Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 001-38656 | |
Entity Registrant Name | Bank7 Corp. | |
Entity Central Index Key | 0001746129 | |
Entity Incorporation, State or Country Code | OK | |
Entity Tax Identification Number | 20-0763496 | |
Entity Address, Address Line One | 1039 N.W. 63rd Street | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73116-7361 | |
City Area Code | 405 | |
Local Phone Number | 810-8600 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value Per Share | |
Trading Symbol | BSVN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,071,417 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 205,762 | $ 153,901 |
Interest-bearing time deposits in other banks | 5,229 | 16,412 |
Loans, net of allowance for loan losses of $9,306 and $9,639 at September 30, 2021 and December 31, 2020, respectively | 915,393 | 826,974 |
Loans held for sale, at fair value | 1,002 | 324 |
Premises and equipment, net | 8,775 | 9,151 |
Nonmarketable equity securities | 1,193 | 1,172 |
Goodwill and other intangibles, net | 1,446 | 1,583 |
Interest receivable and other assets | 7,430 | 7,152 |
Total assets | 1,146,230 | 1,016,669 |
Deposits | ||
Noninterest-bearing | 335,633 | 246,569 |
Interest-bearing | 682,741 | 658,945 |
Total deposits | 1,018,374 | 905,514 |
Income taxes payable | 0 | 9 |
Interest payable and other liabilities | 5,447 | 3,827 |
Total liabilities | 1,023,821 | 909,350 |
Shareholders' equity | ||
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, non-voting, par value $0.01 per share, 20,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,070,038 and 9,044,765 at September 30, 2021 and December 31, 2020 respectively | 91 | 90 |
Additional paid-in capital | 93,766 | 93,162 |
Retained earnings | 28,552 | 14,067 |
Total shareholders' equity | 122,409 | 107,319 |
Total liabilities and shareholders' equity | $ 1,146,230 | $ 1,016,669 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Allowance for loan losses | $ 9,306 | $ 9,639 |
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) | 9,070,038 | 9,044,765 |
Common stock, shares outstanding (in shares) | 9,070,038 | 9,044,765 |
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 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest Income | ||||
Loans, including fees | $ 13,927 | $ 12,777 | $ 41,377 | $ 39,268 |
Interest-bearing time deposits in other banks | 35 | 123 | 141 | 419 |
Other interest and dividend income | 46 | 26 | 114 | 303 |
Total interest income | 14,008 | 12,926 | 41,632 | 39,990 |
Interest Expense | ||||
Deposits | 729 | 1,325 | 2,376 | 5,028 |
Total interest expense | 729 | 1,325 | 2,376 | 5,028 |
Net Interest Income | 13,279 | 11,601 | 39,256 | 34,962 |
Provision for Loan Losses | 750 | 1,250 | 3,325 | 3,300 |
Net Interest Income After Provision for Loan Losses | 12,529 | 10,351 | 35,931 | 31,662 |
Noninterest Income | ||||
Secondary market income | 161 | 57 | 253 | 134 |
Service charges on deposit accounts | 141 | 104 | 380 | 318 |
Other | 275 | 173 | 860 | 513 |
Total noninterest income | 577 | 334 | 1,493 | 965 |
Noninterest Expense | ||||
Salaries and employee benefits | 2,946 | 2,505 | 8,685 | 7,576 |
Furniture and equipment | 218 | 224 | 651 | 658 |
Occupancy | 461 | 543 | 1,391 | 1,417 |
Data and item processing | 292 | 276 | 857 | 821 |
Accounting, marketing and legal fees | 150 | 135 | 447 | 338 |
Regulatory assessments | 162 | 164 | 464 | 281 |
Advertising and public relations | 76 | 62 | 181 | 360 |
Travel, lodging and entertainment | 102 | 50 | 309 | 146 |
Other | 372 | 625 | 1,213 | 1,463 |
Total noninterest expense | 4,779 | 4,584 | 14,198 | 13,060 |
Income Before Taxes | 8,327 | 6,101 | 23,226 | 19,567 |
Income tax expense | 2,063 | 1,661 | 5,753 | 5,040 |
Net Income | $ 6,264 | $ 4,440 | $ 17,473 | $ 14,527 |
Earnings per common share - basic (in dollars per share) | $ 0.69 | $ 0.48 | $ 1.93 | $ 1.53 |
Earnings per common share - diluted (in dollars per share) | $ 0.69 | $ 0.48 | $ 1.92 | $ 1.53 |
Weighted average common shares outstanding - basic (in shares) | 9,052,718 | 9,228,128 | 9,051,112 | 9,483,540 |
Weighted average common shares outstanding - diluted (in shares) | 9,105,255 | 9,228,128 | 9,078,671 | 9,483,540 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2019 | $ 101 | $ 92,391 | $ 7,634 | |
Balance (in shares) at Dec. 31, 2019 | 10,057,506 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 14,527 | $ 14,527 | ||
Shares issued for restricted stock units (in shares) | 19,437 | |||
Common stock acquired and canceled (in shares) | (835,254) | (835,254) | ||
Common stock acquired and canceled | (7,210) | |||
Shares issued for restricted stock units | $ (9) | |||
Stock-based compensation expense | 569 | |||
Cash dividends declared ($0.11 and $0.10 per share for the three months ended June 30, 2021 and 2020, respectively; $0.22 and $0.20 per share for the six months ended June 30, 2021 and 2020, respectively) | (2,773) | |||
Balance at Sep. 30, 2020 | $ 92 | 92,960 | 12,178 | $ 105,230 |
Balance (in shares) at Sep. 30, 2020 | 9,241,689 | |||
Balance at Jun. 30, 2020 | $ 92 | 92,762 | 8,765 | |
Balance (in shares) at Jun. 30, 2020 | 9,226,252 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 4,440 | 4,440 | ||
Shares issued for restricted stock units (in shares) | 19,437 | |||
Common stock acquired and canceled (in shares) | (4,000) | |||
Common stock acquired and canceled | (103) | |||
Shares issued for restricted stock units | $ 0 | |||
Stock-based compensation expense | 198 | |||
Cash dividends declared ($0.11 and $0.10 per share for the three months ended June 30, 2021 and 2020, respectively; $0.22 and $0.20 per share for the six months ended June 30, 2021 and 2020, respectively) | (924) | |||
Balance at Sep. 30, 2020 | $ 92 | 92,960 | 12,178 | 105,230 |
Balance (in shares) at Sep. 30, 2020 | 9,241,689 | |||
Balance at Dec. 31, 2020 | $ 90 | 93,162 | 14,067 | 107,319 |
Balance (in shares) at Dec. 31, 2020 | 9,044,765 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 17,473 | $ 17,473 | ||
Shares issued for restricted stock units (in shares) | 25,273 | |||
Common stock acquired and canceled (in shares) | 0 | 0 | ||
Common stock acquired and canceled | 0 | |||
Shares issued for restricted stock units | $ 1 | |||
Stock-based compensation expense | 604 | |||
Cash dividends declared ($0.11 and $0.10 per share for the three months ended June 30, 2021 and 2020, respectively; $0.22 and $0.20 per share for the six months ended June 30, 2021 and 2020, respectively) | (2,988) | |||
Balance at Sep. 30, 2021 | $ 91 | 93,766 | 28,552 | $ 122,409 |
Balance (in shares) at Sep. 30, 2021 | 9,070,038 | |||
Balance at Jun. 30, 2021 | $ 90 | 93,635 | 23,286 | |
Balance (in shares) at Jun. 30, 2021 | 9,050,606 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 6,264 | 6,264 | ||
Shares issued for restricted stock units (in shares) | 19,432 | |||
Common stock acquired and canceled (in shares) | 0 | |||
Common stock acquired and canceled | 0 | |||
Shares issued for restricted stock units | $ 1 | |||
Stock-based compensation expense | 131 | |||
Cash dividends declared ($0.11 and $0.10 per share for the three months ended June 30, 2021 and 2020, respectively; $0.22 and $0.20 per share for the six months ended June 30, 2021 and 2020, respectively) | (998) | |||
Balance at Sep. 30, 2021 | $ 91 | $ 93,766 | $ 28,552 | $ 122,409 |
Balance (in shares) at Sep. 30, 2021 | 9,070,038 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Unaudited Condensed Consolidated Statements of Shareholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.11 | $ 0.10 | $ 0.33 | $ 0.30 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities | ||
Net income | $ 17,473 | $ 14,527 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 775 | 815 |
Provision for loan losses | 3,325 | 3,300 |
Gain on sales of loans | (253) | (134) |
Stock-based compensation expense | 604 | 569 |
Gain on sale of premises and equipment | (11) | 0 |
Cash receipts from the sale of loans originated for sale | 13,274 | 6,922 |
Cash disbursements for loans originated for sale | (13,699) | (6,072) |
Deferred income tax benefit | (65) | (780) |
Changes in | ||
Interest receivable and other assets | (214) | (408) |
Interest payable and other liabilities | 1,611 | (223) |
Net cash provided by operating activities | 22,820 | 18,516 |
Investing Activities | ||
Maturities of interest-bearing time deposits in other banks | 11,183 | 21,190 |
Purchases of interest-bearing time deposits in other banks | 0 | (14,427) |
Net change in loans | (91,744) | (173,290) |
Purchases of premises and equipment | (253) | (423) |
Proceeds from sale of premises and equipment | 3 | 0 |
Change in nonmarketable equity securities | (21) | (65) |
Net cash used in investing activities | (80,832) | (167,015) |
Financing Activities | ||
Net change in deposits | 112,860 | 106,186 |
Cash distributions | (2,988) | (6,878) |
Common stock issued for restricted stock units | 1 | (7,219) |
Net cash provided by financing activities | 109,873 | 92,089 |
Increase in Cash and Due from Banks | 51,861 | (56,410) |
Cash and Due from Banks, Beginning of Period | 153,901 | 117,128 |
Cash and Due from Banks, End of Period | 205,762 | 60,718 |
Supplemental Disclosure of Cash Flows Information | ||
Interest paid | 2,480 | 5,301 |
Income taxes paid | 6,087 | 5,498 |
Dividends declared and not paid | $ 998 | $ 924 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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, Bank7 (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. Basis of Presentation The accompanying unaudited interim consolidated financial statements contained herein reflect all adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position, results of operations, and cash flows of the Company for the interim periods presented. All such adjustments are of a normal and recurring nature. There have been no significant changes in the accounting policies of the Company since December 31, 2020, the date of the most recent annual report. The condensed consolidated balance sheet of the Company as of December 31, 2020 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and notes normally included in the Company’s annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The information contained in the financial statements and footnotes included in Company’s annual report for the year ended December 31, 2020, should be referred to in connection with these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Share Repurchase Program During the nine months ended September 30, 2021, there were no repurchased shares under the Company’s share repurchase program. During the nine months ended September 30, 2020, 835,254 shares were repurchased under the Company’s share repurchase program at an average price of $8.70 per share. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank and its subsidiary, 1039 NW 63rd, LLC, which holds real estate utilized by the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. 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. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff 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. 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 unimpaired 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. Recent Accounting Pronouncements 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, 2021. 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 significant 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 fourth quarter of 2022. 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, 2022 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 March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) which provides relief for companies preparing for discontinuation of interest rates such as the London Interbank Offered Rate (“LIBOR”). On March 5, 2021, the U.K. Financial Conduct Authority (“FCA”) announced that the majority of LIBOR rates will no longer be published after December 31, 2021, although a number of key settings will continue until June 2023, to support the rundown of legacy contracts only. As a result, LIBOR should be discontinued as a reference rate. The main provisions for contract modifications include optional relief by allowing the modification as a continuation of the existing contract without additional analysis and other optional expedients regarding embedded features. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact our financial statements. Legislative and Regulatory Developments On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The CARES Act also includes a range of other provisions designed to support the U.S. economy and mitigate the impact of COVID-19 on financial institutions and their customers, including through the authorization of various programs and measures that the U.S. Department of the Treasury, the Small Business Administration, the Federal Reserve Board, and other federal banking agencies may or are required to implement. Further, in response to the COVID-19 outbreak, the Federal Reserve Board has implemented or announced a number of facilities to provide emergency liquidity to various segments of the U.S. economy and financial market. In April 2020, the Company began originating loans to qualified small businesses under the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). PPP loans are fully guaranteed by the SBA and thus have a zero percent risk weight under applicable risk-based capital rules. As of September 30, 2021, the Company had 73 PPP loans with balances totaling $27.3 million. The extent to which the COVID-19 pandemic impacts the Company’s business, liquidity, asset valuations, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. Moreover, the effects of the COVID-19 pandemic may have a material adverse effect on all or a combination of valuation impairments on the Company's intangible assets, loans, or deferred tax assets. |
Recent Events, Including Merger
Recent Events, Including Mergers and Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Recent Events, Including Mergers and Acquisitions [Abstract] | |
Recent Events, Including Mergers and Acquisitions | Note 2: Recent Events, Including Mergers and Acquisitions On October 6, 2021, the Company entered into a definitive agreement to acquire Cornerstone Bank ("Cornerstone") and its parent company, Watonga Bancshares, Inc. for estimated cash consideration of $32.0 million. Pursuant to the terms of the agreement, Cornerstone will merge with and into the Bank, with the Bank continuing as the surviving entity. The Company expects the purchase to close during the fourth quarter of 2021 and is subject to certain closing conditions including customary regulatory approvals. The purchase has not closed as of report date, November 5, 2021. |
Restriction on Cash and Due fro
Restriction on Cash and Due from Banks | 9 Months Ended |
Sep. 30, 2021 | |
Restriction on Cash and Due from Banks [Abstract] | |
Restriction on Cash and Due from Banks | Note 3: Restriction on Cash and Due from Banks On March 26, 2020, the Federal Reserve Board reduced reserve requirement ratios to zero percent, effectively eliminating reserve requirements for all depository institutions. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
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 divided 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 The following table shows the computation of basic and diluted earnings per share: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (Dollars in thousands, except per share amounts) Numerator Net income $ 6,264 $ 4,440 $ 17,473 $ 14,527 Denominator Weighted-average shares outstanding for basic earnings per share 9,052,718 9,228,128 9,051,112 9,483,540 Dilutive effect of stock compensation (1) 52,537 - 27,559 - Denominator for diluted earnings per share 9,105,255 9,228,128 9,078,671 9,483,540 Earnings per common share Basic $ 0.69 $ 0.48 $ 1.93 $ 1.53 Diluted $ 0.69 $ 0.48 $ 1.92 $ 1.53 (1) The following have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented: Nonqualified stock options outstanding of 264,000 and 185,250 a s of September 30, 2021 and 2020, respectively; Restricted stock units o or the nine months ended September 30, 202 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020, are as follows (dollars in thousands): September 30, 2021 December 31, 2020 Construction & development $ 133,732 $ 107,855 1 - 4 family real estate 38,633 29,079 Commercial real estate - other 291,583 290,489 Total commercial real estate 463,948 427,423 Commercial & industrial 396,974 351,248 Agricultural 59,343 50,519 Consumer 7,783 9,898 Gross loans 928,048 839,088 Less allowance for loan losses (9,306 ) (9,639 ) Less deferred loan fees (3,349 ) (2,475 ) Net loans $ 915,393 $ 826,974 Included in the commercial & industrial loan balance are $27.3 million and $44.9 million of loans that were originated under the SBA PPP program as of September 30, 2021 and December 31, 2020, respectively. The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three months ended September 30, 2021 and 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30 2021 Balance, beginning of period $ 1,631 $ 448 $ 4,109 $ 5,189 $ 825 $ 104 $ 12,306 Charge-offs - - - (3,750 ) - (2 ) (3,752 ) Recoveries - - - 1 - 1 2 Net (charge-offs) recoveries - - - (3,749 ) - (1 ) (3,750 ) Provision (credit) for loan losses (290 ) (61 ) (1,185 ) 2,541 (230 ) (25 ) 750 Balance, end of period $ 1,341 $ 387 $ 2,924 $ 3,981 $ 595 $ 78 $ 9,306 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30 2020 Balance, beginning of period $ 1,086 $ 349 $ 3,358 $ 4,380 $ 579 $ 126 $ 9,878 Charge-offs - - - - - (1 ) (1 ) Recoveries - - - 4 - - 4 Net (charge-offs) recoveries - - - 4 - (1 ) 3 Provision (credit) for loan losses 281 43 202 662 58 4 1,250 Balance, end of period $ 1,367 $ 392 $ 3,560 $ 5,046 $ 637 $ 129 $ 11,131 The following table presents, by portfolio segment, the activity in the allowance for loan losses for the nine months ended September 30, 2021 and 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30, 2021 Balance, beginning of period $ 1,239 $ 334 $ 3,337 $ 4,035 $ 580 $ 114 $ 9,639 Charge-offs - - - (3,750 ) - (63 ) (3,813 ) Recoveries - - - 15 138 2 155 Net (charge-offs) recoveries - - - (3,735 ) 138 (61 ) (3,658 ) Provision (credit) for loan losses 102 53 (413 ) 3,681 (123 ) 25 3,325 Balance, end of period $ 1,341 $ 387 $ 2,924 $ 3,981 $ 595 $ 78 $ 9,306 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30, 2020 Balance, beginning of period $ 782 $ 378 $ 3,025 $ 2,887 $ 642 $ 132 $ 7,846 Charge-offs - - - (39 ) - (1 ) (40 ) Recoveries - 2 - 13 10 - 25 Net (charge-offs) recoveries - 2 - (26 ) 10 (1 ) (15 ) Provision (credit) for loan losses 585 12 535 2,185 (15 ) (2 ) 3,300 Balance, end of period $ 1,367 $ 392 $ 3,560 $ 5,046 $ 637 $ 129 $ 11,131 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 September 30, 2021 and December 31, 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30 2021 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ - $ 259 $ - $ - $ 259 Collectively evaluated for impairment 1,341 387 2,924 3,722 595 78 9,047 Total $ 1,341 $ 387 $ 2,924 $ 3,981 $ 595 $ 78 $ 9,306 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 14,647 $ 9,635 $ - $ - $ 24,282 Collectively evaluated for impairment 133,732 38,633 276,936 387,339 59,343 7,783 903,766 Total $ 133,732 $ 38,633 $ 291,583 $ 396,974 $ 59,343 $ 7,783 $ 928,048 December 31, 2020 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ - $ 177 $ - $ - $ 177 Collectively evaluated for impairment 1,239 334 3,337 3,858 580 114 9,462 Total $ 1,239 $ 334 $ 3,337 $ 4,035 $ 580 $ 114 $ 9,639 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 8,054 $ 14,601 $ 468 $ - $ 23,123 Collectively evaluated for impairment 107,855 29,079 282,435 336,647 50,051 9,898 815,965 Total $ 107,855 $ 29,079 $ 290,489 $ 351,248 $ 50,519 $ 9,898 $ 839,088 Internal Risk Categories Each loan segment is made up of loan categories possessing similar risk characteristics. Risk characteristics applicable to each segment of the loan portfolio are described as follows: Real Estate – The real estate portfolio consists of residential and commercial properties. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within the Company’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial real estate loans in this category typically involve larger principal amounts and are repaid primarily from the cash flow of a borrower’s principal business operation, the sale of the real estate or income independent of the loan purpose. Credit risk in these loans is driven by the creditworthiness of a borrower, property values, the local economy and other economic conditions impacting a borrower’s business or personal income. Commercial & Industrial – The commercial portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. Agricultural – Loans secured by agricultural assets are generally made for the purpose of acquiring land devoted to crop production, cattle or poultry or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income or sales of the property. Credit risk in these loans may be impacted by crop and commodity prices, the creditworthiness of a borrower, and changes in economic conditions which might affect underlying property values and the local economies in the Company’s market areas. Consumer – The consumer loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Residential loans in this category are generally secured by owner occupied 1–4 family residences. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors, such as unemployment and general economic conditions in the Company’s market area and the creditworthiness of a borrower. 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) – These loans are still considered “Pass” credits; however, various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in loan documentation, or other risk issues determined by the Lending Officer, Commercial Loan Committee (CLC), or Credit Quality Committee (CQC) warrant a heightened sense and frequency of monitoring. • Grade 3 (Special Mention) – These loans must have observable weaknesses or evidence of imprudent handling or structural issues. The weaknesses require close attention and the remediation of those weaknesses is necessary. No risk of probable loss exists. Credits in this category are expected to quickly migrate to a “2” or a “4” as this is viewed as a transitory loan grade. • Grade 4 (Substandard) – These loans are not adequately protected by the sound worth and debt service capacity of the borrower, but may be well secured. They have defined weaknesses relative to cash flow, collateral, financial condition, or other factors that might jeopardize repayment of all of the principal and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not remediated. 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 September 30, 2021. The following table presents the credit risk profile of the Company’s loan portfolio based on internal rating category as of September 30, 2021 and December 31, 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30, 2021 Grade 1 (Pass) $ 133,732 $ 38,633 $ 237,826 $ 375,851 $ 59,025 $ 7,783 $ 852,850 2 (Watch) - - 14,976 5,618 - - 20,594 3 (Special Mention) - - 24,134 5,870 318 - 30,322 4 (Substandard) - - 14,647 9,635 - - 24,282 Total $ 133,732 $ 38,633 $ 291,583 $ 396,974 $ 59,343 $ 7,783 $ 928,048 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2020 Grade 1 (Pass) $ 107,855 $ 28,711 $ 248,194 $ 328,656 $ 50,051 $ 9,898 $ 773,365 2 (Watch) - 368 24,155 7,691 - - 32,214 3 (Special Mention) - - 10,086 300 - - 10,386 4 (Substandard) - - 8,054 14,601 468 - 23,123 Total $ 107,855 $ 29,079 $ 290,489 $ 351,248 $ 50,519 $ 9,898 $ 839,088 The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2021 and December 31, 2020 (dollars in thousands): Past Due Total Loans 30–59 Days 60–89 Days Greater than 90 Days Total Current Total Loans > 90 Days & Accruing September 30 2021 Construction & development $ - $ - $ - $ - $ 133,732 $ 133,732 $ - 1 - 4 Family Real Estate - - - - 38,633 38,633 - Commercial Real Estate - other - - - - 291,583 291,583 - Commercial & industrial - - 6,910 6,910 390,064 396,974 - Agricultural - - 102 102 59,241 59,343 102 Consumer 100 - - 100 7,683 7,783 - Total $ 100 $ - $ 7,012 $ 7,112 $ 920,936 $ 928,048 $ 102 December 31, 2020 Construction & development $ 714 $ - $ - $ 714 $ 107,141 $ 107,855 $ - 1 - 4 Family Real Estate - - - - 29,079 29,079 - Commercial Real Estate - other 1,444 - 1,960 3,404 287,085 290,489 1,960 Commercial & industrial - - - - 351,248 351,248 - Agricultural - - - - 50,519 50,519 - Consumer 193 - - 193 9,705 9,898 - Total $ 2,351 $ - $ 1,960 $ 4,311 $ 834,777 $ 839,088 $ 1,960 The following table presents impaired loans as of September 30, 2021 and December 31, 2020 (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 Average Recorded Investment Interest Income Recognized Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 September 30 2021 Construction & development $ - $ - $ - $ - $ - $ - $ - $ - $ - 1 - 4 Family Real Estate - - - - - - - - - Commercial Real Estate - other 14,647 14,647 - 14,647 - 14,700 228 10,989 682 Commercial & industrial 16,635 9,375 259 9,635 259 12,331 64 13,658 433 Agricultural - - - - - - - 215 - Consumer - - - - - - - 42 - Total $ 31,282 $ 24,022 $ 259 $ 24,282 $ 259 $ 27,031 $ 292 $ 24,904 $ 1,115 December 31, 2020 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Construction & development $ - $ - $ - $ - $ - $ - $ - $ - $ - 1 - 4 Family Real Estate - - - - - 1,133 15 3,732 47 Commercial Real Estate - other 8,353 8,054 - 8,054 - 5,160 144 2,121 274 Commercial & industrial 18,082 14,424 177 14,601 177 26,549 996 21,780 1,317 Agricultural 768 468 - 468 - 2,681 (54 ) 1,483 (13 ) Consumer - - - - - - - 1,590 - Total $ 27,203 $ 22,946 $ 177 $ 23,123 $ 177 $ 35,523 $ 1,101 $ 30,706 $ 1,625 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 September 30, 2021, the Company had $1.5 million of commercial real estate loans and $6.9 million of commercial industrial loans that were modified in troubled-debt restructurings and impaired, compared to $1.6 million of commercial real estate, $10.9 million of commercial and industrial, and $469,000 of agricultural loans that were modified in troubled-debt restructurings and impaired as of December 31, 2020. There were no newly modified troubled-debt restructurings during the There were no troubled-debt restructurings modified in the past nine months that subsequently defaulted for the period ended September 30, 2021. The following table represents information regarding nonperforming assets at September 30, 2021 and December 31, 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30 2021 Nonaccrual loans $ - $ - $ 2,650 $ 7,169 $ - $ - $ 9,819 Troubled-debt restructurings (1) - - - - - - - Accruing loans 90 or more days past due - - - - 102 - 102 Total nonperforming loans $ - $ - $ 2,650 $ 7,169 $ 102 $ - $ 9,921 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2020 Nonaccrual loans $ - $ - $ 3,043 $ 11,063 $ 469 $ - $ 14,575 Troubled-debt restructurings (1) - - - - - - - Accruing loans 90 or more days past due - - 1,960 - - - 1,960 Total nonperforming loans $ - $ - $ 5,003 $ 11,063 $ 469 $ - $ 16,535 (1) $8.36 million and $12.98 million of TDRs as of September 30, 2021 and December 31, 2020, respectively, are included in the nonaccrual loans balance in the line above. The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) January 1, 2022. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. As of September 30, 2021, one loan totaling $3.1 million was modified, related to COVID-19, which was not considered a troubled debt restructuring. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 6: Shareholders’ Equity On September 5, 2019, the Company adopted a Repurchase Plan (the “RP”). The RP initially authorized the repurchase of up to 500,000 shares of the Company’s common stock. On March 13, 2020, the Company’s Board of Directors approved a 500,000 share expansion, and on November 2, 2020, approved a 750,000 share expansion to the RP, for a total authorized under the RP. All shares repurchased under the RP have been retired and not held as treasury stock. The RP expired on September 5, 2021. On October 28, 2021, the Company adopted a new Repurchase Plan (the “New RP”) that authorizes the repurchase of up to 750,000 shares of the Company’s stock. Stock repurchases under the New 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: Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Number of shares repurchased - 835,254 - 38,160 Average price of shares repurchased $ - $ 8.56 $ - $ 8.96 Shares remaining to be repurchased - 164,746 - 164,746 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 September 30, 2021, 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 September 30, 2021, 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 below. There are no conditions or events since that notification that management believes have changed the Bank’s category. In April 2020, the Company began originating loans to qualified small businesses under the PPP administered by the SBA. Federal bank regulatory agencies have issued an interim final rule that permits banks to neutralize the regulatory capital effects of participating in the Paycheck Protection Program Lending Facility (the “PPP Facility”) and have clarified that PPP loans have a zero percent risk weight under applicable risk-based capital rules. Specifically, a bank may exclude all PPP loans pledged as collateral to the PPP Facility from its average total consolidated assets for the purposes of calculating its leverage ratio, while PPP loans that are not pledged as collateral to the PPP Facility will be included. The PPP loans of $27.3 million we originated are included in the calculation of leverage ratio as of September 30, 2021 as the Company did not utilize the PPP Facility for funding purpose s. 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 To Be Well Capitalized Under Prompt Corrective Action Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of September 30 2021 Total capital to risk-weighted assets Company $ 130,228 14.80 % $ 70,389 8.00 % $ 92,386 10.50 % N/A N/A Bank 130,228 14.82 70,308 8.00 92,280 10.50 $ 87,886 10.00 % Tier I capital to risk-weighted assets Company 120,922 13.74 52,792 6.00 74,789 8.50 N/A N/A Bank 120,922 13.76 52,731 6.00 74,703 8.50 70,308 8.00 CET I capital to risk-weighted assets Company 120,922 13.74 39,594 4.50 61,591 7.00 N/A N/A Bank 120,922 13.76 39,549 4.50 61,520 7.00 57,126 6.50 Tier I capital to average assets Company 120,922 11.50 42,071 4.00 N/A N/A N/A N/A Bank 120,922 11.51 42,030 4.00 N/A N/A 52,538 5.00 As of December 31, 2020 Total capital to risk-weighted assets Company $ 115,375 14.73 % $ 62,641 8.00 % $ 82,216 10.50 % N/A N/A Bank 115,335 14.75 62,563 8.00 82,114 10.50 $ 78,204 10.00 % Tier I capital to risk-weighted assets Company 105,736 13.50 46,981 6.00 66,556 8.50 N/A N/A Bank 105,696 13.51 46,922 6.00 66,473 8.50 62,563 8.00 CET I capital to risk-weighted assets Company 105,736 13.50 35,236 4.50 54,811 7.00 N/A N/A Bank 105,696 13.51 35,192 4.50 54,743 7.00 50,832 6.50 Tier I capital to average assets Company 105,736 10.78 39,218 4.00 N/A N/A N/A N/A Bank 105,696 10.78 39,233 4.00 N/A N/A 49,041 5.00 The federal banking agencies require that banking organizations meet several risk-based capital adequacy requirements. The current risk-based capital standards applicable to the Company and the Bank are based on the Basel III Capital Rules established by the Basel Committee on Banking Supervision (the “Basel Committee”). The Basel Committee is a committee of central banks and bank supervisors/regulators from the major industrialized countries that develops broad policy guidelines for use by each country’s supervisors in determining the supervisory policies they apply. The requirements are intended to ensure that banking organizations have adequate capital given the risk levels of assets and off-balance sheet financial instruments. The Basel III Capital Rules require the Bank and the Company to comply with four minimum capital standards: a Tier 1 leverage ratio of at least 4.0%; a CET1 to risk-weighted assets of 4.5%; a Tier 1 capital to risk-weighted assets of at least 6.0%; and a total capital to risk-weighted assets of at least 8.0%. The calculation of all types of regulatory capital is subject to definitions, deductions and adjustments specified in the regulations. The Basel III Capital Rules also require a “capital conservation buffer” of 2.5% above the regulatory minimum risk-based capital requirements. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of CET1 to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer) are subject to limitations on certain activities, including payment of dividends, share repurchases and discretionary bonuses to executive officers based on the amount of the shortfall. As of September 30, 2021, the Company’s and the Bank’s capital ratios exceeded the minimum capital adequacy guideline percentage requirements under the Basel III Capital Rules on a fully phased-in basis. The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At September 30, 2021, approximately $31.8 million of retained earnings was available for dividend declaration from the Bank without prior regulatory approval. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | Note 7: Related-Party Transactions At September 30, 2021 and December 31, 2020, the Company had loans outstanding to executive officers, directors, significant shareholders and their affiliates (related parties) approximating $0. A summary of the activity related to these loans is as follows (dollars in thousands): Balance Beginning of the Period Additions Collections/ Terminations Balance End of the Period Nine months ended September 30, 2021 $ - $ - $ - $ - Year ended December 31, 2020 $ 1,055 $ - $ (1,055 ) $ - 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. T he 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 $45,000 and $46,000 for the three months ended September 30, 2021 and 2020, respectively. Lease expense totaled $137,000 and $138,000 for the nine months ended September 30, 2021 and 2020. In addition, payroll and office sharing arrangements were in place between the Company and certain of its affiliate |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 8: 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 Company matching up to 5% of the employee’s salary. Employer contributions charged to expense for the three months ended September 30, 2021 and 2020 totaled $63,000 and $58,000, respectively. Employer contributions charged to expense for the nine months ended September 30, 2021 and 2020 totaled $204,000 and $173,000, respectively. Stock-Based Compensation The Company adopted a nonqualified incentive stock option plan (the “Incentive Plan”) in September 2018. The Incentive Plan will terminate in September 2028, if not extended. Compensation expense related to the Plan for the three months ended September 30, 2021 and 2020 totaled $279,000 and $198,000, respectively. Compensation expense related to the Plan for the nine months ended September 30, 2021 and 2020 totaled $784,000 and $569,000, respectively. The Company grants to employees and directors restricted stock units (RSUs) which vest ratably over either one three 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 Incentive Plan (dollar amounts in thousands, except per share data): Options Wgtd. Avg. Exercise Price Wgtd. Avg. Remaining Contractual Term Aggregate Intrinsic Value Nine Months Ended September 30, 2021 Outstanding at December 31, 2020 185,250 $ 18.73 Options Granted 80,500 14.31 Options Exercised - - Options Forfeited (1,750 ) 14.31 Outstanding at September 30, 2021 264,000 17.41 7.81 $ 316,605 Exercisable at September 30, 2021 121,932 18.82 7.07 $ 3,525 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: Nine Months Ended September 30, 2021 September 30, 2020 Risk-free interest rate 0.52 % 1.71 % Dividend yield 2.89 % 2.20 % Stock price volatility 66.67 % 41.27 % Expected term 6.41 7.51 The following table summarizes share information about RSUs for the nine months ended September 30, 2021: Nine Months Ended September 30, 2021 Number of Shares Wgtd. Avg. Grant Date Fair Value Outstanding at December 31, 2020 118,000 $ 18.09 Shares granted 25,200 14.31 Shares vested (33,582 ) 18.85 Shares forfeited - - End of the period balance 109,618 $ 16.99 As of September 30, 2021, there was approximately $1.7 million of unrecognized compensation expense related to 109,618 unvested RSUs and $668,106 of unrecognized compensation expense related to 264,000 unvested and/or unexercised stock options. The stock option expense is expected to be recognized over a weighted average period of 2.67 years, and the RSU expense is expected to be recognized over a weighted average period of 2.53 years. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Disclosures About Fair Value of Assets and Liabilities [Abstract] | |
Disclosures About Fair Value of Assets and Liabilities | Note 9: 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 h ierarchy 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 September 30, 2021 and December 31, 2020. 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 September 30, 2021 and December 31, 2020 (dollars in thousands): Fair Value (Level 1) (Level 2) (Level 3) September 30 2021 Impaired loans (collateral- dependent) $ 6,910 $ - $ - $ 6,910 December 31, 2020 Impaired loans (collateral- dependent) $ 11,358 $ - $ - $ 11,358 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. 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 September 30, 2021 Collateral-dependent impaired loans $ 6,910 Appraisals from comparable properties Estimated cost to sell 25 % December 31, 2020 Collateral-dependent impaired loans $ 11,358 Appraisals from comparable properties Estimated cost to sell 3-5 % The following tables presents estimated fair values of the Company’s financial instruments not recorded at fair value at September 30, 2021 and December 31, 2020 (dollars in thousands): Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total September 30, 2021 Financial Assets Cash and due from banks $ 205,762 $ 205,762 $ - $ - $ 205,762 Interest-bearing time deposits in other banks 5,229 - 5,229 - 5,229 Loans, net of allowance 915,393 - 907,758 6,910 914,668 Mortgage loans held for sale 1,002 - 1,002 - 1,002 Nonmarketable equity securities 1,193 - 1,193 - 1,193 Interest receivable 4,173 - 4,173 - 4,173 Financial Liabilities Deposits $ 1,018,374 $ - $ 1,017,647 $ - $ 1,017,647 Interest payable 182 - 182 - 182 December 31, 2020 Financial Assets Cash and due from banks $ 153,901 $ 153,901 $ - $ - $ 153,901 Interest-bearing time deposits in other banks 16,412 - 16,412 - 16,412 Loans, net of allowance 826,974 - 815,223 11,358 826,581 Mortgage loans held for sale 324 - 324 - 324 Nonmarketable equity securities 1,172 - 1,172 - 1,172 Interest receivable 4,365 - 4,365 - 4,365 Financial Liabilities Deposits $ 905,514 $ - $ 904,928 $ - $ 904,928 Interest payable 286 - 286 - 286 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 Company determines fair value of loans by using exit market assumptions including factors such as liquidity, credit quality and risk of nonperformance. The fair value 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 September 30, 2021 and December 31, 2020. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2021 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Note 10: 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 September 30, 2021 and December 31, 2020 (dollars in thousands): September 30, December 31, 2021 2020 Commitments to extend credit $ 184,217 $ 206,520 Financial and performance standby letters of credit 6,198 2,366 $ 190,415 $ 208,886 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 | 9 Months Ended |
Sep. 30, 2021 | |
Significant Estimates and Concentrations [Abstract] | |
Significant Estimates and Concentrations | Note 11: 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 September 30, 2021, hospitality loans were 20% of gross total loans with outstanding balances of $188.0 million and unfunded commitments of $47.2 million; energy loans were 13% of gross total loans with outstanding balances of $119.4 million and unfunded commitments of $10.6 million. The Company evaluates goodwill for potential goodwill impairment on an annual basis or more often based on consideration if any impairment indicators have occurred. A prolonged strain on the U.S. economy impacting the Company could result in goodwill being partially or fully impaired. At September 30, 2021, goodwill of $1.0 million was recorded on the consolidated balance sheet. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements contained herein reflect all adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position, results of operations, and cash flows of the Company for the interim periods presented. All such adjustments are of a normal and recurring nature. There have been no significant changes in the accounting policies of the Company since December 31, 2020, the date of the most recent annual report. The condensed consolidated balance sheet of the Company as of December 31, 2020 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and notes normally included in the Company’s annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The information contained in the financial statements and footnotes included in Company’s annual report for the year ended December 31, 2020, should be referred to in connection with these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. |
Share Repurchase Program | Share Repurchase Program During the nine months ended September 30, 2021, there were no repurchased shares under the Company’s share repurchase program. During the nine months ended September 30, 2020, 835,254 shares were repurchased under the Company’s share repurchase program at an average price of $8.70 per share. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank and its subsidiary, 1039 NW 63rd, LLC, which holds real estate utilized by the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. |
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. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff 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. |
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 unimpaired 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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, 2021. 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 significant 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 fourth quarter of 2022. 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, 2022 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 March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) which provides relief for companies preparing for discontinuation of interest rates such as the London Interbank Offered Rate (“LIBOR”). On March 5, 2021, the U.K. Financial Conduct Authority (“FCA”) announced that the majority of LIBOR rates will no longer be published after December 31, 2021, although a number of key settings will continue until June 2023, to support the rundown of legacy contracts only. As a result, LIBOR should be discontinued as a reference rate. The main provisions for contract modifications include optional relief by allowing the modification as a continuation of the existing contract without additional analysis and other optional expedients regarding embedded features. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact our financial statements. |
Legislative and Regulatory Developments | Legislative and Regulatory Developments On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The CARES Act also includes a range of other provisions designed to support the U.S. economy and mitigate the impact of COVID-19 on financial institutions and their customers, including through the authorization of various programs and measures that the U.S. Department of the Treasury, the Small Business Administration, the Federal Reserve Board, and other federal banking agencies may or are required to implement. Further, in response to the COVID-19 outbreak, the Federal Reserve Board has implemented or announced a number of facilities to provide emergency liquidity to various segments of the U.S. economy and financial market. In April 2020, the Company began originating loans to qualified small businesses under the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). PPP loans are fully guaranteed by the SBA and thus have a zero percent risk weight under applicable risk-based capital rules. As of September 30, 2021, the Company had 73 PPP loans with balances totaling $27.3 million. The extent to which the COVID-19 pandemic impacts the Company’s business, liquidity, asset valuations, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. Moreover, the effects of the COVID-19 pandemic may have a material adverse effect on all or a combination of valuation impairments on the Company's intangible assets, loans, or deferred tax assets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (Dollars in thousands, except per share amounts) Numerator Net income $ 6,264 $ 4,440 $ 17,473 $ 14,527 Denominator Weighted-average shares outstanding for basic earnings per share 9,052,718 9,228,128 9,051,112 9,483,540 Dilutive effect of stock compensation (1) 52,537 - 27,559 - Denominator for diluted earnings per share 9,105,255 9,228,128 9,078,671 9,483,540 Earnings per common share Basic $ 0.69 $ 0.48 $ 1.93 $ 1.53 Diluted $ 0.69 $ 0.48 $ 1.92 $ 1.53 (1) The following have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented: Nonqualified stock options outstanding of 264,000 and 185,250 a s of September 30, 2021 and 2020, respectively; Restricted stock units o or the nine months ended September 30, 202 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of Loans | A summary of loans at September 30, 2021 and December 31, 2020, are as follows (dollars in thousands): September 30, 2021 December 31, 2020 Construction & development $ 133,732 $ 107,855 1 - 4 family real estate 38,633 29,079 Commercial real estate - other 291,583 290,489 Total commercial real estate 463,948 427,423 Commercial & industrial 396,974 351,248 Agricultural 59,343 50,519 Consumer 7,783 9,898 Gross loans 928,048 839,088 Less allowance for loan losses (9,306 ) (9,639 ) Less deferred loan fees (3,349 ) (2,475 ) Net loans $ 915,393 $ 826,974 |
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 three months ended September 30, 2021 and 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30 2021 Balance, beginning of period $ 1,631 $ 448 $ 4,109 $ 5,189 $ 825 $ 104 $ 12,306 Charge-offs - - - (3,750 ) - (2 ) (3,752 ) Recoveries - - - 1 - 1 2 Net (charge-offs) recoveries - - - (3,749 ) - (1 ) (3,750 ) Provision (credit) for loan losses (290 ) (61 ) (1,185 ) 2,541 (230 ) (25 ) 750 Balance, end of period $ 1,341 $ 387 $ 2,924 $ 3,981 $ 595 $ 78 $ 9,306 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30 2020 Balance, beginning of period $ 1,086 $ 349 $ 3,358 $ 4,380 $ 579 $ 126 $ 9,878 Charge-offs - - - - - (1 ) (1 ) Recoveries - - - 4 - - 4 Net (charge-offs) recoveries - - - 4 - (1 ) 3 Provision (credit) for loan losses 281 43 202 662 58 4 1,250 Balance, end of period $ 1,367 $ 392 $ 3,560 $ 5,046 $ 637 $ 129 $ 11,131 The following table presents, by portfolio segment, the activity in the allowance for loan losses for the nine months ended September 30, 2021 and 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30, 2021 Balance, beginning of period $ 1,239 $ 334 $ 3,337 $ 4,035 $ 580 $ 114 $ 9,639 Charge-offs - - - (3,750 ) - (63 ) (3,813 ) Recoveries - - - 15 138 2 155 Net (charge-offs) recoveries - - - (3,735 ) 138 (61 ) (3,658 ) Provision (credit) for loan losses 102 53 (413 ) 3,681 (123 ) 25 3,325 Balance, end of period $ 1,341 $ 387 $ 2,924 $ 3,981 $ 595 $ 78 $ 9,306 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30, 2020 Balance, beginning of period $ 782 $ 378 $ 3,025 $ 2,887 $ 642 $ 132 $ 7,846 Charge-offs - - - (39 ) - (1 ) (40 ) Recoveries - 2 - 13 10 - 25 Net (charge-offs) recoveries - 2 - (26 ) 10 (1 ) (15 ) Provision (credit) for loan losses 585 12 535 2,185 (15 ) (2 ) 3,300 Balance, end of period $ 1,367 $ 392 $ 3,560 $ 5,046 $ 637 $ 129 $ 11,131 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 September 30, 2021 and December 31, 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30 2021 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ - $ 259 $ - $ - $ 259 Collectively evaluated for impairment 1,341 387 2,924 3,722 595 78 9,047 Total $ 1,341 $ 387 $ 2,924 $ 3,981 $ 595 $ 78 $ 9,306 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 14,647 $ 9,635 $ - $ - $ 24,282 Collectively evaluated for impairment 133,732 38,633 276,936 387,339 59,343 7,783 903,766 Total $ 133,732 $ 38,633 $ 291,583 $ 396,974 $ 59,343 $ 7,783 $ 928,048 December 31, 2020 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ - $ 177 $ - $ - $ 177 Collectively evaluated for impairment 1,239 334 3,337 3,858 580 114 9,462 Total $ 1,239 $ 334 $ 3,337 $ 4,035 $ 580 $ 114 $ 9,639 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 8,054 $ 14,601 $ 468 $ - $ 23,123 Collectively evaluated for impairment 107,855 29,079 282,435 336,647 50,051 9,898 815,965 Total $ 107,855 $ 29,079 $ 290,489 $ 351,248 $ 50,519 $ 9,898 $ 839,088 |
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 September 30, 2021 and December 31, 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30, 2021 Grade 1 (Pass) $ 133,732 $ 38,633 $ 237,826 $ 375,851 $ 59,025 $ 7,783 $ 852,850 2 (Watch) - - 14,976 5,618 - - 20,594 3 (Special Mention) - - 24,134 5,870 318 - 30,322 4 (Substandard) - - 14,647 9,635 - - 24,282 Total $ 133,732 $ 38,633 $ 291,583 $ 396,974 $ 59,343 $ 7,783 $ 928,048 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2020 Grade 1 (Pass) $ 107,855 $ 28,711 $ 248,194 $ 328,656 $ 50,051 $ 9,898 $ 773,365 2 (Watch) - 368 24,155 7,691 - - 32,214 3 (Special Mention) - - 10,086 300 - - 10,386 4 (Substandard) - - 8,054 14,601 468 - 23,123 Total $ 107,855 $ 29,079 $ 290,489 $ 351,248 $ 50,519 $ 9,898 $ 839,088 |
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 September 30, 2021 and December 31, 2020 (dollars in thousands): Past Due Total Loans 30–59 Days 60–89 Days Greater than 90 Days Total Current Total Loans > 90 Days & Accruing September 30 2021 Construction & development $ - $ - $ - $ - $ 133,732 $ 133,732 $ - 1 - 4 Family Real Estate - - - - 38,633 38,633 - Commercial Real Estate - other - - - - 291,583 291,583 - Commercial & industrial - - 6,910 6,910 390,064 396,974 - Agricultural - - 102 102 59,241 59,343 102 Consumer 100 - - 100 7,683 7,783 - Total $ 100 $ - $ 7,012 $ 7,112 $ 920,936 $ 928,048 $ 102 December 31, 2020 Construction & development $ 714 $ - $ - $ 714 $ 107,141 $ 107,855 $ - 1 - 4 Family Real Estate - - - - 29,079 29,079 - Commercial Real Estate - other 1,444 - 1,960 3,404 287,085 290,489 1,960 Commercial & industrial - - - - 351,248 351,248 - Agricultural - - - - 50,519 50,519 - Consumer 193 - - 193 9,705 9,898 - Total $ 2,351 $ - $ 1,960 $ 4,311 $ 834,777 $ 839,088 $ 1,960 |
Impaired Loans | The following table presents impaired loans as of September 30, 2021 and December 31, 2020 (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 Average Recorded Investment Interest Income Recognized Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 September 30 2021 Construction & development $ - $ - $ - $ - $ - $ - $ - $ - $ - 1 - 4 Family Real Estate - - - - - - - - - Commercial Real Estate - other 14,647 14,647 - 14,647 - 14,700 228 10,989 682 Commercial & industrial 16,635 9,375 259 9,635 259 12,331 64 13,658 433 Agricultural - - - - - - - 215 - Consumer - - - - - - - 42 - Total $ 31,282 $ 24,022 $ 259 $ 24,282 $ 259 $ 27,031 $ 292 $ 24,904 $ 1,115 December 31, 2020 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Construction & development $ - $ - $ - $ - $ - $ - $ - $ - $ - 1 - 4 Family Real Estate - - - - - 1,133 15 3,732 47 Commercial Real Estate - other 8,353 8,054 - 8,054 - 5,160 144 2,121 274 Commercial & industrial 18,082 14,424 177 14,601 177 26,549 996 21,780 1,317 Agricultural 768 468 - 468 - 2,681 (54 ) 1,483 (13 ) Consumer - - - - - - - 1,590 - Total $ 27,203 $ 22,946 $ 177 $ 23,123 $ 177 $ 35,523 $ 1,101 $ 30,706 $ 1,625 |
Information Regarding Nonperforming Assets | The following table represents information regarding nonperforming assets at September 30, 2021 and December 31, 2020 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total September 30 2021 Nonaccrual loans $ - $ - $ 2,650 $ 7,169 $ - $ - $ 9,819 Troubled-debt restructurings (1) - - - - - - - Accruing loans 90 or more days past due - - - - 102 - 102 Total nonperforming loans $ - $ - $ 2,650 $ 7,169 $ 102 $ - $ 9,921 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2020 Nonaccrual loans $ - $ - $ 3,043 $ 11,063 $ 469 $ - $ 14,575 Troubled-debt restructurings (1) - - - - - - - Accruing loans 90 or more days past due - - 1,960 - - - 1,960 Total nonperforming loans $ - $ - $ 5,003 $ 11,063 $ 469 $ - $ 16,535 (1) $8.36 million and $12.98 million of TDRs as of September 30, 2021 and December 31, 2020, respectively, are included in the nonaccrual loans balance in the line above. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity [Abstract] | |
Summary of Activity under Repurchase Plan | A summary of the activity under the RP is as follows: Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Number of shares repurchased - 835,254 - 38,160 Average price of shares repurchased $ - $ 8.56 $ - $ 8.96 Shares remaining to be repurchased - 164,746 - 164,746 |
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 To Be Well Capitalized Under Prompt Corrective Action Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of September 30 2021 Total capital to risk-weighted assets Company $ 130,228 14.80 % $ 70,389 8.00 % $ 92,386 10.50 % N/A N/A Bank 130,228 14.82 70,308 8.00 92,280 10.50 $ 87,886 10.00 % Tier I capital to risk-weighted assets Company 120,922 13.74 52,792 6.00 74,789 8.50 N/A N/A Bank 120,922 13.76 52,731 6.00 74,703 8.50 70,308 8.00 CET I capital to risk-weighted assets Company 120,922 13.74 39,594 4.50 61,591 7.00 N/A N/A Bank 120,922 13.76 39,549 4.50 61,520 7.00 57,126 6.50 Tier I capital to average assets Company 120,922 11.50 42,071 4.00 N/A N/A N/A N/A Bank 120,922 11.51 42,030 4.00 N/A N/A 52,538 5.00 As of December 31, 2020 Total capital to risk-weighted assets Company $ 115,375 14.73 % $ 62,641 8.00 % $ 82,216 10.50 % N/A N/A Bank 115,335 14.75 62,563 8.00 82,114 10.50 $ 78,204 10.00 % Tier I capital to risk-weighted assets Company 105,736 13.50 46,981 6.00 66,556 8.50 N/A N/A Bank 105,696 13.51 46,922 6.00 66,473 8.50 62,563 8.00 CET I capital to risk-weighted assets Company 105,736 13.50 35,236 4.50 54,811 7.00 N/A N/A Bank 105,696 13.51 35,192 4.50 54,743 7.00 50,832 6.50 Tier I capital to average assets Company 105,736 10.78 39,218 4.00 N/A N/A N/A N/A Bank 105,696 10.78 39,233 4.00 N/A N/A 49,041 5.00 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related-Party Transactions [Abstract] | |
Summary of Loans | A summary of the activity related to these loans is as follows (dollars in thousands): Balance Beginning of the Period Additions Collections/ Terminations Balance End of the Period Nine months ended September 30, 2021 $ - $ - $ - $ - Year ended December 31, 2020 $ 1,055 $ - $ (1,055 ) $ - |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Employee Benefits [Abstract] | |
Stock Options Activity | The following table is a summary of the stock option activity under the Incentive Plan (dollar amounts in thousands, except per share data): Options Wgtd. Avg. Exercise Price Wgtd. Avg. Remaining Contractual Term Aggregate Intrinsic Value Nine Months Ended September 30, 2021 Outstanding at December 31, 2020 185,250 $ 18.73 Options Granted 80,500 14.31 Options Exercised - - Options Forfeited (1,750 ) 14.31 Outstanding at September 30, 2021 264,000 17.41 7.81 $ 316,605 Exercisable at September 30, 2021 121,932 18.82 7.07 $ 3,525 |
Assumptions Used for Computing Stock-Based Compensation Expense under Fair Value Method | 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: Nine Months Ended September 30, 2021 September 30, 2020 Risk-free interest rate 0.52 % 1.71 % Dividend yield 2.89 % 2.20 % Stock price volatility 66.67 % 41.27 % Expected term 6.41 7.51 |
Restricted Stock Units | The following table summarizes share information about RSUs for the nine months ended September 30, 2021: Nine Months Ended September 30, 2021 Number of Shares Wgtd. Avg. Grant Date Fair Value Outstanding at December 31, 2020 118,000 $ 18.09 Shares granted 25,200 14.31 Shares vested (33,582 ) 18.85 Shares forfeited - - End of the period balance 109,618 $ 16.99 |
Disclosures About Fair Value _2
Disclosures About Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020 (dollars in thousands): Fair Value (Level 1) (Level 2) (Level 3) September 30 2021 Impaired loans (collateral- dependent) $ 6,910 $ - $ - $ 6,910 December 31, 2020 Impaired loans (collateral- dependent) $ 11,358 $ - $ - $ 11,358 |
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 September 30, 2021 Collateral-dependent impaired loans $ 6,910 Appraisals from comparable properties Estimated cost to sell 25 % December 31, 2020 Collateral-dependent impaired loans $ 11,358 Appraisals from comparable properties Estimated cost to sell 3-5 % |
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 September 30, 2021 and December 31, 2020 (dollars in thousands): Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total September 30, 2021 Financial Assets Cash and due from banks $ 205,762 $ 205,762 $ - $ - $ 205,762 Interest-bearing time deposits in other banks 5,229 - 5,229 - 5,229 Loans, net of allowance 915,393 - 907,758 6,910 914,668 Mortgage loans held for sale 1,002 - 1,002 - 1,002 Nonmarketable equity securities 1,193 - 1,193 - 1,193 Interest receivable 4,173 - 4,173 - 4,173 Financial Liabilities Deposits $ 1,018,374 $ - $ 1,017,647 $ - $ 1,017,647 Interest payable 182 - 182 - 182 December 31, 2020 Financial Assets Cash and due from banks $ 153,901 $ 153,901 $ - $ - $ 153,901 Interest-bearing time deposits in other banks 16,412 - 16,412 - 16,412 Loans, net of allowance 826,974 - 815,223 11,358 826,581 Mortgage loans held for sale 324 - 324 - 324 Nonmarketable equity securities 1,172 - 1,172 - 1,172 Interest receivable 4,365 - 4,365 - 4,365 Financial Liabilities Deposits $ 905,514 $ - $ 904,928 $ - $ 904,928 Interest payable 286 - 286 - 286 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020 (dollars in thousands): September 30, December 31, 2021 2020 Commitments to extend credit $ 184,217 $ 206,520 Financial and performance standby letters of credit 6,198 2,366 $ 190,415 $ 208,886 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021USD ($)Loanshares | Sep. 30, 2020$ / sharesshares | Dec. 31, 2020USD ($) | |
Stock Repurchase Program [Abstract] | |||
Number of shares repurchased (in shares) | shares | 0 | 835,254 | |
Average price of shares repurchased (in dollars per share) | $ / shares | $ 8.70 | ||
Legislative and Regulatory Developments [Abstract] | |||
Gross loans | $ 928,048 | $ 839,088 | |
PPP Loans [Member] | |||
Legislative and Regulatory Developments [Abstract] | |||
Number of loans originated | Loan | 73 | ||
Gross loans | $ 27,300 |
Recent Events, Including Merg_2
Recent Events, Including Mergers and Acquisitions (Details) $ in Millions | Oct. 06, 2021USD ($) |
Cornerstone Bank [Member] | Subsequent Event [Member] | |
Recent Events, Including Mergers and Acquisitions [Abstract] | |
Cash consideration | $ 32 |
Restriction on Cash and Due f_2
Restriction on Cash and Due from Banks (Details) $ in Millions | Sep. 30, 2021USD ($) |
Restriction on Cash and Due from Banks [Abstract] | |
Reserve funds to be maintained with Federal Reserve Bank | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Numerator [Abstract] | |||||
Net income | $ 6,264 | $ 4,440 | $ 17,473 | $ 14,527 | |
Denominator [Abstract] | |||||
Weighted-average shares outstanding for basic earnings per share (in shares) | 9,052,718 | 9,228,128 | 9,051,112 | 9,483,540 | |
Dilutive effect of stock compensation (in shares) | [1] | 52,537 | 0 | 27,559 | 0 |
Denominator for diluted earnings per share (in shares) | 9,105,255 | 9,228,128 | 9,078,671 | 9,483,540 | |
Earnings per common share [Abstract] | |||||
Basic (in dollars per share) | $ 0.69 | $ 0.48 | $ 1.93 | $ 1.53 | |
Diluted (in dollars per share) | $ 0.69 | $ 0.48 | $ 1.92 | $ 1.53 | |
Nonqualified Stock Options [Member] | |||||
Antidilutive securities [Abstract] | |||||
Antidilutive shares excluded from the calculation of earnings per share (in shares) | 264,000 | 185,250 | |||
Restricted Stock Units [Member] | |||||
Antidilutive securities [Abstract] | |||||
Antidilutive shares excluded from the calculation of earnings per share (in shares) | 108,000 | ||||
[1] | The following have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented: Nonqualified stock options outstanding of 264,000 and 185,250 as of September 30, 2021 and 2020, respectively; Restricted stock units of 108,000 for the nine months ended September 30, 2020. |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses, Summary of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Summary of loans [Abstract] | ||||||
Gross loans | $ 928,048 | $ 839,088 | ||||
Less allowance for loan losses | (9,306) | $ (12,306) | (9,639) | $ (11,131) | $ (9,878) | $ (7,846) |
Less deferred loan fees | (3,349) | (2,475) | ||||
Net loans | 915,393 | 826,974 | ||||
PPP Loans [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 27,300 | |||||
Construction & Development [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 133,732 | 107,855 | ||||
Less allowance for loan losses | (1,341) | (1,631) | (1,239) | (1,367) | (1,086) | (782) |
1 - 4 Family Real Estate [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 38,633 | 29,079 | ||||
Less allowance for loan losses | (387) | (448) | (334) | (392) | (349) | (378) |
Commercial Real Estate - Other [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 291,583 | 290,489 | ||||
Less allowance for loan losses | (2,924) | (4,109) | (3,337) | (3,560) | (3,358) | (3,025) |
Commercial Real Estate [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 463,948 | 427,423 | ||||
Commercial & Industrial [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 396,974 | 351,248 | ||||
Less allowance for loan losses | (3,981) | (5,189) | (4,035) | (5,046) | (4,380) | (2,887) |
Commercial & Industrial [Member] | PPP Loans [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 27,300 | 44,900 | ||||
Agricultural [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 59,343 | 50,519 | ||||
Less allowance for loan losses | (595) | (825) | (580) | (637) | (579) | (642) |
Consumer [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 7,783 | 9,898 | ||||
Less allowance for loan losses | $ (78) | $ (104) | $ (114) | $ (129) | $ (126) | $ (132) |
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 | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | $ 12,306 | $ 9,878 | $ 9,639 | $ 7,846 | |
Charge-offs | (3,752) | (1) | (3,813) | (40) | |
Recoveries | 2 | 4 | 155 | 25 | |
Net (charge-offs) recoveries | (3,750) | 3 | (3,658) | (15) | |
Provision (credit) for loan losses | 750 | 1,250 | 3,325 | 3,300 | |
Balance, end of period | 9,306 | 11,131 | 9,306 | 11,131 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 259 | 259 | $ 177 | ||
Ending balance, collectively evaluated for impairment | 9,047 | 9,047 | 9,462 | ||
Total | 9,306 | 11,131 | 9,306 | 11,131 | 9,639 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 24,282 | 24,282 | 23,123 | ||
Ending balance, collectively evaluated for impairment | 903,766 | 903,766 | 815,965 | ||
Total Loans | 928,048 | 928,048 | 839,088 | ||
Construction & Development [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 1,631 | 1,086 | 1,239 | 782 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | |
Provision (credit) for loan losses | (290) | 281 | 102 | 585 | |
Balance, end of period | 1,341 | 1,367 | 1,341 | 1,367 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 1,341 | 1,341 | 1,239 | ||
Total | 1,341 | 1,367 | 1,341 | 1,367 | 1,239 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 133,732 | 133,732 | 107,855 | ||
Total Loans | 133,732 | 133,732 | 107,855 | ||
1 - 4 Family Real Estate [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 448 | 349 | 334 | 378 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 2 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 2 | |
Provision (credit) for loan losses | (61) | 43 | 53 | 12 | |
Balance, end of period | 387 | 392 | 387 | 392 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 387 | 387 | 334 | ||
Total | 387 | 392 | 387 | 392 | 334 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 38,633 | 38,633 | 29,079 | ||
Total Loans | 38,633 | 38,633 | 29,079 | ||
Commercial Real Estate - Other [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 4,109 | 3,358 | 3,337 | 3,025 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | |
Provision (credit) for loan losses | (1,185) | 202 | (413) | 535 | |
Balance, end of period | 2,924 | 3,560 | 2,924 | 3,560 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 2,924 | 2,924 | 3,337 | ||
Total | 2,924 | 3,560 | 2,924 | 3,560 | 3,337 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 14,647 | 14,647 | 8,054 | ||
Ending balance, collectively evaluated for impairment | 276,936 | 276,936 | 282,435 | ||
Total Loans | 291,583 | 291,583 | 290,489 | ||
Commercial & Industrial [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 5,189 | 4,380 | 4,035 | 2,887 | |
Charge-offs | (3,750) | 0 | (3,750) | (39) | |
Recoveries | 1 | 4 | 15 | 13 | |
Net (charge-offs) recoveries | (3,749) | 4 | (3,735) | (26) | |
Provision (credit) for loan losses | 2,541 | 662 | 3,681 | 2,185 | |
Balance, end of period | 3,981 | 5,046 | 3,981 | 5,046 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 259 | 259 | 177 | ||
Ending balance, collectively evaluated for impairment | 3,722 | 3,722 | 3,858 | ||
Total | 3,981 | 5,046 | 3,981 | 5,046 | 4,035 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 9,635 | 9,635 | 14,601 | ||
Ending balance, collectively evaluated for impairment | 387,339 | 387,339 | 336,647 | ||
Total Loans | 396,974 | 396,974 | 351,248 | ||
Agricultural [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 825 | 579 | 580 | 642 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 138 | 10 | |
Net (charge-offs) recoveries | 0 | 0 | 138 | 10 | |
Provision (credit) for loan losses | (230) | 58 | (123) | (15) | |
Balance, end of period | 595 | 637 | 595 | 637 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 595 | 595 | 580 | ||
Total | 595 | 637 | 595 | 637 | 580 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 468 | ||
Ending balance, collectively evaluated for impairment | 59,343 | 59,343 | 50,051 | ||
Total Loans | 59,343 | 59,343 | 50,519 | ||
Consumer [Member] | |||||
Activity in allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 104 | 126 | 114 | 132 | |
Charge-offs | (2) | (1) | (63) | (1) | |
Recoveries | 1 | 0 | 2 | 0 | |
Net (charge-offs) recoveries | (1) | (1) | (61) | (1) | |
Provision (credit) for loan losses | (25) | 4 | 25 | (2) | |
Balance, end of period | 78 | 129 | 78 | 129 | |
Allowance Balance [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 78 | 78 | 114 | ||
Total | 78 | $ 129 | 78 | $ 129 | 114 |
Gross Loans [Abstract] | |||||
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 7,783 | 7,783 | 9,898 | ||
Total Loans | $ 7,783 | $ 7,783 | $ 9,898 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses, Loan Portfolio Based on Internal Rating Category (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | $ 928,048 | $ 839,088 |
1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 852,850 | 773,365 |
2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 20,594 | 32,214 |
3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 30,322 | 10,386 |
4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 24,282 | 23,123 |
Construction & Development [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 133,732 | 107,855 |
Construction & Development [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 133,732 | 107,855 |
Construction & Development [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
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 Real Estate [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 38,633 | 29,079 |
1 - 4 Family Real Estate [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 38,633 | 28,711 |
1 - 4 Family Real Estate [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 368 |
1 - 4 Family Real Estate [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Commercial Real Estate - Other [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 291,583 | 290,489 |
Commercial Real Estate - Other [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 237,826 | 248,194 |
Commercial Real Estate - Other [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 14,976 | 24,155 |
Commercial Real Estate - Other [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 24,134 | 10,086 |
Commercial Real Estate - Other [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 14,647 | 8,054 |
Commercial & Industrial [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 396,974 | 351,248 |
Commercial & Industrial [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 375,851 | 328,656 |
Commercial & Industrial [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 5,618 | 7,691 |
Commercial & Industrial [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 5,870 | 300 |
Commercial & Industrial [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 9,635 | 14,601 |
Agricultural [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 59,343 | 50,519 |
Agricultural [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 59,025 | 50,051 |
Agricultural [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Agricultural [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 318 | 0 |
Agricultural [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 468 |
Consumer [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 7,783 | 9,898 |
Consumer [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 7,783 | 9,898 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Past Due [Abstract] | ||
Total Loans | $ 928,048 | $ 839,088 |
Total Loans > 90 Days & Accruing | 102 | 1,960 |
Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 7,112 | 4,311 |
30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 100 | 2,351 |
60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 7,012 | 1,960 |
Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 920,936 | 834,777 |
Construction & Development [Member] | ||
Past Due [Abstract] | ||
Total Loans | 133,732 | 107,855 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Construction & Development [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 714 |
Construction & Development [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 714 |
Construction & Development [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Construction & Development [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Construction & Development [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 133,732 | 107,141 |
1 - 4 Family Real Estate [Member] | ||
Past Due [Abstract] | ||
Total Loans | 38,633 | 29,079 |
Total Loans > 90 Days & Accruing | 0 | 0 |
1 - 4 Family Real Estate [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
1 - 4 Family Real Estate [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 38,633 | 29,079 |
Commercial Real Estate - Other [Member] | ||
Past Due [Abstract] | ||
Total Loans | 291,583 | 290,489 |
Total Loans > 90 Days & Accruing | 0 | 1,960 |
Commercial Real Estate - Other [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 3,404 |
Commercial Real Estate - Other [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 1,444 |
Commercial Real Estate - Other [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Commercial Real Estate - Other [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 1,960 |
Commercial Real Estate - Other [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 291,583 | 287,085 |
Commercial & Industrial [Member] | ||
Past Due [Abstract] | ||
Total Loans | 396,974 | 351,248 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Commercial & Industrial [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 6,910 | 0 |
Commercial & Industrial [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Commercial & Industrial [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Commercial & Industrial [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 6,910 | 0 |
Commercial & Industrial [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 390,064 | 351,248 |
Agricultural [Member] | ||
Past Due [Abstract] | ||
Total Loans | 59,343 | 50,519 |
Total Loans > 90 Days & Accruing | 102 | 0 |
Agricultural [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 102 | 0 |
Agricultural [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Agricultural [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Agricultural [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 102 | 0 |
Agricultural [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 59,241 | 50,519 |
Consumer [Member] | ||
Past Due [Abstract] | ||
Total Loans | 7,783 | 9,898 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Consumer [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 100 | 193 |
Consumer [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 100 | 193 |
Consumer [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Consumer [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Consumer [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | $ 7,683 | $ 9,705 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses, Impaired Loans and TDR's (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Contract | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Impaired Loans [Abstract] | |||||
Unpaid principal balance | $ 31,282,000 | $ 31,282,000 | $ 27,203,000 | ||
Recorded investment with no allowance | 24,022,000 | 24,022,000 | 22,946,000 | ||
Recorded investment with an allowance | 259,000 | 259,000 | 177,000 | ||
Total recorded investment | 24,282,000 | 24,282,000 | 23,123,000 | ||
Related allowance | 259,000 | 259,000 | 177,000 | ||
Average recorded investment | 27,031,000 | $ 35,523,000 | 24,904,000 | $ 30,706,000 | |
Interest income recognized | 292,000 | 1,101,000 | 1,115,000 | 1,625,000 | |
Troubled Debt Restructurings [Abstract] | |||||
TDR loans impaired | 8,360,000 | $ 8,360,000 | 12,980,000 | ||
Newly modified troubled-debt restructurings | Contract | 0 | ||||
Troubled debt restructurings modified that subsequently defaulted | $ 0 | ||||
Construction & Development [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 0 | 0 | 0 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
1 - 4 Family Real Estate [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 1,133,000 | 0 | 3,732,000 | |
Interest income recognized | 0 | 15,000 | 0 | 47,000 | |
Commercial Real Estate - Other [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 14,647,000 | 14,647,000 | 8,353,000 | ||
Recorded investment with no allowance | 14,647,000 | 14,647,000 | 8,054,000 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 14,647,000 | 14,647,000 | 8,054,000 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 14,700,000 | 5,160,000 | 10,989,000 | 2,121,000 | |
Interest income recognized | 228,000 | 144,000 | 682,000 | 274,000 | |
Commercial & Industrial [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 16,635,000 | 16,635,000 | 18,082,000 | ||
Recorded investment with no allowance | 9,375,000 | 9,375,000 | 14,424,000 | ||
Recorded investment with an allowance | 259,000 | 259,000 | 177,000 | ||
Total recorded investment | 9,635,000 | 9,635,000 | 14,601,000 | ||
Related allowance | 259,000 | 259,000 | 177,000 | ||
Average recorded investment | 12,331,000 | 26,549,000 | 13,658,000 | 21,780,000 | |
Interest income recognized | 64,000 | 996,000 | 433,000 | 1,317,000 | |
Troubled Debt Restructurings [Abstract] | |||||
TDR loans impaired | 6,900,000 | 6,900,000 | 10,900,000 | ||
Agricultural [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 0 | 0 | 768,000 | ||
Recorded investment with no allowance | 0 | 0 | 468,000 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 0 | 0 | 468,000 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 2,681,000 | 215,000 | 1,483,000 | |
Interest income recognized | 0 | (54,000) | 0 | (13,000) | |
Troubled Debt Restructurings [Abstract] | |||||
TDR loans impaired | 469,000 | ||||
Consumer [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with an allowance | 0 | 0 | 0 | ||
Total recorded investment | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 0 | 42,000 | 1,590,000 | |
Interest income recognized | 0 | $ 0 | 0 | $ 0 | |
Commercial Real Estate [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
TDR loans impaired | $ 1,500,000 | $ 1,500,000 | $ 1,600,000 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses, Information Regarding Nonperforming Assets (Details) | 9 Months Ended | ||
Sep. 30, 2021USD ($)Loan | Dec. 31, 2020USD ($) | ||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | $ 9,819,000 | $ 14,575,000 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 102,000 | 1,960,000 | |
Total nonperforming loans | 9,921,000 | 16,535,000 | |
TDR loans impaired | $ 8,360,000 | 12,980,000 | |
COVID-19 [Member] | |||
Nonperforming Assets [Abstract] | |||
Number of loans modified that were not considered troubled debt restructurings | Loan | 1 | ||
Amount of loans modified that were not considered troubled debt restructurings | $ 3,100,000 | ||
Construction & Development [Member] | |||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | 0 | 0 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 0 | 0 | |
Total nonperforming loans | 0 | 0 | |
1 - 4 Family Real Estate [Member] | |||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | 0 | 0 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 0 | 0 | |
Total nonperforming loans | 0 | 0 | |
Commercial Real Estate - Other [Member] | |||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | 2,650,000 | 3,043,000 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 0 | 1,960,000 | |
Total nonperforming loans | 2,650,000 | 5,003,000 | |
Commercial & Industrial [Member] | |||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | 7,169,000 | 11,063,000 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 0 | 0 | |
Total nonperforming loans | 7,169,000 | 11,063,000 | |
TDR loans impaired | 6,900,000 | 10,900,000 | |
Agricultural [Member] | |||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | 0 | 469,000 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 102,000 | 0 | |
Total nonperforming loans | 102,000 | 469,000 | |
TDR loans impaired | 469,000 | ||
Consumer [Member] | |||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | 0 | 0 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 0 | 0 | |
Total nonperforming loans | $ 0 | $ 0 | |
[1] | $8.36 million and $12.98 million of TDRs as of September 30, 2021 and December 31, 2020, respectively, are included in the nonaccrual loans balance in the line above. |
Shareholders' Equity, Repurchas
Shareholders' Equity, Repurchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 02, 2020 | Mar. 13, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 28, 2021 | Dec. 31, 2020 | Sep. 05, 2019 |
Stock Repurchase Program [Abstract] | |||||||||
Number of shares repurchased (in shares) | 0 | 835,254 | |||||||
Average price of shares repurchased (in dollars per share) | $ 8.70 | ||||||||
Gross loans | $ 928,048 | $ 928,048 | $ 839,088 | ||||||
PPP Loans [Member] | |||||||||
Stock Repurchase Program [Abstract] | |||||||||
Gross loans | $ 27,300 | $ 27,300 | |||||||
Repurchase Plan [Member] | |||||||||
Stock Repurchase Program [Abstract] | |||||||||
Number of shares authorized to purchase (in shares) | 1,750,000 | 500,000 | |||||||
Number of shares approved for expansion to the existing stock (in shares) | 750,000 | 500,000 | |||||||
Number of shares repurchased (in shares) | 0 | 38,160 | 0 | 835,254 | |||||
Average price of shares repurchased (in dollars per share) | $ 0 | $ 8.96 | $ 0 | $ 8.56 | |||||
Shares remaining to be repurchased (in shares) | 0 | 164,746 | 0 | 164,746 | |||||
New Repurchase Plan [Member] | Subsequent Event [Member] | |||||||||
Stock Repurchase Program [Abstract] | |||||||||
Number of shares authorized to purchase (in shares) | 750,000 |
Shareholders' Equity, Actual Ca
Shareholders' Equity, Actual Capital Amounts and Ratios (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 130,228 | $ 115,375 |
Total capital to risk-weighted assets, actual ratio | 0.1480 | 0.1473 |
Total capital to risk-weighted assets, minimum capital requirements amount | $ 70,389 | $ 62,641 |
Total capital to risk-weighted assets, minimum capital requirements ratio | 0.0800 | 0.0800 |
Total capital to risk-weighted assets, capital conservation buffer amount | $ 92,386 | $ 82,216 |
Total capital to risk-weighted assets, capital conservation buffer ratio | 0.1050 | 0.1050 |
Tier I capital to risk-weighted assets, actual amount | $ 120,922 | $ 105,736 |
Tier I capital to risk-weighted assets, actual ratio | 0.1374 | 0.1350 |
Tier I capital to risk-weighted assets, minimum capital requirements amount | $ 52,792 | $ 46,981 |
Tier I capital to risk-weighted assets, minimum capital requirements ratio | 0.0600 | 0.0600 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer amount | $ 74,789 | $ 66,556 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer ratio | 0.0850 | 0.0850 |
CET I capital to risk-weighted assets, actual amount | $ 120,922 | $ 105,736 |
CET I capital to risk-weighted assets, actual ratio | 0.1374 | 0.1350 |
CET I capital to risk-weighted assets, minimum capital requirements amount | $ 39,594 | $ 35,236 |
CET I capital to risk-weighted assets, minimum capital requirements ratio | 0.0450 | 0.0450 |
CET I capital to risk-weighted assets, capital conservation buffer amount | $ 61,591 | $ 54,811 |
CET I capital to risk-weighted assets, capital conservation buffer ratio | 0.0700 | 0.0700 |
Tier I capital to average assets, actual amount | $ 120,922 | $ 105,736 |
Tier I capital to average assets, actual ratio | 0.1150 | 0.1078 |
Tier I capital to average assets, minimum capital requirements amount | $ 42,071 | $ 39,218 |
Tier I capital to average assets, minimum capital requirements ratio | 0.0400 | 0.0400 |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 130,228 | $ 115,335 |
Total capital to risk-weighted assets, actual ratio | 0.1482 | 0.1475 |
Total capital to risk-weighted assets, minimum capital requirements amount | $ 70,308 | $ 62,563 |
Total capital to risk-weighted assets, minimum capital requirements ratio | 0.0800 | 0.0800 |
Total capital to risk-weighted assets, capital conservation buffer amount | $ 92,280 | $ 82,114 |
Total capital to risk-weighted assets, capital conservation buffer ratio | 0.1050 | 0.1050 |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action amount | $ 87,886 | $ 78,204 |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action ratio | 0.1000 | 0.1000 |
Tier I capital to risk-weighted assets, actual amount | $ 120,922 | $ 105,696 |
Tier I capital to risk-weighted assets, actual ratio | 0.1376 | 0.1351 |
Tier I capital to risk-weighted assets, minimum capital requirements amount | $ 52,731 | $ 46,922 |
Tier I capital to risk-weighted assets, minimum capital requirements ratio | 0.0600 | 0.0600 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer amount | $ 74,703 | $ 66,473 |
Tier I capital to risk-weighted assets, minimum capital conservation buffer ratio | 0.0850 | 0.0850 |
Tier I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action amount | $ 70,308 | $ 62,563 |
Tier I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action ratio | 0.0800 | 0.0800 |
CET I capital to risk-weighted assets, actual amount | $ 120,922 | $ 105,696 |
CET I capital to risk-weighted assets, actual ratio | 0.1376 | 0.1351 |
CET I capital to risk-weighted assets, minimum capital requirements amount | $ 39,549 | $ 35,192 |
CET I capital to risk-weighted assets, minimum capital requirements ratio | 0.0450 | 0.0450 |
CET I capital to risk-weighted assets, capital conservation buffer amount | $ 61,520 | $ 54,743 |
CET I capital to risk-weighted assets, capital conservation buffer ratio | 0.0700 | 0.0700 |
CET I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action amount | $ 57,126 | $ 50,832 |
CET I capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action ratio | 0.0650 | 0.0650 |
Tier I capital to average assets, actual amount | $ 120,922 | $ 105,696 |
Tier I capital to average assets, actual ratio | 0.1151 | 0.1078 |
Tier I capital to average assets, minimum capital requirements amount | $ 42,030 | $ 39,233 |
Tier I capital to average assets, minimum capital requirements ratio | 0.0400 | 0.0400 |
Tier I capital to average assets, minimum to be well capitalized under prompt corrective action amount | $ 52,538 | $ 49,041 |
Tier I capital to average assets, minimum to be well capitalized under prompt corrective action ratio | 0.0500 | 0.0500 |
Shareholders' Equity, Payout Re
Shareholders' Equity, Payout Restrictions Based on Capital Conservation Buffer (Details) $ in Millions | Sep. 30, 2021USD ($) |
Shareholders' Equity [Abstract] | |
Retained earnings available for dividend declaration | $ 31.8 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Summary of Loans [Roll Forward] | |||||
Balance Beginning of the Period | $ 0 | $ 1,055,000 | $ 1,055,000 | ||
Additions | 0 | 0 | |||
Collections/ Terminations | 0 | (1,055,000) | |||
Balance End of the Period | $ 0 | 0 | $ 0 | ||
Haines Realty Investments Company, LLC [Member] | |||||
Sale of subsidiary [Abstract] | |||||
Lease expense | $ 45,000 | $ 46,000 | $ 137,000 | $ 138,000 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Benefits [Abstract] | ||||
Percentage of employee's compensation matched by company | 5.00% | |||
Defined benefit plan, employer contribution | $ 63,000 | $ 58,000 | $ 204,000 | $ 173,000 |
Share-based Compensation [Abstract] | ||||
Net compensation expense | 604,000 | 569,000 | ||
Incentive Plan [Member] | ||||
Share-based Compensation [Abstract] | ||||
Compensation expenses | 279,000 | $ 198,000 | 784,000 | $ 569,000 |
Net settlement of shares for payroll withholding at statutory rate | 148,000 | 180,000 | ||
Net compensation expense | $ 131,000 | $ 604,000 | ||
Shares available for future grants (in shares) | 690,800 | 690,800 | ||
Unearned stock-based compensation expense [Abstract] | ||||
Risk-free interest rate | 0.52% | 1.71% | ||
Dividend yield | 2.89% | 2.20% | ||
Stock price volatility | 66.67% | 41.27% | ||
Expected term | 6 years 4 months 28 days | 7 years 6 months 3 days | ||
Incentive Plan [Member] | RSUs [Member] | ||||
Share-based Compensation [Abstract] | ||||
Unrecognized compensation expense | $ 1,700,000 | $ 1,700,000 | ||
Period for recognition of compensation cost not yet recognized | 2 years 6 months 10 days | |||
Restricted Stock Units [Roll Forward] | ||||
Outstanding, beginning of the period (in shares) | 118,000 | |||
Shares granted (in shares) | 25,200 | |||
Shares vested (in shares) | (33,582) | |||
Shares forfeited (in shares) | 0 | |||
Outstanding, end of the period (in shares) | 109,618 | 109,618 | ||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $ 18.09 | |||
Shares granted (in dollars per share) | 14.31 | |||
Shares settled (in dollars per share) | 18.85 | |||
Shares forfeited (in dollars per share) | 0 | |||
Outstanding, end of period (in dollars per share) | $ 16.99 | $ 16.99 | ||
Incentive Plan [Member] | Stock Option [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 4 years | |||
Unrecognized compensation expense | $ 668,106 | $ 668,106 | ||
Unvested and/or unexercised stock options (in shares) | 264,000 | 264,000 | ||
Period for recognition of compensation cost not yet recognized | 2 years 8 months 1 day | |||
Stock Option Activity [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 185,250 | |||
Options granted (in shares) | 80,500 | |||
Options exercised (in shares) | 0 | |||
Options forfeited (in shares) | (1,750) | |||
Outstanding at end of period (in shares) | 264,000 | 264,000 | ||
Exercisable at end of period (in shares) | 121,932 | 121,932 | ||
Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding at beginning of period (in dollars per share) | $ 18.73 | |||
Options granted (in dollars per share) | 14.31 | |||
Options exercised (in dollars per share) | 0 | |||
Options forfeited (in dollars per share) | 14.31 | |||
Outstanding at end of period (in dollars per share) | $ 17.41 | 17.41 | ||
Exercisable at end of period (in dollars per share) | $ 18.82 | $ 18.82 | ||
Options, Additional Disclosures [Abstract] | ||||
Weighted average remaining contractual term, Outstanding | 7 years 9 months 21 days | |||
Weighted average remaining contractual term, Exercisable | 7 years 25 days | |||
Aggregate intrinsic value, Outstanding | $ 316,605,000 | $ 316,605,000 | ||
Aggregate intrinsic value, Exercisable | $ 3,525,000 | $ 3,525,000 | ||
Incentive Plan [Member] | Tranche One [Member] | RSUs [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 1 year | |||
Incentive Plan [Member] | Tranche Two [Member] | RSUs [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 3 years | |||
Incentive Plan [Member] | Tranche Three [Member] | RSUs [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 | Sep. 30, 2021 | Dec. 31, 2020 |
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) | 6,910 | 11,358 |
Level 1 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Level 2 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Level 3 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | $ 6,910 | $ 11,358 |
Disclosures About Fair Value _4
Disclosures About Fair Value of Assets and Liabilities, Quantitative Information (Details) - Nonrecurring Basis [Member] $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | $ 6,910 | $ 11,358 |
Level 3 [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | $ 6,910 | $ 11,358 |
Level 3 [Member] | Appraisals from Comparable Properties [Member] | Estimated Cost to Sell [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans, measurement input | 0.25 | |
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 | |
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 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Assets and Liabilities, Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | $ 205,762 | $ 153,901 |
Interest-bearing time deposits in other banks | 5,229 | 16,412 |
Loans, net of allowance | 915,393 | 826,974 |
Mortgage loans held for sale | 1,002 | 324 |
Nonmarketable equity securities | 1,193 | 1,172 |
Interest receivable | 4,173 | 4,365 |
Financial Liabilities [Abstract] | ||
Deposits | 1,018,374 | 905,514 |
Interest payable | 182 | 286 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 205,762 | 153,901 |
Interest-bearing time deposits in other banks | 5,229 | 16,412 |
Loans, net of allowance | 914,668 | 826,581 |
Mortgage loans held for sale | 1,002 | 324 |
Nonmarketable equity securities | 1,193 | 1,172 |
Interest receivable | 4,173 | 4,365 |
Financial Liabilities [Abstract] | ||
Deposits | 1,017,647 | 904,928 |
Interest payable | 182 | 286 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 205,762 | 153,901 |
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 | 5,229 | 16,412 |
Loans, net of allowance | 907,758 | 815,223 |
Mortgage loans held for sale | 1,002 | 324 |
Nonmarketable equity securities | 1,193 | 1,172 |
Interest receivable | 4,173 | 4,365 |
Financial Liabilities [Abstract] | ||
Deposits | 1,017,647 | 904,928 |
Interest payable | 182 | 286 |
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 | 6,910 | 11,358 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 190,415 | $ 208,886 |
Commitments to Extend Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | 184,217 | 206,520 |
Financial and Performance Standby Letters of Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 6,198 | $ 2,366 |
Significant Estimates and Con_2
Significant Estimates and Concentrations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 928,048 | $ 839,088 |
Goodwill | 1,000 | |
Hospitality Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | 47,200 | |
Hospitality Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 188,000 | |
Hospitality Loans [Member] | Gross Loans [Member] | Product Concentration Risk [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 20.00% | |
Energy Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | $ 10,600 | |
Energy Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 119,400 | |
Energy Loans [Member] | Gross Loans [Member] | Product Concentration Risk [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 13.00% |