Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 27, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | Bank7 Corp. | ||
Entity Central Index Key | 0001746129 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 69,001,500 | ||
Entity Common Stock, Shares Outstanding | 9,264,412 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Address, State or Province | OK |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 117,128 | $ 128,090 |
Interest-bearing time deposits in other banks | 30,147 | 31,759 |
Loans, net of allowance for loan losses of $7,846 and $7,832 at December 31, 2019 and 2018, respectively | 699,458 | 592,078 |
Loans held for sale | 1,031 | 512 |
Premises and equipment, net | 9,624 | 7,753 |
Nonmarketable equity securities | 1,100 | 1,055 |
Foreclosed assets held for sale | 0 | 110 |
Goodwill and intangibles | 1,789 | 1,995 |
Interest receivable and other assets | 6,115 | 7,159 |
Total assets | 866,392 | 770,511 |
Deposits | ||
Noninterest-bearing | 219,221 | 201,159 |
Interest-bearing | 538,262 | 474,744 |
Total deposits | 757,483 | 675,903 |
Income taxes payable | 357 | 1,913 |
Interest payable and other liabilities | 8,426 | 4,229 |
Total liabilities | 766,266 | 682,045 |
Shareholders' equity | ||
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock | 101 | 102 |
Additional paid-in capital | 92,391 | 80,275 |
Retained earnings | 7,634 | 8,089 |
Total shareholders' equity | 100,126 | 88,466 |
Total liabilities and shareholders' equity | 866,392 | 770,511 |
Non-voting Common Stock [Member] | ||
Shareholders' equity | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Allowance for loan losses | $ 7,846 | $ 7,832 |
Shareholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 10,057,506 | 10,187,500 |
Common stock, shares outstanding (in shares) | 10,057,506 | 10,187,500 |
Non-voting Common Stock [Member] | ||
Shareholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income | |||
Loans, including fees | $ 48,200 | $ 44,279 | $ 41,450 |
Interest-bearing time deposits in other banks | 1,709 | 588 | 592 |
Interest-bearing deposits in other banks | 1,800 | 1,933 | 828 |
Total interest income | 51,709 | 46,800 | 42,870 |
Interest Expense | |||
Deposits | 9,516 | 6,994 | 4,502 |
Other borrowings | 0 | 175 | 237 |
Total interest expense | 9,516 | 7,169 | 4,739 |
Net Interest Income | 42,193 | 39,631 | 38,131 |
Provision for Loan Losses | 0 | 200 | 1,246 |
Net Interest Income After Provision for Loan Losses | 42,193 | 39,431 | 36,885 |
Noninterest Income | |||
Secondary market income | 164 | 212 | 183 |
Service charges on deposit accounts | 392 | 347 | 336 |
Other | 752 | 772 | 916 |
Total noninterest income | 1,308 | 1,331 | 1,435 |
Noninterest Expense | |||
Salaries and employee benefits | 21,265 | 8,113 | 7,611 |
Furniture and equipment | 829 | 684 | 831 |
Occupancy | 1,677 | 1,310 | 1,049 |
Data and item processing | 1,078 | 966 | 891 |
Accounting, marketing and legal fees | 757 | 305 | 284 |
Regulatory assessments | 126 | 542 | 450 |
Advertising and public relations | 588 | 553 | 433 |
Travel, lodging and entertainment | 368 | 699 | 1,041 |
Other | 1,744 | 1,793 | 1,941 |
Total noninterest expense | 28,432 | 14,965 | 14,531 |
Income Before Taxes | 15,069 | 25,797 | 23,789 |
Income tax expense | 6,844 | 797 | 0 |
Net Income | $ 8,225 | $ 25,000 | $ 23,789 |
Earnings per common share - basic (in dollars per share) | $ 0.81 | $ 3.08 | $ 3.26 |
Earnings per common share - diluted (in dollars per share) | $ 0.81 | $ 3.03 | $ 3.26 |
Weighted average common shares outstanding - basic (in shares) | 10,145,032 | 8,105,856 | 7,287,500 |
Weighted average common shares outstanding - diluted (in shares) | 10,147,311 | 8,237,638 | 7,287,500 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2016 | 7,287,500 | |||
Balance at Dec. 31, 2016 | $ 73 | $ 6,987 | $ 48,076 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 23,789 | $ 23,789 | ||
Capital contribution | 0 | |||
Common stock issued, net of offering costs (in shares) | 0 | |||
Common stock issued, net of offering costs | $ 0 | 0 | ||
Reclassification of undistributed S Corporation earnings | 0 | 0 | ||
Shares issued for restricted stock units (in shares) | 0 | |||
Shares acquired and canceled (in shares) | 0 | |||
Shares acquired and canceled | $ 0 | 0 | ||
Stock-based compensation expense | 0 | |||
Cash dividends declared ($0.60, $7.71, $1.34 per share) | (9,749) | |||
Balance (in shares) at Dec. 31, 2017 | 7,287,500 | |||
Balance at Dec. 31, 2017 | $ 73 | 6,987 | 62,116 | 69,176 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 25,000 | 25,000 | ||
Capital contribution | 137 | |||
Common stock issued, net of offering costs (in shares) | 2,900,000 | |||
Common stock issued, net of offering costs | $ 29 | 50,125 | ||
Reclassification of undistributed S Corporation earnings | 22,872 | (22,872) | ||
Shares issued for restricted stock units (in shares) | 0 | |||
Shares acquired and canceled (in shares) | 0 | |||
Shares acquired and canceled | $ 0 | 0 | ||
Stock-based compensation expense | 154 | |||
Cash dividends declared ($0.60, $7.71, $1.34 per share) | (56,155) | |||
Balance (in shares) at Dec. 31, 2018 | 10,187,500 | |||
Balance at Dec. 31, 2018 | $ 102 | 80,275 | 8,089 | 88,466 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 8,225 | 8,225 | ||
Capital contribution | 0 | |||
Common stock issued, net of offering costs (in shares) | 0 | |||
Common stock issued, net of offering costs | $ 0 | 0 | ||
Reclassification of undistributed S Corporation earnings | 0 | 0 | ||
Shares issued for restricted stock units (in shares) | 19,431 | |||
Shares acquired and canceled (in shares) | (149,425) | |||
Shares acquired and canceled | $ (1) | (2,645) | ||
Stock-based compensation expense | 12,116 | |||
Cash dividends declared ($0.60, $7.71, $1.34 per share) | (6,035) | |||
Balance (in shares) at Dec. 31, 2019 | 10,057,506 | |||
Balance at Dec. 31, 2019 | $ 101 | $ 92,391 | $ 7,634 | $ 100,126 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Shareholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 0.60 | $ 7.71 | $ 1.34 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating Activities | |||
Net income | $ 8,225 | $ 25,000 | $ 23,789 |
Items not requiring (providing) cash | |||
Depreciation and amortization | 849 | 1,097 | 1,088 |
Provision for loan losses | 0 | 200 | 1,246 |
Net increase on other real estate owned | 0 | (10) | 0 |
Gain on sales of loans | (164) | (212) | (183) |
Stock-based compensation expense | 12,116 | 154 | 0 |
Loss on sale of premises and equipment | 183 | 0 | 0 |
Cash receipts from the sale of loans originated for sale | 7,697 | 8,185 | 9,060 |
Cash disbursements for loans originated for sale | (8,052) | (8,097) | (9,108) |
(Gain) loss on sale of other real estate owned | (330) | 3 | 92 |
Deferred income tax benefit | (20) | (1,069) | 0 |
Changes in | |||
Interest receivable and other assets | 1,064 | (1,405) | (415) |
Interest payable and other liabilities | (2,388) | 3,155 | 308 |
Net cash provided by operating activities | 19,180 | 27,001 | 25,877 |
Investing Activities | |||
Maturities of interest-bearing time deposits in other banks | 18,583 | 3,884 | 1,743 |
Purchases of interest-bearing time deposits in other banks | (16,971) | (5,475) | (2,490) |
Net change in loans | (107,458) | (36,981) | (61,668) |
Purchases of premises and equipment | (3,100) | (378) | (3,969) |
Proceeds from sale of premises and equipment | 403 | 1,336 | 0 |
Purchase of nonmarketable equity securities | (45) | (6) | (6) |
Proceeds from sale of foreclosed assets | 518 | 47 | 597 |
Net cash used in investing activities | (108,070) | (37,573) | (65,793) |
Financing Activities | |||
Net change in deposits | 81,580 | 50,072 | 76,275 |
Repayment of borrowed funds | 0 | (5,600) | (800) |
Cash distributions | (1,006) | (56,155) | (9,749) |
Capital injection | 0 | 137 | 0 |
Common stock acquired and canceled | (2,646) | 0 | 0 |
Net change in common stock | 0 | 50,154 | 0 |
Net cash provided by financing activities | 77,928 | 38,608 | 65,726 |
(Decrease) Increase in Cash and Due from Banks | (10,962) | 28,036 | 25,810 |
Cash and Due from Banks, Beginning of Year | 128,090 | 100,054 | 74,244 |
Cash and Due from Banks, End of Year | 117,128 | 128,090 | 100,054 |
Supplemental Disclosure of Cash Flows Information | |||
Interest paid | 9,342 | 7,304 | 4,739 |
Income taxes paid | 6,779 | 0 | 0 |
Dividends declared and not paid | 5,029 | 0 | 0 |
Non-cash stock contribution | 11,627 | 0 | 0 |
Foreclosed assets acquired in settlement of loans | $ 78 | $ 50 | $ 684 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1: Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Bank7 Corp. (the “Company”), formerly known as Haines Financial Corp, is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, Bank 7 (the “Bank”). The Bank is primarily engaged in providing a full range of banking and financial services to individual and corporate customers located in Oklahoma, Kansas, and Texas. The Bank is subject to competition from other financial institutions. The Company is subject to the regulation of certain federal agencies and undergoes periodic examinations by those regulatory authorities. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank and its subsidiary, 1039 NW 63 rd Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of other real estate owned, other-than-temporary impairments, income taxes, goodwill and intangibles and fair values of financial instruments. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Interest-Bearing Time Deposits in Other Banks Interest-bearing time deposits in other banks totaled $30.1 million and $31.8 million at December 31, 2019 and December 31, 2018, respectively, and have original maturities generally ranging from one to five years. Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held-to-maturity or trading, including equity securities with readily determinable fair values, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Company had no “available-for-sale” or held to maturity investments as of December 31, 2019 and 2018. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon the sale of the loan. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay and estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows or collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers nonimpaired loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral-dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is charged to operating expense and is computed using the straight-line method over the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred while improvements are capitalized. Premises and equipment is tested for impairment if events or changes in circumstances occur that indicate that the carrying amount of any premises and equipment may not be recoverable. Premises that are identified to be sold are transferred to other real estate owned at the lower of their carrying amounts or their fair values less estimated costs to sell. Any losses on premises identified to be sold are charged to operating expense. When premises and equipment are transferred to other real estate owned, sold, or otherwise retired, the cost and applicable accumulated depreciation are removed from the respective accounts and any resulting gains or losses are reported in the statement of income. Non-Marketable Equity Securities Non-marketable equity securities consist primarily of Federal Home Loan Bank of Topeka (FHLB) stock and Federal Reserve Bank of Kansas City stock and are required investments for financial institutions that are members of the FHLB and Federal Reserve systems. The required investment in common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Long-Lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows is expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the years ended December 31, 2019, 2018, and 2017. Foreclosed Assets Held for Sale Foreclosed assets held for sale consist of assets acquired through, or in lieu of, loan foreclosure and are initially recorded at fair value, less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount of fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in current operations. Goodwill and Intangible Assets Goodwill is tested annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the accompanying consolidated financial statements. Other intangible assets consist of core deposit intangible assets and are amortized on a straight-line basis based on an estimated useful life of 10 years. Such assets are periodically evaluated as to the recoverability of their carrying values. Segments While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Income Taxes Prior to September 24, 2018, the Company had elected to be taxed as an S Corporation for federal and state income tax purposes. As such, stockholders were taxed on their pro rata share of earnings and deductions of the Company, regardless of the amount of distributions received. Generally, the Company was not subject to federal income tax. Effective September 24, 2018, the Company converted from an S Corporation to a C Corporation and is subject to federal and state taxes at that date. The Company uses a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is ‘‘more likely than not’’ that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2019, 2018 and 2017, the Company recognized no interest and penalties. Revenue Recognition In addition to lending and related activities, the Company offers various services to customers that generate revenue. Contract performance typically occurs in one year or less. Incremental costs of obtaining a contract are expensed when incurred when the amortization period is one year or less. Service and transaction fees on depository accounts Customers often pay certain fees to the bank to access the cash on deposit including certain non-transactional fees such as account maintenance or dormancy fees, and certain transaction based fees such as ATM, wire transfer, or foreign exchange fees. Revenue is recognized when the transactions occur or as services are performed over primarily monthly or quarterly periods. Payment is typically received in the period the transactions occur, or in some cases, within 90 days of the service period. Interchange Fees Interchange fees, or “swipe” fees, are charges that merchants pay to the processors who, in turn, share that revenue with us and other card-issuing banks for processing electronic payment transactions. Interchange fees represent the portion of the debit card transaction amount that the card issuer retains to compensate it for processing transactions and providing rewards. Interchange fees are settled and recognized on a daily or monthly basis. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, and establishes a new control-based revenue recognition model for revenue from contracts with customers. The revenue line items in scope of this ASU have been identified and final assessment is pending; however, the majority of the Company’s financial instruments are not within the scope of Topic 606. Material revenue streams within the scope of Topic 606 include service charges on deposits. The guidance in the ASU is effective for annual reporting periods beginning after December 15, 2018. ASU 2014-09 was adopted for the annual period ending December 31, 2019 and did not have a significant impact on the Company’s financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires certain equity investments to be measured at fair value with changes recognized in net income. It also requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purpose and eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value disclosed for financial instruments measured at amortized cost. The guidance in the ASU is effective for annual reporting periods beginning after December 15, 2018. ASU 2016-01 was adopted for the annual period ending December 31, 2019 and did not have a significant impact on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU requires lessees to recognize a lease liability and a right-of-use asset for all leases, excluding short-term leases, at the commencement date. The guidance in the ASU is effective for reporting periods beginning after December 15, 2019. Additionally, a modified retrospective transition approach is required for a leases existing at the earliest comparative period presented. Management is assessing the impact of this ASU; however, it is not expected to have a material impact on the Company’s financial condition, results of operation, or capital position, but will impact the presentation on the balance sheet of the Company’s current operating leases. The Company will adopt this ASU in the first quarter of 2021. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU requires the replacement of the current incurred loss model with an expected loss model, referred to as the current expected credit loss (CECL) model. The guidance in the ASU is effective for reporting periods beginning after December 15, 2021 with a cumulative-effect adjustment to retained earnings required for the first reporting period. Management is still assessing the impact of this ASU. The Company will adopt this ASU in the first quarter of 2023. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU amends existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The guidance in the ASU is effective for reporting periods beginning after December 15, 2021 with prospective application. It is expected that adoption will not have a significant impact on the Company’s financial condition and results of operations. The Company expects to adopt the standard in the first quarter of 2020. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). ASU 2018-13 removes, modifies and adds disclosure requirements on fair value measurements. ASU 2018-13 will be effective for the Company on January 1, 2020. Early adoption is permitted. In addition, early adoption of any removed or modified disclosures and delayed adoption of the additional disclosures until the effective date is also permitted. It is expected that adoption will not have a significant impact on the Company’s financial condition and results of operations. The Company expects to adopt the standard in the first quarter of 2020. |
Change in Capital Structure
Change in Capital Structure | 12 Months Ended |
Dec. 31, 2019 | |
Change in Capital Structure [Abstract] | |
Change in Capital Structure | Note 2: Change in Capital Structure On June 26, 2018, the Company amended and restated its Certificate of Incorporation. The original Certificate of Incorporation was amended to change the name of the Company from Haines Financial Corp to Bank7 Corp. In addition, the amendment changed the capital structure to authorize the issuance of 50,000,000 shares of common stock, par value $0.01 per share (the “Common Stock”), 20,000,000 shares of non-voting common stock, par value $0.01 per share (the “Non-voting Common Stock”), and 1,000,000 shares of preferred stock, par value $0.01 per share (the “Preferred Stock”). The Company completed a 24-to-1 stock split of the Company’s outstanding shares of common stock for shareholders on record as of July 6, 2018. The stock was payable in the form of a dividend on or about July 9, 2018. Shareholders received 24 additional shares for each share held. All share and per share amounts in the consolidated financial statements and related notes have been retroactively adjusted to reflect this stock split for all periods presented. Initial Public Offering On September 20, 2018, the Company completed the initial public offering of its common stock. In connection with the Company’s initial public offering, the Company sold and issued 2,900,000 shares of common stock at $19 per share. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $50.1 million from the initial public offering. In connection with the initial public offering, the Company terminated its S Corporation status and became a taxable entity (“C Corporation”) on September 24, 2018. As such, any periods prior to September 24, 2018 will only reflect an effective state income tax rate. As a result of the termination of S Corporation status, we increased our deferred tax asset and recorded an initial tax benefit of $863,000. The deferred tax asset is the result of timing differences in the recognition of income/deductions for generally accepted accounting principles (“GAAP”) and tax purposes. Net deferred tax assets are included in other assets and no valuation allowance is considered necessary. We or one of our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state tax examinations for years before 2016. |
Restriction on Cash and Due fro
Restriction on Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2019 | |
Restriction on Cash and Due from Banks [Abstract] | |
Restriction on Cash and Due from Banks | Note 3: Restriction on Cash and Due from Banks The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2019 was $18.0 million. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4: Earnings Per Share Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the year. Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income dividend by the weighted average number of commons shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and nonqualified stock options, calculated using the treasury stock method. The following table shows the computation of basic and diluted earnings per share: As of and for the Years ended December 31, 2019 2018 2017 (Dollars in thousands, except per share amounts) Numerator Net income $ 8,225 $ 25,000 $ 23,789 Denominator Denominator for basic earnings per common share 10,145,032 8,105,856 7,287,500 Dilutive effect of stock compensation (1) 2,279 131,782 - Denominator for diluted earnings per share 10,147,311 8,237,638 7,287,500 Earnings per common share Basic $ 0.81 $ 3.08 $ 3.26 Diluted $ 0.81 $ 3.03 $ 3.26 (1) Nonqualified stock options outstanding of 163,000 and 150,000 as of December 31, 2019 and 2018, respectively, have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | Note 5: Loans and Allowance for Loan Losses A summary of loans at December 31, 2019 and 2018, are as follows (dollars in thousands): December 31, 2019 December 31, 2018 Construction & development $ 70,628 $ 87,267 1-4 family commercial 34,160 33,278 Commercial real estate - other 273,278 156,396 Total commercial real estate 378,066 276,941 Commercial & industrial 260,762 248,394 Agricultural 57,945 62,844 Consumer 11,895 13,723 Gross loans 708,668 601,902 Less allowance for loan losses (7,846 ) (7,832 ) Less deferred loan fees (1,364 ) (1,992 ) Net loans $ 699,458 $ 592,078 The following table presents, by portfolio segment, the activity in the allowance for loan losses for the years ended December 31, 2019, 2018, and 2017 (dollars in thousands): Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2019 Balance, beginning of period $ 1,136 $ 433 $ 2,035 $ 3,231 $ 818 $ 179 $ 7,832 Charge-offs - (2 ) - (4 ) (11 ) (1 ) (18 ) Recoveries - 5 - 24 3 - 32 Net charge-offs - 3 - 20 (8 ) (1 ) 14 Provision (credit) for loan losses (354 ) (58 ) 990 (364 ) (168 ) (46 ) - Balance, end of period $ 782 $ 378 $ 3,025 $ 2,887 $ 642 $ 132 $ 7,846 Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2018 Balance, beginning of period $ 1,407 $ 431 $ 1,865 $ 2,779 $ 1,015 $ 157 $ 7,654 Charge-offs - (25 ) - (73 ) - - (98 ) Recoveries - 3 - 71 1 1 76 Net charge-offs - (22 ) - (2 ) 1 1 (22 ) Provision (credit) for loan losses (271 ) 24 170 454 (198 ) 21 200 Balance, end of period $ 1,136 $ 433 $ 2,035 $ 3,231 $ 818 $ 179 $ 7,832 Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2017 Balance, beginning of period $ 1,565 $ 287 $ 1,193 $ 2,523 $ 1,074 $ 231 $ 6,873 Charge-offs - - (224 ) (242 ) - (46 ) (512 ) Recoveries - 23 6 6 - 12 47 Net charge-offs - 23 (218 ) (236 ) - (34 ) (465 ) Provision (credit) for loan losses (158 ) 121 890 492 (59 ) (40 ) 1,246 Balance, end of period $ 1,407 $ 431 $ 1,865 $ 2,779 $ 1,015 $ 157 $ 7,654 The following table presents, by portfolio segment, the balance in allowance for loan losses and the gross loans based upon portfolio segment and impairment method as of December 31, 2019 and 2018 (dollars in thousands): Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2019 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ 26 $ - $ - $ - $ 26 Collectively evaluated for impairment 782 378 2,999 2,887 642 132 7,820 Total $ 782 $ 378 $ 3,025 $ 2,887 $ 642 $ 132 $ 7,846 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 5,841 $ 2,750 $ 2,527 $ - $ 11,118 Collectively evaluated for impairment 70,628 34,160 267,437 258,012 55,418 11,895 697,550 Total $ 70,628 $ 34,160 $ 273,278 $ 260,762 $ 57,945 $ 11,895 $ 708,668 December 31, 2018 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ 32 $ 14 $ - $ - $ 46 Collectively evaluated for impairment 1,136 433 2,003 3,217 818 179 7,786 Total $ 1,136 $ 433 $ 2,035 $ 3,231 $ 818 $ 179 $ 7,832 Gross Loans Ending balance Individually evaluated for impairment $ - $ 115 $ 484 $ 7,381 $ 1,097 $ - $ 9,077 Collectively evaluated for impairment 87,267 33,163 155,912 241,013 61,747 13,723 592,825 Total $ 87,267 $ 33,278 $ 156,396 $ 248,394 $ 62,844 $ 13,723 $ 601,902 Internal Risk Categories Certain loan segments were reclassified during 2018. Each loan segment is made up of loan categories possessing similar risk characteristics. The Company’s re-alignment of the segments primarily consisted of reclassifying consumer-related and agricultural-related real estate loans from the real estate category to the consumer and agricultural categories, respectively. Management believes this accurately represents the risk profile of each loan segment. In addition, the real estate segment was renamed to commercial real estate, and the commercial segment was renamed to commercial & industrial. The prior period amounts have been revised to conform to the current period presentation. These reclassifications did not have a significant impact on the allowance for loan losses. Risk characteristics applicable to each segment of the loan portfolio are described as follows: Real Estate Commercial & Industrial Agricultural Consumer Loan grades are numbered 1 through 4. Grade 1 is considered satisfactory. The grades of 2 and 3, or Watch and Special Mention, respectively, represent loans of lower quality and are considered criticized. Grade of 4, or Substandard, refers to loans that are classified. • Grade 1 (Pass) • Grade 2 (Watch) • Grade 3 (Special Mention) • Grade 4 (Substandard) The Company evaluates the definitions of loan grades and the allowance for loan losses methodology on an ongoing basis. No changes were made to either during the period ended December 31, 2019. The following table presents the credit risk profile of the Company’s loan portfolio based on internal rating category as of December 31, 2019 and 2018 (dollars in thousands): Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2019 Grade 1 (Pass) $ 70,628 $ 33,622 $ 267,437 $ 241,176 $ 53,290 $ 11,895 $ 678,048 2 (Watch) - 538 - 5,312 - - 5,850 3 (Special Mention) - - - 11,524 2,128 - 13,652 4 (Substandard) - - 5,841 2,750 2,527 - 11,118 Total $ 70,628 $ 34,160 $ 273,278 $ 260,762 $ 57,945 $ 11,895 $ 708,668 Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2018 Grade 1 (Pass) $ 84,485 $ 29,942 $ 154,353 $ 204,671 $ 57,782 $ 13,723 $ 544,956 2 (Watch) 2,782 3,221 1,559 36,342 758 - 44,662 3 (Special Mention) - - - - 3,207 - 3,207 4 (Substandard) - 115 484 7,381 1,097 - 9,077 Total $ 87,267 $ 33,278 $ 156,396 $ 248,394 $ 62,844 $ 13,723 $ 601,902 The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2019 and 2018 (dollars in thousands): Past Due 30–59 Days 60–89 Days Greater than 90 Days Total Current Total Loans Total Loans > 90 Days & Accruing December 31, 2019 Construction & development $ - $ - $ - $ - $ 70,628 $ 70,628 $ - 1 - 4 Family Real Estate - - - - 34,160 34,160 - Commercial Real Estate - other - - - - 273,278 273,278 - Commercial & industrial - - 14 14 260,748 260,762 14 Agricultural - - 598 598 57,347 57,945 598 Consumer 90 - - 90 11,805 11,895 - Total $ 90 $ - $ 612 $ 702 $ 707,966 $ 708,668 $ 612 December 31, 2018 Construction & development $ - $ - $ - $ - $ 87,267 $ 87,267 $ - 1 - 4 Family Real Estate 8 - - 8 33,270 33,278 - Commercial Real Estate - other - - - - 156,396 156,396 - Commercial & industrial - 5 - 5 248,389 248,394 - Agricultural - - - - 62,844 62,844 - Consumer 41 - - 41 13,682 13,723 - Total $ 49 $ 5 $ - $ 54 $ 601,848 $ 601,902 $ - The following table presents impaired loans as of December 31, 2019 and 2018 (dollars in thousands): Unpaid Principal Balance Recorded Investment with No Allowance Recorded Investment with an Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2019 Construction & development $ - $ - $ - $ - $ - $ - $ - 1 - 4 Family Real Estate - - - - - 208 - Commercial Real Estate - other 5,841 4,032 1,809 5,841 26 2,557 440 Commercial & industrial 2,750 2,750 - 2,750 - 5,495 281 Agricultural 2,527 1,744 - 1,744 - 2,238 174 Consumer - - - - - 98 - Total $ 11,118 $ 8,526 $ 1,809 $ 10,335 $ 26 $ 10,596 $ 895 December 31, 2018 Construction & development $ - $ - $ - $ - $ - $ - $ - 1 - 4 Family Real Estate 115 115 - 115 - 82 4 Commercial Real Estate - other 1,990 1,506 484 1,990 32 440 148 Commercial & industrial 7,614 7,359 22 7,381 14 7,049 560 Agricultural 1,097 1,097 - 1,097 - 1,313 82 Consumer 5 - - - - 28 1 Total $ 10,821 $ 10,077 $ 506 $ 10,583 $ 46 $ 8,912 $ 795 Impaired loans include nonperforming loans and also include loans modified in troubled-debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Included in certain loan categories in the impaired loans are troubled debt restructurings that were classified as impaired. At December 31, 2019, the Company had $2,721,000 of commercial real estate loans that were modified in troubled-debt restructurings and impaired and $501,000 in commercial loan modifications as of December 31, 2018. There were $2.7 million in newly modified troubled-debt restructurings during the There were no troubled-debt restructurings modified in the past twelve months that subsequently defaulted for the year ended December 31, 2019. The following table represents information regarding nonperforming assets at December 31, 2019 and 2018 (dollars in thousands): As of December 31, 2019 2018 Nonaccrual loans $ 1,809 $ 2,615 Troubled-debt restructurings (1) 912 - Accruing loans 90 or more days past due 612 - Total nonperforming loans $ 3,333 $ 2,615 (1) $1.81 million and $501,000 of TDRs as of December 31, 2019 and December 31, 2018, respectively, are included in the nonaccrual loans balance in the line above. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 6: Premises and Equipment Major classifications of premises and equipment, stated at cost and net of accumulated depreciation are as follows (dollars in thousands): December 31, 2019 December 31, 2018 Land, buildings and improvements $ 9,942 $ 8,414 Furniture and equipment 2,117 1,654 Automobiles 760 722 12,819 10,790 Less accumulated depreciation (3,195 ) (3,037 ) Net premises and equipment $ 9,624 $ 7,753 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Intangible Assets | Note 7: Intangible Assets The gross carrying amount and accumulated amortization of recognized intangible assets at December 31, 2019 and 2018, were (dollars in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Core deposit intangible $ 2,061 $ (1,283 ) $ 2,061 $ (1,077 ) Amortization expense for intangible assets totaled $206,000 for the years ended December 31, 2019, 2018, and 2017. Estimated amortization expense for each of the following four years is as follows (dollars in thousands): 2020 $ 206 2021 206 2022 206 2023 160 $ 778 |
Interest-Bearing Deposits
Interest-Bearing Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Interest-Bearing Deposits [Abstract] | |
Interest-Bearing Deposits | Note 8: Interest-Bearing Deposits Interest-bearing time deposits in denominations of $250,000 or more were $57.0 million and $58.2 million at December 31, 2019 and 2018, respectively. At December 31, 2019, the scheduled maturities of interest-bearing time deposits were as follows (dollars in thousands): 2020 $ 156,283 2021 34,775 2022 9,535 2023 1,945 $ 202,538 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 9: Income Taxes In connection with the initial public offering, as discussed in Note 2, the Company terminated its S Corporation status and became a taxable entity (“C Corporation”) effective September 24, 2018. As such, any periods prior to September 24, 2018 will only reflect an effective state income tax rate. The (benefit)/provision for income taxes for the years ended December 31, 2019 and 2018 consists of the following (dollars in thousands): Year Ended December 31, 2019 2018 Federal: Current $ 5,516 $ 1,563 Deferred - (1,036 ) Total federal tax provision $ 5,516 $ 527 State: Current $ 1,308 $ 303 Deferred 20 (33 ) Total state tax provision $ 1,328 $ 270 Total income tax provision $ 6,844 $ 797 The provision for income taxes for the years ended December 31, 2019 and 2018 differs from the federal rate of 21% due to the following: Year Ended December 31, 2019 2018 Statutory U.S. Federal Income Tax $ 3,160 $ 5,417 Increase (decrease) resulting from: State Taxes 1,048 213 Benefit of S corporation status - (3,933 ) Permanent Differences 2,327 - Conversion as of September 24, 2018 to C corporation - (863 ) Other 309 (37 ) Provision for income taxes $ 6,844 $ 797 Deferred tax assets (liabilities) included in other assets in the accompanying consolidated balance sheet consist of the following: Year Ended December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 1,918 $ 1,942 Non-accrual loans 60 - Deferred revenue 165 - Other - 80 Deferred compensation 78 38 Total deferred tax assets $ 2,221 $ 2,060 Deferred tax liabilities: Property and equipment $ (320 ) $ (268 ) Intangible assets (202 ) (220 ) Prepaid expenses (122 ) (177 ) Method change IRC 481(a) (476 ) (254 ) Other (12 ) (72 ) Total deferred tax liabilities $ (1,132 ) $ (991 ) Net deferred tax assets $ 1,089 $ 1,069 In assessing the Company’s ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize all benefits related to these deductible differences as of December 31, 2019. The Company does not have any net operating loss or tax credit carryforwards as of December 31, 2019. The Company is not presently under examination by the Internal Revenue Service or any state tax authority. The Company establishes reserves for uncertain tax positions that reflect management’s best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. Recognized income tax positions are measured at the largest amount that is considered greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands): For the Year Ended December 31, 2019 2018 Balance at beginning of year $ 13 $ - Additions for positions taken in prior years - 15 Reductions for positions taken in prior years - (2 ) Balance at end of year $ 13 $ 13 There were no interest or penalties related to uncertain tax positions reflected in the consolidated statements of income for the years ended December 31, 2019 and 2018. |
Letters of Credit
Letters of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Letters of Credit [Abstract] | |
Letters of Credit | Note 10: Letters of Credit The Bank has entered into an arrangement with the FHLB resulting in the FHLB issuing letters of credit on behalf of the Bank with the resulting beneficiary being certain public funds in connection with these deposits. Outstanding letters of credit to secure these public funds at December 31, 2019 and 2018 were $1.3 million and $1.5 million, respectively. Loans with a collateral value of approximately $73.0 million were used to secure the letters of credit. |
Advances and Borrowings
Advances and Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Advances and Borrowings [Abstract] | |
Advances and Borrowings | Note 11: Advances and Borrowings The Bank has a blanket floating lien security agreement with a maximum borrowing capacity of $71.7 million at December 31, 2019, with the FHLB, under which the Bank is required to maintain collateral for any advances, including its stock in the FHLB, as well as qualifying first mortgage and other loans. The Bank had no advances from the FHLB at December 31, 2019 or 2018. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 12: Shareholders’ Equity On September 5, 2019, the Company adopted a Repurchase Plan (the “RP”). The RP authorizes the repurchase of up to 500,000 shares of the Company’s common stock. To date the Company has made no repurchases under the RP. Stock repurchases under the RP will take place pursuant to a Rule 10b5-1 Plan with pricing and purchasing parameters established by management. A summary of the activity under the RP is as follows: Year Ended December 31, 2019 2018 Number of shares repurchased - - Average price of shares repurchased $ - $ - Shares remaining to be repurchased 500,000 - The Company and Bank are subject to risk-based capital guidelines issued by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under GAAP, regulatory reporting requirements and regulatory capital standards. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s and the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier I, and Common Equity capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2019, that the Company and Bank meet all capital adequacy requirements to which it is subject and maintains capital conservation buffers that allow the Company and Bank to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to certain executive officers. As of December 31, 2019, the most recent notification from the Federal Deposit Insurance Corporation (FDIC) categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Company’s and Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands): Actual Minimum Capital Requirements With Capital Conservation Buffer Minimum Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Total capital to risk-weighted assets Company $ 105,137 15.25 % $ 55,157 8.00 % $ 72,393 10.50 % N/A N/A Bank $ 106,148 15.42 % $ 55,076 8.00 % $ 72,287 10.50 % $ 68,845 10.00 % Tier I capital to risk-weighted assets Company $ 97,291 14.11 % $ 41,368 6.00 % $ 58,604 8.50 % N/A N/A Bank $ 98,302 14.28 % $ 41,307 6.00 % $ 58,518 8.50 % $ 55,076 8.00 % CET I capital to risk-weighted assets Company $ 97,291 14.11 % $ 31,026 4.50 % $ 48,262 7.00 % N/A N/A Bank $ 98,302 14.28 % $ 30,980 4.50 % $ 48,192 7.00 % $ 44,749 6.50 % Tier I capital to average assets Company $ 97,291 11.53 % $ 33,833 4.00 % N/A N/A N/A N/A Bank $ 98,302 11.65 % $ 33,793 4.00 % N/A N/A $ 42,241 5.00 % As of December 31, 2018 Total capital to risk-weighted assets Company $ 92,693 15.86 % $ 46,751 8.00 % $ 57,709 9.875 % N/A N/A Bank $ 93,704 16.03 % $ 46,751 8.00 % $ 57,709 9.875 % $ 58,439 10.00 % Tier I capital to risk-weighted assets Company $ 85,382 14.61 % $ 35,063 6.00 % $ 46,021 7.875 % N/A N/A Bank $ 86,393 14.78 % $ 35,063 6.00 % $ 46,021 7.875 % $ 46,751 8.00 % CET I capital to risk-weighted assets Company $ 85,382 14.61 % $ 26,298 4.50 % $ 37,255 6.375 % N/A N/A Bank $ 86,393 14.78 % $ 26,298 4.50 % $ 37,255 6.375 % $ 37,985 6.50 % Tier I capital to average assets Company $ 85,382 11.13 % $ 30,684 4.00 % N/A N/A N/A N/A Bank $ 86,393 11.26 % $ 30,684 4.00 % N/A N/A $ 38,355 5.00 % In July 2013, the federal regulatory authorities issued a new capital rule based, in part, on revisions developed by the Basel Committee on Banking Supervision to the Basel capital framework (Basel III). The Bank became subject to the new rule effective January 1, 2015. Generally, the new rule implements higher minimum capital requirements, revises the definition of regulatory capital components and related calculations, adds a new common equity tier 1 capital ratio, implements a new capital conservation buffer, increases the risk weighting for past due loans and provides a transition period for several aspects of the new rule. In addition, banks with less than $250 billion in assets were given a one-time opt-out election under Basel III Capital Rules to filter from regulatory capital certain accumulated other comprehensive income (AOCI) components. The Bank made the opt-out election and excludes the AOCI components from the capital ratio computations. The current (new) capital rule provides that, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer composed of common equity tier 1 capital above its minimum risk-based capital requirements. The buffer is measured relative to risk-weighted assets. As fully phased in, a banking organization with a buffer greater than 2.5% would not be subject to additional limits on dividend payments or discretionary bonus payments; however, a banking organization with a buffer less than 2.5% would be subject to increasingly stringent limitations as the buffer approaches zero. The new rule also prohibits a banking organization from making dividend payments or discretionary bonus payments if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5% as the beginning of that quarter. Eligible net income is defined as net income for the four calendar quarters preceding the current calendar quarter, net of any distributions and associated tax effects not already reflected in net income. A summary of payout restrictions based on the capital conservation buffer is as follows: Capital Conservation Buffer (as a % of risk-weighted assets) Maximum Payout (as a % of eligible retained income) Greater than 2.5% No payout limitations applies ≤2.5% and >1.875% 60 % ≤1.875% and >1.25% 40 % ≤1.25% and >0.625% 20 % ≤0.625% 0 % The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2019, approximately $34.6 million of retained earnings was available for dividend declaration from the Bank without prior regulatory approval. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | Note 13: Related-Party Transactions At December 31, 2019 and 2018, the Company had loans outstanding to executive officers, directors, significant shareholders and their affiliates (related parties) approximating $1.1 million and $6.9 million, respectively. A summary of these loans is as follows (dollars in thousands): Balance Beginning of the Period Additions Collections/ Terminations Balance End of the Period Year ended December 31, 2019 $ 6,897 $ 2,613 $ (8,455 ) $ 1,055 Year ended December 31, 2018 $ 6,684 $ 7,319 $ (7,106 ) $ 6,897 In management’s opinion, such loans and other extensions of credit and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than normal risk of collectability or present other unfavorable features. The Bank leases office and retail banking space in Woodward, Oklahoma from Haines Realty Investments Company, LLC, a related party of the Company. Lease expense totaled $184,000 for the years ended December 31, 2019, 2018, and 2017. In addition, payroll and office sharing arrangements were in place between the Company and certain of its affiliates. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 14: Employee Benefits 401(k) Savings Plan The Company has a retirement savings 401(k) plan covering substantially all employees. Employees may contribute up to the maximum legal limit with the Bank matching up to 5% of the employee’s salary. Employer contributions charged to expense for the years ended December 31, 2019, 2018, and 2017 totaled $223,000, $198,000 and $178,000, respectively. Stock-Based Compensation The Company adopted a nonqualified incentive stock option plan (the “Bank7 Corp. 2018 Equity Incentive Plan”) in September 2018. The Bank7 Corp. 2018 Equity Incentive Plan will terminate in September 2028, if not extended. Compensation expense related to the Plan for the years ended December 31, 2019 and 2018 totaled $628,000 and $154,000 respectively. On September 5, 2019, the Company’s largest shareholders, the Haines Family Trusts, contributed approximately 6.5% of their shares (656,925 shares) to the Company. Subsequently, the Company immediately issued those shares to certain executive officers, which was charged as compensation expense of $11.8 million, including payroll taxes, through the income statement of the Company. Additionally, at the discretion of the employees receiving shares to assist in paying tax withholdings, 149,425 shares were withheld and subsequently canceled, resulting in a charge to retained earnings of $2.6 million. In connection with its IPO in September 2018, the Company granted to employees restricted stock units (RSUs) which vest ratably over five years and stock options which vest ratably over four years. All RSUs and stock options were granted at the fair value of the common stock at the time of the award. The RSUs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. The Company uses newly issued shares for granting RSUs and stock options. The following table is a summary of the stock option activity under the Bank7 Corp. 2018 Equity Incentive Plan (dollar amounts in thousands, except per share data): Options Wgtd. Avg. Exercise Price Wgtd. Avg. Remaining Contractual Term Aggregate Intrinsic Value Year Ended December 31, 2019 Outstanding at December 31, 2018 150,000 $ 19.00 Options Granted 20,500 16.98 Options Exercised - - Options Forfeited (7,500 ) 19.00 Outstanding at December 31, 2019 163,000 $ 18.75 8.79 $ 41 Exercisable at December 31, 2019 35,625 8.73 $ - The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value of each option is expensed over its vesting period. The following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during the period presented: Year Ended December 31, 2019 Risk-free interest rate 2.48 % Dividend yield 2.20 % Stock price volatility 31.14 % Expected term 7.01 yrs The following table summarizes share information about RSUs for the year ended December 31, 2019: Number of Shares Wgtd. Avg. Grant Date Fair Value Outstanding at December 31, 2018 130,000 $ 19.09 Shares granted - - Shares settled (26,000 ) - Shares forfeited - - End of the period balance 104,000 $ 19.09 As of December 31, 2019, there was approximately $1.8 million of unrecognized compensation expense related to 104,000 unvested RSUs and $383,000 of unrecognized compensation expense related to 163,000 unvested and/or unexercised stock options. The stock option expense is expected to be recognized over a weighted average period of four years, and the RSU expense is expected to be recognized over a weighted average period of five years. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Disclosures About Fair Value of Assets and Liabilities [Abstract] | |
Disclosures About Fair Value of Assets and Liabilities | Note 15: Disclosures About Fair Value of Assets and Liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 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 for substantially the full term of the assets or liabilities Level 3 Unobservable inputs supported by little or no market activity and significant to the fair value of the assets or liabilities Recurring Measurements There were no assets measured at fair value on a recurring basis as of December 31, 2019 and 2018. Nonrecurring Measurements The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018 (dollars in thousands): Fair Value (Level 1) (Level 2) (Level 3) Decmeber 31, 2019 Impaired loans (collateral- dependent) $ 1,783 $ - $ - $ 1,783 December 31, 2018 Impaired loans (collateral- dependent) $ 506 $ - $ - $ 506 Foreclosed assets held for sale $ 110 $ - $ - $ 110 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral-Dependent Impaired Loans, Net of Allowance for Loan Losses The estimated fair value of collateral-dependent impaired loans is based on fair value, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers evaluation analysis as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Values of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by executive management and loan administration. Values are reviewed for accuracy and consistency by executive management and loan administration. The ultimate collateral values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. Foreclosed Assets Held for Sale Foreclosed assets held for sale are carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the asset is acquired. Estimated fair value of foreclosed assets is based on appraisals or evaluations. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy. Appraisals of foreclosed assets held for sale are obtained when the asset is acquired and subsequently as deemed necessary by the Company. Appraisals are reviewed for accuracy and consistency by executive management and loan administration. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value Valuation Technique Unobservable Inputs Weighted- Average December 31, 2019 Collateral-dependent impaired loans $ 1,783 Appraisals from comparable properties Estimated cost to sell 3-5 % December 31, 2018 Collateral-dependent impaired loans $ 506 Appraisals from comparable properties Estimated cost to sell 7-10 % Foreclosed assets held for sale $ 110 Appraisals from comparable properties Estimated cost to sell 7-10 % The following tables presents estimated fair values of the Company’s financial instruments not recorded at fair value at December 31, 2019 and 2018 (dollars in thousands): Fair Value Measurements Carrying Amount Level 1 Level 2 Level 3 Total December 31, 2019 Financial Assets Cash and due from banks $ 117,128 $ 117,128 $ - $ - $ 117,128 Interest-bearing time deposits in other banks $ 30,147 $ - $ 30,147 $ - $ 30,147 Loans, net of allowance $ 699,458 $ - $ 698,672 $ 1,809 $ 700,481 Mortgage loans held for sale $ 1,031 $ - $ 1,031 $ - $ 1,031 Nonmarketable equity securities $ 1,100 $ - $ 1,100 $ - $ 1,100 Interest receivable $ 3,954 $ - $ 3,954 $ - $ 3,954 Financial Liabilities Deposits $ 757,483 $ - $ 757,520 $ - $ 757,520 Interest payable $ 636 $ - $ 636 $ - $ 636 December 31, 2018 Financial Assets Cash and due from banks $ 128,090 $ 128,090 $ - $ - $ 128,090 Interest-bearing time deposits in other banks $ 31,759 $ - $ 31,758 $ - $ 31,758 Loans, net of allowance $ 592,078 $ - $ 591,893 $ 506 $ 592,399 Mortgage loans held for sale $ 512 $ - $ 512 $ - $ 512 Nonmarketable equity securities $ 1,055 $ - $ 1,055 $ - $ 1,055 Interest receivable $ 4,538 $ - $ 4,538 $ - $ 4,538 Financial Liabilities Deposits $ 675,903 $ - $ 675,017 $ - $ 675,017 Interest payable $ 461 $ - $ 461 $ - $ 461 The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value: Cash and Due from Banks, Interest-Bearing Time Deposits in Other Banks, Nonmarketable Equity Securities, Interest Receivable and Interest Payable The carrying amount approximates fair value. Loans and Mortgage Loans Held for Sale The fair value of loans is estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Commitments to Extend Credit, Lines of Credit and Standby Letters of Credit The fair values of unfunded commitments are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The fair values of standby letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The estimated fair values of the Company’s commitments to extend credit, lines of credit and standby letters of credit were not material at December 31, 2019 or 2018. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Note 16: Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the accompanying consolidated balance sheets. The following summarizes those financial instruments with contract amounts representing credit risk as of December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 December 31, 2018 Commitments to extend credit $ 191,459 $ 135,015 Financial and performance standby letters of credit 3,338 1,078 $ 194,797 $ 136,093 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Each instrument generally has fixed expiration dates or other termination clauses. Since many of the instruments are expected to expire without being drawn upon, total commitments to extend credit amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Company upon extension of credit is based on management’s credit evaluation of the customer. Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. |
Significant Estimates and Conce
Significant Estimates and Concentrations | 12 Months Ended |
Dec. 31, 2019 | |
Significant Estimates and Concentrations [Abstract] | |
Significant Estimates and Concentrations | Note 17: Significant Estimates and Concentrations GAAP requires disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are reflected in Note 5 Note 10 As of December 31, 2019, hospitality loans were 24% of gross total loans with outstanding balances of $167.0 million and unfunded commitments of $39.4 million; energy loans were 14% of gross total loans with outstanding balances of $102.1 million and unfunded commitments of $28.9 million. The Company evaluates goodwill for potential goodwill impairment on an annual basis or more often based on consideration if any triggering events have occurred. A prolonged strain on the U.S. Economy impacting the Company could result in goodwill being partially or fully impaired. At December 31, 2019, goodwill of $1 million was recorded on the consolidated balance sheet. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Operating Leases [Abstract] | |
Operating Leases | Note 18: Operating Leases GAAP require The Company leases certain of its branch facilities and office equipment under operating leases. Rental expense for these leases was $770,000 and $596,000, and $421,000 for the years ended December 31, 2019, 2018, and 2017 respectively. Future minimum rental commitments of branch facilities and office equipment due under non-cancelable operating leases at December 31, 2019, were as follows (dollars in thousands): 2020 $ 623 2021 451 2022 220 2023 174 Thereafter 49 $ 1,517 |
Parent-only Financial Statement
Parent-only Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Parent-only Financial Statements [Abstract] | |
Parent-only Financial Statements | Note 19: Parent-only Financial Statements Condensed Balance Sheets Assets December 31, 2019 December 31, 2018 Cash and due from banks $ 296 $ 295 Investment in bank subsidiary 99,076 87,377 Dividends receivable 5,029 - Goodwill 1,011 1,011 Other assets - 39 Total assets $ 105,412 $ 88,722 Liabilities and Shareholders’ Equity Other liabilities 5,286 256 Total liabilities 5,286 256 Total shareholders’ equity 100,126 88,466 Total liabilities and shareholders’ equity $ 105,412 $ 88,722 Condensed Statements of Income For the Years Ended December 31, 2019 2018 2017 Income Dividends received from subsidiary bank $ 6,035 $ 11,930 $ 10,765 Other 155 - - Total Income 6,190 11,930 10,765 Expense Interest expense - 175 238 Other 4 315 - Total expense 4 490 238 Income and equity in undistributed net income of bank subsidiary 6,185 11,440 10,527 Equity in undistributed net income of bank subsidiary 2,040 13,521 13,262 Income before Taxes 8,225 24,961 23,789 Income tax expense - (39 ) - Net Income Available to Common Shareholders $ 8,225 $ 25,000 $ 23,789 Condensed Statements of Cash Flows For the Years Ended December 31, 2019 2018 2017 Operating Activities Net income $ 8,225 $ 25,000 $ 23,789 Items not requiring (providing) cash Equity in undistributed net income (2,040 ) (13,521 ) (13,262 ) Dividends receivable from subsidiary bank (5,029 ) - - Stock-based compensation expense - 154 - Changes in Accounts payable and accrued expenses (149 ) - - Other current assets and liabilities - 199 (2 ) Net cash provided by operating activities 1,007 11,832 10,525 Financing Activities Repayment of borrowed funds - (5,600 ) (800 ) Common stock issued, net of offering costs - 50,154 - Dividends paid (1,006 ) (56,155 ) (9,749 ) Net cash used in financing activities (1,006 ) (11,601 ) 10,549 Increase in Cash and Due from Banks 1 231 (24 ) Cash and Due from Banks, Beginning of Period 295 64 88 Cash and Due from Banks, End of Period $ 296 $ 295 $ 64 Supplemental Disclosure of Cash Flows Information Interest paid $ - $ 175 $ 239 Dividends declared and not paid $ 5,029 $ - $ - |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 20: Selected Quarterly Financial Data (Unaudited) The following tables summarize the unaudited condensed results of operations for each of the quarters during the fiscal years ended December 31, 2019 and 2018: For the three months ended March 31, June 30, September 30, December 31, Net interest income $ 10,353 $ 10,583 $ 10,600 $ 10,657 Provision for loan losses - - - - Noninterest income 223 295 509 281 Noninterest expense 3,755 4,048 16,072 4,557 Income before income taxes 6,821 6,830 (4,963 ) 6,381 Income tax expense (benefit) 1,705 1,704 1,556 1,879 Net income (loss) $ 5,116 $ 5,126 $ (6,519 ) $ 4,502 EPS Basic $ 0.50 $ 0.50 $ (0.64 ) $ 0.45 Diluted $ 0.50 $ 0.50 $ (0.64 ) $ 0.45 For the three months ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Net interest income $ 9,861 $ 9,439 $ 9,801 $ 10,530 Provision for loan losses 100 - - 100 Noninterest income 264 486 319 262 Noninterest expense 3,675 3,546 3,805 3,939 Income before income taxes 6,350 6,379 6,315 6,753 Income tax expense - - (395 ) 1,192 Net income $ 6,350 $ 6,379 $ 6,710 $ 5,561 EPS (1) Basic $ 0.87 $ 0.88 $ 0.88 $ 0.55 Diluted $ 0.87 $ 0.88 $ 0.87 $ 0.54 (1) The quarterly EPS amounts, when added, may not coincide with the full fiscal year EPS reported on the Consolidated Statements of Income due to differences in the computed weighted average shares outstanding as well as rounding differences. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank and its subsidiary, 1039 NW 63 rd |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of other real estate owned, other-than-temporary impairments, income taxes, goodwill and intangibles and fair values of financial instruments. |
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. |
Interest-Bearing Time Deposits in Other Banks | Interest-Bearing Time Deposits in Other Banks Interest-bearing time deposits in other banks totaled $30.1 million and $31.8 million at December 31, 2019 and December 31, 2018, respectively, and have original maturities generally ranging from one to five years. |
Securities | Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held-to-maturity or trading, including equity securities with readily determinable fair values, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Company had no “available-for-sale” or held to maturity investments as of December 31, 2019 and 2018. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon the sale of the loan. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay and estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows or collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers nonimpaired loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral-dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is charged to operating expense and is computed using the straight-line method over the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred while improvements are capitalized. Premises and equipment is tested for impairment if events or changes in circumstances occur that indicate that the carrying amount of any premises and equipment may not be recoverable. Premises that are identified to be sold are transferred to other real estate owned at the lower of their carrying amounts or their fair values less estimated costs to sell. Any losses on premises identified to be sold are charged to operating expense. When premises and equipment are transferred to other real estate owned, sold, or otherwise retired, the cost and applicable accumulated depreciation are removed from the respective accounts and any resulting gains or losses are reported in the statement of income. |
Non-Marketable Equity Securities | Non-Marketable Equity Securities Non-marketable equity securities consist primarily of Federal Home Loan Bank of Topeka (FHLB) stock and Federal Reserve Bank of Kansas City stock and are required investments for financial institutions that are members of the FHLB and Federal Reserve systems. The required investment in common stock is based on a predetermined formula, carried at cost and evaluated for impairment. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows is expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the years ended December 31, 2019, 2018, and 2017. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Foreclosed assets held for sale consist of assets acquired through, or in lieu of, loan foreclosure and are initially recorded at fair value, less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount of fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in current operations. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is tested annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the accompanying consolidated financial statements. Other intangible assets consist of core deposit intangible assets and are amortized on a straight-line basis based on an estimated useful life of 10 years. Such assets are periodically evaluated as to the recoverability of their carrying values. |
Segments | Segments While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Income Taxes | Income Taxes Prior to September 24, 2018, the Company had elected to be taxed as an S Corporation for federal and state income tax purposes. As such, stockholders were taxed on their pro rata share of earnings and deductions of the Company, regardless of the amount of distributions received. Generally, the Company was not subject to federal income tax. Effective September 24, 2018, the Company converted from an S Corporation to a C Corporation and is subject to federal and state taxes at that date. The Company uses a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is ‘‘more likely than not’’ that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2019, 2018 and 2017, the Company recognized no interest and penalties. |
Revenue Recognition | Revenue Recognition In addition to lending and related activities, the Company offers various services to customers that generate revenue. Contract performance typically occurs in one year or less. Incremental costs of obtaining a contract are expensed when incurred when the amortization period is one year or less. Service and transaction fees on depository accounts Customers often pay certain fees to the bank to access the cash on deposit including certain non-transactional fees such as account maintenance or dormancy fees, and certain transaction based fees such as ATM, wire transfer, or foreign exchange fees. Revenue is recognized when the transactions occur or as services are performed over primarily monthly or quarterly periods. Payment is typically received in the period the transactions occur, or in some cases, within 90 days of the service period. Interchange Fees Interchange fees, or “swipe” fees, are charges that merchants pay to the processors who, in turn, share that revenue with us and other card-issuing banks for processing electronic payment transactions. Interchange fees represent the portion of the debit card transaction amount that the card issuer retains to compensate it for processing transactions and providing rewards. Interchange fees are settled and recognized on a daily or monthly basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, and establishes a new control-based revenue recognition model for revenue from contracts with customers. The revenue line items in scope of this ASU have been identified and final assessment is pending; however, the majority of the Company’s financial instruments are not within the scope of Topic 606. Material revenue streams within the scope of Topic 606 include service charges on deposits. The guidance in the ASU is effective for annual reporting periods beginning after December 15, 2018. ASU 2014-09 was adopted for the annual period ending December 31, 2019 and did not have a significant impact on the Company’s financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires certain equity investments to be measured at fair value with changes recognized in net income. It also requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purpose and eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value disclosed for financial instruments measured at amortized cost. The guidance in the ASU is effective for annual reporting periods beginning after December 15, 2018. ASU 2016-01 was adopted for the annual period ending December 31, 2019 and did not have a significant impact on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU requires lessees to recognize a lease liability and a right-of-use asset for all leases, excluding short-term leases, at the commencement date. The guidance in the ASU is effective for reporting periods beginning after December 15, 2019. Additionally, a modified retrospective transition approach is required for a leases existing at the earliest comparative period presented. Management is assessing the impact of this ASU; however, it is not expected to have a material impact on the Company’s financial condition, results of operation, or capital position, but will impact the presentation on the balance sheet of the Company’s current operating leases. The Company will adopt this ASU in the first quarter of 2021. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU requires the replacement of the current incurred loss model with an expected loss model, referred to as the current expected credit loss (CECL) model. The guidance in the ASU is effective for reporting periods beginning after December 15, 2021 with a cumulative-effect adjustment to retained earnings required for the first reporting period. Management is still assessing the impact of this ASU. The Company will adopt this ASU in the first quarter of 2023. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU amends existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The guidance in the ASU is effective for reporting periods beginning after December 15, 2021 with prospective application. It is expected that adoption will not have a significant impact on the Company’s financial condition and results of operations. The Company expects to adopt the standard in the first quarter of 2020. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). ASU 2018-13 removes, modifies and adds disclosure requirements on fair value measurements. ASU 2018-13 will be effective for the Company on January 1, 2020. Early adoption is permitted. In addition, early adoption of any removed or modified disclosures and delayed adoption of the additional disclosures until the effective date is also permitted. It is expected that adoption will not have a significant impact on the Company’s financial condition and results of operations. The Company expects to adopt the standard in the first quarter of 2020. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share: As of and for the Years ended December 31, 2019 2018 2017 (Dollars in thousands, except per share amounts) Numerator Net income $ 8,225 $ 25,000 $ 23,789 Denominator Denominator for basic earnings per common share 10,145,032 8,105,856 7,287,500 Dilutive effect of stock compensation (1) 2,279 131,782 - Denominator for diluted earnings per share 10,147,311 8,237,638 7,287,500 Earnings per common share Basic $ 0.81 $ 3.08 $ 3.26 Diluted $ 0.81 $ 3.03 $ 3.26 (1) Nonqualified stock options outstanding of 163,000 and 150,000 as of December 31, 2019 and 2018, respectively, have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented. |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of Loans | A summary of loans at December 31, 2019 and 2018, are as follows (dollars in thousands): December 31, 2019 December 31, 2018 Construction & development $ 70,628 $ 87,267 1-4 family commercial 34,160 33,278 Commercial real estate - other 273,278 156,396 Total commercial real estate 378,066 276,941 Commercial & industrial 260,762 248,394 Agricultural 57,945 62,844 Consumer 11,895 13,723 Gross loans 708,668 601,902 Less allowance for loan losses (7,846 ) (7,832 ) Less deferred loan fees (1,364 ) (1,992 ) Net loans $ 699,458 $ 592,078 |
Activity in Allowance for Loan Losses by Portfolio Segment | The following table presents, by portfolio segment, the activity in the allowance for loan losses for the years ended December 31, 2019, 2018, and 2017 (dollars in thousands): Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2019 Balance, beginning of period $ 1,136 $ 433 $ 2,035 $ 3,231 $ 818 $ 179 $ 7,832 Charge-offs - (2 ) - (4 ) (11 ) (1 ) (18 ) Recoveries - 5 - 24 3 - 32 Net charge-offs - 3 - 20 (8 ) (1 ) 14 Provision (credit) for loan losses (354 ) (58 ) 990 (364 ) (168 ) (46 ) - Balance, end of period $ 782 $ 378 $ 3,025 $ 2,887 $ 642 $ 132 $ 7,846 Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2018 Balance, beginning of period $ 1,407 $ 431 $ 1,865 $ 2,779 $ 1,015 $ 157 $ 7,654 Charge-offs - (25 ) - (73 ) - - (98 ) Recoveries - 3 - 71 1 1 76 Net charge-offs - (22 ) - (2 ) 1 1 (22 ) Provision (credit) for loan losses (271 ) 24 170 454 (198 ) 21 200 Balance, end of period $ 1,136 $ 433 $ 2,035 $ 3,231 $ 818 $ 179 $ 7,832 Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2017 Balance, beginning of period $ 1,565 $ 287 $ 1,193 $ 2,523 $ 1,074 $ 231 $ 6,873 Charge-offs - - (224 ) (242 ) - (46 ) (512 ) Recoveries - 23 6 6 - 12 47 Net charge-offs - 23 (218 ) (236 ) - (34 ) (465 ) Provision (credit) for loan losses (158 ) 121 890 492 (59 ) (40 ) 1,246 Balance, end of period $ 1,407 $ 431 $ 1,865 $ 2,779 $ 1,015 $ 157 $ 7,654 The following table presents, by portfolio segment, the balance in allowance for loan losses and the gross loans based upon portfolio segment and impairment method as of December 31, 2019 and 2018 (dollars in thousands): Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2019 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ 26 $ - $ - $ - $ 26 Collectively evaluated for impairment 782 378 2,999 2,887 642 132 7,820 Total $ 782 $ 378 $ 3,025 $ 2,887 $ 642 $ 132 $ 7,846 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 5,841 $ 2,750 $ 2,527 $ - $ 11,118 Collectively evaluated for impairment 70,628 34,160 267,437 258,012 55,418 11,895 697,550 Total $ 70,628 $ 34,160 $ 273,278 $ 260,762 $ 57,945 $ 11,895 $ 708,668 December 31, 2018 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ 32 $ 14 $ - $ - $ 46 Collectively evaluated for impairment 1,136 433 2,003 3,217 818 179 7,786 Total $ 1,136 $ 433 $ 2,035 $ 3,231 $ 818 $ 179 $ 7,832 Gross Loans Ending balance Individually evaluated for impairment $ - $ 115 $ 484 $ 7,381 $ 1,097 $ - $ 9,077 Collectively evaluated for impairment 87,267 33,163 155,912 241,013 61,747 13,723 592,825 Total $ 87,267 $ 33,278 $ 156,396 $ 248,394 $ 62,844 $ 13,723 $ 601,902 |
Loan Portfolio Based on Internal Rating Category | The following table presents the credit risk profile of the Company’s loan portfolio based on internal rating category as of December 31, 2019 and 2018 (dollars in thousands): Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2019 Grade 1 (Pass) $ 70,628 $ 33,622 $ 267,437 $ 241,176 $ 53,290 $ 11,895 $ 678,048 2 (Watch) - 538 - 5,312 - - 5,850 3 (Special Mention) - - - 11,524 2,128 - 13,652 4 (Substandard) - - 5,841 2,750 2,527 - 11,118 Total $ 70,628 $ 34,160 $ 273,278 $ 260,762 $ 57,945 $ 11,895 $ 708,668 Construction & Development 1 - 4 Family Commercial Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2018 Grade 1 (Pass) $ 84,485 $ 29,942 $ 154,353 $ 204,671 $ 57,782 $ 13,723 $ 544,956 2 (Watch) 2,782 3,221 1,559 36,342 758 - 44,662 3 (Special Mention) - - - - 3,207 - 3,207 4 (Substandard) - 115 484 7,381 1,097 - 9,077 Total $ 87,267 $ 33,278 $ 156,396 $ 248,394 $ 62,844 $ 13,723 $ 601,902 |
Loan Portfolio Aging Analysis of Recorded Investment in Loans | The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2019 and 2018 (dollars in thousands): Past Due 30–59 Days 60–89 Days Greater than 90 Days Total Current Total Loans Total Loans > 90 Days & Accruing December 31, 2019 Construction & development $ - $ - $ - $ - $ 70,628 $ 70,628 $ - 1 - 4 Family Real Estate - - - - 34,160 34,160 - Commercial Real Estate - other - - - - 273,278 273,278 - Commercial & industrial - - 14 14 260,748 260,762 14 Agricultural - - 598 598 57,347 57,945 598 Consumer 90 - - 90 11,805 11,895 - Total $ 90 $ - $ 612 $ 702 $ 707,966 $ 708,668 $ 612 December 31, 2018 Construction & development $ - $ - $ - $ - $ 87,267 $ 87,267 $ - 1 - 4 Family Real Estate 8 - - 8 33,270 33,278 - Commercial Real Estate - other - - - - 156,396 156,396 - Commercial & industrial - 5 - 5 248,389 248,394 - Agricultural - - - - 62,844 62,844 - Consumer 41 - - 41 13,682 13,723 - Total $ 49 $ 5 $ - $ 54 $ 601,848 $ 601,902 $ - |
Impaired Loans | The following table presents impaired loans as of December 31, 2019 and 2018 (dollars in thousands): Unpaid Principal Balance Recorded Investment with No Allowance Recorded Investment with an Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2019 Construction & development $ - $ - $ - $ - $ - $ - $ - 1 - 4 Family Real Estate - - - - - 208 - Commercial Real Estate - other 5,841 4,032 1,809 5,841 26 2,557 440 Commercial & industrial 2,750 2,750 - 2,750 - 5,495 281 Agricultural 2,527 1,744 - 1,744 - 2,238 174 Consumer - - - - - 98 - Total $ 11,118 $ 8,526 $ 1,809 $ 10,335 $ 26 $ 10,596 $ 895 December 31, 2018 Construction & development $ - $ - $ - $ - $ - $ - $ - 1 - 4 Family Real Estate 115 115 - 115 - 82 4 Commercial Real Estate - other 1,990 1,506 484 1,990 32 440 148 Commercial & industrial 7,614 7,359 22 7,381 14 7,049 560 Agricultural 1,097 1,097 - 1,097 - 1,313 82 Consumer 5 - - - - 28 1 Total $ 10,821 $ 10,077 $ 506 $ 10,583 $ 46 $ 8,912 $ 795 |
Information Regarding Nonperforming Assets | The following table represents information regarding nonperforming assets at December 31, 2019 and 2018 (dollars in thousands): As of December 31, 2019 2018 Nonaccrual loans $ 1,809 $ 2,615 Troubled-debt restructurings (1) 912 - Accruing loans 90 or more days past due 612 - Total nonperforming loans $ 3,333 $ 2,615 (1) $1.81 million and $501,000 of TDRs as of December 31, 2019 and December 31, 2018, respectively, are included in the nonaccrual loans balance in the line above. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Major classifications of premises and equipment, stated at cost and net of accumulated depreciation are as follows (dollars in thousands): December 31, 2019 December 31, 2018 Land, buildings and improvements $ 9,942 $ 8,414 Furniture and equipment 2,117 1,654 Automobiles 760 722 12,819 10,790 Less accumulated depreciation (3,195 ) (3,037 ) Net premises and equipment $ 9,624 $ 7,753 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Gross Carrying Amount and Accumulated Amortization of Recognized Intangible Assets | The gross carrying amount and accumulated amortization of recognized intangible assets at December 31, 2019 and 2018, were (dollars in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Core deposit intangible $ 2,061 $ (1,283 ) $ 2,061 $ (1,077 ) |
Amortization Expense for Intangible Assets | Estimated amortization expense for each of the following four years is as follows (dollars in thousands): 2020 $ 206 2021 206 2022 206 2023 160 $ 778 |
Interest-Bearing Deposits (Tabl
Interest-Bearing Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interest-Bearing Deposits [Abstract] | |
Scheduled Maturities of Interest-Bearing Time Deposits | At December 31, 2019, the scheduled maturities of interest-bearing time deposits were as follows (dollars in thousands): 2020 $ 156,283 2021 34,775 2022 9,535 2023 1,945 $ 202,538 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
(Benefit)/ Provision for Income Taxes | The (benefit)/provision for income taxes for the years ended December 31, 2019 and 2018 consists of the following (dollars in thousands): Year Ended December 31, 2019 2018 Federal: Current $ 5,516 $ 1,563 Deferred - (1,036 ) Total federal tax provision $ 5,516 $ 527 State: Current $ 1,308 $ 303 Deferred 20 (33 ) Total state tax provision $ 1,328 $ 270 Total income tax provision $ 6,844 $ 797 |
Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2019 and 2018 differs from the federal rate of 21% due to the following: Year Ended December 31, 2019 2018 Statutory U.S. Federal Income Tax $ 3,160 $ 5,417 Increase (decrease) resulting from: State Taxes 1,048 213 Benefit of S corporation status - (3,933 ) Permanent Differences 2,327 - Conversion as of September 24, 2018 to C corporation - (863 ) Other 309 (37 ) Provision for income taxes $ 6,844 $ 797 |
Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) included in other assets in the accompanying consolidated balance sheet consist of the following: Year Ended December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 1,918 $ 1,942 Non-accrual loans 60 - Deferred revenue 165 - Other - 80 Deferred compensation 78 38 Total deferred tax assets $ 2,221 $ 2,060 Deferred tax liabilities: Property and equipment $ (320 ) $ (268 ) Intangible assets (202 ) (220 ) Prepaid expenses (122 ) (177 ) Method change IRC 481(a) (476 ) (254 ) Other (12 ) (72 ) Total deferred tax liabilities $ (1,132 ) $ (991 ) Net deferred tax assets $ 1,089 $ 1,069 |
Uncertain Tax Positions | A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands): For the Year Ended December 31, 2019 2018 Balance at beginning of year $ 13 $ - Additions for positions taken in prior years - 15 Reductions for positions taken in prior years - (2 ) Balance at end of year $ 13 $ 13 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' Equity [Abstract] | |
Stock Repurchase | A summary of the activity under the RP is as follows: Year Ended December 31, 2019 2018 Number of shares repurchased - - Average price of shares repurchased $ - $ - Shares remaining to be repurchased 500,000 - |
Actual Capital Amounts and Ratios | The Company’s and Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands): Actual Minimum Capital Requirements With Capital Conservation Buffer Minimum Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Total capital to risk-weighted assets Company $ 105,137 15.25 % $ 55,157 8.00 % $ 72,393 10.50 % N/A N/A Bank $ 106,148 15.42 % $ 55,076 8.00 % $ 72,287 10.50 % $ 68,845 10.00 % Tier I capital to risk-weighted assets Company $ 97,291 14.11 % $ 41,368 6.00 % $ 58,604 8.50 % N/A N/A Bank $ 98,302 14.28 % $ 41,307 6.00 % $ 58,518 8.50 % $ 55,076 8.00 % CET I capital to risk-weighted assets Company $ 97,291 14.11 % $ 31,026 4.50 % $ 48,262 7.00 % N/A N/A Bank $ 98,302 14.28 % $ 30,980 4.50 % $ 48,192 7.00 % $ 44,749 6.50 % Tier I capital to average assets Company $ 97,291 11.53 % $ 33,833 4.00 % N/A N/A N/A N/A Bank $ 98,302 11.65 % $ 33,793 4.00 % N/A N/A $ 42,241 5.00 % As of December 31, 2018 Total capital to risk-weighted assets Company $ 92,693 15.86 % $ 46,751 8.00 % $ 57,709 9.875 % N/A N/A Bank $ 93,704 16.03 % $ 46,751 8.00 % $ 57,709 9.875 % $ 58,439 10.00 % Tier I capital to risk-weighted assets Company $ 85,382 14.61 % $ 35,063 6.00 % $ 46,021 7.875 % N/A N/A Bank $ 86,393 14.78 % $ 35,063 6.00 % $ 46,021 7.875 % $ 46,751 8.00 % CET I capital to risk-weighted assets Company $ 85,382 14.61 % $ 26,298 4.50 % $ 37,255 6.375 % N/A N/A Bank $ 86,393 14.78 % $ 26,298 4.50 % $ 37,255 6.375 % $ 37,985 6.50 % Tier I capital to average assets Company $ 85,382 11.13 % $ 30,684 4.00 % N/A N/A N/A N/A Bank $ 86,393 11.26 % $ 30,684 4.00 % N/A N/A $ 38,355 5.00 % Capital Conservation Buffer (as a % of risk-weighted assets) Maximum Payout (as a % of eligible retained income) Greater than 2.5% No payout limitations applies ≤2.5% and >1.875% 60 % ≤1.875% and >1.25% 40 % ≤1.25% and >0.625% 20 % ≤0.625% 0 % |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related-Party Transactions [Abstract] | |
Summary of Loans | A summary of these loans is as follows (dollars in thousands): Balance Beginning of the Period Additions Collections/ Terminations Balance End of the Period Year ended December 31, 2019 $ 6,897 $ 2,613 $ (8,455 ) $ 1,055 Year ended December 31, 2018 $ 6,684 $ 7,319 $ (7,106 ) $ 6,897 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Stock Options Activity | The following table is a summary of the stock option activity under the Bank7 Corp. 2018 Equity Incentive Plan (dollar amounts in thousands, except per share data): Options Wgtd. Avg. Exercise Price Wgtd. Avg. Remaining Contractual Term Aggregate Intrinsic Value Year Ended December 31, 2019 Outstanding at December 31, 2018 150,000 $ 19.00 Options Granted 20,500 16.98 Options Exercised - - Options Forfeited (7,500 ) 19.00 Outstanding at December 31, 2019 163,000 $ 18.75 8.79 $ 41 Exercisable at December 31, 2019 35,625 8.73 $ - |
Weighted-Average Inputs and Risk-Free Rate of Return Ranges used to Calculate Grant Date Fair Value of Options | The following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during the period presented: Year Ended December 31, 2019 Risk-free interest rate 2.48 % Dividend yield 2.20 % Stock price volatility 31.14 % Expected term 7.01 yrs |
Restricted Stock Units | The following table summarizes share information about RSUs for the year ended December 31, 2019: Number of Shares Wgtd. Avg. Grant Date Fair Value Outstanding at December 31, 2018 130,000 $ 19.09 Shares granted - - Shares settled (26,000 ) - Shares forfeited - - End of the period balance 104,000 $ 19.09 |
Disclosures About Fair Value _2
Disclosures About Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosures About Fair Value of Assets and Liabilities [Abstract] | |
Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018 (dollars in thousands): Fair Value (Level 1) (Level 2) (Level 3) Decmeber 31, 2019 Impaired loans (collateral- dependent) $ 1,783 $ - $ - $ 1,783 December 31, 2018 Impaired loans (collateral- dependent) $ 506 $ - $ - $ 506 Foreclosed assets held for sale $ 110 $ - $ - $ 110 |
Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value Valuation Technique Unobservable Inputs Weighted- Average December 31, 2019 Collateral-dependent impaired loans $ 1,783 Appraisals from comparable properties Estimated cost to sell 3-5 % December 31, 2018 Collateral-dependent impaired loans $ 506 Appraisals from comparable properties Estimated cost to sell 7-10 % Foreclosed assets held for sale $ 110 Appraisals from comparable properties Estimated cost to sell 7-10 % |
Estimated Fair Value of Financial Instruments not Recorded at Fair Value | The following tables presents estimated fair values of the Company’s financial instruments not recorded at fair value at December 31, 2019 and 2018 (dollars in thousands): Fair Value Measurements Carrying Amount Level 1 Level 2 Level 3 Total December 31, 2019 Financial Assets Cash and due from banks $ 117,128 $ 117,128 $ - $ - $ 117,128 Interest-bearing time deposits in other banks $ 30,147 $ - $ 30,147 $ - $ 30,147 Loans, net of allowance $ 699,458 $ - $ 698,672 $ 1,809 $ 700,481 Mortgage loans held for sale $ 1,031 $ - $ 1,031 $ - $ 1,031 Nonmarketable equity securities $ 1,100 $ - $ 1,100 $ - $ 1,100 Interest receivable $ 3,954 $ - $ 3,954 $ - $ 3,954 Financial Liabilities Deposits $ 757,483 $ - $ 757,520 $ - $ 757,520 Interest payable $ 636 $ - $ 636 $ - $ 636 December 31, 2018 Financial Assets Cash and due from banks $ 128,090 $ 128,090 $ - $ - $ 128,090 Interest-bearing time deposits in other banks $ 31,759 $ - $ 31,758 $ - $ 31,758 Loans, net of allowance $ 592,078 $ - $ 591,893 $ 506 $ 592,399 Mortgage loans held for sale $ 512 $ - $ 512 $ - $ 512 Nonmarketable equity securities $ 1,055 $ - $ 1,055 $ - $ 1,055 Interest receivable $ 4,538 $ - $ 4,538 $ - $ 4,538 Financial Liabilities Deposits $ 675,903 $ - $ 675,017 $ - $ 675,017 Interest payable $ 461 $ - $ 461 $ - $ 461 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Financial Instruments with Contract Amounts Representing Credit Risk | The following summarizes those financial instruments with contract amounts representing credit risk as of December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 December 31, 2018 Commitments to extend credit $ 191,459 $ 135,015 Financial and performance standby letters of credit 3,338 1,078 $ 194,797 $ 136,093 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Leases [Abstract] | |
Future Minimum Rental Commitments Non-Cancelable Operating Leases | Future minimum rental commitments of branch facilities and office equipment due under non-cancelable operating leases at December 31, 2019, were as follows (dollars in thousands): 2020 $ 623 2021 451 2022 220 2023 174 Thereafter 49 $ 1,517 |
Parent-only Financial Stateme_2
Parent-only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Parent-only Financial Statements [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets Assets December 31, 2019 December 31, 2018 Cash and due from banks $ 296 $ 295 Investment in bank subsidiary 99,076 87,377 Dividends receivable 5,029 - Goodwill 1,011 1,011 Other assets - 39 Total assets $ 105,412 $ 88,722 Liabilities and Shareholders’ Equity Other liabilities 5,286 256 Total liabilities 5,286 256 Total shareholders’ equity 100,126 88,466 Total liabilities and shareholders’ equity $ 105,412 $ 88,722 |
Condensed Statements of Income | Condensed Statements of Income For the Years Ended December 31, 2019 2018 2017 Income Dividends received from subsidiary bank $ 6,035 $ 11,930 $ 10,765 Other 155 - - Total Income 6,190 11,930 10,765 Expense Interest expense - 175 238 Other 4 315 - Total expense 4 490 238 Income and equity in undistributed net income of bank subsidiary 6,185 11,440 10,527 Equity in undistributed net income of bank subsidiary 2,040 13,521 13,262 Income before Taxes 8,225 24,961 23,789 Income tax expense - (39 ) - Net Income Available to Common Shareholders $ 8,225 $ 25,000 $ 23,789 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Years Ended December 31, 2019 2018 2017 Operating Activities Net income $ 8,225 $ 25,000 $ 23,789 Items not requiring (providing) cash Equity in undistributed net income (2,040 ) (13,521 ) (13,262 ) Dividends receivable from subsidiary bank (5,029 ) - - Stock-based compensation expense - 154 - Changes in Accounts payable and accrued expenses (149 ) - - Other current assets and liabilities - 199 (2 ) Net cash provided by operating activities 1,007 11,832 10,525 Financing Activities Repayment of borrowed funds - (5,600 ) (800 ) Common stock issued, net of offering costs - 50,154 - Dividends paid (1,006 ) (56,155 ) (9,749 ) Net cash used in financing activities (1,006 ) (11,601 ) 10,549 Increase in Cash and Due from Banks 1 231 (24 ) Cash and Due from Banks, Beginning of Period 295 64 88 Cash and Due from Banks, End of Period $ 296 $ 295 $ 64 Supplemental Disclosure of Cash Flows Information Interest paid $ - $ 175 $ 239 Dividends declared and not paid $ 5,029 $ - $ - |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Information | The following tables summarize the unaudited condensed results of operations for each of the quarters during the fiscal years ended December 31, 2019 and 2018: For the three months ended March 31, June 30, September 30, December 31, Net interest income $ 10,353 $ 10,583 $ 10,600 $ 10,657 Provision for loan losses - - - - Noninterest income 223 295 509 281 Noninterest expense 3,755 4,048 16,072 4,557 Income before income taxes 6,821 6,830 (4,963 ) 6,381 Income tax expense (benefit) 1,705 1,704 1,556 1,879 Net income (loss) $ 5,116 $ 5,126 $ (6,519 ) $ 4,502 EPS Basic $ 0.50 $ 0.50 $ (0.64 ) $ 0.45 Diluted $ 0.50 $ 0.50 $ (0.64 ) $ 0.45 For the three months ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Net interest income $ 9,861 $ 9,439 $ 9,801 $ 10,530 Provision for loan losses 100 - - 100 Noninterest income 264 486 319 262 Noninterest expense 3,675 3,546 3,805 3,939 Income before income taxes 6,350 6,379 6,315 6,753 Income tax expense - - (395 ) 1,192 Net income $ 6,350 $ 6,379 $ 6,710 $ 5,561 EPS (1) Basic $ 0.87 $ 0.88 $ 0.88 $ 0.55 Diluted $ 0.87 $ 0.88 $ 0.87 $ 0.54 (1) The quarterly EPS amounts, when added, may not coincide with the full fiscal year EPS reported on the Consolidated Statements of Income due to differences in the computed weighted average shares outstanding as well as rounding differences. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Interest-Bearing Time Deposits in Other Banks [Abstract] | |||
Interest-bearing time deposits in other banks | $ 30,147 | $ 31,759 | |
Securities [Abstract] | |||
Securities, available-for-sale | 0 | 0 | |
Securities, held to maturity | 0 | 0 | |
Long-Lived Asset Impairment [Abstract] | |||
Asset impairment charges | $ 0 | 0 | $ 0 |
Segments [Abstract] | |||
Number of reportable segment | Segment | 1 | ||
Income Taxes Abstract] | |||
Interest accrued and penalties related to unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Revenue Recognition [Abstract] | |||
Maximum payment period received for transactions | 90 days | ||
Minimum [Member] | |||
Interest-Bearing Time Deposits in Other Banks [Abstract] | |||
Maturity period of interest bearing time deposits | 1 year | ||
Maximum [Member] | |||
Interest-Bearing Time Deposits in Other Banks [Abstract] | |||
Maturity period of interest bearing time deposits | 5 years | ||
Core Deposits [Member] | |||
Goodwill and Intangible Assets [Abstract] | |||
Estimated useful life | 10 years |
Change in Capital Structure (De
Change in Capital Structure (Details) $ / shares in Units, $ in Thousands | Sep. 24, 2018USD ($) | Sep. 20, 2018USD ($)$ / sharesshares | Jul. 06, 2018 | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Jun. 26, 2018$ / sharesshares |
Change in Capital Structure [Abstract] | |||||||
Common stock, shares authorized (in shares) | shares | 50,000,000 | 50,000,000 | 50,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred stock, shares authorized (in shares) | shares | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Stock split ratio | 24 | ||||||
Deferred income tax benefit (expense) | $ | $ (863) | $ (20) | $ (1,069) | $ 0 | |||
IPO [Member] | |||||||
Change in Capital Structure [Abstract] | |||||||
Sold and issued shares of common stock (in shares) | shares | 2,900,000 | ||||||
Common stock price per share (in dollars per share) | $ / shares | $ 19 | ||||||
Net proceeds from initial public offering | $ | $ 50,100 | ||||||
Non-voting Common Stock [Member] | |||||||
Change in Capital Structure [Abstract] | |||||||
Common stock, shares authorized (in shares) | shares | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Restriction on Cash and Due f_2
Restriction on Cash and Due from Banks (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Restriction on Cash and Due from Banks [Abstract] | |
Reserve funds to be maintained with Federal Reserve Bank | $ 18,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Numerator [Abstract] | |||||||||||||||
Net income | $ 4,502 | $ (6,519) | $ 5,126 | $ 5,116 | $ 5,561 | $ 6,710 | $ 6,379 | $ 6,350 | $ 8,225 | $ 25,000 | $ 23,789 | ||||
Denominator [Abstract] | |||||||||||||||
Denominator for basic earnings per common share (in shares) | 10,145,032 | 8,105,856 | 7,287,500 | ||||||||||||
Dilutive effect of stock compensation (in shares) | 2,279 | 131,782 | 0 | ||||||||||||
Denominator for diluted earnings per share (in shares) | 10,147,311 | 8,237,638 | 7,287,500 | ||||||||||||
Earnings per common share [Abstract] | |||||||||||||||
Basic (in dollars per share) | $ 0.45 | $ (0.64) | $ 0.50 | $ 0.50 | $ 0.55 | [1] | $ 0.88 | [1] | $ 0.88 | [1] | $ 0.87 | [1] | $ 0.81 | $ 3.08 | $ 3.26 |
Diluted (in dollars per share) | $ 0.45 | $ (0.64) | $ 0.50 | $ 0.50 | $ 0.54 | [1] | $ 0.87 | [1] | $ 0.88 | [1] | $ 0.87 | [1] | $ 0.81 | $ 3.03 | $ 3.26 |
Stock Option [Member] | |||||||||||||||
Antidilutive securities [Abstract] | |||||||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 163,000 | 150,000 | |||||||||||||
[1] | The quarterly EPS amounts, when added, may not coincide with the full fiscal year EPS reported on the Consolidated Statements of Income due to differences in the computed weighted average shares outstanding as well as rounding differences. |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses, Summary of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of loans [Abstract] | ||||
Gross loans | $ 708,668 | $ 601,902 | ||
Less allowance for loan losses | (7,846) | (7,832) | $ (7,654) | $ (6,873) |
Less deferred loan fees | (1,364) | (1,992) | ||
Net loans | 699,458 | 592,078 | ||
Construction & Development [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 70,628 | 87,267 | ||
Less allowance for loan losses | (782) | (1,136) | (1,407) | (1,565) |
1-4 Family Commercial [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 34,160 | 33,278 | ||
Less allowance for loan losses | (378) | (433) | (431) | (287) |
Commercial Real Estate - Other [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 273,278 | 156,396 | ||
Less allowance for loan losses | (3,025) | (2,035) | (1,865) | (1,193) |
Total Commercial Real Estate [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 378,066 | 276,941 | ||
Commercial & Industrial [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 260,762 | 248,394 | ||
Less allowance for loan losses | (2,887) | (3,231) | (2,779) | (2,523) |
Agricultural [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 57,945 | 62,844 | ||
Less allowance for loan losses | (642) | (818) | (1,015) | (1,074) |
Consumer [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 11,895 | 13,723 | ||
Less allowance for loan losses | $ (132) | $ (179) | $ (157) | $ (231) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses, Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Activity in allowance for loan losses [Roll Forward] | |||||||||||||
Balance, beginning of period | $ 7,832 | $ 7,654 | $ 7,832 | $ 7,654 | $ 6,873 | ||||||||
Charge-offs | (18) | (98) | (512) | ||||||||||
Recoveries | 32 | 76 | 47 | ||||||||||
Net recoveries (charge-offs) | 14 | (22) | (465) | ||||||||||
Provision (credit) for loan losses | $ 0 | $ 0 | $ 0 | 0 | $ 100 | $ 0 | $ 0 | 100 | 0 | 200 | 1,246 | ||
Balance, end of period | 7,846 | 7,832 | 7,846 | 7,832 | 7,654 | ||||||||
Allowance Balance [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | $ 26 | $ 46 | |||||||||||
Ending balance, Collectively evaluated for impairment | 7,820 | 7,786 | |||||||||||
Total | 7,846 | 7,832 | 7,832 | 7,654 | 7,832 | 7,654 | 7,654 | 7,846 | 7,832 | ||||
Gross Loans [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 11,118 | 9,077 | |||||||||||
Ending balance, Collectively evaluated for impairment | 697,550 | 592,825 | |||||||||||
Total | 708,668 | 601,902 | |||||||||||
Construction & Development [Member] | |||||||||||||
Activity in allowance for loan losses [Roll Forward] | |||||||||||||
Balance, beginning of period | 1,136 | 1,407 | 1,136 | 1,407 | 1,565 | ||||||||
Charge-offs | 0 | 0 | 0 | ||||||||||
Recoveries | 0 | 0 | 0 | ||||||||||
Net recoveries (charge-offs) | 0 | 0 | 0 | ||||||||||
Provision (credit) for loan losses | (354) | (271) | (158) | ||||||||||
Balance, end of period | 782 | 1,136 | 782 | 1,136 | 1,407 | ||||||||
Allowance Balance [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 0 | 0 | |||||||||||
Ending balance, Collectively evaluated for impairment | 782 | 1,136 | |||||||||||
Total | 782 | 1,136 | 1,136 | 1,407 | 782 | 1,407 | 1,407 | 782 | 1,136 | ||||
Gross Loans [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 0 | 0 | |||||||||||
Ending balance, Collectively evaluated for impairment | 70,628 | 87,267 | |||||||||||
Total | 70,628 | 87,267 | |||||||||||
1-4 Family Commercial [Member] | |||||||||||||
Activity in allowance for loan losses [Roll Forward] | |||||||||||||
Balance, beginning of period | 433 | 431 | 433 | 431 | 287 | ||||||||
Charge-offs | (2) | (25) | 0 | ||||||||||
Recoveries | 5 | 3 | 23 | ||||||||||
Net recoveries (charge-offs) | 3 | (22) | 23 | ||||||||||
Provision (credit) for loan losses | (58) | 24 | 121 | ||||||||||
Balance, end of period | 378 | 433 | 378 | 433 | 431 | ||||||||
Allowance Balance [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 0 | 0 | |||||||||||
Ending balance, Collectively evaluated for impairment | 378 | 433 | |||||||||||
Total | 378 | 433 | 433 | 431 | 378 | 433 | 431 | 378 | 433 | ||||
Gross Loans [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 0 | 115 | |||||||||||
Ending balance, Collectively evaluated for impairment | 34,160 | 33,163 | |||||||||||
Total | 34,160 | 33,278 | |||||||||||
Commercial Real Estate - Other [Member] | |||||||||||||
Activity in allowance for loan losses [Roll Forward] | |||||||||||||
Balance, beginning of period | 2,035 | 1,865 | 2,035 | 1,865 | 1,193 | ||||||||
Charge-offs | 0 | 0 | (224) | ||||||||||
Recoveries | 0 | 0 | 6 | ||||||||||
Net recoveries (charge-offs) | 0 | 0 | (218) | ||||||||||
Provision (credit) for loan losses | 990 | 170 | 890 | ||||||||||
Balance, end of period | 3,025 | 2,035 | 3,025 | 2,035 | 1,865 | ||||||||
Allowance Balance [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 26 | 32 | |||||||||||
Ending balance, Collectively evaluated for impairment | 2,999 | 2,003 | |||||||||||
Total | 3,025 | 2,035 | 2,035 | 1,865 | 3,025 | 1,865 | 1,193 | 3,025 | 2,035 | ||||
Gross Loans [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 5,841 | 484 | |||||||||||
Ending balance, Collectively evaluated for impairment | 267,437 | 155,912 | |||||||||||
Total | 273,278 | 156,396 | |||||||||||
Commercial & Industrial [Member] | |||||||||||||
Activity in allowance for loan losses [Roll Forward] | |||||||||||||
Balance, beginning of period | 3,231 | 2,779 | 3,231 | 2,779 | 2,523 | ||||||||
Charge-offs | (4) | (73) | (242) | ||||||||||
Recoveries | 24 | 71 | 6 | ||||||||||
Net recoveries (charge-offs) | 20 | (2) | (236) | ||||||||||
Provision (credit) for loan losses | (364) | 454 | 492 | ||||||||||
Balance, end of period | 2,887 | 3,231 | 2,887 | 3,231 | 2,779 | ||||||||
Allowance Balance [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 0 | 14 | |||||||||||
Ending balance, Collectively evaluated for impairment | 2,887 | 3,217 | |||||||||||
Total | 2,887 | 3,231 | 3,231 | 2,779 | 2,887 | 3,231 | 2,523 | 2,887 | 3,231 | ||||
Gross Loans [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 2,750 | 7,381 | |||||||||||
Ending balance, Collectively evaluated for impairment | 258,012 | 241,013 | |||||||||||
Total | 260,762 | 248,394 | |||||||||||
Agricultural [Member] | |||||||||||||
Activity in allowance for loan losses [Roll Forward] | |||||||||||||
Balance, beginning of period | 818 | 1,015 | 818 | 1,015 | 1,074 | ||||||||
Charge-offs | (11) | 0 | 0 | ||||||||||
Recoveries | 3 | 1 | 0 | ||||||||||
Net recoveries (charge-offs) | (8) | 1 | 0 | ||||||||||
Provision (credit) for loan losses | (168) | (198) | (59) | ||||||||||
Balance, end of period | 642 | 818 | 642 | 818 | 1,015 | ||||||||
Allowance Balance [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 0 | 0 | |||||||||||
Ending balance, Collectively evaluated for impairment | 642 | 818 | |||||||||||
Total | 642 | 818 | 818 | 1,015 | 642 | 818 | 1,074 | 642 | 818 | ||||
Gross Loans [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 2,527 | 1,097 | |||||||||||
Ending balance, Collectively evaluated for impairment | 55,418 | 61,747 | |||||||||||
Total | 57,945 | 62,844 | |||||||||||
Consumer [Member] | |||||||||||||
Activity in allowance for loan losses [Roll Forward] | |||||||||||||
Balance, beginning of period | 179 | 157 | 179 | 157 | 231 | ||||||||
Charge-offs | (1) | 0 | (46) | ||||||||||
Recoveries | 0 | 1 | 12 | ||||||||||
Net recoveries (charge-offs) | (1) | 1 | (34) | ||||||||||
Provision (credit) for loan losses | (46) | 21 | (40) | ||||||||||
Balance, end of period | 132 | 179 | 132 | 179 | 157 | ||||||||
Allowance Balance [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 0 | 0 | |||||||||||
Ending balance, Collectively evaluated for impairment | 132 | 179 | |||||||||||
Total | $ 132 | $ 179 | $ 179 | $ 157 | $ 132 | $ 179 | $ 157 | 132 | 179 | ||||
Gross Loans [Abstract] | |||||||||||||
Ending balance, individually evaluated for impairment | 0 | 0 | |||||||||||
Ending balance, Collectively evaluated for impairment | 11,895 | 13,723 | |||||||||||
Total | $ 11,895 | $ 13,723 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses, Loan Portfolio Based on Internal Rating Category (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | $ 708,668 | $ 601,902 |
1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 678,048 | 544,956 |
2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 5,850 | 44,662 |
3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 13,652 | 3,207 |
4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 11,118 | 9,077 |
Construction & Development [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 70,628 | 87,267 |
Construction & Development [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 70,628 | 84,485 |
Construction & Development [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 2,782 |
Construction & Development [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Construction & Development [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
1-4 Family Commercial [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 34,160 | 33,278 |
1-4 Family Commercial [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 33,622 | 29,942 |
1-4 Family Commercial [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 538 | 3,221 |
1-4 Family Commercial [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
1-4 Family Commercial [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 115 |
Commercial Real Estate - Other [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 273,278 | 156,396 |
Commercial Real Estate - Other [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 267,437 | 154,353 |
Commercial Real Estate - Other [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 1,559 |
Commercial Real Estate - Other [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Commercial Real Estate - Other [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 5,841 | 484 |
Commercial & Industrial [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 260,762 | 248,394 |
Commercial & Industrial [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 241,176 | 204,671 |
Commercial & Industrial [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 5,312 | 36,342 |
Commercial & Industrial [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 11,524 | 0 |
Commercial & Industrial [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 2,750 | 7,381 |
Agricultural [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 57,945 | 62,844 |
Agricultural [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 53,290 | 57,782 |
Agricultural [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 758 |
Agricultural [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 2,128 | 3,207 |
Agricultural [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 2,527 | 1,097 |
Consumer [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 11,895 | 13,723 |
Consumer [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 11,895 | 13,723 |
Consumer [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Consumer [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Consumer [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses, Loan Portfolio Aging Analysis of Recorded Investment in Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | $ 702 | $ 54 |
Current | 707,966 | 601,848 |
Total | 708,668 | 601,902 |
Total Loans > 90 Days & Accruing | 612 | 0 |
30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 90 | 49 |
60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 5 |
Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 612 | 0 |
Construction & Development [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Current | 70,628 | 87,267 |
Total | 70,628 | 87,267 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Construction & Development [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Construction & Development [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Construction & Development [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
1 - 4 Family Real Estate [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 8 |
Current | 34,160 | 33,270 |
Total | 34,160 | 33,278 |
Total Loans > 90 Days & Accruing | 0 | 0 |
1 - 4 Family Real Estate [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 8 |
1 - 4 Family Real Estate [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
1 - 4 Family Real Estate [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Commercial Real Estate - Other [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Current | 273,278 | 156,396 |
Total | 273,278 | 156,396 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Commercial Real Estate - Other [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Commercial Real Estate - Other [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Commercial Real Estate - Other [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Commercial & Industrial [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 14 | 5 |
Current | 260,748 | 248,389 |
Total | 260,762 | 248,394 |
Total Loans > 90 Days & Accruing | 14 | 0 |
Commercial & Industrial [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Commercial & Industrial [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 5 |
Commercial & Industrial [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 14 | 0 |
Agricultural [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 598 | 0 |
Current | 57,347 | 62,844 |
Total | 57,945 | 62,844 |
Total Loans > 90 Days & Accruing | 598 | 0 |
Agricultural [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Agricultural [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Agricultural [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 598 | 0 |
Consumer [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 90 | 41 |
Current | 11,805 | 13,682 |
Total | 11,895 | 13,723 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Consumer [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 90 | 41 |
Consumer [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Consumer [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses, Impaired Loans and TDR's (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Loans [Abstract] | ||
Unpaid principal balance | $ 11,118 | $ 10,821 |
Recorded investment with no allowance | 8,526 | 10,077 |
Recorded investment with an allowance | 1,809 | 506 |
Total recorded investment | 10,335 | 10,583 |
Related allowance | 26 | 46 |
Average recorded investment | 10,596 | 8,912 |
Interest income recognized | 895 | 795 |
Troubled Debt Restructurings [Abstract] | ||
Troubled debt restructurings post modification recorded investment | 0 | 0 |
Troubled debt restructurings modified in the past twelve months that subsequently defaulted recorded investment | 2,700 | |
Construction & Development [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 0 | 0 |
Recorded investment with no allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Total recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Interest income recognized | 0 | 0 |
Commercial Loan [Member] | ||
Troubled Debt Restructurings [Abstract] | ||
TDR's loans impaired | 501 | |
1 - 4 Family Real Estate [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 0 | 115 |
Recorded investment with no allowance | 0 | 115 |
Recorded investment with an allowance | 0 | 0 |
Total recorded investment | 0 | 115 |
Related allowance | 0 | 0 |
Average recorded investment | 208 | 82 |
Interest income recognized | 0 | 4 |
Commercial Real Estate - Other [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 5,841 | 1,990 |
Recorded investment with no allowance | 4,032 | 1,506 |
Recorded investment with an allowance | 1,809 | 484 |
Total recorded investment | 5,841 | 1,990 |
Related allowance | 26 | 32 |
Average recorded investment | 2,557 | 440 |
Interest income recognized | 440 | 148 |
Commercial & Industrial [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 2,750 | 7,614 |
Recorded investment with no allowance | 2,750 | 7,359 |
Recorded investment with an allowance | 0 | 22 |
Total recorded investment | 2,750 | 7,381 |
Related allowance | 0 | 14 |
Average recorded investment | 5,495 | 7,049 |
Interest income recognized | 281 | 560 |
Troubled Debt Restructurings [Abstract] | ||
TDR's loans impaired | 1,810 | 501 |
Agricultural [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 2,527 | 1,097 |
Recorded investment with no allowance | 1,744 | 1,097 |
Recorded investment with an allowance | 0 | 0 |
Total recorded investment | 1,744 | 1,097 |
Related allowance | 0 | 0 |
Average recorded investment | 2,238 | 1,313 |
Interest income recognized | 174 | 82 |
Troubled Debt Restructurings [Abstract] | ||
Troubled debt restructurings modified in the past twelve months that subsequently defaulted recorded investment | 900 | |
Consumer [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 0 | 5 |
Recorded investment with no allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Total recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 98 | 28 |
Interest income recognized | 0 | 1 |
Commercial Real Estate [Member] | ||
Troubled Debt Restructurings [Abstract] | ||
TDR's loans impaired | 2,721 | $ 675 |
Troubled debt restructurings modified in the past twelve months that subsequently defaulted recorded investment | $ 1,800 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses, Information Regarding Nonperforming Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Allowance for Loan Losses [Abstract] | |||
Nonaccrual loans | $ 1,809 | $ 2,615 | |
Troubled-debt restructurings | [1] | 912 | 0 |
Accruing loans 90 or more days past due | 612 | 0 | |
Total nonperforming loans | 3,333 | 2,615 | |
Commercial & Industrial [Member] | |||
Loans and Allowance for Loan Losses [Abstract] | |||
Accruing loans 90 or more days past due | 14 | 0 | |
Troubled Debt Restructurings [Abstract] | |||
TDR's loans impaired | $ 1,810 | $ 501 | |
[1] | $501,000 and $861,000 of TDRs as of December 31, 2018 and 2017, respectively, are included in the nonaccrual loans balance in the line above |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Premises and equipment [Abstract] | ||
Gross premises and equipment | $ 12,819 | $ 10,790 |
Less accumulated depreciation | (3,195) | (3,037) |
Net premises and equipment | 9,624 | 7,753 |
Land, Buildings and Improvements [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | 9,942 | 8,414 |
Furniture and Equipment [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | 2,117 | 1,654 |
Automobiles [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | $ 760 | $ 722 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets, Gross [Abstract] | |||
Amortization expense | $ 206 | $ 206 | $ 206 |
Estimated Amortization Expenses [Abstract] | |||
2020 | 206 | ||
2021 | 206 | ||
2022 | 206 | ||
2023 | 160 | ||
Total | 778 | ||
Core Deposit Intangible [Member] | |||
Intangible Assets, Gross [Abstract] | |||
Gross Carrying Amount | 2,061 | 2,061 | |
Accumulated Amortization | $ (1,283) | $ (1,077) |
Interest-Bearing Deposits (Deta
Interest-Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest-Bearing Deposits [Abstract] | ||
Interest bearing time deposits in denominations of $250,000 or more | $ 57,000 | $ 58,200 |
Scheduled maturities of interest-bearing time deposits [Abstract] | ||
2020 | 156,283 | |
2021 | 34,775 | |
2022 | 9,535 | |
2023 | 1,945 | |
Time Deposits | $ 202,538 |
Income Taxes, (Benefit)_Provisi
Income Taxes, (Benefit)/Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal [Abstract] | |||||||||||
Current | $ 5,516 | $ 1,563 | |||||||||
Deferred | 0 | (1,036) | |||||||||
Total federal tax provision | 5,516 | 527 | |||||||||
State [Abstract] | |||||||||||
Current | 1,308 | 303 | |||||||||
Deferred | 20 | (33) | |||||||||
Total state tax provision | 1,328 | 270 | |||||||||
Total income tax provision | $ 1,879 | $ 1,556 | $ 1,704 | $ 1,705 | $ 1,192 | $ (395) | $ 0 | $ 0 | $ 6,844 | $ 797 | $ 0 |
Income Taxes, Provision for Inc
Income Taxes, Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||||||||||
Statutory federal rate | 21.00% | 21.00% | |||||||||
Provision for Income Taxes [Abstract] | |||||||||||
Statutory U.S. Federal Income Tax | $ 3,160 | $ 5,417 | |||||||||
Increase (decrease) resulting from [Abstract] | |||||||||||
State Taxes | 1,048 | 213 | |||||||||
Benefit of S corporation status | 0 | (3,933) | |||||||||
Permanent Differences | 2,327 | 0 | |||||||||
Conversion as of September 24, 2018 to C corporation | 0 | (863) | |||||||||
Other | 309 | (37) | |||||||||
Total income tax provision | $ 1,879 | $ 1,556 | $ 1,704 | $ 1,705 | $ 1,192 | $ (395) | $ 0 | $ 0 | $ 6,844 | $ 797 | $ 0 |
Income Taxes, Deferred Tax Asse
Income Taxes, Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets [Abstract] | ||
Allowance for loan losses | $ 1,918 | $ 1,942 |
Non-accrual loans | 60 | 0 |
Deferred revenue | 165 | 0 |
Other | 0 | 80 |
Deferred compensation | 78 | 38 |
Total deferred tax assets | 2,221 | 2,060 |
Deferred tax liabilities [Abstract] | ||
Property and equipment | (320) | (268) |
Intangible assets | (202) | (220) |
Prepaid expenses | (122) | (177) |
Method change IRC 481(a) | (476) | (254) |
Other | (12) | (72) |
Total deferred tax liabilities | (1,132) | (991) |
Net deferred tax assets | $ 1,089 | $ 1,069 |
Income Taxes, Uncertain Tax Pos
Income Taxes, Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Interest or penalties related to uncertain tax positions | $ 0 | $ 0 | $ 0 |
Uncertain Tax Positions [Roll Forward] | |||
Balance at beginning of period | 13 | 0 | |
Additions for positions taken in prior years | 0 | 15 | |
Reductions for positions taken in prior years | 0 | (2) | |
Balance at end of period | $ 13 | $ 13 |
Letters of Credit (Details)
Letters of Credit (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Letters of Credit [Abstract] | ||
Outstanding letters of credit | $ 1,300 | $ 1,500 |
Loans pledged as collateral | $ 73,000 |
Advances and Borrowings (Detail
Advances and Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Advances and Borrowings [Abstract] | ||
Maximum borrowing capacity | $ 71.7 | |
Advances from FHLB | $ 0 | $ 0 |
Shareholders' Equity, Repurchas
Shareholders' Equity, Repurchase Plan (Details) - Repurchase Plan [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 05, 2019 | |
Stock Repurchase Program [Abstract] | |||
Number of shares authorized to purchase (in shares) | 500,000 | ||
Number of shares repurchased (in shares) | 0 | 0 | |
Average price of shares repurchased (in dollars per share) | $ 0 | $ 0 | |
Shares remaining to be repurchased (in shares) | 500,000 | 0 |
Shareholders' Equity, Actual Ca
Shareholders' Equity, Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 105,137 | $ 92,693 |
Total capital to risk-weighted assets, actual ratio | 15.25% | 15.86% |
Total capital to risk-weighted assets, minimum capital requirements amount | $ 55,157 | $ 46,751 |
Total capital to risk-weighted assets, minimum capital requirements ratio | 8.00% | 8.00% |
Total capital to risk-weighted assets, capital conservation buffer amount | $ 72,393 | $ 57,709 |
Total capital to risk-weighted assets, capital conservation buffer ratio | 10.50% | 9.875% |
Tier I capital to risk-weighted assets, actual amount | $ 97,291 | $ 85,382 |
Tier I capital to risk-weighted assets, actual ratio | 14.11% | 14.61% |
Tier I capital to risk-weighted assets, minimum capital requirements amount | $ 41,368 | $ 35,063 |
Tier I capital to risk-weighted assets, minimum capital requirements ratio | 6.00% | 6.00% |
Tier I capital to risk-weighted assets, minimum capital conservation buffer amount | $ 58,604 | $ 46,021 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer ratio | 8.50% | 7.875% |
CET I capital to risk-weighted assets, actual amount | $ 97,291 | $ 85,382 |
CET I capital to risk-weighted assets, actual ratio | 14.11% | 14.61% |
CET I capital to risk-weighted assets, minimum capital requirements amount | $ 31,026 | $ 26,298 |
CET I capital to risk-weighted assets, minimum capital requirements ratio | 4.50% | 4.50% |
CET I capital to risk-weighted assets, capital conservation buffer amount | $ 48,262 | $ 37,255 |
CET I capital to risk-weighted assets, capital conservation buffer ratio | 7.00% | 6.375% |
Tier I capital to average assets, actual amount | $ 97,291 | $ 85,382 |
Tier I capital to average assets, actual ratio | 11.53% | 11.13% |
Tier I capital to average assets, minimum capital requirements amount | $ 33,833 | $ 30,684 |
Tier I capital to average assets, minimum capital requirements ratio | 4.00% | 4.00% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 106,148 | $ 93,704 |
Total capital to risk-weighted assets, actual ratio | 15.42% | 16.03% |
Total capital to risk-weighted assets, minimum capital requirements amount | $ 55,076 | $ 46,751 |
Total capital to risk-weighted assets, minimum capital requirements ratio | 8.00% | 8.00% |
Total capital to risk-weighted assets, capital conservation buffer amount | $ 72,287 | $ 57,709 |
Total capital to risk-weighted assets, capital conservation buffer ratio | 10.50% | 9.875% |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action amount | $ 68,845 | $ 58,439 |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action ratio | 10.00% | 10.00% |
Tier I capital to risk-weighted assets, actual amount | $ 98,302 | $ 86,393 |
Tier I capital to risk-weighted assets, actual ratio | 14.28% | 14.78% |
Tier I capital to risk-weighted assets, minimum capital requirements amount | $ 41,307 | $ 35,063 |
Tier I capital to risk-weighted assets, minimum capital requirements ratio | 6.00% | 6.00% |
Tier I capital to risk-weighted assets, minimum capital conservation buffer amount | $ 58,518 | $ 46,021 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer ratio | 8.50% | 7.875% |
Tier I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action amount | $ 55,076 | $ 46,751 |
Tier I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action ratio | 8.00% | 8.00% |
CET I capital to risk-weighted assets, actual amount | $ 98,302 | $ 86,393 |
CET I capital to risk-weighted assets, actual ratio | 14.28% | 14.78% |
CET I capital to risk-weighted assets, minimum capital requirements amount | $ 30,980 | $ 26,298 |
CET I capital to risk-weighted assets, minimum capital requirements ratio | 4.50% | 4.50% |
CET I capital to risk-weighted assets, capital conservation buffer amount | $ 48,192 | $ 37,255 |
CET I capital to risk-weighted assets, capital conservation buffer ratio | 7.00% | 6.375% |
CET I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action amount | $ 44,749 | $ 37,985 |
CET I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action ratio | 6.50% | 6.50% |
Tier I capital to average assets, actual amount | $ 98,302 | $ 86,393 |
Tier I capital to average assets, actual ratio | 11.65% | 11.26% |
Tier I capital to average assets, minimum capital requirements amount | $ 33,793 | $ 30,684 |
Tier I capital to average assets, minimum capital requirements ratio | 4.00% | 4.00% |
Tier I capital to average assets, minimum to be well capitalized under prompt corrective action amount | $ 42,241 | $ 38,355 |
Tier I capital to average assets, minimum to be well capitalized under prompt corrective action ratio | 5.00% | 5.00% |
Shareholders' Equity, Payout Re
Shareholders' Equity, Payout Restrictions Based on Capital Conservation Buffer (Details) $ in Thousands | Dec. 31, 2019USD ($) | |
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Retained earnings available for dividend declaration | $ 34,600 | |
Greater than 2.5% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | [1] | |
Less than or Equal to 2.5% and Greater than 1.875% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | 60.00% | |
Less than or Equal to 1.875% and Greater than 1.25% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | 40.00% | |
Less than or Equal to 1.25% and Greater than 0.625% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | 20.00% | |
Less than or Equal to 0.625% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | 0.00% | |
[1] | No payout limitations applies. |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Loans [Roll Forward] | |||
Balance Beginning of the Period | $ 6,897 | $ 6,684 | |
Additions | 2,613 | 7,319 | |
Collections/ Terminations | (8,455) | (7,106) | |
Balance End of the Period | 1,055 | 6,897 | $ 6,684 |
Haines Realty Investments Company, LLC [Member] | |||
Sale of subsidiary [Abstract] | |||
Lease expense | $ 184 | $ 184 | $ 184 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 05, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Common Stock [Member] | ||||
Share-based Compensation [Abstract] | ||||
Shares acquired and canceled (in shares) | (149,425) | 0 | 0 | |
Shares acquired and canceled | $ (1) | $ 0 | $ 0 | |
Common Stock [Member] | Employees [Member] | ||||
Share-based Compensation [Abstract] | ||||
Shares acquired and canceled (in shares) | (149,425) | |||
Retained Earnings [Member] | ||||
Share-based Compensation [Abstract] | ||||
Shares acquired and canceled | $ (2,645) | 0 | 0 | |
Retained Earnings [Member] | Employees [Member] | ||||
Share-based Compensation [Abstract] | ||||
Percentage of employee's compensation matched by company | 5.00% | |||
Defined benefit plan, employer contribution | $ 223 | 198 | 178 | |
Percentage of contribution in shares by largest shareholder | 6.50% | |||
Number of shares contributed by the largest shareholder (in shares) | 656,925 | |||
Shares acquired and canceled | (2,645) | |||
Stock-based compensation expense | 12,116 | 154 | $ 0 | |
Executive Officers [Member] | ||||
Share-based Compensation [Abstract] | ||||
Stock-based compensation expense | 11,800 | |||
2018 Equity Incentive Plan [Member] | ||||
Share-based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 154 | $ 628 | ||
Unearned stock-based compensation expense [Abstract] | ||||
Risk-free interest rate | 2.48% | |||
Dividend yield | 2.20% | |||
Stock price volatility | 31.14% | |||
Expected term | 7 years 4 days | |||
2018 Equity Incentive Plan [Member] | Stock Option [Member] | ||||
Share-based Compensation [Abstract] | ||||
Unrecognized compensation expense | $ 383 | |||
Period for recognition of compensation cost not yet recognized | 4 years | |||
Stock Option Activity [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 150,000 | |||
Options granted (in shares) | 20,500 | |||
Options exercised (in shares) | 0 | |||
Options forfeited (in shares) | (7,500) | |||
Outstanding at end of period (in shares) | 163,000 | 150,000 | ||
Exercisable at end of period (in shares) | 35,625 | |||
Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding at beginning of period (in dollars per share) | $ 19 | |||
Options granted (in dollars per share) | 16.98 | |||
Options exercised (in dollars per share) | 0 | |||
Options forfeited (in dollars per share) | 19 | |||
Outstanding at end of period (in dollars per share) | $ 18.75 | $ 19 | ||
Options, Additional Disclosures [Abstract] | ||||
Weighted average remaining contractual term, Outstanding | 9 years 14 days | |||
Weighted average remaining contractual term, Exercisable | 0 years | |||
Aggregate intrinsic value, Outstanding | $ 37 | |||
Aggregate intrinsic value, Exercisable | $ 0 | |||
2018 Equity Incentive Plan [Member] | Stock Option [Member] | IPO [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 4 years | |||
2018 Equity Incentive Plan [Member] | RSUs [Member] | ||||
Share-based Compensation [Abstract] | ||||
Unrecognized compensation expense | $ 1,800 | |||
Period for recognition of compensation cost not yet recognized | 5 years | |||
Restricted Stock Units [Roll Forward] | ||||
Outstanding, beginning of the period (in shares) | 130,000 | |||
Shares granted (in shares) | 0 | |||
Shares settled (in shares) | (26,000) | |||
Shares forfeited (in shares) | 0 | |||
Outstanding, end of the period (in shares) | 104,000 | 130,000 | ||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $ 19.09 | |||
Shares granted (in dollars per share) | 0 | |||
Shares settled (in dollars per share) | 0 | |||
Shares forfeited (in dollars per share) | 0 | |||
End of the period balance (in dollars per share) | $ 19.09 | $ 19.09 | ||
2018 Equity Incentive Plan [Member] | RSUs [Member] | IPO [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 5 years |
Disclosures About Fair Value _3
Disclosures About Fair Value of Assets and Liabilities, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Recurring Basis [Member] | ||
Asset measured at fair value on recurring basis [Abstract] | ||
Assets measured at fair value | $ 0 | $ 0 |
Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 1,783 | 506 |
Foreclosed assets held for sale | 110 | |
Level 1 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Foreclosed assets held for sale | 0 | |
Level 2 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Foreclosed assets held for sale | 0 | |
Level 3 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | $ 1,783 | 506 |
Foreclosed assets held for sale | $ 110 |
Disclosures About Fair Value _4
Disclosures About Fair Value of Assets and Liabilities, Quantitative Information (Details) - Nonrecurring Basis [Member] $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | $ 1,783 | $ 506 |
Foreclosed assets held for sale | 110 | |
Level 3 [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | $ 1,783 | 506 |
Foreclosed assets held for sale | $ 110 | |
Level 3 [Member] | Appraisals from Comparable Properties [Member] | Estimated Cost to Sell [Member] | Minimum [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans, measurement input | 0.03 | 0.07 |
Foreclosed assets held for sale, measurement input | 0.07 | |
Level 3 [Member] | Appraisals from Comparable Properties [Member] | Estimated Cost to Sell [Member] | Maximum [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans, measurement input | 0.05 | 0.1 |
Foreclosed assets held for sale, measurement input | 0.1 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Assets and Liabilities, Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | $ 117,128 | $ 128,090 |
Interest-bearing time deposits in other banks | 30,147 | 31,759 |
Loans, net of allowance | 699,458 | 592,078 |
Mortgage loans held for sale | 1,031 | 512 |
Nonmarketable equity securities | 1,100 | 1,055 |
Interest receivable | 3,954 | 4,538 |
Financial Liabilities [Abstract] | ||
Deposits | 757,483 | 675,903 |
Interest payable | 636 | 461 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 117,128 | 128,090 |
Interest-bearing time deposits in other banks | 30,147 | 31,758 |
Loans, net of allowance | 700,481 | 592,399 |
Mortgage loans held for sale | 1,031 | 512 |
Nonmarketable equity securities | 1,100 | 1,055 |
Interest receivable | 3,954 | 4,538 |
Financial Liabilities [Abstract] | ||
Deposits | 757,520 | 675,017 |
Interest payable | 636 | 461 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 117,128 | 128,090 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Interest payable | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest-bearing time deposits in other banks | 30,147 | 31,758 |
Loans, net of allowance | 698,672 | 591,893 |
Mortgage loans held for sale | 1,031 | 512 |
Nonmarketable equity securities | 1,100 | 1,055 |
Interest receivable | 3,954 | 4,538 |
Financial Liabilities [Abstract] | ||
Deposits | 757,520 | 675,017 |
Interest payable | 636 | 461 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 1,809 | 506 |
Mortgage loans held for sale | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Interest payable | $ 0 | $ 0 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 194,797 | $ 136,093 |
Commitments to Extend Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | 191,459 | 135,015 |
Financial and Performance Standby Letters of Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 3,338 | $ 1,078 |
Significant Estimates and Con_2
Significant Estimates and Concentrations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 708,668 | $ 601,902 |
Goodwill | 1,000 | |
Hospitality Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | $ 39,400 | |
Hospitality Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 24.00% | |
Outstanding balance | $ 167,000 | |
Energy Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | $ 28,900 | |
Energy Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 14.00% | |
Outstanding balance | $ 102,100 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leases [Abstract] | |||
Rental expense | $ 770 | $ 596 | $ 421 |
Non-Cancelable Operating Leases [Abstract] | |||
2020 | 623 | ||
2021 | 451 | ||
2022 | 220 | ||
2023 | 174 | ||
Thereafter | 49 | ||
Future minimum rental commitments | $ 1,517 |
Parent-only Financial Stateme_3
Parent-only Financial Statements, Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | |||
Cash and due from banks | $ 117,128 | $ 128,090 | |
Goodwill | 1,000 | ||
Total assets | 866,392 | 770,511 | |
Liabilities and Shareholders' Equity [Abstract] | |||
Total liabilities | 766,266 | 682,045 | |
Total shareholders' equity | 100,126 | 88,466 | $ 69,176 |
Total liabilities and shareholders' equity | 866,392 | 770,511 | |
Parent Company [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 296 | 295 | |
Investment in bank subsidiary | 99,076 | 87,377 | |
Dividends receivable | 5,029 | 0 | |
Goodwill | 1,011 | 1,011 | |
Other assets | 0 | 39 | |
Total assets | 105,412 | 88,722 | |
Liabilities and Shareholders' Equity [Abstract] | |||
Other liabilities | 5,286 | 256 | |
Total liabilities | 5,286 | 256 | |
Total shareholders' equity | 100,126 | 88,466 | |
Total liabilities and shareholders' equity | $ 105,412 | $ 88,722 |
Parent-only Financial Stateme_4
Parent-only Financial Statements, Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Expense [Abstract] | |||||||||||
Interest expense | $ 9,516 | $ 7,169 | $ 4,739 | ||||||||
Income Before Taxes | $ 6,381 | $ (4,963) | $ 6,830 | $ 6,821 | $ 6,753 | $ 6,315 | $ 6,379 | $ 6,350 | 15,069 | 25,797 | 23,789 |
Income tax expense | 1,879 | 1,556 | 1,704 | 1,705 | 1,192 | (395) | 0 | 0 | 6,844 | 797 | 0 |
Net Income | $ 4,502 | $ (6,519) | $ 5,126 | $ 5,116 | $ 5,561 | $ 6,710 | $ 6,379 | $ 6,350 | 8,225 | 25,000 | 23,789 |
Parent Company [Member] | |||||||||||
Income [Abstract] | |||||||||||
Dividends received from subsidiary bank | 6,035 | 11,930 | 10,765 | ||||||||
Other | 155 | 0 | 0 | ||||||||
Total Income | 6,190 | 11,930 | 10,765 | ||||||||
Expense [Abstract] | |||||||||||
Interest expense | 0 | 175 | 238 | ||||||||
Other | 4 | 315 | 0 | ||||||||
Total expense | 4 | 490 | 238 | ||||||||
Income and equity in undistributed net income of bank subsidiary | 6,185 | 11,440 | 10,527 | ||||||||
Equity in undistributed net income of bank subsidiary | 2,040 | 13,521 | 13,262 | ||||||||
Income Before Taxes | 8,225 | 24,961 | 23,789 | ||||||||
Income tax expense | 0 | (39) | 0 | ||||||||
Net Income | $ 8,225 | $ 25,000 | $ 23,789 |
Parent-only Financial Stateme_5
Parent-only Financial Statements, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities [Abstract] | |||||||||||
Net income | $ 4,502 | $ (6,519) | $ 5,126 | $ 5,116 | $ 5,561 | $ 6,710 | $ 6,379 | $ 6,350 | $ 8,225 | $ 25,000 | $ 23,789 |
Items not requiring (providing) cash [Abstract] | |||||||||||
Stock-based compensation expense | 12,116 | 154 | 0 | ||||||||
Changes in [Abstract] | |||||||||||
Net cash provided by operating activities | 19,180 | 27,001 | 25,877 | ||||||||
Financing Activities [Abstract] | |||||||||||
Repayment of borrowed funds | 0 | (5,600) | (800) | ||||||||
Dividends paid | (1,006) | (56,155) | (9,749) | ||||||||
Net cash provided by financing activities | 77,928 | 38,608 | 65,726 | ||||||||
Increase in Cash and Due from Banks | (10,962) | 28,036 | 25,810 | ||||||||
Cash and Due from Banks, Beginning of Year | 128,090 | 100,054 | 128,090 | 100,054 | 74,244 | ||||||
Cash and Due from Banks, End of Year | 117,128 | 128,090 | 117,128 | 128,090 | 100,054 | ||||||
Supplemental Disclosure of Cash Flows Information [Abstract] | |||||||||||
Interest paid | 9,342 | 7,304 | 4,739 | ||||||||
Dividends declared and not paid | 5,029 | 0 | 5,029 | 0 | 0 | ||||||
Parent Company [Member] | |||||||||||
Operating Activities [Abstract] | |||||||||||
Net income | 8,225 | 25,000 | 23,789 | ||||||||
Items not requiring (providing) cash [Abstract] | |||||||||||
Equity in undistributed net income | (2,040) | (13,521) | (13,262) | ||||||||
Dividends receivable from subsidiary bank | (5,029) | 0 | 0 | ||||||||
Stock-based compensation expense | 0 | 154 | 0 | ||||||||
Changes in [Abstract] | |||||||||||
Accounts payable and accrued expenses | (149) | 0 | 0 | ||||||||
Other current assets and liabilities | 0 | 199 | (2) | ||||||||
Net cash provided by operating activities | 1,007 | 11,832 | 10,525 | ||||||||
Financing Activities [Abstract] | |||||||||||
Repayment of borrowed funds | 0 | (5,600) | (800) | ||||||||
Common stock issued, net of offering costs | 0 | 50,154 | 0 | ||||||||
Dividends paid | (1,006) | (56,155) | (9,749) | ||||||||
Net cash provided by financing activities | (1,006) | (11,601) | 10,549 | ||||||||
Increase in Cash and Due from Banks | 1 | 231 | (24) | ||||||||
Cash and Due from Banks, Beginning of Year | $ 295 | $ 64 | 295 | 64 | 88 | ||||||
Cash and Due from Banks, End of Year | 296 | 295 | 296 | 295 | 64 | ||||||
Supplemental Disclosure of Cash Flows Information [Abstract] | |||||||||||
Interest paid | 0 | 175 | 239 | ||||||||
Dividends declared and not paid | $ 5,029 | $ 0 | $ 5,029 | $ 0 | $ 0 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||
Net interest income | $ 10,657 | $ 10,600 | $ 10,583 | $ 10,353 | $ 10,530 | $ 9,801 | $ 9,439 | $ 9,861 | $ 42,193 | $ 39,631 | $ 38,131 | ||||
Provision for loan losses | 0 | 0 | 0 | 0 | 100 | 0 | 0 | 100 | 0 | 200 | 1,246 | ||||
Noninterest income | 281 | 509 | 295 | 223 | 262 | 319 | 486 | 264 | 1,308 | 1,331 | 1,435 | ||||
Noninterest expense | 4,557 | 16,072 | 4,048 | 3,755 | 3,939 | 3,805 | 3,546 | 3,675 | 28,432 | 14,965 | 14,531 | ||||
Income Before Taxes | 6,381 | (4,963) | 6,830 | 6,821 | 6,753 | 6,315 | 6,379 | 6,350 | 15,069 | 25,797 | 23,789 | ||||
Income tax expense (benefit) | 1,879 | 1,556 | 1,704 | 1,705 | 1,192 | (395) | 0 | 0 | 6,844 | 797 | 0 | ||||
Net Income | $ 4,502 | $ (6,519) | $ 5,126 | $ 5,116 | $ 5,561 | $ 6,710 | $ 6,379 | $ 6,350 | $ 8,225 | $ 25,000 | $ 23,789 | ||||
EPS [Abstract] | |||||||||||||||
Basic (in dollars per share) | $ 0.45 | $ (0.64) | $ 0.50 | $ 0.50 | $ 0.55 | [1] | $ 0.88 | [1] | $ 0.88 | [1] | $ 0.87 | [1] | $ 0.81 | $ 3.08 | $ 3.26 |
Diluted (in dollars per share) | $ 0.45 | $ (0.64) | $ 0.50 | $ 0.50 | $ 0.54 | [1] | $ 0.87 | [1] | $ 0.88 | [1] | $ 0.87 | [1] | $ 0.81 | $ 3.03 | $ 3.26 |
[1] | The quarterly EPS amounts, when added, may not coincide with the full fiscal year EPS reported on the Consolidated Statements of Income due to differences in the computed weighted average shares outstanding as well as rounding differences. |