Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 09, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38676 | |
Entity Registrant Name | Bank First Corp | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-1435359 | |
Entity Address, Address Line One | 402 North 8th Street | |
Entity Address, City or Town | Manitowoc | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 54220 | |
City Area Code | 920 | |
Local Phone Number | 652-3100 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BFC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,461,544 | |
Entity Central Index Key | 0001746109 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 33,179 | $ 29,171 |
Interest-bearing deposits | 10,806 | 267,689 |
Cash and cash equivalents | 43,985 | 296,860 |
Securities held to maturity, at amortized cost ($33,304 and $5,922 fair value at June 30, 2022 and December 31, 2021, respectively) | 33,867 | 5,911 |
Securities available for sale, at fair value | 292,426 | 212,689 |
Loans held for sale | 742 | 786 |
Loans, net | 2,364,919 | 2,215,199 |
Premises and equipment, net | 50,608 | 49,461 |
Goodwill | 55,357 | 55,357 |
Other investments | 19,564 | 9,004 |
Cash value of life insurance | 32,275 | 31,897 |
Core deposit intangibles, net | 3,448 | 4,035 |
Mortgage servicing rights ("MSR") | 6,977 | 5,016 |
Other real estate owned ("OREO") | 150 | |
Investment in minority-owned subsidiaries | 43,700 | 42,935 |
Other assets | 13,159 | 8,252 |
TOTAL ASSETS | 2,961,027 | 2,937,552 |
Deposits: | ||
Interest-bearing deposits | 1,781,609 | 1,728,504 |
Noninterest-bearing deposits | 819,868 | 799,936 |
Total deposits | 2,601,477 | 2,528,440 |
Securities sold under repurchase agreements | 16,125 | 41,122 |
Notes payable | 1,735 | 8,011 |
Subordinated notes | 17,500 | 17,500 |
Other liabilities | 10,028 | 19,826 |
Total liabilities | 2,646,865 | 2,614,899 |
Stockholders' equity: | ||
Serial preferred stock - $0.01 par value; Authorized - 5,000,000 shares | ||
Common stock - $0.01 par value; Authorized - 20,000,000 shares; Issued - 8,478,383 shares as of June 30, 2022 and December 31, 2021; Outstanding - 7,470,255 and 7,616,540 shares as of June 30, 2022 and December 31, 2021, respectively | 85 | 85 |
Additional paid-in capital | 92,613 | 93,149 |
Retained earnings | 276,630 | 258,104 |
Treasury stock, at cost - 1,008,128 and 861,843 shares as of June 30, 2022 and December 31, 2021, respectively | (43,135) | (32,294) |
Accumulated other comprehensive income (loss) | (12,031) | 3,609 |
Total stockholders' equity | 314,162 | 322,653 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,961,027 | $ 2,937,552 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Securities held to maturity, fair value | $ 33,304 | $ 5,922 |
Serial preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Serial preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 8,478,383 | 8,478,383 |
Common stock, shares outstanding | 7,470,255 | 7,616,540 |
Treasury stock, shares | 1,008,128 | 861,843 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income: | ||||
Loans, including fees | $ 23,472 | $ 22,932 | $ 45,778 | $ 46,208 |
Securities: | ||||
Taxable | 1,388 | 559 | 2,676 | 1,214 |
Tax-exempt | 437 | 465 | 886 | 937 |
Other | 523 | 47 | 700 | 86 |
Total interest income | 25,820 | 24,003 | 50,040 | 48,445 |
Interest expense: | ||||
Deposits | 1,741 | 1,987 | 3,302 | 4,137 |
Securities sold under repurchase agreements | 2 | 2 | 5 | 5 |
Borrowed funds | 597 | 200 | 963 | 386 |
Total interest expense | 2,340 | 2,189 | 4,270 | 4,528 |
Net interest income | 23,480 | 21,814 | 45,770 | 43,917 |
Provision for loan losses | 500 | 950 | 1,700 | 1,850 |
Net interest income after provision for loan losses | 22,980 | 20,864 | 44,070 | 42,067 |
Noninterest income: | ||||
Service charges | 1,441 | 1,596 | 2,863 | 3,063 |
Income from Ansay and Associates, LLC ("Ansay") | 819 | 723 | 1,645 | 1,448 |
Income from UFS, LLC ("UFS") | 563 | 663 | 1,268 | 1,029 |
Loan servicing income | 2,106 | 1,178 | 3,168 | 1,683 |
Net gain on sales of mortgage loans | 403 | 2,187 | 1,074 | 4,998 |
Net gain (loss) on sales and valuations of OREO | (25) | 73 | 146 | 206 |
Other | 244 | 227 | 621 | 563 |
Total noninterest income | 5,551 | 6,647 | 10,785 | 12,990 |
Noninterest expense: | ||||
Salaries, commissions, and employee benefits | 7,006 | 7,121 | 14,181 | 14,212 |
Occupancy | 1,214 | 968 | 2,329 | 2,178 |
Data processing | 1,431 | 1,358 | 2,776 | 2,751 |
Postage, stationery, and supplies | 144 | 131 | 327 | 328 |
Advertising | 55 | 53 | 144 | 102 |
Charitable contributions | 235 | 152 | 403 | 278 |
Outside service fees | 1,386 | 804 | 2,558 | 1,559 |
Amortization of intangibles | 294 | 351 | 587 | 702 |
Other | 1,454 | 1,356 | 2,645 | 2,542 |
Total noninterest expense | 13,219 | 12,294 | 25,950 | 24,652 |
Income before provision for income taxes | 15,312 | 15,217 | 28,905 | 30,405 |
Provision for income taxes | 3,658 | 3,669 | 7,068 | 7,343 |
Net Income | $ 11,654 | $ 11,548 | $ 21,837 | $ 23,062 |
Earnings per share - basic | $ 1.55 | $ 1.50 | $ 2.89 | $ 2.99 |
Earnings per share - diluted | 1.55 | 1.50 | 2.89 | 2.99 |
Dividends per share | $ 0.22 | $ 0.21 | $ 0.44 | $ 0.42 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidated Statements of Comprehensive Income | ||||
Net Income | $ 11,654 | $ 11,548 | $ 21,837 | $ 23,062 |
Unrealized gains (losses) on available for sale securities: | ||||
Unrealized holding gains (losses) arising during period | (10,193) | 721 | (21,424) | (971) |
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity | (1) | (1) | ||
Income tax (expense) benefit | 2,752 | (195) | 5,785 | 262 |
Total other comprehensive income (loss) | (7,441) | 526 | (15,640) | (710) |
Comprehensive income | $ 4,213 | $ 12,074 | $ 6,197 | $ 22,352 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2020 | $ 85 | $ 92,847 | $ 221,393 | $ (25,227) | $ 5,759 | $ 294,857 |
Net income | 11,514 | 11,514 | ||||
Other comprehensive income (loss) | (1,236) | (1,236) | ||||
Purchase of treasury stock | (402) | (402) | ||||
Sale of treasury stock | 23 | 23 | ||||
Cash dividends | (1,618) | (1,618) | ||||
Amortization of stock-based compensation | 304 | 304 | ||||
Vesting of restricted stock awards | (1,046) | 1,046 | ||||
Balance at Mar. 31, 2021 | 85 | 92,105 | 231,289 | (24,560) | 4,523 | 303,442 |
Balance at Dec. 31, 2020 | 85 | 92,847 | 221,393 | (25,227) | 5,759 | 294,857 |
Net income | 23,062 | |||||
Balance at Jun. 30, 2021 | 85 | 92,426 | 241,222 | (27,352) | 5,049 | 311,430 |
Balance at Mar. 31, 2021 | 85 | 92,105 | 231,289 | (24,560) | 4,523 | 303,442 |
Net income | 11,548 | 11,548 | ||||
Other comprehensive income (loss) | 526 | 526 | ||||
Purchase of treasury stock | (2,858) | (2,858) | ||||
Sale of treasury stock | 21 | 21 | ||||
Cash dividends | (1,615) | (1,615) | ||||
Amortization of stock-based compensation | 366 | 366 | ||||
Vesting of restricted stock awards | (45) | 45 | ||||
Balance at Jun. 30, 2021 | 85 | 92,426 | 241,222 | (27,352) | 5,049 | 311,430 |
Balance at Dec. 31, 2021 | 85 | 93,149 | 258,104 | (32,294) | 3,609 | 322,653 |
Net income | 10,183 | 10,183 | ||||
Other comprehensive income (loss) | (8,199) | (8,199) | ||||
Purchase of treasury stock | (5,018) | (5,018) | ||||
Sale of treasury stock | 37 | 37 | ||||
Cash dividends | (1,673) | (1,673) | ||||
Amortization of stock-based compensation | 320 | 320 | ||||
Vesting of restricted stock awards | (1,303) | 1,303 | ||||
Balance at Mar. 31, 2022 | 85 | 92,166 | 266,614 | (35,972) | (4,590) | 318,303 |
Balance at Dec. 31, 2021 | 85 | 93,149 | 258,104 | (32,294) | 3,609 | 322,653 |
Net income | 21,837 | |||||
Balance at Jun. 30, 2022 | 85 | 92,613 | 276,630 | (43,135) | (12,031) | 314,162 |
Balance at Mar. 31, 2022 | 85 | 92,166 | 266,614 | (35,972) | (4,590) | 318,303 |
Net income | 11,654 | 11,654 | ||||
Other comprehensive income (loss) | (7,441) | (7,441) | ||||
Purchase of treasury stock | (7,186) | (7,186) | ||||
Sale of treasury stock | 23 | 23 | ||||
Cash dividends | (1,638) | (1,638) | ||||
Amortization of stock-based compensation | 447 | 447 | ||||
Balance at Jun. 30, 2022 | $ 85 | $ 92,613 | $ 276,630 | $ (43,135) | $ (12,031) | $ 314,162 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Consolidated Statements of Stockholders' Equity | ||||
Cash dividends, per share | $ 0.22 | $ 0.22 | $ 0.21 | $ 0.21 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 21,837 | $ 23,062 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,700 | 1,850 |
Depreciation and amortization of premises and equipment | 798 | 995 |
Amortization of intangibles | 587 | 702 |
Net amortization of securities | 291 | 363 |
Amortization of stock-based compensation | 767 | 670 |
Accretion of purchase accounting valuations | (566) | (262) |
Net change in deferred loan fees and costs | (890) | 1,014 |
Change in fair value of MSR and other investments | (2,137) | 361 |
Gain on sale and disposal of premises and equipment | (43) | |
Gain on sale of OREO and valuation allowance | (146) | (206) |
Proceeds from sales of mortgage loans | 58,572 | 174,799 |
Originations of mortgage loans held for sale | (57,454) | (173,088) |
Gain on sales of mortgage loans | (1,074) | (4,998) |
Undistributed income of UFS joint venture | (1,268) | (1,029) |
Undistributed income of Ansay joint venture | (1,645) | (1,448) |
Net earnings on life insurance | (378) | (383) |
Decrease in other assets | 877 | 1,632 |
Decrease in other liabilities | (9,798) | (12,353) |
Net cash provided by operating activities | 10,073 | 11,638 |
Activity in securities available for sale and held to maturity: | ||
Sales | 8,990 | |
Maturities, prepayments, and calls | 7,891 | 20,545 |
Purchases | (137,299) | (18,892) |
Net increase in loans | (150,307) | (34,607) |
Dividends received from UFS | 1,239 | 1,256 |
Dividends received from Ansay | 909 | 912 |
Proceeds from sale of OREO | 320 | 1,877 |
Proceeds from sales of other investments | 13 | |
Net purchases of Federal Home Loan Bank ("FHLB") stock | (10,397) | |
Proceeds from sale of premises and equipment | 548 | |
Purchases of premises and equipment | (1,945) | (1,824) |
Net cash used in investing activities | (289,576) | (21,195) |
Cash flows from financing activities, net of effects of business combination: | ||
Net increase in deposits | 73,330 | 125,786 |
Net decrease in securities sold under repurchase agreements | (24,997) | (14,698) |
Proceeds from advances of notes payable | 3,021,000 | 5,000 |
Repayment of notes payable | (3,027,250) | (19,230) |
Dividends paid | (3,311) | (3,233) |
Proceeds from sales of common stock | 98 | 44 |
Repurchase of common stock | (12,242) | (3,260) |
Net cash provided by financing activities | 26,628 | 90,409 |
Net increase (decrease) in cash and cash equivalents | (252,875) | 80,852 |
Cash and cash equivalents at beginning of period | 296,860 | 170,219 |
Cash and cash equivalents at end of period | 43,985 | 251,071 |
Cash paid during the period for: | ||
Interest | 4,299 | 4,888 |
Income taxes | 6,335 | 8,260 |
Supplemental schedule of noncash activities: | ||
MSR resulting from sale of loans | 269 | 1,072 |
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity recognized in other comprehensive income, net of tax | (1) | (81) |
Change in unrealized gains and losses on investment securities available for sale, net of tax | $ (15,639) | $ (709) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION Bank First Corporation (the “Company”) provides a variety of financial services to individual and corporate customers through its wholly-owned subsidiary, Bank First, N.A. (the “Bank”). The Bank operates as a full-service financial institution with a primary market area including, but not limited to, the counties in which the Bank’s branches are located. The Bank has twenty-one locations located in Manitowoc, Outagamie, Brown, Winnebago, Sheboygan, Waupaca, Ozaukee, Monroe, and Jefferson counties in Wisconsin. The Company and Bank are subject to the regulations of certain federal agencies and undergo periodic examinations by those regulatory authorities. These interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures required by GAAP have been omitted or abbreviated. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“Annual Report”). The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for loan losses (“ALL”), valuation of loans in acquisition transactions, valuation of mortgae servicing rights, useful lives for depreciation and amortization, fair value of financial instruments, other-than-temporary impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the ALL, the determination of the valuation of mortgage servicing rights, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as previously disclosed in the Company’s Annual Report. Recently Issued Not Yet Effective Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Certain aspects of this ASU were updated in November 2018 by the issuance of ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. The main objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in the ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. During 2019 FASB issued ASU 2019-10 which delayed the effective date of ASU 2016-13 for smaller, publicly traded companies, until interim and annual periods beginning after December 15, 2022. This delay applies to the Company as it was classified as a “Smaller reporting company” as defined in Rule 12b-2 of the Exchange Act as of the date ASU 2019-10 was enacted. During the first half of 2019 the Company engaged a third-party partner to assist it in implementation of this standard. Over the last three years significant progress has been made working through the assumptions, drivers, documentation and other mechanics for the calculation of the Company’s ALL under ASU 2016-13. Throughout this process, Management has evaluated the impact of this update. Management has begun running a calculation of its allowance under ASU 2016-13 parallel to its current modeling to assess the functioning of the ASU 2016-13 model while also documenting the controls that will be in place around the process when the Company implements this standard. While the general expectation in the banking industry is that the implementation of this standard will result in higher required balances within the ALL, it is not anticipated to have a significant impact on the Company’s overall ALL balances. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2022 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE 2 – ACQUISITIONS On January 18, 2022, the Company entered into an Agreement and Plan of Merger with Denmark Bancshares, Inc. (“Denmark”), a Wisconsin Corporation, under which Denmark will merge with and into the Company and Denmark’s banking subsidiary, Denmark State Bank, will merge with and into the Bank. The transaction is expected to close during the third quarter of 2022. The Company has secured all required approvals by the shareholders of both institutions and regulatory agencies. Merger consideration will consist of up to 20% cash and no less than 80% common stock of the Company, and will total approximately $119 million, subject to the fair market value of the Company’s common stock on the date of closing. Based on results as of June 30, 2022, the combined company would have total assets of approximately $3.64 billion, loans of approximately $2.85 billion and deposits of approximately $3.21 billion. On July 25, 2022, the Company entered into an Agreement and Plan of Merger with Hometown Bancorp, Ltd. (“Hometown”), a Wisconsin Corporation, under which Hometown will merge with and into the Company and Hometown’s banking subsidiary, Hometown Bank, will merge with and into the Bank. The transaction is expected to close during the first quarter of 2023 and is subject to, among other items, approval by the shareholders of Hometown and regulatory agencies. Merger consideration will consist of up to 30% cash and no less than 70% common stock of the Company, and will total approximately $124 million, subject to the fair market value of the Company’s common stock on the date of closing. Based on results as of June 30, 2022, and inclusive of projected balances to be acquired from the proposed acquisition of Denmark, the combined company would have total assets of approximately $4.27 billion, loans of approximately $3.27 billion and deposits of approximately $3.75 billion. For more information concerning the Company’s acquisitions, see “Note 2 – Acquisition” in the Company’s audited consolidated financial statements included in the Company’s Annual Report. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 3 – EARNINGS PER SHARE The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. There were no anti-dilutive stock options for the six months ended June 30, 2022 or 2021. The following table presents the factors used in the earnings per share computations for the period indicated: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic Net income available to common shareholders $ 11,654 $ 11,548 $ 21,837 $ 23,062 Less: Earnings allocated to participating securities (93) (92) (172) (178) Net income allocated to common shareholders $ 11,561 $ 11,456 $ 21,665 $ 22,884 Weighted average common shares outstanding including participating securities 7,516,892 7,713,718 7,557,909 7,715,064 Less: Participating securities (1) (59,449) (60,401) (59,170) (59,326) Average shares 7,457,443 7,653,317 7,498,739 7,655,738 Basic earnings per common shares $ 1.55 $ 1.50 $ 2.89 $ 2.99 Diluted Net income available to common shareholders $ 11,654 $ 11,548 $ 21,837 $ 23,062 Weighted average common shares outstanding for basic earnings per common share 7,457,443 7,653,317 7,498,739 7,655,738 Add: Dilutive effects of stock based compensation awards 15,118 15,423 19,027 19,254 Average shares and dilutive potential common shares 7,472,561 7,668,740 7,517,766 7,674,992 Diluted earnings per common share $ 1.55 $ 1.50 $ 2.89 $ 2.99 (1) Participating securities are restricted stock awards whereby the stock certificates have been issued, are included in outstanding shares, receive dividends and can be voted, but have not vested. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
SECURITIES | |
SECURITIES | NOTE 4 – SECURITIES The following is a summary of available for sale securities: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2022 U.S. Treasury securities $ 149,589 $ — $ (6,681) $ 142,908 Obligations of U.S. Government sponsored agencies 25,151 — (2,494) 22,657 Obligations of states and political subdivisions 80,813 246 (6,313) 74,746 Mortgage-backed securities 31,288 3 (758) 30,533 Corporate notes 20,555 387 (843) 20,099 Certificates of deposit 1,512 — (29) 1,483 Total available for sale securities $ 308,908 $ 636 $ (17,118) $ 292,426 December 31, 2021 U.S. Treasury securities $ 49,574 $ 121 $ (193) $ 49,502 Obligations of U.S. Government sponsored agencies 26,722 165 (341) 26,546 Obligations of states and political subdivisions 83,019 3,786 (67) 86,738 Mortgage-backed securities 26,143 1,117 (1) 27,259 Corporate notes 20,760 436 (94) 21,102 Certificates of deposit 1,529 13 — 1,542 Total available for sale securities $ 207,747 $ 5,638 $ (696) $ 212,689 The following is a summary of held to maturity securities: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2022 U.S. Treasury securities $ 28,671 $ — $ (564) $ 28,107 Obligations of states and political subdivisions 5,196 1 — 5,197 Total held to maturity securities $ 33,867 $ 1 $ (564) $ 33,304 December 31, 2021 Obligations of states and political subdivisions $ 5,911 $ 11 $ — $ 5,922 The following table shows the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses June 30, 2022 - Available for Sale U.S. Treasury securities $ 142,908 $ (6,681) $ — $ — $ 142,908 $ (6,681) Obligations of U.S. Government sponsored agencies 18,739 (1,692) 3,918 (802) 22,657 (2,494) Obligations of states and political subdivisions 53,679 (6,313) — — 53,679 (6,313) Mortgage-backed securities 30,068 (758) — — 30,068 (758) Corporate notes 13,399 (843) — — 13,399 (843) Certificate of Deposits 1,483 (29) — — 1,483 (29) Totals $ 260,276 $ (16,316) $ 3,918 $ (802) $ 264,194 $ (17,118) June 30, 2022 - Held to Maturity U.S. Treasury securities $ 28,107 $ (564) $ — $ — $ 28,107 $ (564) December 31, 2021 - Available for Sale U.S. Treasury securities $ 34,746 $ (193) $ — $ — $ 34,746 $ (193) Obligations of U.S. Government sponsored agencies 13,185 (86) 4,558 (255) 17,743 (341) Obligations of states and political subdivisions 8,624 (67) — — 8,624 (67) Mortgage-backed securities 254 (1) — — 254 (1) Corporate notes 8,973 (94) — — 8,973 (94) Totals $ 65,782 $ (441) $ 4,558 $ (255) $ 70,340 $ (696) As of June 30, 2022, the Company does not consider its securities with unrealized losses to be other-than-temporarily impaired, as the unrealized losses in each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. The Company has the intent and ability to hold its securities to maturity or until par is recovered. There were no other-than-temporary impairments charged to earnings during the six months ended June 30, 2022 or 2021. The following is a summary of amortized cost and estimated fair value of securities by contractual maturity as of June 30, 2022. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties. Available for Sale Held to Maturity Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 100,978 $ 99,908 $ 1,044 $ 1,044 Due after one year through 5 years 14,961 14,895 31,952 31,389 Due after 5 years through ten years 88,548 81,416 871 871 Due after 10 years 73,133 65,674 — — Subtotal 277,620 261,893 33,867 33,304 Mortgage-backed securities 31,288 30,533 — — Total $ 308,908 $ 292,426 $ 33,867 $ 33,304 There were no realized gains or losses on sales of securities available for sale or held to maturity for the six months ended June 30, 2022 or 2021. |
LOANS, ALLOWANCE FOR LOAN LOSSE
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | 6 Months Ended |
Jun. 30, 2022 | |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | NOTE 5 – LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY The following table presents total loans by portfolio segment and class of loan as of June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 Commercial/industrial $ 394,999 $ 367,284 Commercial real estate - owner occupied 589,018 574,960 Commercial real estate - non-owner occupied 575,106 537,077 Construction and development 158,742 132,675 Residential 1‑4 family 616,609 571,749 Consumer 35,365 31,992 Other 18,601 21,489 Subtotals 2,388,440 2,237,226 ALL (22,699) (20,315) Loans, net of ALL 2,365,741 2,216,911 Deferred loan fees and costs (822) (1,712) Loans, net $ 2,364,919 $ 2,215,199 A summary of the activity in the ALL by loan type as of June 30, 2022 and 2021 is summarized as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total ALL - January 1, 2022 $ 3,699 $ 5,633 $ 5,151 $ 984 $ 4,445 $ 224 $ 179 $ 20,315 Charge-offs — — — — (39) — (18) (57) Recoveries 454 74 3 152 5 — 53 741 Provision 182 706 261 46 555 24 (74) 1,700 ALL - June 30, 2022 4,335 6,413 5,415 1,182 4,966 248 140 22,699 ALL ending balance individually evaluated for impairment 150 — 794 — — — — 944 ALL ending balance collectively evaluated for impairment $ 4,185 $ 6,413 $ 4,621 $ 1,182 $ 4,966 $ 248 $ 140 $ 21,755 Loans outstanding - June 30, 2022 $ 394,999 $ 589,018 $ 575,106 $ 158,742 $ 616,609 $ 35,365 $ 18,601 $ 2,388,440 Loans ending balance individually evaluated for impairment 694 2,578 1,417 — 218 — — 4,907 Loans ending balance collectively evaluated for impairment $ 394,305 $ 586,440 $ 573,689 $ 158,742 $ 616,391 $ 35,365 $ 18,601 $ 2,383,533 Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total ALL - January 1, 2021 $ 2,049 $ 6,108 $ 3,904 $ 1,027 $ 3,960 $ 201 $ 409 $ 17,658 Charge-offs — (24) — — — — (13) (37) Recoveries 27 — 5 33 8 1 2 76 Provision 734 609 213 4 370 33 (113) 1,850 ALL - June 30, 2021 2,810 6,693 4,122 1,064 4,338 235 285 19,547 ALL ending balance individually evaluated for impairment 2 — 452 — — — — 454 ALL ending balance collectively evaluated for impairment $ 2,808 $ 6,693 $ 3,670 $ 1,064 $ 4,338 $ 235 $ 285 $ 19,093 Loans outstanding - June 30, 2021 $ 408,341 $ 559,886 $ 482,850 $ 140,694 $ 572,233 $ 33,399 $ 32,402 $ 2,229,805 Loans ending balance individually evaluated for impairment 1,172 1,077 6,819 — — — — 9,068 Loans ending balance collectively evaluated for impairment $ 407,169 $ 558,809 $ 476,031 $ 140,694 $ 572,233 $ 33,399 $ 32,402 $ 2,220,737 The Company’s past due loans as of June 30, 2022 is summarized as follows: 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 21 $ 737 $ 221 $ 979 Commercial real estate - owner occupied 1,308 — 3,667 4,975 Commercial real estate - non-owner occupied 64 — — 64 Construction and development — — 18 18 Residential 1‑4 family 567 420 418 1,405 Consumer 10 5 24 39 Other — — — — $ 1,970 $ 1,162 $ 4,348 $ 7,480 The Company’s past due loans as of December 31, 2021 is summarized as follows: 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 12 $ 738 $ 247 $ 997 Commercial real estate - owner occupied — — 5,884 5,884 Commercial real estate - non-owner occupied 65 — 650 715 Construction and development — — 19 19 Residential 1‑4 family 2,002 245 439 2,686 Consumer 2 16 2 20 Other — — — — $ 2,081 $ 999 $ 7,241 $ 10,321 The Company utilizes a numerical risk rating system for commercial relationships. All other types of relationships (ex: residential, consumer, other) are assigned a “Pass” rating, unless they have fallen 90 days past due or more, at which time they receive a rating of 7. The Company uses split ratings for government guaranties on loans. The portion of a loan that is supported by a government guaranty is included with other Pass credits. The determination of a commercial loan risk rating begins with completion of a matrix, which assigns scores based on the strength of the borrower’s debt service coverage, collateral coverage, balance sheet leverage, industry outlook, and customer concentration. A weighted average is taken of these individual scores to arrive at the overall rating. This rating is subject to adjustment by the loan officer based on facts and circumstances pertaining to the borrower. Risk ratings are subject to independent review. Commercial borrowers with ratings between 1 and 5 are considered Pass credits, with 1 being most acceptable and 5 being just above the minimum level of acceptance. Commercial borrowers rated 6 have potential weaknesses which may jeopardize repayment ability. Borrowers rated 7 have a well-defined weakness or weaknesses such as the inability to demonstrate significant cash flow for debt service based on analysis of the company’s financial information. These loans remain on accrual status provided full collection of principal and interest is reasonably expected. Otherwise they are deemed impaired and placed on nonaccrual status. Borrowers rated 8 are the same as 7 rated credits with one exception: collection or liquidation in full is not probable. The breakdown of loans by risk rating as of June 30, 2022 is as follows: Pass (1-5) 6 7 8 Total Commercial/industrial $ 377,444 $ 866 $ 16,689 $ — $ 394,999 Commercial real estate - owner occupied 552,478 6,906 29,634 — 589,018 Commercial real estate - non-owner occupied 570,824 — 4,282 — 575,106 Construction and development 157,557 — 1,185 — 158,742 Residential 1‑4 family 614,212 — 2,397 — 616,609 Consumer 35,363 — 2 — 35,365 Other 18,601 — — — 18,601 $ 2,326,479 $ 7,772 $ 54,189 $ — $ 2,388,440 The breakdown of loans by risk rating as of December 31, 2021 is as follows: Pass (1-5) 6 7 8 Total Commercial/industrial $ 355,469 $ — $ 11,815 $ — $ 367,284 Commercial real estate - owner occupied 551,801 — 23,159 — 574,960 Commercial real estate - non-owner occupied 532,077 — 5,000 — 537,077 Construction and development 131,429 — 1,246 — 132,675 Residential 1‑4 family 570,022 83 1,644 — 571,749 Consumer 31,988 — 4 — 31,992 Other 21,489 — — — 21,489 $ 2,194,275 $ 83 $ 42,868 $ — $ 2,237,226 The ALL represents management’s estimate of probable and inherent credit losses in the loan portfolio. Estimating the amount of the ALL requires the exercise of significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogenous loans based on historical loss experience, and consideration of other qualitative factors such as current economic trends and conditions, all of which may be susceptible to significant change. The loan portfolio also represents the largest asset on the consolidated balance sheets. Loan losses are charged off against the ALL, while recoveries of amounts previously charged off are credited to the ALL. A provision for loan losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. The ALL consists of specific reserves for certain individually evaluated impaired loans and general reserves for collectively evaluated non-impaired loans. Specific reserves reflect estimated losses on impaired loans from management’s analyses developed through specific credit allocations. The specific reserves are based on regular analyses of impaired, non-homogenous loans greater than $250,000. These analyses involve a high degree of judgment in estimating the amount of loss associated with specific loans, including estimating the amount and timing of future cash flows and collateral values. The general reserve is based in part on the Bank’s historical loss experience which is updated quarterly. The general reserve portion of the ALL also includes consideration of certain qualitative factors such as 1) changes in lending policies and/or underwriting practices, 2) national and local economic conditions, 3) changes in portfolio volume and nature, 4) experience, ability and depth of lending management and other relevant staff, 5) levels of and trends in past-due and nonaccrual loans and quality, 6) changes in loan review and oversight, 7) impact and effects of concentrations and 8) other issues deemed relevant. There are many factors affecting ALL; some are quantitative while others require qualitative judgment. The process for determining the ALL (which management believes adequately considers potential factors which might possibly result in credit losses) includes subjective elements and, therefore, may be susceptible to significant change. To the extent actual outcomes differ from management estimates, additional provisions for loan losses could be required that could adversely affect the Company’s earnings or financial position in future periods. Allocations of the ALL may be made for specific loans but the entire ALL is available for any loan that, in management’s judgment, should be charged off or for which an actual loss is realized. As an integral part of their examination process, various regulatory agencies review the ALL as well. Such agencies may require that changes in the ALL be recognized when such regulators’ credit evaluations differ from those of management based on information available to the regulators at the time of their examinations. A summary of impaired loans individually evaluated as of June 30, 2022 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total With an allowance recorded: Recorded investment $ 352 $ — $ 1,305 $ — $ — $ — $ — $ 1,657 Unpaid principal balance 352 — 1,305 — — — — 1,657 Related allowance 150 — 794 — — — — 944 With no related allowance recorded: Recorded investment $ 342 $ 2,578 $ 112 $ — $ 218 $ — $ — $ 3,250 Unpaid principal balance 342 2,578 112 — 218 — — 3,250 Related allowance — — — — — — — — Total: Recorded investment $ 694 $ 2,578 $ 1,417 $ — $ 218 $ — $ — $ 4,907 Unpaid principal balance 694 2,578 1,417 — 218 — — 4,907 Related allowance 150 — 794 — — — — 944 Average recorded investment $ 567 $ 3,772 $ 1,468 $ — $ 245 $ — $ — $ 6,052 A summary of impaired loans individually evaluated as of December 31, 2021 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non - Owner and Residential Industrial Occupied Occupied Development 1 ‑ 4 Family Consumer Other Total With an allowance recorded: Recorded investment $ 357 $ — $ 1,406 $ — $ — $ — $ — $ 1,763 Unpaid principal balance 357 — 1,406 — — — — 1,763 Related allowance 70 — 894 — — — — 964 With no related allowance recorded: Recorded investment $ 82 $ 4,966 $ 113 $ — $ 273 $ — $ — $ 5,434 Unpaid principal balance 82 4,966 113 — 273 — — 5,434 Related allowance — — — — — — — — Total: Recorded investment $ 439 $ 4,966 $ 1,519 $ — $ 273 $ — $ — $ 7,197 Unpaid principal balance 439 4,966 1,519 — 273 — — 7,197 Related allowance 70 — 894 — — — — 964 Average recorded investment $ 459 $ 3,069 $ 5,098 $ — $ 267 $ — $ — $ 8,893 Interest recognized while these loans were impaired is considered immaterial to the consolidated financial statements for the six months ended June 30, 2022 and 2021. The following table presents loans acquired with deteriorated credit quality as of June 30, 2022 and December 31, 2021. No loans in this table had a related allowance at either date, and therefore, the below disclosures were not expanded to include loans with and without a related allowance. June 30, 2022 December 31, 2021 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance Commercial & Industrial $ 545 $ 626 $ 596 $ 685 Commercial real estate - owner occupied 1,846 2,065 2,664 3,146 Commercial real estate - non-owner occupied 365 399 1,018 1,150 Construction and development — — — — Residential 1‑4 family 839 1,081 863 1,124 Consumer — — — — Other — — — — $ 3,595 $ 4,171 $ 5,141 $ 6,105 Due to the nature of these loan relationships, prepayment expectations have not been considered in the determination of future cash flows. Management regularly monitors these loan relationships, and if information becomes available that indicates expected cash flows will differ from initial expectations, it may necessitate reclassification between accretable and non-accretable components of the original discount calculation. The following table represents the change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality for the six months ended June 30, 2022, and year ended December 31, 2021: June 30, 2022 December 31, 2021 Accretable Non-accretable Accretable Non-accretable discount discount discount discount Balance at beginning of period $ 813 $ 149 $ 1,250 $ 176 Acquired balance, net — — — — Reclassifications between accretable and non-accretable 13 (13) 27 (27) Accretion to loan interest income (250) — (464) — Balance at end of period $ 576 $ 136 $ 813 $ 149 A troubled debt restructuring (“TDR”) includes a loan modification where a borrower is experiencing financial difficulty and we grant a concession to that borrower that we would not otherwise consider except for the borrower’s financial difficulties. These concessions may include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt may be bifurcated with separate terms for each tranche of the restructured debt. Restructuring a loan in lieu of aggressively enforcing the collection of the loan may benefit the Company by increasing the ultimate probability of collection. A TDR may be either on accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability. If a TDR is placed on nonaccrual status, which could occur based on the same criteria as non-TDR loans, it remains there until a sufficient period of performance under the restructured terms has occurred at which it returned to accrual status, generally 6 months. As of June 30, 2022 and December 31, 2021 the Company had negligible specific reserves for TDRs. As a result of the COVID-19 pandemic, the Bank experienced an increase in customer requests for loan modifications and payment deferrals. The Coronavirus Aid, Relief, and Economic Security (CARES) act, signed into law on March 27, 2020, allowed financial institutions the option to exempt loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a TDR from consideration for TDR treatment. Modifications in the scope of the exemption include forbearance agreements, interest-rate modifications, repayment plan changes and any other similar arrangements that would delay payments of principal or interest. This relief is allowable on modifications on loans which were not more than 30 days past due as of December 31, 2019, and that occur after March 1, 2020, and before the earlier of 60 days after the date on which the national emergency related to the COVID-19 outbreak is terminated. The Bank had no new TDRs during the six months ended June 30, 2022 or 2021. |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2022 | |
MORTGAGE SERVICING RIGHTS | |
MORTGAGE SERVICING RIGHTS | NOTE 6 – MORTGAGE SERVICING RIGHTS Loans serviced for others are not included in the accompanying consolidated balance sheets. MSRs are recognized as separate assets when loans sold in the secondary market are sold with servicing retained. The Company utilizes a third-party consulting firm to determine an accurate assessment of the MSRs fair value. The third-party firm collects relevant data points from numerous sources. Some of these data points relate directly to the pricing level or relative value of the mortgage servicing while other data points relate to the assumptions used to derive fair value. In addition, the valuation evaluates specific collateral types, and current and historical performance of the collateral in question. The valuation process focuses on the non-distressed secondary servicing market, common industry practices and current regulatory standards. The primary determinants of the fair value of MSRs are servicing fee percentage, ancillary income, expected loan life or prepayment speeds, discount rates, costs to service, delinquency rates, foreclosure losses and recourse obligations. The valuation data also contains interest rate shock analyses for monitoring fair value changes in differing interest rate environments. Following is an analysis of activity in the MSR asset: Six Months Ended Year Ended June 30, 2022 December 31, 2021 Fair value at beginning of period $ 5,016 $ 3,726 Servicing asset additions 269 1,862 Loan payments and payoffs (192) (1,319) Changes in valuation inputs and assumptions used in the valuation model 1,884 747 Amount recognized through earnings 1,961 1,290 Fair value at end of period $ 6,977 $ 5,016 Unpaid principal balance of loans serviced for others $ 716,717 $ 705,462 Mortgage servicing rights as a percent of loans serviced for others 0.96 0.71 The primary economic assumptions utilized by the Company in measuring the value of MSRs were constant prepayment speeds of 8.2 months and 13.8 and discount rates of 10.3% as of June 30, 2022 and December 31, 2021. |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2022 | |
NOTES PAYABLE | |
NOTES PAYABLE | NOTE 7 – NOTES PAYABLE From time to time the Company utilizes FHLB advances to fund liquidity. At June 30, 2022 and December, 31, 2021, the Company had outstanding balances borrowed from the FHLB of $1.7 million and $8.0 million, respectively. The advances, rate, and maturities of FHLB advances were as follows: June 30, December 31, Maturity Rate 2022 2021 Fixed rate, fixed term 01/24/2022 2.51 % $ — $ 250 Fixed rate, fixed term 05/02/2022 2.98 % — 500 Fixed rate, fixed term 05/16/2022 0.00 % — 5,000 Fixed rate, fixed term 06/08/2022 2.92 % — 500 Fixed rate, fixed term 11/21/2022 3.02 % 600 600 Fixed rate, fixed term 11/21/2023 3.06 % 600 600 Fixed rate, fixed term 04/22/2030 0.00 % 508 508 1,708 7,958 Adjustment due to purchase accounting 27 53 $ 1,735 $ 8,011 Future maturities of borrowings were as follows: June 30, December 31, 2022 2021 1 year or less $ 600 $ 6,850 1 to 2 years 600 600 2 to 3 years — — 3 to 4 years — — 4 to 5 years — — Over 5 years 508 508 $ 1,708 $ 7,958 The Company maintains a $7.5 million line of credit with a commercial bank, which was entered into on May 15, 2022. There were no outstanding balances on this note at June 30, 2022 or December 31, 2021. Any future borrowings will require monthly payments of interest at a variable rate, and will be due in full on May 15, 2024. |
SUBORDINATED NOTES
SUBORDINATED NOTES | 6 Months Ended |
Jun. 30, 2022 | |
SUBORDINATED NOTES | |
SUBORDINATED NOTES | NOTE 8 – SUBORDINATED NOTES During September 2017, the Company entered into subordinated note agreements with three separate commercial banks. The Company had outstanding balances of $11.5 million under these agreements as of June 30, 2022 and December 31, 2021. These notes were all issued with 10-year During July 2020, the Company entered into subordinated note agreements with two separate commercial banks. The Company had outstanding balances of $6.0 million under these agreements as of June 30, 2022 and December 31, 2021. These notes were issued with 10-year |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2022 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | NOTE 9 – REGULATORY MATTERS Banks and certain bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The Economic Growth, Regulatory Relief, and Consumer Protection Act, signed into law in May 2018 raised the threshold for those bank holding companies subject to the Federal Reserve’s Small Bank Holding Company Policy Statement to $3 billion. As a result, as of the effective date of that change in 2018, the Company was no longer required to comply with the risk-based capital rules applicable to the Bank. The Federal Reserve may, however, require smaller bank holding companies to maintain certain minimum capital levels, depending upon general economic conditions and a bank holding company’s particular condition, risk profile and growth plans. Under regulatory guidance for non-advanced approaches institutions, the Bank is required to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets, including an additional conservation buffer determined by banking regulators. As of June 30, 2022 and December 31, 2021, this buffer was 2.5%. As of June 30, 2022 and December 31, 2021, the Bank met all capital adequacy requirements to which they are subject. Actual and required capital amounts and ratios are presented below at period-end: To Be Well Minimum Capital Capitalized Under For Capital Adequacy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2022 Total capital (to risk-weighted assets): Company $ 307,585 11.94 % NA NA NA NA NA NA Bank $ 301,206 11.70 % $ 206,018 8.00 % $ 270,398 10.50 % $ 257,522 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 267,387 10.38 % NA NA NA NA NA NA Bank $ 278,508 10.81 % $ 154,513 6.00 % $ 218,894 8.50 % $ 206,018 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 267,387 10.38 % NA NA NA NA NA NA Bank $ 278,508 10.81 % $ 115,885 4.50 % $ 180,265 7.00 % $ 167,389 6.50 % Tier 1 capital (to average assets): Company $ 267,387 8.60 % NA NA NA NA NA NA Bank $ 278,508 8.96 % $ 124,369 4.00 % $ 124,369 4.00 % $ 155,461 5.00 % December 31, 2021 Total capital (to risk-weighted assets): Company $ 297,467 12.44 % NA NA NA NA NA NA Bank $ 291,994 12.21 % $ 191,339 8.00 % $ 251,133 10.50 % $ 239,174 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 259,652 10.86 % NA NA NA NA NA NA Bank $ 271,679 11.36 % $ 143,505 6.00 % $ 203,298 8.50 % $ 191,339 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 259,652 10.86 % NA NA NA NA NA NA Bank $ 271,679 11.36 % $ 107,628 4.50 % $ 167,422 7.00 % $ 155,463 6.50 % Tier 1 capital (to average assets): Company $ 259,652 9.29 % NA NA NA NA NA NA Bank $ 271,679 9.72 % $ 111,825 4.00 % $ 111,825 4.00 % $ 139,781 5.00 % |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS AND CONTINGENCIES The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate-lock commitments). Rate-lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in derivative assets or liabilities, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on fees currently charged to enter into similar agreements and for fixed rate commitments also considers the difference between current levels of interest rates and committed rates. The notional amount of rate-lock commitments at June 30, 2022 and December 31, 2021 was approximately $7.8 million and $21.9 million, respectively. 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 instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual or notional amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. Since some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements. The following commitments were outstanding: Notional Amount June 30, 2022 December 31, 2021 Commitments to extend credit: Fixed $ 80,051 $ 90,036 Variable 404,533 412,095 Credit card arrangements 15,618 10,916 Letters of credit 10,726 9,062 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 11 – FAIR VALUE MEASUREMENTS Accounting guidance establishes a fair value hierarchy to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Level 1: Quoted prices (unadjusted) or identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Information regarding the fair value of assets measured at fair value on a recurring basis is as follows: Instruments Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) June 30, 2022 Assets Securities available for sale U.S. Treasury securities $ 142,908 $ — $ 142,908 $ — Obligations of U.S. Government sponsored agencies 22,657 — 22,657 — Obligations of states and political subdivisions 74,746 — 74,746 — Mortgage-backed securities 30,533 — 30,533 — Corporate notes 20,099 — 20,099 — Certificates of deposit 1,483 — 1,483 — Mortgage servicing rights 6,977 — 6,977 — December 31, 2021 Assets Securities available for sale U.S. Treasury securities $ 49,502 $ — $ 49,502 $ — Obligations of U.S. Government sponsored agencies 26,546 — 26,546 — Obligations of states and political subdivisions 86,738 — 86,738 — Mortgage-backed securities 27,259 — 27,259 — Corporate notes 21,102 — 21,102 — Certificates of deposit 1,542 — 1,542 — Mortgage servicing rights 5,016 — 5,016 — There were no assets measured on a recurring basis using significant unobservable inputs (Level 3) during these periods. Information regarding the fair value of assets measured at fair value on a non-recurring basis is as follows: Quoted Prices In Active Significant Assets Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) June 30, 2022 Impaired Loans, net of impairment reserve $ 3,963 $ — $ — $ 3,963 December 31, 2021 OREO $ 150 $ — $ — $ 150 Impaired Loans, net of impairment reserve 6,233 — — 6,233 $ 6,383 $ — $ — $ 6,383 The following is a description of the valuation methodologies used by the Company for the items noted in the table above, including the general classification of such instruments in the fair value hierarchy. For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note. For OREO, the fair value is based upon the estimated fair value of the underlying collateral adjusted for the expected costs to sell. The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets: Weighted Unobservable Range of Average Valuation Technique Inputs Discounts Discount As of June 30, 2022 Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 61 % 19.2 % As of December 31, 2021 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 18% - 97 % 18.0 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100 % 7.4 % The following methods and assumptions were used by the Company to estimate fair value of financial instruments. Cash and cash equivalents Securities Loans held for sale Loans Other investments Mortgage servicing rights Cash value of life insurance Deposits Securities sold under repurchase agreements Notes payable and subordinated notes Off-balance-sheet instruments The carrying value and estimated fair value of financial instruments at June 30, 2022 and December 31, 2021 follows: Carrying June 30, 2022 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 43,985 $ 43,985 $ — $ — $ 43,985 Securities held to maturity 33,867 — 33,304 — 33,304 Securities available for sale 292,426 — 292,426 — 292,426 Loans held for sale 742 — — 742 742 Loans, net 2,364,919 — — 2,310,193 2,310,193 Other investments, at cost 19,564 — — 19,564 19,564 Mortgage servicing rights 6,977 — 6,977 — 6,977 Cash surrender value of life insurance 32,275 32,275 — — 32,275 Financial liabilities: Deposits $ 2,601,477 $ — $ — $ 2,353,298 $ 2,353,298 Securities sold under repurchase agreements 16,125 — 16,125 — 16,125 Notes payable 1,735 — 1,735 — 1,735 Subordinated notes 17,500 — 17,500 — 17,500 Carrying December 31, 2021 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 296,860 $ 296,860 $ — $ — $ 296,860 Securities held to maturity 5,911 — 5,922 — 5,922 Securities available for sale 212,689 — 212,689 — 212,689 Loans held for sale 786 — — 786 786 Loans, net 2,215,199 — — 2,210,593 2,210,593 Other investments, at cost 9,004 — — 9,004 9,004 Mortgage servicing rights 5,016 — 5,016 — 5,016 Cash surrender value of life insurance 31,897 31,897 — — 31,897 Financial liabilities: Deposits $ 2,528,440 $ — $ — $ 2,457,287 $ 2,457,287 Securities sold under repurchase agreements 41,122 — 41,122 — 41,122 Notes payable 8,011 — 8,011 — 8,011 Subordinated notes 17,500 — 17,500 — 17,500 The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts nor is it recorded as an intangible asset on the consolidated balance sheet. Significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 12 – STOCK BASED COMPENSATION The Company has made restricted share grants pursuant to the Bank First Corporation 2011 Equity Plan and the Bank First Corporation 2020 Equity Plan, which replaced the 2011 Plan. The purpose of the Plan is to provide financial incentives for selected employees and for the non-employee Directors of the Company, thereby promoting the long-term growth and financial success of the Company. The number of shares of Company stock that may be issued pursuant to awards under the 2020 Plan shall not exceed, in the aggregate, 700,000. As of June 30, 2022, 50,867 shares of Company stock have been awarded under the 2020 Plan. Compensation expense for restricted stock is based on the fair value of the awards of Bank First Corporation common stock at the time of grant. The value of restricted stock grants that are expected to vest is amortized into expense over the vesting periods. For the six months ended June 30, 2022 and 2021, compensation expense of $0.8 million and $0.7 million, respectively, was recognized related to restricted stock awards. As of June 30, 2022, there was $3.0 million of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. That cost is expected to be recognized over a weighted average period of 2.00 years. The aggregate grant date fair value of restricted stock awards that vested during the six months ended June 30, 2022, was approximately $1.3 million. For the year ended For the year ended June 30, 2022 June 30, 2021 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of year 58,611 $ 61.44 57,175 $ 53.08 Granted 25,451 69.73 25,416 70.67 Vested (20,785) 60.52 (21,755) 50.15 Forfeited or cancelled (4,005) 60.50 (1,105) 62.23 Outstanding at end of year 59,272 $ 65.85 59,731 $ 61.46 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
LEASES | |
LEASES | NOTE 13 – LEASES Accounting standards require lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements, establishing a right-of-use (“ROU”) model that requires a lessee to recognize a ROU lease asset and liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Lessee Leases The Company’s lessee leases are operating leases, and consist of leased real estate for branches. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Rent escalations are generally specified by a payment schedule, or are subject to a defined formula. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages. For operating leases, the lease liability and ROU asset (before adjustments) are recorded at the present value of future lease payments. Accounting standards require the use of the lease interest rate; however, this rate is typically not known. As an alternative, the use of an entity’s fully secured incremental borrowing rate is permitted. The Company is electing to utilize the Wall Street Journal Prime Rate on the date of lease commencement. Six-month period ended June 30, 2022 June 30, 2021 Amortization of ROU Assets - Operating Leases $ — $ 7 Interest on Lease Liabilities - Operating Leases 43 44 Operating Lease Cost (Cost resulting from lease payments) 43 51 Weighted Average Lease Term (Years) - Operating Leases 31.5 32.42 Weighted Average Discount Rate - Operating Leases 5.50 % 5.50 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of June 30, 2022 is as follows: June 30, 2022 Operating lease payments due: Within one year $ 86 After one but within two years 86 After two but within three years 86 After three but within four years 89 After four years but within five years 94 After five years 3,184 Total undiscounted cash flows 3,625 Discount on cash flows (2,044) Total operating lease liabilities $ 1,581 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER SHARE | |
Schedule of Earnings Per Share | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic Net income available to common shareholders $ 11,654 $ 11,548 $ 21,837 $ 23,062 Less: Earnings allocated to participating securities (93) (92) (172) (178) Net income allocated to common shareholders $ 11,561 $ 11,456 $ 21,665 $ 22,884 Weighted average common shares outstanding including participating securities 7,516,892 7,713,718 7,557,909 7,715,064 Less: Participating securities (1) (59,449) (60,401) (59,170) (59,326) Average shares 7,457,443 7,653,317 7,498,739 7,655,738 Basic earnings per common shares $ 1.55 $ 1.50 $ 2.89 $ 2.99 Diluted Net income available to common shareholders $ 11,654 $ 11,548 $ 21,837 $ 23,062 Weighted average common shares outstanding for basic earnings per common share 7,457,443 7,653,317 7,498,739 7,655,738 Add: Dilutive effects of stock based compensation awards 15,118 15,423 19,027 19,254 Average shares and dilutive potential common shares 7,472,561 7,668,740 7,517,766 7,674,992 Diluted earnings per common share $ 1.55 $ 1.50 $ 2.89 $ 2.99 (1) Participating securities are restricted stock awards whereby the stock certificates have been issued, are included in outstanding shares, receive dividends and can be voted, but have not vested. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SECURITIES | |
Schedule of securities available for sale | The following is a summary of available for sale securities: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2022 U.S. Treasury securities $ 149,589 $ — $ (6,681) $ 142,908 Obligations of U.S. Government sponsored agencies 25,151 — (2,494) 22,657 Obligations of states and political subdivisions 80,813 246 (6,313) 74,746 Mortgage-backed securities 31,288 3 (758) 30,533 Corporate notes 20,555 387 (843) 20,099 Certificates of deposit 1,512 — (29) 1,483 Total available for sale securities $ 308,908 $ 636 $ (17,118) $ 292,426 December 31, 2021 U.S. Treasury securities $ 49,574 $ 121 $ (193) $ 49,502 Obligations of U.S. Government sponsored agencies 26,722 165 (341) 26,546 Obligations of states and political subdivisions 83,019 3,786 (67) 86,738 Mortgage-backed securities 26,143 1,117 (1) 27,259 Corporate notes 20,760 436 (94) 21,102 Certificates of deposit 1,529 13 — 1,542 Total available for sale securities $ 207,747 $ 5,638 $ (696) $ 212,689 |
Schedule of securities held to maturity | The following is a summary of held to maturity securities: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2022 U.S. Treasury securities $ 28,671 $ — $ (564) $ 28,107 Obligations of states and political subdivisions 5,196 1 — 5,197 Total held to maturity securities $ 33,867 $ 1 $ (564) $ 33,304 December 31, 2021 Obligations of states and political subdivisions $ 5,911 $ 11 $ — $ 5,922 |
Schedule of fair value and gross unrealized losses of securities | The following table shows the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses June 30, 2022 - Available for Sale U.S. Treasury securities $ 142,908 $ (6,681) $ — $ — $ 142,908 $ (6,681) Obligations of U.S. Government sponsored agencies 18,739 (1,692) 3,918 (802) 22,657 (2,494) Obligations of states and political subdivisions 53,679 (6,313) — — 53,679 (6,313) Mortgage-backed securities 30,068 (758) — — 30,068 (758) Corporate notes 13,399 (843) — — 13,399 (843) Certificate of Deposits 1,483 (29) — — 1,483 (29) Totals $ 260,276 $ (16,316) $ 3,918 $ (802) $ 264,194 $ (17,118) June 30, 2022 - Held to Maturity U.S. Treasury securities $ 28,107 $ (564) $ — $ — $ 28,107 $ (564) December 31, 2021 - Available for Sale U.S. Treasury securities $ 34,746 $ (193) $ — $ — $ 34,746 $ (193) Obligations of U.S. Government sponsored agencies 13,185 (86) 4,558 (255) 17,743 (341) Obligations of states and political subdivisions 8,624 (67) — — 8,624 (67) Mortgage-backed securities 254 (1) — — 254 (1) Corporate notes 8,973 (94) — — 8,973 (94) Totals $ 65,782 $ (441) $ 4,558 $ (255) $ 70,340 $ (696) |
Schedule of amortized cost and estimated fair value of securities | The following is a summary of amortized cost and estimated fair value of securities by contractual maturity as of June 30, 2022. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties. Available for Sale Held to Maturity Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 100,978 $ 99,908 $ 1,044 $ 1,044 Due after one year through 5 years 14,961 14,895 31,952 31,389 Due after 5 years through ten years 88,548 81,416 871 871 Due after 10 years 73,133 65,674 — — Subtotal 277,620 261,893 33,867 33,304 Mortgage-backed securities 31,288 30,533 — — Total $ 308,908 $ 292,426 $ 33,867 $ 33,304 |
LOANS, ALLOWANCE FOR LOAN LOS_2
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |
Schedule of total loans by portfolio segment and class of loan | The following table presents total loans by portfolio segment and class of loan as of June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 Commercial/industrial $ 394,999 $ 367,284 Commercial real estate - owner occupied 589,018 574,960 Commercial real estate - non-owner occupied 575,106 537,077 Construction and development 158,742 132,675 Residential 1‑4 family 616,609 571,749 Consumer 35,365 31,992 Other 18,601 21,489 Subtotals 2,388,440 2,237,226 ALL (22,699) (20,315) Loans, net of ALL 2,365,741 2,216,911 Deferred loan fees and costs (822) (1,712) Loans, net $ 2,364,919 $ 2,215,199 |
Summary of the activity in the ALL by loan type | A summary of the activity in the ALL by loan type as of June 30, 2022 and 2021 is summarized as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total ALL - January 1, 2022 $ 3,699 $ 5,633 $ 5,151 $ 984 $ 4,445 $ 224 $ 179 $ 20,315 Charge-offs — — — — (39) — (18) (57) Recoveries 454 74 3 152 5 — 53 741 Provision 182 706 261 46 555 24 (74) 1,700 ALL - June 30, 2022 4,335 6,413 5,415 1,182 4,966 248 140 22,699 ALL ending balance individually evaluated for impairment 150 — 794 — — — — 944 ALL ending balance collectively evaluated for impairment $ 4,185 $ 6,413 $ 4,621 $ 1,182 $ 4,966 $ 248 $ 140 $ 21,755 Loans outstanding - June 30, 2022 $ 394,999 $ 589,018 $ 575,106 $ 158,742 $ 616,609 $ 35,365 $ 18,601 $ 2,388,440 Loans ending balance individually evaluated for impairment 694 2,578 1,417 — 218 — — 4,907 Loans ending balance collectively evaluated for impairment $ 394,305 $ 586,440 $ 573,689 $ 158,742 $ 616,391 $ 35,365 $ 18,601 $ 2,383,533 Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total ALL - January 1, 2021 $ 2,049 $ 6,108 $ 3,904 $ 1,027 $ 3,960 $ 201 $ 409 $ 17,658 Charge-offs — (24) — — — — (13) (37) Recoveries 27 — 5 33 8 1 2 76 Provision 734 609 213 4 370 33 (113) 1,850 ALL - June 30, 2021 2,810 6,693 4,122 1,064 4,338 235 285 19,547 ALL ending balance individually evaluated for impairment 2 — 452 — — — — 454 ALL ending balance collectively evaluated for impairment $ 2,808 $ 6,693 $ 3,670 $ 1,064 $ 4,338 $ 235 $ 285 $ 19,093 Loans outstanding - June 30, 2021 $ 408,341 $ 559,886 $ 482,850 $ 140,694 $ 572,233 $ 33,399 $ 32,402 $ 2,229,805 Loans ending balance individually evaluated for impairment 1,172 1,077 6,819 — — — — 9,068 Loans ending balance collectively evaluated for impairment $ 407,169 $ 558,809 $ 476,031 $ 140,694 $ 572,233 $ 33,399 $ 32,402 $ 2,220,737 |
Schedule of past due loans | The Company’s past due loans as of June 30, 2022 is summarized as follows: 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 21 $ 737 $ 221 $ 979 Commercial real estate - owner occupied 1,308 — 3,667 4,975 Commercial real estate - non-owner occupied 64 — — 64 Construction and development — — 18 18 Residential 1‑4 family 567 420 418 1,405 Consumer 10 5 24 39 Other — — — — $ 1,970 $ 1,162 $ 4,348 $ 7,480 The Company’s past due loans as of December 31, 2021 is summarized as follows: 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 12 $ 738 $ 247 $ 997 Commercial real estate - owner occupied — — 5,884 5,884 Commercial real estate - non-owner occupied 65 — 650 715 Construction and development — — 19 19 Residential 1‑4 family 2,002 245 439 2,686 Consumer 2 16 2 20 Other — — — — $ 2,081 $ 999 $ 7,241 $ 10,321 |
Schedule of loans by risk rating | The breakdown of loans by risk rating as of June 30, 2022 is as follows: Pass (1-5) 6 7 8 Total Commercial/industrial $ 377,444 $ 866 $ 16,689 $ — $ 394,999 Commercial real estate - owner occupied 552,478 6,906 29,634 — 589,018 Commercial real estate - non-owner occupied 570,824 — 4,282 — 575,106 Construction and development 157,557 — 1,185 — 158,742 Residential 1‑4 family 614,212 — 2,397 — 616,609 Consumer 35,363 — 2 — 35,365 Other 18,601 — — — 18,601 $ 2,326,479 $ 7,772 $ 54,189 $ — $ 2,388,440 The breakdown of loans by risk rating as of December 31, 2021 is as follows: Pass (1-5) 6 7 8 Total Commercial/industrial $ 355,469 $ — $ 11,815 $ — $ 367,284 Commercial real estate - owner occupied 551,801 — 23,159 — 574,960 Commercial real estate - non-owner occupied 532,077 — 5,000 — 537,077 Construction and development 131,429 — 1,246 — 132,675 Residential 1‑4 family 570,022 83 1,644 — 571,749 Consumer 31,988 — 4 — 31,992 Other 21,489 — — — 21,489 $ 2,194,275 $ 83 $ 42,868 $ — $ 2,237,226 |
Schedule of impaired loans individually evaluated | A summary of impaired loans individually evaluated as of June 30, 2022 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total With an allowance recorded: Recorded investment $ 352 $ — $ 1,305 $ — $ — $ — $ — $ 1,657 Unpaid principal balance 352 — 1,305 — — — — 1,657 Related allowance 150 — 794 — — — — 944 With no related allowance recorded: Recorded investment $ 342 $ 2,578 $ 112 $ — $ 218 $ — $ — $ 3,250 Unpaid principal balance 342 2,578 112 — 218 — — 3,250 Related allowance — — — — — — — — Total: Recorded investment $ 694 $ 2,578 $ 1,417 $ — $ 218 $ — $ — $ 4,907 Unpaid principal balance 694 2,578 1,417 — 218 — — 4,907 Related allowance 150 — 794 — — — — 944 Average recorded investment $ 567 $ 3,772 $ 1,468 $ — $ 245 $ — $ — $ 6,052 A summary of impaired loans individually evaluated as of December 31, 2021 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non - Owner and Residential Industrial Occupied Occupied Development 1 ‑ 4 Family Consumer Other Total With an allowance recorded: Recorded investment $ 357 $ — $ 1,406 $ — $ — $ — $ — $ 1,763 Unpaid principal balance 357 — 1,406 — — — — 1,763 Related allowance 70 — 894 — — — — 964 With no related allowance recorded: Recorded investment $ 82 $ 4,966 $ 113 $ — $ 273 $ — $ — $ 5,434 Unpaid principal balance 82 4,966 113 — 273 — — 5,434 Related allowance — — — — — — — — Total: Recorded investment $ 439 $ 4,966 $ 1,519 $ — $ 273 $ — $ — $ 7,197 Unpaid principal balance 439 4,966 1,519 — 273 — — 7,197 Related allowance 70 — 894 — — — — 964 Average recorded investment $ 459 $ 3,069 $ 5,098 $ — $ 267 $ — $ — $ 8,893 |
Schedule of loans acquired with deteriorated credit quality | The following table presents loans acquired with deteriorated credit quality as of June 30, 2022 and December 31, 2021. No loans in this table had a related allowance at either date, and therefore, the below disclosures were not expanded to include loans with and without a related allowance. June 30, 2022 December 31, 2021 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance Commercial & Industrial $ 545 $ 626 $ 596 $ 685 Commercial real estate - owner occupied 1,846 2,065 2,664 3,146 Commercial real estate - non-owner occupied 365 399 1,018 1,150 Construction and development — — — — Residential 1‑4 family 839 1,081 863 1,124 Consumer — — — — Other — — — — $ 3,595 $ 4,171 $ 5,141 $ 6,105 |
Schedule of change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality | The following table represents the change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality for the six months ended June 30, 2022, and year ended December 31, 2021: June 30, 2022 December 31, 2021 Accretable Non-accretable Accretable Non-accretable discount discount discount discount Balance at beginning of period $ 813 $ 149 $ 1,250 $ 176 Acquired balance, net — — — — Reclassifications between accretable and non-accretable 13 (13) 27 (27) Accretion to loan interest income (250) — (464) — Balance at end of period $ 576 $ 136 $ 813 $ 149 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
MORTGAGE SERVICING RIGHTS | |
Schedule of analysis of activity in the MSR asset | Following is an analysis of activity in the MSR asset: Six Months Ended Year Ended June 30, 2022 December 31, 2021 Fair value at beginning of period $ 5,016 $ 3,726 Servicing asset additions 269 1,862 Loan payments and payoffs (192) (1,319) Changes in valuation inputs and assumptions used in the valuation model 1,884 747 Amount recognized through earnings 1,961 1,290 Fair value at end of period $ 6,977 $ 5,016 Unpaid principal balance of loans serviced for others $ 716,717 $ 705,462 Mortgage servicing rights as a percent of loans serviced for others 0.96 0.71 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
NOTES PAYABLE | |
Schedule of advance rate and maturities | June 30, December 31, Maturity Rate 2022 2021 Fixed rate, fixed term 01/24/2022 2.51 % $ — $ 250 Fixed rate, fixed term 05/02/2022 2.98 % — 500 Fixed rate, fixed term 05/16/2022 0.00 % — 5,000 Fixed rate, fixed term 06/08/2022 2.92 % — 500 Fixed rate, fixed term 11/21/2022 3.02 % 600 600 Fixed rate, fixed term 11/21/2023 3.06 % 600 600 Fixed rate, fixed term 04/22/2030 0.00 % 508 508 1,708 7,958 Adjustment due to purchase accounting 27 53 $ 1,735 $ 8,011 |
Schedule of Future maturities of borrowings | June 30, December 31, 2022 2021 1 year or less $ 600 $ 6,850 1 to 2 years 600 600 2 to 3 years — — 3 to 4 years — — 4 to 5 years — — Over 5 years 508 508 $ 1,708 $ 7,958 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
REGULATORY MATTERS | |
Schedule of Actual and required capital amounts and ratios | Actual and required capital amounts and ratios are presented below at period-end: To Be Well Minimum Capital Capitalized Under For Capital Adequacy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2022 Total capital (to risk-weighted assets): Company $ 307,585 11.94 % NA NA NA NA NA NA Bank $ 301,206 11.70 % $ 206,018 8.00 % $ 270,398 10.50 % $ 257,522 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 267,387 10.38 % NA NA NA NA NA NA Bank $ 278,508 10.81 % $ 154,513 6.00 % $ 218,894 8.50 % $ 206,018 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 267,387 10.38 % NA NA NA NA NA NA Bank $ 278,508 10.81 % $ 115,885 4.50 % $ 180,265 7.00 % $ 167,389 6.50 % Tier 1 capital (to average assets): Company $ 267,387 8.60 % NA NA NA NA NA NA Bank $ 278,508 8.96 % $ 124,369 4.00 % $ 124,369 4.00 % $ 155,461 5.00 % December 31, 2021 Total capital (to risk-weighted assets): Company $ 297,467 12.44 % NA NA NA NA NA NA Bank $ 291,994 12.21 % $ 191,339 8.00 % $ 251,133 10.50 % $ 239,174 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 259,652 10.86 % NA NA NA NA NA NA Bank $ 271,679 11.36 % $ 143,505 6.00 % $ 203,298 8.50 % $ 191,339 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 259,652 10.86 % NA NA NA NA NA NA Bank $ 271,679 11.36 % $ 107,628 4.50 % $ 167,422 7.00 % $ 155,463 6.50 % Tier 1 capital (to average assets): Company $ 259,652 9.29 % NA NA NA NA NA NA Bank $ 271,679 9.72 % $ 111,825 4.00 % $ 111,825 4.00 % $ 139,781 5.00 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Commitments and contingencies outstanding | The following commitments were outstanding: Notional Amount June 30, 2022 December 31, 2021 Commitments to extend credit: Fixed $ 80,051 $ 90,036 Variable 404,533 412,095 Credit card arrangements 15,618 10,916 Letters of credit 10,726 9,062 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of assets measured at fair value on a recurring basis | Information regarding the fair value of assets measured at fair value on a recurring basis is as follows: Instruments Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) June 30, 2022 Assets Securities available for sale U.S. Treasury securities $ 142,908 $ — $ 142,908 $ — Obligations of U.S. Government sponsored agencies 22,657 — 22,657 — Obligations of states and political subdivisions 74,746 — 74,746 — Mortgage-backed securities 30,533 — 30,533 — Corporate notes 20,099 — 20,099 — Certificates of deposit 1,483 — 1,483 — Mortgage servicing rights 6,977 — 6,977 — December 31, 2021 Assets Securities available for sale U.S. Treasury securities $ 49,502 $ — $ 49,502 $ — Obligations of U.S. Government sponsored agencies 26,546 — 26,546 — Obligations of states and political subdivisions 86,738 — 86,738 — Mortgage-backed securities 27,259 — 27,259 — Corporate notes 21,102 — 21,102 — Certificates of deposit 1,542 — 1,542 — Mortgage servicing rights 5,016 — 5,016 — |
Schedule of fair value of assets measured on a non-recurring basis | Information regarding the fair value of assets measured at fair value on a non-recurring basis is as follows: Quoted Prices In Active Significant Assets Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) June 30, 2022 Impaired Loans, net of impairment reserve $ 3,963 $ — $ — $ 3,963 December 31, 2021 OREO $ 150 $ — $ — $ 150 Impaired Loans, net of impairment reserve 6,233 — — 6,233 $ 6,383 $ — $ — $ 6,383 |
Schedule of fair value measurement on inputs and valuation techniques | Weighted Unobservable Range of Average Valuation Technique Inputs Discounts Discount As of June 30, 2022 Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 61 % 19.2 % As of December 31, 2021 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 18% - 97 % 18.0 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100 % 7.4 % |
Schedule of carrying value and estimated fair value of financial instruments | The carrying value and estimated fair value of financial instruments at June 30, 2022 and December 31, 2021 follows: Carrying June 30, 2022 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 43,985 $ 43,985 $ — $ — $ 43,985 Securities held to maturity 33,867 — 33,304 — 33,304 Securities available for sale 292,426 — 292,426 — 292,426 Loans held for sale 742 — — 742 742 Loans, net 2,364,919 — — 2,310,193 2,310,193 Other investments, at cost 19,564 — — 19,564 19,564 Mortgage servicing rights 6,977 — 6,977 — 6,977 Cash surrender value of life insurance 32,275 32,275 — — 32,275 Financial liabilities: Deposits $ 2,601,477 $ — $ — $ 2,353,298 $ 2,353,298 Securities sold under repurchase agreements 16,125 — 16,125 — 16,125 Notes payable 1,735 — 1,735 — 1,735 Subordinated notes 17,500 — 17,500 — 17,500 Carrying December 31, 2021 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 296,860 $ 296,860 $ — $ — $ 296,860 Securities held to maturity 5,911 — 5,922 — 5,922 Securities available for sale 212,689 — 212,689 — 212,689 Loans held for sale 786 — — 786 786 Loans, net 2,215,199 — — 2,210,593 2,210,593 Other investments, at cost 9,004 — — 9,004 9,004 Mortgage servicing rights 5,016 — 5,016 — 5,016 Cash surrender value of life insurance 31,897 31,897 — — 31,897 Financial liabilities: Deposits $ 2,528,440 $ — $ — $ 2,457,287 $ 2,457,287 Securities sold under repurchase agreements 41,122 — 41,122 — 41,122 Notes payable 8,011 — 8,011 — 8,011 Subordinated notes 17,500 — 17,500 — 17,500 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
STOCK BASED COMPENSATION | |
Schedule of share-based compensation, restricted stock and restricted stock units activity | For the year ended For the year ended June 30, 2022 June 30, 2021 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of year 58,611 $ 61.44 57,175 $ 53.08 Granted 25,451 69.73 25,416 70.67 Vested (20,785) 60.52 (21,755) 50.15 Forfeited or cancelled (4,005) 60.50 (1,105) 62.23 Outstanding at end of year 59,272 $ 65.85 59,731 $ 61.46 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
LEASES | |
Schedule of lease cost and other information related to leases | Six-month period ended June 30, 2022 June 30, 2021 Amortization of ROU Assets - Operating Leases $ — $ 7 Interest on Lease Liabilities - Operating Leases 43 44 Operating Lease Cost (Cost resulting from lease payments) 43 51 Weighted Average Lease Term (Years) - Operating Leases 31.5 32.42 Weighted Average Discount Rate - Operating Leases 5.50 % 5.50 % |
Schedule of maturity analysis of operating lease liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of June 30, 2022 is as follows: June 30, 2022 Operating lease payments due: Within one year $ 86 After one but within two years 86 After two but within three years 86 After three but within four years 89 After four years but within five years 94 After five years 3,184 Total undiscounted cash flows 3,625 Discount on cash flows (2,044) Total operating lease liabilities $ 1,581 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | Jun. 30, 2022 item |
BASIS OF PRESENTATION | |
Number of Bank locations | 21 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Jul. 25, 2022 | Jan. 18, 2022 | Jun. 30, 2022 |
Denmark Bancshares, Inc. and Hometown Bancorp, Ltd. | |||
ACQUISITIONS | |||
Total assets of combined company | $ 4,270 | ||
Total loans of combined company | 3,270 | ||
Total deposits of combined company | 3,750 | ||
Denmark Bancshares, Inc. | |||
ACQUISITIONS | |||
Percentage of total consideration consisting of cash | 20% | ||
Percentage of total consideration consisting of common stock of the Company | 80% | ||
Consideration amount under terms of merger agreement | $ 119 | ||
Total assets of combined company | 3,640 | ||
Total loans of combined company | 2,850 | ||
Total deposits of combined company | $ 3,210 | ||
Hometown Bancorp, Ltd. | |||
ACQUISITIONS | |||
Percentage of total consideration consisting of cash | 30% | ||
Percentage of total consideration consisting of common stock of the Company | 70% | ||
Consideration amount under terms of merger agreement | $ 124 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
EARNINGS PER SHARE | ||||||
Antidilutive Securities excluded from computation of earnings per share, amount | 0 | 0 | ||||
Basic | ||||||
Net income available to common shareholders | $ 11,654 | $ 10,183 | $ 11,548 | $ 11,514 | $ 21,837 | $ 23,062 |
Less: Earnings allocated to participating securities | (93) | (92) | (172) | (178) | ||
Net income available to common shareholders | $ 11,561 | $ 11,456 | $ 21,665 | $ 22,884 | ||
Weighted average common shares outstanding including participating securities | 7,516,892 | 7,713,718 | 7,557,909 | 7,715,064 | ||
Less: Participating securities | (59,449) | (60,401) | (59,170) | (59,326) | ||
Average shares | 7,457,443 | 7,653,317 | 7,498,739 | 7,655,738 | ||
Basic earnings per common shares | $ 1.55 | $ 1.50 | $ 2.89 | $ 2.99 | ||
Diluted | ||||||
Net income available to common shareholders | $ 11,654 | $ 10,183 | $ 11,548 | $ 11,514 | $ 21,837 | $ 23,062 |
Weighted average common shares outstanding for basic earnings per common share | 7,457,443 | 7,653,317 | 7,498,739 | 7,655,738 | ||
Add: Dilutive effects of stock based compensation awards | 15,118 | 15,423 | 19,027 | 19,254 | ||
Average shares and dilutive potential common shares | 7,472,561 | 7,668,740 | 7,517,766 | 7,674,992 | ||
Diluted earnings per common share | $ 1.55 | $ 1.50 | $ 2.89 | $ 2.99 |
SECURITIES - Available for sale
SECURITIES - Available for sale securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
SECURITIES | ||
Total | $ 308,908 | $ 207,747 |
Available for sale securities, Gross Unrealized Gains | 636 | 5,638 |
Available for sale securities, Gross Unrealized Losses | (17,118) | (696) |
Available for sale securities, Estimated Fair Value | 292,426 | 212,689 |
U.S. Treasury securities | ||
SECURITIES | ||
Total | 149,589 | 49,574 |
Available for sale securities, Gross Unrealized Gains | 121 | |
Available for sale securities, Gross Unrealized Losses | (6,681) | (193) |
Available for sale securities, Estimated Fair Value | 142,908 | 49,502 |
Obligations of U.S. Government sponsored agencies | ||
SECURITIES | ||
Total | 25,151 | 26,722 |
Available for sale securities, Gross Unrealized Gains | 165 | |
Available for sale securities, Gross Unrealized Losses | (2,494) | (341) |
Available for sale securities, Estimated Fair Value | 22,657 | 26,546 |
Obligations of states and political subdivisions | ||
SECURITIES | ||
Total | 80,813 | 83,019 |
Available for sale securities, Gross Unrealized Gains | 246 | 3,786 |
Available for sale securities, Gross Unrealized Losses | (6,313) | (67) |
Available for sale securities, Estimated Fair Value | 74,746 | 86,738 |
Mortgage-backed securities | ||
SECURITIES | ||
Total | 31,288 | 26,143 |
Available for sale securities, Gross Unrealized Gains | 3 | 1,117 |
Available for sale securities, Gross Unrealized Losses | (758) | (1) |
Available for sale securities, Estimated Fair Value | 30,533 | 27,259 |
Corporate notes | ||
SECURITIES | ||
Total | 20,555 | 20,760 |
Available for sale securities, Gross Unrealized Gains | 387 | 436 |
Available for sale securities, Gross Unrealized Losses | (843) | (94) |
Available for sale securities, Estimated Fair Value | 20,099 | 21,102 |
Certificates of deposit | ||
SECURITIES | ||
Total | 1,512 | 1,529 |
Available for sale securities, Gross Unrealized Gains | 13 | |
Available for sale securities, Gross Unrealized Losses | (29) | |
Available for sale securities, Estimated Fair Value | $ 1,483 | $ 1,542 |
SECURITIES - Held to maturity s
SECURITIES - Held to maturity securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
SECURITIES | ||
Held to maturity securities, Amortized Cost | $ 33,867 | $ 5,911 |
Held to maturity securities, Gross Unrealized Gains | 1 | |
Held to maturity securities, Gross Unrealized Losses | (564) | |
Held to Maturity Total, Estimated Fair Value | 33,304 | 5,922 |
U.S. Treasury securities | ||
SECURITIES | ||
Held to maturity securities, Amortized Cost | 28,671 | |
Held to maturity securities, Gross Unrealized Losses | (564) | |
Held to Maturity Total, Estimated Fair Value | 28,107 | |
Obligations of states and political subdivisions | ||
SECURITIES | ||
Held to maturity securities, Amortized Cost | 5,196 | 5,911 |
Held to maturity securities, Gross Unrealized Gains | 1 | 11 |
Held to Maturity Total, Estimated Fair Value | $ 5,197 | $ 5,922 |
SECURITIES - Fair value and gro
SECURITIES - Fair value and gross unrealized losses of securities with unrealized losses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 260,276 | $ 65,782 |
Less Than 12 Months, Unrealized Losses | (16,316) | (441) |
Greater Than 12 Months, Fair Value | 3,918 | 4,558 |
Greater Than 12 Months, Unrealized Losses | (802) | (255) |
Total, Fair Value | 264,194 | 70,340 |
Total, Unrealized Losses | (17,118) | (696) |
U.S. Treasury securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 142,908 | 34,746 |
Less Than 12 Months, Unrealized Losses | (6,681) | (193) |
Total, Fair Value | 142,908 | 34,746 |
Total, Unrealized Losses | (6,681) | (193) |
Held to Maturity | ||
Less Than 12 Months, Fair Value | 28,107 | |
Less Than 12 Months, Unrealized Losses | (564) | |
Total, Fair Value | 28,107 | |
Total, Unrealized Losses | (564) | |
Obligations of U.S. Government sponsored agencies | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 18,739 | 13,185 |
Less Than 12 Months, Unrealized Losses | (1,692) | (86) |
Greater Than 12 Months, Fair Value | 3,918 | 4,558 |
Greater Than 12 Months, Unrealized Losses | (802) | (255) |
Total, Fair Value | 22,657 | 17,743 |
Total, Unrealized Losses | (2,494) | (341) |
Obligations of states and political subdivisions | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 53,679 | 8,624 |
Less Than 12 Months, Unrealized Losses | (6,313) | (67) |
Total, Fair Value | 53,679 | 8,624 |
Total, Unrealized Losses | (6,313) | (67) |
Mortgage-backed securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 30,068 | 254 |
Less Than 12 Months, Unrealized Losses | (758) | (1) |
Total, Fair Value | 30,068 | 254 |
Total, Unrealized Losses | (758) | (1) |
Corporate notes | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 13,399 | 8,973 |
Less Than 12 Months, Unrealized Losses | (843) | (94) |
Greater Than 12 Months, Fair Value | 0 | |
Greater Than 12 Months, Unrealized Losses | 0 | |
Total, Fair Value | 13,399 | 8,973 |
Total, Unrealized Losses | (843) | $ (94) |
Certificates of deposit | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 1,483 | |
Less Than 12 Months, Unrealized Losses | (29) | |
Total, Fair Value | 1,483 | |
Total, Unrealized Losses | $ (29) |
SECURITIES - Amortized cost and
SECURITIES - Amortized cost and estimated fair value of securities by contractual maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available for Sale, Amortized Cost | ||
Due in one year or less | $ 100,978 | |
Due after one year through 5 years | 14,961 | |
Due after 5 years through ten years | 88,548 | |
Due after 10 years | 73,133 | |
Subtotal | 277,620 | |
Mortgage-backed securities | 31,288 | |
Total | 308,908 | $ 207,747 |
Available for Sale, Estimated Fair Value | ||
Due in one year or less | 99,908 | |
Due after one year through 5 years | 14,895 | |
Due after 5 years through ten years | 81,416 | |
Due after 10 years | 65,674 | |
Subtotal | 261,893 | |
Mortgage-backed securities | 30,533 | |
Total | 292,426 | 212,689 |
Held to Maturity, Amortized Cost | ||
Due in one year or less | 1,044 | |
Due after one year through 5 years | 31,952 | |
Due after 5 years through ten years | 871 | |
Subtotal | 33,867 | |
Held to maturity securities, Amortized Cost | 33,867 | 5,911 |
Held to Maturity, Estimated Fair Value | ||
Due in one year or less | 1,044 | |
Due after one year through 5 years | 31,389 | |
Due after 5 years through ten years | 871 | |
Subtotal | 33,304 | |
Total | $ 33,304 | $ 5,922 |
SECURITIES - Sales of securitie
SECURITIES - Sales of securities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
SECURITIES | ||
Available-for-sale, Realized Gain (Loss) | $ 0 | $ 0 |
Held-to-maturity, Sold, Realized Gain (Loss) | $ 0 | $ 0 |
LOANS, ALLOWANCE FOR LOAN LOS_3
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Portfolio segment and class of loan (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||||
Loans and Leases Receivable, Gross | $ 2,388,440 | $ 2,237,226 | $ 2,229,805 | |
ALL | (22,699) | (20,315) | (19,547) | $ (17,658) |
Loans, net of ALL | 2,365,741 | 2,216,911 | ||
Deferred loan fees and costs | (822) | (1,712) | ||
Loans, net | 2,364,919 | 2,215,199 | ||
Other | ||||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||||
Loans and Leases Receivable, Gross | 18,601 | 21,489 | 32,402 | |
ALL | (140) | (179) | (285) | (409) |
Construction and Development | ||||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||||
Loans and Leases Receivable, Gross | 158,742 | 132,675 | 140,694 | |
ALL | (1,182) | (984) | (1,064) | (1,027) |
Commercial/Industrial | ||||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||||
Loans and Leases Receivable, Gross | 394,999 | 367,284 | 408,341 | |
ALL | (4,335) | (3,699) | (2,810) | (2,049) |
Commercial Real Estate - Owner Occupied | ||||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||||
Loans and Leases Receivable, Gross | 589,018 | 574,960 | 559,886 | |
ALL | (6,413) | (5,633) | (6,693) | (6,108) |
Commercial Real Estate - Non-Owner Occupied | ||||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||||
Loans and Leases Receivable, Gross | 575,106 | 537,077 | 482,850 | |
ALL | (5,415) | (5,151) | (4,122) | (3,904) |
Residential 1-4 Family | ||||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||||
Loans and Leases Receivable, Gross | 616,609 | 571,749 | 572,233 | |
ALL | (4,966) | (4,445) | (4,338) | (3,960) |
Consumer | ||||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||||
Loans and Leases Receivable, Gross | 35,365 | 31,992 | 33,399 | |
ALL | $ (248) | $ (224) | $ (235) | $ (201) |
LOANS, ALLOWANCE FOR LOAN LOS_4
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY- ALL by loan type (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
ALL - Beginning Balance | $ 20,315 | $ 17,658 | |
Charge-offs | (57) | (37) | |
Recoveries | 741 | 76 | |
Provision | 1,700 | 1,850 | |
ALL - Ending Balance | 22,699 | 19,547 | |
ALL ending balance individually evaluated for impairment | 944 | 454 | |
ALL ending balance collectively evaluated for impairment | 21,755 | 19,093 | |
Loans outstanding - Ending Balance | 2,388,440 | 2,229,805 | $ 2,237,226 |
Loans ending balance individually evaluated for impairment | 4,907 | 9,068 | |
Loans ending balance collectively evaluated for impairment | 2,383,533 | 2,220,737 | |
Other | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
ALL - Beginning Balance | 179 | 409 | |
Charge-offs | (18) | (13) | |
Recoveries | 53 | 2 | |
Provision | (74) | (113) | |
ALL - Ending Balance | 140 | 285 | |
ALL ending balance collectively evaluated for impairment | 140 | 285 | |
Loans outstanding - Ending Balance | 18,601 | 32,402 | 21,489 |
Loans ending balance collectively evaluated for impairment | 18,601 | 32,402 | |
Construction and Development | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
ALL - Beginning Balance | 984 | 1,027 | |
Recoveries | 152 | 33 | |
Provision | 46 | 4 | |
ALL - Ending Balance | 1,182 | 1,064 | |
ALL ending balance collectively evaluated for impairment | 1,182 | 1,064 | |
Loans outstanding - Ending Balance | 158,742 | 140,694 | 132,675 |
Loans ending balance collectively evaluated for impairment | 158,742 | 140,694 | |
Commercial/Industrial | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
ALL - Beginning Balance | 3,699 | 2,049 | |
Recoveries | 454 | 27 | |
Provision | 182 | 734 | |
ALL - Ending Balance | 4,335 | 2,810 | |
ALL ending balance individually evaluated for impairment | 150 | 2 | |
ALL ending balance collectively evaluated for impairment | 4,185 | 2,808 | |
Loans outstanding - Ending Balance | 394,999 | 408,341 | 367,284 |
Loans ending balance individually evaluated for impairment | 694 | 1,172 | |
Loans ending balance collectively evaluated for impairment | 394,305 | 407,169 | |
Commercial Real Estate - Owner Occupied | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
ALL - Beginning Balance | 5,633 | 6,108 | |
Charge-offs | (24) | ||
Recoveries | 74 | ||
Provision | 706 | 609 | |
ALL - Ending Balance | 6,413 | 6,693 | |
ALL ending balance collectively evaluated for impairment | 6,413 | 6,693 | |
Loans outstanding - Ending Balance | 589,018 | 559,886 | 574,960 |
Loans ending balance individually evaluated for impairment | 2,578 | 1,077 | |
Loans ending balance collectively evaluated for impairment | 586,440 | 558,809 | |
Commercial Real Estate - Non-Owner Occupied | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
ALL - Beginning Balance | 5,151 | 3,904 | |
Recoveries | 3 | 5 | |
Provision | 261 | 213 | |
ALL - Ending Balance | 5,415 | 4,122 | |
ALL ending balance individually evaluated for impairment | 794 | 452 | |
ALL ending balance collectively evaluated for impairment | 4,621 | 3,670 | |
Loans outstanding - Ending Balance | 575,106 | 482,850 | 537,077 |
Loans ending balance individually evaluated for impairment | 1,417 | 6,819 | |
Loans ending balance collectively evaluated for impairment | 573,689 | 476,031 | |
Residential 1-4 Family | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
ALL - Beginning Balance | 4,445 | 3,960 | |
Charge-offs | (39) | ||
Recoveries | 5 | 8 | |
Provision | 555 | 370 | |
ALL - Ending Balance | 4,966 | 4,338 | |
ALL ending balance collectively evaluated for impairment | 4,966 | 4,338 | |
Loans outstanding - Ending Balance | 616,609 | 572,233 | 571,749 |
Loans ending balance individually evaluated for impairment | 218 | ||
Loans ending balance collectively evaluated for impairment | 616,391 | 572,233 | |
Consumer | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
ALL - Beginning Balance | 224 | 201 | |
Recoveries | 1 | ||
Provision | 24 | 33 | |
ALL - Ending Balance | 248 | 235 | |
ALL ending balance collectively evaluated for impairment | 248 | 235 | |
Loans outstanding - Ending Balance | 35,365 | 33,399 | $ 31,992 |
Loans ending balance collectively evaluated for impairment | $ 35,365 | $ 33,399 |
LOANS, ALLOWANCE FOR LOAN LOS_5
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Past due loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | $ 4,348 | $ 7,241 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 7,480 | 10,321 |
Construction and Development | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 18 | 19 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 18 | 19 |
Commercial/Industrial | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 221 | 247 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 979 | 997 |
Commercial Real Estate - Owner Occupied | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 3,667 | 5,884 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 4,975 | 5,884 |
Commercial Real Estate - Non-Owner Occupied | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 650 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 64 | 715 |
Residential 1-4 Family | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 418 | 439 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,405 | 2,686 |
Consumer | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 24 | 2 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 39 | 20 |
30-89 Days Past Due Accruing | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 1,970 | 2,081 |
30-89 Days Past Due Accruing | Commercial/Industrial | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 21 | 12 |
30-89 Days Past Due Accruing | Commercial Real Estate - Owner Occupied | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 1,308 | |
30-89 Days Past Due Accruing | Commercial Real Estate - Non-Owner Occupied | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 64 | 65 |
30-89 Days Past Due Accruing | Residential 1-4 Family | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 567 | 2,002 |
30-89 Days Past Due Accruing | Consumer | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 10 | 2 |
90 Days Past Due Accruing | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 1,162 | 999 |
90 Days Past Due Accruing | Commercial/Industrial | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 737 | 738 |
90 Days Past Due Accruing | Residential 1-4 Family | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | 420 | 245 |
90 Days Past Due Accruing | Consumer | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Financing Receivable, Recorded Investment, Past Due | $ 5 | $ 16 |
LOANS, ALLOWANCE FOR LOAN LOS_6
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Breakdown of loans by risk rating (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | $ 2,388,440 | $ 2,237,226 | $ 2,229,805 |
Other | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 18,601 | 21,489 | 32,402 |
Construction and Development | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 158,742 | 132,675 | 140,694 |
Commercial/Industrial | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 394,999 | 367,284 | 408,341 |
Commercial Real Estate - Owner Occupied | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 589,018 | 574,960 | 559,886 |
Commercial Real Estate - Non-Owner Occupied | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 575,106 | 537,077 | 482,850 |
Residential 1-4 Family | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 616,609 | 571,749 | 572,233 |
Consumer | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 35,365 | 31,992 | $ 33,399 |
Risk Rating, Pass (1-5) | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 2,326,479 | 2,194,275 | |
Risk Rating, Pass (1-5) | Other | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 18,601 | 21,489 | |
Risk Rating, Pass (1-5) | Construction and Development | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 157,557 | 131,429 | |
Risk Rating, Pass (1-5) | Commercial/Industrial | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 377,444 | 355,469 | |
Risk Rating, Pass (1-5) | Commercial Real Estate - Owner Occupied | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 552,478 | 551,801 | |
Risk Rating, Pass (1-5) | Commercial Real Estate - Non-Owner Occupied | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 570,824 | 532,077 | |
Risk Rating, Pass (1-5) | Residential 1-4 Family | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 614,212 | 570,022 | |
Risk Rating, Pass (1-5) | Consumer | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 35,363 | 31,988 | |
Risk Rating, 6 | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 7,772 | 83 | |
Risk Rating, 6 | Commercial/Industrial | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 866 | ||
Risk Rating, 6 | Commercial Real Estate - Owner Occupied | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 6,906 | ||
Risk Rating, 6 | Residential 1-4 Family | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 83 | ||
Risk Rating, 7 | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 54,189 | 42,868 | |
Risk Rating, 7 | Construction and Development | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 1,185 | 1,246 | |
Risk Rating, 7 | Commercial/Industrial | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 16,689 | 11,815 | |
Risk Rating, 7 | Commercial Real Estate - Owner Occupied | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 29,634 | 23,159 | |
Risk Rating, 7 | Commercial Real Estate - Non-Owner Occupied | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 4,282 | 5,000 | |
Risk Rating, 7 | Residential 1-4 Family | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | 2,397 | 1,644 | |
Risk Rating, 7 | Consumer | |||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |||
Loans and Leases Receivable, Gross | $ 2 | $ 4 |
LOANS, ALLOWANCE FOR LOAN LOS_7
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Summary of impaired loans individually evaluated (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
With an allowance recorded: | ||
Recorded investment | $ 1,657 | $ 1,763 |
Unpaid principal balance | 1,657 | 1,763 |
Related allowance | 944 | 964 |
With no related allowance recorded: | ||
Recorded investment | 3,250 | 5,434 |
Unpaid principal balance | 3,250 | 5,434 |
Total: | ||
Recorded investment | 4,907 | 7,197 |
Unpaid principal balance | 4,907 | 7,197 |
Related allowance | 944 | 964 |
Average recorded investment | 6,052 | 8,893 |
Commercial/Industrial | ||
With an allowance recorded: | ||
Recorded investment | 352 | 357 |
Unpaid principal balance | 352 | 357 |
Related allowance | 150 | 70 |
With no related allowance recorded: | ||
Recorded investment | 342 | 82 |
Unpaid principal balance | 342 | 82 |
Total: | ||
Recorded investment | 694 | 439 |
Unpaid principal balance | 694 | 439 |
Related allowance | 150 | 70 |
Average recorded investment | 567 | 459 |
Commercial Real Estate - Owner Occupied | ||
With no related allowance recorded: | ||
Recorded investment | 2,578 | 4,966 |
Unpaid principal balance | 2,578 | 4,966 |
Total: | ||
Recorded investment | 2,578 | 4,966 |
Unpaid principal balance | 2,578 | 4,966 |
Average recorded investment | 3,772 | 3,069 |
Commercial Real Estate - Non-Owner Occupied | ||
With an allowance recorded: | ||
Recorded investment | 1,305 | 1,406 |
Unpaid principal balance | 1,305 | 1,406 |
Related allowance | 794 | 894 |
With no related allowance recorded: | ||
Recorded investment | 112 | 113 |
Unpaid principal balance | 112 | 113 |
Total: | ||
Recorded investment | 1,417 | 1,519 |
Unpaid principal balance | 1,417 | 1,519 |
Related allowance | 794 | 894 |
Average recorded investment | 1,468 | 5,098 |
Residential 1-4 Family | ||
With no related allowance recorded: | ||
Recorded investment | 218 | 273 |
Unpaid principal balance | 218 | 273 |
Total: | ||
Recorded investment | 218 | 273 |
Unpaid principal balance | 218 | 273 |
Average recorded investment | $ 245 | $ 267 |
LOANS, ALLOWANCE FOR LOAN LOS_8
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Credit Deterioration (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | $ 4,907 | $ 7,197 |
Impaired Financing Receivable, Unpaid Principal Balance | 4,907 | 7,197 |
Commercial/Industrial | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | 694 | 439 |
Impaired Financing Receivable, Unpaid Principal Balance | 694 | 439 |
Commercial Real Estate - Owner Occupied | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | 2,578 | 4,966 |
Impaired Financing Receivable, Unpaid Principal Balance | 2,578 | 4,966 |
Commercial Real Estate - Non-Owner Occupied | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | 1,417 | 1,519 |
Impaired Financing Receivable, Unpaid Principal Balance | 1,417 | 1,519 |
Residential 1-4 Family | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | 218 | 273 |
Impaired Financing Receivable, Unpaid Principal Balance | 218 | 273 |
Financial Asset Acquired with Credit Deterioration | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | 3,595 | 5,141 |
Impaired Financing Receivable, Unpaid Principal Balance | 4,171 | 6,105 |
Financial Asset Acquired with Credit Deterioration | Commercial/Industrial | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | 545 | 596 |
Impaired Financing Receivable, Unpaid Principal Balance | 626 | 685 |
Financial Asset Acquired with Credit Deterioration | Commercial Real Estate - Owner Occupied | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | 1,846 | 2,664 |
Impaired Financing Receivable, Unpaid Principal Balance | 2,065 | 3,146 |
Financial Asset Acquired with Credit Deterioration | Commercial Real Estate - Non-Owner Occupied | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | 365 | 1,018 |
Impaired Financing Receivable, Unpaid Principal Balance | 399 | 1,150 |
Financial Asset Acquired with Credit Deterioration | Residential 1-4 Family | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Impaired Financing Receivable, Recorded Investment | 839 | 863 |
Impaired Financing Receivable, Unpaid Principal Balance | $ 1,081 | $ 1,124 |
LOANS, ALLOWANCE FOR LOAN LOS_9
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Change in the accretable and non accretable Components of Discounts on Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Accretable Discount [Member] | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Balance at beginning of year | $ 813 | $ 1,250 |
Reclassifications between accretable and non-accretable | 13 | 27 |
Accretion to loan interest income | (250) | (464) |
Balance at end of year | 576 | 813 |
Non Accretable Discount [Member] | ||
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | ||
Balance at beginning of year | 149 | 176 |
Reclassifications between accretable and non-accretable | (13) | (27) |
Balance at end of year | $ 136 | $ 149 |
MORTGAGE SERVICING RIGHTS - Ana
MORTGAGE SERVICING RIGHTS - Analysis of activity in MSR asset (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
MORTGAGE SERVICING RIGHTS | ||
Fair value at beginning of period | $ 5,016 | $ 3,726 |
Servicing asset additions | 269 | 1,862 |
Loan payments and payoffs | (192) | (1,319) |
Changes in valuation inputs and assumptions used in the valuation model | 1,884 | 747 |
Amount recognized through earnings | 1,961 | 1,290 |
Fair value at end of period | 6,977 | 5,016 |
Unpaid principal balance of loans serviced for others | 4,907 | 7,197 |
Loans serviced for others | ||
MORTGAGE SERVICING RIGHTS | ||
Unpaid principal balance of loans serviced for others | $ 716,717 | $ 705,462 |
Mortgage servicing rights as a percent of loans serviced for others | 0.96% | 0.71% |
MORTGAGE SERVICING RIGHTS - Mea
MORTGAGE SERVICING RIGHTS - Measurement inputs (Details) | Jun. 30, 2022 M | Dec. 31, 2021 item M |
Measurement Input, Prepayment Rate | ||
MORTGAGE SERVICING RIGHTS | ||
MSR asset, measurement input | M | 8.2 | 13.8 |
Measurement Input, Discount Rate | ||
MORTGAGE SERVICING RIGHTS | ||
MSR asset, measurement input | item | 0.103 |
NOTES PAYABLE - FHLB advances (
NOTES PAYABLE - FHLB advances (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
NOTES PAYABLE | ||
Notes payable, before adjustments | $ 1,708 | $ 7,958 |
Purchase accounting adjustment | 27 | 53 |
Total notes payable | $ 1,735 | 8,011 |
Fixed rate, fixed term, Maturity 01/24/2022 | ||
NOTES PAYABLE | ||
Rate | 2.51% | |
Notes payable, before adjustments | 250 | |
Fixed rate, fixed term, Maturity 05/02/2022 | ||
NOTES PAYABLE | ||
Rate | 2.98% | |
Notes payable, before adjustments | 500 | |
Fixed rate, fixed term, Maturity 05/16/2022 | ||
NOTES PAYABLE | ||
Rate | 0% | |
Notes payable, before adjustments | 5,000 | |
Fixed rate, fixed term, Maturity 06/08/2022 | ||
NOTES PAYABLE | ||
Rate | 2.92% | |
Notes payable, before adjustments | 500 | |
Fixed rate, fixed term, Maturity 11/21/2022 | ||
NOTES PAYABLE | ||
Rate | 3.02% | |
Notes payable, before adjustments | $ 600 | 600 |
Fixed rate, fixed term, Maturity 11/21/2023 | ||
NOTES PAYABLE | ||
Rate | 3.06% | |
Notes payable, before adjustments | $ 600 | 600 |
Fixed rate, fixed term, Maturity 04/22/2030 | ||
NOTES PAYABLE | ||
Rate | 0% | |
Notes payable, before adjustments | $ 508 | $ 508 |
NOTES PAYABLE- Future maturitie
NOTES PAYABLE- Future maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
NOTES PAYABLE | ||
1 year or less | $ 600 | $ 6,850 |
1 to 2 years | 600 | 600 |
Over 5 years | 508 | 508 |
Total | $ 1,708 | $ 7,958 |
NOTES PAYABLE - Additional Info
NOTES PAYABLE - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2022 | May 15, 2022 | Dec. 31, 2021 |
NOTES PAYABLE | |||
Maximum borrowing capacity | $ 7.5 | ||
Line of credit | |||
NOTES PAYABLE | |||
Outstanding balance | $ 0 | $ 0 |
SUBORDINATED NOTES (Details)
SUBORDINATED NOTES (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Jul. 31, 2020 | Sep. 30, 2017 | Jun. 30, 2022 | Dec. 31, 2021 | |
SUBORDINATED NOTES | ||||
Outstanding balance | $ 17,500 | $ 17,500 | ||
Subordinated Notes Initiated in September 2017 | ||||
SUBORDINATED NOTES | ||||
Outstanding balance | 11,500 | 11,500 | ||
Maturity term | 10 years | |||
Subordinated Notes Initiated in June 2020 | ||||
SUBORDINATED NOTES | ||||
Outstanding balance | $ 6,000 | $ 6,000 | ||
Maturity term | 10 years | |||
Interest at fixed rate (as a percent) | 5% |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | May 31, 2018 USD ($) |
REGULATORY MATTERS | |||
Threshold amount subject to the Federal Reserve's Small Bank Holding Company Policy Statement | $ 3,000,000 | ||
Standardized Approach | |||
REGULATORY MATTERS | |||
Minimum conservation buffer | 0.025 | 0.025 | |
Company | |||
Total capital (to risk-weighted assets): | |||
Capital | $ 307,585 | $ 297,467 | |
Capital to Risk Weighted Assets | 0.1194 | 0.1244 | |
Tier 1 capital (to risk-weighted assets): | |||
Tier One Risk Based Capital | $ 267,387 | $ 259,652 | |
Tier One Risk Based Capital to Risk Weighted Assets | 0.1038 | 0.1086 | |
Common Equity Tier 1 capital (to risk-weighted assets): | |||
Common Equity Tier One Capital | $ 267,387 | $ 259,652 | |
Common Equity Tier One Capital Ratio | 0.1038 | 0.1086 | |
Tier 1 capital (to average assets): | |||
Tier One Leverage Capital | $ 267,387 | $ 259,652 | |
Tier One Leverage Capital to Average Assets | 0.0860 | 0.0929 | |
Bank | |||
Total capital (to risk-weighted assets): | |||
Capital | $ 301,206 | $ 291,994 | |
Capital to Risk Weighted Assets | 0.1170 | 0.1221 | |
Capital Required for Capital Adequacy | $ 206,018 | $ 191,339 | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 | |
Excess Capital | $ 270,398 | $ 251,133 | |
Excess Capital to Risk Weighted Assets | 0.1050 | 0.1050 | |
Capital Required to be Well Capitalized | $ 257,522 | $ 239,174 | |
Capital Required to be Well Capitalized to Risk Weighted Assets | 0.1000 | 0.1000 | |
Tier 1 capital (to risk-weighted assets): | |||
Tier One Risk Based Capital | $ 278,508 | $ 271,679 | |
Tier One Risk Based Capital to Risk Weighted Assets | 0.1081 | 0.1136 | |
Tier One Risk Based Capital Required for Capital Adequacy | $ 154,513 | $ 143,505 | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 | |
Excess Tier One Risk Based Capital | $ 218,894 | $ 203,298 | |
Excess Tier One Risk Based Capital to Risk Weighted Assets | 0.0850 | 0.0850 | |
Tier One Risk Based Capital Required to be Well Capitalized | $ 206,018 | $ 191,339 | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0800 | 0.0800 | |
Common Equity Tier 1 capital (to risk-weighted assets): | |||
Common Equity Tier One Capital | $ 278,508 | $ 271,679 | |
Common Equity Tier One Capital Ratio | 0.1081 | 0.1136 | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 115,885 | $ 107,628 | |
Common Equity Tier One Capital Required for Capital Adequacy To Risk Weighted Assets | 0.0450 | 0.0450 | |
Excess Common Equity Tier One Capital | $ 180,265 | $ 167,422 | |
Excess Common Equity Tier One Capital to Risk Weighted Assets | 0.0700 | 0.0700 | |
Common Equity Tier One Capital Required to be Well-Capitalized | $ 167,389 | $ 155,463 | |
Common Equity Tier One Capital Required To Be Well Capitalized To Risk Weighted Assets | 0.0650 | 0.0650 | |
Tier 1 capital (to average assets): | |||
Tier One Leverage Capital | $ 278,508 | $ 271,679 | |
Tier One Leverage Capital to Average Assets | 0.0896 | 0.0972 | |
Tier One Leverage Capital Required for Capital Adequacy | $ 124,369 | $ 111,825 | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 0.0400 | 0.0400 | |
Excess Tier One Leverage Capital | $ 124,369 | $ 111,825 | |
Excess Tier One Leverage Capital to Average Assets | 0.0400 | 0.0400 | |
Tier One Leverage Capital Required to be Well Capitalized | $ 155,461 | $ 139,781 | |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 0.0500 | 0.0500 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Interest rate lock commitments | ||
COMMITMENTS AND CONTINGENCIES | ||
Notional amount of derivatives | $ 7,800 | $ 21,900 |
Fixed | ||
COMMITMENTS AND CONTINGENCIES | ||
Commitments outstanding | 80,051 | 90,036 |
Variable | ||
COMMITMENTS AND CONTINGENCIES | ||
Commitments outstanding | 404,533 | 412,095 |
Credit card arrangements | ||
COMMITMENTS AND CONTINGENCIES | ||
Commitments outstanding | 15,618 | 10,916 |
Letters of credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Commitments outstanding | $ 10,726 | $ 9,062 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value of assets measured on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | |||
Mortgage servicing rights | $ 6,977 | $ 5,016 | $ 3,726 |
Recurring | |||
Assets | |||
Mortgage servicing rights | 6,977 | 5,016 | |
Recurring | U.S. Treasury securities | |||
Assets | |||
Securities available for sale | 142,908 | 49,502 | |
Recurring | Obligations of U.S. Government sponsored agencies | |||
Assets | |||
Securities available for sale | 22,657 | 26,546 | |
Recurring | Obligations of states and political subdivisions | |||
Assets | |||
Securities available for sale | 74,746 | 86,738 | |
Recurring | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 30,533 | 27,259 | |
Recurring | Corporate notes | |||
Assets | |||
Securities available for sale | 20,099 | 21,102 | |
Recurring | Certificates of deposit | |||
Assets | |||
Securities available for sale | 1,483 | 1,542 | |
Recurring | Level 2 | |||
Assets | |||
Mortgage servicing rights | 6,977 | 5,016 | |
Recurring | Level 2 | U.S. Treasury securities | |||
Assets | |||
Securities available for sale | 142,908 | 49,502 | |
Recurring | Level 2 | Obligations of U.S. Government sponsored agencies | |||
Assets | |||
Securities available for sale | 22,657 | 26,546 | |
Recurring | Level 2 | Obligations of states and political subdivisions | |||
Assets | |||
Securities available for sale | 74,746 | 86,738 | |
Recurring | Level 2 | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 30,533 | 27,259 | |
Recurring | Level 2 | Corporate notes | |||
Assets | |||
Securities available for sale | 20,099 | 21,102 | |
Recurring | Level 2 | Certificates of deposit | |||
Assets | |||
Securities available for sale | 1,483 | 1,542 | |
Recurring | Level 3 | |||
Assets | |||
Assets at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai_2
FAIR VALUE MEASUREMENTS - Fair value of assets measured on a non-recurring basis (Details) - Non-recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets Measured at Fair Value | ||
OREO | $ 150 | |
Impaired Loans, net of impairment reserve | $ 3,963 | 6,233 |
Total Assets Measured at Fair Value | 6,383 | |
Level 3 | ||
Assets Measured at Fair Value | ||
OREO | 150 | |
Impaired Loans, net of impairment reserve | $ 3,963 | 6,233 |
Total Assets Measured at Fair Value | $ 6,383 |
FAIR VALUE MEASUREMENTS - Fai_3
FAIR VALUE MEASUREMENTS - Fair value measurement on inputs and valuation techniques (Details) - item | Jun. 30, 2022 | Dec. 31, 2021 |
Third party appraisals, sales contracts or brokered price options | Collateral discounts and estimated costs to sell | Minimum | ||
FAIR VALUE MEASUREMENTS | ||
Other real estate owned | 0.18 | |
Third party appraisals, sales contracts or brokered price options | Collateral discounts and estimated costs to sell | Maximum | ||
FAIR VALUE MEASUREMENTS | ||
Other real estate owned | 0.97 | |
Third party appraisals, sales contracts or brokered price options | Collateral discounts and estimated costs to sell | Weighted Average | ||
FAIR VALUE MEASUREMENTS | ||
Other real estate owned | 0.180 | |
Third party appraisals and discounted cash flows | Collateral discounts and discount rates | Minimum | ||
FAIR VALUE MEASUREMENTS | ||
Impaired loans | 0 | 0 |
Third party appraisals and discounted cash flows | Collateral discounts and discount rates | Maximum | ||
FAIR VALUE MEASUREMENTS | ||
Impaired loans | 0.61 | 1 |
Third party appraisals and discounted cash flows | Collateral discounts and discount rates | Weighted Average | ||
FAIR VALUE MEASUREMENTS | ||
Impaired loans | 0.192 | 0.074 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying value and estimated fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | |||
Securities held to maturity, fair value | $ 33,304 | $ 5,922 | |
Securities available for sale | 292,426 | 212,689 | |
Mortgage servicing rights | 6,977 | 5,016 | $ 3,726 |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 43,985 | 296,860 | |
Securities held to maturity, fair value | 33,867 | 5,911 | |
Securities available for sale | 292,426 | 212,689 | |
Loans held for sale | 742 | 786 | |
Loans, net | 2,364,919 | 2,215,199 | |
Other investments, at cost | 19,564 | 9,004 | |
Mortgage servicing rights | 6,977 | 5,016 | |
Cash surrender value of life insurance | 32,275 | 31,897 | |
Financial liabilities: | |||
Deposits | 2,601,477 | 2,528,440 | |
Securities sold under repurchase agreements | 16,125 | 41,122 | |
Notes Payable | 1,735 | 8,011 | |
Subordinated notes | 17,500 | 17,500 | |
Carrying Amount | Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 43,985 | 296,860 | |
Cash surrender value of life insurance | 32,275 | 31,897 | |
Carrying Amount | Level 2 | |||
Financial assets: | |||
Securities held to maturity, fair value | 33,304 | 5,922 | |
Securities available for sale | 292,426 | 212,689 | |
Mortgage servicing rights | 6,977 | 5,016 | |
Financial liabilities: | |||
Securities sold under repurchase agreements | 16,125 | 41,122 | |
Notes Payable | 1,735 | 8,011 | |
Subordinated notes | 17,500 | 17,500 | |
Carrying Amount | Level 3 | |||
Financial assets: | |||
Loans held for sale | 742 | 786 | |
Loans, net | 2,310,193 | 2,210,593 | |
Other investments, at cost | 19,564 | 9,004 | |
Financial liabilities: | |||
Deposits | 2,353,298 | 2,457,287 | |
Estimated Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 43,985 | 296,860 | |
Securities held to maturity, fair value | 33,304 | 5,922 | |
Securities available for sale | 292,426 | 212,689 | |
Loans held for sale | 742 | 786 | |
Loans, net | 2,310,193 | 2,210,593 | |
Other investments, at cost | 19,564 | 9,004 | |
Mortgage servicing rights | 6,977 | 5,016 | |
Cash surrender value of life insurance | 32,275 | 31,897 | |
Financial liabilities: | |||
Deposits | 2,353,298 | 2,457,287 | |
Securities sold under repurchase agreements | 16,125 | 41,122 | |
Notes Payable | 1,735 | 8,011 | |
Subordinated notes | $ 17,500 | $ 17,500 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Plans (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
STOCK BASED COMPENSATION | ||
Compensation expense | $ 0.8 | $ 0.7 |
Restricted Stock | ||
STOCK BASED COMPENSATION | ||
Unrecognized compensation cost | $ 3 | |
Unrecognized compensation recognition period | 2 years | |
Aggregate grant date fair value of vested awards | $ 1.3 | |
2020 Equity Plan | ||
STOCK BASED COMPENSATION | ||
Number of shares authorized | 700,000 | |
Aggregate number of shares awarded under the plan | 50,867 |
STOCK BASED COMPENSATION - Chan
STOCK BASED COMPENSATION - Changes in Restricted Stock (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Restricted Stock, Shares | ||
Outstanding at beginning of year | 58,611 | 57,175 |
Granted | 25,451 | 25,416 |
Vested | (20,785) | (21,755) |
Forfeited or cancelled | (4,005) | (1,105) |
Outstanding at end of year | 59,272 | 59,731 |
Restricted Stock, Weighted- Average Grant- Date Fair Value | ||
Outstanding at beginning of year | $ 61.44 | $ 53.08 |
Granted | 69.73 | 70.67 |
Vested | 60.52 | 50.15 |
Forfeited or cancelled | 60.50 | 62.23 |
Outstanding at end of year | $ 65.85 | $ 61.46 |
LEASES - Operating leases (Deta
LEASES - Operating leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
LEASES | ||
Amortization of ROU Assets - Operating Leases | $ 7 | |
Interest on Lease Liabilities - Operating Leases | $ 43 | 44 |
Operating Lease Cost (Cost resulting from lease payments) | $ 43 | $ 51 |
Weighted Average Lease Term (Years) - Operating Leases | 31 years 6 months | 32 years 5 months 1 day |
Weighted Average Discount Rate - Operating Leases | 5.50% | 5.50% |
LEASES - Maturity analysis (Det
LEASES - Maturity analysis (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Operating lease payments due: | |
Within one year | $ 86 |
After one but within two years | 86 |
After two but within three years | 86 |
After three but within four years | 89 |
After four years but within five years | 94 |
After five years | 3,184 |
Total undiscounted cash flows | 3,625 |
Discount on cash flows | (2,044) |
Total operating lease liabilities | $ 1,581 |