per Common Share | |
Schedule of computation of earnings per share | The following table summarizes the computation of earnings per share for the three months ended March 31, 2024 and March 31, 2023. Three months ended March 31, 2024 2023 Earnings per common share - basic: Income available to common shareholders (in thousands): Net income $ 4,204 $ 6,304 Less: Income attributable to unvested restricted stock awards (14) (23) Net income available to common shareholders $ 4,190 $ 6,281 Weighted average shares outstanding: Common shares outstanding, including unvested restricted stock 14,176,570 14,117,981 Less: Unvested restricted stock (45,584) (50,934) Weighted-average common shares outstanding - basic 14,130,986 14,067,047 Earnings per common share - basic $ 0.30 $ 0.45 Earnings per common share - diluted: Income available to common shareholders (in thousands): Net income $ 4,204 $ 6,304 Less: Income attributable to unvested restricted stock awards (14) (23) Net income available to common shareholders $ 4,190 $ 6,281 Weighted average shares outstanding: Common shares outstanding, including unvested restricted stock 14,176,570 14,117,981 Less: Unvested restricted stock (45,584) (50,934) Plus: Effect of dilutive options 50,268 89,677 Weighted-average common shares outstanding - diluted 14,181,254 14,156,724 Earnings per common share - diluted $ 0.30 $ 0.44 |
Stock Based Compensation Plan (
Stock Based Compensation Plan (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stock Based Compensation Plan | |
Summary of stock options activity | March 31, 2024 Weighted Average Aggregate Intrinsic Shares Exercise Price Value Outstanding at January 1, 2024 162,147 $ 11.77 Granted — — Exercised (60,637) 11.77 Forfeited or expired — — Outstanding at March 31, 2024 101,510 11.77 $ 623,959 Exercisable March 31, 2024 101,510 $ 11.77 $ 623,959 |
Summary of stock options outstanding and exercisable | March 31, 2024 Options Outstanding Options Exercisable Weighted Average Weighted Average Remaining Remaining Number Contractual Life Number Contractual Life Exercise Prices Outstanding in Years Exercisable in Years $11.01 - $12.00 100,448 1.08 100,448 1.08 $12.01 - $13.00 1,062 0.73 1,062 0.73 Total 101,510 1.07 101,510 1.07 |
Summary of restricted stock awards | The table below provides a summary of the restricted stock awards granted under the 2015 plan for the three months ended March 31, 2024. March 31, 2024 Weighted Average Shares Grant Date Fair Value Nonvested at January 1, 2024 47,318 $ 23.12 Granted 1,000 17.63 Vested (2,389) 15.79 Forfeited — — Nonvested at March 31, 2024 45,929 23.38 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Regulatory Capital | |
Schedule of compliance with regulatory capital requirements under banking regulations | Minimum To Be Well Capitalized Actual Minimum Capital Requirement (1) Under Prompt Corrective Action (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2024 Total capital (to risk weighted assets) $ 286,038 16.1 % $ 186,320 10.5 % $ 177,447 10.0 % Tier 1 capital (to risk weighted assets) 267,795 15.1 % 150,830 8.5 % 141,958 8.0 % Common equity tier 1 capital (to risk weighted assets) 267,795 15.1 % 124,213 7.0 % 115,341 6.5 % Tier 1 capital (to average assets) 267,795 11.8 % 90,500 4.0 % 113,125 5.0 % As of December 31, 2023 Total capital (to risk weighted assets) $ 282,082 15.7 % $ 188,448 10.5 % $ 179,475 10.0 % Tier 1 capital (to risk weighted assets) 263,637 14.7 % 152,553 8.5 % 143,580 8.0 % Common equity tier 1 capital (to risk weighted assets) 263,637 14.7 % 125,632 7.0 % 116,658 6.5 % Tier 1 capital (to average assets) 263,637 11.6 % 91,163 4.0 % 113,954 5.0 % (1) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue | |
Schedule of components of non-interest income | The following table shows the components of non-interest income for the three months ended March 31, 2024 and March 31, 2023. Three months ended March 31, (Dollars in thousands) 2024 2023 Service charges on deposit accounts (1) Overdrawn account fees $ 21 $ 14 Account service fees 67 58 Other service charges and fees (1) Interchange income 88 99 Other charges and fees 61 104 Bank owned life insurance — 100 Losses on sale of available-for-sale securities — (202) Insurance commissions (1) 252 206 Gain on sale of government guaranteed loans 133 — Non-qualified deferred compensation plan asset gains (losses), net 124 89 Other income (2) 72 98 Total non-interest income $ 818 $ 566 (1) Income within the scope of ASC 606. (2) Includes other operating income within the scope of ASC 606 amounting to $9 thousand and $8 thousand for the three months ended March 31, 2024 and March 31, 2023, respectively. Includes other operating income of $64 thousand and $91 thousand related to swap fee income on a back-to-back loan swaps for the three months ended March 31, 2024 and March 31, 2023, respectively, which is outside the scope of ASC 606. |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Operating Expenses | |
Schedule of components of other operating expenses | The following table shows the components of other operating expenses for the three months ended March 31, 2024 and March 31, 2023. Three months ended March 31, (Dollars in thousands) 2024 2023 Advertising expense $ 97 $ 77 Data processing 527 434 FDIC insurance 260 213 Professional fees 286 158 State franchise tax 570 577 Director costs 211 255 Other operating expenses 415 378 Total other operating expenses $ 2,366 $ 2,092 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of changes in accumulated other comprehensive income (loss) | March 31, 2024 Unrealized Gains on Securities Transferred from Unrealized (Loss) on Available-for-sale to Accumulated Other (Dollars in thousands) Available-for-sale Securities Held-to-maturity Comprehensive (Loss) Beginning balance, January 1, 2024 $ (12,400) $ 149 $ (12,251) Net change during the period (380) (22) (402) Ending Balance, March 31, 2024 $ (12,780) $ 127 $ (12,653) March 31, 2023 Unrealized Gains on Securities Transferred from Unrealized Gain on Available-for-sale to Accumulated Other (Dollars in thousands) Available-for-sale Securities Held-to-maturity Comprehensive (Loss) Beginning balance, January 1, 2023 $ (28,942) $ 245 $ (28,697) Net change during the period 3,529 (27) 3,502 Ending Balance, March 31, 2023 $ (25,413) $ 218 $ (25,195) |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Securities Available-for-Sale | ||
Amortized cost | $ 174,935 | $ 185,690 |
Gross unrealized (losses) | (16,178) | (15,697) |
Available-for-sale, fair value | 158,757 | 169,993 |
Financial Asset, Past Due [Member] | ||
Securities Available-for-Sale | ||
Available-for-sale | 0 | 0 |
U.S. Treasuries | ||
Securities Available-for-Sale | ||
Amortized cost | 38,824 | 44,793 |
Gross unrealized (losses) | (1,705) | (1,816) |
Available-for-sale, fair value | 37,119 | 42,977 |
U.S. government and federal agencies | ||
Securities Available-for-Sale | ||
Amortized cost | 13,879 | 13,850 |
Gross unrealized (losses) | (605) | (575) |
Available-for-sale, fair value | 13,274 | 13,275 |
Corporate bonds | ||
Securities Available-for-Sale | ||
Amortized cost | 3,000 | 3,000 |
Gross unrealized (losses) | (351) | (477) |
Available-for-sale, fair value | 2,649 | 2,523 |
U.S. agency collateralized mortgage obligations | ||
Securities Available-for-Sale | ||
Amortized cost | 40,136 | 40,806 |
Gross unrealized (losses) | (6,665) | (6,496) |
Available-for-sale, fair value | 33,471 | 34,310 |
Tax-exempt municipal | ||
Securities Available-for-Sale | ||
Amortized cost | 1,380 | 1,380 |
Gross unrealized (losses) | (181) | (149) |
Available-for-sale, fair value | 1,199 | 1,231 |
Taxable municipal | ||
Securities Available-for-Sale | ||
Amortized cost | 606 | 606 |
Gross unrealized (losses) | (18) | (19) |
Available-for-sale, fair value | 588 | 587 |
U.S. agency mortgage-backed | ||
Securities Available-for-Sale | ||
Amortized cost | 77,110 | 81,255 |
Gross unrealized (losses) | (6,653) | (6,165) |
Available-for-sale, fair value | $ 70,457 | $ 75,090 |
Investment Securities - Securit
Investment Securities - Securities in a Gross Unrealized Loss Position - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Available-for-Sale, Fair Value | ||
Fair Value, 12 Months or Longer | $ 158,757 | $ 169,993 |
Fair Value | 158,757 | 169,993 |
Gross Unrealized Losses | ||
Gross Unrealized Losses, 12 Months or Longer | (16,178) | (15,697) |
Gross Unrealized Losses | (16,178) | (15,697) |
U.S. Treasuries | ||
Available-for-Sale, Fair Value | ||
Fair Value, 12 Months or Longer | 37,119 | 42,977 |
Fair Value | 37,119 | 42,977 |
Gross Unrealized Losses | ||
Gross Unrealized Losses, 12 Months or Longer | (1,705) | (1,816) |
Gross Unrealized Losses | (1,705) | (1,816) |
U.S. government and federal agencies | ||
Available-for-Sale, Fair Value | ||
Fair Value, 12 Months or Longer | 13,274 | 13,275 |
Fair Value | 13,274 | 13,275 |
Gross Unrealized Losses | ||
Gross Unrealized Losses, 12 Months or Longer | (605) | (575) |
Gross Unrealized Losses | (605) | (575) |
Corporate bonds | ||
Available-for-Sale, Fair Value | ||
Fair Value, 12 Months or Longer | 2,649 | 2,523 |
Fair Value | 2,649 | 2,523 |
Gross Unrealized Losses | ||
Gross Unrealized Losses, 12 Months or Longer | (351) | (477) |
Gross Unrealized Losses | (351) | (477) |
U.S. agency collateralized mortgage obligations | ||
Available-for-Sale, Fair Value | ||
Fair Value, 12 Months or Longer | 33,471 | 34,310 |
Fair Value | 33,471 | 34,310 |
Gross Unrealized Losses | ||
Gross Unrealized Losses, 12 Months or Longer | (6,665) | (6,496) |
Gross Unrealized Losses | (6,665) | (6,496) |
Tax-exempt municipal | ||
Available-for-Sale, Fair Value | ||
Fair Value, 12 Months or Longer | 1,199 | 1,231 |
Fair Value | 1,199 | 1,231 |
Gross Unrealized Losses | ||
Gross Unrealized Losses, 12 Months or Longer | (181) | (149) |
Gross Unrealized Losses | (181) | (149) |
Taxable municipal | ||
Available-for-Sale, Fair Value | ||
Fair Value, 12 Months or Longer | 588 | 587 |
Fair Value | 588 | 587 |
Gross Unrealized Losses | ||
Gross Unrealized Losses, 12 Months or Longer | (18) | (19) |
Gross Unrealized Losses | (18) | (19) |
U.S. agency mortgage-backed | ||
Available-for-Sale, Fair Value | ||
Fair Value, 12 Months or Longer | 70,457 | 75,090 |
Fair Value | 70,457 | 75,090 |
Gross Unrealized Losses | ||
Gross Unrealized Losses, 12 Months or Longer | (6,653) | (6,165) |
Gross Unrealized Losses | $ (6,653) | $ (6,165) |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of Investment Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 22,977 | |
Due after one year through five years | 39,011 | |
Due after five years through ten years | 51,198 | |
Due after ten years | 61,749 | |
Total Available-for-sale Securities | 174,935 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 22,567 | |
Due after one year through five years | 37,075 | |
Due after five years through ten years | 48,114 | |
Due after ten years | 51,001 | |
Total Available-for-sale Securities | $ 158,757 | |
Weighted average remaining life | 3 years | 3 years |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value - Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Securities Held-to-Maturity | ||
Amortized cost | $ 94,662 | $ 95,505 |
Gross unrealized (losses) | (16,667) | (15,973) |
Securities held-to-maturity, fair value | 79,532 | |
Securities held-to-maturity, fair value. | 77,995 | |
U.S. Treasuries | ||
Securities Held-to-Maturity | ||
Amortized cost | 6,001 | 6,001 |
Gross unrealized (losses) | (713) | (667) |
Securities held-to-maturity, fair value | 5,334 | |
Securities held-to-maturity, fair value. | 5,288 | |
U.S. government and federal agencies | ||
Securities Held-to-Maturity | ||
Amortized cost | 35,406 | 35,434 |
Gross unrealized (losses) | (5,343) | (5,100) |
Securities held-to-maturity, fair value | 30,334 | |
Securities held-to-maturity, fair value. | 30,063 | |
U.S. agency collateralized mortgage obligations | ||
Securities Held-to-Maturity | ||
Amortized cost | 19,019 | 19,395 |
Gross unrealized (losses) | (4,168) | (4,095) |
Securities held-to-maturity, fair value | 15,300 | |
Securities held-to-maturity, fair value. | 14,851 | |
Taxable municipal | ||
Securities Held-to-Maturity | ||
Amortized cost | 6,053 | 6,057 |
Gross unrealized (losses) | (1,132) | (1,101) |
Securities held-to-maturity, fair value | 4,956 | |
Securities held-to-maturity, fair value. | 4,921 | |
U.S. agency mortgage-backed | ||
Securities Held-to-Maturity | ||
Amortized cost | 28,183 | 28,618 |
Gross unrealized (losses) | (5,311) | (5,010) |
Securities held-to-maturity, fair value | $ 23,608 | |
Securities held-to-maturity, fair value. | $ 22,872 |
Investment Securities - Contr_2
Investment Securities - Contractual Maturities of Investment Securities - Held-to-maturity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Held-to-maturity, Amortized Cost | ||
Due after one year through five years | $ 22,160 | |
Due after five years through ten years | 23,460 | |
Due after ten years | 49,042 | |
Total Held-to-maturity Securities | 94,662 | |
Held-to-maturity, Fair Value | ||
Due after one year through five years | 19,441 | |
Due after five years through ten years | 19,566 | |
Due after ten years | 38,988 | |
Total Held-to-maturity Securities | $ 77,995 | |
Weighted average remaining life | 6 years 6 months | 6 years 8 months 12 days |
Investment Securities - Restric
Investment Securities - Restricted Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investment Securities | ||
Federal Reserve Bank Stock | $ 3,314 | $ 3,310 |
Federal Home Loan Bank Stock | 1,588 | 1,642 |
Community Bankers' Bank Stock | 60 | 60 |
Total Restricted Securities | $ 4,962 | $ 5,012 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 security | |
Proceeds from Sale and Maturity of Debt Securities, Available-for-Sale | |||
Available-for-sale securities sold at par value | $ 12,000 | ||
Debt Securities, Available-for-Sale, Realized Gain (Loss) | |||
Debt securities, available-for-sale, realized gain (loss) | $ (202) | ||
Number of securities in unrealized loss position | security | 156 | 158 | |
Allowance for credit loss | $ 0 |
Investment Securities - Pledged
Investment Securities - Pledged Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investment Securities | ||
Securities held-to-maturity, fair value | $ 79,532 | |
Amortized cost | $ 94,662 | 95,505 |
Asset Pledged as Collateral without Right | Deposits | ||
Investment Securities | ||
Available-for-sale, at fair value | 68,800 | 90,300 |
Securities held-to-maturity, fair value | 34,400 | 36,100 |
Amortized cost | 40,700 | 42,300 |
Amortized cost | $ 74,000 | $ 95,800 |
Investment Securities - Equity
Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Equity Securities | |||
Equity securities with readily determinable fair values | $ 2,960 | $ 2,792 | |
Equity Securities, Realized Gain (Loss) | |||
Gain (loss) on investments | $ 124 | $ 89 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Gross Loans | $ 1,820,882 | $ 1,854,984 |
Less: Allowance for loan credit losses | (18,671) | (19,543) |
Net deferred loan costs. | 5,049 | 4,983 |
Total net loans | 1,807,260 | 1,840,424 |
Real Estate Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Gross Loans | 1,143,472 | 1,146,116 |
Real Estate Loans | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Gross Loans | 151,476 | 180,922 |
Real Estate Loans | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Gross Loans | 482,254 | 482,182 |
Commercial - Non-Real Estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Gross Loans | 42,908 | 45,204 |
Consumer - Non-Real Estate | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Gross Loans | $ 772 | $ 560 |
Allowance for Loan Credit Los_3
Allowance for Loan Credit Losses - Allowance for loan losses activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | $ 19,543 | $ 20,208 |
Recoveries | 1 | 1 |
Provision for (recovery of) credit losses | (873) | (755) |
Ending balance | 18,671 | 21,619 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 2,165 | |
Real Estate Loans | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 12,841 | 13,205 |
Provision for (recovery of) credit losses | (119) | (742) |
Ending balance | 12,722 | 9,814 |
Real Estate Loans | Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | (2,649) | |
Real Estate Loans | Construction and land development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 1,787 | 2,860 |
Provision for (recovery of) credit losses | (502) | (139) |
Ending balance | 1,285 | 3,197 |
Real Estate Loans | Construction and land development | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 476 | |
Real Estate Loans | Residential Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 4,323 | 3,044 |
Provision for (recovery of) credit losses | (140) | 330 |
Ending balance | 4,183 | 7,926 |
Real Estate Loans | Residential Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 4,552 | |
Commercial - Non-Real Estate | Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 495 | 456 |
Recoveries | 1 | 1 |
Provision for (recovery of) credit losses | (19) | (148) |
Ending balance | 477 | 676 |
Commercial - Non-Real Estate | Commercial | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 367 | |
Consumer - Non-Real Estate | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 97 | 5 |
Provision for (recovery of) credit losses | (93) | (56) |
Ending balance | $ 4 | 6 |
Consumer - Non-Real Estate | Consumer | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 57 | |
Unallocated | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 638 | |
Unallocated | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | $ (638) |
Allowance for Loan Credit Los_4
Allowance for Loan Credit Losses - Allowance and loans by impairment methodology (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Allowance for Loan Credit Losses | ||
Individually evaluated for impairment | $ 0 | $ 0 |
Allowance for Loan Credit Los_5
Allowance for Loan Credit Losses - Past due and non-accrual loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing receivable, past due | ||
Current | $ 1,820,882 | $ 1,854,984 |
Total loans | 1,820,882 | 1,854,984 |
Commercial Real Estate | Real Estate Loans | ||
Financing receivable, past due | ||
Current | 1,143,472 | 1,146,116 |
Total loans | 1,143,472 | 1,146,116 |
Construction and land development | Real Estate Loans | ||
Financing receivable, past due | ||
Current | 151,476 | 180,922 |
Total loans | 151,476 | 180,922 |
Residential Real Estate | Real Estate Loans | ||
Financing receivable, past due | ||
Current | 482,254 | 482,182 |
Total loans | 482,254 | 482,182 |
Commercial | Commercial - Non-Real Estate | ||
Financing receivable, past due | ||
Current | 42,908 | 45,204 |
Total loans | 42,908 | 45,204 |
Consumer | Consumer - Non-Real Estate | ||
Financing receivable, past due | ||
Current | 772 | 560 |
Total loans | $ 772 | $ 560 |
Allowance for Loan Credit Los_6
Allowance for Loan Credit Losses - Credit quality indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing receivable, credit quality indicator | ||
Total | $ 1,825,931 | $ 1,859,967 |
Commercial Real Estate | Real Estate Loans | ||
Financing receivable, credit quality indicator | ||
2024 | 2,003 | |
2023 | 67,539 | |
2022 | 331,478 | |
2021 | 208,036 | |
2020 | 124,290 | |
Prior | 406,721 | |
Revolving | 3,405 | |
Total | 1,143,472 | |
Construction and land development | Real Estate Loans | ||
Financing receivable, credit quality indicator | ||
2024 | 9,810 | |
2023 | 49,617 | |
2022 | 37,101 | |
2021 | 15,565 | |
2020 | 5,804 | |
Prior | 9,160 | |
Revolving | 24,419 | |
Total | 151,476 | |
Residential Real Estate | Real Estate Loans | ||
Financing receivable, credit quality indicator | ||
2024 | 6,627 | |
2023 | 81,655 | |
2022 | 114,125 | |
2021 | 130,588 | |
2020 | 86,610 | |
Prior | 44,948 | |
Revolving | 17,701 | |
Total | 482,254 | |
Commercial | Commercial - Non-Real Estate | ||
Financing receivable, credit quality indicator | ||
2024 | 3,075 | |
2023 | 5,891 | |
2022 | 6,587 | |
2021 | 1,810 | |
2020 | 2,373 | |
Prior | 8,152 | |
Revolving | 15,020 | |
Total | 42,908 | |
Consumer | Consumer - Non-Real Estate | ||
Financing receivable, credit quality indicator | ||
2024 | 526 | |
2023 | 184 | |
2022 | 4 | |
2021 | 23 | |
Prior | 6 | |
Revolving | 29 | |
Total | 772 | |
Pass | Commercial Real Estate | Real Estate Loans | ||
Financing receivable, credit quality indicator | ||
2024 | 2,003 | |
2023 | 67,539 | |
2022 | 318,376 | |
2021 | 208,036 | |
2020 | 124,290 | |
Prior | 406,721 | |
Revolving | 3,405 | |
Total | 1,130,370 | |
Pass | Construction and land development | Real Estate Loans | ||
Financing receivable, credit quality indicator | ||
2024 | 9,810 | |
2023 | 49,617 | |
2022 | 37,101 | |
2021 | 15,565 | |
2020 | 5,804 | |
Prior | 7,040 | |
Revolving | 24,419 | |
Total | 149,356 | |
Pass | Residential Real Estate | Real Estate Loans | ||
Financing receivable, credit quality indicator | ||
2024 | 6,627 | |
2023 | 81,655 | |
2022 | 114,125 | |
2021 | 130,588 | |
2020 | 86,610 | |
Prior | 44,948 | |
Revolving | 17,701 | |
Total | 482,254 | |
Pass | Commercial | Commercial - Non-Real Estate | ||
Financing receivable, credit quality indicator | ||
2024 | 3,075 | |
2023 | 5,891 | |
2022 | 6,587 | |
2021 | 1,810 | |
2020 | 2,373 | |
Prior | 8,152 | |
Revolving | 15,020 | |
Total | 42,908 | |
Pass | Consumer | Consumer - Non-Real Estate | ||
Financing receivable, credit quality indicator | ||
2024 | 526 | |
2023 | 184 | |
2022 | 4 | |
2021 | 23 | |
Prior | 6 | |
Revolving | 29 | |
Total | 772 | |
Special Mention | Commercial Real Estate | Real Estate Loans | ||
Financing receivable, credit quality indicator | ||
2022 | 13,102 | |
Total | 13,102 | |
Special Mention | Construction and land development | Real Estate Loans | ||
Financing receivable, credit quality indicator | ||
Prior | 2,120 | |
Total | $ 2,120 |
Allowance for Loan Credit Los_7
Allowance for Loan Credit Losses - Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | $ 19,543 | $ 20,208 |
Recovery of credit losses | 776 | 774 |
Ending balance | 18,671 | 21,619 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 2,165 | |
Unfunded loan commitments | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 620 | 303 |
Recovery of credit losses | 97 | (19) |
Ending balance | $ 717 | 1,021 |
Unfunded loan commitments | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | $ 737 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives | ||
Years to maturity | 3 years 4 months 24 days | 3 years 2 months 12 days |
Interest Rate Swap | Not Designated as Hedging Instrument | ||
Derivatives | ||
Notional amount | $ 38,594 | $ 38,888 |
Derivative, average variable interest rate (as a percent) | 5.20% | 4.63% |
Derivative, average fixed interest rate (as a percent) | 5.20% | 4.63% |
Pay fixed/receive variable swaps | Not Designated as Hedging Instrument | ||
Derivatives | ||
Notional amount | $ 19,297 | $ 19,444 |
Estimated fair value, assets | $ 1,026 | $ 846 |
Derivative, average variable interest rate (as a percent) | 6.31% | 5.87% |
Derivative, average fixed interest rate (as a percent) | 4.08% | 3.39% |
Pay variable/receive fixed swaps | Not Designated as Hedging Instrument | ||
Derivatives | ||
Notional amount | $ 19,297 | $ 19,444 |
Estimated fair value, (liabilities) | $ (1,026) | $ (846) |
Derivative, average variable interest rate (as a percent) | 4.08% | 3.39% |
Derivative, average fixed interest rate (as a percent) | 6.31% | 5.87% |
Deposits and Borrowings - Depos
Deposits and Borrowings - Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Deposits: | ||
Non-interest bearing demand deposits | $ 404,669 | $ 411,374 |
Interest-bearing demand deposits | 644,580 | 607,971 |
Savings deposits | 50,664 | 52,061 |
Time deposits | 801,077 | 835,194 |
Total deposits | $ 1,900,990 | $ 1,906,600 |
Deposits and Borrowings - Short
Deposits and Borrowings - Short- term Debt and Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Carrying Value - Short-term Debt | $ 77,000 | $ 54,000 |
Carrying Value - Long-term Debt | $ 24,729 | 24,708 |
Subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 5.25% | |
Weighted-Average Interest Rate | 5.25% | |
Carrying Value - Long-term Debt | $ 24,729 | 24,708 |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 4.76% | |
Weighted-Average Interest Rate | 4.76% | |
Carrying Value - Short-term Debt | $ 77,000 | $ 54,000 |
Deposits and Borrowings - Addit
Deposits and Borrowings - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 30, 2024 USD ($) | Jan. 31, 2024 | Mar. 31, 2024 USD ($) customer | Dec. 31, 2023 USD ($) | Jun. 15, 2022 USD ($) | |
Debt instrument | |||||
Overdraft demand deposits reclassified to loans | $ 1 | ||||
Certificate of deposits with minimum denomination of $250,000 | $ 356,800 | $ 359,300 | |||
Brokered deposits | $ 306,100 | 320,600 | |||
Number of depositors representing five percent or more of total deposits | customer | 0 | ||||
FHLB available borrowing capacity | $ 452,800 | ||||
Carrying Value - Short-term Debt | 77,000 | 54,000 | |||
Loans, net of unearned income | 1,825,931 | 1,859,967 | |||
Proceeds from Federal Reserve Bank borrowings | 23,000 | ||||
Fair value of held-to-maturity Securities | 79,532 | ||||
Federal Reserve Bank borrowings | |||||
Debt instrument | |||||
Stated Interest Rates | 4.76% | ||||
Maximum borrowing capacity | 111,900 | ||||
Short-Term Debt | 54,000 | ||||
Proceeds from short-term debt | 23,000 | ||||
Carrying Value - Short-term Debt | 77,000 | ||||
Term of advance | 1 year | ||||
Asset Pledged as Collateral without Right [Member] | Federal Reserve Bank borrowings | |||||
Debt instrument | |||||
Held-to-maturity securities at amortized cost | 77,900 | ||||
Fair value of held-to-maturity Securities | $ 62,600 | ||||
Subordinated debt | |||||
Debt instrument | |||||
Face amount or Principal amount | $ 25,000 | ||||
Stated Interest Rates | 5.25% | ||||
FHLB advances | |||||
Debt instrument | |||||
Stated Interest Rates | 4.76% | ||||
Carrying Value - Short-term Debt | $ 77,000 | $ 54,000 | |||
Federal Funds | |||||
Debt instrument | |||||
Maximum borrowing capacity | 110,000 | ||||
Line of credit | 0 | ||||
Federal Reserve Bank borrowings | |||||
Debt instrument | |||||
Line of credit | 0 | ||||
Federal Reserve Bank borrowings | Asset Pledged as Collateral without Right [Member] | |||||
Debt instrument | |||||
Loans, net of unearned income | $ 138,900 | ||||
Secured Overnight Financing Rate (SOFR) | Subordinated debt | |||||
Debt instrument | |||||
Stated Interest Rates | 5.25% | ||||
Basis points | 2.45% |
Deposits and Borrowings - Time
Deposits and Borrowings - Time deposits and FHLB advances by contractual maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Contractual maturity | |
2024 | $ 443,700 |
2025 | 241,722 |
2026 | 89,284 |
2027 | 25,292 |
2028 | 549 |
Thereafter | 530 |
Total | $ 801,077 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | $ 258,684 | $ 235,560 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | $ 16,351 | $ 16,329 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value of assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Securities available-for-sale: | ||
Equity securities, at fair value | $ 2,960 | $ 2,792 |
Fair Value, Recurring | ||
Securities available-for-sale: | ||
Equity securities, at fair value | 2,960 | 2,792 |
Loan servicing rights | 47 | 22 |
Total assets at fair value | 162,790 | 173,653 |
Liabilities: | ||
Total liabilities at fair value | 1,026 | 846 |
Fair Value, Recurring | Interest Rate Swap [Member] | ||
Securities available-for-sale: | ||
Interest rate swap agreements | 1,026 | |
Total assets at fair value | 846 | |
Liabilities: | ||
Interest rate swap agreements | 1,026 | 846 |
Fair Value, Recurring | U.S. Treasuries | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 37,119 | 42,977 |
Fair Value, Recurring | U.S. government and federal agencies | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 13,274 | 13,275 |
Fair Value, Recurring | Corporate bonds | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 2,649 | 2,523 |
Fair Value, Recurring | U.S. agency collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 33,471 | 34,310 |
Fair Value, Recurring | Tax-exempt municipal | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 1,199 | 1,231 |
Fair Value, Recurring | Taxable municipal | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 588 | 587 |
Fair Value, Recurring | U.S. agency mortgage-backed | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 70,457 | 75,090 |
Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Securities available-for-sale: | ||
Equity securities, at fair value | 2,960 | 2,792 |
Total assets at fair value | 2,960 | 2,792 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Securities available-for-sale: | ||
Total assets at fair value | 159,783 | 170,839 |
Liabilities: | ||
Total liabilities at fair value | 1,026 | 846 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | Interest Rate Swap [Member] | ||
Securities available-for-sale: | ||
Interest rate swap agreements | 1,026 | |
Total assets at fair value | 846 | |
Liabilities: | ||
Interest rate swap agreements | 1,026 | 846 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | U.S. Treasuries | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 37,119 | 42,977 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | U.S. government and federal agencies | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 13,274 | 13,275 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | Corporate bonds | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 2,649 | 2,523 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | U.S. agency collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 33,471 | 34,310 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | Tax-exempt municipal | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 1,199 | 1,231 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | Taxable municipal | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 588 | 587 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | U.S. agency mortgage-backed | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 70,457 | 75,090 |
Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Securities available-for-sale: | ||
Loan servicing rights | 47 | 22 |
Total assets at fair value | $ 47 | $ 22 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying value and estimated fair value of financial instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Securities: | ||
Equity securities, at fair value | $ 2,960 | $ 2,792 |
Restricted securities, at cost | 4,962 | 5,012 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 153,016 | 99,005 |
Securities: | ||
Available-for-sale | 158,757 | 169,993 |
Held-to-maturity | 94,662 | 95,505 |
Equity securities, at fair value | 2,960 | 2,792 |
Restricted securities, at cost | 4,962 | 5,012 |
Loans, net | 1,807,260 | 1,840,424 |
Interest rate swap agreements | 1,026 | 846 |
Loan servicing rights | 47 | 22 |
Accrued interest receivable | 6,410 | 6,110 |
Liabilities: | ||
Deposits | 1,900,990 | 1,906,600 |
Federal Reserve Bank borrowings | 77,000 | 54,000 |
Federal funds purchased | 10,000 | |
Subordinated debt | 24,729 | 24,708 |
Interest rate swap agreements | 1,026 | 846 |
Accrued interest payable | 2,949 | 4,559 |
Fair Value | ||
Assets: | ||
Cash and cash equivalents | 153,016 | 99,005 |
Securities: | ||
Available-for-sale | 158,757 | 169,993 |
Held-to-maturity | 77,995 | 79,532 |
Equity securities, at fair value | 2,960 | 2,792 |
Restricted securities, at cost | 4,962 | 5,012 |
Loans, net | 1,671,566 | 1,730,205 |
Interest rate swap agreements | 1,026 | 846 |
Loan servicing rights | 47 | 22 |
Accrued interest receivable | 6,410 | 6,110 |
Liabilities: | ||
Deposits | 1,900,160 | 1,906,835 |
Federal Reserve Bank borrowings | 77,000 | 54,000 |
Federal funds purchased | 10,000 | |
Subordinated debt | 21,681 | 21,873 |
Interest rate swap agreements | 1,026 | 846 |
Accrued interest payable | 2,949 | 4,559 |
Fair Value, Inputs, Level 1 | Fair Value | ||
Assets: | ||
Cash and cash equivalents | 153,016 | 99,005 |
Securities: | ||
Equity securities, at fair value | 2,960 | 2,792 |
Fair Value, Inputs, Level 2 | Fair Value | ||
Securities: | ||
Available-for-sale | 158,757 | 169,993 |
Held-to-maturity | 77,995 | 79,532 |
Restricted securities, at cost | 4,962 | 5,012 |
Interest rate swap agreements | 1,026 | 846 |
Accrued interest receivable | 6,410 | 6,110 |
Liabilities: | ||
Deposits | 1,900,160 | 1,906,835 |
Federal Reserve Bank borrowings | 77,000 | 54,000 |
Federal funds purchased | 10,000 | |
Interest rate swap agreements | 1,026 | 846 |
Accrued interest payable | 2,949 | 4,559 |
Fair Value, Inputs, Level 3 | Fair Value | ||
Securities: | ||
Loans, net | 1,671,566 | 1,730,205 |
Loan servicing rights | 47 | 22 |
Liabilities: | ||
Subordinated debt | $ 21,681 | $ 21,873 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional information (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Measurements | ||
Collateral dependent loans | $ 0 | $ 0 |
Other real estate owned | $ 0 | $ 0 |
Loan servicing rights | ||
Fair Value Measurements | ||
Loans Receivable | 1% | |
Maximum percentage of SBA guaranty | 85% | |
Loan servicing portfolio | $ 2,800,000 | |
Servicing Asset at Fair Value | $ 47,000 | |
Weighted average discount rate | 11.32% | |
Prepayment percent of loan servicing portfolio | 12.16% | |
Servicing rights valuation allowance | $ 0 | |
Loan servicing rights | Minimum | ||
Fair Value Measurements | ||
Servicing asset offered | 50,000 | |
Loan servicing rights | Maximum | ||
Fair Value Measurements | ||
Servicing asset offered | $ 2,000,000 |
Earnings per Common Share - Com
Earnings per Common Share - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income available to common shareholders (in thousands): | ||
Net Income (Loss) | $ 4,204 | $ 6,304 |
Less: Income attributable to unvested restricted stock awards | (14) | (23) |
Net income available to common shareholders | $ 4,190 | $ 6,281 |
Weighted average shares outstanding: | ||
Common shares outstanding, including unvested restricted stock | 14,176,570 | 14,117,981 |
Less: Unvested restricted stock | (45,584) | (50,934) |
Weighted-average common shares outstanding - basic | 14,130,986 | 14,067,047 |
Earnings per common share - basic | $ 0.30 | $ 0.45 |
Income available to common shareholders (in thousands): | ||
Net Income (Loss) | $ 4,204 | $ 6,304 |
Less: Income attributable to unvested restricted stock awards | (14) | (23) |
Net income available to common shareholders | $ 4,190 | $ 6,281 |
Weighted average shares outstanding: | ||
Common shares outstanding, including unvested restricted stock | 14,176,570 | 14,117,981 |
Less: Unvested restricted stock | (45,584) | (50,934) |
Plus: Effect of dilutive options | 50,268 | 89,677 |
Weighted-average common shares outstanding - diluted | 14,181,254 | 14,156,724 |
Earnings per common share - diluted | $ 0.30 | $ 0.44 |
Earnings per Common Share - Add
Earnings per Common Share - Additional information (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Employee Stock Option | ||
Antidilutive securities excluded from computation of earnings per share | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 |
Stock Based Compensation Plan_2
Stock Based Compensation Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Apr. 28, 2015 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 455 | $ 363 | |
Share-based compensation expense | 0 | $ 0 | |
Unrecognized share-based compensation expense | $ 0 | ||
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock grants | 1,000 | 0 | |
Weighted average grant date fair value, granted | $ 17.63 | ||
Share-based compensation expense | $ 132 | $ 197 | |
Fair value of vested shares | 48 | $ 139 | |
Unrecognized share-based compensation expense | $ 922 | ||
Recognition period | 1 year 9 months 18 days | ||
Restricted Stock Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting term | 2 years | ||
Restricted Stock Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting term | 5 years | ||
2015 Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reserved for issuance | 976,211 | ||
Number of shares available for grant | 277,529 | ||
Number of shares authorized | 1,490,700 | ||
Vesting term | 5 years | ||
Expiration term | 10 years | ||
2015 Plan | Employee Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price of stock expressed in fair value percentage | 100% | ||
2015 Plan | Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of award | 10 years |
Stock Based Compensation Plan -
Stock Based Compensation Plan - Summary of Stock Options Activity (Details) - Employee Stock Option - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding, beginning balance | 162,147 | |
Options granted | 0 | 0 |
Options exercised | (60,637) | |
Options outstanding, ending balance | 101,510 | |
Options exercisable | 101,510 | |
Weighted average exercise price, beginning balance | $ 11.77 | |
Weighted average exercise price, exercised | 11.77 | |
Weighted average exercise price, ending balance | 11.77 | |
Weighted average exercise price, exercisable | $ 11.77 | |
Aggregate intrinsic value outstanding | $ 623,959 | |
Aggregate intrinsic value exercisable | $ 623,959 |
Stock Based Compensation Plan_3
Stock Based Compensation Plan - Summary of Stock Options Outstanding and Exercisable (Details) - Employee Stock Option - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding | 101,510 | 162,147 |
Options outstanding, weighted average remaining contractual life (in years) | 1 year 25 days | |
Options exercisable | 101,510 | |
Options exercisable, weighted average remaining contractual life (in years) | 1 year 25 days | |
$11.01 - $12.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price range minimum rate | $ 11.01 | |
Exercise price range maximum rate | $ 12 | |
Options outstanding | 100,448 | |
Options outstanding, weighted average remaining contractual life (in years) | 1 year 29 days | |
Options exercisable | 100,448 | |
Options exercisable, weighted average remaining contractual life (in years) | 1 year 29 days | |
$12.01 - $13.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price range minimum rate | $ 12.01 | |
Exercise price range maximum rate | $ 13 | |
Options outstanding | 1,062 | |
Options outstanding, weighted average remaining contractual life (in years) | 8 months 23 days | |
Options exercisable | 1,062 | |
Options exercisable, weighted average remaining contractual life (in years) | 8 months 23 days |
Stock Based Compensation Plan_4
Stock Based Compensation Plan - Summary of Restricted Stock Awards (Details) - Restricted Stock Awards - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested shares outstanding, beginning balance | 47,318 | |
Nonvested shares, granted | 1,000 | 0 |
Nonvested shares, vested | (2,389) | |
Nonvested shares outstanding, ending balance | 45,929 | |
Weighted average grant date fair value outstanding, beginning balance | $ 23.12 | |
Weighted average grant date fair value, granted | 17.63 | |
Weighted average grant date fair value, vested | 15.79 | |
Weighted average grant date fair value, ending balance | $ 23.38 |
Regulatory Capital (Details)
Regulatory Capital (Details) | Mar. 31, 2024 |
Regulatory Capital | |
Capital conservation buffer ratio | 0.025 |
Regulatory Capital - Schedule o
Regulatory Capital - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Total capital (to risk weighted assets) | ||
Actual, Amount | $ 286,038 | $ 282,082 |
Actual, Ratio | 0.161 | 0.157 |
Minimum Capital Requirements, Amount | $ 186,320 | $ 188,448 |
Minimum Capital Requirements, Ratio | 0.105 | 0.105 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 177,447 | $ 179,475 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.100 | 0.100 |
Tier 1 capital (to risk weighted assets) | ||
Actual, Amount | $ 267,795 | $ 263,637 |
Actual, Ratio | 0.151 | 0.147 |
Minimum Capital Requirements, Amount | $ 150,830 | $ 152,553 |
Minimum Capital Requirements, Ratio | 0.085 | 0.085 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 141,958 | $ 143,580 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.080 | 0.080 |
Common equity tier 1 capital (to risk weighted assets) | ||
Actual, Amount | $ 267,795 | $ 263,637 |
Actual, Ratio | 0.151 | 0.147 |
Minimum Capital Requirements, Amount | $ 124,213 | $ 125,632 |
Minimum Capital Requirements, Ratio | 0.070 | 0.070 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 115,341 | $ 116,658 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.065 | 0.065 |
Tier 1 capital (to average assets) | ||
Actual, Amount | $ 267,795 | $ 263,637 |
Actual, Ratio | 0.118 | 0.116 |
Minimum Capital Requirements, Amount | $ 90,500 | $ 91,163 |
Minimum Capital Requirements, Ratio | 0.040 | 0.040 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 113,125 | $ 113,954 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.050 | 0.050 |
Revenue - Components of Non-int
Revenue - Components of Non-interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Service charges on deposit accounts and Other service charges and fees | ||
Bank owned life insurance | $ 100 | |
Losses on sale of available-for-sale securities | (202) | |
Gain on sale of government guaranteed loans | $ 133 | |
Non-qualified deferred compensation plan asset gains, net | 124 | 89 |
Other income | 72 | 98 |
Total non-interest income | 818 | 566 |
Overdrawn account fees | ||
Service charges on deposit accounts and Other service charges and fees | ||
Non-interest income | 21 | 14 |
Account service fees | ||
Service charges on deposit accounts and Other service charges and fees | ||
Non-interest income | 67 | 58 |
Interchange income | ||
Service charges on deposit accounts and Other service charges and fees | ||
Non-interest income | 88 | 99 |
Other Charges and Fees | ||
Service charges on deposit accounts and Other service charges and fees | ||
Non-interest income | 61 | 104 |
Insurance Commissions | ||
Service charges on deposit accounts and Other service charges and fees | ||
Non-interest income | $ 252 | $ 206 |
Revenue - Additional informatio
Revenue - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||
Other operating income (loss) | $ 9 | $ 8 |
Gain (loss) on fair value of adjustment on equity securities | $ 64 | $ 91 |
Other Operating Expenses (Detai
Other Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Operating Expenses | ||
Advertising expense | $ 97 | $ 77 |
Data processing | 527 | 434 |
FDIC insurance | 260 | 213 |
Professional fees | 286 | 158 |
State franchise tax | 570 | 577 |
Director costs | 211 | 255 |
Other operating expenses | 415 | 378 |
Total other operating expenses | $ 2,366 | $ 2,092 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 229,914 | $ 212,800 |
Net change during the period | (402) | 3,502 |
Ending balance | 234,550 | 220,823 |
Debt securities, available-for-sale, realized gain (loss) | (202) | |
Gain (loss) on available-for-sale securities, related tax | (42) | |
Accumulated Other Comprehensive (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (12,251) | (28,697) |
Net change during the period | (402) | 3,502 |
Ending balance | (12,653) | (25,195) |
Unrealized Gain (Loss) on Available-for-sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (12,400) | (28,942) |
Net change during the period | (380) | 3,529 |
Ending balance | (12,780) | (25,413) |
Unrealized Gains on Securities Transferred from Available-for-sale to Held-to-maturity | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 149 | 245 |
Net change during the period | (22) | (27) |
Ending balance | $ 127 | $ 218 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 4,204 | $ 6,304 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |