Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 13, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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, $0.01 Par Value Per Share | |
Trading Symbol | BSVN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,098,655 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 126,275 | $ 195,359 |
Federal funds sold | 8,088 | 9,493 |
Cash and cash equivalents | 134,363 | 204,852 |
Interest-bearing time deposits in other banks | 2,241 | 3,237 |
Available-for-sale debt securities | 198,356 | 84,808 |
Loans, net of allowance for loan losses of $10,599 and $10,316 at March 31, 2022 and December 31, 2021, respectively | 1,051,222 | 1,018,085 |
Loans held for sale, at fair value | 597 | 464 |
Premises and equipment, net | 13,775 | 17,257 |
Nonmarketable equity securities | 1,195 | 1,202 |
Core deposit intangibles | 1,565 | 1,643 |
Goodwill | 8,807 | 8,479 |
Interest receivable and other assets | 9,111 | 10,522 |
Total assets | 1,421,232 | 1,350,549 |
Deposits | ||
Noninterest-bearing | 420,972 | 366,705 |
Interest-bearing | 862,307 | 850,766 |
Total deposits | 1,283,279 | 1,217,471 |
Income taxes payable | 2,610 | 0 |
Interest payable and other liabilities | 6,695 | 5,670 |
Total liabilities | 1,292,584 | 1,223,141 |
Shareholders' equity | ||
Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,094,468 and 9,071,417 at March 31, 2022 and December 31, 2021 respectively | 91 | 91 |
Additional paid-in capital | 94,310 | 94,024 |
Retained earnings | 38,242 | 33,149 |
Accumulated other comprehensive income (loss) | (3,995) | 144 |
Total shareholders' equity | 128,648 | 127,408 |
Total liabilities and shareholders' equity | $ 1,421,232 | $ 1,350,549 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Allowance for loan losses | $ 10,599 | $ 10,316 |
Shareholders' equity | ||
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) | 9,094,468 | 9,071,417 |
Common stock, shares outstanding (in shares) | 9,094,468 | 9,071,417 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest Income | ||
Loans, including fees | $ 14,377,000 | $ 13,094,000 |
Interest-bearing time deposits in other banks | 16,000 | 68,000 |
Debt securities, taxable | 364,000 | 0 |
Debt securities, tax-exempt | 98,000 | 0 |
Other interest and dividend income | 70,000 | 26,000 |
Total interest income | 14,925,000 | 13,188,000 |
Interest Expense | ||
Deposits | 717,000 | 875,000 |
Total interest expense | 717,000 | 875,000 |
Net Interest Income | 14,208,000 | 12,313,000 |
Provision for Loan Losses | 276,000 | 1,275,000 |
Net Interest Income After Provision for Loan Losses | 13,932,000 | 11,038,000 |
Noninterest Income | ||
Secondary market income | 166,000 | 14,000 |
Loss on sales of available-for-sale debt securities (includes accumulated other comprehensive loss reclassification of $144 and $0, respectively) | (127,000) | 0 |
Service charges on deposit accounts | 249,000 | 120,000 |
Other | 387,000 | 203,000 |
Total noninterest income | 675,000 | 337,000 |
Noninterest Expense | ||
Salaries and employee benefits | 4,026,000 | 2,790,000 |
Furniture and equipment | 358,000 | 202,000 |
Occupancy | 551,000 | 472,000 |
Data and item processing | 387,000 | 279,000 |
Accounting, marketing and legal fees | 233,000 | 148,000 |
Regulatory assessments | 196,000 | 141,000 |
Advertising and public relations | 110,000 | 34,000 |
Travel, lodging and entertainment | 48,000 | 89,000 |
Other | 511,000 | 390,000 |
Total noninterest expense | 6,420,000 | 4,545,000 |
Income Before Taxes | 8,187,000 | 6,830,000 |
Income tax expense | 2,003,000 | 1,726,000 |
Net Income | $ 6,184,000 | $ 5,104,000 |
Earnings per common share - basic (in dollars per share) | $ 0.68 | $ 0.56 |
Earnings per common share - diluted (in dollars per share) | $ 0.67 | $ 0.56 |
Weighted average common shares outstanding - basic (in shares) | 9,088,975 | 9,049,007 |
Weighted average common shares outstanding - diluted (in shares) | 9,182,055 | 9,058,685 |
Other Comprehensive Income (Loss) | ||
Unrealized losses on securities, net of tax benefit of $1,500 | $ (3,995,000) | $ 0 |
Reclassification adjustment for realized loss included in net income, net of tax of $17 | (144,000) | 0 |
Other comprehensive loss, net of tax benefit of $1,500 | (4,139,000) | 0 |
Comprehensive Income (Loss) | $ 2,045,000 | $ 5,104,000 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Other Comprehensive Income (Loss) | |
Unrealized losses on securities, tax | $ (1,500) |
Reclassification adjustment for realized loss, tax | 17 |
Other comprehensive loss, tax | $ (1,500) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2020 | $ 90 | $ 93,162 | $ 14,067 | $ 0 | |
Balance (in shares) at Dec. 31, 2020 | 9,044,765 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,104 | $ 5,104 | |||
Exercise of employee stock options (in shares) | 0 | ||||
Shares issued for stock options | $ 0 | ||||
Shares issued for restricted stock units (in shares) | 4,491 | ||||
Shares issued for restricted stock units | $ 0 | ||||
Stock-based compensation expense | 302 | ||||
Cash dividends declared | (995) | ||||
Net change due to unrealized loss | 0 | 0 | |||
Balance at Mar. 31, 2021 | $ 90 | 93,464 | 18,176 | 0 | 111,730 |
Balance (in shares) at Mar. 31, 2021 | 9,049,256 | ||||
Balance at Dec. 31, 2021 | $ 91 | 94,024 | 33,149 | 144 | 127,408 |
Balance (in shares) at Dec. 31, 2021 | 9,071,417 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,184 | 6,184 | |||
Exercise of employee stock options (in shares) | 10,625 | ||||
Shares issued for stock options | $ 0 | ||||
Shares issued for restricted stock units (in shares) | 12,426 | ||||
Shares issued for restricted stock units | $ 0 | ||||
Stock-based compensation expense | 286 | ||||
Cash dividends declared | (1,091) | ||||
Net change due to unrealized loss | (4,139) | (3,995) | |||
Balance at Mar. 31, 2022 | $ 91 | $ 94,310 | $ 38,242 | $ (3,995) | $ 128,648 |
Balance (in shares) at Mar. 31, 2022 | 9,094,468 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Unaudited Condensed Consolidated Statements of Shareholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.12 | $ 0.11 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities | ||
Net income | $ 6,184 | $ 5,104 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 365 | 262 |
Provision for loan losses | 276 | 1,275 |
Amortization of premiums and discounts on securities | 155 | 0 |
Gain on sales of loans | (166) | (14) |
Net loss on sale of available-for-sale debt securities | 127 | 0 |
Stock-based compensation expense | 286 | 302 |
Cash receipts from the sale of loans originated for sale | 7,617 | 2,267 |
Cash disbursements for loans originated for sale | (7,584) | (1,929) |
Deferred income tax benefit | (1,497) | (314) |
Changes in | ||
Interest receivable and other assets | 2,764 | 805 |
Interest payable and other liabilities | 3,633 | 1,481 |
Net cash provided by operating activities | 12,160 | 9,239 |
Investing Activities | ||
Maturities of interest-bearing time deposits in other banks | 1,245 | 9,449 |
Purchases of interest-bearing time deposits in other banks | (249) | 0 |
Proceeds from sale of securities available-for-sale | 11,820 | 0 |
Maturities, prepayments and calls of securities available-for-sale | 1,407 | 0 |
Purchases of debt securities available-for-sale | (131,052) | 0 |
Net change in loans | (33,413) | (24,845) |
Purchases of premises and equipment | (66) | (117) |
Proceeds from sale of premises and equipment | 2,933 | 0 |
Change in nonmarketable equity securities | 7 | (15) |
Net cash used in investing activities | (147,368) | (15,528) |
Financing Activities | ||
Net change in deposits | 65,808 | 23,515 |
Cash distributions | (1,089) | (995) |
Net cash provided by financing activities | 64,719 | 22,520 |
(Decrease) Increase in Cash and Cash Equivalents | (70,489) | 16,231 |
Cash and Cash Equivalents, Beginning of Period | 204,852 | 153,901 |
Cash and Cash Equivalents, End of Period | 134,363 | 170,132 |
Supplemental Disclosure of Cash Flows Information | ||
Interest paid | 731 | 969 |
Dividends declared and not paid | 1,091 | 995 |
Measurement period goodwill adjustment | $ 328 | $ 0 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021, the date of the most recent annual report. The condensed consolidated balance sheet of the Company as of December 31, 2021 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, 2021, 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. 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. 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 annual 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 in the process of planning implementation 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 in the process of planning implementation and has established a committee to assist in implementation and evaluation. 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 the consolidated financial statements. |
Recent Events, Including Merger
Recent Events, Including Mergers and Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Recent Events, Including Mergers and Acquisitions [Abstract] | |
Recent Events, Including Mergers and Acquisitions | Note 2: Recent Events, Including Mergers and Acquisitions Business Combinations On December 9, 2021, the Company acquired 100% of the outstanding equity of Watonga Bancshares, Inc. (“Watonga”), the bank holding company for Cornerstone Bank, for $29.3 million in cash. Immediately following the acquisition, Watonga was dissolved and Cornerstone Bank merged with and into Bank7. An updated preliminary summary of the fair value of assets acquired and liabilities assumed from Watonga are as follows: Estimated Fair Value (in thousands) Assets Acquired Cash and cash equivalents $ 41,747 Available-for-sale debt securities 86,166 Federal funds sold 7,941 Loans 117,335 Premises and equipment 8,815 Core deposit intangible 1,254 Prepaid expenses and other assets 4,512 Total assets acquiried 267,770 Liabilities Assumed Deposits $ 243,487 Accounts payable and accrued expenses 2,580 Total liabilities assumed 246,067 Net assets acquired $ 21,703 Consideration transferred 29,498 Goodwill $ 7,795 During the quarter, goodwill increased $328,000 related to the continued assessment of the fair value and assumed tax position of Watonga Bancshares, Inc. As of the acquisition date, the Company evaluated $117.3 million of net loans ($118.5 million gross loans less $1.2 million discount) purchased in conjunction with the acquisition of Watonga Bancshares, Inc. in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Cost s The fair values of assets acquired and liabilities assumed are preliminary and based on valuation estimates and assumptions. The accounting for business combinations require estimates and judgments regarding expectations of future cash flows of the acquired business, and the allocations of those cash flows to identifiable tangible and intangible assets. The estimates and assumptions underlying the preliminary valuations are subject to collection of information necessary to complete the valuations (specifically related to projected financial information) within the measurement periods, which are up to one year from the acquisition date. Although the Company does not currently expect material changes to the initial value of net assets acquired, the Company continues to evaluate assumptions related to the valuation of the assets acquired and liabilities assumed. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined, and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition date. |
Restriction on Cash and Due fro
Restriction on Cash and Due from Banks | 3 Months Ended |
Mar. 31, 2022 | |
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. There was no reserve requirement as of March 31, 2022. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
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 common 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: As of and for the three months ended March 31, 2022 2021 (Dollars in thousands, except per share amounts) Numerator Net income $ 6,184 $ 5,104 Denominator Weighted-average shares outstanding for basic earnings per share 9,088,975 9,049,007 Dilutive effect of stock compensation (1) 93,080 9,678 Denominator for diluted earnings per share 9,182,055 9,058,685 Earnings per common share Basic $ 0.68 $ 0.56 Diluted $ 0.67 $ 0.56 (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 0 and 265,750 for the three month periods ended March 31, 2022 and 2021, respectively; Restricted stock units of 0 and 30,000 for the three month periods ended March 31, 2022 and 2021, respectively. |
Debt Securities
Debt Securities | 3 Months Ended |
Mar. 31, 2022 | |
Debt Securities [Abstract] | |
Debt Securities | Note 5: Debt Securities The following table summarizes the amortized cost and fair value of debt securities available-for-sale at March 31, 2022 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss): (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale as of March 31, 2022 U.S. Federal agencies $ 254 $ - $ (3 ) $ 251 Mortgage-backed securities (1) 57,697 - (2,021 ) 55,676 State and political subdivisions 34,369 - (1,406 ) 32,963 U.S. Treasuries 106,045 - (1,990 ) 104,055 Corporate debt securities 5,500 - (89 ) 5,411 Total available-for-sale 203,865 - (5,509 ) 198,356 Total debt securities $ 203,865 $ - $ (5,509 ) $ 198,356 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale as of December 31, 2021 U.S. Federal agencies $ 311 $ 2 $ - $ 313 Mortgage-backed securities (1) 33,085 69 - 33,154 State and political subdivisions 45,245 49 - 45,294 U.S. Treasuries 6,052 - (5 ) 6,047 Corporate debt securities - - - - Total available-for-sale 84,693 120 (5 ) 84,808 Total debt securities $ 84,693 $ 120 $ (5 ) $ 84,808 (1) All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. The amortized cost and estimated fair value of investment securities at March 31, 2022, by contractual maturity, are shown below. The expected life of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties. (in thousands) Amortized Cost Fair Value Available-for-sale as of March 31, 2022 Due in one year or less $ 3,724 $ 3,721 Due after one year through five years 117,047 114,968 Due after five years through ten years 22,378 21,111 Due after ten years 3,019 2,880 Mortgage-backed securities (1) 57,697 55,676 Total available-for-sale $ 203,865 $ 198,356 (in thousands) Amortized Cost Fair Value Available-for-sale as of December 31, 2021 Due in one year or less $ 3,622 $ 3,623 Due after one year through five years 22,030 22,076 Due after five years through ten years 22,819 22,821 Due after ten years 3,137 3,134 Mortgage-backed securities (1) 33,085 33,154 Total available-for-sale $ 84,693 $ 84,808 (1) All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. There were two holdings of securities of issuers in an amount greater than 10% of stockholders equity at March 31, 2022, one mortgage-backed security with a fair value of $17.51 million, and one U.S. Treasury note with a fair value of $98.43 million. The following table presents a summary of realized gains and losses from the sale of investment securities for the three months ended March 31, 2022. Note, the Company did not have available-for-sale debt securities at March 31, 2021. (in thousands) Proceeds from sales $ 11,820 Gross realized gains on sales $ - Gross realized losses on sales (127 ) Total realized (losses), net $ (127 ) The following table details book value of pledged securities as of March 31, 2022: March 31, 2022 December 31, 2021 Book value of pledged securities $ 36,728 $ 37,477 The following table details gross unrealized losses and fair values of investment securities aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2022. As of March 31, 2022, the Company had the ability and intent to hold the debt securities classified as available-for-sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased or acquired. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if market yields for such investments decline. Management has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no impairment loss was realized in the Company’s consolidated statements of comprehensive income. Less than Twelve Months Twelve Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Available-for-sale U.S. Federal agencies $ 251 $ (3 ) $ - $ - $ 251 $ (3 ) Mortgage-backed securities 55,676 (2,021 ) - - 55,676 (2,021 ) State and political subdivisions 32,963 (1,406 ) - - 32,963 (1,406 ) U.S. Treasuries 104,055 (1,990 ) - - 104,055 (1,990 ) Corporate debt securities 5,411 (89 ) - - 5,411 (89 ) Total available-for-sale $ 198,356 $ (5,509 ) $ - $ - $ 198,356 $ (5,509 ) Less than Twelve Months Twelve Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Available-for-sale U.S. Federal agencies $ - $ - $ - $ - $ - $ - Mortgage-backed securities - - - - - - State and political subdivisions - - - - - - U.S. Treasuries 6,047 (5 ) - - 6,047 (5 ) Corporate debt securities - - - - - - Total available-for-sale $ 6,047 $ (5 ) $ - $ - $ 6,047 $ (5 ) |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | Note 6: Loans and Allowance for Loan Losses A summary of loans at March 31, 2022 and December 31, 2021, are as follows (dollars in thousands): March 31, 2022 December 31, 2021 Construction & development $ 172,381 $ 169,322 1 - 4 family real estate 58,184 62,971 Commercial real estate - other 334,835 339,655 Total commercial real estate 565,400 571,948 Commercial & industrial 416,676 361,974 Agricultural 62,984 73,010 Consumer 19,439 24,046 Gross loans 1,064,499 1,030,978 Less allowance for loan losses (10,599 ) (10,316 ) Less deferred loan fees (2,678 ) (2,577 ) Net loans $ 1,051,222 $ 1,018,085 Included in the commercial & industrial loan balances are $14.2 million and $18.7 million of loans that were originated under the SBA PPP program as of March 31, 2022 and December 31, 2021, respectively. The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three months ended March 31, 2022 and 2021 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31 2022 Balance, beginning of period $ 1,695 $ 630 $ 3,399 $ 3,621 $ 730 $ 241 $ 10,316 Charge-offs - - - - - (2 ) (2 ) Recoveries - - - - - 9 9 Net (charge-offs) recoveries - - - - - 7 7 Provision (credit) for loan losses 22 (51 ) (65 ) 527 (103 ) (54 ) 276 Balance, end of period $ 1,717 $ 579 $ 3,334 $ 4,148 $ 627 $ 194 $ 10,599 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31 2021 Balance, beginning of period $ 1,239 $ 334 $ 3,337 $ 4,035 $ 580 $ 114 $ 9,639 Charge-offs - - - - - (50 ) (50 ) Recoveries - - - - - - - Net (charge-offs) recoveries - - - - - (50 ) (50 ) Provision (credit) for loan losses 128 99 540 508 (48 ) 48 1,275 Balance, end of period $ 1,367 $ 433 $ 3,877 $ 4,543 $ 532 $ 112 $ 10,864 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 March 31, 2022 and December 31, 2021 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31 2022 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ - $ 249 $ - $ - $ 249 Collectively evaluated for impairment 1,717 579 3,334 3,899 627 194 10,350 Total $ 1,717 $ 579 $ 3,334 $ 4,148 $ 627 $ 194 $ 10,599 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 14,043 $ 14,102 $ - $ 24 $ 28,169 Collectively evaluated for impairment 172,381 58,184 320,792 402,574 62,984 19,415 1,036,330 Total $ 172,381 $ 58,184 $ 334,835 $ 416,676 $ 62,984 $ 19,439 $ 1,064,499 December 31, 2021 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ - $ 253 $ - $ - $ 253 Collectively evaluated for impairment 1,695 630 3,399 3,368 730 241 10,063 Total $ 1,695 $ 630 $ 3,399 $ 3,621 $ 730 $ 241 $ 10,316 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 14,481 $ 9,354 $ - $ 19 $ 23,854 Collectively evaluated for impairment 169,322 62,971 325,174 352,620 73,010 24,027 1,007,124 Total $ 169,322 $ 62,971 $ 339,655 $ 361,974 $ 73,010 $ 24,046 $ 1,030,978 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 Commercial & Industrial Agricultural 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 March 31, 2022. The following table presents the credit risk profile of the Company’s loan portfolio based on internal rating category as of March 31, 2022 and December 31, 2021 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31, 2022 Grade 1 (Pass) $ 172,381 $ 58,184 $ 288,783 $ 402,072 $ 62,513 $ 19,397 $ 1,003,330 2 (Watch) - - 15,000 116 327 18 15,461 3 (Special Mention) - - 17,009 386 144 - 17,539 4 (Substandard) - - 14,043 14,102 - 24 28,169 Total $ 172,381 $ 58,184 $ 334,835 $ 416,676 $ 62,984 $ 19,439 $ 1,064,499 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2021 Grade 1 (Pass) $ 169,322 $ 62,971 $ 282,268 $ 341,661 $ 72,295 $ 24,000 $ 952,517 2 (Watch) - - 14,976 4,658 255 - 19,889 3 (Special Mention) - - 27,112 6,300 460 - 33,872 4 (Substandard) - - 15,299 9,355 - 46 24,700 Total $ 169,322 $ 62,971 $ 339,655 $ 361,974 $ 73,010 $ 24,046 $ 1,030,978 The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of March 31, 2022 and December 31, 2021 (dollars in thousands): Past Due 30–59 Days 60–89 Days Greater than 90 Days Total Current Total Loans Total Loans > 90 Days & Accruing March 31 2022 Construction & development $ - $ - $ - $ - $ 172,381 $ 172,381 $ - 1 - 4 family real estate 26 - - 26 58,158 58,184 - Commercial real estate - other - 167 - 167 334,668 334,835 - Commercial & industrial 27 3 119 149 416,527 416,676 19 Agricultural 443 - 59 502 62,482 62,984 59 Consumer 426 1 13 440 18,999 19,439 13 Total $ 922 $ 171 $ 191 $ 1,284 $ 1,063,215 $ 1,064,499 $ 91 December 31, 2021 Construction & development $ - $ - $ - $ - $ 169,322 $ 169,322 $ - 1 - 4 family real estate - - - - 62,971 62,971 - Commercial real estate - other - 174 - 174 339,481 339,655 - Commercial & industrial - 19 501 520 361,454 361,974 401 Agricultural - - 77 77 72,933 73,010 77 Consumer 48 15 18 81 23,965 24,046 18 Total $ 48 $ 208 $ 596 $ 852 $ 1,030,126 $ 1,030,978 $ 496 The following table presents impaired loans as of March 31, 2022 and December 31, 2021 (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 March 31 2022 Construction & development $ - $ - $ - $ - $ - $ - $ - 1 - 4 family real estate - - - - - - - Commercial real estate - other 14,702 14,043 - 14,043 - 14,831 203 Commercial & industrial 14,705 13,853 249 14,102 249 11,529 149 Agricultural - - - - - 4 - Consumer 25 24 - 24 - 33 1 $ 29,432 $ 27,920 $ 249 $ 28,169 $ 249 $ 26,397 $ 353 December 31, 2021 Construction & development $ - $ - $ - $ - $ - $ - $ - 1 - 4 family real estate - - - - - - - Commercial real estate - other 15,412 14,481 - 14,481 - 11,879 902 Commercial & industrial 9,476 9,101 253 9,354 253 12,584 275 Agricultural - - - - - 161 - Consumer 18 19 - 19 - 33 1 Total $ 24,906 $ 23,601 $ 253 $ 23,854 $ 253 $ 24,657 $ 1,178 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 March 31, 2022, the Company had $1.4 million of commercial real estate loans, compared to $1.4 million of commercial real estate loans that were classified as troubled-debt restructurings and impaired as of December 31, 2021. There were no newly modified troubled-debt restructurings during the There were no troubled-debt restructurings modified in the past three months that subsequently defaulted for the period ended March 31, 2022. The following table represents information regarding nonperforming assets at March 31, 2022 and December 31, 2021 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31 2022 Nonaccrual loans $ - $ - $ 1,518 $ 8,021 $ - $ - $ 9,539 Troubled-debt restructurings (1) - - - - - - - Accruing loans 90 or more days past due - - - 19 59 13 91 Total nonperforming loans $ - $ - $ 1,518 $ 8,040 $ 59 $ 13 $ 9,630 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2021 Nonaccrual loans $ - $ - $ 2,708 $ 7,163 $ - $ 14 $ 9,885 Troubled-debt restructurings (1) - - - - - - - Accruing loans 90 or more days past due - - - 401 77 18 496 Total nonperforming loans $ - $ - $ 2,708 $ 7,564 $ 77 $ 32 $ 10,381 (1) $1.4 million of TDRs as of March 31, 2022 and December 31, 2021, are included in the nonaccrual loans balance. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 7: 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 of 1,750,000 shares 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. A summary of the activity under the RP is as follows: Three Months Ended March 31, 2022 2021 Number of shares repurchased - - Average price of shares repurchased $ - $ - Shares remaining to be repurchased 750,000 717,822 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 March 31, 2022, 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 March 31, 2022, 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. 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 March 31 2022 Total capital to risk-weighted assets Company $ 133,374 12.54 % $ 85,111 8.00 % $ 111,708 10.50 % N/A N/A Bank 133,488 12.56 % 85,030 8.00 % 111,602 10.50 % $ 106,288 10.00 % Tier I capital to risk-weighted assets Company 122,776 11.54 % 63,833 6.00 % 90,431 8.50 % N/A N/A Bank 122,889 11.56 % 63,773 6.00 % 90,345 8.50 % 85,030 8.00 % CET I capital to risk-weighted assets Company 122,776 11.54 % 47,875 4.50 % 74,472 7.00 % N/A N/A Bank 122,889 11.56 % 47,830 4.50 % 74,401 7.00 % 69,087 6.50 % Tier I capital to average assets Company 122,776 9.27 % 52,967 4.00 % N/A N/A N/A N/A Bank 122,889 9.28 % 52,941 4.00 % N/A N/A 66,176 5.00 % As of December 31, 2021 Total capital to risk-weighted assets Company $ 127,946 12.54 % $ 81,620 8.00 % $ 107,126 10.50 % N/A N/A Bank 127,844 12.54 % 81,539 8.00 % 107,020 10.50 % $ 101,924 10.00 % Tier I capital to risk-weighted assets Company 117,631 11.53 % 61,215 6.00 % 86,721 8.50 % N/A N/A Bank 117,528 11.53 % 61,154 6.00 % 86,635 8.50 % 81,539 8.00 % CET I capital to risk-weighted assets Company 117,631 11.53 % 45,911 4.50 % 71,417 7.00 % N/A N/A Bank 117,528 11.53 % 45,866 4.50 % 71,347 7.00 % 66,250 6.50 % Tier I capital to average assets Company 117,631 10.56 % 44,571 4.00 % N/A N/A N/A N/A Bank 117,528 10.55 % 44,571 4.00 % N/A N/A 55,714 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 March 31, 2022, 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 March 31, 2022, approximately $41.4 million of retained earnings was available for dividend declaration from the Bank without prior regulatory approval. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | Note 8: Related-Party Transactions At March 31, 2022 and December 31, 2021, the Company had no loans outstanding to executive officers, directors, significant shareholders and their affiliates (related parties). 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 $39,000 and $46,000 for the three months ended March 31, 2022 and 2021, respectively. In addition, payroll and office sharing arrangements were in place between the Company and certain of its affiliate |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 9: 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 March 31, 2022 and 2021 totaled $94,000 and $65,000 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 March 31, 2022 and 2021 totaled $286,000 and $302,000, respectively. There were 706,587 shares available for future grants as of March 31, 2022. The Company grants to employees and directors restricted stock units (RSUs) which vest ratably over 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 Three Months Ended March 31, 2022 Outstanding at December 31, 2021 264,000 $ 17.41 Options Granted - - Options Exercised 10,625 18.11 Options Forfeited - - Outstanding at March 31, 2022 253,375 17.38 7.33 $ 1,580,001 Exercisable at March 31, 2022 141,060 $ 18.18 6.91 $ 767,645 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. There were no grants for the three months ended March 31, 2022. For the Three Months Ended March 31, 2021 Risk-free interest rate 0.52 % Dividend yield 2.89 % Stock price volatility 66.67 % Expected term 6.41 The following table summarizes share information about RSUs for the three months ended March 31, 2022 and 2021: Number of Shares Wgtd. Avg. Grant Date Fair Value Three Months Ended March 31, 2022 Outstanding at December 31, 2021 172,993 $ 17.58 Shares granted - - Shares vested (15,584 ) 15.98 Shares forfeited - - End of the period balance 157,409 $ 19.32 Number of Shares Wgtd. Avg. Grant Date Fair Value Three Months Ended March 31, 2021 Outstanding at December 31, 2020 118,000 $ 18.09 Shares granted 25,200 14.31 Shares vested (6,398 ) 18.49 Shares forfeited - - End of the period balance 136,802 $ 17.37 As of March 31, 2022, there was approximately $2.6 million of unrecognized compensation expense related to 157,409 unvested RSUs and $514,000 of unrecognized compensation expense related to 253,375 unvested and/or unexercised stock options. The stock option expense is expected to be recognized over a weighted average period of 2.32 years, and the RSU expense is expected to be recognized over a weighted average period of 2.84 years. As of March 31, 2021, there was approximately $2.1 million of unrecognized compensation expense related to 136,802 unvested RSUs and $834,000 of unrecognized compensation expense related to 265,750 unvested and/or unexercised stock options. The stock option expense is expected to be recognized over a weighted average period of 3.09 years, and the RSU expense is expected to be recognized over a weighted average period of 3.00 years. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Disclosures about Fair Value of Assets and Liabilities [Abstract] | |
Disclosures about Fair Value of Assets and Liabilities | Note 10: 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 Assets and liabilities measured at fair value on a recurring basis include the following: Available-for-sale debt securities: 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 March 31, 2022 and December 31, 2021 (dollars in thousands): Fair Value (Level 1) (Level 2) (Level 3) March 31 2022 Impaired loans (collateral- dependent) $ 6,844 $ - $ - $ 6,844 December 31, 2021 Impaired loans (collateral- dependent) $ 6,910 $ - $ - $ 6,910 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 March 31, 2022 Collateral-dependent impaired loans $ 6,844 Appraisals from comparable properties Estimated cost to sell 20 % December 31, 2021 Collateral-dependent impaired loans $ 6,910 Appraisals from comparable properties Estimated cost to sell 20 % The following table presents estimated fair values of the Company’s financial instruments not recorded at fair value at March 31, 2022 and December 31, 2021 (dollars in thousands): Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total March 31, 2022 Financial Assets Cash and due from banks $ 126,275 $ 126,275 $ - $ - $ 126,275 Federal funds sold 8,088 8,088 - - 8,088 Interest-bearing time deposits in other banks 2,241 - 2,241 - 2,241 Loans, net of allowance 1,051,222 - 1,043,933 6,844 1,050,777 Loans held for sale 597 - 597 - 597 Nonmarketable equity securities 1,195 - 1,195 - 1,195 Interest receivable 4,256 - 4,256 - 4,256 Financial Liabilities Deposits $ 1,283,279 $ - $ 1,281,971 $ - $ 1,281,971 Interest payable 103 - 103 - 103 December 31, 2021 Financial Assets Cash and due from banks $ 195,359 $ 195,359 $ - $ - $ 195,359 Federal funds sold 9,493 9,493 - - 9,493 Interest-bearing time deposits in other banks 3,237 - 3,237 - 3,237 Loans, net of allowance 1,018,085 - 1,011,048 6,910 1,017,958 Loans held for sale 464 - 464 - 464 Nonmarketable equity securities 1,202 - 1,202 - 1,202 Interest receivable 4,259 - 4,259 - 4,259 Financial Liabilities Deposits $ 1,217,471 $ - $ 1,217,094 $ - $ 1,217,094 Interest payable 117 - 117 - 117 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 March 31, 2022 and December 31, 2021. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 3 Months Ended |
Mar. 31, 2022 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Note 11: 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 March 31, 2022 and December 31, 2021 (dollars in thousands): March 31, December 31, 2022 2021 Commitments to extend credit $ 215,268 $ 200,393 Financial and performance standby letters of credit 4,243 5,809 $ 219,511 $ 206,202 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 | 3 Months Ended |
Mar. 31, 2022 | |
Significant Estimates and Concentrations [Abstract] | |
Significant Estimates and Concentrations | Note 12: 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 6 Note 11 As of March 31, 2022, hospitality loans were 17% of gross total loans with outstanding balances of $179.2 million and unfunded commitments of $35.7 million; energy loans were 11% of gross total loans with outstanding balances of $115.6 million and unfunded commitments of $25.5 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 March 31, 2022, goodwill of $8.8 million was recorded on the consolidated balance sheet. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021, the date of the most recent annual report. The condensed consolidated balance sheet of the Company as of December 31, 2021 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, 2021, 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. |
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. |
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 annual 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 in the process of planning implementation 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 in the process of planning implementation and has established a committee to assist in implementation and evaluation. 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 the consolidated financial statements. |
Recent Events, Including Merg_2
Recent Events, Including Mergers and Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Recent Events, Including Mergers and Acquisitions [Abstract] | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed | An updated preliminary summary of the fair value of assets acquired and liabilities assumed from Watonga are as follows: Estimated Fair Value (in thousands) Assets Acquired Cash and cash equivalents $ 41,747 Available-for-sale debt securities 86,166 Federal funds sold 7,941 Loans 117,335 Premises and equipment 8,815 Core deposit intangible 1,254 Prepaid expenses and other assets 4,512 Total assets acquiried 267,770 Liabilities Assumed Deposits $ 243,487 Accounts payable and accrued expenses 2,580 Total liabilities assumed 246,067 Net assets acquired $ 21,703 Consideration transferred 29,498 Goodwill $ 7,795 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share: As of and for the three months ended March 31, 2022 2021 (Dollars in thousands, except per share amounts) Numerator Net income $ 6,184 $ 5,104 Denominator Weighted-average shares outstanding for basic earnings per share 9,088,975 9,049,007 Dilutive effect of stock compensation (1) 93,080 9,678 Denominator for diluted earnings per share 9,182,055 9,058,685 Earnings per common share Basic $ 0.68 $ 0.56 Diluted $ 0.67 $ 0.56 (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 0 and 265,750 for the three month periods ended March 31, 2022 and 2021, respectively; Restricted stock units of 0 and 30,000 for the three month periods ended March 31, 2022 and 2021, respectively. |
Debt Securities (Tables)
Debt Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Securities [Abstract] | |
Amortized Cost and Fair Value of Debt Securities Available-for-sale | The following table summarizes the amortized cost and fair value of debt securities available-for-sale at March 31, 2022 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss): (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale as of March 31, 2022 U.S. Federal agencies $ 254 $ - $ (3 ) $ 251 Mortgage-backed securities (1) 57,697 - (2,021 ) 55,676 State and political subdivisions 34,369 - (1,406 ) 32,963 U.S. Treasuries 106,045 - (1,990 ) 104,055 Corporate debt securities 5,500 - (89 ) 5,411 Total available-for-sale 203,865 - (5,509 ) 198,356 Total debt securities $ 203,865 $ - $ (5,509 ) $ 198,356 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale as of December 31, 2021 U.S. Federal agencies $ 311 $ 2 $ - $ 313 Mortgage-backed securities (1) 33,085 69 - 33,154 State and political subdivisions 45,245 49 - 45,294 U.S. Treasuries 6,052 - (5 ) 6,047 Corporate debt securities - - - - Total available-for-sale 84,693 120 (5 ) 84,808 Total debt securities $ 84,693 $ 120 $ (5 ) $ 84,808 (1) All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. |
Contractual Maturity | The amortized cost and estimated fair value of investment securities at March 31, 2022, by contractual maturity, are shown below. The expected life of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties. (in thousands) Amortized Cost Fair Value Available-for-sale as of March 31, 2022 Due in one year or less $ 3,724 $ 3,721 Due after one year through five years 117,047 114,968 Due after five years through ten years 22,378 21,111 Due after ten years 3,019 2,880 Mortgage-backed securities (1) 57,697 55,676 Total available-for-sale $ 203,865 $ 198,356 (in thousands) Amortized Cost Fair Value Available-for-sale as of December 31, 2021 Due in one year or less $ 3,622 $ 3,623 Due after one year through five years 22,030 22,076 Due after five years through ten years 22,819 22,821 Due after ten years 3,137 3,134 Mortgage-backed securities (1) 33,085 33,154 Total available-for-sale $ 84,693 $ 84,808 (1) All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. |
Realized Gains and Losses from Sale of Investment Securities | The following table presents a summary of realized gains and losses from the sale of investment securities for the three months ended March 31, 2022. Note, the Company did not have available-for-sale debt securities at March 31, 2021. (in thousands) Proceeds from sales $ 11,820 Gross realized gains on sales $ - Gross realized losses on sales (127 ) Total realized (losses), net $ (127 ) |
Pledged Securities | The following table details book value of pledged securities as of March 31, 2022: March 31, 2022 December 31, 2021 Book value of pledged securities $ 36,728 $ 37,477 |
Debt Securities in Continuous Unrealized Loss Position | The following table details gross unrealized losses and fair values of investment securities aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2022. As of March 31, 2022, the Company had the ability and intent to hold the debt securities classified as available-for-sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased or acquired. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if market yields for such investments decline. Management has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no impairment loss was realized in the Company’s consolidated statements of comprehensive income. Less than Twelve Months Twelve Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Available-for-sale U.S. Federal agencies $ 251 $ (3 ) $ - $ - $ 251 $ (3 ) Mortgage-backed securities 55,676 (2,021 ) - - 55,676 (2,021 ) State and political subdivisions 32,963 (1,406 ) - - 32,963 (1,406 ) U.S. Treasuries 104,055 (1,990 ) - - 104,055 (1,990 ) Corporate debt securities 5,411 (89 ) - - 5,411 (89 ) Total available-for-sale $ 198,356 $ (5,509 ) $ - $ - $ 198,356 $ (5,509 ) Less than Twelve Months Twelve Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Available-for-sale U.S. Federal agencies $ - $ - $ - $ - $ - $ - Mortgage-backed securities - - - - - - State and political subdivisions - - - - - - U.S. Treasuries 6,047 (5 ) - - 6,047 (5 ) Corporate debt securities - - - - - - Total available-for-sale $ 6,047 $ (5 ) $ - $ - $ 6,047 $ (5 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of Loans | A summary of loans at March 31, 2022 and December 31, 2021, are as follows (dollars in thousands): March 31, 2022 December 31, 2021 Construction & development $ 172,381 $ 169,322 1 - 4 family real estate 58,184 62,971 Commercial real estate - other 334,835 339,655 Total commercial real estate 565,400 571,948 Commercial & industrial 416,676 361,974 Agricultural 62,984 73,010 Consumer 19,439 24,046 Gross loans 1,064,499 1,030,978 Less allowance for loan losses (10,599 ) (10,316 ) Less deferred loan fees (2,678 ) (2,577 ) Net loans $ 1,051,222 $ 1,018,085 |
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 March 31, 2022 and 2021 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31 2022 Balance, beginning of period $ 1,695 $ 630 $ 3,399 $ 3,621 $ 730 $ 241 $ 10,316 Charge-offs - - - - - (2 ) (2 ) Recoveries - - - - - 9 9 Net (charge-offs) recoveries - - - - - 7 7 Provision (credit) for loan losses 22 (51 ) (65 ) 527 (103 ) (54 ) 276 Balance, end of period $ 1,717 $ 579 $ 3,334 $ 4,148 $ 627 $ 194 $ 10,599 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31 2021 Balance, beginning of period $ 1,239 $ 334 $ 3,337 $ 4,035 $ 580 $ 114 $ 9,639 Charge-offs - - - - - (50 ) (50 ) Recoveries - - - - - - - Net (charge-offs) recoveries - - - - - (50 ) (50 ) Provision (credit) for loan losses 128 99 540 508 (48 ) 48 1,275 Balance, end of period $ 1,367 $ 433 $ 3,877 $ 4,543 $ 532 $ 112 $ 10,864 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 March 31, 2022 and December 31, 2021 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31 2022 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ - $ 249 $ - $ - $ 249 Collectively evaluated for impairment 1,717 579 3,334 3,899 627 194 10,350 Total $ 1,717 $ 579 $ 3,334 $ 4,148 $ 627 $ 194 $ 10,599 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 14,043 $ 14,102 $ - $ 24 $ 28,169 Collectively evaluated for impairment 172,381 58,184 320,792 402,574 62,984 19,415 1,036,330 Total $ 172,381 $ 58,184 $ 334,835 $ 416,676 $ 62,984 $ 19,439 $ 1,064,499 December 31, 2021 Allowance Balance Ending balance Individually evaluated for impairment $ - $ - $ - $ 253 $ - $ - $ 253 Collectively evaluated for impairment 1,695 630 3,399 3,368 730 241 10,063 Total $ 1,695 $ 630 $ 3,399 $ 3,621 $ 730 $ 241 $ 10,316 Gross Loans Ending balance Individually evaluated for impairment $ - $ - $ 14,481 $ 9,354 $ - $ 19 $ 23,854 Collectively evaluated for impairment 169,322 62,971 325,174 352,620 73,010 24,027 1,007,124 Total $ 169,322 $ 62,971 $ 339,655 $ 361,974 $ 73,010 $ 24,046 $ 1,030,978 |
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 March 31, 2022 and December 31, 2021 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31, 2022 Grade 1 (Pass) $ 172,381 $ 58,184 $ 288,783 $ 402,072 $ 62,513 $ 19,397 $ 1,003,330 2 (Watch) - - 15,000 116 327 18 15,461 3 (Special Mention) - - 17,009 386 144 - 17,539 4 (Substandard) - - 14,043 14,102 - 24 28,169 Total $ 172,381 $ 58,184 $ 334,835 $ 416,676 $ 62,984 $ 19,439 $ 1,064,499 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2021 Grade 1 (Pass) $ 169,322 $ 62,971 $ 282,268 $ 341,661 $ 72,295 $ 24,000 $ 952,517 2 (Watch) - - 14,976 4,658 255 - 19,889 3 (Special Mention) - - 27,112 6,300 460 - 33,872 4 (Substandard) - - 15,299 9,355 - 46 24,700 Total $ 169,322 $ 62,971 $ 339,655 $ 361,974 $ 73,010 $ 24,046 $ 1,030,978 |
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 March 31, 2022 and December 31, 2021 (dollars in thousands): Past Due 30–59 Days 60–89 Days Greater than 90 Days Total Current Total Loans Total Loans > 90 Days & Accruing March 31 2022 Construction & development $ - $ - $ - $ - $ 172,381 $ 172,381 $ - 1 - 4 family real estate 26 - - 26 58,158 58,184 - Commercial real estate - other - 167 - 167 334,668 334,835 - Commercial & industrial 27 3 119 149 416,527 416,676 19 Agricultural 443 - 59 502 62,482 62,984 59 Consumer 426 1 13 440 18,999 19,439 13 Total $ 922 $ 171 $ 191 $ 1,284 $ 1,063,215 $ 1,064,499 $ 91 December 31, 2021 Construction & development $ - $ - $ - $ - $ 169,322 $ 169,322 $ - 1 - 4 family real estate - - - - 62,971 62,971 - Commercial real estate - other - 174 - 174 339,481 339,655 - Commercial & industrial - 19 501 520 361,454 361,974 401 Agricultural - - 77 77 72,933 73,010 77 Consumer 48 15 18 81 23,965 24,046 18 Total $ 48 $ 208 $ 596 $ 852 $ 1,030,126 $ 1,030,978 $ 496 |
Impaired Loans | The following table presents impaired loans as of March 31, 2022 and December 31, 2021 (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 March 31 2022 Construction & development $ - $ - $ - $ - $ - $ - $ - 1 - 4 family real estate - - - - - - - Commercial real estate - other 14,702 14,043 - 14,043 - 14,831 203 Commercial & industrial 14,705 13,853 249 14,102 249 11,529 149 Agricultural - - - - - 4 - Consumer 25 24 - 24 - 33 1 $ 29,432 $ 27,920 $ 249 $ 28,169 $ 249 $ 26,397 $ 353 December 31, 2021 Construction & development $ - $ - $ - $ - $ - $ - $ - 1 - 4 family real estate - - - - - - - Commercial real estate - other 15,412 14,481 - 14,481 - 11,879 902 Commercial & industrial 9,476 9,101 253 9,354 253 12,584 275 Agricultural - - - - - 161 - Consumer 18 19 - 19 - 33 1 Total $ 24,906 $ 23,601 $ 253 $ 23,854 $ 253 $ 24,657 $ 1,178 |
Information Regarding Nonperforming Assets | The following table represents information regarding nonperforming assets at March 31, 2022 and December 31, 2021 (dollars in thousands): Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total March 31 2022 Nonaccrual loans $ - $ - $ 1,518 $ 8,021 $ - $ - $ 9,539 Troubled-debt restructurings (1) - - - - - - - Accruing loans 90 or more days past due - - - 19 59 13 91 Total nonperforming loans $ - $ - $ 1,518 $ 8,040 $ 59 $ 13 $ 9,630 Construction & Development 1 - 4 Family Real Estate Commercial Real Estate - Other Commercial & Industrial Agricultural Consumer Total December 31, 2021 Nonaccrual loans $ - $ - $ 2,708 $ 7,163 $ - $ 14 $ 9,885 Troubled-debt restructurings (1) - - - - - - - Accruing loans 90 or more days past due - - - 401 77 18 496 Total nonperforming loans $ - $ - $ 2,708 $ 7,564 $ 77 $ 32 $ 10,381 (1) $1.4 million of TDRs as of March 31, 2022 and December 31, 2021, are included in the nonaccrual loans balance. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Shareholders' Equity [Abstract] | |
Summary of Activity under Repurchase Plan | A summary of the activity under the RP is as follows: Three Months Ended March 31, 2022 2021 Number of shares repurchased - - Average price of shares repurchased $ - $ - Shares remaining to be repurchased 750,000 717,822 |
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 March 31 2022 Total capital to risk-weighted assets Company $ 133,374 12.54 % $ 85,111 8.00 % $ 111,708 10.50 % N/A N/A Bank 133,488 12.56 % 85,030 8.00 % 111,602 10.50 % $ 106,288 10.00 % Tier I capital to risk-weighted assets Company 122,776 11.54 % 63,833 6.00 % 90,431 8.50 % N/A N/A Bank 122,889 11.56 % 63,773 6.00 % 90,345 8.50 % 85,030 8.00 % CET I capital to risk-weighted assets Company 122,776 11.54 % 47,875 4.50 % 74,472 7.00 % N/A N/A Bank 122,889 11.56 % 47,830 4.50 % 74,401 7.00 % 69,087 6.50 % Tier I capital to average assets Company 122,776 9.27 % 52,967 4.00 % N/A N/A N/A N/A Bank 122,889 9.28 % 52,941 4.00 % N/A N/A 66,176 5.00 % As of December 31, 2021 Total capital to risk-weighted assets Company $ 127,946 12.54 % $ 81,620 8.00 % $ 107,126 10.50 % N/A N/A Bank 127,844 12.54 % 81,539 8.00 % 107,020 10.50 % $ 101,924 10.00 % Tier I capital to risk-weighted assets Company 117,631 11.53 % 61,215 6.00 % 86,721 8.50 % N/A N/A Bank 117,528 11.53 % 61,154 6.00 % 86,635 8.50 % 81,539 8.00 % CET I capital to risk-weighted assets Company 117,631 11.53 % 45,911 4.50 % 71,417 7.00 % N/A N/A Bank 117,528 11.53 % 45,866 4.50 % 71,347 7.00 % 66,250 6.50 % Tier I capital to average assets Company 117,631 10.56 % 44,571 4.00 % N/A N/A N/A N/A Bank 117,528 10.55 % 44,571 4.00 % N/A N/A 55,714 5.00 % |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 Three Months Ended March 31, 2022 Outstanding at December 31, 2021 264,000 $ 17.41 Options Granted - - Options Exercised 10,625 18.11 Options Forfeited - - Outstanding at March 31, 2022 253,375 17.38 7.33 $ 1,580,001 Exercisable at March 31, 2022 141,060 $ 18.18 6.91 $ 767,645 |
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. There were no grants for the three months ended March 31, 2022. For the Three Months Ended March 31, 2021 Risk-free interest rate 0.52 % Dividend yield 2.89 % Stock price volatility 66.67 % Expected term 6.41 |
Restricted Stock Units | The following table summarizes share information about RSUs for the three months ended March 31, 2022 and 2021: Number of Shares Wgtd. Avg. Grant Date Fair Value Three Months Ended March 31, 2022 Outstanding at December 31, 2021 172,993 $ 17.58 Shares granted - - Shares vested (15,584 ) 15.98 Shares forfeited - - End of the period balance 157,409 $ 19.32 Number of Shares Wgtd. Avg. Grant Date Fair Value Three Months Ended March 31, 2021 Outstanding at December 31, 2020 118,000 $ 18.09 Shares granted 25,200 14.31 Shares vested (6,398 ) 18.49 Shares forfeited - - End of the period balance 136,802 $ 17.37 |
Disclosures About Fair Value _2
Disclosures About Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 (dollars in thousands): Fair Value (Level 1) (Level 2) (Level 3) March 31 2022 Impaired loans (collateral- dependent) $ 6,844 $ - $ - $ 6,844 December 31, 2021 Impaired loans (collateral- dependent) $ 6,910 $ - $ - $ 6,910 |
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 March 31, 2022 Collateral-dependent impaired loans $ 6,844 Appraisals from comparable properties Estimated cost to sell 20 % December 31, 2021 Collateral-dependent impaired loans $ 6,910 Appraisals from comparable properties Estimated cost to sell 20 % |
Estimated Fair Value of Financial Instruments Not Recorded at Fair Value | The following table presents estimated fair values of the Company’s financial instruments not recorded at fair value at March 31, 2022 and December 31, 2021 (dollars in thousands): Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total March 31, 2022 Financial Assets Cash and due from banks $ 126,275 $ 126,275 $ - $ - $ 126,275 Federal funds sold 8,088 8,088 - - 8,088 Interest-bearing time deposits in other banks 2,241 - 2,241 - 2,241 Loans, net of allowance 1,051,222 - 1,043,933 6,844 1,050,777 Loans held for sale 597 - 597 - 597 Nonmarketable equity securities 1,195 - 1,195 - 1,195 Interest receivable 4,256 - 4,256 - 4,256 Financial Liabilities Deposits $ 1,283,279 $ - $ 1,281,971 $ - $ 1,281,971 Interest payable 103 - 103 - 103 December 31, 2021 Financial Assets Cash and due from banks $ 195,359 $ 195,359 $ - $ - $ 195,359 Federal funds sold 9,493 9,493 - - 9,493 Interest-bearing time deposits in other banks 3,237 - 3,237 - 3,237 Loans, net of allowance 1,018,085 - 1,011,048 6,910 1,017,958 Loans held for sale 464 - 464 - 464 Nonmarketable equity securities 1,202 - 1,202 - 1,202 Interest receivable 4,259 - 4,259 - 4,259 Financial Liabilities Deposits $ 1,217,471 $ - $ 1,217,094 $ - $ 1,217,094 Interest payable 117 - 117 - 117 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 (dollars in thousands): March 31, December 31, 2022 2021 Commitments to extend credit $ 215,268 $ 200,393 Financial and performance standby letters of credit 4,243 5,809 $ 219,511 $ 206,202 |
Recent Events, Including Merg_3
Recent Events, Including Mergers and Acquisitions (Details) - USD ($) $ in Thousands | Dec. 09, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Assets Acquired [Abstract] | ||||
Loans | $ 101,900 | |||
Liabilities Assumed [Abstract] | ||||
Goodwill | 8,807 | $ 8,479 | ||
Increase in goodwill from continued assessment of fair value and assumed tax position | 328 | $ 0 | ||
Gross loans | 102,900 | |||
Discount on gross loans | 1,000 | |||
Watonga Bancshares, Inc [Member] | ||||
Recent Events, Including Mergers and Acquisitions [Abstract] | ||||
Percentage of acquired equity | 100.00% | |||
Cash consideration | $ 29,300 | |||
Assets Acquired [Abstract] | ||||
Cash and cash equivalents | 41,747 | |||
Investment securities available-for-sale | 86,166 | |||
Federal funds sold | 7,941 | |||
Loans | 117,335 | |||
Premises and equipment | 8,815 | |||
Core deposit intangible | 1,254 | |||
Prepaid expenses and other assets | 4,512 | |||
Total assets acquired | 267,770 | |||
Liabilities Assumed [Abstract] | ||||
Deposits | 243,487 | |||
Accounts payable and accrued expenses | 2,580 | |||
Total liabilities assumed | 246,067 | |||
Net assets acquired | 21,703 | |||
Consideration transferred | 29,498 | |||
Goodwill | 7,795 | |||
Increase in goodwill from continued assessment of fair value and assumed tax position | $ 328 | |||
Gross loans | 118,500 | |||
Discount on gross loans | $ 1,200 |
Restriction on Cash and Due f_2
Restriction on Cash and Due from Banks (Details) $ in Millions | Mar. 31, 2022USD ($) |
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 | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Numerator [Abstract] | |||
Net income | $ 6,184 | $ 5,104 | |
Denominator [Abstract] | |||
Weighted-average shares outstanding for basic earnings per share (in shares) | 9,088,975 | 9,049,007 | |
Dilutive effect of stock compensation (in shares) | [1] | 93,080 | 9,678 |
Denominator for diluted earnings per share (in shares) | 9,182,055 | 9,058,685 | |
Earnings per common share [Abstract] | |||
Basic (in dollars per share) | $ 0.68 | $ 0.56 | |
Diluted (in dollars per share) | $ 0.67 | $ 0.56 | |
Nonqualified Stock Options [Member] | |||
Antidilutive securities [Abstract] | |||
Antidilutive shares excluded from the calculation of earnings per share (in shares) | 0 | 265,750 | |
Restricted Stock Units [Member] | |||
Antidilutive securities [Abstract] | |||
Antidilutive shares excluded from the calculation of earnings per share (in shares) | 0 | 30,000 | |
[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 0 and 265,750 for the three month periods ended March 31, 2022 and 2021, respectively; Restricted stock units of 0 and 30,000 for the three month periods ended March 31, 2022 and 2021, respectively. |
Debt Securities, Amortized Cost
Debt Securities, Amortized Cost and Fair Value of Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Available-for-sale [Abstract] | ||||
Amortized cost | $ 203,865 | $ 84,693 | ||
Gross unrealized gains | 0 | 120 | ||
Gross unrealized losses | (5,509) | (5) | ||
Fair value | 198,356 | 84,808 | $ 0 | |
Available-for-sale Securities [Member] | ||||
Available-for-sale [Abstract] | ||||
Amortized cost | 203,865 | 84,693 | ||
Gross unrealized gains | 0 | 120 | ||
Gross unrealized losses | (5,509) | (5) | ||
Fair value | 198,356 | 84,808 | ||
U.S. Federal Agencies [Member] | ||||
Available-for-sale [Abstract] | ||||
Amortized cost | 254 | 311 | ||
Gross unrealized gains | 0 | 2 | ||
Gross unrealized losses | (3) | 0 | ||
Fair value | 251 | 313 | ||
Mortgage-Backed Securities [Member] | ||||
Available-for-sale [Abstract] | ||||
Amortized cost | [1] | 57,697 | 33,085 | |
Gross unrealized gains | [1] | 0 | 69 | |
Gross unrealized losses | [1] | (2,021) | 0 | |
Fair value | [1] | 55,676 | 33,154 | |
State and Political Subdivisions [Member] | ||||
Available-for-sale [Abstract] | ||||
Amortized cost | 34,369 | 45,245 | ||
Gross unrealized gains | 0 | 49 | ||
Gross unrealized losses | (1,406) | 0 | ||
Fair value | 32,963 | 45,294 | ||
U.S. Treasuries [Member] | ||||
Available-for-sale [Abstract] | ||||
Amortized cost | 106,045 | 6,052 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (1,990) | (5) | ||
Fair value | 104,055 | 6,047 | ||
Corporate Debt Securities [Member] | ||||
Available-for-sale [Abstract] | ||||
Amortized cost | 5,500 | 0 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (89) | 0 | ||
Fair value | $ 5,411 | $ 0 | ||
[1] | All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. |
Debt Securities, Contractual Ma
Debt Securities, Contractual Maturity (Details) $ in Thousands | Mar. 31, 2022USD ($)Securities | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | |
Available-for-sale, amortized cost [Abstract] | ||||
Due in one year or less | $ 3,724 | $ 3,622 | ||
Due after one year through five years | 117,047 | 22,030 | ||
Due after five years through ten years | 22,378 | 22,819 | ||
Due after ten years | 3,019 | 3,137 | ||
Mortgage-backed securities | [1] | 57,697 | 33,085 | |
Amortized cost | 203,865 | 84,693 | ||
Available-for-sale, fair value [Abstract] | ||||
Due in one year or less | 3,721 | 3,623 | ||
Due after one year through five years | 114,968 | 22,076 | ||
Due after five years through ten years | 21,111 | 22,821 | ||
Due after ten years | 2,880 | 3,134 | ||
Mortgage-backed securities | [1] | 55,676 | 33,154 | |
Fair value | $ 198,356 | 84,808 | $ 0 | |
Number of holdings of securities of any issuer, other than U.S. Government, exceeding 10% of stockholders' equity | Securities | 2 | |||
Available-for-sale Securities [Member] | ||||
Available-for-sale, amortized cost [Abstract] | ||||
Amortized cost | $ 203,865 | 84,693 | ||
Available-for-sale, fair value [Abstract] | ||||
Fair value | 198,356 | 84,808 | ||
Mortgage-Backed Securities [Member] | ||||
Available-for-sale, amortized cost [Abstract] | ||||
Amortized cost | [1] | 57,697 | 33,085 | |
Available-for-sale, fair value [Abstract] | ||||
Fair value | [1] | 55,676 | 33,154 | |
Fair value of debt securities | 17,510 | |||
U.S. Treasuries [Member] | ||||
Available-for-sale, amortized cost [Abstract] | ||||
Amortized cost | 106,045 | 6,052 | ||
Available-for-sale, fair value [Abstract] | ||||
Fair value | 104,055 | $ 6,047 | ||
Fair value of debt securities | $ 98,430 | |||
[1] | All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. |
Debt Securities, Realized Gains
Debt Securities, Realized Gains and Losses from Sale of Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Securities [Abstract] | |||
Available-for-sale debt securities | $ 198,356 | $ 0 | $ 84,808 |
Realized gains (losses) [Abstract] | |||
Proceeds from sales | 11,820 | 0 | |
Gross realized gains on sales | 0 | ||
Gross realized losses on sales | (127) | ||
Total realized (losses), net | $ (127) | $ 0 |
Debt Securities, Pledged Securi
Debt Securities, Pledged Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Asset Pledged as Collateral without Right [Member] | ||
Pledged securities [Abstract] | ||
Book value of pledged securities | $ 36,728 | $ 37,477 |
Debt Securities, Continuous Unr
Debt Securities, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Continuous unrealized loss position of securities [Abstract] | ||
Impairment loss realized in comprehensive income | $ 0 | |
Securities in continuous unrealized loss position, fair value [Abstract] | ||
Less than twelve months | 198,356 | $ 6,047 |
Twelve months or longer | 0 | 0 |
Fair value | 198,356 | 6,047 |
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than twelve months | (5,509) | (5) |
Twelve months or longer | 0 | 0 |
Unrealized losses | (5,509) | (5) |
U.S. Federal Agencies [Member] | ||
Securities in continuous unrealized loss position, fair value [Abstract] | ||
Less than twelve months | 251 | 0 |
Twelve months or longer | 0 | 0 |
Fair value | 251 | 0 |
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than twelve months | (3) | 0 |
Twelve months or longer | 0 | 0 |
Unrealized losses | (3) | 0 |
Mortgage-Backed Securities [Member] | ||
Securities in continuous unrealized loss position, fair value [Abstract] | ||
Less than twelve months | 55,676 | 0 |
Twelve months or longer | 0 | 0 |
Fair value | 55,676 | 0 |
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than twelve months | (2,021) | 0 |
Twelve months or longer | 0 | 0 |
Unrealized losses | (2,021) | 0 |
State and Political Subdivisions [Member] | ||
Securities in continuous unrealized loss position, fair value [Abstract] | ||
Less than twelve months | 32,963 | 0 |
Twelve months or longer | 0 | 0 |
Fair value | 32,963 | 0 |
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than twelve months | (1,406) | 0 |
Twelve months or longer | 0 | 0 |
Unrealized losses | (1,406) | 0 |
U.S. Treasuries [Member] | ||
Securities in continuous unrealized loss position, fair value [Abstract] | ||
Less than twelve months | 104,055 | 6,047 |
Twelve months or longer | 0 | 0 |
Fair value | 104,055 | 6,047 |
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than twelve months | (1,990) | (5) |
Twelve months or longer | 0 | 0 |
Unrealized losses | (1,990) | (5) |
Corporate Debt Securities [Member] | ||
Securities in continuous unrealized loss position, fair value [Abstract] | ||
Less than twelve months | 5,411 | 0 |
Twelve months or longer | 0 | 0 |
Fair value | 5,411 | 0 |
Securities in continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than twelve months | (89) | 0 |
Twelve months or longer | 0 | 0 |
Unrealized losses | $ (89) | $ 0 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses, Summary of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Summary of loans [Abstract] | ||||
Gross loans | $ 1,064,499 | $ 1,030,978 | ||
Less allowance for loan losses | (10,599) | (10,316) | $ (10,864) | $ (9,639) |
Less deferred loan fees | (2,678) | (2,577) | ||
Net loans | 1,051,222 | 1,018,085 | ||
Construction & Development [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 172,381 | 169,322 | ||
Less allowance for loan losses | (1,717) | (1,695) | (1,367) | (1,239) |
1 - 4 Family Real Estate [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 58,184 | 62,971 | ||
Less allowance for loan losses | (579) | (630) | (433) | (334) |
Commercial Real Estate - Other [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 334,835 | 339,655 | ||
Less allowance for loan losses | (3,334) | (3,399) | (3,877) | (3,337) |
Commercial Real Estate [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 565,400 | 571,948 | ||
Commercial & Industrial [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 416,676 | 361,974 | ||
Less allowance for loan losses | (4,148) | (3,621) | (4,543) | (4,035) |
Commercial & Industrial [Member] | PPP Loans [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 14,200 | 18,700 | ||
Agricultural [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 62,984 | 73,010 | ||
Less allowance for loan losses | (627) | (730) | (532) | (580) |
Consumer [Member] | ||||
Summary of loans [Abstract] | ||||
Gross loans | 19,439 | 24,046 | ||
Less allowance for loan losses | $ (194) | $ (241) | $ (112) | $ (114) |
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 | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Activity in allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | $ 10,316 | $ 9,639 | |
Charge-offs | (2) | (50) | |
Recoveries | 9 | 0 | |
Net (charge-offs) recoveries | 7 | (50) | |
Provision (credit) for loan losses | 276 | 1,275 | |
Balance, end of period | 10,599 | 10,864 | |
Allowance Balance [Abstract] | |||
Ending balance, individually evaluated for impairment | 249 | $ 253 | |
Ending balance, collectively evaluated for impairment | 10,350 | 10,063 | |
Total | 10,599 | 10,864 | 10,316 |
Gross Loans [Abstract] | |||
Ending balance, individually evaluated for impairment | 28,169 | 23,854 | |
Ending balance, collectively evaluated for impairment | 1,036,330 | 1,007,124 | |
Total Loans | 1,064,499 | 1,030,978 | |
Construction & Development [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 1,695 | 1,239 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Provision (credit) for loan losses | 22 | 128 | |
Balance, end of period | 1,717 | 1,367 | |
Allowance Balance [Abstract] | |||
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 1,717 | 1,695 | |
Total | 1,717 | 1,367 | 1,695 |
Gross Loans [Abstract] | |||
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 172,381 | 169,322 | |
Total Loans | 172,381 | 169,322 | |
1 - 4 Family Real Estate [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 630 | 334 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Provision (credit) for loan losses | (51) | 99 | |
Balance, end of period | 579 | 433 | |
Allowance Balance [Abstract] | |||
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 579 | 630 | |
Total | 579 | 433 | 630 |
Gross Loans [Abstract] | |||
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 58,184 | 62,971 | |
Total Loans | 58,184 | 62,971 | |
Commercial Real Estate - Other [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 3,399 | 3,337 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Provision (credit) for loan losses | (65) | 540 | |
Balance, end of period | 3,334 | 3,877 | |
Allowance Balance [Abstract] | |||
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 3,334 | 3,399 | |
Total | 3,334 | 3,877 | 3,399 |
Gross Loans [Abstract] | |||
Ending balance, individually evaluated for impairment | 14,043 | 14,481 | |
Ending balance, collectively evaluated for impairment | 320,792 | 325,174 | |
Total Loans | 334,835 | 339,655 | |
Commercial & Industrial [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 3,621 | 4,035 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Provision (credit) for loan losses | 527 | 508 | |
Balance, end of period | 4,148 | 4,543 | |
Allowance Balance [Abstract] | |||
Ending balance, individually evaluated for impairment | 249 | 253 | |
Ending balance, collectively evaluated for impairment | 3,899 | 3,368 | |
Total | 4,148 | 4,543 | 3,621 |
Gross Loans [Abstract] | |||
Ending balance, individually evaluated for impairment | 14,102 | 9,354 | |
Ending balance, collectively evaluated for impairment | 402,574 | 352,620 | |
Total Loans | 416,676 | 361,974 | |
Agricultural [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 730 | 580 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Provision (credit) for loan losses | (103) | (48) | |
Balance, end of period | 627 | 532 | |
Allowance Balance [Abstract] | |||
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 627 | 730 | |
Total | 627 | 532 | 730 |
Gross Loans [Abstract] | |||
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 62,984 | 73,010 | |
Total Loans | 62,984 | 73,010 | |
Consumer [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 241 | 114 | |
Charge-offs | (2) | (50) | |
Recoveries | 9 | 0 | |
Net (charge-offs) recoveries | 7 | (50) | |
Provision (credit) for loan losses | (54) | 48 | |
Balance, end of period | 194 | 112 | |
Allowance Balance [Abstract] | |||
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 194 | 241 | |
Total | 194 | $ 112 | 241 |
Gross Loans [Abstract] | |||
Ending balance, individually evaluated for impairment | 24 | 19 | |
Ending balance, collectively evaluated for impairment | 19,415 | 24,027 | |
Total Loans | $ 19,439 | $ 24,046 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses, Loan Portfolio Based on Internal Rating Category (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | $ 1,064,499 | $ 1,030,978 |
1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 1,003,330 | 952,517 |
2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 15,461 | 19,889 |
3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 17,539 | 33,872 |
4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 28,169 | 24,700 |
Construction & Development [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 172,381 | 169,322 |
Construction & Development [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 172,381 | 169,322 |
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 | 58,184 | 62,971 |
1 - 4 Family Real Estate [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 58,184 | 62,971 |
1 - 4 Family Real Estate [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
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 | 334,835 | 339,655 |
Commercial Real Estate - Other [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 288,783 | 282,268 |
Commercial Real Estate - Other [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 15,000 | 14,976 |
Commercial Real Estate - Other [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 17,009 | 27,112 |
Commercial Real Estate - Other [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 14,043 | 15,299 |
Commercial & Industrial [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 416,676 | 361,974 |
Commercial & Industrial [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 402,072 | 341,661 |
Commercial & Industrial [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 116 | 4,658 |
Commercial & Industrial [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 386 | 6,300 |
Commercial & Industrial [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 14,102 | 9,355 |
Agricultural [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 62,984 | 73,010 |
Agricultural [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 62,513 | 72,295 |
Agricultural [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 327 | 255 |
Agricultural [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 144 | 460 |
Agricultural [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Consumer [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 19,439 | 24,046 |
Consumer [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 19,397 | 24,000 |
Consumer [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 18 | 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 | $ 24 | $ 46 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Past Due [Abstract] | ||
Total Loans | $ 1,064,499 | $ 1,030,978 |
Total Loans > 90 Days & Accruing | 91 | 496 |
Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 1,284 | 852 |
30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 922 | 48 |
60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 171 | 208 |
Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 191 | 596 |
Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 1,063,215 | 1,030,126 |
Construction & Development [Member] | ||
Past Due [Abstract] | ||
Total Loans | 172,381 | 169,322 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Construction & Development [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Construction & Development [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
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 | 172,381 | 169,322 |
1 - 4 Family Real Estate [Member] | ||
Past Due [Abstract] | ||
Total Loans | 58,184 | 62,971 |
Total Loans > 90 Days & Accruing | 0 | 0 |
1 - 4 Family Real Estate [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 26 | 0 |
1 - 4 Family Real Estate [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 26 | 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 | 58,158 | 62,971 |
Commercial Real Estate - Other [Member] | ||
Past Due [Abstract] | ||
Total Loans | 334,835 | 339,655 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Commercial Real Estate - Other [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 167 | 174 |
Commercial Real Estate - Other [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Commercial Real Estate - Other [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 167 | 174 |
Commercial Real Estate - Other [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 0 | 0 |
Commercial Real Estate - Other [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 334,668 | 339,481 |
Commercial & Industrial [Member] | ||
Past Due [Abstract] | ||
Total Loans | 416,676 | 361,974 |
Total Loans > 90 Days & Accruing | 19 | 401 |
Commercial & Industrial [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 149 | 520 |
Commercial & Industrial [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 27 | 0 |
Commercial & Industrial [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 3 | 19 |
Commercial & Industrial [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 119 | 501 |
Commercial & Industrial [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 416,527 | 361,454 |
Agricultural [Member] | ||
Past Due [Abstract] | ||
Total Loans | 62,984 | 73,010 |
Total Loans > 90 Days & Accruing | 59 | 77 |
Agricultural [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 502 | 77 |
Agricultural [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 443 | 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 | 59 | 77 |
Agricultural [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | 62,482 | 72,933 |
Consumer [Member] | ||
Past Due [Abstract] | ||
Total Loans | 19,439 | 24,046 |
Total Loans > 90 Days & Accruing | 13 | 18 |
Consumer [Member] | Past Due [Member] | ||
Past Due [Abstract] | ||
Total Loans | 440 | 81 |
Consumer [Member] | 30-59 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 426 | 48 |
Consumer [Member] | 60-89 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 1 | 15 |
Consumer [Member] | Greater than 90 Days [Member] | ||
Past Due [Abstract] | ||
Total Loans | 13 | 18 |
Consumer [Member] | Current [Member] | ||
Past Due [Abstract] | ||
Total Loans | $ 18,999 | $ 23,965 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses, Impaired Loans and TDR's (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)Contract | Dec. 31, 2021USD ($) | |
Impaired Loans [Abstract] | ||
Unpaid principal balance | $ 29,432 | $ 24,906 |
Recorded investment with no allowance | 27,920 | 23,601 |
Recorded investment with an allowance | 249 | 253 |
Total recorded investment | 28,169 | 23,854 |
Related allowance | 249 | 253 |
Average recorded investment | 26,397 | 24,657 |
Interest income recognized | 353 | 1,178 |
Troubled Debt Restructurings [Abstract] | ||
TDR loans impaired | $ 1,400 | 1,400 |
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 |
Recorded investment with no allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Total recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Interest income recognized | 0 | 0 |
1 - 4 Family Real Estate [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 0 | 0 |
Recorded investment with no allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Total recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Interest income recognized | 0 | 0 |
Commercial Real Estate - Other [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 14,702 | 15,412 |
Recorded investment with no allowance | 14,043 | 14,481 |
Recorded investment with an allowance | 0 | 0 |
Total recorded investment | 14,043 | 14,481 |
Related allowance | 0 | 0 |
Average recorded investment | 14,831 | 11,879 |
Interest income recognized | 203 | 902 |
Commercial & Industrial [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 14,705 | 9,476 |
Recorded investment with no allowance | 13,853 | 9,101 |
Recorded investment with an allowance | 249 | 253 |
Total recorded investment | 14,102 | 9,354 |
Related allowance | 249 | 253 |
Average recorded investment | 11,529 | 12,584 |
Interest income recognized | 149 | 275 |
Agricultural [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 0 | 0 |
Recorded investment with no allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Total recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 4 | 161 |
Interest income recognized | 0 | 0 |
Consumer [Member] | ||
Impaired Loans [Abstract] | ||
Unpaid principal balance | 25 | 18 |
Recorded investment with no allowance | 24 | 19 |
Recorded investment with an allowance | 0 | 0 |
Total recorded investment | 24 | 19 |
Related allowance | 0 | 0 |
Average recorded investment | 33 | 33 |
Interest income recognized | 1 | 1 |
Commercial Real Estate [Member] | ||
Troubled Debt Restructurings [Abstract] | ||
TDR loans impaired | $ 1,400 | $ 1,400 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses, Information Regarding Nonperforming Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | $ 9,539 | $ 9,885 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 91 | 496 | |
Total nonperforming loans | 9,630 | 10,381 | |
TDR loans impaired | 1,400 | 1,400 | |
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 | 1,518 | 2,708 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 0 | 0 | |
Total nonperforming loans | 1,518 | 2,708 | |
Commercial & Industrial [Member] | |||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | 8,021 | 7,163 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 19 | 401 | |
Total nonperforming loans | 8,040 | 7,564 | |
Agricultural [Member] | |||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | 0 | 0 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 59 | 77 | |
Total nonperforming loans | 59 | 77 | |
Consumer [Member] | |||
Nonperforming Assets [Abstract] | |||
Nonaccrual loans | 0 | 14 | |
Troubled-debt restructurings | [1] | 0 | 0 |
Accruing loans 90 or more days past due | 13 | 18 | |
Total nonperforming loans | $ 13 | $ 32 | |
[1] | $1.4 million of TDRs as of March 31, 2022 and December 31, 2021, are included in the nonaccrual loans balance. |
Shareholders' Equity, Repurchas
Shareholders' Equity, Repurchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 02, 2020 | Mar. 13, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Oct. 28, 2021 | Sep. 05, 2019 |
Stock Repurchase Program [Abstract] | |||||||
Gross loans | $ 1,064,499 | $ 1,030,978 | |||||
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 | 0 | |||||
Average price of shares repurchased (in dollars per share) | $ 0 | $ 0 | |||||
Shares remaining to be repurchased (in shares) | 750,000 | 717,822 | |||||
New Repurchase Plan [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 | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 133,374 | $ 127,946 |
Total capital to risk-weighted assets, actual ratio | 0.1254 | 0.1254 |
Total capital to risk-weighted assets, minimum capital requirements amount | $ 85,111 | $ 81,620 |
Total capital to risk-weighted assets, minimum capital requirements ratio | 0.0800 | 0.0800 |
Total capital to risk-weighted assets, capital conservation buffer amount | $ 111,708 | $ 107,126 |
Total capital to risk-weighted assets, capital conservation buffer ratio | 0.1050 | 0.1050 |
Tier I capital to risk-weighted assets, actual amount | $ 122,776 | $ 117,631 |
Tier I capital to risk-weighted assets, actual ratio | 0.1154 | 0.1153 |
Tier I capital to risk-weighted assets, minimum capital requirements amount | $ 63,833 | $ 61,215 |
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 | $ 90,431 | $ 86,721 |
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 | $ 122,776 | $ 117,631 |
CET I capital to risk-weighted assets, actual ratio | 0.1154 | 0.1153 |
CET I capital to risk-weighted assets, minimum capital requirements amount | $ 47,875 | $ 45,911 |
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 | $ 74,472 | $ 71,417 |
CET I capital to risk-weighted assets, capital conservation buffer ratio | 0.0700 | 0.0700 |
Tier I capital to average assets, actual amount | $ 122,776 | $ 117,631 |
Tier I capital to average assets, actual ratio | 0.0927 | 0.1056 |
Tier I capital to average assets, minimum capital requirements amount | $ 52,967 | $ 44,571 |
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 | $ 133,488 | $ 127,844 |
Total capital to risk-weighted assets, actual ratio | 0.1256 | 0.1254 |
Total capital to risk-weighted assets, minimum capital requirements amount | $ 85,030 | $ 81,539 |
Total capital to risk-weighted assets, minimum capital requirements ratio | 0.0800 | 0.0800 |
Total capital to risk-weighted assets, capital conservation buffer amount | $ 111,602 | $ 107,020 |
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 | $ 106,288 | $ 101,924 |
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 | $ 122,889 | $ 117,528 |
Tier I capital to risk-weighted assets, actual ratio | 0.1156 | 0.1153 |
Tier I capital to risk-weighted assets, minimum capital requirements amount | $ 63,773 | $ 61,154 |
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 | $ 90,345 | $ 86,635 |
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 | $ 85,030 | $ 81,539 |
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 | $ 122,889 | $ 117,528 |
CET I capital to risk-weighted assets, actual ratio | 0.1156 | 0.1153 |
CET I capital to risk-weighted assets, minimum capital requirements amount | $ 47,830 | $ 45,866 |
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 | $ 74,401 | $ 71,347 |
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 | $ 69,087 | $ 66,250 |
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 | $ 122,889 | $ 117,528 |
Tier I capital to average assets, actual ratio | 0.0928 | 0.1055 |
Tier I capital to average assets, minimum capital requirements amount | $ 52,941 | $ 44,571 |
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 | $ 66,176 | $ 55,714 |
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 | Mar. 31, 2022USD ($) |
Shareholders' Equity [Abstract] | |
Retained earnings available for dividend declaration | $ 41.4 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related-Party Transactions [Abstract] | |||
Loans outstanding | $ 0 | $ 0 | |
Haines Realty Investments Company, LLC [Member] | |||
Sale of subsidiary [Abstract] | |||
Lease expense | $ 39,000 | $ 46,000 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Benefits [Abstract] | ||
Percentage of employee's compensation matched by company | 5.00% | |
Defined benefit plan, employer contribution | $ 94,000 | $ 65,000 |
Share-based Compensation [Abstract] | ||
Compensation expenses | 286,000 | 302,000 |
Incentive Plan [Member] | ||
Share-based Compensation [Abstract] | ||
Compensation expenses | $ 286,000 | $ 302,000 |
Shares available for future grants (in shares) | 706,587 | |
Unearned stock-based compensation expense [Abstract] | ||
Risk-free interest rate | 0.52% | |
Dividend yield | 2.89% | |
Stock price volatility | 66.67% | |
Expected term | 6 years 4 months 28 days | |
Incentive Plan [Member] | Stock Option [Member] | ||
Share-based Compensation [Abstract] | ||
Vesting period | 4 years | |
Unrecognized compensation expense | $ 514,000 | $ 834,000 |
Unvested and/or unexercised stock options (in shares) | 253,375 | 265,750 |
Period for recognition of compensation cost not yet recognized | 2 years 3 months 25 days | 3 years 1 month 2 days |
Stock Option Activity [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 264,000 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | 10,625 | |
Options forfeited (in shares) | 0 | |
Outstanding at end of period (in shares) | 253,375 | |
Exercisable at end of period (in shares) | 141,060 | |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 17.41 | |
Options granted (in dollars per share) | 0 | |
Options exercised (in dollars per share) | 18.11 | |
Options forfeited (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | 17.38 | |
Exercisable at end of period (in dollars per share) | $ 18.18 | |
Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term, Outstanding | 7 years 3 months 29 days | |
Weighted average remaining contractual term, Exercisable | 6 years 10 months 28 days | |
Aggregate intrinsic value, Outstanding | $ 1,580,001,000 | |
Aggregate intrinsic value, Exercisable | 767,645,000 | |
Incentive Plan [Member] | RSUs [Member] | ||
Share-based Compensation [Abstract] | ||
Unrecognized compensation expense | $ 2,600,000 | $ 2,100,000 |
Period for recognition of compensation cost not yet recognized | 2 years 10 months 2 days | 3 years |
Restricted Stock Units [Roll Forward] | ||
Outstanding, beginning of the period (in shares) | 172,993 | 118,000 |
Shares granted (in shares) | 0 | 25,200 |
Shares vested (in shares) | (15,584) | (6,398) |
Shares forfeited (in shares) | 0 | 0 |
Outstanding, end of the period (in shares) | 157,409 | 136,802 |
Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding, beginning of period (in dollars per share) | $ 17.58 | $ 18.09 |
Shares granted (in dollars per share) | 0 | 14.31 |
Shares settled (in dollars per share) | 15.98 | 18.49 |
Shares forfeited (in dollars per share) | 0 | 0 |
Outstanding, end of period (in dollars per share) | $ 19.32 | $ 17.37 |
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) - Nonrecurring Basis [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | $ 6,844 | $ 6,910 |
Level 1 [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Level 2 [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Level 3 [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | $ 6,844 | $ 6,910 |
Disclosures About Fair Value _4
Disclosures About Fair Value of Assets and Liabilities, Quantitative Information (Details) - Nonrecurring Basis [Member] $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | $ 6,844 | $ 6,910 |
Level 3 [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | $ 6,844 | $ 6,910 |
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 | 0.20 | 0.20 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Assets and Liabilities, Estimated Fair Value of Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | $ 126,275 | $ 195,359 |
Federal funds sold | 8,088 | 9,493 |
Interest-bearing time deposits in other banks | 2,241 | 3,237 |
Loans, net of allowance | 1,051,222 | 1,018,085 |
Loans held for sale | 597 | 464 |
Nonmarketable equity securities | 1,195 | 1,202 |
Interest receivable | 4,256 | 4,259 |
Financial Liabilities [Abstract] | ||
Deposits | 1,283,279 | 1,217,471 |
Interest payable | 103 | 117 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 126,275 | 195,359 |
Federal funds sold | 8,088 | 9,493 |
Interest-bearing time deposits in other banks | 2,241 | 3,237 |
Loans, net of allowance | 1,050,777 | 1,017,958 |
Loans held for sale | 597 | 464 |
Nonmarketable equity securities | 1,195 | 1,202 |
Interest receivable | 4,256 | 4,259 |
Financial Liabilities [Abstract] | ||
Deposits | 1,281,971 | 1,217,094 |
Interest payable | 103 | 117 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 126,275 | 195,359 |
Federal funds sold | 8,088 | 9,493 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 0 | 0 |
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 |
Federal funds sold | 0 | 0 |
Interest-bearing time deposits in other banks | 2,241 | 3,237 |
Loans, net of allowance | 1,043,933 | 1,011,048 |
Loans held for sale | 597 | 464 |
Nonmarketable equity securities | 1,195 | 1,202 |
Interest receivable | 4,256 | 4,259 |
Financial Liabilities [Abstract] | ||
Deposits | 1,281,971 | 1,217,094 |
Interest payable | 103 | 117 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 6,844 | 6,910 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 219,511 | $ 206,202 |
Commitments to Extend Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | 215,268 | 200,393 |
Financial and Performance Standby Letters of Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 4,243 | $ 5,809 |
Significant Estimates and Con_2
Significant Estimates and Concentrations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 1,064,499 | $ 1,030,978 |
Goodwill | 8,807 | $ 8,479 |
Hospitality Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | 35,700 | |
Hospitality Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 179,200 | |
Hospitality Loans [Member] | Gross Loans [Member] | Product Concentration Risk [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 17.00% | |
Energy Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | $ 25,500 | |
Energy Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 115,600 | |
Energy Loans [Member] | Gross Loans [Member] | Product Concentration Risk [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 11.00% |