Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-12436 | |
Entity Registrant Name | COLONY BANKCORP, INC. | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-1492391 | |
Entity Address, Address Line One | 115 South Grant Street | |
Entity Address, City or Town | Fitzgerald | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 31750 | |
City Area Code | 229 | |
Local Phone Number | 426-6000 | |
Title of 12(b) Security | Common Stock, Par Value $1.00 per share | |
Trading Symbol | CBAN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,589,884 | |
Entity Central Index Key | 0000711669 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 22,404 | $ 25,339 |
Federal funds sold and interest-bearing deposits in banks | 59,598 | 57,983 |
Cash and cash equivalents | 82,002 | 83,322 |
Investment securities available-for-sale | 376,580 | 407,382 |
Investment securities held-to-maturity, at amortized cost (fair value $393,359 and $405,576, respectively) | 442,945 | 449,031 |
Other investments | 18,491 | 16,868 |
Loans held for sale | 40,132 | 27,958 |
Loans, net of unearned income | 1,865,574 | 1,883,470 |
Allowance for credit losses | (18,806) | (18,371) |
Loans, net | 1,846,768 | 1,865,099 |
Premises and equipment | 38,343 | 39,870 |
Other real estate owned | 582 | 448 |
Goodwill | 48,923 | 48,923 |
Other intangible assets | 3,535 | 4,192 |
Bank-owned life insurance | 57,173 | 56,925 |
Deferred income taxes, net | 24,164 | 25,405 |
Other assets | 28,269 | 27,999 |
Total assets | 3,007,907 | 3,053,422 |
Deposits | ||
Noninterest-bearing | 437,623 | 498,992 |
Interest-bearing | 2,022,602 | 2,045,798 |
Total deposits | 2,460,225 | 2,544,790 |
Federal Home Loan Bank advances | 205,000 | 175,000 |
Other borrowings | 62,992 | 63,445 |
Other liabilities | 14,947 | 15,252 |
Total liabilities | 2,743,164 | 2,798,487 |
Stockholders' equity: | ||
Preferred stock, stated value $1,000; 10,000,000 shares authorized, none issued or outstanding as of June 30, 2024 and December 31, 2023, respectively | 0 | 0 |
Common stock, par value $1.00 per share; 50,000,000 shares authorized, 17,538,611 and 17,564,182 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 17,539 | 17,564 |
Paid in capital | 169,132 | 168,614 |
Retained earnings | 131,256 | 124,400 |
Accumulated other comprehensive loss, net of tax | (53,184) | (55,643) |
Total stockholders' equity | 264,743 | 254,935 |
Total liabilities and stockholders' equity | $ 3,007,907 | $ 3,053,422 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Amortized cost | $ 424,685 | $ 455,294 |
Fair Value | $ 393,359 | $ 405,576 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 17,538,611 | 17,564,182 |
Common stock, shares outstanding (in shares) | 17,538,611 | 17,564,182 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest income | ||||
Loans, including fees | $ 27,604 | $ 24,067 | $ 54,701 | $ 46,220 |
Investment securities | 5,048 | 5,989 | 10,569 | 11,849 |
Deposits with other banks and short term investments | 684 | 708 | 1,376 | 1,065 |
Total interest income | 33,336 | 30,764 | 66,646 | 59,134 |
Interest expense | ||||
Deposits | 12,106 | 8,556 | 24,198 | 13,555 |
Federal funds purchased | 0 | 47 | 0 | 135 |
Federal Home Loan Bank advances | 1,821 | 1,947 | 3,392 | 3,573 |
Other borrowings | 1,000 | 1,033 | 1,993 | 2,122 |
Total interest expense | 14,927 | 11,583 | 29,583 | 19,385 |
Net interest income | 18,409 | 19,181 | 37,063 | 39,749 |
Provision for credit losses | 650 | 200 | 1,650 | 1,100 |
Net interest income after provision for credit losses | 17,759 | 18,981 | 35,413 | 38,649 |
Noninterest income | ||||
Gain on sales of SBA loans | 2,347 | 1,105 | 4,393 | 2,162 |
Loss on sales of securities | (425) | 0 | (980) | 0 |
BOLI Income | 398 | 358 | 931 | 689 |
Insurance commissions | 420 | 449 | 886 | 909 |
Other | 949 | 868 | 2,296 | 1,514 |
Total noninterest income | 9,497 | 8,952 | 18,984 | 16,611 |
Noninterest expense | ||||
Salaries and employee benefits | 12,277 | 13,348 | 24,296 | 25,957 |
Occupancy and equipment | 1,475 | 1,499 | 2,982 | 3,121 |
Information technology expenses | 2,227 | 2,001 | 4,338 | 4,342 |
Professional fees | 704 | 881 | 1,537 | 1,596 |
Advertising and public relations | 967 | 673 | 1,927 | 1,666 |
Communications | 216 | 192 | 442 | 486 |
Other | 2,464 | 2,838 | 5,205 | 5,429 |
Total noninterest expense | 20,330 | 21,432 | 40,727 | 42,597 |
Income before income taxes | 6,926 | 6,501 | 13,670 | 12,663 |
Income taxes | 1,452 | 1,199 | 2,863 | 2,318 |
Net income | $ 5,474 | $ 5,302 | $ 10,807 | $ 10,345 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.31 | $ 0.30 | $ 0.62 | $ 0.59 |
Diluted (in dollars per share) | 0.31 | 0.30 | 0.62 | 0.59 |
Dividends declared per share (in dollars per share) | $ 0.1125 | $ 0.1100 | $ 0.2250 | $ 0.2200 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 17,551,007 | 17,580,557 | 17,555,609 | 17,588,081 |
Diluted (in shares) | 17,551,007 | 17,580,557 | 17,555,609 | 17,588,081 |
Service charges on deposits | ||||
Noninterest income | ||||
Noninterest income | $ 2,288 | $ 2,027 | $ 4,662 | $ 3,941 |
Mortgage fee income | ||||
Noninterest income | ||||
Noninterest income | 1,442 | 2,014 | 2,691 | 3,197 |
Interchange fees | ||||
Noninterest income | ||||
Noninterest income | $ 2,078 | $ 2,131 | $ 4,105 | $ 4,199 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,474 | $ 5,302 | $ 10,807 | $ 10,345 |
Other comprehensive income (loss): | ||||
Net unrealized gains (losses) on securities arising during the period | (326) | (8,433) | (1,126) | (809) |
Tax effect | 68 | 1,556 | 235 | 148 |
Reclassification adjustment for amortization of unrealized holding losses from the transfer of securities from available-for-sale to held-to-maturity | 1,222 | 4,889 | 2,344 | 4,880 |
Tax effect | (256) | (902) | (491) | (893) |
Realized losses on sales of available-for-sale securities included in net income | 425 | 0 | 980 | 0 |
Tax effect | (89) | 0 | (205) | 0 |
Unrealized gains on derivative instruments designated as cash flow hedges | 336 | 253 | 1,264 | 253 |
Tax effect | (70) | (47) | (265) | (47) |
Realized gains on derivative instruments recognized in net income | (177) | (9) | (351) | (9) |
Tax effect | 37 | 2 | 74 | 2 |
Total other comprehensive income (loss) | 1,170 | (2,691) | 2,459 | 3,525 |
Comprehensive income | $ 6,644 | $ 2,611 | $ 13,266 | $ 13,870 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Revision of Prior Period, Accounting Standards Update, Adjustment | [1] | Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 17,598,123 | ||||||
Balance at beginning of period at Dec. 31, 2022 | $ 230,268 | $ (1,198) | $ 17,598 | $ 167,537 | $ 111,573 | $ (66,440) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 3,525 | 3,525 | |||||
Dividends on common shares | (3,863) | (3,863) | |||||
Issuance of restricted stock, net of forfeitures (in shares) | (8,671) | ||||||
Issuance of restricted stock, net of forfeitures | 0 | $ (9) | 9 | ||||
Tax withholding related to vesting of restricted stock (in shares) | (6,310) | ||||||
Tax withholding related to vesting of restricted stock | (78) | $ (6) | (72) | ||||
Repurchase of shares (in shares) | (41,481) | ||||||
Repurchase of shares | (406) | $ (41) | (365) | ||||
Stock-based compensation expense | 862 | 862 | |||||
Net income | 10,345 | 10,345 | |||||
Balance at end of period (in shares) at Jun. 30, 2023 | 17,541,661 | ||||||
Balance at end of period at Jun. 30, 2023 | 239,455 | $ 17,542 | 167,971 | 116,857 | (62,915) | ||
Balance at beginning of period (in shares) at Mar. 31, 2023 | 17,593,879 | ||||||
Balance at beginning of period at Mar. 31, 2023 | 238,777 | $ 17,594 | 167,922 | 113,485 | (60,224) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | (2,691) | (2,691) | |||||
Dividends on common shares | (1,930) | (1,930) | |||||
Issuance of restricted stock, net of forfeitures (in shares) | (10,217) | ||||||
Issuance of restricted stock, net of forfeitures | 0 | $ (10) | 10 | ||||
Tax withholding related to vesting of restricted stock (in shares) | (520) | ||||||
Tax withholding related to vesting of restricted stock | (5) | $ (1) | (4) | ||||
Repurchase of shares (in shares) | (41,481) | ||||||
Repurchase of shares | (406) | $ (41) | (365) | ||||
Stock-based compensation expense | 408 | 408 | |||||
Net income | 5,302 | 5,302 | |||||
Balance at end of period (in shares) at Jun. 30, 2023 | 17,541,661 | ||||||
Balance at end of period at Jun. 30, 2023 | $ 239,455 | $ 17,542 | 167,971 | 116,857 | (62,915) | ||
Balance at beginning of period (in shares) at Dec. 31, 2023 | 17,564,182 | 17,564,182 | |||||
Balance at beginning of period at Dec. 31, 2023 | $ 254,935 | $ 17,564 | 168,614 | 124,400 | (55,643) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 2,459 | 2,459 | |||||
Dividends on common shares | (3,951) | (3,951) | |||||
Issuance of restricted stock, net of forfeitures (in shares) | (594) | ||||||
Issuance of restricted stock, net of forfeitures | 0 | ||||||
Tax withholding related to vesting of restricted stock (in shares) | (4,977) | ||||||
Tax withholding related to vesting of restricted stock | (66) | $ (5) | (61) | ||||
Repurchase of shares (in shares) | (20,000) | ||||||
Repurchase of shares | (239) | $ (20) | (219) | ||||
Stock-based compensation expense | 798 | 798 | |||||
Net income | $ 10,807 | 10,807 | |||||
Balance at end of period (in shares) at Jun. 30, 2024 | 17,538,611 | 17,538,611 | |||||
Balance at end of period at Jun. 30, 2024 | $ 264,743 | $ 17,539 | 169,132 | 131,256 | (53,184) | ||
Balance at beginning of period (in shares) at Mar. 31, 2024 | 17,558,611 | ||||||
Balance at beginning of period at Mar. 31, 2024 | 259,914 | $ 17,559 | 168,951 | 127,758 | (54,354) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 1,170 | 1,170 | |||||
Dividends on common shares | (1,976) | (1,976) | |||||
Repurchase of shares (in shares) | (20,000) | ||||||
Repurchase of shares | (239) | $ (20) | (219) | ||||
Stock-based compensation expense | 400 | 400 | |||||
Net income | $ 5,474 | 5,474 | |||||
Balance at end of period (in shares) at Jun. 30, 2024 | 17,538,611 | 17,538,611 | |||||
Balance at end of period at Jun. 30, 2024 | $ 264,743 | $ 17,539 | $ 169,132 | $ 131,256 | $ (53,184) | ||
[1]Represents the impact of the adoption of Accounting Standards Update ("ASU") No. 2016-13: CECL |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share (in dollars per share) | $ 0.1125 | $ 0.1100 | $ 0.2250 | $ 0.2200 |
Repurchase of shares | $ (239) | $ (406) | $ (239) | $ (406) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Activities | ||
Net income | $ 10,807 | $ 10,345 |
Adjustments reconciling net income to net cash provided by operating activities: | ||
Provision for credit losses | 1,650 | 1,100 |
Depreciation, amortization, and accretion | 4,230 | 4,512 |
Equity method investment loss | (117) | (95) |
Share-based compensation expense | 798 | 862 |
Net change in servicing asset | (743) | (373) |
Loss on sales of securities, available-for-sale | 980 | 0 |
Gain on sales of SBA loans | (4,393) | (2,162) |
Gain on sales of other real estate owned | (174) | (13) |
Writedown of bank building | 197 | 0 |
Gain on sales of premises & equipment | (10) | (107) |
Originations of loans held for sale | (140,472) | (134,992) |
Proceeds from sales of loans held for sale | 132,691 | 126,629 |
Change in bank-owned life insurance | (948) | (702) |
Deferred tax benefit | 400 | (544) |
Change in other assets | 1,442 | (279) |
Change in other liabilities | (189) | 2,483 |
Net cash provided by operating activities | 6,149 | 6,664 |
Investing Activities | ||
Purchases of investment securities, available-for-sale | (23,217) | (3,914) |
Proceeds from maturities, calls, and paydowns of investment securities, available-for-sale | 34,221 | 15,925 |
Proceeds from sales of investment securities, available-for-sale | 17,750 | 0 |
Proceeds from maturities, calls and paydowns of securities, held-to-maturity | 7,150 | 13,359 |
Change in loans, net | 16,105 | (102,403) |
Purchase of premises and equipment | (231) | (2,073) |
Proceeds from sales of premises and equipment | 10 | 125 |
Proceeds from sales of other real estate owned | 870 | 215 |
Proceeds from bank-owned life insurance | 700 | 0 |
Redemption of other investments | 0 | 800 |
Redemption (purchase) of Federal Home Loan Bank Stock | (1,506) | (1,395) |
Net cash provided by (used in) investing activities | 51,852 | (79,361) |
Financing Activities | ||
Change in noninterest-bearing customer deposits | (61,369) | (28,051) |
Change in interest-bearing customer deposits | (23,196) | 164,265 |
Dividends paid for common stock | (3,951) | (3,863) |
Repayments on Federal Home Loan Bank Advances | (140,000) | (575,000) |
Proceeds from Federal Home Loan Bank Advances | 170,000 | 605,000 |
Repayments on other borrowings | (20,000) | (15,000) |
Proceeds from other borrowings | 20,000 | 0 |
Redemption of subordinated debt | (500) | 0 |
Repurchase of shares | (239) | (406) |
Tax withholding related to vesting of restricted stock | (66) | (78) |
Net cash provided by (used in) financing activities | (59,321) | 146,867 |
Net increase in cash and cash equivalents | (1,320) | 74,170 |
Cash and cash equivalents at beginning of period | 83,322 | 80,678 |
Cash and cash equivalents at end of period | 82,002 | 154,848 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 30,019 | 17,954 |
Cash paid during the period for income taxes | $ 2,911 | $ 1,930 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Presentation Colony Bankcorp, Inc. (the “Company”) is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the “Bank”). The “Company” or “our,” as used herein, includes Colony Bank, except where the context requires otherwise. All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") utilized in the commercial banking industry for interim financial information and Regulation S-X. Accordingly, the accompanying unaudited interim consolidated financial statements do not include all of the information or notes required for complete financial statements. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results which may be expected for the year ending December 31, 2024. These statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). Nature of Operations The Bank provides a full range of retail, commercial and mortgage banking services as well as government guaranteed lending, consumer insurance, wealth management and merchant services for consumers and small- to medium-size businesses located primarily in north, central, south and coastal Georgia, Birmingham, Alabama and Tallahassee and the Florida Panhandle. The Bank is headquartered in Fitzgerald, Georgia with locations in the Georgia cities of Albany, Ashburn, Athens, Atlanta, Augusta, Broxton, Cedartown, Centerville, Chickamauga, Columbus, Cordele, Douglas, Eastman, Fayetteville, Fitzgerald, LaGrange, Leesburg, Macon, Manchester, Moultrie, Quitman, Rochelle, Rockmart, Savannah, Statesboro, Sylvester, Thomaston, Tifton, Valdosta and Warner Robins along with loan production offices in Birmingham, Alabama and Tallahassee, Florida. Lending and investing activities are funded primarily by deposits gathered through its retail banking office network. Use of Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans and fair value of assets acquired and liabilities assumed in a business combination, including goodwill impairment. Reclassifications In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to statement presentations selected for 2024. Such reclassifications have not materially affected previously reported stockholders’ equity or net income. Concentrations of Credit Risk Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At June 30, 2024, approximately 83% of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. Management continues to monitor these concentrations and has considered these concentrations in its allowance for credit loss analysis. The success of the Company is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. Adverse changes in the economic conditions in these geographic markets would likely have a material adverse effect on the Company’s results of operations and financial condition. The operating results of the Company depend primarily on its net interest income. Accordingly, operations are subject to risks and uncertainties surrounding the exposure to changes in the interest rate environment. At times, the Company may have cash and cash equivalents at financial institutions in excess of federal deposit insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions whose credit ratings are monitored by management to minimize credit risk. Allowance for Credit Losses ("ACL") – Loans The current expected credit loss (“CECL”) approach requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). It replaced the incurred loss approach’s threshold that delayed the recognition of a credit loss until it was probable a loss event was incurred. The estimate of expected credit losses is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the historical period used. The Company also considers future economic conditions and portfolio performance as part of a reasonable and supportable forecast period. The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed. Accrued interest receivable is excluded from the estimate of credit losses. Management determines the ACL balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit behaviors along with model judgments provide the basis for the estimation of expected credit losses. Adjustments to modeled loss estimates may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in economic conditions, property values, or other relevant factors. For the majority of loans and leases the ACL is calculated using a discounted cash flow methodology applied at a loan level with a one-year reasonable and supportable forecast period and a two-year straight-line reversion period. The ACL-loans are measured on a collective basis when similar risk characteristics exist. The Company has identified the following portfolio segments and calculates the ACL for each using a discounted cash flow methodology at the loan level, with loss rates, prepayment assumptions and curtailment assumptions driven by each loan’s collateral type: • Construction, land & land development - Risks common to construction, land & development loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements and declines in real estate values. • Other commercial real estate - Loans in this category are susceptible to business failures and declines in general economic conditions, including declines in real estate value, declines in occupancy rates, and lack of suitable alternative use for the property. • Residential real estate - Residential real estate loans are susceptible to weakening general economic conditions, increases in unemployment rates and declining real estate values. • Commercial, financial & agricultural - Risks to this loan category include the inability to monitor the condition of the collateral, which often consists of inventory, accounts receivable and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt. • Consumer and other - Risks common to consumer direct loans include unemployment and changes in local economic conditions as well as the inability to monitor collateral consisting of personal property. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Allowance for Credit Losses – Off-Balance Sheet Credit Exposures Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Management estimates expected credit losses on commitments to extend credit over the contractual period during which the Company is exposed to credit risk on the underlying commitments. The ACL on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The ACL is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to fund. Allowance for Credit Losses – Held-to-Maturity ("HTM") Securities Management measures current expected credit losses on HTM debt securities on a collective basis by major security type. The estimate of current expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the HTM portfolio into the following major security types: U.S. treasury securities, U.S. agency securities, State, county & municipal securities, and Mortgage-backed securities. Accrued interest receivable on HTM debt is excluded from the estimate of credit losses. All of the residential and commercial mortgage-backed securities held by the Company as HTM are issued by U.S. government agencies and government sponsored entities. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The state and political subdivision securities are also highly rated by major rating agencies. Allowance for Credit Losses – Available-for-Sale ("AFS") Securities For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or whether it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an ACL is recognized in other comprehensive income. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Derivatives The Company records cash flow hedges at the inception of a derivative contract based on management’s intentions and belief as to the likely effectiveness of the hedge. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is recorded in other comprehensive income ("OCI") and is reclassified into earnings in the same period during which the hedged transaction affects earnings. The changes in the fair value of a derivative that is not highly effective in hedging the expected cash flows of the hedged item are recognized immediately as interest expense in the consolidated statements of income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income or noninterest expense. Cash flows from hedges are classified in the consolidated statements of cash flows in the same manner as the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged item. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in cash flows of the hedged item, the derivative is settled or terminated, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as interest expense. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in OCI are amortized into earnings over the same periods which the hedged transactions will affect earnings. Changes in Accounting Principles In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, Reference Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The updated guidance was originally effective for all entities from March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU 2022-06 which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company has adopted this ASU with no material impact to its financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures ("ASU 2023-07"). This ASU was issued to improve segment reporting disclosures. The amendments in this ASU improve financial reporting by requiring disclosure of incremental segment information including significant segment expenses regularly provided to the chief operating decision maker as well as the amount and composition of other segment items on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Retrospective application is required in all prior periods unless impracticable to do so. The amendments in this standard will be effective for the Company for the fiscal year ended December 31, 2024 and subsequent interim periods. The Company is currently evaluating the impact of the incremental segment information that will be required to be disclosed as well as the impact to the Segment Reporting footnote. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and estimated fair value of securities available-for-sale and held-to-maturity along with gross unrealized gains and losses are summarized as follows: (dollars in thousands) June 30, 2024 Amortized Gross Gross Fair Value Securities Available-for-Sale: U.S. treasury securities $ 7,068 $ — $ (10) $ 7,058 U.S. agency securities 4,238 — (390) 3,848 Asset backed securities 22,182 2 (274) 21,910 State, county & municipal securities 113,089 — (15,924) 97,165 Corporate debt securities 53,337 — (6,613) 46,724 Mortgage-backed securities 224,771 173 (25,069) 199,875 Total $ 424,685 $ 175 $ (48,280) $ 376,580 June 30, 2024 Amortized Gross Gross Fair Value Securities Held-to-Maturity: U.S. treasury securities $ 94,150 $ — $ (3,986) $ 90,164 U.S. agency securities 16,218 — (1,498) 14,720 State, county & municipal securities 136,942 17 (15,586) 121,373 Mortgage-backed securities 195,635 — (28,533) 167,102 Total $ 442,945 $ 17 $ (49,603) $ 393,359 December 31, 2023 Amortized Gross Gross Fair Value Securities Available-for-Sale: U.S. treasury securities $ 500 $ — $ (2) $ 498 U.S. agency securities 4,500 — (361) 4,139 Asset backed securities 25,035 — (405) 24,630 State, county & municipal securities 124,524 6 (15,494) 109,036 Corporate debt securities 53,834 16 (6,460) 47,390 Mortgage-backed securities 246,901 36 (25,248) 221,689 Total $ 455,294 $ 58 $ (47,970) $ 407,382 December 31, 2023 Amortized Gross Gross Fair Value Securities Held-to-Maturity: U.S. treasury securities $ 93,306 $ — $ (3,212) $ 90,094 U.S. agency securities 16,282 — (1,424) 14,858 State, county & municipal securities 136,685 356 (13,859) 123,182 Mortgage-backed securities 202,758 — (25,316) 177,442 Total $ 449,031 $ 356 $ (43,811) $ 405,576 The Company elected to exclude accrued interest receivable from the amortized cost basis of available-for-sale and held-to-maturity securities disclosed throughout this note. As of June 30, 2024 and December 31, 2023, accrued interest receivable for available-for-sale and held-to-maturity securities totaled $2.2 million and $2.4 million, and $1.9 million and $1.9 million, respectively, and is included in the " Other assets The amortized cost and fair value of investment securities as of June 30, 2024, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below. Available-for-Sale Held-to-Maturity (dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 9,283 $ 9,231 $ 19,839 $ 19,580 Due after one year through five years 16,080 14,713 88,816 84,362 Due after five years through ten years 101,749 87,331 67,878 59,370 Due after ten years 72,802 65,430 70,777 62,945 $ 199,914 $ 176,705 $ 247,310 $ 226,257 Mortgage-backed securities 224,771 199,875 195,635 167,102 $ 424,685 $ 376,580 $ 442,945 $ 393,359 Proceeds from the sale of investment securities totaled $9.2 million and $17.8 million for the three and six month periods ended June 30, 2024, respectively, and resulted in gross realized losses of $425,000 and $980,000 for each respective period. The purpose of these sales in 2024 was to restructure underperforming assets and reinvest at higher yields. The sales do not impact our ability to hold the remaining available-for-sale securities, and we are not in a position to be required to sell any remaining securities at this time. The Company had no sales of investment securities for the three and six month periods ended June 30, 2023. Investment securities having a carrying value of approximately $364.4 million and $429.9 million were pledged to secure public deposits and for other purposes as of June 30, 2024 and December 31, 2023, respectively. Information pertaining to available-for-sale securities with gross unrealized losses at June 30, 2024 and December 31, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows: Less Than 12 Months 12 Months or Greater Total (dollars in thousands) Fair Gross Fair Gross Fair Gross June 30, 2024 U.S. treasury securities $ 7,058 $ (10) $ — $ — $ 7,058 $ (10) U.S. agency securities — — 3,848 (390) 3,848 (390) Asset backed securities 10,079 (62) 10,753 (212) 20,832 (274) State, county & municipal securities 1,802 (155) 95,148 (15,769) 96,950 (15,924) Corporate debt securities 2,844 (556) 43,880 (6,057) 46,724 (6,613) Mortgage-backed securities 2,331 (7) 183,863 (25,062) 186,194 (25,069) $ 24,114 $ (790) $ 337,492 $ (47,490) $ 361,606 $ (48,280) December 31, 2023 U.S. treasury securities $ — $ — $ 498 $ (2) $ 498 $ (2) U.S. agency securities — — 4,139 (361) 4,139 (361) Asset backed securities 6,196 (75) 17,424 (330) 23,620 (405) State, county & municipal securities 1,033 (138) 107,443 (15,356) 108,476 (15,494) Corporate debt securities 1,446 (105) 45,044 (6,355) 46,490 (6,460) Mortgage-backed securities 5,921 (49) 212,876 (25,199) 218,797 (25,248) $ 14,596 $ (367) $ 387,424 $ (47,603) $ 402,020 $ (47,970) Information pertaining to held-to-maturity securities with gross unrealized losses at June 30, 2024 and December 31, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows: Less Than 12 Months 12 Months or Greater Total (dollars in thousands) Fair Gross Fair Gross Fair Gross June 30, 2024 U.S. treasury securities $ — $ — $ 90,164 $ (3,986) $ 90,164 $ (3,986) U.S. agency securities — — 14,720 (1,498) 14,720 (1,498) State, county & municipal securities 11,588 (213) 103,719 (15,373) 115,307 (15,586) Mortgage-backed securities — — 167,102 (28,533) 167,102 (28,533) $ 11,588 $ (213) $ 375,705 $ (49,390) $ 387,293 $ (49,603) December 31, 2023 U.S. treasury securities $ — $ — $ 90,094 $ (3,212) $ 90,094 $ (3,212) U.S. agency securities — — 14,858 (1,424) 14,858 (1,424) State, county & municipal securities 1,461 (78) 103,500 (13,781) 104,961 (13,859) Mortgage-backed securities — — 177,442 (25,316) 177,442 (25,316) $ 1,461 $ (78) $ 385,894 $ (43,733) $ 387,355 $ (43,811) Management evaluates available-for-sale securities in an unrealized loss position at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation to determine if credit-related impairment exists. Management first evaluates whether they intend to sell or more likely than not will be required to sell an impaired security before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. If either of the above criteria is not met, management evaluates whether the decline in fair value is attributable to credit or resulted from other factors. The Company does not intend to sell these investment securities in an unrealized loss position as of June 30, 2024, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Based on management's review, the Company's available-for-sale securities have no expected credit losses and no related allowance for credit losses has been established. The Company uses a systematic methodology to determine its ACL for debt securities held-to-maturity considering the effects of past events, current conditions, and reasonable and supportable forecasts on the collectibility of the portfolio. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held-to-maturity portfolio. The Company monitors the held-to-maturity portfolio on a quarterly basis to determine whether a valuation account would need to be recorded. Based on management's review, the Company's held-to-maturity securities have no expected credit losses and no related allowance for credit losses has been established. At June 30, 2024, there were 261 available-for-sale securities and 155 held-to-maturity securities that had unrealized losses. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are due to reasons of credit quality. The Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326), as amended on January 1, 2023 which included evaluation of expected credit losses on debt securities. As part of the Company's calculated credit losses, the allowance for credit losses on investment securities was determined to be de minimis due to the high credit quality of the portfolio, which includes securities issued or guaranteed by the U.S. treasury and U.S. government agencies and high quality municipalities. Therefore, no allowance for credit losses was recorded as of June 30, 2024. See Note 1 for additional details on the allowance for credit losses as it relates to the securities portfolio. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Loans | Loans The following table presents the composition of loans segregated by class of loans, as of June 30, 2024 and December 31, 2023. (dollars in thousands) June 30, 2024 December 31, 2023 Construction, land & land development $ 199,916 $ 247,146 Other commercial real estate 985,102 974,375 Total commercial real estate 1,185,018 1,221,521 Residential real estate 360,847 356,234 Commercial, financial & agricultural 242,205 242,756 Consumer and other 77,504 62,959 Total Loans $ 1,865,574 $ 1,883,470 Included in the above table are government guaranteed loans totaling $96.3 million at June 30, 2024 and $86.8 million at December 31, 2023. The following table presents the composition of government guaranteed loans segregated by class of loans for each respective period. (dollars in thousands) June 30, 2024 December 31, 2023 Construction, land & land development $ 4,190 $ 7,027 Other commercial real estate 52,444 40,852 Total commercial real estate 56,634 47,879 Residential real estate 9,377 12,170 Commercial, financial & agricultural 30,254 26,716 Consumer and other — — Total Loans $ 96,265 $ 86,765 The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this note. As of June 30, 2024 and December 31, 2023, accrued interest receivable for loans totaled $8.8 million and $8.8 million, respectively, and is included in the "Other assets" line item on the Company’s consolidated balance sheet. Commercial, financial & agricultural loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer and other loans are originated at the Bank level. Credit Quality Indicators. As part of the ongoing monitoring of the credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (1) the risk grade assigned to commercial and consumer loans, (2) the level of classified commercial loans, (3) net charge-offs, (4) nonperforming loans, and (5) the general economic conditions in the Company’s geographic markets. The Company uses a risk grading matrix to assign a risk grade to each of its loans. For commercial loans over $500,000, loans are graded on a scale of 1 to 10. A description of the general characteristics of the grades is as follows: • Grades 1, 2 and 3 - Loans with these assigned risk grades range from virtual absence of risk to minimal risk. Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds. Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans. Loans in this category fall into the “pass” classification. • Grades 4 and 5 - Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk. The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average. These loans are also included in into the “pass” classification. • Grade 6 - This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term. • Grades 7 and 8 - These grades include “substandard” loans in accordance with regulatory guidelines. This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned grade 8, and these loans often have assigned loss allocations as part of the allowance for credit losses. Generally, loans on which interest accrual has been stopped would be included in this grade range. • Grades 9 and 10 - These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively. In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades. Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 7 or 8. For smaller commercial loans (under $500,000) and consumer loans, the Company began using behavioral based risk grades during the second quarter of 2024. These loans are assigned risk grades of 98 or 99 based on payment performance with the Company. ◦ Grade 98 - Loans assigned this risk grade indicates a "pass" credit. ◦ Grade 99 - Loans assigned this risk grade indicates a "substandard" credit and is moved to a nonaccrual status. The following tables present the loan portfolio segregated by class of loans and the risk category of term loans by vintage year, which is the year of origination or most recent renewal, as of June 30, 2024 and December 31, 2023. Those loans with a risk grade of 1, 2, 3, 4, 5 and 98 have been combined in the pass line for presentation purposes. Loans with a risk grade of 7, 8 and 99 have been combined in the substandard line. There were no loans with a risk rating of "doubtful" or "loss" at June 30, 2024 or December 31, 2023. Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolvers Revolvers converted to term loans Total June 30, 2024 Construction, land & land development Risk rating Pass $ 44,124 $ 70,360 $ 51,070 $ 24,673 $ 2,727 $ 6,273 $ 63 $ — $ 199,290 Special Mention — 291 — — — — 281 — 572 Substandard — — — — — 54 — — 54 Total Construction, land & land development 44,124 70,651 51,070 24,673 2,727 6,327 344 — 199,916 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial real estate Risk rating Pass 13,935 83,226 348,545 192,294 81,713 208,832 22,835 2,177 953,557 Special Mention 812 1,400 4,654 457 1,470 7,612 610 539 17,554 Substandard — 1,590 10,118 396 355 725 807 — 13,991 Total Other commercial real estate 14,747 86,216 363,317 193,147 83,538 217,169 24,252 2,716 985,102 Current period gross write offs — — — — — 20 — — 20 Residential real estate Risk rating Pass 8,407 83,088 118,146 50,323 20,485 49,756 23,929 1,283 355,417 Special Mention — 1,238 — — — 2,024 — — 3,262 Substandard — — 552 357 69 1,190 — — 2,168 Total Residential real estate 8,407 84,326 118,698 50,680 20,554 52,970 23,929 1,283 360,847 Current period gross write offs — — 340 — — — — — 340 Commercial, financial & agricultural Risk rating Pass 31,715 52,528 41,998 16,573 10,535 16,555 64,512 608 235,024 Special Mention — 598 — 95 173 — 241 — 1,107 Substandard 71 712 2,076 1,804 361 272 771 7 6,074 Total Commercial, financial & agricultural 31,786 53,838 44,074 18,472 11,069 16,827 65,524 615 242,205 Current period gross write offs 23 350 432 179 20 10 — — 1,014 Consumer and other Risk rating Pass 36,250 34,034 3,065 1,397 832 1,422 425 11 77,436 Special Mention — — — — — — — — — Substandard — 60 — 1 3 4 — — 68 Total Consumer and other 36,250 34,094 3,065 1,398 835 1,426 425 11 77,504 Current period gross write offs — 186 23 — — 42 — — 251 Total Loans Risk rating Pass 134,431 323,236 562,824 285,260 116,292 282,838 111,764 4,079 1,820,724 Special Mention 812 3,527 4,654 552 1,643 9,636 1,132 539 22,495 Substandard 71 2,362 12,746 2,558 788 2,245 1,578 7 22,355 Total Loans $ 135,314 $ 329,125 $ 580,224 $ 288,370 $ 118,723 $ 294,719 $ 114,474 $ 4,625 $ 1,865,574 Total current period gross write offs $ 23 $ 536 $ 795 $ 179 $ 20 $ 72 $ — $ — $ 1,625 Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolvers Revolvers converted to term loans Total December 31, 2023 Construction, land & land development Risk rating Pass $ 112,587 $ 91,981 $ 27,332 $ 5,654 $ 1,000 $ 5,765 $ 605 $ 31 $ 244,955 Special Mention 792 — 25 — — 29 282 — 1,128 Substandard — 888 4 — 20 151 — — 1,063 Total Construction, land & land development 113,379 92,869 27,361 5,654 1,020 5,945 887 31 247,146 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial real estate Risk rating Pass 61,816 341,656 204,145 88,629 79,123 145,374 24,158 2,031 946,932 Special Mention 75 3,251 766 2,113 5,733 4,694 545 48 17,225 Substandard 2,303 2,615 211 — 486 4,395 208 — 10,218 Total Other commercial real estate 64,194 347,522 205,122 90,742 85,342 154,463 24,911 2,079 974,375 Current period gross write offs — — 69 — — — — — 69 Residential real estate Risk rating Pass 78,088 116,704 50,986 21,892 8,510 43,038 22,642 100 341,960 Special Mention 856 466 10 50 679 4,687 424 — 7,172 Substandard — 1,169 384 296 272 4,735 246 — 7,102 Total Residential real estate 78,944 118,339 51,380 22,238 9,461 52,460 23,312 100 356,234 Current period gross write offs 253 492 26 — — — — — 771 Commercial, financial & agricultural Risk rating Pass 66,820 51,439 21,673 12,489 4,734 14,002 58,607 306 230,070 Special Mention 4,186 894 376 745 188 40 974 — 7,403 Substandard 164 1,872 1,979 190 25 165 866 22 5,283 Total Commercial, financial & agricultural 71,170 54,205 24,028 13,424 4,947 14,207 60,447 328 242,756 Current period gross write offs 150 168 408 200 9 134 — — 1,069 Consumer and other Risk rating Pass 53,117 4,021 2,004 1,240 925 908 462 1 62,678 Special Mention 79 42 38 12 25 1 — — 197 Substandard 43 20 3 5 4 9 — — 84 Total Consumer and other 53,239 4,083 2,045 1,257 954 918 462 1 62,959 Current period gross write offs 9 12 10 2 — 2 — — 35 Total Loans Risk rating Pass 372,428 605,801 306,140 129,904 94,292 209,087 106,474 2,469 1,826,595 Special Mention 5,988 4,653 1,215 2,920 6,625 9,451 2,225 48 33,125 Substandard 2,510 6,564 2,581 491 807 9,455 1,320 22 23,750 Total Loans $ 380,926 $ 617,018 $ 309,936 $ 133,315 $ 101,724 $ 227,993 $ 110,019 $ 2,539 $ 1,883,470 Total current period gross write offs $ 412 $ 672 $ 513 $ 202 $ 9 $ 136 $ — $ — $ 1,944 A loan’s risk grade is assigned at loan origination and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to review at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of 7, 8, 9, 10 or 99 and an outstanding balance of $500,000 or more are reassessed on a quarterly basis. During this reassessment process individual reserves may be identified and placed against certain loans which are not considered impaired. In assessing the overall economic condition of the markets in which it operates, the Company monitors the unemployment rates for its major service areas. The unemployment rates are reviewed on a quarterly basis as part of the allowance for credit loss determination. Loans are placed on nonaccrual status if principal or interest payments become 90 days past due or when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory guidelines. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. Collateral-Dependent Loans We classify a loan as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of collateral. Our commercial loans have collateral that is comprised of real estate and business assets. Our consumer loans have collateral that is substantially comprised of residential real estate. The Company had $1.4 million in collateral-dependent loans at June 30, 2024 and December 31, 2023. There were no significant changes in the extent to which collateral secures our collateral-dependent loans during the three and six month periods ended June 30, 2024. The following table presents the aging of the amortized cost basis of loans by aging category and accrual status as of June 30, 2024 and December 31, 2023: (dollars in thousands) 30-89 Days 90 Days Total Accruing Nonaccrual Current Loans Total Loans June 30, 2024 Construction, land & land development $ 4 $ — $ 4 $ 54 $ 199,858 $ 199,916 Other commercial real estate 1,071 — 1,071 1,894 982,137 985,102 Total commercial real estate 1,075 — 1,075 1,948 1,181,995 1,185,018 Residential real estate 4,999 — 4,999 2,131 353,717 360,847 Commercial, financial & agricultural 488 — 488 2,520 239,197 242,205 Consumer and other 251 41 292 70 77,142 77,504 Total Loans $ 6,813 $ 41 $ 6,854 $ 6,669 $ 1,852,051 $ 1,865,574 December 31, 2023 Construction, land & land development $ 812 $ — $ 812 $ 85 $ 246,249 $ 247,146 Other commercial real estate 1,796 — 1,796 4,219 968,360 974,375 Total commercial real estate 2,608 — 2,608 4,304 1,214,609 1,221,521 Residential real estate 2,503 350 2,853 3,561 349,820 356,234 Commercial, financial & agricultural 775 — 775 1,956 240,025 242,756 Consumer and other 183 20 203 18 62,738 62,959 Total Loans $ 6,069 $ 370 $ 6,439 $ 9,839 $ 1,867,192 $ 1,883,470 The following tables display a summary of the Company's nonaccrual loans by major categories for the periods indicated. June 30, 2024 (dollars in thousands) Nonaccrual Loans with No Related ACL Nonaccrual Loans with a Related ACL Total Nonaccrual Loans Construction, land & land development $ — $ 54 $ 54 Other commercial real estate — 1,894 1,894 Total commercial real estate — 1,948 1,948 Residential real estate — 2,131 2,131 Commercial, financial & agricultural — 2,520 2,520 Consumer and other — 70 70 Total Loans $ — $ 6,669 $ 6,669 December 31, 2023 (dollars in thousands) Nonaccrual Loans with No Related ACL Nonaccrual Loans with a Related ACL Total Nonaccrual Loans Construction, land & land development $ 27 $ 58 $ 85 Other commercial real estate 2,806 1,413 4,219 Total commercial real estate 2,833 1,471 4,304 Residential real estate 725 2,836 3,561 Commercial, financial & agricultural — 1,956 1,956 Consumer and other — 18 18 Total Loans $ 3,558 $ 6,281 $ 9,839 Interest income recorded on nonaccrual loans during the three months ended June 30, 2024 and 2023 was $135,000 and $206,000, respectively. Interest income recorded on nonaccrual loans during the six months ended June 30, 2024 and 2023 was $217,000 and $360,000, respectively. The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a discounted cash flow model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. Upon the Company's determination that a modified loan, or portion of a loan, has subsequently been deemed uncollectible, the loan, or portion of the loan, is written off. The following tables present loans modified due to a financial difficulty under the above terms during the three and six month periods ended June 30, 2024. Three months ended June 30, 2024 (dollars in thousands) Term Extension Payment Delay Term Extension and Payment Delay Total* Commercial, financial & agricultural — 377 — 377 Total Loans $ — $ 377 $ — $ 377 *less than .05% of total class of receivable There was one loan in the above category for the three months ended June 30, 2024. The commercial, financial & agricultural loan had been given a payment delay. Six months ended June 30, 2024 (dollars in thousands) Term Extension Payment Delay Term Extension and Payment Delay Total* Commercial real estate $ 131 $ — $ 145 $ 276 Commercial, financial & agricultural — 377 40 417 Total Loans $ 131 $ 377 $ 185 $ 693 *less than .05% of total class of receivable There were a total of four loans in the above categories for the six months ended June 30, 2024. The commercial real estate loans consist of two loans, each with a term extension of one year with one loan also given a payment delay. There were two commercial, financial & agricultural loans, each of which had been given a payment delay and one with a term extension of five years. The Company had no loans that subsequently defaulted during the three and six month periods ended June 30, 2024 and for the year ended December 31, 2023. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The ACL for loans represents management's estimate of life of loan credit losses in the portfolio as of the end of the period. The ACL related to unfunded commitments is included in other liabilities in the consolidated balance sheet. The following tables present the balance sheet activity in the ACL by portfolio segment for loans for the three and six month periods ended June 30, 2024 and June 30, 2023. (dollars in thousands) Balance, March 31, 2024 Charge-Offs Recoveries Provision for credit losses on loans Balance, June 30, 2024 Three Months Ended June 30, 2024 Construction, land & land development $ 2,046 $ — $ 1 $ (752) $ 1,295 Other commercial real estate 7,389 — 9 (2) 7,396 Total commercial real estate 9,435 — 10 (754) 8,691 Residential real estate 5,327 (270) 39 894 5,990 Commercial, financial & agricultural 2,020 (356) 37 314 2,015 Consumer and other 1,875 (131) 4 362 2,110 Total allowance for credit losses on loans $ 18,657 $ (757) $ 90 $ 816 $ 18,806 (dollars in thousands) Balance, December 31, 2023 Charge-Offs Recoveries Provision for credit losses on loans Balance, June 30, 2024 Six Months Ended June 30, 2024 Construction, land & land development $ 2,204 $ — $ 2 $ (911) 1,295 Other commercial real estate 7,064 (20) 18 334 7,396 Total commercial real estate 9,268 (20) 20 (577) 8,691 Residential real estate 5,105 (340) 207 1,018 5,990 Commercial, financial & agricultural 2,110 (1,014) 59 860 2,015 Consumer and other 1,888 (251) 8 465 2,110 Total allowance for credit losses on loans $ 18,371 $ (1,625) $ 294 $ 1,766 $ 18,806 (dollars in thousands) Balance, March 31, 2023 Charge-Offs Recoveries Provision for credit losses on loans Balance, June 30, 2023 Three Months Ended June 30, 2023 Construction, land & land development $ 2,342 $ — $ 5 $ (66) $ 2,281 Other commercial real estate 8,122 — 11 600 8,733 Total commercial real estate 10,464 — 16 534 11,014 Residential real estate 4,112 — 26 (1,496) 2,642 Commercial, financial & agricultural 1,657 (170) 160 1,337 2,984 Consumer and other 366 — 5 55 426 Total allowance for loan losses $ 16,599 $ (170) $ 207 $ 430 $ 17,066 (dollars in thousands) Balance December 31, 2021 Charge-Offs Recoveries Provision Balance, September 30, 2022 Six Months Ended June 30, 2023 Balance December 31, 2022 Adoption of ASU 2016-13 Charge-Offs Recoveries Provision for credit losses on loans Balance, June 30, 2023 Construction, land & land development $ 1,959 $ 148 $ — $ 8 $ 166 $ 2,281 Other commercial real estate 8,886 (630) — 25 452 8,733 Total commercial real estate 10,845 (482) — 33 618 11,014 Residential real estate 2,354 1,053 — 37 (802) 2,642 Commercial, financial & agricultural 2,709 (690) (443) 167 1,241 2,984 Consumer and other 220 66 (3) 9 134 426 Total allowance for loan losses $ 16,128 $ (53) $ (446) $ 246 $ 1,191 $ 17,066 Colony used a one-year reasonable and supportable forecast period. The changes in loss rates used as the basis for the estimate of credit losses during this period were modeled using historical data from peer banks and macroeconomic forecast data obtained from a third party vendor, which were then applied to Colony's recent default experience as a starting point. As of June 30, 2024, the Company expects that the markets in which it operates will experience stable economic and unemployment conditions with the trend of delinquencies returning to more normalized levels, over the next two years. Management adjusted the historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio. The Company determines its individual reserves during its quarterly review of substandard loans. This process involves reviewing all loans with a risk grade of 7, 8, 9, 10 or 99 and an outstanding balance of $500,000 or more, regardless of the loans impairment classification. The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancellable. The allowance for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans. The allowance for credit losses for unfunded commitments is separately classified on the balance sheet within other liabilities. The following table presents the balance and activity in the allowance for credit losses for unfunded commitments for the three and six month periods ended June 30, 2024 and June 30, 2023. Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Beginning balance $ 1,425 $ 1,800 $ 1,375 $ — Adjustment to allowance for unfunded commitments for adoption of ASU 2016-13 — — — 1,661 Change in unfunded commitments (166) (230) (116) (91) Ending balance $ 1,259 $ 1,570 $ 1,259 $ 1,570 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives As part of its asset liability management activities, the Company may enter into interest rate swaps to help manage its interest rate risk position and mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company entered into two interest rate swaps during the second quarter of 2023, to hedge the variability of cash flows due to changes in the benchmark Secured Overnight Financing Rate ("SOFR") interest rate risk for its short-term funding over the term of these cash flow hedges. The notional amount of an interest rate swap does not represent the amount exchanged by the parties. The exchange of cash flows is determined by reference to the notional amount and the other terms of the interest rate swap agreements. On June 23, 2023, the Company entered into a five-year interest rate swap with a notional amount totaling $25.0 million. On June 26, 2023 the Company entered into a three-year interest rate swap with a notional amount totaling $25.0 million. Both of the swaps were designated as cash flow hedges of certain variable rate liabilities. The derivatives are recorded in "Other assets" on the Company's balance sheet and have a value of $531,000 as of June 30, 2024. Gains were recorded on the swap transactions, which totaled $177,000 and $351,000 for the three and six months ended June 30, 2024, respectively, and $9,000 for both the three and six months ended June 30, 2023, as a component of interest expense in the consolidated statements of income. Amounts reported in accumulated OCI related to swaps are reclassified to interest expense as interest payments are made on the Bank's variable rate liabilities. The following table presents the amounts recorded in the consolidated statements of income and the consolidated statements of comprehensive income relating to the interest rate swaps for the three and six months ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Amount of gain recognized in OCI, net of tax $ 126 $ 199 $ 722 $ 199 Amount of gain reclassified from OCI to interest expense, net of tax 140 7 $ 277 7 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The following table presents information regarding the Company’s outstanding borrowings at June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, 2024 December 31, 2023 Federal Home Loan Bank advances 205,000 175,000 Other borrowings 62,992 63,445 $ 267,992 $ 238,445 Advances from the Federal Home Loan Bank (“FHLB”) have maturities ranging from 2024 to 2029 and interest rates ranging from 3.69% to 5.57%. As collateral on the outstanding FHLB advances, the Company has provided a blanket lien on its portfolio of qualifying residential first mortgage loans, commercial real estate loans, farmland loans, multifamily loans and HELOC loans. At June 30, 2024, the lendable collateral value of those loans pledged is $213.7 million. At June 30, 2024, the Company had remaining credit availability from the FHLB of $546.3 million. The Company may be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line. The Company's debentures issued in connection with trust preferred securities are recorded as other borrowings on the consolidated balance sheets, but, subject to certain limitations, qualify as Tier 1 capital for regulatory capital purposes. At June 30, 2024 and December 31, 2023, $24.2 million of debentures underlying trust preferred securities were outstanding. The proceeds from the offerings were used to fund certain acquisitions, pay off holding company debt and inject capital into the bank subsidiary. The debentures underlying the trust preferred securities require quarterly interest payments. The Company also has fixed-to-floating rate subordinated notes which are due 2032 (the "Notes"). The Notes will bear a fixed rate of 5.25% for the first five years and will reset quarterly thereafter to then current three-month SOFR, as published by the Federal Reserve Bank of New York, plus 265 basis points for the five-year floating term. The Company is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after May 20, 2027, or at any time, in whole but not in part, upon certain other specified events. At June 30, 2024 and December 31, 2023, $38.8 million and $39.2 million, respectively, of the Notes, net of debt issuance costs were outstanding. The Notes are recorded as other borrowings on the consolidated balance sheets and, subject to certain limitations, qualify as Tier 2 capital for regulatory capital purposes. The aggregate stated maturities of other borrowed money at June 30, 2024 are as follows: (dollars in thousands) Year Amount 2024 $ 70,000 2025 — 2026 25,000 2027 15,000 2028 65,000 2029 and After 92,992 $ 267,992 The Company also has available federal funds lines of credit with various financial institutions totaling $64.5 million, with no outstanding balance at June 30, 2024. The Company has the ability to borrow funds from the Federal Reserve Bank (“FRB”) of Atlanta utilizing the discount window. The discount window is an instrument of monetary policy that allows eligible institutions to borrow money from the FRB on a short-term basis to meet temporary liquidity shortages caused by internal or external disruptions. At June 30, 2024, the Company had $107.8 million borrowing capacity available under this arrangement, with no outstanding balances. The Company would be required to pledge certain available-for-sale investment securities as collateral under this agreement. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflects the potential dilution of restricted stock. The following table presents earnings per share for the three and six months ended June 30, 2024 and 2023. (dollars in thousands, except per share data) Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator Net income available to common stockholders $ 5,474 $ 5,302 $ 10,807 $ 10,345 Denominator Weighted average number of common shares Outstanding for basic earnings per common share 17,551,007 17,580,557 17,555,609 17,588,081 Weighted-average number of shares outstanding for diluted earnings per common share 17,551,007 17,580,557 17,555,609 17,588,081 Earnings per share - basic $ 0.31 $ 0.30 $ 0.62 $ 0.59 Earnings per share - diluted $ 0.31 $ 0.30 $ 0.62 $ 0.59 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Credit-Related Financial Instruments. The Company is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant, and equipment. At June 30, 2024 and December 31, 2023 the following financial instruments were outstanding whose contract amounts represent credit risk: Contract Amount (dollars in thousands) June 30, 2024 December 31, 2023 Loan commitments $ 338,106 $ 362,878 Letters of credit 5,318 5,656 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. Standby and performance letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Legal Contingencies . In the ordinary course of business, there are various legal proceedings pending against the Company and the Bank. As of June 30, 2024, the aggregate liabilities, if any, arising from such proceedings would not, in the opinion of management, have a material adverse effect on the Company’s consolidated financial position. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Fair Value Measurements | Fair Value of Financial Instruments and Fair Value Measurements Generally accepted accounting standards in the U.S. require disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company and the Bank’s financial instruments are detailed hereafter. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Generally accepted accounting principles related to Fair Value Measurements define fair value, establish a framework for measuring fair value, establish a three-level valuation hierarchy for disclosure of fair value measurement and enhance disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 inputs to the valuation methodology are unobservable and represent the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance. Cash and short-term investments – For cash, due from banks, bank-owned deposits and federal funds sold, the carrying amount is a reasonable estimate of fair value and is classified as Level 1. Investment securities – Fair values for investment securities are based on quoted market prices where available and classified as Level 1. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments and classified as Level 2. If a comparable is not available, the investment securities are classified as Level 3. Other investments – The fair value of other bank stock approximates carrying value and is classified as Level 2. Fair values for investment funds are based on quoted market prices where available and classified as Level 1. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments and classified as Level 2. If a comparable is not available, the investment securities are classified as Level 3. Loans held for sale – The fair value of loans held for sale is determined on outstanding commitments from third party investors in the secondary markets and is classified within Level 2 of the valuation hierarchy. Loans, net – The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. Most loans are classified as Level 3. Derivative instruments – The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The interest rate swaps are classified as Level 2. Deposits – The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date and is classified as Level 2. The fair value of deposits is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities and is classified as Level 2. Federal Home Loan Bank advances – The fair value of Federal Home Loan Bank advances is estimated by discounting the future cash flows using the current rates at which similar advances would be obtained. Federal Home Loan Bank advances are classified as Level 2. Other borrowings – The fair value of other borrowings is calculated by discounting contractual cash flows using an estimated interest rate based on current rates available to the Company for debt of similar remaining maturities and collateral terms. Other borrowings is classified as Level 2 due to their expected maturities. Disclosures of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis, are required in the financial statements. The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2024 and December 31, 2023 are as follows: Fair Value Measurements (dollars in thousands) Carrying Estimated Level Level Level June 30, 2024 Assets Cash and short-term investments $ 82,002 $ 82,002 $ 82,002 $ — $ — Investment securities available-for-sale 376,580 376,580 — 367,207 9,373 Investment securities held-to-maturity 442,945 393,359 — 393,359 — Other investments 18,491 18,491 — 18,491 — Loans held for sale 40,132 40,132 — 40,132 — Loans, net 1,846,768 1,701,073 — — 1,701,073 Derivative instruments 531 531 — 531 — Liabilities Deposits 2,460,225 2,454,409 — 2,454,409 — Federal Home Loan Bank advances 205,000 207,372 — 207,372 — Other borrowings 62,992 50,554 — 50,554 — Fair Value Measurements (dollars in thousands) Carrying Estimated Level Level Level December 31, 2023 Assets Cash and short-term investments $ 83,322 $ 83,322 $ 83,322 $ — $ — Investment securities available-for-sale 407,382 407,382 — 396,568 10,814 Investment securities held-to-maturity 449,031 405,576 — 405,576 — Other investments 16,868 16,868 — 16,868 — Loans held for sale 27,958 27,958 — 27,958 — Loans, net 1,865,099 1,699,870 — — 1,699,870 Liabilities Deposits 2,544,790 2,538,477 — 2,538,477 — Federal Home Loan Bank advances 175,000 176,022 — 176,022 — Other borrowings 63,445 51,056 — 51,056 — Derivative instruments 438 438 — 438 — Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring and nonrecurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy: Securities – Where quoted prices are available in an active market, securities are classified within level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Examples of such instruments, which would generally be classified within level 2 of the valuation hierarchy, include certain collateralized mortgage and debt obligations and certain high-yield debt securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within level 3 of the valuation hierarchy. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class. Collateral dependent loans – Loans which the Company has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Other Real Estate Owned – Other real estate owned assets are adjusted to fair value less estimated selling costs upon transfer of the loans to other real estate owned. Typically, an external, third-party appraisal is performed on the collateral upon transfer into the other real estate owned account to determine the asset’s fair value. Subsequent adjustments to the collateral’s value may be based upon either updated third-party appraisals or management’s knowledge of the collateral and the current real estate market conditions. Appraised amounts used in determining the asset’s fair value, whether internally or externally prepared, are discounted 10% to account for selling and marketing costs. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a level 3 classification of the inputs for determining fair value. Because of the high degree of judgment required in estimating the fair value of other real estate owned assets and because of the relationship between fair value and general economic conditions, we consider the fair value of other real estate owned assets to be highly sensitive to changes in market conditions. Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis – The following tables present the recorded amount of the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of June 30, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall. The tables below include collateral dependent impaired loans and other real estate properties at June 30, 2024 and December 31, 2023. Those collateral dependent impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances. Fair Value Measurements at Reporting Date Using (dollars in thousands) Total Fair Value (Level 1) (Level 2) (Level 3) June 30, 2024 Recurring Investment securities available-for-sale U.S. treasury securities $ 7,058 $ — $ 7,058 $ — U.S. agency securities 3,848 — 3,848 — Asset backed securities 21,910 — 21,910 — State, county & municipal securities 97,165 — 97,165 — Corporate debt securities 46,724 — 40,166 6,558 Mortgage-backed securities 199,875 — 197,060 2,815 Total investment securities available-for-sale 376,580 — 367,207 9,373 Loans held for sale 40,132 — 40,132 — Derivative instruments 531 — 531 — Total recurring assets $ 417,243 $ — $ 407,870 $ 9,373 Nonrecurring Collateral dependent loans $ 1,427 $ — $ — $ 1,427 Other real estate owned 582 — — 582 Total nonrecurring assets $ 2,009 $ — $ — $ 2,009 Fair Value Measurements at Reporting Date Using (dollars in thousands) Total Fair (Level 1) (Level 2) (Level 3) December 31, 2023 Recurring Investment securities available-for-sale U.S. treasury securities $ 498 $ — $ 498 $ — U.S. agency securities 4,139 — 4,139 — Asset backed securities 24,630 — 24,630 — State, county & municipal securities 109,036 — 109,036 — Corporate debt securities 47,390 — 40,465 6,925 Mortgage-backed securities 221,689 — 217,800 3,889 Total investment securities available-for-sale 407,382 — 396,568 10,814 Loans held for sale 27,958 — 27,958 — Total recurring assets $ 435,340 $ — $ 424,526 $ 10,814 Derivative instruments $ 438 $ — $ 438 $ — Total recurring liabilities $ 438 $ — $ 438 $ — Nonrecurring Collateral dependent loans $ 1,410 $ — $ — $ 1,410 Other real estate owned 448 — — 448 Total nonrecurring assets $ 1,858 $ — $ — $ 1,858 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at June 30, 2024 and December 31, 2023. This table is comprised of collateral dependent impaired loans and other real estate owned: (dollars in thousands) June 30, 2024 Valuation Unobservable Discount rate Collateral dependent loans $ 1,427 Appraised Value Discounts to reflect estimated costs to sell 10 % Other real estate owned 582 Appraised Value/Comparable Sales Discounts to reflect current market conditions and estimated costs to sell 10 % (dollars in thousands) December 31, 2023 Valuation Unobservable Discount rate Collateral dependent loans $ 1,410 Appraised Value Discounts to reflect estimated costs to sell 10 % Other real estate owned 448 Appraised Value/Comparable Sales Discounts to reflect current market conditions and estimated costs to sell 10 % The following table presents quantitative information about recurring level 3 fair value measurements as of June 30, 2024 and December 31, 2023. As of June 30, 2024 (dollars in thousands) Fair Value Valuation Unobservable Range Available-for-sale securities $ 9,373 Discounted Cash Flow Discount Rate or Yield N/A* As of December 31, 2023 (dollars in thousands) Fair Value Valuation Unobservable Range Available-for-sale securities $ 10,814 Discounted Cash Flow Discount Rate or Yield N/A* * The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company. The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the three and six months ended June 30, 2024. Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 (dollars in thousands) Available-for-sale securities Available-for-sale securities Balance, Beginning $ 7,145 $ 10,814 Additions 2,588 2,588 Redemptions/Payments (338) (3,251) Fair value adjustments (22) 1,647 Transfers between levels — (2,425) Balance, Ending $ 9,373 $ 9,373 The Company’s policy is to recognize transfers in and transfers out of levels 1, 2 and 3 as of the end of a reporting period. There were no transfers between levels for the three month periods ended June 30, 2024 and 2023 and $2.4 million and $380,000 in transfers between levels for the six month periods ended June 30, 2024 and 2023, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s operating segments include banking, mortgage banking and small business specialty lending division. The reportable segments are determined by the products and services offered, and internal reporting. The Bank segment derives its revenues from the delivery of full-service financial services, including retail and commercial banking services and deposit accounts. The Mortgage Banking segment derives its revenues from the origination and sales of residential mortgage loans held for sale. The Small Business Specialty Lending Division segment derives its revenue from the origination, sales and servicing of Small Business Administration loans and other government guaranteed loans. Segment performance is evaluated using net interest income and noninterest income. Income taxes are assessed based on income before income taxes, and indirect expenses (including management fees) are allocated based on various internal factors for each segment. Transactions among segments are made at fair value. Information reported internally for performance assessment follows. The following tables present information reported internally for performance assessment for the three and six months ended June 30, 2024 and 2023: (dollars in thousands) Bank Mortgage Small Totals Six Months Ended June 30, 2024 Net Interest Income $ 34,769 $ 90 $ 2,204 $ 37,063 Provision for Credit Losses 551 — 1,099 1,650 Noninterest Income 10,766 2,621 5,597 18,984 Noninterest Expenses 34,264 2,544 3,919 40,727 Income Taxes 2,226 43 594 2,863 Segment Profit $ 8,494 $ 124 $ 2,189 $ 10,807 Segments Assets at June 30, 2024 $ 2,889,013 $ 19,004 $ 99,890 $ 3,007,907 Full time employees at June 30, 2024 385 42 33 460 (dollars in thousands) Bank Mortgage Small Totals Six Months Ended June 30, 2023 Net Interest Income $ 38,700 $ 34 $ 1,015 $ 39,749 Provision for Credit Losses 960 — 140 1,100 Noninterest Income 10,351 3,292 2,968 16,611 Noninterest Expenses 35,462 3,683 3,452 42,597 Income Taxes 2,312 (72) 78 2,318 Segment Profit $ 10,317 $ (285) $ 313 $ 10,345 Segments Assets at December 31, 2023 $ 2,956,121 $ 7,890 $ 89,411 $ 3,053,422 Full time employees at June 30, 2023 383 51 32 466 (dollars in thousands) Bank Mortgage Small Totals Three Months Ended June 30, 2024 Net Interest Income $ 17,217 $ 50 $ 1,142 $ 18,409 Provision for Credit Losses 96 — 554 650 Noninterest Income 5,086 1,456 2,955 9,497 Noninterest Expenses 17,135 1,326 1,869 20,330 Income Taxes 1,060 42 350 1,452 Segment Profit $ 4,012 $ 138 $ 1,324 $ 5,474 (dollars in thousands) Bank Mortgage Small Totals Three Months Ended June 30, 2023 Net Interest Income $ 18,562 $ 31 $ 588 $ 19,181 Provision for Credit Losses 60 — 140 200 Noninterest Income 5,433 2,015 1,504 8,952 Noninterest Expenses 17,650 1,971 1,811 21,432 Income Taxes 1,157 14 28 1,199 Segment Profit $ 5,128 $ 61 $ 113 $ 5,302 |
Regulatory Capital Matters
Regulatory Capital Matters | 6 Months Ended |
Jun. 30, 2024 | |
Banking And Thrift Disclosure [Abstract] | |
Regulatory Capital Matters | Regulatory Capital Matters The amount of dividends payable to the parent company from the subsidiary bank is limited by various banking regulatory agencies. Upon approval by regulatory authorities, the Bank may pay cash dividends to the parent company in excess of regulatory limitations. As of June 30, 2024, the Company and the Bank were categorized as well-capitalized under the regulatory framework for prompt corrective action in effect at such time. To be categorized as well-capitalized, the Company and the Bank must have exceeded the well-capitalized guideline ratios in effect at the time, as set forth in the tables below, and have met certain other requirements. Management believes that the Company and the Bank exceeded all well-capitalized requirements at June 30, 2024, and there have been no conditions or events since quarter-end that would change the status of well-capitalized. The following tables summarize regulatory capital information as of June 30, 2024 and December 31, 2023 on a consolidated basis and for the subsidiary, as defined. Regulatory capital ratios for June 30, 2024 and December 31, 2023 were calculated in accordance with the Basel III rules. (dollars in thousands) Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio As of June 30, 2024 Total Capital to Risk-Weighted Assets Consolidated $ 342,134 16.17 % $ 169,269 8.00 % $ 211,586 10.00 % Colony Bank 312,286 14.80 168,803 8.00 211,004 10.00 Tier 1 Capital to Risk-Weighted Assets Consolidated 283,305 13.39 126,948 6.00 169,264 8.00 Colony Bank 292,220 13.85 126,594 6.00 168,791 8.00 Common Equity Tier 1 Capital to Risk-Weighted Assets Consolidated 259,076 12.25 95,171 4.50 137,469 6.50 Colony Bank 292,220 13.85 94,945 4.50 137,143 6.50 Tier 1 Capital to Average Assets Consolidated 283,305 9.44 120,044 4.00 150,056 5.00 Colony Bank 292,220 9.76 119,762 4.00 149,703 5.00 (dollars in thousands) Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total Capital to Risk-Weighted Assets Consolidated $ 337,159 15.47 % $ 174,355 8.00 % $ 217,944 10.00 % Colony Bank 300,497 13.85 173,572 8.00 216,965 10.00 Tier 1 Capital to Risk-Weighted Assets Consolidated 278,196 12.77 130,711 6.00 174,281 8.00 Colony Bank 280,751 12.94 130,178 6.00 173,571 8.00 Common Equity Tier 1 Capital to Risk-Weighted Assets Consolidated 253,967 11.66 98,015 4.50 141,577 6.50 Colony Bank 280,751 12.94 97,634 4.50 141,026 6.50 Tier 1 Capital to Average Assets Consolidated 278,196 9.17 121,350 4.00 151,688 5.00 Colony Bank 280,751 9.28 121,013 4.00 151,267 5.00 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend On July 24, 2024, the Board of Directors declared a quarterly cash dividend of $0.1125 per share, to be paid on its common stock on August 21, 2024, to shareholders of record as of the close of business on August 7, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 5,474 | $ 5,302 | $ 10,807 | $ 10,345 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Presentation | Presentation Colony Bankcorp, Inc. (the “Company”) is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the “Bank”). The “Company” or “our,” as used herein, includes Colony Bank, except where the context requires otherwise. All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") utilized in the commercial banking industry for interim financial information and Regulation S-X. Accordingly, the accompanying unaudited interim consolidated financial statements do not include all of the information or notes required for complete financial statements. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results which may be expected for the year ending December 31, 2024. These statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). |
Nature of Operations | Nature of Operations The Bank provides a full range of retail, commercial and mortgage banking services as well as government guaranteed lending, consumer insurance, wealth management and merchant services for consumers and small- to medium-size businesses located primarily in north, central, south and coastal Georgia, Birmingham, Alabama and Tallahassee and the Florida Panhandle. The Bank is headquartered in Fitzgerald, Georgia with locations in the Georgia cities of Albany, Ashburn, Athens, Atlanta, Augusta, Broxton, Cedartown, Centerville, Chickamauga, Columbus, Cordele, Douglas, Eastman, Fayetteville, Fitzgerald, LaGrange, Leesburg, Macon, Manchester, Moultrie, Quitman, Rochelle, Rockmart, Savannah, Statesboro, Sylvester, Thomaston, Tifton, Valdosta and Warner Robins along with loan production offices in Birmingham, Alabama and Tallahassee, Florida. Lending and investing activities are funded primarily by deposits gathered through its retail banking office network. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans and fair value of assets acquired and liabilities assumed in a business combination, including goodwill impairment. |
Reclassifications | Reclassifications In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to statement presentations selected for 2024. Such reclassifications have not materially affected previously reported stockholders’ equity or net income. |
Concentrations of Credit Risk | oncentrations of Credit Risk Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At June 30, 2024, approximately 83% of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. Management continues to monitor these concentrations and has considered these concentrations in its allowance for credit loss analysis. The success of the Company is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. Adverse changes in the economic conditions in these geographic markets would likely have a material adverse effect on the Company’s results of operations and financial condition. The operating results of the Company depend primarily on its net interest income. Accordingly, operations are subject to risks and uncertainties surrounding the exposure to changes in the interest rate environment. At times, the Company may have cash and cash equivalents at financial institutions in excess of federal deposit insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions whose credit ratings are monitored by management to minimize credit risk. |
Allowance for Credit Losses ("ACL") - Loans | Allowance for Credit Losses ("ACL") – Loans The current expected credit loss (“CECL”) approach requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). It replaced the incurred loss approach’s threshold that delayed the recognition of a credit loss until it was probable a loss event was incurred. The estimate of expected credit losses is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the historical period used. The Company also considers future economic conditions and portfolio performance as part of a reasonable and supportable forecast period. The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed. Accrued interest receivable is excluded from the estimate of credit losses. Management determines the ACL balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit behaviors along with model judgments provide the basis for the estimation of expected credit losses. Adjustments to modeled loss estimates may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in economic conditions, property values, or other relevant factors. For the majority of loans and leases the ACL is calculated using a discounted cash flow methodology applied at a loan level with a one-year reasonable and supportable forecast period and a two-year straight-line reversion period. The ACL-loans are measured on a collective basis when similar risk characteristics exist. The Company has identified the following portfolio segments and calculates the ACL for each using a discounted cash flow methodology at the loan level, with loss rates, prepayment assumptions and curtailment assumptions driven by each loan’s collateral type: • Construction, land & land development - Risks common to construction, land & development loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements and declines in real estate values. • Other commercial real estate - Loans in this category are susceptible to business failures and declines in general economic conditions, including declines in real estate value, declines in occupancy rates, and lack of suitable alternative use for the property. • Residential real estate - Residential real estate loans are susceptible to weakening general economic conditions, increases in unemployment rates and declining real estate values. • Commercial, financial & agricultural - Risks to this loan category include the inability to monitor the condition of the collateral, which often consists of inventory, accounts receivable and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt. • Consumer and other - Risks common to consumer direct loans include unemployment and changes in local economic conditions as well as the inability to monitor collateral consisting of personal property. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. |
Allowance for Credit Losses | Allowance for Credit Losses – Off-Balance Sheet Credit Exposures Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Management estimates expected credit losses on commitments to extend credit over the contractual period during which the Company is exposed to credit risk on the underlying commitments. The ACL on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The ACL is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to fund. Allowance for Credit Losses – Held-to-Maturity ("HTM") Securities Management measures current expected credit losses on HTM debt securities on a collective basis by major security type. The estimate of current expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the HTM portfolio into the following major security types: U.S. treasury securities, U.S. agency securities, State, county & municipal securities, and Mortgage-backed securities. Accrued interest receivable on HTM debt is excluded from the estimate of credit losses. All of the residential and commercial mortgage-backed securities held by the Company as HTM are issued by U.S. government agencies and government sponsored entities. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The state and political subdivision securities are also highly rated by major rating agencies. Allowance for Credit Losses – Available-for-Sale ("AFS") Securities For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or whether it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an ACL is recognized in other comprehensive income. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. |
Derivatives | Derivatives The Company records cash flow hedges at the inception of a derivative contract based on management’s intentions and belief as to the likely effectiveness of the hedge. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is recorded in other comprehensive income ("OCI") and is reclassified into earnings in the same period during which the hedged transaction affects earnings. The changes in the fair value of a derivative that is not highly effective in hedging the expected cash flows of the hedged item are recognized immediately as interest expense in the consolidated statements of income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income or noninterest expense. Cash flows from hedges are classified in the consolidated statements of cash flows in the same manner as the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged item. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in cash flows of the hedged item, the derivative is settled or terminated, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as interest expense. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in OCI are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
Changes in Accounting Principles | Changes in Accounting Principles In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, Reference Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The updated guidance was originally effective for all entities from March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU 2022-06 which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company has adopted this ASU with no material impact to its financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures ("ASU 2023-07"). This ASU was issued to improve segment reporting disclosures. The amendments in this ASU improve financial reporting by requiring disclosure of incremental segment information including significant segment expenses regularly provided to the chief operating decision maker as well as the amount and composition of other segment items on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Retrospective application is required in all prior periods unless impracticable to do so. The amendments in this standard will be effective for the Company for the fiscal year ended December 31, 2024 and subsequent interim periods. The Company is currently evaluating the impact of the incremental segment information that will be required to be disclosed as well as the impact to the Segment Reporting footnote. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures |
Earnings Per Share | Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflects the potential dilution of restricted stock. |
Fair Value of Financial Instruments and Fair Value Measurements | Cash and short-term investments – For cash, due from banks, bank-owned deposits and federal funds sold, the carrying amount is a reasonable estimate of fair value and is classified as Level 1. Investment securities – Fair values for investment securities are based on quoted market prices where available and classified as Level 1. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments and classified as Level 2. If a comparable is not available, the investment securities are classified as Level 3. Other investments – The fair value of other bank stock approximates carrying value and is classified as Level 2. Fair values for investment funds are based on quoted market prices where available and classified as Level 1. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments and classified as Level 2. If a comparable is not available, the investment securities are classified as Level 3. Loans held for sale – The fair value of loans held for sale is determined on outstanding commitments from third party investors in the secondary markets and is classified within Level 2 of the valuation hierarchy. Loans, net – The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. Most loans are classified as Level 3. Derivative instruments – The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The interest rate swaps are classified as Level 2. Deposits – The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date and is classified as Level 2. The fair value of deposits is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities and is classified as Level 2. Federal Home Loan Bank advances – The fair value of Federal Home Loan Bank advances is estimated by discounting the future cash flows using the current rates at which similar advances would be obtained. Federal Home Loan Bank advances are classified as Level 2. Other borrowings – The fair value of other borrowings is calculated by discounting contractual cash flows using an estimated interest rate based on current rates available to the Company for debt of similar remaining maturities and collateral terms. Other borrowings is classified as Level 2 due to their expected maturities. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | The amortized cost and estimated fair value of securities available-for-sale and held-to-maturity along with gross unrealized gains and losses are summarized as follows: (dollars in thousands) June 30, 2024 Amortized Gross Gross Fair Value Securities Available-for-Sale: U.S. treasury securities $ 7,068 $ — $ (10) $ 7,058 U.S. agency securities 4,238 — (390) 3,848 Asset backed securities 22,182 2 (274) 21,910 State, county & municipal securities 113,089 — (15,924) 97,165 Corporate debt securities 53,337 — (6,613) 46,724 Mortgage-backed securities 224,771 173 (25,069) 199,875 Total $ 424,685 $ 175 $ (48,280) $ 376,580 June 30, 2024 Amortized Gross Gross Fair Value Securities Held-to-Maturity: U.S. treasury securities $ 94,150 $ — $ (3,986) $ 90,164 U.S. agency securities 16,218 — (1,498) 14,720 State, county & municipal securities 136,942 17 (15,586) 121,373 Mortgage-backed securities 195,635 — (28,533) 167,102 Total $ 442,945 $ 17 $ (49,603) $ 393,359 December 31, 2023 Amortized Gross Gross Fair Value Securities Available-for-Sale: U.S. treasury securities $ 500 $ — $ (2) $ 498 U.S. agency securities 4,500 — (361) 4,139 Asset backed securities 25,035 — (405) 24,630 State, county & municipal securities 124,524 6 (15,494) 109,036 Corporate debt securities 53,834 16 (6,460) 47,390 Mortgage-backed securities 246,901 36 (25,248) 221,689 Total $ 455,294 $ 58 $ (47,970) $ 407,382 December 31, 2023 Amortized Gross Gross Fair Value Securities Held-to-Maturity: U.S. treasury securities $ 93,306 $ — $ (3,212) $ 90,094 U.S. agency securities 16,282 — (1,424) 14,858 State, county & municipal securities 136,685 356 (13,859) 123,182 Mortgage-backed securities 202,758 — (25,316) 177,442 Total $ 449,031 $ 356 $ (43,811) $ 405,576 |
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | This is often the case with mortgage-backed securities, which are disclosed separately in the table below. Available-for-Sale Held-to-Maturity (dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 9,283 $ 9,231 $ 19,839 $ 19,580 Due after one year through five years 16,080 14,713 88,816 84,362 Due after five years through ten years 101,749 87,331 67,878 59,370 Due after ten years 72,802 65,430 70,777 62,945 $ 199,914 $ 176,705 $ 247,310 $ 226,257 Mortgage-backed securities 224,771 199,875 195,635 167,102 $ 424,685 $ 376,580 $ 442,945 $ 393,359 |
Schedule of Continuous Unrealized Loss Position | Information pertaining to available-for-sale securities with gross unrealized losses at June 30, 2024 and December 31, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows: Less Than 12 Months 12 Months or Greater Total (dollars in thousands) Fair Gross Fair Gross Fair Gross June 30, 2024 U.S. treasury securities $ 7,058 $ (10) $ — $ — $ 7,058 $ (10) U.S. agency securities — — 3,848 (390) 3,848 (390) Asset backed securities 10,079 (62) 10,753 (212) 20,832 (274) State, county & municipal securities 1,802 (155) 95,148 (15,769) 96,950 (15,924) Corporate debt securities 2,844 (556) 43,880 (6,057) 46,724 (6,613) Mortgage-backed securities 2,331 (7) 183,863 (25,062) 186,194 (25,069) $ 24,114 $ (790) $ 337,492 $ (47,490) $ 361,606 $ (48,280) December 31, 2023 U.S. treasury securities $ — $ — $ 498 $ (2) $ 498 $ (2) U.S. agency securities — — 4,139 (361) 4,139 (361) Asset backed securities 6,196 (75) 17,424 (330) 23,620 (405) State, county & municipal securities 1,033 (138) 107,443 (15,356) 108,476 (15,494) Corporate debt securities 1,446 (105) 45,044 (6,355) 46,490 (6,460) Mortgage-backed securities 5,921 (49) 212,876 (25,199) 218,797 (25,248) $ 14,596 $ (367) $ 387,424 $ (47,603) $ 402,020 $ (47,970) Information pertaining to held-to-maturity securities with gross unrealized losses at June 30, 2024 and December 31, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows: Less Than 12 Months 12 Months or Greater Total (dollars in thousands) Fair Gross Fair Gross Fair Gross June 30, 2024 U.S. treasury securities $ — $ — $ 90,164 $ (3,986) $ 90,164 $ (3,986) U.S. agency securities — — 14,720 (1,498) 14,720 (1,498) State, county & municipal securities 11,588 (213) 103,719 (15,373) 115,307 (15,586) Mortgage-backed securities — — 167,102 (28,533) 167,102 (28,533) $ 11,588 $ (213) $ 375,705 $ (49,390) $ 387,293 $ (49,603) December 31, 2023 U.S. treasury securities $ — $ — $ 90,094 $ (3,212) $ 90,094 $ (3,212) U.S. agency securities — — 14,858 (1,424) 14,858 (1,424) State, county & municipal securities 1,461 (78) 103,500 (13,781) 104,961 (13,859) Mortgage-backed securities — — 177,442 (25,316) 177,442 (25,316) $ 1,461 $ (78) $ 385,894 $ (43,733) $ 387,355 $ (43,811) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Loans Segregated by Class | The following table presents the composition of loans segregated by class of loans, as of June 30, 2024 and December 31, 2023. (dollars in thousands) June 30, 2024 December 31, 2023 Construction, land & land development $ 199,916 $ 247,146 Other commercial real estate 985,102 974,375 Total commercial real estate 1,185,018 1,221,521 Residential real estate 360,847 356,234 Commercial, financial & agricultural 242,205 242,756 Consumer and other 77,504 62,959 Total Loans $ 1,865,574 $ 1,883,470 (dollars in thousands) June 30, 2024 December 31, 2023 Construction, land & land development $ 4,190 $ 7,027 Other commercial real estate 52,444 40,852 Total commercial real estate 56,634 47,879 Residential real estate 9,377 12,170 Commercial, financial & agricultural 30,254 26,716 Consumer and other — — Total Loans $ 96,265 $ 86,765 |
Schedule of Loan Portfolio by Credit Quality Indicators | The following tables present the loan portfolio segregated by class of loans and the risk category of term loans by vintage year, which is the year of origination or most recent renewal, as of June 30, 2024 and December 31, 2023. Those loans with a risk grade of 1, 2, 3, 4, 5 and 98 have been combined in the pass line for presentation purposes. Loans with a risk grade of 7, 8 and 99 have been combined in the substandard line. There were no loans with a risk rating of "doubtful" or "loss" at June 30, 2024 or December 31, 2023. Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolvers Revolvers converted to term loans Total June 30, 2024 Construction, land & land development Risk rating Pass $ 44,124 $ 70,360 $ 51,070 $ 24,673 $ 2,727 $ 6,273 $ 63 $ — $ 199,290 Special Mention — 291 — — — — 281 — 572 Substandard — — — — — 54 — — 54 Total Construction, land & land development 44,124 70,651 51,070 24,673 2,727 6,327 344 — 199,916 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial real estate Risk rating Pass 13,935 83,226 348,545 192,294 81,713 208,832 22,835 2,177 953,557 Special Mention 812 1,400 4,654 457 1,470 7,612 610 539 17,554 Substandard — 1,590 10,118 396 355 725 807 — 13,991 Total Other commercial real estate 14,747 86,216 363,317 193,147 83,538 217,169 24,252 2,716 985,102 Current period gross write offs — — — — — 20 — — 20 Residential real estate Risk rating Pass 8,407 83,088 118,146 50,323 20,485 49,756 23,929 1,283 355,417 Special Mention — 1,238 — — — 2,024 — — 3,262 Substandard — — 552 357 69 1,190 — — 2,168 Total Residential real estate 8,407 84,326 118,698 50,680 20,554 52,970 23,929 1,283 360,847 Current period gross write offs — — 340 — — — — — 340 Commercial, financial & agricultural Risk rating Pass 31,715 52,528 41,998 16,573 10,535 16,555 64,512 608 235,024 Special Mention — 598 — 95 173 — 241 — 1,107 Substandard 71 712 2,076 1,804 361 272 771 7 6,074 Total Commercial, financial & agricultural 31,786 53,838 44,074 18,472 11,069 16,827 65,524 615 242,205 Current period gross write offs 23 350 432 179 20 10 — — 1,014 Consumer and other Risk rating Pass 36,250 34,034 3,065 1,397 832 1,422 425 11 77,436 Special Mention — — — — — — — — — Substandard — 60 — 1 3 4 — — 68 Total Consumer and other 36,250 34,094 3,065 1,398 835 1,426 425 11 77,504 Current period gross write offs — 186 23 — — 42 — — 251 Total Loans Risk rating Pass 134,431 323,236 562,824 285,260 116,292 282,838 111,764 4,079 1,820,724 Special Mention 812 3,527 4,654 552 1,643 9,636 1,132 539 22,495 Substandard 71 2,362 12,746 2,558 788 2,245 1,578 7 22,355 Total Loans $ 135,314 $ 329,125 $ 580,224 $ 288,370 $ 118,723 $ 294,719 $ 114,474 $ 4,625 $ 1,865,574 Total current period gross write offs $ 23 $ 536 $ 795 $ 179 $ 20 $ 72 $ — $ — $ 1,625 Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolvers Revolvers converted to term loans Total December 31, 2023 Construction, land & land development Risk rating Pass $ 112,587 $ 91,981 $ 27,332 $ 5,654 $ 1,000 $ 5,765 $ 605 $ 31 $ 244,955 Special Mention 792 — 25 — — 29 282 — 1,128 Substandard — 888 4 — 20 151 — — 1,063 Total Construction, land & land development 113,379 92,869 27,361 5,654 1,020 5,945 887 31 247,146 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial real estate Risk rating Pass 61,816 341,656 204,145 88,629 79,123 145,374 24,158 2,031 946,932 Special Mention 75 3,251 766 2,113 5,733 4,694 545 48 17,225 Substandard 2,303 2,615 211 — 486 4,395 208 — 10,218 Total Other commercial real estate 64,194 347,522 205,122 90,742 85,342 154,463 24,911 2,079 974,375 Current period gross write offs — — 69 — — — — — 69 Residential real estate Risk rating Pass 78,088 116,704 50,986 21,892 8,510 43,038 22,642 100 341,960 Special Mention 856 466 10 50 679 4,687 424 — 7,172 Substandard — 1,169 384 296 272 4,735 246 — 7,102 Total Residential real estate 78,944 118,339 51,380 22,238 9,461 52,460 23,312 100 356,234 Current period gross write offs 253 492 26 — — — — — 771 Commercial, financial & agricultural Risk rating Pass 66,820 51,439 21,673 12,489 4,734 14,002 58,607 306 230,070 Special Mention 4,186 894 376 745 188 40 974 — 7,403 Substandard 164 1,872 1,979 190 25 165 866 22 5,283 Total Commercial, financial & agricultural 71,170 54,205 24,028 13,424 4,947 14,207 60,447 328 242,756 Current period gross write offs 150 168 408 200 9 134 — — 1,069 Consumer and other Risk rating Pass 53,117 4,021 2,004 1,240 925 908 462 1 62,678 Special Mention 79 42 38 12 25 1 — — 197 Substandard 43 20 3 5 4 9 — — 84 Total Consumer and other 53,239 4,083 2,045 1,257 954 918 462 1 62,959 Current period gross write offs 9 12 10 2 — 2 — — 35 Total Loans Risk rating Pass 372,428 605,801 306,140 129,904 94,292 209,087 106,474 2,469 1,826,595 Special Mention 5,988 4,653 1,215 2,920 6,625 9,451 2,225 48 33,125 Substandard 2,510 6,564 2,581 491 807 9,455 1,320 22 23,750 Total Loans $ 380,926 $ 617,018 $ 309,936 $ 133,315 $ 101,724 $ 227,993 $ 110,019 $ 2,539 $ 1,883,470 Total current period gross write offs $ 412 $ 672 $ 513 $ 202 $ 9 $ 136 $ — $ — $ 1,944 |
Summary of Age Analysis of Past Due Loans | The following table presents the aging of the amortized cost basis of loans by aging category and accrual status as of June 30, 2024 and December 31, 2023: (dollars in thousands) 30-89 Days 90 Days Total Accruing Nonaccrual Current Loans Total Loans June 30, 2024 Construction, land & land development $ 4 $ — $ 4 $ 54 $ 199,858 $ 199,916 Other commercial real estate 1,071 — 1,071 1,894 982,137 985,102 Total commercial real estate 1,075 — 1,075 1,948 1,181,995 1,185,018 Residential real estate 4,999 — 4,999 2,131 353,717 360,847 Commercial, financial & agricultural 488 — 488 2,520 239,197 242,205 Consumer and other 251 41 292 70 77,142 77,504 Total Loans $ 6,813 $ 41 $ 6,854 $ 6,669 $ 1,852,051 $ 1,865,574 December 31, 2023 Construction, land & land development $ 812 $ — $ 812 $ 85 $ 246,249 $ 247,146 Other commercial real estate 1,796 — 1,796 4,219 968,360 974,375 Total commercial real estate 2,608 — 2,608 4,304 1,214,609 1,221,521 Residential real estate 2,503 350 2,853 3,561 349,820 356,234 Commercial, financial & agricultural 775 — 775 1,956 240,025 242,756 Consumer and other 183 20 203 18 62,738 62,959 Total Loans $ 6,069 $ 370 $ 6,439 $ 9,839 $ 1,867,192 $ 1,883,470 |
Summary of Nonaccrual Loans | The following tables display a summary of the Company's nonaccrual loans by major categories for the periods indicated. June 30, 2024 (dollars in thousands) Nonaccrual Loans with No Related ACL Nonaccrual Loans with a Related ACL Total Nonaccrual Loans Construction, land & land development $ — $ 54 $ 54 Other commercial real estate — 1,894 1,894 Total commercial real estate — 1,948 1,948 Residential real estate — 2,131 2,131 Commercial, financial & agricultural — 2,520 2,520 Consumer and other — 70 70 Total Loans $ — $ 6,669 $ 6,669 December 31, 2023 (dollars in thousands) Nonaccrual Loans with No Related ACL Nonaccrual Loans with a Related ACL Total Nonaccrual Loans Construction, land & land development $ 27 $ 58 $ 85 Other commercial real estate 2,806 1,413 4,219 Total commercial real estate 2,833 1,471 4,304 Residential real estate 725 2,836 3,561 Commercial, financial & agricultural — 1,956 1,956 Consumer and other — 18 18 Total Loans $ 3,558 $ 6,281 $ 9,839 |
Summary of Loans Modified Due to Financial Difficulty | The following tables present loans modified due to a financial difficulty under the above terms during the three and six month periods ended June 30, 2024. Three months ended June 30, 2024 (dollars in thousands) Term Extension Payment Delay Term Extension and Payment Delay Total* Commercial, financial & agricultural — 377 — 377 Total Loans $ — $ 377 $ — $ 377 *less than .05% of total class of receivable Six months ended June 30, 2024 (dollars in thousands) Term Extension Payment Delay Term Extension and Payment Delay Total* Commercial real estate $ 131 $ — $ 145 $ 276 Commercial, financial & agricultural — 377 40 417 Total Loans $ 131 $ 377 $ 185 $ 693 *less than .05% of total class of receivable |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Summary of Allowance for Credit Losses | The following tables present the balance sheet activity in the ACL by portfolio segment for loans for the three and six month periods ended June 30, 2024 and June 30, 2023. (dollars in thousands) Balance, March 31, 2024 Charge-Offs Recoveries Provision for credit losses on loans Balance, June 30, 2024 Three Months Ended June 30, 2024 Construction, land & land development $ 2,046 $ — $ 1 $ (752) $ 1,295 Other commercial real estate 7,389 — 9 (2) 7,396 Total commercial real estate 9,435 — 10 (754) 8,691 Residential real estate 5,327 (270) 39 894 5,990 Commercial, financial & agricultural 2,020 (356) 37 314 2,015 Consumer and other 1,875 (131) 4 362 2,110 Total allowance for credit losses on loans $ 18,657 $ (757) $ 90 $ 816 $ 18,806 (dollars in thousands) Balance, December 31, 2023 Charge-Offs Recoveries Provision for credit losses on loans Balance, June 30, 2024 Six Months Ended June 30, 2024 Construction, land & land development $ 2,204 $ — $ 2 $ (911) 1,295 Other commercial real estate 7,064 (20) 18 334 7,396 Total commercial real estate 9,268 (20) 20 (577) 8,691 Residential real estate 5,105 (340) 207 1,018 5,990 Commercial, financial & agricultural 2,110 (1,014) 59 860 2,015 Consumer and other 1,888 (251) 8 465 2,110 Total allowance for credit losses on loans $ 18,371 $ (1,625) $ 294 $ 1,766 $ 18,806 (dollars in thousands) Balance, March 31, 2023 Charge-Offs Recoveries Provision for credit losses on loans Balance, June 30, 2023 Three Months Ended June 30, 2023 Construction, land & land development $ 2,342 $ — $ 5 $ (66) $ 2,281 Other commercial real estate 8,122 — 11 600 8,733 Total commercial real estate 10,464 — 16 534 11,014 Residential real estate 4,112 — 26 (1,496) 2,642 Commercial, financial & agricultural 1,657 (170) 160 1,337 2,984 Consumer and other 366 — 5 55 426 Total allowance for loan losses $ 16,599 $ (170) $ 207 $ 430 $ 17,066 (dollars in thousands) Balance December 31, 2021 Charge-Offs Recoveries Provision Balance, September 30, 2022 Six Months Ended June 30, 2023 Balance December 31, 2022 Adoption of ASU 2016-13 Charge-Offs Recoveries Provision for credit losses on loans Balance, June 30, 2023 Construction, land & land development $ 1,959 $ 148 $ — $ 8 $ 166 $ 2,281 Other commercial real estate 8,886 (630) — 25 452 8,733 Total commercial real estate 10,845 (482) — 33 618 11,014 Residential real estate 2,354 1,053 — 37 (802) 2,642 Commercial, financial & agricultural 2,709 (690) (443) 167 1,241 2,984 Consumer and other 220 66 (3) 9 134 426 Total allowance for loan losses $ 16,128 $ (53) $ (446) $ 246 $ 1,191 $ 17,066 The following table presents the balance and activity in the allowance for credit losses for unfunded commitments for the three and six month periods ended June 30, 2024 and June 30, 2023. Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Beginning balance $ 1,425 $ 1,800 $ 1,375 $ — Adjustment to allowance for unfunded commitments for adoption of ASU 2016-13 — — — 1,661 Change in unfunded commitments (166) (230) (116) (91) Ending balance $ 1,259 $ 1,570 $ 1,259 $ 1,570 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Gain (Loss) on Interest Rate Swaps | The following table presents the amounts recorded in the consolidated statements of income and the consolidated statements of comprehensive income relating to the interest rate swaps for the three and six months ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Amount of gain recognized in OCI, net of tax $ 126 $ 199 $ 722 $ 199 Amount of gain reclassified from OCI to interest expense, net of tax 140 7 $ 277 7 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Other Borrowed Money | The following table presents information regarding the Company’s outstanding borrowings at June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, 2024 December 31, 2023 Federal Home Loan Bank advances 205,000 175,000 Other borrowings 62,992 63,445 $ 267,992 $ 238,445 |
Schedule of Aggregate Stated Maturities | The aggregate stated maturities of other borrowed money at June 30, 2024 are as follows: (dollars in thousands) Year Amount 2024 $ 70,000 2025 — 2026 25,000 2027 15,000 2028 65,000 2029 and After 92,992 $ 267,992 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share | The following table presents earnings per share for the three and six months ended June 30, 2024 and 2023. (dollars in thousands, except per share data) Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator Net income available to common stockholders $ 5,474 $ 5,302 $ 10,807 $ 10,345 Denominator Weighted average number of common shares Outstanding for basic earnings per common share 17,551,007 17,580,557 17,555,609 17,588,081 Weighted-average number of shares outstanding for diluted earnings per common share 17,551,007 17,580,557 17,555,609 17,588,081 Earnings per share - basic $ 0.31 $ 0.30 $ 0.62 $ 0.59 Earnings per share - diluted $ 0.31 $ 0.30 $ 0.62 $ 0.59 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments Outstanding Whose Contract Amount Represents Credit Risk | At June 30, 2024 and December 31, 2023 the following financial instruments were outstanding whose contract amounts represent credit risk: Contract Amount (dollars in thousands) June 30, 2024 December 31, 2023 Loan commitments $ 338,106 $ 362,878 Letters of credit 5,318 5,656 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2024 and December 31, 2023 are as follows: Fair Value Measurements (dollars in thousands) Carrying Estimated Level Level Level June 30, 2024 Assets Cash and short-term investments $ 82,002 $ 82,002 $ 82,002 $ — $ — Investment securities available-for-sale 376,580 376,580 — 367,207 9,373 Investment securities held-to-maturity 442,945 393,359 — 393,359 — Other investments 18,491 18,491 — 18,491 — Loans held for sale 40,132 40,132 — 40,132 — Loans, net 1,846,768 1,701,073 — — 1,701,073 Derivative instruments 531 531 — 531 — Liabilities Deposits 2,460,225 2,454,409 — 2,454,409 — Federal Home Loan Bank advances 205,000 207,372 — 207,372 — Other borrowings 62,992 50,554 — 50,554 — Fair Value Measurements (dollars in thousands) Carrying Estimated Level Level Level December 31, 2023 Assets Cash and short-term investments $ 83,322 $ 83,322 $ 83,322 $ — $ — Investment securities available-for-sale 407,382 407,382 — 396,568 10,814 Investment securities held-to-maturity 449,031 405,576 — 405,576 — Other investments 16,868 16,868 — 16,868 — Loans held for sale 27,958 27,958 — 27,958 — Loans, net 1,865,099 1,699,870 — — 1,699,870 Liabilities Deposits 2,544,790 2,538,477 — 2,538,477 — Federal Home Loan Bank advances 175,000 176,022 — 176,022 — Other borrowings 63,445 51,056 — 51,056 — Derivative instruments 438 438 — 438 — |
Fair Value Measurements, Recurring and Nonrecurring | The following tables present the recorded amount of the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of June 30, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall. The tables below include collateral dependent impaired loans and other real estate properties at June 30, 2024 and December 31, 2023. Those collateral dependent impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances. Fair Value Measurements at Reporting Date Using (dollars in thousands) Total Fair Value (Level 1) (Level 2) (Level 3) June 30, 2024 Recurring Investment securities available-for-sale U.S. treasury securities $ 7,058 $ — $ 7,058 $ — U.S. agency securities 3,848 — 3,848 — Asset backed securities 21,910 — 21,910 — State, county & municipal securities 97,165 — 97,165 — Corporate debt securities 46,724 — 40,166 6,558 Mortgage-backed securities 199,875 — 197,060 2,815 Total investment securities available-for-sale 376,580 — 367,207 9,373 Loans held for sale 40,132 — 40,132 — Derivative instruments 531 — 531 — Total recurring assets $ 417,243 $ — $ 407,870 $ 9,373 Nonrecurring Collateral dependent loans $ 1,427 $ — $ — $ 1,427 Other real estate owned 582 — — 582 Total nonrecurring assets $ 2,009 $ — $ — $ 2,009 Fair Value Measurements at Reporting Date Using (dollars in thousands) Total Fair (Level 1) (Level 2) (Level 3) December 31, 2023 Recurring Investment securities available-for-sale U.S. treasury securities $ 498 $ — $ 498 $ — U.S. agency securities 4,139 — 4,139 — Asset backed securities 24,630 — 24,630 — State, county & municipal securities 109,036 — 109,036 — Corporate debt securities 47,390 — 40,465 6,925 Mortgage-backed securities 221,689 — 217,800 3,889 Total investment securities available-for-sale 407,382 — 396,568 10,814 Loans held for sale 27,958 — 27,958 — Total recurring assets $ 435,340 $ — $ 424,526 $ 10,814 Derivative instruments $ 438 $ — $ 438 $ — Total recurring liabilities $ 438 $ — $ 438 $ — Nonrecurring Collateral dependent loans $ 1,410 $ — $ — $ 1,410 Other real estate owned 448 — — 448 Total nonrecurring assets $ 1,858 $ — $ — $ 1,858 |
Fair Value Measurement Inputs and Valuation Techniques | The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at June 30, 2024 and December 31, 2023. This table is comprised of collateral dependent impaired loans and other real estate owned: (dollars in thousands) June 30, 2024 Valuation Unobservable Discount rate Collateral dependent loans $ 1,427 Appraised Value Discounts to reflect estimated costs to sell 10 % Other real estate owned 582 Appraised Value/Comparable Sales Discounts to reflect current market conditions and estimated costs to sell 10 % (dollars in thousands) December 31, 2023 Valuation Unobservable Discount rate Collateral dependent loans $ 1,410 Appraised Value Discounts to reflect estimated costs to sell 10 % Other real estate owned 448 Appraised Value/Comparable Sales Discounts to reflect current market conditions and estimated costs to sell 10 % The following table presents quantitative information about recurring level 3 fair value measurements as of June 30, 2024 and December 31, 2023. As of June 30, 2024 (dollars in thousands) Fair Value Valuation Unobservable Range Available-for-sale securities $ 9,373 Discounted Cash Flow Discount Rate or Yield N/A* As of December 31, 2023 (dollars in thousands) Fair Value Valuation Unobservable Range Available-for-sale securities $ 10,814 Discounted Cash Flow Discount Rate or Yield N/A* * The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the three and six months ended June 30, 2024. Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 (dollars in thousands) Available-for-sale securities Available-for-sale securities Balance, Beginning $ 7,145 $ 10,814 Additions 2,588 2,588 Redemptions/Payments (338) (3,251) Fair value adjustments (22) 1,647 Transfers between levels — (2,425) Balance, Ending $ 9,373 $ 9,373 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present information reported internally for performance assessment for the three and six months ended June 30, 2024 and 2023: (dollars in thousands) Bank Mortgage Small Totals Six Months Ended June 30, 2024 Net Interest Income $ 34,769 $ 90 $ 2,204 $ 37,063 Provision for Credit Losses 551 — 1,099 1,650 Noninterest Income 10,766 2,621 5,597 18,984 Noninterest Expenses 34,264 2,544 3,919 40,727 Income Taxes 2,226 43 594 2,863 Segment Profit $ 8,494 $ 124 $ 2,189 $ 10,807 Segments Assets at June 30, 2024 $ 2,889,013 $ 19,004 $ 99,890 $ 3,007,907 Full time employees at June 30, 2024 385 42 33 460 (dollars in thousands) Bank Mortgage Small Totals Six Months Ended June 30, 2023 Net Interest Income $ 38,700 $ 34 $ 1,015 $ 39,749 Provision for Credit Losses 960 — 140 1,100 Noninterest Income 10,351 3,292 2,968 16,611 Noninterest Expenses 35,462 3,683 3,452 42,597 Income Taxes 2,312 (72) 78 2,318 Segment Profit $ 10,317 $ (285) $ 313 $ 10,345 Segments Assets at December 31, 2023 $ 2,956,121 $ 7,890 $ 89,411 $ 3,053,422 Full time employees at June 30, 2023 383 51 32 466 (dollars in thousands) Bank Mortgage Small Totals Three Months Ended June 30, 2024 Net Interest Income $ 17,217 $ 50 $ 1,142 $ 18,409 Provision for Credit Losses 96 — 554 650 Noninterest Income 5,086 1,456 2,955 9,497 Noninterest Expenses 17,135 1,326 1,869 20,330 Income Taxes 1,060 42 350 1,452 Segment Profit $ 4,012 $ 138 $ 1,324 $ 5,474 (dollars in thousands) Bank Mortgage Small Totals Three Months Ended June 30, 2023 Net Interest Income $ 18,562 $ 31 $ 588 $ 19,181 Provision for Credit Losses 60 — 140 200 Noninterest Income 5,433 2,015 1,504 8,952 Noninterest Expenses 17,650 1,971 1,811 21,432 Income Taxes 1,157 14 28 1,199 Segment Profit $ 5,128 $ 61 $ 113 $ 5,302 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Banking And Thrift Disclosure [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following tables summarize regulatory capital information as of June 30, 2024 and December 31, 2023 on a consolidated basis and for the subsidiary, as defined. Regulatory capital ratios for June 30, 2024 and December 31, 2023 were calculated in accordance with the Basel III rules. (dollars in thousands) Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio As of June 30, 2024 Total Capital to Risk-Weighted Assets Consolidated $ 342,134 16.17 % $ 169,269 8.00 % $ 211,586 10.00 % Colony Bank 312,286 14.80 168,803 8.00 211,004 10.00 Tier 1 Capital to Risk-Weighted Assets Consolidated 283,305 13.39 126,948 6.00 169,264 8.00 Colony Bank 292,220 13.85 126,594 6.00 168,791 8.00 Common Equity Tier 1 Capital to Risk-Weighted Assets Consolidated 259,076 12.25 95,171 4.50 137,469 6.50 Colony Bank 292,220 13.85 94,945 4.50 137,143 6.50 Tier 1 Capital to Average Assets Consolidated 283,305 9.44 120,044 4.00 150,056 5.00 Colony Bank 292,220 9.76 119,762 4.00 149,703 5.00 (dollars in thousands) Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total Capital to Risk-Weighted Assets Consolidated $ 337,159 15.47 % $ 174,355 8.00 % $ 217,944 10.00 % Colony Bank 300,497 13.85 173,572 8.00 216,965 10.00 Tier 1 Capital to Risk-Weighted Assets Consolidated 278,196 12.77 130,711 6.00 174,281 8.00 Colony Bank 280,751 12.94 130,178 6.00 173,571 8.00 Common Equity Tier 1 Capital to Risk-Weighted Assets Consolidated 253,967 11.66 98,015 4.50 141,577 6.50 Colony Bank 280,751 12.94 97,634 4.50 141,026 6.50 Tier 1 Capital to Average Assets Consolidated 278,196 9.17 121,350 4.00 151,688 5.00 Colony Bank 280,751 9.28 121,013 4.00 151,267 5.00 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Percentage of loan portfolio concentrated in loans secured by real estate | 83% |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Securities Available-for-Sale: | ||
Amortized Cost | $ 424,685 | $ 455,294 |
Gross Unrealized Gains | 175 | 58 |
Gross Unrealized Losses | (48,280) | (47,970) |
Fair Value | 376,580 | 407,382 |
Securities Held-to-Maturity: | ||
Amortized Cost | 442,945 | 449,031 |
Gross Unrealized Gains | 17 | 356 |
Gross Unrealized Losses | (49,603) | (43,811) |
Fair Value | 393,359 | 405,576 |
U.S. treasury securities | ||
Securities Available-for-Sale: | ||
Amortized Cost | 7,068 | 500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (10) | (2) |
Securities Held-to-Maturity: | ||
Amortized Cost | 94,150 | 93,306 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3,986) | (3,212) |
Fair Value | 90,164 | 90,094 |
U.S. agency securities | ||
Securities Available-for-Sale: | ||
Amortized Cost | 4,238 | 4,500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (390) | (361) |
Securities Held-to-Maturity: | ||
Amortized Cost | 16,218 | 16,282 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,498) | (1,424) |
Fair Value | 14,720 | 14,858 |
Asset backed securities | ||
Securities Available-for-Sale: | ||
Amortized Cost | 22,182 | 25,035 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (274) | (405) |
State, county & municipal securities | ||
Securities Available-for-Sale: | ||
Amortized Cost | 113,089 | 124,524 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | (15,924) | (15,494) |
Securities Held-to-Maturity: | ||
Amortized Cost | 136,942 | 136,685 |
Gross Unrealized Gains | 17 | 356 |
Gross Unrealized Losses | (15,586) | (13,859) |
Fair Value | 121,373 | 123,182 |
Corporate debt securities | ||
Securities Available-for-Sale: | ||
Amortized Cost | 53,337 | 53,834 |
Gross Unrealized Gains | 0 | 16 |
Gross Unrealized Losses | (6,613) | (6,460) |
Mortgage-backed securities | ||
Securities Available-for-Sale: | ||
Amortized Cost | 224,771 | 246,901 |
Gross Unrealized Gains | 173 | 36 |
Gross Unrealized Losses | (25,069) | (25,248) |
Securities Held-to-Maturity: | ||
Amortized Cost | 195,635 | 202,758 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (28,533) | (25,316) |
Fair Value | $ 167,102 | $ 177,442 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 USD ($) security | Jun. 30, 2024 USD ($) security | Jun. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities, accrued interest receivable | $ 2,200,000 | $ 2,200,000 | $ 2,400,000 | ||||
Held-to-maturity securities, accrued interest receivable | $ 1,900,000 | $ 1,900,000 | $ 1,900,000 | ||||
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | Other assets | ||||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | Other assets | ||||
Proceeds from sales of investment securities, available-for-sale | $ 9,200,000 | $ 17,750,000 | $ 0 | ||||
Gross realized losses on securities | $ 425,000 | $ 980,000 | |||||
Number of available for sale securities that have unrealized losses | security | 261 | 261 | |||||
Number of held to maturity securities that have unrealized losses | security | 155 | 155 | |||||
Allowance for credit loss | $ 18,806,000 | $ 18,806,000 | $ 17,066,000 | $ 18,657,000 | $ 18,371,000 | $ 16,599,000 | $ 16,128,000 |
Investment Securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Allowance for credit loss | 0 | 0 | |||||
Asset Pledged as Collateral | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Investment securities pledged as collateral | $ 364,400,000 | $ 364,400,000 | $ 429,900,000 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in one year or less | $ 9,283 | |
Due after one year through five years | 16,080 | |
Due after five years through ten years | 101,749 | |
Due after ten years | 72,802 | |
Total amortized cost | 199,914 | |
Mortgage-backed securities | 224,771 | |
Amortized Cost | 424,685 | $ 455,294 |
Fair Value | ||
Due in one year or less | 9,231 | |
Due after one year through five years | 14,713 | |
Due after five years through ten years | 87,331 | |
Due after ten years | 65,430 | |
Total fair value | 176,705 | |
Mortgage-backed securities | 199,875 | |
Fair value | 376,580 | 407,382 |
Amortized Cost | ||
Due in one year or less | 19,839 | |
Due after one year through five years | 88,816 | |
Due after five years through ten years | 67,878 | |
Due after ten years | 70,777 | |
Total amortized cost | 247,310 | |
Mortgage-backed securities | 195,635 | |
Amortized Cost | 442,945 | 449,031 |
Fair Value | ||
Due in one year or less | 19,580 | |
Due after one year through five years | 84,362 | |
Due after five years through ten years | 59,370 | |
Due after ten years | 62,945 | |
Total fair value | 226,257 | |
Mortgage-backed securities | 167,102 | |
Fair value | $ 393,359 | $ 405,576 |
Investment Securities - Availab
Investment Securities - Available for Sale Securities Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value | ||
Less Than 12 Months | $ 24,114 | $ 14,596 |
12 Months or Greater | 337,492 | 387,424 |
Total | 361,606 | 402,020 |
Gross Unrealized Losses | ||
Less Than 12 Months | (790) | (367) |
12 Months or Greater | (47,490) | (47,603) |
Total | (48,280) | (47,970) |
U.S. treasury securities | ||
Fair Value | ||
Less Than 12 Months | 7,058 | 0 |
12 Months or Greater | 0 | 498 |
Total | 7,058 | 498 |
Gross Unrealized Losses | ||
Less Than 12 Months | (10) | 0 |
12 Months or Greater | 0 | (2) |
Total | (10) | (2) |
U.S. agency securities | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or Greater | 3,848 | 4,139 |
Total | 3,848 | 4,139 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Greater | (390) | (361) |
Total | (390) | (361) |
Asset backed securities | ||
Fair Value | ||
Less Than 12 Months | 10,079 | 6,196 |
12 Months or Greater | 10,753 | 17,424 |
Total | 20,832 | 23,620 |
Gross Unrealized Losses | ||
Less Than 12 Months | (62) | (75) |
12 Months or Greater | (212) | (330) |
Total | (274) | (405) |
State, county & municipal securities | ||
Fair Value | ||
Less Than 12 Months | 1,802 | 1,033 |
12 Months or Greater | 95,148 | 107,443 |
Total | 96,950 | 108,476 |
Gross Unrealized Losses | ||
Less Than 12 Months | (155) | (138) |
12 Months or Greater | (15,769) | (15,356) |
Total | (15,924) | (15,494) |
Corporate debt securities | ||
Fair Value | ||
Less Than 12 Months | 2,844 | 1,446 |
12 Months or Greater | 43,880 | 45,044 |
Total | 46,724 | 46,490 |
Gross Unrealized Losses | ||
Less Than 12 Months | (556) | (105) |
12 Months or Greater | (6,057) | (6,355) |
Total | (6,613) | (6,460) |
Mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 2,331 | 5,921 |
12 Months or Greater | 183,863 | 212,876 |
Total | 186,194 | 218,797 |
Gross Unrealized Losses | ||
Less Than 12 Months | (7) | (49) |
12 Months or Greater | (25,062) | (25,199) |
Total | $ (25,069) | $ (25,248) |
Investment Securities - Held to
Investment Securities - Held to Maturity Continuous Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value | ||
Less Than 12 Months | $ 11,588 | $ 1,461 |
12 Months or Greater | 375,705 | 385,894 |
Total | 387,293 | 387,355 |
Gross Unrealized Losses | ||
Less Than 12 Months | (213) | (78) |
12 Months or Greater | (49,390) | (43,733) |
Total | (49,603) | (43,811) |
U.S. treasury securities | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or Greater | 90,164 | 90,094 |
Total | 90,164 | 90,094 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Greater | (3,986) | (3,212) |
Total | (3,986) | (3,212) |
U.S. agency securities | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or Greater | 14,720 | 14,858 |
Total | 14,720 | 14,858 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Greater | (1,498) | (1,424) |
Total | (1,498) | (1,424) |
State, county & municipal securities | ||
Fair Value | ||
Less Than 12 Months | 11,588 | 1,461 |
12 Months or Greater | 103,719 | 103,500 |
Total | 115,307 | 104,961 |
Gross Unrealized Losses | ||
Less Than 12 Months | (213) | (78) |
12 Months or Greater | (15,373) | (13,781) |
Total | (15,586) | (13,859) |
Mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or Greater | 167,102 | 177,442 |
Total | 167,102 | 177,442 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Greater | (28,533) | (25,316) |
Total | $ (28,533) | $ (25,316) |
Loans - Loans Segregated by Cla
Loans - Loans Segregated by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | $ 1,865,574 | $ 1,883,470 |
Loans Insured or Guaranteed by US Government Authorities | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 96,265 | 86,765 |
Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 1,185,018 | 1,221,521 |
Commercial real estate | Loans Insured or Guaranteed by US Government Authorities | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 56,634 | 47,879 |
Commercial real estate | Construction, land & land development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 199,916 | 247,146 |
Commercial real estate | Construction, land & land development | Loans Insured or Guaranteed by US Government Authorities | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 4,190 | 7,027 |
Commercial real estate | Other commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 985,102 | 974,375 |
Commercial real estate | Other commercial real estate | Loans Insured or Guaranteed by US Government Authorities | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 52,444 | 40,852 |
Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 360,847 | 356,234 |
Residential real estate | Loans Insured or Guaranteed by US Government Authorities | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 9,377 | 12,170 |
Commercial, financial & agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 242,205 | 242,756 |
Commercial, financial & agricultural | Loans Insured or Guaranteed by US Government Authorities | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 30,254 | 26,716 |
Consumer and other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 77,504 | 62,959 |
Consumer and other | Loans Insured or Guaranteed by US Government Authorities | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | $ 0 | $ 0 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) modified_loan | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) modified_loan loan | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) loan | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loans, net of unearned income | $ 1,865,574 | $ 1,865,574 | $ 1,883,470 | ||
Accrued interest receivable for loans | 8,800 | 8,800 | 8,800 | ||
Outstanding balance of high risk loans, minimum | 500 | 500 | |||
Financing receivable, excluding accrued interest, collateral-dependent | 1,400 | 1,400 | $ 1,400 | ||
Interest income | 135 | $ 206 | $ 217 | $ 360 | |
Loan contracts restructured | modified_loan | 4 | ||||
Number of loans that subsequently defaulted | loan | 0 | 0 | |||
Commercial real estate | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loans, net of unearned income | 1,185,018 | $ 1,185,018 | $ 1,221,521 | ||
Financing receivable, grading risk matrix, minimum threshold | 500 | 500 | |||
Financing receivable, grading risk matrix, maximum threshold | 500 | $ 500 | |||
Commercial real estate | Term Extension | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loan contracts restructured | modified_loan | 2 | ||||
Term extension from modification | 1 year | ||||
Commercial real estate | Payment Delay | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loan contracts restructured | modified_loan | 1 | ||||
Commercial, financial & agricultural | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loans, net of unearned income | $ 242,205 | $ 242,205 | 242,756 | ||
Commercial, financial & agricultural | Term Extension | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loan contracts restructured | modified_loan | 1 | ||||
Term extension from modification | 5 years | ||||
Commercial, financial & agricultural | Payment Delay | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loan contracts restructured | modified_loan | 1 | 2 | |||
Loans Insured or Guaranteed by US Government Authorities | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loans, net of unearned income | $ 96,265 | $ 96,265 | 86,765 | ||
Loans Insured or Guaranteed by US Government Authorities | Commercial real estate | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loans, net of unearned income | 56,634 | 56,634 | 47,879 | ||
Loans Insured or Guaranteed by US Government Authorities | Commercial, financial & agricultural | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Loans, net of unearned income | $ 30,254 | $ 30,254 | $ 26,716 |
Loans - Loan Portfolio by Credi
Loans - Loan Portfolio by Credit Quality Indicators (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | $ 135,314 | $ 380,926 |
Year one, current period gross write-offs | 23 | 412 |
Year two | 329,125 | 617,018 |
Year two, current period gross write-offs | 536 | 672 |
Year three | 580,224 | 309,936 |
Year three, current period gross write-offs | 795 | 513 |
Year four | 288,370 | 133,315 |
Year four, current period gross write-offs | 179 | 202 |
Year five | 118,723 | 101,724 |
Year five, current period gross write-offs | 20 | 9 |
Prior | 294,719 | 227,993 |
Prior, current period gross write-offs | 72 | 136 |
Revolvers | 114,474 | 110,019 |
Revolvers, current period gross write-offs | 0 | 0 |
Revolvers converted to term loans | 4,625 | 2,539 |
Revolvers converted to term loans, current period gross write-offs | 0 | 0 |
Loans, net of unearned income | 1,865,574 | 1,883,470 |
Loans, current period gross write-offs | 1,625 | 1,944 |
Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans, net of unearned income | 1,185,018 | 1,221,521 |
Commercial real estate | Construction, land & land development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 44,124 | 113,379 |
Year one, current period gross write-offs | 0 | 0 |
Year two | 70,651 | 92,869 |
Year two, current period gross write-offs | 0 | 0 |
Year three | 51,070 | 27,361 |
Year three, current period gross write-offs | 0 | 0 |
Year four | 24,673 | 5,654 |
Year four, current period gross write-offs | 0 | 0 |
Year five | 2,727 | 1,020 |
Year five, current period gross write-offs | 0 | 0 |
Prior | 6,327 | 5,945 |
Prior, current period gross write-offs | 0 | 0 |
Revolvers | 344 | 887 |
Revolvers, current period gross write-offs | 0 | 0 |
Revolvers converted to term loans | 0 | 31 |
Revolvers converted to term loans, current period gross write-offs | 0 | 0 |
Loans, net of unearned income | 199,916 | 247,146 |
Loans, current period gross write-offs | 0 | 0 |
Commercial real estate | Other commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 14,747 | 64,194 |
Year one, current period gross write-offs | 0 | 0 |
Year two | 86,216 | 347,522 |
Year two, current period gross write-offs | 0 | 0 |
Year three | 363,317 | 205,122 |
Year three, current period gross write-offs | 0 | 69 |
Year four | 193,147 | 90,742 |
Year four, current period gross write-offs | 0 | 0 |
Year five | 83,538 | 85,342 |
Year five, current period gross write-offs | 0 | 0 |
Prior | 217,169 | 154,463 |
Prior, current period gross write-offs | 20 | 0 |
Revolvers | 24,252 | 24,911 |
Revolvers, current period gross write-offs | 0 | 0 |
Revolvers converted to term loans | 2,716 | 2,079 |
Revolvers converted to term loans, current period gross write-offs | 0 | 0 |
Loans, net of unearned income | 985,102 | 974,375 |
Loans, current period gross write-offs | 20 | 69 |
Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 8,407 | 78,944 |
Year one, current period gross write-offs | 0 | 253 |
Year two | 84,326 | 118,339 |
Year two, current period gross write-offs | 0 | 492 |
Year three | 118,698 | 51,380 |
Year three, current period gross write-offs | 340 | 26 |
Year four | 50,680 | 22,238 |
Year four, current period gross write-offs | 0 | 0 |
Year five | 20,554 | 9,461 |
Year five, current period gross write-offs | 0 | 0 |
Prior | 52,970 | 52,460 |
Prior, current period gross write-offs | 0 | 0 |
Revolvers | 23,929 | 23,312 |
Revolvers, current period gross write-offs | 0 | 0 |
Revolvers converted to term loans | 1,283 | 100 |
Revolvers converted to term loans, current period gross write-offs | 0 | 0 |
Loans, net of unearned income | 360,847 | 356,234 |
Loans, current period gross write-offs | 340 | 771 |
Commercial, financial & agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 31,786 | 71,170 |
Year one, current period gross write-offs | 23 | 150 |
Year two | 53,838 | 54,205 |
Year two, current period gross write-offs | 350 | 168 |
Year three | 44,074 | 24,028 |
Year three, current period gross write-offs | 432 | 408 |
Year four | 18,472 | 13,424 |
Year four, current period gross write-offs | 179 | 200 |
Year five | 11,069 | 4,947 |
Year five, current period gross write-offs | 20 | 9 |
Prior | 16,827 | 14,207 |
Prior, current period gross write-offs | 10 | 134 |
Revolvers | 65,524 | 60,447 |
Revolvers, current period gross write-offs | 0 | 0 |
Revolvers converted to term loans | 615 | 328 |
Revolvers converted to term loans, current period gross write-offs | 0 | 0 |
Loans, net of unearned income | 242,205 | 242,756 |
Loans, current period gross write-offs | 1,014 | 1,069 |
Consumer and other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 36,250 | 53,239 |
Year one, current period gross write-offs | 0 | 9 |
Year two | 34,094 | 4,083 |
Year two, current period gross write-offs | 186 | 12 |
Year three | 3,065 | 2,045 |
Year three, current period gross write-offs | 23 | 10 |
Year four | 1,398 | 1,257 |
Year four, current period gross write-offs | 0 | 2 |
Year five | 835 | 954 |
Year five, current period gross write-offs | 0 | 0 |
Prior | 1,426 | 918 |
Prior, current period gross write-offs | 42 | 2 |
Revolvers | 425 | 462 |
Revolvers, current period gross write-offs | 0 | 0 |
Revolvers converted to term loans | 11 | 1 |
Revolvers converted to term loans, current period gross write-offs | 0 | 0 |
Loans, net of unearned income | 77,504 | 62,959 |
Loans, current period gross write-offs | 251 | 35 |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 134,431 | 372,428 |
Year two | 323,236 | 605,801 |
Year three | 562,824 | 306,140 |
Year four | 285,260 | 129,904 |
Year five | 116,292 | 94,292 |
Prior | 282,838 | 209,087 |
Revolvers | 111,764 | 106,474 |
Revolvers converted to term loans | 4,079 | 2,469 |
Loans, net of unearned income | 1,820,724 | 1,826,595 |
Pass | Commercial real estate | Construction, land & land development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 44,124 | 112,587 |
Year two | 70,360 | 91,981 |
Year three | 51,070 | 27,332 |
Year four | 24,673 | 5,654 |
Year five | 2,727 | 1,000 |
Prior | 6,273 | 5,765 |
Revolvers | 63 | 605 |
Revolvers converted to term loans | 0 | 31 |
Loans, net of unearned income | 199,290 | 244,955 |
Pass | Commercial real estate | Other commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 13,935 | 61,816 |
Year two | 83,226 | 341,656 |
Year three | 348,545 | 204,145 |
Year four | 192,294 | 88,629 |
Year five | 81,713 | 79,123 |
Prior | 208,832 | 145,374 |
Revolvers | 22,835 | 24,158 |
Revolvers converted to term loans | 2,177 | 2,031 |
Loans, net of unearned income | 953,557 | 946,932 |
Pass | Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 8,407 | 78,088 |
Year two | 83,088 | 116,704 |
Year three | 118,146 | 50,986 |
Year four | 50,323 | 21,892 |
Year five | 20,485 | 8,510 |
Prior | 49,756 | 43,038 |
Revolvers | 23,929 | 22,642 |
Revolvers converted to term loans | 1,283 | 100 |
Loans, net of unearned income | 355,417 | 341,960 |
Pass | Commercial, financial & agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 31,715 | 66,820 |
Year two | 52,528 | 51,439 |
Year three | 41,998 | 21,673 |
Year four | 16,573 | 12,489 |
Year five | 10,535 | 4,734 |
Prior | 16,555 | 14,002 |
Revolvers | 64,512 | 58,607 |
Revolvers converted to term loans | 608 | 306 |
Loans, net of unearned income | 235,024 | 230,070 |
Pass | Consumer and other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 36,250 | 53,117 |
Year two | 34,034 | 4,021 |
Year three | 3,065 | 2,004 |
Year four | 1,397 | 1,240 |
Year five | 832 | 925 |
Prior | 1,422 | 908 |
Revolvers | 425 | 462 |
Revolvers converted to term loans | 11 | 1 |
Loans, net of unearned income | 77,436 | 62,678 |
Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 812 | 5,988 |
Year two | 3,527 | 4,653 |
Year three | 4,654 | 1,215 |
Year four | 552 | 2,920 |
Year five | 1,643 | 6,625 |
Prior | 9,636 | 9,451 |
Revolvers | 1,132 | 2,225 |
Revolvers converted to term loans | 539 | 48 |
Loans, net of unearned income | 22,495 | 33,125 |
Special Mention | Commercial real estate | Construction, land & land development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 0 | 792 |
Year two | 291 | 0 |
Year three | 0 | 25 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 29 |
Revolvers | 281 | 282 |
Revolvers converted to term loans | 0 | 0 |
Loans, net of unearned income | 572 | 1,128 |
Special Mention | Commercial real estate | Other commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 812 | 75 |
Year two | 1,400 | 3,251 |
Year three | 4,654 | 766 |
Year four | 457 | 2,113 |
Year five | 1,470 | 5,733 |
Prior | 7,612 | 4,694 |
Revolvers | 610 | 545 |
Revolvers converted to term loans | 539 | 48 |
Loans, net of unearned income | 17,554 | 17,225 |
Special Mention | Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 0 | 856 |
Year two | 1,238 | 466 |
Year three | 0 | 10 |
Year four | 0 | 50 |
Year five | 0 | 679 |
Prior | 2,024 | 4,687 |
Revolvers | 0 | 424 |
Revolvers converted to term loans | 0 | 0 |
Loans, net of unearned income | 3,262 | 7,172 |
Special Mention | Commercial, financial & agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 0 | 4,186 |
Year two | 598 | 894 |
Year three | 0 | 376 |
Year four | 95 | 745 |
Year five | 173 | 188 |
Prior | 0 | 40 |
Revolvers | 241 | 974 |
Revolvers converted to term loans | 0 | 0 |
Loans, net of unearned income | 1,107 | 7,403 |
Special Mention | Consumer and other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 0 | 79 |
Year two | 0 | 42 |
Year three | 0 | 38 |
Year four | 0 | 12 |
Year five | 0 | 25 |
Prior | 0 | 1 |
Revolvers | 0 | 0 |
Revolvers converted to term loans | 0 | 0 |
Loans, net of unearned income | 0 | 197 |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 71 | 2,510 |
Year two | 2,362 | 6,564 |
Year three | 12,746 | 2,581 |
Year four | 2,558 | 491 |
Year five | 788 | 807 |
Prior | 2,245 | 9,455 |
Revolvers | 1,578 | 1,320 |
Revolvers converted to term loans | 7 | 22 |
Loans, net of unearned income | 22,355 | 23,750 |
Substandard | Commercial real estate | Construction, land & land development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 888 |
Year three | 0 | 4 |
Year four | 0 | 0 |
Year five | 0 | 20 |
Prior | 54 | 151 |
Revolvers | 0 | 0 |
Revolvers converted to term loans | 0 | 0 |
Loans, net of unearned income | 54 | 1,063 |
Substandard | Commercial real estate | Other commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 0 | 2,303 |
Year two | 1,590 | 2,615 |
Year three | 10,118 | 211 |
Year four | 396 | 0 |
Year five | 355 | 486 |
Prior | 725 | 4,395 |
Revolvers | 807 | 208 |
Revolvers converted to term loans | 0 | 0 |
Loans, net of unearned income | 13,991 | 10,218 |
Substandard | Residential real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 1,169 |
Year three | 552 | 384 |
Year four | 357 | 296 |
Year five | 69 | 272 |
Prior | 1,190 | 4,735 |
Revolvers | 0 | 246 |
Revolvers converted to term loans | 0 | 0 |
Loans, net of unearned income | 2,168 | 7,102 |
Substandard | Commercial, financial & agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 71 | 164 |
Year two | 712 | 1,872 |
Year three | 2,076 | 1,979 |
Year four | 1,804 | 190 |
Year five | 361 | 25 |
Prior | 272 | 165 |
Revolvers | 771 | 866 |
Revolvers converted to term loans | 7 | 22 |
Loans, net of unearned income | 6,074 | 5,283 |
Substandard | Consumer and other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Year one | 0 | 43 |
Year two | 60 | 20 |
Year three | 0 | 3 |
Year four | 1 | 5 |
Year five | 3 | 4 |
Prior | 4 | 9 |
Revolvers | 0 | 0 |
Revolvers converted to term loans | 0 | 0 |
Loans, net of unearned income | $ 68 | $ 84 |
Loans - Age Analysis of Past Du
Loans - Age Analysis of Past Due Loans and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | $ 1,865,574 | $ 1,883,470 |
Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 1,865,574 | 1,883,470 |
Nonaccrual Loans | 6,669 | 9,839 |
30-89 Days Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 6,813 | 6,069 |
90 Days or More Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 41 | 370 |
Total Accruing Loans Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 6,854 | 6,439 |
Current Loans | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 1,852,051 | 1,867,192 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 1,185,018 | 1,221,521 |
Commercial real estate | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 1,185,018 | 1,221,521 |
Nonaccrual Loans | 1,948 | 4,304 |
Commercial real estate | 30-89 Days Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 1,075 | 2,608 |
Commercial real estate | 90 Days or More Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 0 | 0 |
Commercial real estate | Total Accruing Loans Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 1,075 | 2,608 |
Commercial real estate | Current Loans | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 1,181,995 | 1,214,609 |
Commercial real estate | Construction, land & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 199,916 | 247,146 |
Commercial real estate | Construction, land & land development | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 199,916 | 247,146 |
Nonaccrual Loans | 54 | 85 |
Commercial real estate | Construction, land & land development | 30-89 Days Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 4 | 812 |
Commercial real estate | Construction, land & land development | 90 Days or More Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 0 | 0 |
Commercial real estate | Construction, land & land development | Total Accruing Loans Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 4 | 812 |
Commercial real estate | Construction, land & land development | Current Loans | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 199,858 | 246,249 |
Commercial real estate | Other commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 985,102 | 974,375 |
Commercial real estate | Other commercial real estate | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 985,102 | 974,375 |
Nonaccrual Loans | 1,894 | 4,219 |
Commercial real estate | Other commercial real estate | 30-89 Days Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 1,071 | 1,796 |
Commercial real estate | Other commercial real estate | 90 Days or More Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 0 | 0 |
Commercial real estate | Other commercial real estate | Total Accruing Loans Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 1,071 | 1,796 |
Commercial real estate | Other commercial real estate | Current Loans | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 982,137 | 968,360 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 360,847 | 356,234 |
Residential real estate | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 360,847 | 356,234 |
Nonaccrual Loans | 2,131 | 3,561 |
Residential real estate | 30-89 Days Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 4,999 | 2,503 |
Residential real estate | 90 Days or More Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 0 | 350 |
Residential real estate | Total Accruing Loans Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 4,999 | 2,853 |
Residential real estate | Current Loans | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 353,717 | 349,820 |
Commercial, financial & agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 242,205 | 242,756 |
Commercial, financial & agricultural | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 242,205 | 242,756 |
Nonaccrual Loans | 2,520 | 1,956 |
Commercial, financial & agricultural | 30-89 Days Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 488 | 775 |
Commercial, financial & agricultural | 90 Days or More Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 0 | 0 |
Commercial, financial & agricultural | Total Accruing Loans Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 488 | 775 |
Commercial, financial & agricultural | Current Loans | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 239,197 | 240,025 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 77,504 | 62,959 |
Consumer and other | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 77,504 | 62,959 |
Nonaccrual Loans | 70 | 18 |
Consumer and other | 30-89 Days Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 251 | 183 |
Consumer and other | 90 Days or More Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 41 | 20 |
Consumer and other | Total Accruing Loans Past Due | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | 292 | 203 |
Consumer and other | Current Loans | Legacy Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, net of unearned income | $ 77,142 | $ 62,738 |
Loans - Nonaccrual Loans (Detai
Loans - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Nonaccrual Loans with No Related ACL | $ 0 | $ 3,558 |
Nonaccrual Loans with a Related ACL | 6,669 | 6,281 |
Total Nonaccrual Loans | 6,669 | 9,839 |
Commercial real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Nonaccrual Loans with No Related ACL | 0 | 2,833 |
Nonaccrual Loans with a Related ACL | 1,948 | 1,471 |
Total Nonaccrual Loans | 1,948 | 4,304 |
Commercial real estate | Construction, land & land development | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Nonaccrual Loans with No Related ACL | 0 | 27 |
Nonaccrual Loans with a Related ACL | 54 | 58 |
Total Nonaccrual Loans | 54 | 85 |
Commercial real estate | Other commercial real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Nonaccrual Loans with No Related ACL | 0 | 2,806 |
Nonaccrual Loans with a Related ACL | 1,894 | 1,413 |
Total Nonaccrual Loans | 1,894 | 4,219 |
Residential real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Nonaccrual Loans with No Related ACL | 0 | 725 |
Nonaccrual Loans with a Related ACL | 2,131 | 2,836 |
Total Nonaccrual Loans | 2,131 | 3,561 |
Commercial, financial & agricultural | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Nonaccrual Loans with No Related ACL | 0 | 0 |
Nonaccrual Loans with a Related ACL | 2,520 | 1,956 |
Total Nonaccrual Loans | 2,520 | 1,956 |
Consumer and other | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Nonaccrual Loans with No Related ACL | 0 | 0 |
Nonaccrual Loans with a Related ACL | 70 | 18 |
Total Nonaccrual Loans | $ 70 | $ 18 |
Loans - Summary of Loans Modifi
Loans - Summary of Loans Modified Due to Financial Difficulty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Financing Receivable, Modified [Line Items] | ||
Total Loans | $ 377 | $ 693 |
Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 0 | 131 |
Payment Delay | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 377 | 377 |
Term Extension and Payment Delay | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 0 | 185 |
Commercial real estate | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 276 | |
Commercial real estate | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 131 | |
Commercial real estate | Payment Delay | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 0 | |
Commercial real estate | Term Extension and Payment Delay | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 145 | |
Commercial, financial & agricultural | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 377 | 417 |
Commercial, financial & agricultural | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 0 | 0 |
Commercial, financial & agricultural | Payment Delay | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | 377 | 377 |
Commercial, financial & agricultural | Term Extension and Payment Delay | ||
Financing Receivable, Modified [Line Items] | ||
Total Loans | $ 0 | $ 40 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Segregated by Class of Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 18,657 | $ 16,599 | $ 18,371 | $ 16,128 |
Charge-Offs | (757) | (170) | (1,625) | (446) |
Recoveries | 90 | 207 | 294 | 246 |
Provision for credit losses on loans | 816 | 430 | 1,766 | 1,191 |
Ending balance | 18,806 | 17,066 | 18,806 | 17,066 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (53) | |||
Commercial real estate | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 9,435 | 10,464 | 9,268 | 10,845 |
Charge-Offs | 0 | 0 | (20) | 0 |
Recoveries | 10 | 16 | 20 | 33 |
Provision for credit losses on loans | (754) | 534 | (577) | 618 |
Ending balance | 8,691 | 11,014 | 8,691 | 11,014 |
Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (482) | |||
Commercial real estate | Construction, land & land development | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 2,046 | 2,342 | 2,204 | 1,959 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 1 | 5 | 2 | 8 |
Provision for credit losses on loans | (752) | (66) | (911) | 166 |
Ending balance | 1,295 | 2,281 | 1,295 | 2,281 |
Commercial real estate | Construction, land & land development | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 148 | |||
Commercial real estate | Other commercial real estate | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 7,389 | 8,122 | 7,064 | 8,886 |
Charge-Offs | 0 | 0 | (20) | 0 |
Recoveries | 9 | 11 | 18 | 25 |
Provision for credit losses on loans | (2) | 600 | 334 | 452 |
Ending balance | 7,396 | 8,733 | 7,396 | 8,733 |
Commercial real estate | Other commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (630) | |||
Residential real estate | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 5,327 | 4,112 | 5,105 | 2,354 |
Charge-Offs | (270) | 0 | (340) | 0 |
Recoveries | 39 | 26 | 207 | 37 |
Provision for credit losses on loans | 894 | (1,496) | 1,018 | (802) |
Ending balance | 5,990 | 2,642 | 5,990 | 2,642 |
Residential real estate | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,053 | |||
Commercial, financial & agricultural | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 2,020 | 1,657 | 2,110 | 2,709 |
Charge-Offs | (356) | (170) | (1,014) | (443) |
Recoveries | 37 | 160 | 59 | 167 |
Provision for credit losses on loans | 314 | 1,337 | 860 | 1,241 |
Ending balance | 2,015 | 2,984 | 2,015 | 2,984 |
Commercial, financial & agricultural | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (690) | |||
Consumer and other | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,875 | 366 | 1,888 | 220 |
Charge-Offs | (131) | 0 | (251) | (3) |
Recoveries | 4 | 5 | 8 | 9 |
Provision for credit losses on loans | 362 | 55 | 465 | 134 |
Ending balance | $ 2,110 | $ 426 | $ 2,110 | 426 |
Consumer and other | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 66 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Receivables [Abstract] | |
Supportable forecast period | 1 year |
Outstanding balance of high risk loans, minimum | $ 500 |
Allowance for Credit Losses - U
Allowance for Credit Losses - Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 18,657 | $ 16,599 | $ 18,371 | $ 16,128 |
Ending balance | 18,806 | 17,066 | 18,806 | 17,066 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (53) | |||
Unfunded Loan Commitment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,425 | 1,800 | 1,375 | 0 |
Change in unfunded commitments | (166) | (230) | (116) | (91) |
Ending balance | 1,259 | 1,570 | 1,259 | 1,570 |
Unfunded Loan Commitment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 1,661 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 26, 2023 USD ($) | Jun. 23, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) interest_rate_swap | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) interest_rate_swap | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Number of interest rate swaps | interest_rate_swap | 2 | 2 | ||||
Derivative instruments | $ 531,000 | $ 531,000 | ||||
Amount of gain reclassified from OCI to interest expense, net of tax | 177 | $ 9 | 351 | $ 9 | ||
Interest Rate Swap | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of gain reclassified from OCI to interest expense, net of tax | $ 177 | $ 9 | $ 351 | $ 9 | ||
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, term | 3 years | 5 years | ||||
Derivative, notional amount | $ 25,000 | $ 25,000 |
Derivatives - Summary of Gain (
Derivatives - Summary of Gain (Loss) on Interest Rate Swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from OCI to interest expense, net of tax | $ 177 | $ 9 | $ 351 | $ 9 |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from OCI to interest expense, net of tax | 177 | 9 | 351 | 9 |
Interest Rate Swap | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain recognized in OCI, net of tax | 126 | 199 | 722 | 199 |
Amount of gain reclassified from OCI to interest expense, net of tax | $ 140 | $ 7 | $ 277 | $ 7 |
Borrowings - Summary of Other B
Borrowings - Summary of Other Borrowed Money (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank advances | $ 205,000 | $ 175,000 |
Other borrowings | 62,992 | 63,445 |
Total borrowings | $ 267,992 | $ 238,445 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Lendable collateral of loans | $ 213,700,000 | |
Remaining credit available | 546,300,000 | |
Subordinated debt | 24,200,000 | $ 24,200,000 |
Line of credit, current borrowing capacity | 64,500,000 | |
Outstanding balance on line of credit | 0 | |
Federal Reserve Bank of Atlanta | ||
Debt Instrument [Line Items] | ||
Line of credit, current borrowing capacity | 107,800,000 | |
Outstanding balance on line of credit | $ 0 | |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 5.25% | |
Basis spread on variable rate | 2.65% | |
Long-term debt | $ 38,800,000 | $ 39,200,000 |
Subordinated Debt, Fixed Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 5 years | |
Subordinated Debt, Variable Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 5 years | |
Minimum | Federal Home Loan Bank Advances | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.69% | |
Maximum | Federal Home Loan Bank Advances | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 5.57% |
Borrowings - Schedule of Aggreg
Borrowings - Schedule of Aggregate Stated Maturities (Details) - Other borrowings $ in Thousands | Jun. 30, 2024 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2024 | $ 70,000 |
2025 | 0 |
2026 | 25,000 |
2027 | 15,000 |
2028 | 65,000 |
2029 and After | 92,992 |
Long-term debt | $ 267,992 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator | ||||
Net income available to common stockholders | $ 5,474 | $ 5,302 | $ 10,807 | $ 10,345 |
Weighted average number of common shares | ||||
Outstanding for basic earnings per common share (in shares) | 17,551,007 | 17,580,557 | 17,555,609 | 17,588,081 |
Weighted-average number of shares outstanding for diluted earnings per common share (in shares) | 17,551,007 | 17,580,557 | 17,555,609 | 17,588,081 |
Earnings per share - basic (in dollars per share) | $ 0.31 | $ 0.30 | $ 0.62 | $ 0.59 |
Earnings per share - diluted (in dollars per share) | $ 0.31 | $ 0.30 | $ 0.62 | $ 0.59 |
Commitments and Contingencies -
Commitments and Contingencies - Financial Instruments Outstanding Whose Contract Amount Represents Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Commitments [Line Items] | ||
Letters of credit | $ 5,318 | $ 5,656 |
Loan Origination Commitments | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 338,106 | $ 362,878 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Letter of credit, expiration date period | 1 year |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Investment securities available-for-sale | $ 376,580 | $ 407,382 |
Investment securities held-to-maturity | 393,359 | $ 405,576 |
Liabilities | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |
Carrying Value | ||
Assets | ||
Cash and short-term investments | 82,002 | $ 83,322 |
Investment securities available-for-sale | 376,580 | 407,382 |
Investment securities held-to-maturity | 442,945 | 449,031 |
Other investments | 18,491 | 16,868 |
Loans held for sale | 40,132 | 27,958 |
Loans, net | 1,846,768 | 1,865,099 |
Derivative instruments | 531 | |
Liabilities | ||
Deposits | 2,460,225 | 2,544,790 |
Federal Home Loan Bank advances | 205,000 | 175,000 |
Other borrowings | 62,992 | 63,445 |
Derivative instruments | 438 | |
Estimated Fair Value | ||
Assets | ||
Cash and short-term investments | 82,002 | 83,322 |
Investment securities available-for-sale | 376,580 | 407,382 |
Investment securities held-to-maturity | 393,359 | 405,576 |
Other investments | 18,491 | 16,868 |
Loans, net | 1,701,073 | 1,699,870 |
Liabilities | ||
Deposits | 2,454,409 | 2,538,477 |
Federal Home Loan Bank advances | 207,372 | 176,022 |
Other borrowings | 50,554 | 51,056 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Cash and short-term investments | 82,002 | 83,322 |
Investment securities available-for-sale | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Derivative instruments | 0 | |
Liabilities | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Other borrowings | 0 | 0 |
Derivative instruments | 0 | |
Estimated Fair Value | Level 2 | ||
Assets | ||
Cash and short-term investments | 0 | 0 |
Investment securities available-for-sale | 367,207 | 396,568 |
Investment securities held-to-maturity | 393,359 | 405,576 |
Other investments | 18,491 | 16,868 |
Loans held for sale | 40,132 | 27,958 |
Loans, net | 0 | 0 |
Derivative instruments | 531 | |
Liabilities | ||
Deposits | 2,454,409 | 2,538,477 |
Federal Home Loan Bank advances | 207,372 | 176,022 |
Other borrowings | 50,554 | 51,056 |
Derivative instruments | 438 | |
Estimated Fair Value | Level 3 | ||
Assets | ||
Cash and short-term investments | 0 | 0 |
Investment securities available-for-sale | 9,373 | 10,814 |
Investment securities held-to-maturity | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 1,701,073 | 1,699,870 |
Derivative instruments | 0 | |
Liabilities | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Other borrowings | $ 0 | 0 |
Derivative instruments | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | ||||
Fair value input, discount amount | 10% | 10% | ||
Transfers between levels | $ 0 | $ 0 | $ (2,425,000) | $ (380,000) |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments and Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Investment securities available-for-sale | $ 376,580 | $ 407,382 |
Recurring | ||
Assets | ||
Investment securities available-for-sale | 376,580 | 407,382 |
Loans held for sale | 40,132 | 27,958 |
Derivative instruments | 531 | |
Total assets | 417,243 | 435,340 |
Liabilities | ||
Derivative instruments | 438 | |
Total liabilities | 438 | |
Recurring | U.S. treasury securities | ||
Assets | ||
Investment securities available-for-sale | 7,058 | 498 |
Recurring | U.S. agency securities | ||
Assets | ||
Investment securities available-for-sale | 3,848 | 4,139 |
Recurring | Asset backed securities | ||
Assets | ||
Investment securities available-for-sale | 21,910 | 24,630 |
Recurring | State, county & municipal securities | ||
Assets | ||
Investment securities available-for-sale | 97,165 | 109,036 |
Recurring | Corporate debt securities | ||
Assets | ||
Investment securities available-for-sale | 46,724 | 47,390 |
Recurring | Mortgage-backed securities | ||
Assets | ||
Investment securities available-for-sale | 199,875 | 221,689 |
Recurring | Level 1 | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative instruments | 0 | |
Total assets | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | |
Total liabilities | 0 | |
Recurring | Level 1 | U.S. treasury securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | U.S. agency securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Asset backed securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | State, county & municipal securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Corporate debt securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Mortgage-backed securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Investment securities available-for-sale | 367,207 | 396,568 |
Loans held for sale | 40,132 | 27,958 |
Derivative instruments | 531 | |
Total assets | 407,870 | 424,526 |
Liabilities | ||
Derivative instruments | 438 | |
Total liabilities | 438 | |
Recurring | Level 2 | U.S. treasury securities | ||
Assets | ||
Investment securities available-for-sale | 7,058 | 498 |
Recurring | Level 2 | U.S. agency securities | ||
Assets | ||
Investment securities available-for-sale | 3,848 | 4,139 |
Recurring | Level 2 | Asset backed securities | ||
Assets | ||
Investment securities available-for-sale | 21,910 | 24,630 |
Recurring | Level 2 | State, county & municipal securities | ||
Assets | ||
Investment securities available-for-sale | 97,165 | 109,036 |
Recurring | Level 2 | Corporate debt securities | ||
Assets | ||
Investment securities available-for-sale | 40,166 | 40,465 |
Recurring | Level 2 | Mortgage-backed securities | ||
Assets | ||
Investment securities available-for-sale | 197,060 | 217,800 |
Recurring | Level 3 | ||
Assets | ||
Investment securities available-for-sale | 9,373 | 10,814 |
Loans held for sale | 0 | 0 |
Derivative instruments | 0 | |
Total assets | 9,373 | 10,814 |
Liabilities | ||
Derivative instruments | 0 | |
Total liabilities | 0 | |
Recurring | Level 3 | U.S. treasury securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | U.S. agency securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Asset backed securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | State, county & municipal securities | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Corporate debt securities | ||
Assets | ||
Investment securities available-for-sale | 6,558 | 6,925 |
Recurring | Level 3 | Mortgage-backed securities | ||
Assets | ||
Investment securities available-for-sale | 2,815 | 3,889 |
Nonrecurring | ||
Assets | ||
Collateral dependent loans | 1,427 | 1,410 |
Other real estate owned | 582 | 448 |
Total assets | 2,009 | 1,858 |
Nonrecurring | Level 1 | ||
Assets | ||
Collateral dependent loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Nonrecurring | Level 2 | ||
Assets | ||
Collateral dependent loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Nonrecurring | Level 3 | ||
Assets | ||
Investment securities available-for-sale | 9,373 | 10,814 |
Collateral dependent loans | 1,427 | 1,410 |
Other real estate owned | 582 | 448 |
Total assets | $ 2,009 | $ 1,858 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments and Fair Value Measurements - Quantitative Information for Financial Instruments Measured at Fair Value (Details) $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | $ 582 | $ 448 |
Investment securities available-for-sale | 376,580 | 407,382 |
Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans | 1,427 | 1,410 |
Level 3 | Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans | 1,427 | 1,410 |
Other real estate owned | 582 | 448 |
Investment securities available-for-sale | $ 9,373 | $ 10,814 |
Level 3 | Nonrecurring | Measurement Input, Appraised Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent impaired loans, weighted average discount range | 0.10 | 0.10 |
Other real estate owned, weighted average discount range | 0.10 | 0.10 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments and Fair Value Measurements - Fair Value Measurement Using Significant Unobservable Inputs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning | $ 7,145,000 | $ 10,814,000 | ||
Additions | 2,588,000 | 2,588,000 | ||
Redemptions/Payments | (338,000) | (3,251,000) | ||
Fair value adjustments | (22,000) | 1,647,000 | ||
Transfers between levels | 0 | $ 0 | (2,425,000) | $ (380,000) |
Balance, Ending | $ 9,373,000 | $ 9,373,000 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) employee | Jun. 30, 2023 USD ($) employee | Jun. 30, 2024 USD ($) employee | Jun. 30, 2023 USD ($) employee | Dec. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Net Interest Income | $ 18,409 | $ 19,181 | $ 37,063 | $ 39,749 | |
Provision for Credit Losses | 650 | 200 | 1,650 | 1,100 | |
Noninterest Income | 9,497 | 8,952 | 18,984 | 16,611 | |
Noninterest Expenses | 20,330 | 21,432 | 40,727 | 42,597 | |
Income Taxes | 1,452 | 1,199 | 2,863 | 2,318 | |
Net income | 5,474 | $ 5,302 | 10,807 | $ 10,345 | |
Segment assets | $ 3,007,907 | $ 3,007,907 | $ 3,053,422 | ||
Full time employees | employee | 460 | 466 | 460 | 466 | |
Bank | |||||
Segment Reporting Information [Line Items] | |||||
Net Interest Income | $ 17,217 | $ 18,562 | $ 34,769 | $ 38,700 | |
Provision for Credit Losses | 96 | 60 | 551 | 960 | |
Noninterest Income | 5,086 | 5,433 | 10,766 | 10,351 | |
Noninterest Expenses | 17,135 | 17,650 | 34,264 | 35,462 | |
Income Taxes | 1,060 | 1,157 | 2,226 | 2,312 | |
Net income | 4,012 | $ 5,128 | 8,494 | $ 10,317 | |
Segment assets | $ 2,889,013 | $ 2,889,013 | 2,956,121 | ||
Full time employees | employee | 385 | 383 | 385 | 383 | |
Mortgage Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net Interest Income | $ 50 | $ 31 | $ 90 | $ 34 | |
Provision for Credit Losses | 0 | 0 | 0 | 0 | |
Noninterest Income | 1,456 | 2,015 | 2,621 | 3,292 | |
Noninterest Expenses | 1,326 | 1,971 | 2,544 | 3,683 | |
Income Taxes | 42 | 14 | 43 | (72) | |
Net income | 138 | $ 61 | 124 | $ (285) | |
Segment assets | $ 19,004 | $ 19,004 | 7,890 | ||
Full time employees | employee | 42 | 51 | 42 | 51 | |
Small Business Specialty Lending Division | |||||
Segment Reporting Information [Line Items] | |||||
Net Interest Income | $ 1,142 | $ 588 | $ 2,204 | $ 1,015 | |
Provision for Credit Losses | 554 | 140 | 1,099 | 140 | |
Noninterest Income | 2,955 | 1,504 | 5,597 | 2,968 | |
Noninterest Expenses | 1,869 | 1,811 | 3,919 | 3,452 | |
Income Taxes | 350 | 28 | 594 | 78 | |
Net income | 1,324 | $ 113 | 2,189 | $ 313 | |
Segment assets | $ 99,890 | $ 99,890 | $ 89,411 | ||
Full time employees | employee | 33 | 32 | 33 | 32 |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details) $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Total Capital to Risk-Weighted Assets | ||
Actual Amount | $ 342,134 | $ 337,159 |
Actual Ratio | 0.1617 | 0.1547 |
For Capital Adequacy Purposes, Amount | $ 169,269 | $ 174,355 |
For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 211,586 | $ 217,944 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.1000 |
Tier 1 Capital to Risk-Weighted Assets | ||
Actual Amount | $ 283,305 | $ 278,196 |
Actual Ratio | 0.1339 | 0.1277 |
For Capital Adequacy Purposes, Amount | $ 126,948 | $ 130,711 |
For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 169,264 | $ 174,281 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital to Risk-Weighted Assets | ||
Actual Amount | $ 259,076 | $ 253,967 |
Actual Ratio | 0.1225 | 0.1166 |
For Capital Adequacy Purposes, Amount | $ 95,171 | $ 98,015 |
For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 137,469 | $ 141,577 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital to Average Assets | ||
Actual Amount | $ 283,305 | $ 278,196 |
Actual Ratio | 0.0944 | 0.0917 |
For Capital Adequacy Purposes, Amount | $ 120,044 | $ 121,350 |
For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 150,056 | $ 151,688 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0500 |
Colony Bank | ||
Total Capital to Risk-Weighted Assets | ||
Actual Amount | $ 312,286 | $ 300,497 |
Actual Ratio | 0.1480 | 0.1385 |
For Capital Adequacy Purposes, Amount | $ 168,803 | $ 173,572 |
For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 211,004 | $ 216,965 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.1000 |
Tier 1 Capital to Risk-Weighted Assets | ||
Actual Amount | $ 292,220 | $ 280,751 |
Actual Ratio | 0.1385 | 0.1294 |
For Capital Adequacy Purposes, Amount | $ 126,594 | $ 130,178 |
For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 168,791 | $ 173,571 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital to Risk-Weighted Assets | ||
Actual Amount | $ 292,220 | $ 280,751 |
Actual Ratio | 0.1385 | 0.1294 |
For Capital Adequacy Purposes, Amount | $ 94,945 | $ 97,634 |
For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 137,143 | $ 141,026 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital to Average Assets | ||
Actual Amount | $ 292,220 | $ 280,751 |
Actual Ratio | 0.0976 | 0.0928 |
For Capital Adequacy Purposes, Amount | $ 119,762 | $ 121,013 |
For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 149,703 | $ 151,267 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0500 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jul. 24, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Subsequent Event [Line Items] | |||||
Dividends declared per share (in dollars per share) | $ 0.1125 | $ 0.1100 | $ 0.2250 | $ 0.2200 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per share (in dollars per share) | $ 0.1125 |
Uncategorized Items - cban-2024
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |