Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38888 | |
Entity Registrant Name | Red River Bancshares, Inc. | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 72-1412058 | |
Entity Address, Address Line One | 1412 Centre Court Drive | |
Entity Address, Address Line Two | Suite 501 | |
Entity Address, City or Town | Alexandria | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 71301 | |
City Area Code | 318 | |
Local Phone Number | 561-4000 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | RRBI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business Category | false | |
Entity Emerging Growth Category | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,186,950 | |
Entity Central Index Key | 0001071236 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Filer Category | Accelerated Filer |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 34,491 | $ 37,824 |
Interest-bearing deposits in other banks | 194,727 | 240,568 |
Total Cash and Cash Equivalents | 229,218 | 278,392 |
Securities available-for-sale, at fair value | 611,794 | 614,407 |
Securities held-to-maturity, at amortized cost | 149,417 | 151,683 |
Equity securities, at fair value | 4,010 | 9,979 |
Nonmarketable equity securities | 3,506 | 3,478 |
Loans held for sale | 2,046 | 518 |
Loans held for investment | 1,921,850 | 1,916,267 |
Allowance for credit losses | (20,854) | (20,628) |
Premises and equipment, net | 55,065 | 54,383 |
Accrued interest receivable | 8,397 | 8,830 |
Bank-owned life insurance | 28,954 | 28,775 |
Intangible assets | 1,546 | 1,546 |
Right-of-use assets | 4,011 | 4,137 |
Other assets | 31,622 | 30,919 |
Total Assets | 3,030,582 | 3,082,686 |
LIABILITIES | ||
Noninterest-bearing deposits | 1,060,042 | 1,090,539 |
Interest-bearing deposits | 1,671,343 | 1,708,397 |
Total Deposits | 2,731,385 | 2,798,936 |
Accrued interest payable | 2,433 | 1,563 |
Lease liabilities | 4,136 | 4,258 |
Accrued expenses and other liabilities | 15,988 | 12,176 |
Total Liabilities | 2,753,942 | 2,816,933 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, no par value: Authorized - 1,000,000 shares; None Issued and Outstanding | 0 | 0 |
Common stock, no par value: Authorized - 30,000,000 shares; Issued and Outstanding - 7,177,650 and 7,183,915 shares, respectively | 59,788 | 60,050 |
Additional paid-in capital | 2,157 | 2,088 |
Retained earnings | 283,236 | 274,781 |
Accumulated other comprehensive income (loss) | (68,541) | (71,166) |
Total Stockholders’ Equity | 276,640 | 265,753 |
Total Liabilities and Stockholders’ Equity | $ 3,030,582 | $ 3,082,686 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares, issued (in shares) | 7,177,650 | 7,183,915 |
Common stock, shares, outstanding (in shares) | 7,177,650 | 7,183,915 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
INTEREST AND DIVIDEND INCOME | ||
Interest and fees on loans | $ 21,764 | $ 16,770 |
Interest on securities | 3,567 | 2,962 |
Interest on federal funds sold | 635 | 25 |
Interest on deposits in other banks | 1,738 | 251 |
Dividends on stock | 28 | 1 |
Total Interest and Dividend Income | 27,732 | 20,009 |
INTEREST EXPENSE | ||
Interest on deposits | 4,823 | 1,281 |
Total Interest Expense | 4,823 | 1,281 |
Net Interest Income | 22,909 | 18,728 |
Provision for credit losses | 0 | 150 |
Net Interest Income After Provision for Credit Losses | 22,909 | 18,578 |
NONINTEREST INCOME | ||
Service charges on deposit accounts | 1,393 | 1,308 |
Debit card income, net | 934 | 936 |
Mortgage loan income | 275 | 1,127 |
Brokerage income | 807 | 775 |
Loan and deposit income | 477 | 371 |
Bank-owned life insurance income | 179 | 172 |
Gain (Loss) on equity securities | 31 | (365) |
Gain (Loss) on sale and call of securities | 0 | 39 |
SBIC income | 180 | 20 |
Other income (loss) | 64 | 19 |
Total Noninterest Income | 4,340 | 4,402 |
OPERATING EXPENSES | ||
Personnel expenses | 9,000 | 8,452 |
Occupancy and equipment expenses | 1,717 | 1,492 |
Technology expenses | 748 | 771 |
Advertising | 281 | 219 |
Other business development expenses | 436 | 303 |
Data processing expense | 400 | 316 |
Other taxes | 686 | 636 |
Loan and deposit expenses | 205 | 130 |
Legal and professional expenses | 516 | 418 |
Regulatory assessment expenses | 406 | 250 |
Other operating expenses | 1,093 | 1,075 |
Total Operating Expenses | 15,488 | 14,062 |
Income Before Income Tax Expense | 11,761 | 8,918 |
Income tax expense | 2,163 | 1,526 |
Net Income | $ 9,598 | $ 7,392 |
EARNINGS PER SHARE | ||
Basic (in dollars per share) | $ 1.34 | $ 1.03 |
Diluted (in dollars per share) | $ 1.33 | $ 1.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 9,598 | $ 7,392 |
Other comprehensive income (loss): | ||
Unrealized net gain (loss) on securities arising during period | 2,957 | (50,652) |
Tax effect | (620) | 10,637 |
(Gain) Loss on sale and call of securities included in net income | 0 | (39) |
Tax effect | 0 | 8 |
Change in unrealized net loss on securities transferred to held-to-maturity | 365 | 0 |
Tax effect | (77) | 0 |
Total other comprehensive income (loss) | 2,625 | (40,046) |
Comprehensive Income (Loss) | $ 12,223 | $ (32,654) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Impact of ASC 326 Adoption | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained Earnings Impact of ASC 326 Adoption | Accumulated Other Comprehensive Income (Loss) |
Balance at the beginning of period (in shares) at Dec. 31, 2021 | 7,180,155 | ||||||
Balance in the beginning of period at Dec. 31, 2021 | $ 298,150 | $ 60,233 | $ 1,814 | $ 239,876 | $ (3,773) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 7,392 | 7,392 | |||||
Stock incentive plan | 63 | 63 | |||||
Issuance of shares of common stock as board compensation (in shares) | 675 | ||||||
Issuance of shares of common stock as board compensation | $ 35 | $ 35 | |||||
Repurchase of common stock under stock repurchase program (in shares) | (6,795) | (4,465) | |||||
Repurchase of common stock under stock repurchase program | $ (218) | $ (218) | |||||
Cash dividend | (502) | (502) | |||||
Other comprehensive income (loss) | (40,046) | (40,046) | |||||
Balance at the end of period (in shares) at Mar. 31, 2022 | 7,176,365 | ||||||
Balance at the end of period at Mar. 31, 2022 | 264,874 | $ 60,050 | 1,877 | 246,766 | (43,819) | ||
Balance at the beginning of period (in shares) at Dec. 31, 2021 | 7,180,155 | ||||||
Balance in the beginning of period at Dec. 31, 2021 | $ 298,150 | $ 60,233 | 1,814 | 239,876 | (3,773) | ||
Balance at the end of period (in shares) at Dec. 31, 2022 | 7,183,915 | 7,183,915 | |||||
Balance at the end of period at Dec. 31, 2022 | $ 265,753 | $ (569) | $ 60,050 | 2,088 | 274,781 | $ (569) | (71,166) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||
Net income | $ 9,598 | 9,598 | $ (569) | ||||
Stock incentive plan | 69 | 69 | |||||
Forfeiture of restricted shares of common stock (in shares) | (1,130) | ||||||
Issuance of shares of common stock as board compensation (in shares) | 1,660 | ||||||
Issuance of shares of common stock as board compensation | 84 | $ 84 | |||||
Repurchase of common stock under stock repurchase program (in shares) | (6,795) | ||||||
Repurchase of common stock under stock repurchase program | (346) | $ (346) | |||||
Cash dividend | (574) | (574) | |||||
Other comprehensive income (loss) | $ 2,625 | 2,625 | |||||
Balance at the end of period (in shares) at Mar. 31, 2023 | 7,177,650 | 7,177,650 | |||||
Balance at the end of period at Mar. 31, 2023 | $ 276,640 | $ 59,788 | $ 2,157 | $ 283,236 | $ (68,541) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.08 | $ 0.07 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 9,598 | $ 7,392 | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation | 546 | 502 | ||
Amortization | 174 | 164 | ||
Share-based compensation earned | 69 | 63 | ||
Share-based board compensation earned | 10 | 20 | ||
(Gain) Loss on other assets owned | 1 | 26 | ||
Net (accretion) amortization on securities AFS | 525 | 600 | ||
Net (accretion) amortization on securities HTM | (356) | 0 | ||
(Gain) Loss on sale and call of securities | 0 | (39) | ||
(Gain) Loss on equity securities | (31) | 365 | ||
Provision for credit losses | 0 | 150 | $ 1,750 | |
Deferred income tax (benefit) expense | (351) | (200) | ||
Net (increase) decrease in loans HFS | (1,528) | (2,351) | ||
Net (increase) decrease in accrued interest receivable | 433 | (409) | ||
Net (increase) decrease in BOLI | (179) | (172) | ||
Net increase (decrease) in accrued interest payable | 870 | 19 | ||
Net increase (decrease) in accrued income taxes payable | 2,515 | 1,802 | ||
Other operating activities, net | 1,034 | 895 | ||
Net cash provided by (used in) operating activities | 13,330 | 8,827 | ||
Activity in securities AFS: | ||||
Maturities, principal repayments, and calls | 13,800 | 29,810 | ||
Purchases | (8,755) | (232,688) | ||
Activity in securities HTM: | ||||
Maturities, principal repayments, and calls | 2,622 | 0 | ||
Sale of equity securities | $ 6,000 | 6,000 | 0 | |
Purchase of nonmarketable equity securities | (28) | (1) | ||
Capital contribution in partnerships | (786) | 0 | ||
Net (increase) decrease in loans HFI | (5,657) | (57,276) | ||
Purchases of premises and equipment | (1,229) | (3,077) | ||
Net cash provided by (used in) investing activities | 5,967 | (263,232) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Net increase (decrease) in deposits | (67,551) | 17,380 | ||
Repurchase of common stock | (346) | (218) | ||
Cash dividends | (574) | (502) | ||
Net cash provided by (used in) financing activities | (68,471) | 16,660 | ||
Net change in cash and cash equivalents | (49,174) | (237,745) | ||
Cash and cash equivalents - beginning of period | 278,392 | 784,864 | 784,864 | |
Cash and cash equivalents - end of period | $ 229,218 | 229,218 | 547,119 | $ 278,392 |
Cash paid during the year for: | ||||
Interest | 3,953 | 1,263 | ||
SUPPLEMENTAL INFORMATION FOR NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Assets acquired in settlement of loans | $ 22 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with GAAP for interim financial information, general practices within the financial services industry, and instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all of the information or footnotes required by GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the entire fiscal year. These statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Certain prior period amounts have been reclassified to conform to the current period presentation. These changes in presentation did not have a material impact on the Company’s financial condition or results of operations. Critical Accounting Policies and Estimates In preparing the financial statements, the Company is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s financial condition, results of operations, comprehensive income, changes in stockholders’ equity, and cash flows for the interim period presented. These adjustments are of a normal recurring nature and include appropriate estimated provisions. On January 1, 2023, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which significantly changed the impairment model for most financial assets that are measured at amortized cost, including loans HFI, securities, and unfunded commitments, from an incurred loss model to an expected loss model. Accounting policies related to the allowance for credit losses are considered critical as these policies involve considerable subjective judgment and estimation by management. Changes in factors and forecasts used in evaluating the overall loan portfolio may result in significant changes in the allowance for credit losses and related provision expense in future periods. The allowance level is influenced by loan portfolio growth, changes in the quality and composition of the loan portfolio, the level of nonperforming loans, delinquency and charge-off trends, current economic conditions, forecasted information, and other conditions influencing loss expectations. Changes to the assumptions in the model in future periods could have a material impact on the Company’s Consolidated Financial Statements. Refer to “- Accounting Standards Adopted in 2023” for a detailed discussion on the Company’s methodologies for estimating expected credit losses. Accounting Standards Adopted in 2023 ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. On January 1, 2023 , the Company adopted ASC 326 , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans HFI, securities HTM, and unfunded commitments. In addition, ASC 326 made changes to the accounting for securities AFS, which requires credit losses to be presented as an allowance rather than as a write-down on securities AFS that management does not intend to sell or believes that it is more likely than not that the Company will have the ability to hold until each security has recovered its cost basis. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and unfunded commitments. Results for reporting periods beginning after January 1, 2023, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a $569,000, net of tax, decrease to stockholders’ equity as of January 1, 2023, for the cumulative effect of adopting ASC 326 . The transition adjustment included a $278,000 increase to the December 31, 2022 allowance for loan losses and established a $442,000 reserve for unfunded commitments as presented in the following table. (in thousands) December 31, 2022 Impact of ASC 326 Adoption January 1, 2023 Real estate: Commercial real estate $ 7,720 $ 876 $ 8,596 One-to-four family residential 5,682 1,231 6,913 Construction and development 1,654 (444) 1,210 Commercial and industrial 4,350 (822) 3,528 Tax-exempt 751 (427) 324 Consumer 471 (136) 335 Total $ 20,628 $ 278 $ 20,906 Reserve for unfunded commitments $ — $ 442 $ 442 Loans Held for Investment Loans that management has the intent and ability to hold, for the foreseeable future or until maturity or payoff, are reported at amortized cost. Amortized cost is the principal balance outstanding, net of deferred fees and costs. Accrued interest receivable is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on loans is discontinued and placed on nonaccrual status at the time the loan is 90 days past due unless the loan is well secured and in process of collection. Loans, excluding credit cards, are charged-off to the extent management is relatively certain that principal and interest will be uncollectible. Credit card loans continue to accrue interest until they are charged-off no later than 120 days past due unless the loan is in the process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed on nonaccrual status, uncollected accrued interest is reversed, reducing interest income, and future income accrual is discontinued. Subsequent payments, if any, of interest and fees are applied as reductions to the loan’s outstanding principal balance. Once the principal balance of a loan placed on nonaccrual status has been fully recovered, subsequent payments received are recognized as interest income on a cash basis. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses - Loans The ACL is a valuation account that is deducted from the amortized cost basis of loans HFI to present management’s best estimate of the expected credit losses to be collected over the lifetime of the loans. The amount of the ACL should not be interpreted as an indication that charge-offs in future periods will necessarily occur in those amounts, or at all. Loans are charged-off against the allowance when management is relatively certain that principal and interest will be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. This reasonable and supportable forecast period is currently one year and incorporates Company and peer historical losses. After the forecast period, the Company reverts to an average historical loss rate over a two-year period. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are 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 economic conditions, such as changes in unemployment rates, property values, or other relevant factors. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in our historic loss factors. The determination of the amount of allowance involves a high degree of judgement and subjectivity. The ACL is measured on a collective pool basis when similar risk characteristics and risk profiles exist. The Company utilizes cohort loss rate (static pool analysis) and remaining life loss rate methodologies to estimate the quantitative portion of the ACL for loan pools. The cohort loss rate methodology tracks a closed pool of loans over their remaining lives to determine their loss behavior. The remaining life loss rate methodology takes the calculated loss rate and applies that rate to a pool of loans on a periodic basis based on the remaining life expectation of that pool. The portfolio pools are based primarily on regulatory call report codes. These pools and certain of the inherent risks in the Company’s loan portfolio are summarized in the following table. Loan Pool Risk Characteristics Residential construction This category consists of loans to residential developers and to individual clients for construction of single-family homes. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, and change in market trends. Commercial construction This category consists of loans to small and medium-sized businesses to construct owner occupied facilities and developers of commercial real estate investment properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, change in market trends, and the ability to sell the property upon completion. Farmland This category consists of loans secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing/pastureland, and timberland. Risks inherent in this portfolio pool include adverse changes in climate, fluctuations in feed and livestock prices, and changes in property values. Home equity loans and lines This category consists of home equity loans and lines of credit. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment. Secured closed-liens This category consists of loans secured by primary and secondary liens on residential real estate. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment. Generally, these loans are for longer terms than home equity loans and lines of credit. Multifamily This category consists of loans secured by apartment or residential buildings with five or more units used to accommodate households on a temporary or permanent basis. Risks inherent in this portfolio pool include local unemployment rates, changes in the local economy, and factors that would impact property values. Owner occupied commercial real estate This category consists of loans to established operating companies and secured by owner occupied offices and industrial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, environmental contamination, and the quality of the borrower’s management. Non-owner occupied commercial real estate This category consists of loans to developers and other persons or entities and secured by non-owner occupied commercial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, tenant vacancy rates, environmental contamination, and the quality of the borrower’s management. Commercial and industrial This category consists of secured and unsecured loans to purchase capital equipment, agriculture operating loans, and other business loans for working capital and operating purposes. Secured loans are primarily secured by accounts receivable, inventory, and other business assets. The performance of commercial and industrial loans may be adversely affected by, among other factors, conditions specific to the relevant industry, fluctuations in the value of the collateral, and individual performance factors related to the borrower such as the quality of the borrower’s management. Consumer This category consists of loans to individuals for household, family, and other personal use. Risks inherent in this portfolio pool include the borrower’s financial condition, local unemployment rates, local economic conditions and the interest rate environment. Tax-exempt This category consists of loans to political subdivisions primarily of the State of Louisiana including parishes, municipalities, utility districts, school districts, and development authorities. These loans undergo the same underwriting as any of our other loans and are typically paid for by ad valorem taxes or specific revenue sources. Other loans This category consists of loans not included in any other category. Risks inherent in this portfolio pool include local unemployment rates, local economic conditions, and the interest rate environment. Loans that do not share similar risk characteristics are evaluated on an individual basis and excluded from the collective evaluation. For loans evaluated on an individual basis that are collateral dependent, the specific allowance is estimated by calculating the difference between the fair value of the underlying collateral less estimated selling costs and the Bank’s exposure. If the loan is not collateral dependent, the discounted cash flow methodology is used. Either of these determinations are highly subjective and based on information available at the time of valuation. Reserve for Unfunded Commitments Commitments to extend credit are agreements to lend to a customer if all conditions of the commitment have been met. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The reserve for unfunded commitments is recorded within accrued interest payable on the consolidated balance sheets, and the related provision is recorded in other operating expenses on the consolidated statements of income. 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 loss rates computed for each pool and expected pool-level funding rates are applied to the related unfunded commitment balance to obtain the reserve amount. Securities AFS ASC 326 requires the Company to measure expected credit losses on securities AFS. Impairment is evaluated when there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management evaluates each security by considering the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, volatility of the security’s fair value, and historical loss information for financial assets secured with similar collateral, along with other factors. 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, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the investments. If a decline in the fair value related to creditworthiness or other factors is determined, an ACL will be calculated using a discounted cash flow method, whereby management will compare the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses in the consolidated statements of income. Accrued interest receivable is excluded from the amortized cost basis in measuring expected credit losses on the investment securities and no ACL is recorded on accrued interest receivable. The Company’s current securities AFS portfolio consists of U.S. Treasury securities, mortgage-backed securities, U.S. agency securities, and municipal bonds. The Company’s securities AFS, other than the municipal bonds, are considered treasuries, agencies, and instrumentalities of the U.S. government, which have a zero credit loss assumption. These securities have the full faith and credit backing of the U.S. government or one of its agencies. Municipal bonds AFS do not fall under the zero credit loss assumption and are evaluated quarterly using the considerations mentioned above to determine whether there is a credit loss associated with a decline in fair value. Due to the zero credit loss assumption and the considerations applied to the securities AFS, no ACL was recorded on January 1, 2023 for securities AFS. Securities HTM ASC 326 requires the Company to measure expected credit losses on securities HTM. Securities HTM are measured on a collective basis by major security type with those sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. 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 securities HTM portfolio. Management monitors the HTM portfolio to determine whether an ACL should be recorded. The Company’s current securities HTM portfolio consists of mortgage-backed securities and U.S. agency securities. Our securities HTM are considered agencies and instrumentalities of the U.S. government that have a zero credit loss assumption. These securities have the full faith and credit backing of the U.S. government or one of its agencies. Due to the zero credit loss assumption, no ACL was recorded on January 1, 2023 for securities HTM. ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this update address how to determine whether a contract liability is recognized by the acquirer in a business combination. The amendment also resolves the inconsistency of post-acquisition revenue recognition by providing specific guidance on how to recognize and measure acquired contract assets and contract liabilities from revenue contracts in a business combination. On January 1, 2023, the Company adopted ASU No. 2021-08. Adoption of this ASU did not have an impact on the Company’s consolidated financial statements. ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The guidance issued in this update eliminates the accounting guidance for TDRs by creditors in Subtopic 3 10-40, Receivables – Troubled Debt Restructurings by Creditors , but also enhances the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The guidance requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost . On January 1, 2023, the Company adopted ASU No. 2022-02 on a prospective basis . Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. The guidance issued in this update addresses two issues. First, the standard requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is a lease, the accounting for the lease is treated the same as an arrangement with an unrelated party. This is a change in the requirement under Topic 840, Leases, which used the basis of economic substance. Secondly, the standard requires leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group as long as the lessee controls the use of the underlying asset. If the lessor obtained control of the use of the underlying asset through a lease with another entity not within the common control group, the amortization period may not exceed the amortization period of the common control group. If the lessee no longer controls the use of the underlying asset, the improvement is accounted for as a transfer between entities under common control through an adjustment to equity. These leasehold improvements are subject to the impairment guidance in Topic 360 Property, Plant and Equipment . Both items of this amendment are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted for both interim periods and annual financial statements that have not been issued. On January 1, 2023, the Company early adopted ASU No. 2023-01, and it did not have an impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements As of March 31, 2023, there were no recent accounting pronouncements that were applicable and not adopted. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Securities are classified as AFS, HTM, and equity securities. Total securities were $765.2 million as of March 31, 2023. Securities AFS and Securities HTM Securities AFS and securities HTM are debt securities. Securities AFS are held for indefinite periods of time and are carried at estimated fair value. As of March 31, 2023, the estimated fair value of securities AFS was $611.8 million. The net unrealized loss on securities AFS decreased $3.0 million for the three months ended March 31, 2023, resulting in a net unrealized loss of $71.2 million as of March 31, 2023. Securities HTM, which the Company has the intent and ability to hold until maturity, are carried at amortized cost. As of March 31, 2023, the amortized cost of securities HTM was $149.4 million. Investment activity for the three months ended March 31, 2023, included $8.8 million of securities purchased, partially offset by $16.4 million in maturities, principal repayments, and calls. There were no sales of securities AFS, and there were no purchases or sales of securities HTM for the same period. The amortized cost and estimated fair value of securities AFS and securities HTM are summarized in the following tables: March 31, 2023 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 269,760 $ 10 $ (31,737) $ 238,033 Municipal bonds 218,459 13 (33,227) 185,245 U.S. Treasury securities 172,262 — (4,567) 167,695 U.S. agency securities 22,488 5 (1,672) 20,821 Total Securities AFS $ 682,969 $ 28 $ (71,203) $ 611,794 Securities HTM: Mortgage-backed securities $ 148,503 $ — $ (19,803) $ 128,700 U.S. agency securities 914 — (102) 812 Total Securities HTM $ 149,417 $ — $ (19,905) $ 129,512 December 31, 2022 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 272,253 $ — $ (31,272) $ 240,981 Municipal bonds 219,305 6 (35,219) 184,092 U.S. Treasury securities 176,380 — (5,902) 170,478 U.S. agency securities 20,601 — (1,745) 18,856 Total Securities AFS $ 688,539 $ 6 $ (74,138) $ 614,407 Securities HTM: Mortgage-backed securities $ 150,771 $ — $ (19,142) $ 131,629 U.S. agency securities 912 — (134) 778 Total Securities HTM $ 151,683 $ — $ (19,276) $ 132,407 The amortized cost and estimated fair value of securities AFS and securities HTM as of March 31, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties. March 31, 2023 (in thousands) Amortized Fair Securities AFS: Within one year $ 108,910 $ 107,118 After one year but within five years 105,859 101,616 After five years but within ten years 81,451 74,960 After ten years 386,749 328,100 Total Securities AFS $ 682,969 $ 611,794 Securities HTM: Within one year $ — $ — After one year but within five years — — After five years but within ten years 914 812 After ten years 148,503 128,700 Total Securities HTM $ 149,417 $ 129,512 Accounting for Credit Losses – Securities AFS and Securities HTM The Company evaluates securities AFS for impairment when there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Due to the zero credit loss assumption and the considerations applied to the securities AFS, no ACL was recorded on January 1, 2023 and March 31, 2023 for securities AFS. Also, as part of our evaluation of our intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, we consider our investment strategy, cash flow needs, liquidity position, capital adequacy, and interest rate risk position. Management does not intend to sell these securities prior to recovery, and it is more likely than not that the Company will have the ability to hold them, primarily due to adequate liquidity, until each security has recovered its cost basis. Due to the zero credit loss assumption on the securities HTM portfolio, no ACL has been recorded for securities HTM on January 1, 2023 and March 31, 2023. Accrued interest receivable totaled $2.9 million and $3.0 million as of March 31, 2023 and December 31, 2022, respectively, for securities AFS and securities HTM and was reported in accrued interest receivable on the consolidated balance sheets. Information pertaining to securities AFS and securities HTM with gross unrealized losses as of March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows: March 31, 2023 Less than twelve months Twelve months or more (in thousands) Gross Fair Gross Fair Securities AFS: Mortgage-backed securities $ (1) $ 1,910 $ (31,736) $ 232,154 Municipal bonds (203) 10,734 (33,024) 170,760 U.S. Treasury securities — — (4,567) 167,695 U.S. agency securities (3) 608 (1,669) 17,210 Total Securities AFS $ (207) $ 13,252 $ (70,996) $ 587,819 Securities HTM: Mortgage-backed securities $ (19,803) $ 128,700 $ — $ — U.S. agency securities (102) 812 — — Total Securities HTM $ (19,905) $ 129,512 $ — $ — December 31, 2022 Less than twelve months Twelve months or more (in thousands) Gross Fair Gross Fair Securities AFS: Mortgage-backed securities $ (10,214) $ 105,030 $ (21,058) $ 135,607 Municipal bonds (11,340) 84,691 (23,879) 98,607 U.S. Treasury securities (3,852) 131,107 (2,050) 39,371 U.S. agency securities (608) 10,289 (1,137) 8,564 Total Securities AFS $ (26,014) $ 331,117 $ (48,124) $ 282,149 Securities HTM: Mortgage-backed securities $ (19,142) $ 131,629 $ — $ — U.S. agency securities (134) 778 — — Total Securities HTM $ (19,276) $ 132,407 $ — $ — As of March 31, 2023, the Company held 566 securities AFS and securities HTM that were in unrealized loss positions. The aggregate unrealized loss of these securities as of March 31, 2023, was 10.95% of the amortized cost basis of total debt securities. The proceeds from sales and calls of debt securities and their gross gain (loss) for the three months ended March 31, 2023 and 2022, are shown below: Three Months Ended (in thousands) 2023 2022 Proceeds (1) $ — $ 8,074 Gross gain $ — $ 39 Gross loss $ — $ — (1) The proceeds include the gross gain and loss. Equity Securities Equity securities are an investment in a CRA mutual fund, consisting primarily of bonds. Equity securities are carried at fair value on the consolidated balance sheets with periodic changes in value recorded through the consolidated statements of income. As of December 31, 2022, equity securities had a fair value of $10.0 million with a recognized loss of $468,000 for the year ended December 31, 2022. The loss on equity securities during 2022 was due to a significant increase in interest rates. In March 2023, we sold $6.0 million of the mutual fund. As of March 31, 2023, equity securities had a fair value of $4.0 million with a recognized gain of $31,000 for the three months ended March 31, 2023. Pledged Securities Securities with carrying values of approximately $202.1 million and $168.2 million were pledged to secure public entity deposits as of March 31, 2023 and December 31, 2022, respectively. |
Loans and Asset Quality
Loans and Asset Quality | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans and Asset Quality | Loans and Asset Quality Loans Loans HFI by category and loans HFS are summarized below: (in thousands) March 31, 2023 December 31, 2022 Real estate: Commercial real estate $ 805,160 $ 794,723 One-to-four family residential 550,542 543,511 Construction and development 145,967 157,364 Commercial and industrial 315,738 310,053 SBA PPP, net of deferred income 14 14 Tax-exempt 76,825 83,166 Consumer 27,604 27,436 Total loans HFI $ 1,921,850 $ 1,916,267 Total loans HFS $ 2,046 $ 518 Accrued interest receivable on loans HFI totaled $5.4 million and $5.8 million as of March 31, 2023 and December 31, 2022, respectively, and was reported in accrued interest receivable on the accompanying consolidated balance sheets. Allowance for Credit Losses Effective January 1, 2023, the Company adopted the provisions of ASC 326 using the modified retrospective method. For reporting periods beginning on and after January 1, 2023, the Company maintains an ACL on all loans that reflects management’s estimate of expected credit losses for the full life of the loan portfolio. The following table summarizes the activity in the ACL by category for the three months ended March 31, 2023: (in thousands) Beginning Balance December 31, 2022 Impact of ASC 326 Adoption Provision for Credit Losses Charge-offs Recoveries Ending Balance March 31, 2023 Real Estate: Commercial real estate $ 7,720 $ 876 $ — $ — $ — $ 8,596 One-to-four family residential 5,682 1,231 — — 3 6,916 Construction and development 1,654 (444) — (9) — 1,201 Commercial and industrial 4,350 (822) — (21) 14 3,521 SBA PPP, net of deferred income — — — — — — Tax-exempt 751 (427) — — — 324 Consumer 471 (136) — (86) 47 296 Total allowance for credit losses $ 20,628 $ 278 $ — $ (116) $ 64 $ 20,854 Allowance for Loan Losses For reporting periods prior to January 1, 2023, the Company maintained an ALL on loans that represented management’s estimate of probable losses incurred in the portfolio category. The following table summarizes the activity in the allowance for loan losses by category for the twelve months ended December 31, 2022: (in thousands) Beginning Provision Charge-offs Recoveries Ending Real estate: Commercial real estate $ 6,749 $ 970 $ — $ 1 $ 7,720 One-to-four family residential 5,375 296 — 11 5,682 Construction and development 1,326 328 (18) 18 1,654 Commercial and industrial 4,440 (137) (39) 86 4,350 SBA PPP, net of deferred income 25 (25) — — — Tax-exempt 749 2 — — 751 Consumer 512 316 (490) 133 471 Total allowance for loan losses $ 19,176 $ 1,750 $ (547) $ 249 $ 20,628 Nonaccrual and Past Due Loans The following table presents nonaccrual loans as of March 31, 2023: (in thousands) Nonaccrual with No ACL Nonaccrual with ACL Total Nonaccrual Real estate: Commercial real estate $ 678 $ 41 $ 719 One-to-four family residential — 177 177 Construction and development — — — Commercial and industrial — 1,287 1,287 SBA PPP, net of deferred income — — — Tax-exempt — — — Consumer — 100 100 Total loans HFI $ 678 $ 1,605 $ 2,283 No material interest income was recognized in the consolidated statements of income on nonaccrual loans for the three months ended March 31, 2023 and 2022. The following table presents the aging analysis of the past due loans and loans 90 days or more past due and still accruing interest by loan category as of March 31, 2023: Past Due (in thousands) 30-59 Days 60-89 Days 90 Days or More Current Total Loans HFI 90 Days or More Past Due and Accruing Real estate: Commercial real estate $ 25 $ — $ 747 $ 804,388 $ 805,160 $ 69 One-to-four family residential 480 38 44 549,980 550,542 — Construction and development — — — 145,967 145,967 — Commercial and industrial 30 14 1,295 314,399 315,738 8 SBA PPP, net of deferred income — — — 14 14 — Tax-exempt — — — 76,825 76,825 — Consumer 25 3 1 27,575 27,604 1 Total loans HFI $ 560 $ 55 $ 2,087 $ 1,919,148 $ 1,921,850 $ 78 The following table presents the current, past due, and nonaccrual loans by loan category as of December 31, 2022: Accruing (in thousands) Current 30-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Loans Real estate: Commercial real estate $ 793,540 $ 463 $ — $ 720 $ 794,723 One-to-four family residential 542,666 602 — 243 543,511 Construction and development 157,355 — — 9 157,364 Commercial and industrial 308,597 165 — 1,291 310,053 SBA PPP, net of deferred income 14 — — — 14 Tax-exempt 83,166 — — — 83,166 Consumer 27,291 42 2 101 27,436 Total loans HFI $ 1,912,629 $ 1,272 $ 2 $ 2,364 $ 1,916,267 Impaired Loans For reporting periods prior to January 1, 2023, when ASC 326 was adopted, the Company’s individually evaluated impaired loans included TDRs and performing and nonperforming loans. Once a loan was deemed to be impaired, the difference between the loan value and the Bank’s exposure was charged-off or a specific reserve was established. Information pertaining to impaired loans as of December 31, 2022, is as follows: (in thousands) Unpaid Recorded Related Average With no related allowance recorded: Real estate: Commercial real estate $ 3,804 $ 3,796 $ — $ 3,194 One-to-four family residential 1,458 1,387 — 797 Construction and development 9 9 — 104 Commercial and industrial 51 51 — 58 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 26 26 — 9 Total with no related allowance 5,348 5,269 — 4,162 With allowance recorded: Real estate: Commercial real estate 717 717 15 1,264 One-to-four family residential 120 120 16 48 Construction and development — — — — Commercial and industrial 1,360 1,351 172 623 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 113 111 111 122 Total with related allowance 2,310 2,299 314 2,057 Total impaired loans $ 7,658 $ 7,568 $ 314 $ 6,219 The interest income recognized on impaired loans for the year ended December 31, 2022 was $252,000. Loan Modifications The Company adopted ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures effective January 1, 2023, using the prospective method. This ASU eliminates the TDR recognition and measurement guidance and requires all loan modifications to be evaluated based on whether the modification represents a new loan or a continuation of an existing loan. Modifications are made to a borrower experiencing financial difficulty, and the modified terms are in the form of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, or a term extension in the current reporting period. As of March 31, 2023, no loan modifications were made to borrowers experiencing financial difficulty. Troubled Debt Restructurings For reporting periods prior to January 1, 2023, when ASC 326 was adopted, the restructuring of a loan was considered a TDR if the borrower was experiencing financial difficulties and the Bank had granted a concession. There were no loans modified during the three months ended March 31, 2022. Additionally, there were no defaults on loans during the three months ended March 31, 2022 that had been modified as a TDR during the prior twelve months. Credit Quality Indicators Loans are categorized based on the degree of risk inherent in the credit and the ability of the borrower to service the debt. A description of the general characteristics of the Bank’s risk rating grades follows: Pass - These loans are of satisfactory quality and do not require a more severe classification. Special mention - This category includes loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan. However, the loss potential does not warrant substandard classification. Substandard - Loans in this category have well-defined weaknesses that jeopardize normal repayment of principal and interest. Prompt corrective action is required to reduce exposure and to assure adequate remedial actions are taken by the borrower. If these weaknesses do not improve, loss is possible. Doubtful - Loans in this category have well-defined weaknesses that make full collection improbable. Loss - Loans classified in this category are considered uncollectible and charged-off to the allowance for credit losses. As of March 31, 2023, the Company had no loans classified as doubtful or loss. The following table summarizes loans by risk rating and year of origination as of March 31, 2023: Year of Origination (in thousands) 2023 2022 2021 2020 2019 Prior Years Revolving Lines Total Real estate: Commercial real estate Pass $ 27,134 $ 255,145 $ 244,680 $ 100,305 $ 70,757 $ 83,963 $ 15,317 $ 797,301 Special mention 73 — 3,276 — 1,113 848 — 5,310 Substandard — 818 673 339 — 719 — 2,549 Total $ 27,207 $ 255,963 $ 248,629 $ 100,644 $ 71,870 $ 85,530 $ 15,317 $ 805,160 One-to-four family residential Pass $ 23,079 $ 146,202 $ 140,185 $ 97,503 $ 34,658 $ 89,696 $ 17,760 $ 549,083 Special mention — — — — — 59 — 59 Substandard — 106 — 38 83 1,128 45 1,400 Total $ 23,079 $ 146,308 $ 140,185 $ 97,541 $ 34,741 $ 90,883 $ 17,805 $ 550,542 Construction and development Pass $ 5,580 $ 94,289 $ 38,370 $ 2,295 $ 2,462 $ 1,205 $ 1,766 $ 145,967 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 5,580 $ 94,289 $ 38,370 $ 2,295 $ 2,462 $ 1,205 $ 1,766 $ 145,967 Commercial and industrial Pass $ 21,109 $ 75,448 $ 69,847 $ 20,502 $ 11,505 $ 4,094 $ 100,717 $ 303,222 Special mention — — 5,071 — 646 1,914 3,423 11,054 Substandard 5 — 42 10 66 58 1,281 1,462 Total $ 21,114 $ 75,448 $ 74,960 $ 20,512 $ 12,217 $ 6,066 $ 105,421 $ 315,738 SBA PPP, net of deferred income Pass $ — $ — $ — $ 14 $ — $ — $ — $ 14 Special mention — — — — — — — — Substandard — — — — — — — — Total $ — $ — $ — $ 14 $ — $ — $ — $ 14 Tax-exempt Pass $ 523 $ 15,679 $ 8,301 $ 14,989 $ 4,530 $ 32,803 $ — $ 76,825 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 523 $ 15,679 $ 8,301 $ 14,989 $ 4,530 $ 32,803 $ — $ 76,825 Consumer Pass $ 3,252 $ 13,867 $ 4,493 $ 1,538 $ 825 $ 704 $ 2,815 $ 27,494 Special mention — — — — — — — — Substandard — — — — — 101 9 110 Total $ 3,252 $ 13,867 $ 4,493 $ 1,538 $ 825 $ 805 $ 2,824 $ 27,604 Total loans HFI $ 80,755 $ 601,554 $ 514,938 $ 237,533 $ 126,645 $ 217,292 $ 143,133 $ 1,921,850 Gross charge-offs $ — $ 3 $ — $ — $ 9 $ — $ 104 $ 116 The following table summarizes loans by risk rating as of December 31, 2022: (in thousands) Pass Special Substandard Doubtful Loss Total Real estate: Commercial real estate $ 786,394 $ 5,759 $ 2,570 $ — $ — $ 794,723 One-to-four family residential 542,112 62 1,337 — — 543,511 Construction and development 157,355 — 9 — — 157,364 Commercial and industrial 297,152 11,428 1,473 — — 310,053 SBA PPP, net of deferred income 14 — — — — 14 Tax-exempt 83,166 — — — — 83,166 Consumer 27,298 — 138 — — 27,436 Total loans HFI $ 1,893,491 $ 17,249 $ 5,527 $ — $ — $ 1,916,267 Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer if all conditions of the commitment have been met. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s evaluation of the customer’s ability to repay. As of March 31, 2023 and December 31, 2022, unfunded loan commitments totaled approximately $366.5 million and $377.6 million, respectively. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. As of March 31, 2023 and December 31, 2022, commitments under standby letters of credit totaled approximately $14.3 million and $14.6 million, respectively. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Effective January 1, 2023, the Company adopted the provision of ASC 326 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits were $2.73 billion and $2.80 billion as of March 31, 2023 and December 31, 2022, respectively. This decrease was primarily a result of the changing interest rate environment impacting customer deposit movement and activity, combined with normal seasonal drawdowns by public entity customers. Also during the first quarter of 2023, there was a deposit mix shift between deposit categories as customers moved funds from lower yielding categories to higher yielding categories. Deposits are summarized below: (in thousands) March 31, 2023 December 31, 2022 Noninterest-bearing demand deposits $ 1,060,042 $ 1,090,539 Interest-bearing deposits: Interest-bearing demand deposits 97,196 89,144 NOW accounts 440,224 503,308 Money market accounts 542,573 578,161 Savings accounts 190,119 195,479 Time deposits less than or equal to $250,000 278,937 250,875 Time deposits greater than $250,000 122,294 91,430 Total interest-bearing deposits 1,671,343 1,708,397 Total deposits $ 2,731,385 $ 2,798,936 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesThe Company and the Bank are involved, from time to time, in various legal matters arising in the ordinary course of business. While the outcome of these claims or litigation cannot be determined at this time, in the opinion of management, neither the Company nor the Bank are involved in such legal proceedings that the resolution is expected to have a material adverse effect on the consolidated results of operations, financial condition, or cash flows. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value Disclosure Securities AFS, loans HFS, and equity securities are recorded at fair value on a recurring basis. Additionally, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, foreclosed assets, and other certain assets. The nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. ASC 820, Fair Value Measurements and Disclosures indicates that assets and liabilities are recorded at fair value according to a fair value hierarchy comprised of three levels: • Level 1 pricing represents quotes on the exact financial instrument that is traded in active markets. Quoted prices on actively traded equities, for example, are in this category. • Level 2 pricing is derived from observable data including market spreads, current and projected rates, prepayment data, and credit quality. The valuation may be based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 pricing is derived without the use of observable data. In such cases, mark-to-model strategies are typically employed. Often, these types of instruments have no active market, possess unique characteristics, and are thinly traded. The Company used the following methods and significant assumptions to estimate fair value: Securities AFS and Equity Securities: The fair values for securities AFS are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Loans HFS: Residential mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value on an individual basis. The fair values of mortgage loans HFS are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustments for mortgage loans HFS are recurring Level 2. Loans HFI: The Company does not record loans HFI at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance may be established. Loans for which it was probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using estimated fair value methodologies. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value, and discounted cash flows. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determined the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the impaired loan as nonrecurring Level 3. Foreclosed Assets: Foreclosed assets, consisting of properties obtained through foreclosure or in satisfaction of loans, are reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). However, foreclosed assets are considered Level 3 in the fair value hierarchy because management has qualitatively applied a discount due to the size, supply of inventory, and the incremental discounts applied to the appraisals. Management also considers other factors, including changes in absorption rates, length of time the property has been on the market, and anticipated sales values, which have resulted in adjustments to the collateral value estimates indicated in certain appraisals. Fair Value of Assets Measured on a Recurring Basis The table below presents the recorded amount of assets measured at fair value on a recurring basis: (in thousands) Fair Value Level 1 Level 2 Level 3 March 31, 2023 Loans HFS $ 2,046 $ — $ 2,046 $ — Securities AFS: Mortgage-backed securities $ 238,033 $ — $ 238,033 $ — Municipal bonds $ 185,245 $ — $ 185,245 $ — U.S. Treasury securities $ 167,695 $ — $ 167,695 $ — U.S. agency securities $ 20,821 $ — $ 20,821 $ — Equity securities $ 4,010 $ 4,010 $ — $ — December 31, 2022 Loans HFS $ 518 $ — $ 518 $ — Securities AFS: Mortgage-backed securities $ 240,981 $ — $ 240,981 $ — Municipal bonds $ 184,092 $ — $ 184,092 $ — U.S. Treasury securities $ 170,478 $ — $ 170,478 $ — U.S. agency securities $ 18,856 $ — $ 18,856 $ — Equity securities $ 9,979 $ 9,979 $ — $ — There were no transfers between Level 1, 2, or 3 during the three months ended March 31, 2023 or the year ended December 31, 2022. Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis Financial Assets and Financial Liabilities: Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a nonrecurring basis include certain impaired collateral dependent loans reported at fair value of the underlying collateral if repayment is expected solely from the collateral. Prior to foreclosure of these loans, fair value of the collateral is estimated using Level 3 inputs based on customized discounting criteria. The table below presents certain impaired loans that were remeasured and reported at fair value through the allowance for loan losses or credit losses based upon the fair value of the underlying collateral during the reported periods: For the Three Months Ended (in thousands) March 31, 2023 March 31, 2022 Carrying value of impaired loans before allowance $ 102 $ 88 Specific allowance (25) (15) Fair value of impaired loans $ 77 $ 73 The Company had no financial liabilities measured at fair value on a nonrecurring basis for the three months ended March 31, 2023 and March 31, 2022. Nonfinancial Assets and Liabilities: Certain nonfinancial assets and nonfinancial liabilities are measured at fair value on a nonrecurring basis. These include certain foreclosed assets, which are remeasured and reported at fair value through a charge-off to the allowance for credit losses upon initial recognition as a foreclosed asset. Subsequent to their initial recognition, certain foreclosed assets are remeasured at fair value through an adjustment included in other noninterest income. The fair value of foreclosed assets is estimated using Level 3 inputs based on customized discounting criteria less estimated selling costs. The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods: For the Three Months Ended (in thousands) March 31, 2023 March 31, 2022 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to remeasurement $ 22 $ — Charge-offs — — Fair value of foreclosed assets $ 22 $ — There were no foreclosed assets that were remeasured subsequent to initial recognition for the three months ended March 31, 2023 and March 31, 2022. The Company had no nonfinancial liabilities measured at fair value on a nonrecurring basis for the three months ended March 31, 2023 and March 31, 2022. The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis were as follows: (dollars in thousands) Fair Value Valuation Technique Unobservable Input Discount Ranges Weighted Average Discount March 31, 2023 Impaired loans $ 2,351 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 78.84% Foreclosed assets $ 22 Discounted appraisals Collateral discounts and costs to sell N/A N/A December 31, 2022 Impaired loans $ 7,254 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 4.16% Foreclosed assets $ — Discounted appraisals Collateral discounts and costs to sell N/A N/A Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments as of March 31, 2023 and December 31, 2022, were as follows: (in thousands) Carrying Fair Value Level 1 Level 2 Level 3 March 31, 2023 Financial assets: Cash and due from banks $ 34,491 $ 34,491 $ 34,491 $ — $ — Interest-bearing deposits in other banks $ 194,727 $ 194,727 $ 194,727 $ — $ — Securities AFS $ 611,794 $ 611,794 $ — $ 611,794 $ — Securities HTM $ 149,417 $ 129,512 $ — $ 129,512 $ — Equity securities $ 4,010 $ 4,010 $ 4,010 $ — $ — Nonmarketable equity securities $ 3,506 $ 3,506 $ — $ 3,506 $ — Loans HFS $ 2,046 $ 2,046 $ — $ 2,046 $ — Loans HFI, net of allowance $ 1,900,996 $ 1,796,237 $ — $ — $ 1,796,237 Accrued interest receivable $ 8,397 $ 8,397 $ — $ — $ 8,397 Financial liabilities: Deposits $ 2,731,385 $ 2,721,840 $ — $ 2,721,840 $ — Accrued interest payable $ 2,433 $ 2,433 $ — $ 2,433 $ — December 31, 2022 Financial assets: Cash and due from banks $ 37,824 $ 37,824 $ 37,824 $ — $ — Interest-bearing deposits in other banks $ 240,568 $ 240,568 $ 240,568 $ — $ — Securities AFS $ 614,407 $ 614,407 $ — $ 614,407 $ — Securities HTM $ 151,683 $ 132,407 $ — $ 132,407 $ — Equity securities $ 9,979 $ 9,979 $ 9,979 $ — $ — Nonmarketable equity securities $ 3,478 $ 3,478 $ — $ 3,478 $ — Loans HFS $ 518 $ 518 $ — $ 518 $ — Loans HFI, net of allowance $ 1,895,639 $ 1,807,772 $ — $ — $ 1,807,772 Accrued interest receivable $ 8,830 $ 8,830 $ — $ — $ 8,830 Financial liabilities: Deposits $ 2,798,936 $ 2,787,198 $ — $ 2,787,198 $ — Accrued interest payable $ 1,563 $ 1,563 $ — $ 1,563 $ — |
Regulatory Capital Requirements
Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2023 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Basel III Capital Requirements The Company and the Bank are subject to Basel III capital guidelines. Basel III requires the Company and the Bank to maintain certain minimum ratios to meet capital adequacy requirements. It is management’s belief that, as of March 31, 2023, both the Company and the Bank met all capital adequacy requirements under Basel III. Management expects that the capital ratios for the Company and the Bank under Basel III will continue to exceed capital adequacy requirements. The most recent notification from the FDIC (as of September 30, 2022) categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. Bank holding companies that qualify as “small bank holding companies” under the Policy Statement are exempt from the Federal Reserve’s consolidated capital adequacy ratios at the holding company level and instead are evaluated at the bank level. In May 2018, the Economic Growth Act was enacted. One of the Economic Growth Act’s highlights, with implications for us, was the asset threshold under the Policy Statement being increased from $1.0 billion to $3.0 billion, which benefits bank holding companies by, among various other items, allowing for an 18-month safety and soundness examination cycle as opposed to a 12-month examination cycle, changing to scaled biannual regulatory reporting requirements as opposed to quarterly regulatory reporting requirements, and not subjecting bank holding companies to capital adequacy guidelines on a consolidated basis. Because the Company had less than $3.0 billion in assets as of each of the June 30 th measurement dates starting with the Economic Growth Act’s enactment and going through June 30, 2021, the Company has received benefits under the Policy Statement through 2022, except with regard to the timing of the Red River Bank safety and soundness exam by the FDIC and the OFI. Due to the timing of the asset balance determination for the Red River Bank safety and soundness examination, a 12-month examination cycle began in the second half of 2022. As of June 30, 2022, the last applicable measurement date, the Company had more than $3.0 billion in assets. Therefore, effective January 1, 2023, the Company no longer receives any benefits under the Policy Statement and became subject to consolidated capital requirements. Capital amounts and ratios for the Company as of March 31, 2023 and December 31, 2022, are presented in the following table: Regulatory Requirements Actual Minimum (1) Well Capitalized (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2023 Total Risk-Based Capital $ 364,931 17.89 % $ 214,164 10.50 % N/A N/A Tier I Risk-Based Capital $ 343,635 16.85 % $ 173,371 8.50 % N/A N/A Common Equity Tier I Capital $ 343,635 16.85 % $ 142,776 7.00 % N/A N/A Tier I Leverage Capital $ 343,635 11.02 % $ 124,686 4.00 % N/A N/A December 31, 2022 Total Risk-Based Capital $ 356,001 17.39 % N/A N/A N/A N/A Tier I Risk-Based Capital $ 335,373 16.38 % N/A N/A N/A N/A Common Equity Tier I Capital $ 335,373 16.38 % N/A N/A N/A N/A Tier I Leverage Capital $ 335,373 10.71 % N/A N/A N/A N/A (1) Due to the full phase-in of the CCB, these are the regulatory minimum amounts and ratios. These amounts and ratios were labeled as “Minimum Plus CCB” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and prior filings. Capital amounts and ratios for the Bank as of March 31, 2023 and December 31, 2022, are presented in the following table: Regulatory Requirements Actual Minimum (1) Well Capitalized (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2023 Total Risk-Based Capital $ 354,711 17.39 % $ 214,115 10.50 % $ 203,919 10.00 % Tier I Risk-Based Capital $ 333,415 16.35 % $ 173,331 8.50 % $ 163,135 8.00 % Common Equity Tier I Capital $ 333,415 16.35 % $ 142,743 7.00 % $ 132,547 6.50 % Tier I Leverage Capital $ 333,415 10.70 % $ 124,660 4.00 % $ 155,825 5.00 % December 31, 2022 Total Risk-Based Capital $ 344,867 16.85 % $ 214,915 10.50 % $ 204,681 10.00 % Tier I Risk-Based Capital $ 324,239 15.84 % $ 173,979 8.50 % $ 163,745 8.00 % Common Equity Tier I Capital $ 324,239 15.84 % $ 143,277 7.00 % $ 133,043 6.50 % Tier I Leverage Capital $ 324,239 10.35 % $ 125,252 4.00 % $ 156,565 5.00 % (1) Due to the full phase-in of the CCB, these are the regulatory minimum amounts and ratios. These amounts and ratios were labeled as “Minimum Plus CCB” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and prior filings. Community Bank Leverage Ratio Framework As part of the directive under the Economic Growth Act, in September 2019, the FDIC and other federal bank regulatory agencies approved the CBLR framework. This optional framework became effective January 1, 2020, and is available to the Company and the Bank as an alternative to the Basel III risk-based capital framework. The CBLR framework provides for a simple measure of capital adequacy for certain community banking organizations. Specifically, depository institutions and depository institution holding companies that have less than $10.0 billion in total consolidated assets and meet other qualifying criteria, including a Tier 1 leverage ratio of greater than 9.00%, are considered qualifying community banking organizations and are eligible to opt into the CBLR framework, and replace the applicable Basel III risk-based capital requirements. As of March 31, 2023, the Company and the Bank qualify for the CBLR framework. Management does not intend to utilize the CBLR framework. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits. Diluted EPS includes accrued but unissued shares relating to the Director Compensation Program stock options and restricted stock determined using the treasury stock method. The dilutive EPS calculation assumes all outstanding stock options to purchase common stock have been exercised at the beginning of the year, and the pro forma proceeds from the exercised options and restricted stock are used to purchase common stock at the average fair market valuation price. The computations of basic and diluted earnings per common share for the Company were as follows: For the Three Months Ended March 31, (in thousands, except share amounts) 2023 2022 Numerator: Net income - basic $ 9,598 $ 7,392 Net income - diluted $ 9,598 $ 7,392 Denominator: Weighted average shares outstanding - basic 7,182,782 7,179,624 Plus: Effect of Director Compensation Program 216 369 Plus: Effect of restricted stock 13,356 18,623 Weighted average shares outstanding - diluted 7,196,354 7,198,616 Earnings per common share: Basic $ 1.34 $ 1.03 Diluted $ 1.33 $ 1.03 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity Stock Repurchase Program On November 4, 2022, the Company’s board of directors approved the renewal of its 2022 stock repurchase program that expired on December 31, 2022. The renewed program authorizes the Company to purchase up to $5.0 million of its outstanding shares of common stock from January 1, 2023 through December 31, 2023. Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions. For the three months ended March 31, 2023, the Company repurchased 6,795 shares of its common stock at an aggregate cost of $346,000. As of March 31, 2023, the Company had $4.7 million available for repurchasing its common stock under this program. AOCI - Transfer of Unrealized Gain (Loss) of Securities AFS and HTM During the second quarter of 2022, the Company reclassified $166.3 million, net of $17.9 million of unrealized loss, from AFS to HTM. The securities were transferred at fair value, which became the cost basis for the securities HTM. The net unrealized loss of $17.9 million, of which $14.2 million, net of tax, was included in AOCI, is being amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer. As of March 31, 2023, the net unamortized, unrealized loss remaining on the transferred securities included in the consolidated balance sheets totaled $15.6 million, of which $12.3 million, net of tax, was included in AOCI. CECL Adjustment - Implementation of Current Expected Credit Losses Methodology related to ASU No. 2016-13 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited consolidated financial statements of the Company were prepared in accordance with GAAP for interim financial information, general practices within the financial services industry, and instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all of the information or footnotes required by GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the entire fiscal year. These statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Reclassification | Certain prior period amounts have been reclassified to conform to the current period presentation. These changes in presentation did not have a material impact on the Company’s financial condition or results of operations. |
Critical Accounting Policies and Estimates | Critical Accounting Policies and Estimates In preparing the financial statements, the Company is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s financial condition, results of operations, comprehensive income, changes in stockholders’ equity, and cash flows for the interim period presented. These adjustments are of a normal recurring nature and include appropriate estimated provisions. On January 1, 2023, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which significantly changed the impairment model for most financial assets that are measured at amortized cost, including loans HFI, securities, and unfunded commitments, from an incurred loss model to an expected loss model. Accounting policies related to the allowance for credit losses are considered critical as these policies involve considerable subjective judgment and estimation by management. Changes in factors and forecasts used in evaluating the overall loan portfolio may result in significant changes in the allowance for credit losses and related provision expense in future periods. The allowance level is influenced by loan portfolio growth, changes in the quality and composition of the loan portfolio, the level of nonperforming loans, delinquency and charge-off trends, current economic conditions, forecasted information, and other conditions influencing loss expectations. Changes to the assumptions in the model in future periods could have a material impact on the Company’s Consolidated Financial Statements. Refer to “- Accounting Standards Adopted in 2023” for a detailed discussion on the Company’s methodologies for estimating expected credit losses. |
Accounting Standards Adopted in 2023 and Recent Accounting Pronouncements | Accounting Standards Adopted in 2023 ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. On January 1, 2023 , the Company adopted ASC 326 , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans HFI, securities HTM, and unfunded commitments. In addition, ASC 326 made changes to the accounting for securities AFS, which requires credit losses to be presented as an allowance rather than as a write-down on securities AFS that management does not intend to sell or believes that it is more likely than not that the Company will have the ability to hold until each security has recovered its cost basis. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and unfunded commitments. Results for reporting periods beginning after January 1, 2023, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a $569,000, net of tax, decrease to stockholders’ equity as of January 1, 2023, for the cumulative effect of adopting ASC 326 . The transition adjustment included a $278,000 increase to the December 31, 2022 allowance for loan losses and established a $442,000 reserve for unfunded commitments as presented in the following table. (in thousands) December 31, 2022 Impact of ASC 326 Adoption January 1, 2023 Real estate: Commercial real estate $ 7,720 $ 876 $ 8,596 One-to-four family residential 5,682 1,231 6,913 Construction and development 1,654 (444) 1,210 Commercial and industrial 4,350 (822) 3,528 Tax-exempt 751 (427) 324 Consumer 471 (136) 335 Total $ 20,628 $ 278 $ 20,906 Reserve for unfunded commitments $ — $ 442 $ 442 Loans Held for Investment Loans that management has the intent and ability to hold, for the foreseeable future or until maturity or payoff, are reported at amortized cost. Amortized cost is the principal balance outstanding, net of deferred fees and costs. Accrued interest receivable is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on loans is discontinued and placed on nonaccrual status at the time the loan is 90 days past due unless the loan is well secured and in process of collection. Loans, excluding credit cards, are charged-off to the extent management is relatively certain that principal and interest will be uncollectible. Credit card loans continue to accrue interest until they are charged-off no later than 120 days past due unless the loan is in the process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed on nonaccrual status, uncollected accrued interest is reversed, reducing interest income, and future income accrual is discontinued. Subsequent payments, if any, of interest and fees are applied as reductions to the loan’s outstanding principal balance. Once the principal balance of a loan placed on nonaccrual status has been fully recovered, subsequent payments received are recognized as interest income on a cash basis. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses - Loans The ACL is a valuation account that is deducted from the amortized cost basis of loans HFI to present management’s best estimate of the expected credit losses to be collected over the lifetime of the loans. The amount of the ACL should not be interpreted as an indication that charge-offs in future periods will necessarily occur in those amounts, or at all. Loans are charged-off against the allowance when management is relatively certain that principal and interest will be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. This reasonable and supportable forecast period is currently one year and incorporates Company and peer historical losses. After the forecast period, the Company reverts to an average historical loss rate over a two-year period. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are 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 economic conditions, such as changes in unemployment rates, property values, or other relevant factors. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in our historic loss factors. The determination of the amount of allowance involves a high degree of judgement and subjectivity. The ACL is measured on a collective pool basis when similar risk characteristics and risk profiles exist. The Company utilizes cohort loss rate (static pool analysis) and remaining life loss rate methodologies to estimate the quantitative portion of the ACL for loan pools. The cohort loss rate methodology tracks a closed pool of loans over their remaining lives to determine their loss behavior. The remaining life loss rate methodology takes the calculated loss rate and applies that rate to a pool of loans on a periodic basis based on the remaining life expectation of that pool. The portfolio pools are based primarily on regulatory call report codes. These pools and certain of the inherent risks in the Company’s loan portfolio are summarized in the following table. Loan Pool Risk Characteristics Residential construction This category consists of loans to residential developers and to individual clients for construction of single-family homes. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, and change in market trends. Commercial construction This category consists of loans to small and medium-sized businesses to construct owner occupied facilities and developers of commercial real estate investment properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, change in market trends, and the ability to sell the property upon completion. Farmland This category consists of loans secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing/pastureland, and timberland. Risks inherent in this portfolio pool include adverse changes in climate, fluctuations in feed and livestock prices, and changes in property values. Home equity loans and lines This category consists of home equity loans and lines of credit. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment. Secured closed-liens This category consists of loans secured by primary and secondary liens on residential real estate. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment. Generally, these loans are for longer terms than home equity loans and lines of credit. Multifamily This category consists of loans secured by apartment or residential buildings with five or more units used to accommodate households on a temporary or permanent basis. Risks inherent in this portfolio pool include local unemployment rates, changes in the local economy, and factors that would impact property values. Owner occupied commercial real estate This category consists of loans to established operating companies and secured by owner occupied offices and industrial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, environmental contamination, and the quality of the borrower’s management. Non-owner occupied commercial real estate This category consists of loans to developers and other persons or entities and secured by non-owner occupied commercial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, tenant vacancy rates, environmental contamination, and the quality of the borrower’s management. Commercial and industrial This category consists of secured and unsecured loans to purchase capital equipment, agriculture operating loans, and other business loans for working capital and operating purposes. Secured loans are primarily secured by accounts receivable, inventory, and other business assets. The performance of commercial and industrial loans may be adversely affected by, among other factors, conditions specific to the relevant industry, fluctuations in the value of the collateral, and individual performance factors related to the borrower such as the quality of the borrower’s management. Consumer This category consists of loans to individuals for household, family, and other personal use. Risks inherent in this portfolio pool include the borrower’s financial condition, local unemployment rates, local economic conditions and the interest rate environment. Tax-exempt This category consists of loans to political subdivisions primarily of the State of Louisiana including parishes, municipalities, utility districts, school districts, and development authorities. These loans undergo the same underwriting as any of our other loans and are typically paid for by ad valorem taxes or specific revenue sources. Other loans This category consists of loans not included in any other category. Risks inherent in this portfolio pool include local unemployment rates, local economic conditions, and the interest rate environment. Loans that do not share similar risk characteristics are evaluated on an individual basis and excluded from the collective evaluation. For loans evaluated on an individual basis that are collateral dependent, the specific allowance is estimated by calculating the difference between the fair value of the underlying collateral less estimated selling costs and the Bank’s exposure. If the loan is not collateral dependent, the discounted cash flow methodology is used. Either of these determinations are highly subjective and based on information available at the time of valuation. Reserve for Unfunded Commitments Commitments to extend credit are agreements to lend to a customer if all conditions of the commitment have been met. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The reserve for unfunded commitments is recorded within accrued interest payable on the consolidated balance sheets, and the related provision is recorded in other operating expenses on the consolidated statements of income. 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 loss rates computed for each pool and expected pool-level funding rates are applied to the related unfunded commitment balance to obtain the reserve amount. Securities AFS ASC 326 requires the Company to measure expected credit losses on securities AFS. Impairment is evaluated when there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management evaluates each security by considering the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, volatility of the security’s fair value, and historical loss information for financial assets secured with similar collateral, along with other factors. 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, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the investments. If a decline in the fair value related to creditworthiness or other factors is determined, an ACL will be calculated using a discounted cash flow method, whereby management will compare the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses in the consolidated statements of income. Accrued interest receivable is excluded from the amortized cost basis in measuring expected credit losses on the investment securities and no ACL is recorded on accrued interest receivable. The Company’s current securities AFS portfolio consists of U.S. Treasury securities, mortgage-backed securities, U.S. agency securities, and municipal bonds. The Company’s securities AFS, other than the municipal bonds, are considered treasuries, agencies, and instrumentalities of the U.S. government, which have a zero credit loss assumption. These securities have the full faith and credit backing of the U.S. government or one of its agencies. Municipal bonds AFS do not fall under the zero credit loss assumption and are evaluated quarterly using the considerations mentioned above to determine whether there is a credit loss associated with a decline in fair value. Due to the zero credit loss assumption and the considerations applied to the securities AFS, no ACL was recorded on January 1, 2023 for securities AFS. Securities HTM ASC 326 requires the Company to measure expected credit losses on securities HTM. Securities HTM are measured on a collective basis by major security type with those sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. 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 securities HTM portfolio. Management monitors the HTM portfolio to determine whether an ACL should be recorded. The Company’s current securities HTM portfolio consists of mortgage-backed securities and U.S. agency securities. Our securities HTM are considered agencies and instrumentalities of the U.S. government that have a zero credit loss assumption. These securities have the full faith and credit backing of the U.S. government or one of its agencies. Due to the zero credit loss assumption, no ACL was recorded on January 1, 2023 for securities HTM. ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this update address how to determine whether a contract liability is recognized by the acquirer in a business combination. The amendment also resolves the inconsistency of post-acquisition revenue recognition by providing specific guidance on how to recognize and measure acquired contract assets and contract liabilities from revenue contracts in a business combination. On January 1, 2023, the Company adopted ASU No. 2021-08. Adoption of this ASU did not have an impact on the Company’s consolidated financial statements. ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The guidance issued in this update eliminates the accounting guidance for TDRs by creditors in Subtopic 3 10-40, Receivables – Troubled Debt Restructurings by Creditors , but also enhances the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The guidance requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost . On January 1, 2023, the Company adopted ASU No. 2022-02 on a prospective basis . Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. The guidance issued in this update addresses two issues. First, the standard requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is a lease, the accounting for the lease is treated the same as an arrangement with an unrelated party. This is a change in the requirement under Topic 840, Leases, which used the basis of economic substance. Secondly, the standard requires leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group as long as the lessee controls the use of the underlying asset. If the lessor obtained control of the use of the underlying asset through a lease with another entity not within the common control group, the amortization period may not exceed the amortization period of the common control group. If the lessee no longer controls the use of the underlying asset, the improvement is accounted for as a transfer between entities under common control through an adjustment to equity. These leasehold improvements are subject to the impairment guidance in Topic 360 Property, Plant and Equipment . Both items of this amendment are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted for both interim periods and annual financial statements that have not been issued. On January 1, 2023, the Company early adopted ASU No. 2023-01, and it did not have an impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements As of March 31, 2023, there were no recent accounting pronouncements that were applicable and not adopted. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of impact of adoption of ASC 326 | (in thousands) December 31, 2022 Impact of ASC 326 Adoption January 1, 2023 Real estate: Commercial real estate $ 7,720 $ 876 $ 8,596 One-to-four family residential 5,682 1,231 6,913 Construction and development 1,654 (444) 1,210 Commercial and industrial 4,350 (822) 3,528 Tax-exempt 751 (427) 324 Consumer 471 (136) 335 Total $ 20,628 $ 278 $ 20,906 Reserve for unfunded commitments $ — $ 442 $ 442 Loan Pool Risk Characteristics Residential construction This category consists of loans to residential developers and to individual clients for construction of single-family homes. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, and change in market trends. Commercial construction This category consists of loans to small and medium-sized businesses to construct owner occupied facilities and developers of commercial real estate investment properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, change in market trends, and the ability to sell the property upon completion. Farmland This category consists of loans secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing/pastureland, and timberland. Risks inherent in this portfolio pool include adverse changes in climate, fluctuations in feed and livestock prices, and changes in property values. Home equity loans and lines This category consists of home equity loans and lines of credit. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment. Secured closed-liens This category consists of loans secured by primary and secondary liens on residential real estate. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment. Generally, these loans are for longer terms than home equity loans and lines of credit. Multifamily This category consists of loans secured by apartment or residential buildings with five or more units used to accommodate households on a temporary or permanent basis. Risks inherent in this portfolio pool include local unemployment rates, changes in the local economy, and factors that would impact property values. Owner occupied commercial real estate This category consists of loans to established operating companies and secured by owner occupied offices and industrial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, environmental contamination, and the quality of the borrower’s management. Non-owner occupied commercial real estate This category consists of loans to developers and other persons or entities and secured by non-owner occupied commercial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, tenant vacancy rates, environmental contamination, and the quality of the borrower’s management. Commercial and industrial This category consists of secured and unsecured loans to purchase capital equipment, agriculture operating loans, and other business loans for working capital and operating purposes. Secured loans are primarily secured by accounts receivable, inventory, and other business assets. The performance of commercial and industrial loans may be adversely affected by, among other factors, conditions specific to the relevant industry, fluctuations in the value of the collateral, and individual performance factors related to the borrower such as the quality of the borrower’s management. Consumer This category consists of loans to individuals for household, family, and other personal use. Risks inherent in this portfolio pool include the borrower’s financial condition, local unemployment rates, local economic conditions and the interest rate environment. Tax-exempt This category consists of loans to political subdivisions primarily of the State of Louisiana including parishes, municipalities, utility districts, school districts, and development authorities. These loans undergo the same underwriting as any of our other loans and are typically paid for by ad valorem taxes or specific revenue sources. Other loans This category consists of loans not included in any other category. Risks inherent in this portfolio pool include local unemployment rates, local economic conditions, and the interest rate environment. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of debt securities available for sale | The amortized cost and estimated fair value of securities AFS and securities HTM are summarized in the following tables: March 31, 2023 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 269,760 $ 10 $ (31,737) $ 238,033 Municipal bonds 218,459 13 (33,227) 185,245 U.S. Treasury securities 172,262 — (4,567) 167,695 U.S. agency securities 22,488 5 (1,672) 20,821 Total Securities AFS $ 682,969 $ 28 $ (71,203) $ 611,794 Securities HTM: Mortgage-backed securities $ 148,503 $ — $ (19,803) $ 128,700 U.S. agency securities 914 — (102) 812 Total Securities HTM $ 149,417 $ — $ (19,905) $ 129,512 December 31, 2022 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 272,253 $ — $ (31,272) $ 240,981 Municipal bonds 219,305 6 (35,219) 184,092 U.S. Treasury securities 176,380 — (5,902) 170,478 U.S. agency securities 20,601 — (1,745) 18,856 Total Securities AFS $ 688,539 $ 6 $ (74,138) $ 614,407 Securities HTM: Mortgage-backed securities $ 150,771 $ — $ (19,142) $ 131,629 U.S. agency securities 912 — (134) 778 Total Securities HTM $ 151,683 $ — $ (19,276) $ 132,407 |
Schedule of debt securities held-to-maturity | The amortized cost and estimated fair value of securities AFS and securities HTM are summarized in the following tables: March 31, 2023 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 269,760 $ 10 $ (31,737) $ 238,033 Municipal bonds 218,459 13 (33,227) 185,245 U.S. Treasury securities 172,262 — (4,567) 167,695 U.S. agency securities 22,488 5 (1,672) 20,821 Total Securities AFS $ 682,969 $ 28 $ (71,203) $ 611,794 Securities HTM: Mortgage-backed securities $ 148,503 $ — $ (19,803) $ 128,700 U.S. agency securities 914 — (102) 812 Total Securities HTM $ 149,417 $ — $ (19,905) $ 129,512 December 31, 2022 (in thousands) Amortized Gross Gross Fair Securities AFS: Mortgage-backed securities $ 272,253 $ — $ (31,272) $ 240,981 Municipal bonds 219,305 6 (35,219) 184,092 U.S. Treasury securities 176,380 — (5,902) 170,478 U.S. agency securities 20,601 — (1,745) 18,856 Total Securities AFS $ 688,539 $ 6 $ (74,138) $ 614,407 Securities HTM: Mortgage-backed securities $ 150,771 $ — $ (19,142) $ 131,629 U.S. agency securities 912 — (134) 778 Total Securities HTM $ 151,683 $ — $ (19,276) $ 132,407 |
Schedule of maturities of securities available for sale and held to maturities | The amortized cost and estimated fair value of securities AFS and securities HTM as of March 31, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties. March 31, 2023 (in thousands) Amortized Fair Securities AFS: Within one year $ 108,910 $ 107,118 After one year but within five years 105,859 101,616 After five years but within ten years 81,451 74,960 After ten years 386,749 328,100 Total Securities AFS $ 682,969 $ 611,794 Securities HTM: Within one year $ — $ — After one year but within five years — — After five years but within ten years 914 812 After ten years 148,503 128,700 Total Securities HTM $ 149,417 $ 129,512 |
Schedule of debt securities available for sale in unrealized loss position | Information pertaining to securities AFS and securities HTM with gross unrealized losses as of March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows: March 31, 2023 Less than twelve months Twelve months or more (in thousands) Gross Fair Gross Fair Securities AFS: Mortgage-backed securities $ (1) $ 1,910 $ (31,736) $ 232,154 Municipal bonds (203) 10,734 (33,024) 170,760 U.S. Treasury securities — — (4,567) 167,695 U.S. agency securities (3) 608 (1,669) 17,210 Total Securities AFS $ (207) $ 13,252 $ (70,996) $ 587,819 Securities HTM: Mortgage-backed securities $ (19,803) $ 128,700 $ — $ — U.S. agency securities (102) 812 — — Total Securities HTM $ (19,905) $ 129,512 $ — $ — December 31, 2022 Less than twelve months Twelve months or more (in thousands) Gross Fair Gross Fair Securities AFS: Mortgage-backed securities $ (10,214) $ 105,030 $ (21,058) $ 135,607 Municipal bonds (11,340) 84,691 (23,879) 98,607 U.S. Treasury securities (3,852) 131,107 (2,050) 39,371 U.S. agency securities (608) 10,289 (1,137) 8,564 Total Securities AFS $ (26,014) $ 331,117 $ (48,124) $ 282,149 Securities HTM: Mortgage-backed securities $ (19,142) $ 131,629 $ — $ — U.S. agency securities (134) 778 — — Total Securities HTM $ (19,276) $ 132,407 $ — $ — |
Schedule of debt securities held-to-maturity in unrealized loss position | Information pertaining to securities AFS and securities HTM with gross unrealized losses as of March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows: March 31, 2023 Less than twelve months Twelve months or more (in thousands) Gross Fair Gross Fair Securities AFS: Mortgage-backed securities $ (1) $ 1,910 $ (31,736) $ 232,154 Municipal bonds (203) 10,734 (33,024) 170,760 U.S. Treasury securities — — (4,567) 167,695 U.S. agency securities (3) 608 (1,669) 17,210 Total Securities AFS $ (207) $ 13,252 $ (70,996) $ 587,819 Securities HTM: Mortgage-backed securities $ (19,803) $ 128,700 $ — $ — U.S. agency securities (102) 812 — — Total Securities HTM $ (19,905) $ 129,512 $ — $ — December 31, 2022 Less than twelve months Twelve months or more (in thousands) Gross Fair Gross Fair Securities AFS: Mortgage-backed securities $ (10,214) $ 105,030 $ (21,058) $ 135,607 Municipal bonds (11,340) 84,691 (23,879) 98,607 U.S. Treasury securities (3,852) 131,107 (2,050) 39,371 U.S. agency securities (608) 10,289 (1,137) 8,564 Total Securities AFS $ (26,014) $ 331,117 $ (48,124) $ 282,149 Securities HTM: Mortgage-backed securities $ (19,142) $ 131,629 $ — $ — U.S. agency securities (134) 778 — — Total Securities HTM $ (19,276) $ 132,407 $ — $ — |
Schedule of realized gain (loss) | The proceeds from sales and calls of debt securities and their gross gain (loss) for the three months ended March 31, 2023 and 2022, are shown below: Three Months Ended (in thousands) 2023 2022 Proceeds (1) $ — $ 8,074 Gross gain $ — $ 39 Gross loss $ — $ — |
Loans and Asset Quality (Tables
Loans and Asset Quality (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of loans information | Loans HFI by category and loans HFS are summarized below: (in thousands) March 31, 2023 December 31, 2022 Real estate: Commercial real estate $ 805,160 $ 794,723 One-to-four family residential 550,542 543,511 Construction and development 145,967 157,364 Commercial and industrial 315,738 310,053 SBA PPP, net of deferred income 14 14 Tax-exempt 76,825 83,166 Consumer 27,604 27,436 Total loans HFI $ 1,921,850 $ 1,916,267 Total loans HFS $ 2,046 $ 518 |
Schedule of allowance for credit losses | The following table summarizes the activity in the ACL by category for the three months ended March 31, 2023: (in thousands) Beginning Balance December 31, 2022 Impact of ASC 326 Adoption Provision for Credit Losses Charge-offs Recoveries Ending Balance March 31, 2023 Real Estate: Commercial real estate $ 7,720 $ 876 $ — $ — $ — $ 8,596 One-to-four family residential 5,682 1,231 — — 3 6,916 Construction and development 1,654 (444) — (9) — 1,201 Commercial and industrial 4,350 (822) — (21) 14 3,521 SBA PPP, net of deferred income — — — — — — Tax-exempt 751 (427) — — — 324 Consumer 471 (136) — (86) 47 296 Total allowance for credit losses $ 20,628 $ 278 $ — $ (116) $ 64 $ 20,854 The following table summarizes the activity in the allowance for loan losses by category for the twelve months ended December 31, 2022: (in thousands) Beginning Provision Charge-offs Recoveries Ending Real estate: Commercial real estate $ 6,749 $ 970 $ — $ 1 $ 7,720 One-to-four family residential 5,375 296 — 11 5,682 Construction and development 1,326 328 (18) 18 1,654 Commercial and industrial 4,440 (137) (39) 86 4,350 SBA PPP, net of deferred income 25 (25) — — — Tax-exempt 749 2 — — 751 Consumer 512 316 (490) 133 471 Total allowance for loan losses $ 19,176 $ 1,750 $ (547) $ 249 $ 20,628 |
Schedule of financing receivable, nonaccrual | The following table presents nonaccrual loans as of March 31, 2023: (in thousands) Nonaccrual with No ACL Nonaccrual with ACL Total Nonaccrual Real estate: Commercial real estate $ 678 $ 41 $ 719 One-to-four family residential — 177 177 Construction and development — — — Commercial and industrial — 1,287 1,287 SBA PPP, net of deferred income — — — Tax-exempt — — — Consumer — 100 100 Total loans HFI $ 678 $ 1,605 $ 2,283 |
Schedule of financing receivable past due | The following table presents the aging analysis of the past due loans and loans 90 days or more past due and still accruing interest by loan category as of March 31, 2023: Past Due (in thousands) 30-59 Days 60-89 Days 90 Days or More Current Total Loans HFI 90 Days or More Past Due and Accruing Real estate: Commercial real estate $ 25 $ — $ 747 $ 804,388 $ 805,160 $ 69 One-to-four family residential 480 38 44 549,980 550,542 — Construction and development — — — 145,967 145,967 — Commercial and industrial 30 14 1,295 314,399 315,738 8 SBA PPP, net of deferred income — — — 14 14 — Tax-exempt — — — 76,825 76,825 — Consumer 25 3 1 27,575 27,604 1 Total loans HFI $ 560 $ 55 $ 2,087 $ 1,919,148 $ 1,921,850 $ 78 The following table presents the current, past due, and nonaccrual loans by loan category as of December 31, 2022: Accruing (in thousands) Current 30-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Loans Real estate: Commercial real estate $ 793,540 $ 463 $ — $ 720 $ 794,723 One-to-four family residential 542,666 602 — 243 543,511 Construction and development 157,355 — — 9 157,364 Commercial and industrial 308,597 165 — 1,291 310,053 SBA PPP, net of deferred income 14 — — — 14 Tax-exempt 83,166 — — — 83,166 Consumer 27,291 42 2 101 27,436 Total loans HFI $ 1,912,629 $ 1,272 $ 2 $ 2,364 $ 1,916,267 |
Schedule of impaired financing receivable | Information pertaining to impaired loans as of December 31, 2022, is as follows: (in thousands) Unpaid Recorded Related Average With no related allowance recorded: Real estate: Commercial real estate $ 3,804 $ 3,796 $ — $ 3,194 One-to-four family residential 1,458 1,387 — 797 Construction and development 9 9 — 104 Commercial and industrial 51 51 — 58 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 26 26 — 9 Total with no related allowance 5,348 5,269 — 4,162 With allowance recorded: Real estate: Commercial real estate 717 717 15 1,264 One-to-four family residential 120 120 16 48 Construction and development — — — — Commercial and industrial 1,360 1,351 172 623 SBA PPP, net of deferred income — — — — Tax-exempt — — — — Consumer 113 111 111 122 Total with related allowance 2,310 2,299 314 2,057 Total impaired loans $ 7,658 $ 7,568 $ 314 $ 6,219 |
Schedule of credit quality indicators | The following table summarizes loans by risk rating and year of origination as of March 31, 2023: Year of Origination (in thousands) 2023 2022 2021 2020 2019 Prior Years Revolving Lines Total Real estate: Commercial real estate Pass $ 27,134 $ 255,145 $ 244,680 $ 100,305 $ 70,757 $ 83,963 $ 15,317 $ 797,301 Special mention 73 — 3,276 — 1,113 848 — 5,310 Substandard — 818 673 339 — 719 — 2,549 Total $ 27,207 $ 255,963 $ 248,629 $ 100,644 $ 71,870 $ 85,530 $ 15,317 $ 805,160 One-to-four family residential Pass $ 23,079 $ 146,202 $ 140,185 $ 97,503 $ 34,658 $ 89,696 $ 17,760 $ 549,083 Special mention — — — — — 59 — 59 Substandard — 106 — 38 83 1,128 45 1,400 Total $ 23,079 $ 146,308 $ 140,185 $ 97,541 $ 34,741 $ 90,883 $ 17,805 $ 550,542 Construction and development Pass $ 5,580 $ 94,289 $ 38,370 $ 2,295 $ 2,462 $ 1,205 $ 1,766 $ 145,967 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 5,580 $ 94,289 $ 38,370 $ 2,295 $ 2,462 $ 1,205 $ 1,766 $ 145,967 Commercial and industrial Pass $ 21,109 $ 75,448 $ 69,847 $ 20,502 $ 11,505 $ 4,094 $ 100,717 $ 303,222 Special mention — — 5,071 — 646 1,914 3,423 11,054 Substandard 5 — 42 10 66 58 1,281 1,462 Total $ 21,114 $ 75,448 $ 74,960 $ 20,512 $ 12,217 $ 6,066 $ 105,421 $ 315,738 SBA PPP, net of deferred income Pass $ — $ — $ — $ 14 $ — $ — $ — $ 14 Special mention — — — — — — — — Substandard — — — — — — — — Total $ — $ — $ — $ 14 $ — $ — $ — $ 14 Tax-exempt Pass $ 523 $ 15,679 $ 8,301 $ 14,989 $ 4,530 $ 32,803 $ — $ 76,825 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 523 $ 15,679 $ 8,301 $ 14,989 $ 4,530 $ 32,803 $ — $ 76,825 Consumer Pass $ 3,252 $ 13,867 $ 4,493 $ 1,538 $ 825 $ 704 $ 2,815 $ 27,494 Special mention — — — — — — — — Substandard — — — — — 101 9 110 Total $ 3,252 $ 13,867 $ 4,493 $ 1,538 $ 825 $ 805 $ 2,824 $ 27,604 Total loans HFI $ 80,755 $ 601,554 $ 514,938 $ 237,533 $ 126,645 $ 217,292 $ 143,133 $ 1,921,850 Gross charge-offs $ — $ 3 $ — $ — $ 9 $ — $ 104 $ 116 The following table summarizes loans by risk rating as of December 31, 2022: (in thousands) Pass Special Substandard Doubtful Loss Total Real estate: Commercial real estate $ 786,394 $ 5,759 $ 2,570 $ — $ — $ 794,723 One-to-four family residential 542,112 62 1,337 — — 543,511 Construction and development 157,355 — 9 — — 157,364 Commercial and industrial 297,152 11,428 1,473 — — 310,053 SBA PPP, net of deferred income 14 — — — — 14 Tax-exempt 83,166 — — — — 83,166 Consumer 27,298 — 138 — — 27,436 Total loans HFI $ 1,893,491 $ 17,249 $ 5,527 $ — $ — $ 1,916,267 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deposits [Abstract] | |
Summary of deposits | Deposits are summarized below: (in thousands) March 31, 2023 December 31, 2022 Noninterest-bearing demand deposits $ 1,060,042 $ 1,090,539 Interest-bearing deposits: Interest-bearing demand deposits 97,196 89,144 NOW accounts 440,224 503,308 Money market accounts 542,573 578,161 Savings accounts 190,119 195,479 Time deposits less than or equal to $250,000 278,937 250,875 Time deposits greater than $250,000 122,294 91,430 Total interest-bearing deposits 1,671,343 1,708,397 Total deposits $ 2,731,385 $ 2,798,936 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets measured on recurring basis | The table below presents the recorded amount of assets measured at fair value on a recurring basis: (in thousands) Fair Value Level 1 Level 2 Level 3 March 31, 2023 Loans HFS $ 2,046 $ — $ 2,046 $ — Securities AFS: Mortgage-backed securities $ 238,033 $ — $ 238,033 $ — Municipal bonds $ 185,245 $ — $ 185,245 $ — U.S. Treasury securities $ 167,695 $ — $ 167,695 $ — U.S. agency securities $ 20,821 $ — $ 20,821 $ — Equity securities $ 4,010 $ 4,010 $ — $ — December 31, 2022 Loans HFS $ 518 $ — $ 518 $ — Securities AFS: Mortgage-backed securities $ 240,981 $ — $ 240,981 $ — Municipal bonds $ 184,092 $ — $ 184,092 $ — U.S. Treasury securities $ 170,478 $ — $ 170,478 $ — U.S. agency securities $ 18,856 $ — $ 18,856 $ — Equity securities $ 9,979 $ 9,979 $ — $ — |
Schedule of fair value of assets measured on nonrecurring basis | The table below presents certain impaired loans that were remeasured and reported at fair value through the allowance for loan losses or credit losses based upon the fair value of the underlying collateral during the reported periods: For the Three Months Ended (in thousands) March 31, 2023 March 31, 2022 Carrying value of impaired loans before allowance $ 102 $ 88 Specific allowance (25) (15) Fair value of impaired loans $ 77 $ 73 The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods: For the Three Months Ended (in thousands) March 31, 2023 March 31, 2022 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to remeasurement $ 22 $ — Charge-offs — — Fair value of foreclosed assets $ 22 $ — |
Schedule of inputs used for the Level 3 fair value measurement | The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis were as follows: (dollars in thousands) Fair Value Valuation Technique Unobservable Input Discount Ranges Weighted Average Discount March 31, 2023 Impaired loans $ 2,351 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 78.84% Foreclosed assets $ 22 Discounted appraisals Collateral discounts and costs to sell N/A N/A December 31, 2022 Impaired loans $ 7,254 Discounted appraisals Collateral discounts and costs to sell 0% - 100% 4.16% Foreclosed assets $ — Discounted appraisals Collateral discounts and costs to sell N/A N/A |
Schedule of carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair values of financial instruments as of March 31, 2023 and December 31, 2022, were as follows: (in thousands) Carrying Fair Value Level 1 Level 2 Level 3 March 31, 2023 Financial assets: Cash and due from banks $ 34,491 $ 34,491 $ 34,491 $ — $ — Interest-bearing deposits in other banks $ 194,727 $ 194,727 $ 194,727 $ — $ — Securities AFS $ 611,794 $ 611,794 $ — $ 611,794 $ — Securities HTM $ 149,417 $ 129,512 $ — $ 129,512 $ — Equity securities $ 4,010 $ 4,010 $ 4,010 $ — $ — Nonmarketable equity securities $ 3,506 $ 3,506 $ — $ 3,506 $ — Loans HFS $ 2,046 $ 2,046 $ — $ 2,046 $ — Loans HFI, net of allowance $ 1,900,996 $ 1,796,237 $ — $ — $ 1,796,237 Accrued interest receivable $ 8,397 $ 8,397 $ — $ — $ 8,397 Financial liabilities: Deposits $ 2,731,385 $ 2,721,840 $ — $ 2,721,840 $ — Accrued interest payable $ 2,433 $ 2,433 $ — $ 2,433 $ — December 31, 2022 Financial assets: Cash and due from banks $ 37,824 $ 37,824 $ 37,824 $ — $ — Interest-bearing deposits in other banks $ 240,568 $ 240,568 $ 240,568 $ — $ — Securities AFS $ 614,407 $ 614,407 $ — $ 614,407 $ — Securities HTM $ 151,683 $ 132,407 $ — $ 132,407 $ — Equity securities $ 9,979 $ 9,979 $ 9,979 $ — $ — Nonmarketable equity securities $ 3,478 $ 3,478 $ — $ 3,478 $ — Loans HFS $ 518 $ 518 $ — $ 518 $ — Loans HFI, net of allowance $ 1,895,639 $ 1,807,772 $ — $ — $ 1,807,772 Accrued interest receivable $ 8,830 $ 8,830 $ — $ — $ 8,830 Financial liabilities: Deposits $ 2,798,936 $ 2,787,198 $ — $ 2,787,198 $ — Accrued interest payable $ 1,563 $ 1,563 $ — $ 1,563 $ — |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Schedule of compliance with regulatory capital requirements under banking regulations | Capital amounts and ratios for the Company as of March 31, 2023 and December 31, 2022, are presented in the following table: Regulatory Requirements Actual Minimum (1) Well Capitalized (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2023 Total Risk-Based Capital $ 364,931 17.89 % $ 214,164 10.50 % N/A N/A Tier I Risk-Based Capital $ 343,635 16.85 % $ 173,371 8.50 % N/A N/A Common Equity Tier I Capital $ 343,635 16.85 % $ 142,776 7.00 % N/A N/A Tier I Leverage Capital $ 343,635 11.02 % $ 124,686 4.00 % N/A N/A December 31, 2022 Total Risk-Based Capital $ 356,001 17.39 % N/A N/A N/A N/A Tier I Risk-Based Capital $ 335,373 16.38 % N/A N/A N/A N/A Common Equity Tier I Capital $ 335,373 16.38 % N/A N/A N/A N/A Tier I Leverage Capital $ 335,373 10.71 % N/A N/A N/A N/A (1) Due to the full phase-in of the CCB, these are the regulatory minimum amounts and ratios. These amounts and ratios were labeled as “Minimum Plus CCB” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and prior filings. Capital amounts and ratios for the Bank as of March 31, 2023 and December 31, 2022, are presented in the following table: Regulatory Requirements Actual Minimum (1) Well Capitalized (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2023 Total Risk-Based Capital $ 354,711 17.39 % $ 214,115 10.50 % $ 203,919 10.00 % Tier I Risk-Based Capital $ 333,415 16.35 % $ 173,331 8.50 % $ 163,135 8.00 % Common Equity Tier I Capital $ 333,415 16.35 % $ 142,743 7.00 % $ 132,547 6.50 % Tier I Leverage Capital $ 333,415 10.70 % $ 124,660 4.00 % $ 155,825 5.00 % December 31, 2022 Total Risk-Based Capital $ 344,867 16.85 % $ 214,915 10.50 % $ 204,681 10.00 % Tier I Risk-Based Capital $ 324,239 15.84 % $ 173,979 8.50 % $ 163,745 8.00 % Common Equity Tier I Capital $ 324,239 15.84 % $ 143,277 7.00 % $ 133,043 6.50 % Tier I Leverage Capital $ 324,239 10.35 % $ 125,252 4.00 % $ 156,565 5.00 % (1) Due to the full phase-in of the CCB, these are the regulatory minimum amounts and ratios. These amounts and ratios were labeled as “Minimum Plus CCB” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and prior filings. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The computations of basic and diluted earnings per common share for the Company were as follows: For the Three Months Ended March 31, (in thousands, except share amounts) 2023 2022 Numerator: Net income - basic $ 9,598 $ 7,392 Net income - diluted $ 9,598 $ 7,392 Denominator: Weighted average shares outstanding - basic 7,182,782 7,179,624 Plus: Effect of Director Compensation Program 216 369 Plus: Effect of restricted stock 13,356 18,623 Weighted average shares outstanding - diluted 7,196,354 7,198,616 Earnings per common share: Basic $ 1.34 $ 1.03 Diluted $ 1.33 $ 1.03 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 01, 2023 USD ($) | Mar. 31, 2023 USD ($) unit | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | Accounting Standards Update 2016-13 [Member] | |||
Cumulative effect of change in accounting principal | $ (9,598) | $ (7,392) | |||
Allowance for credit loss | $ 20,906 | 20,854 | $ 20,628 | $ 19,176 | |
Unfunded commitments | |||||
Property, Plant and Equipment [Line Items] | |||||
Allowance for credit loss | $ 442 | $ 442 | 0 | ||
Multifamily | Real estate | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of units | unit | 5 | ||||
Retained Earnings | |||||
Property, Plant and Equipment [Line Items] | |||||
Cumulative effect of change in accounting principal | $ (9,598) | $ (7,392) | |||
Impact of ASC 326 Adoption | |||||
Property, Plant and Equipment [Line Items] | |||||
Allowance for credit loss | 278 | ||||
Impact of ASC 326 Adoption | Unfunded commitments | |||||
Property, Plant and Equipment [Line Items] | |||||
Allowance for credit loss | $ 442 | ||||
Impact of ASC 326 Adoption | Retained Earnings | |||||
Property, Plant and Equipment [Line Items] | |||||
Cumulative effect of change in accounting principal | $ 569 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Allowance of Credit Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | $ 20,854 | $ 20,906 | $ 20,628 | $ 19,176 |
Unfunded commitments | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 442 | 442 | 0 | |
Real estate | Commercial real estate | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 8,596 | 8,596 | 7,720 | 6,749 |
Real estate | One-to-four family residential | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 6,916 | 6,913 | 5,682 | 5,375 |
Real estate | Construction and development | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 1,201 | 1,210 | 1,654 | 1,326 |
Commercial and industrial | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 3,521 | 3,528 | 4,350 | 4,440 |
Tax-exempt | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 324 | 324 | 751 | 749 |
Consumer | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | $ 296 | $ 335 | 471 | $ 512 |
Impact of ASC 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 278 | |||
Impact of ASC 326 Adoption | Unfunded commitments | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 442 | |||
Impact of ASC 326 Adoption | Real estate | Commercial real estate | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 876 | |||
Impact of ASC 326 Adoption | Real estate | One-to-four family residential | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 1,231 | |||
Impact of ASC 326 Adoption | Real estate | Construction and development | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | (444) | |||
Impact of ASC 326 Adoption | Commercial and industrial | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | (822) | |||
Impact of ASC 326 Adoption | Tax-exempt | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | (427) | |||
Impact of ASC 326 Adoption | Consumer | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | $ (136) |
Securities - Narrative (Details
Securities - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) security | Mar. 31, 2023 USD ($) security | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Securities | $ 765,200,000 | $ 765,200,000 | ||
Securities available-for-sale, at fair value | 611,794,000 | 611,794,000 | $ 614,407,000 | |
Debt securities, unrealized loss | 3,000,000 | |||
Accumulated unrealized loss on AFS securities | 71,200,000 | 71,200,000 | ||
Securities held-to-maturity, at amortized cost | 149,417,000 | 149,417,000 | 151,683,000 | |
Securities purchased | 8,755,000 | $ 232,688,000 | ||
Maturities, principal repayments, and calls | 16,400,000 | |||
Securities sold | 0 | |||
Held-to-maturity, purchase | 0 | |||
Held-to-maturity, sale | 0 | |||
Accrued interest receivables, available for sale and held to maturity securities | $ 2,900,000 | $ 2,900,000 | 3,000,000 | |
Debt securities, available-for-sale, number of securities in unrealized loss positions | security | 566 | 566 | ||
Debt securities, held-to-maturity, number of securities in unrealized loss positions | security | 566 | 566 | ||
Securities in a loss position as a proportion of total AFS securities (as a percent) | 10.95% | 10.95% | ||
Securities in a loss position as a proportion of total HTM securities (as a percent) | 10.95% | 10.95% | ||
Equity securities, at fair value | $ 4,010,000 | $ 4,010,000 | 9,979,000 | |
Gain (loss) on equity securities | 31,000 | (365,000) | 468,000 | |
Sale of equity securities | 6,000,000 | 6,000,000 | $ 0 | |
Securities pledged to secure public deposits | $ 202,100,000 | $ 202,100,000 | $ 168,200,000 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Securities AFS: | ||
Total Securities AFS | $ 682,969 | $ 688,539 |
Gross Unrealized Gains | 28 | 6 |
Gross Unrealized Losses | (71,203) | (74,138) |
Fair Value | 611,794 | 614,407 |
Securities HTM: | ||
Amortized Cost | 149,417 | 151,683 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (19,905) | (19,276) |
Fair Value | 129,512 | 132,407 |
Mortgage-backed securities | ||
Securities AFS: | ||
Total Securities AFS | 269,760 | 272,253 |
Gross Unrealized Gains | 10 | 0 |
Gross Unrealized Losses | (31,737) | (31,272) |
Fair Value | 238,033 | 240,981 |
Securities HTM: | ||
Amortized Cost | 148,503 | 150,771 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (19,803) | (19,142) |
Fair Value | 128,700 | 131,629 |
Municipal bonds | ||
Securities AFS: | ||
Total Securities AFS | 218,459 | 219,305 |
Gross Unrealized Gains | 13 | 6 |
Gross Unrealized Losses | (33,227) | (35,219) |
Fair Value | 185,245 | 184,092 |
U.S. Treasury securities | ||
Securities AFS: | ||
Total Securities AFS | 172,262 | 176,380 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4,567) | (5,902) |
Fair Value | 167,695 | 170,478 |
U.S. agency securities | ||
Securities AFS: | ||
Total Securities AFS | 22,488 | 20,601 |
Gross Unrealized Gains | 5 | 0 |
Gross Unrealized Losses | (1,672) | (1,745) |
Fair Value | 20,821 | 18,856 |
Securities HTM: | ||
Amortized Cost | 914 | 912 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (102) | (134) |
Fair Value | $ 812 | $ 778 |
Securities - Schedule of AFS De
Securities - Schedule of AFS Debt Securities, By Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Within one year | $ 108,910 | |
After one year but within five years | 105,859 | |
After five years but within ten years | 81,451 | |
After ten years | 386,749 | |
Total Securities AFS | 682,969 | $ 688,539 |
Fair Value | ||
Within one year | 107,118 | |
After one year but within five years | 101,616 | |
After five years but within ten years | 74,960 | |
After ten years | 328,100 | |
Total Securities AFS | 611,794 | |
Amortized Cost | ||
Within one year | 0 | |
After one year but within five years | 0 | |
After five years but within ten years | 914 | |
After ten years | 148,503 | |
Total Securities HTM | 149,417 | |
Fair Value | ||
Within one year | 0 | |
After one year but within five years | 0 | |
After five years but within ten years | 812 | |
After ten years | 128,700 | |
Total Securities HTM | $ 129,512 | $ 132,407 |
Securities - Schedule of Securi
Securities - Schedule of Securities With Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Less than twelve months | ||
Gross Unrealized Losses | $ (207) | $ (26,014) |
Fair Value | 13,252 | 331,117 |
Twelve months or more | ||
Gross Unrealized Losses | (70,996) | (48,124) |
Fair Value | 587,819 | 282,149 |
Less than twelve months | ||
Gross Unrealized Losses | (19,905) | (19,276) |
Fair Value | 129,512 | 132,407 |
Twelve months or more | ||
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 0 |
Mortgage-backed securities | ||
Less than twelve months | ||
Gross Unrealized Losses | (1) | (10,214) |
Fair Value | 1,910 | 105,030 |
Twelve months or more | ||
Gross Unrealized Losses | (31,736) | (21,058) |
Fair Value | 232,154 | 135,607 |
Less than twelve months | ||
Gross Unrealized Losses | (19,803) | (19,142) |
Fair Value | 128,700 | 131,629 |
Twelve months or more | ||
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 0 |
Municipal bonds | ||
Less than twelve months | ||
Gross Unrealized Losses | (203) | (11,340) |
Fair Value | 10,734 | 84,691 |
Twelve months or more | ||
Gross Unrealized Losses | (33,024) | (23,879) |
Fair Value | 170,760 | 98,607 |
U.S. Treasury securities | ||
Less than twelve months | ||
Gross Unrealized Losses | 0 | (3,852) |
Fair Value | 0 | 131,107 |
Twelve months or more | ||
Gross Unrealized Losses | (4,567) | (2,050) |
Fair Value | 167,695 | 39,371 |
U.S. agency securities | ||
Less than twelve months | ||
Gross Unrealized Losses | (3) | (608) |
Fair Value | 608 | 10,289 |
Twelve months or more | ||
Gross Unrealized Losses | (1,669) | (1,137) |
Fair Value | 17,210 | 8,564 |
Less than twelve months | ||
Gross Unrealized Losses | (102) | (134) |
Fair Value | 812 | 778 |
Twelve months or more | ||
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Securities - Schedule of Procee
Securities - Schedule of Proceeds from Sale Of Debt Securities and Their Gains (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 0 | $ 8,074 |
Gross gain | 0 | 39 |
Gross loss | $ 0 | $ 0 |
Loans and Asset Quality - Total
Loans and Asset Quality - Total Loans Held for Investment by Category and Loans Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans HFI | $ 1,921,850 | $ 1,916,267 |
Total loans HFS | 2,046 | 518 |
Real estate | Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans HFI | 805,160 | 794,723 |
Real estate | One-to-four family residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans HFI | 550,542 | 543,511 |
Real estate | Construction and development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans HFI | 145,967 | 157,364 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans HFI | 315,738 | 310,053 |
SBA PPP, net of deferred income | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans HFI | 14 | 14 |
Tax-exempt | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans HFI | 76,825 | 83,166 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans HFI | $ 27,604 | $ 27,436 |
Loans and Asset Quality - Narra
Loans and Asset Quality - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest | $ 5,800 | $ 5,400 | ||
Interest income on impaired loans | 252 | |||
Allowance for credit loss | 20,628 | 20,854 | $ 20,906 | $ 19,176 |
Unfunded commitments | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Other commitments | 377,600 | 366,500 | ||
Allowance for credit loss | 0 | 442 | $ 442 | |
Standby letters of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Other commitments | $ 14,600 | $ 14,300 |
Loans and Asset Quality - Sched
Loans and Asset Quality - Schedule of Allowance of Credit Losses By Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 20,628 | $ 19,176 | $ 19,176 |
Provision for Loan Losses | 0 | 150 | 1,750 |
Charge-offs | (116) | (547) | |
Recoveries | 64 | 249 | |
Ending Balance | 20,854 | 20,628 | |
Impact of ASC 326 Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 278 | ||
Ending Balance | 278 | ||
Real estate | Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 7,720 | 6,749 | 6,749 |
Provision for Loan Losses | 0 | 970 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 1 | |
Ending Balance | 8,596 | 7,720 | |
Real estate | Commercial real estate | Impact of ASC 326 Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 876 | ||
Ending Balance | 876 | ||
Real estate | One-to-four family residential | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 5,682 | 5,375 | 5,375 |
Provision for Loan Losses | 0 | 296 | |
Charge-offs | 0 | 0 | |
Recoveries | 3 | 11 | |
Ending Balance | 6,916 | 5,682 | |
Real estate | One-to-four family residential | Impact of ASC 326 Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 1,231 | ||
Ending Balance | 1,231 | ||
Real estate | Construction and development | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 1,654 | 1,326 | 1,326 |
Provision for Loan Losses | 0 | 328 | |
Charge-offs | (9) | (18) | |
Recoveries | 0 | 18 | |
Ending Balance | 1,201 | 1,654 | |
Real estate | Construction and development | Impact of ASC 326 Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | (444) | ||
Ending Balance | (444) | ||
Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 4,350 | 4,440 | 4,440 |
Provision for Loan Losses | 0 | (137) | |
Charge-offs | (21) | (39) | |
Recoveries | 14 | 86 | |
Ending Balance | 3,521 | 4,350 | |
Commercial and industrial | Impact of ASC 326 Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | (822) | ||
Ending Balance | (822) | ||
SBA PPP, net of deferred income | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 0 | 25 | 25 |
Provision for Loan Losses | 0 | (25) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 0 | 0 | |
SBA PPP, net of deferred income | Impact of ASC 326 Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 0 | ||
Ending Balance | 0 | ||
Tax-exempt | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 751 | 749 | 749 |
Provision for Loan Losses | 0 | 2 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 324 | 751 | |
Tax-exempt | Impact of ASC 326 Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | (427) | ||
Ending Balance | (427) | ||
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 471 | $ 512 | 512 |
Provision for Loan Losses | 0 | 316 | |
Charge-offs | (86) | (490) | |
Recoveries | 47 | 133 | |
Ending Balance | 296 | 471 | |
Consumer | Impact of ASC 326 Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ (136) | ||
Ending Balance | $ (136) |
Loans and Asset Quality - Sch_2
Loans and Asset Quality - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual with No ACL | $ 678 | |
Nonaccrual with ACL | 1,605 | |
Nonaccrual with ACL | 2,283 | $ 2,364 |
Real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual with No ACL | 678 | |
Nonaccrual with ACL | 41 | |
Nonaccrual with ACL | 719 | 720 |
Real estate | One-to-four family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual with No ACL | 0 | |
Nonaccrual with ACL | 177 | |
Nonaccrual with ACL | 177 | 243 |
Real estate | Construction and development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual with No ACL | 0 | |
Nonaccrual with ACL | 0 | |
Nonaccrual with ACL | 0 | 9 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual with No ACL | 0 | |
Nonaccrual with ACL | 1,287 | |
Nonaccrual with ACL | 1,287 | 1,291 |
SBA PPP, net of deferred income | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual with No ACL | 0 | |
Nonaccrual with ACL | 0 | |
Nonaccrual with ACL | 0 | 0 |
Tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual with No ACL | 0 | |
Nonaccrual with ACL | 0 | |
Nonaccrual with ACL | 0 | 0 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual with No ACL | 0 | |
Nonaccrual with ACL | 100 | |
Nonaccrual with ACL | $ 100 | $ 101 |
Loans and Asset Quality - Sch_3
Loans and Asset Quality - Schedule of Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | $ 1,921,850 | $ 1,916,267 |
Financing receivable, 90 days or more past due, still accruing | 78 | |
30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 560 | |
60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 55 | 1,272 |
90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,087 | 2 |
Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 1,919,148 | 1,912,629 |
Real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 805,160 | 794,723 |
Financing receivable, 90 days or more past due, still accruing | 69 | |
Real estate | Commercial real estate | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 25 | |
Real estate | Commercial real estate | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 463 |
Real estate | Commercial real estate | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 747 | 0 |
Real estate | Commercial real estate | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 804,388 | 793,540 |
Real estate | One-to-four family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 550,542 | 543,511 |
Financing receivable, 90 days or more past due, still accruing | 0 | |
Real estate | One-to-four family residential | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 480 | |
Real estate | One-to-four family residential | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 38 | 602 |
Real estate | One-to-four family residential | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 44 | 0 |
Real estate | One-to-four family residential | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 549,980 | 542,666 |
Real estate | Construction and development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 145,967 | 157,364 |
Financing receivable, 90 days or more past due, still accruing | 0 | |
Real estate | Construction and development | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |
Real estate | Construction and development | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Real estate | Construction and development | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Real estate | Construction and development | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 145,967 | 157,355 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 315,738 | 310,053 |
Financing receivable, 90 days or more past due, still accruing | 8 | |
Commercial and industrial | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 30 | |
Commercial and industrial | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 14 | 165 |
Commercial and industrial | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 1,295 | 0 |
Commercial and industrial | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 314,399 | 308,597 |
SBA PPP, net of deferred income | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 14 | 14 |
Financing receivable, 90 days or more past due, still accruing | 0 | |
SBA PPP, net of deferred income | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |
SBA PPP, net of deferred income | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
SBA PPP, net of deferred income | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
SBA PPP, net of deferred income | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 14 | 14 |
Tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 76,825 | 83,166 |
Financing receivable, 90 days or more past due, still accruing | 0 | |
Tax-exempt | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |
Tax-exempt | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Tax-exempt | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Tax-exempt | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 76,825 | 83,166 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 27,604 | 27,436 |
Financing receivable, 90 days or more past due, still accruing | 1 | |
Consumer | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 25 | |
Consumer | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 3 | 42 |
Consumer | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 1 | 2 |
Consumer | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | $ 27,575 | $ 27,291 |
Loans and Asset Quality - Sch_4
Loans and Asset Quality - Schedule of Current, Past Due, and Nonaccrual loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | $ 1,921,850 | $ 1,916,267 |
Financing receivable, excluding accrued interest, nonaccrual | 2,283 | 2,364 |
30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 560 | |
60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 55 | 1,272 |
90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,087 | 2 |
Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 1,919,148 | 1,912,629 |
Real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 805,160 | 794,723 |
Financing receivable, excluding accrued interest, nonaccrual | 719 | 720 |
Real estate | Commercial real estate | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 25 | |
Real estate | Commercial real estate | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 463 |
Real estate | Commercial real estate | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 747 | 0 |
Real estate | Commercial real estate | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 804,388 | 793,540 |
Real estate | One-to-four family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 550,542 | 543,511 |
Financing receivable, excluding accrued interest, nonaccrual | 177 | 243 |
Real estate | One-to-four family residential | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 480 | |
Real estate | One-to-four family residential | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 38 | 602 |
Real estate | One-to-four family residential | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 44 | 0 |
Real estate | One-to-four family residential | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 549,980 | 542,666 |
Real estate | Construction and development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 145,967 | 157,364 |
Financing receivable, excluding accrued interest, nonaccrual | 0 | 9 |
Real estate | Construction and development | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |
Real estate | Construction and development | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Real estate | Construction and development | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Real estate | Construction and development | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 145,967 | 157,355 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 315,738 | 310,053 |
Financing receivable, excluding accrued interest, nonaccrual | 1,287 | 1,291 |
Commercial and industrial | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 30 | |
Commercial and industrial | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 14 | 165 |
Commercial and industrial | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 1,295 | 0 |
Commercial and industrial | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 314,399 | 308,597 |
SBA PPP, net of deferred income | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 14 | 14 |
Financing receivable, excluding accrued interest, nonaccrual | 0 | 0 |
SBA PPP, net of deferred income | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |
SBA PPP, net of deferred income | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
SBA PPP, net of deferred income | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
SBA PPP, net of deferred income | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 14 | 14 |
Tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 76,825 | 83,166 |
Financing receivable, excluding accrued interest, nonaccrual | 0 | 0 |
Tax-exempt | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |
Tax-exempt | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Tax-exempt | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Tax-exempt | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 76,825 | 83,166 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 27,604 | 27,436 |
Financing receivable, excluding accrued interest, nonaccrual | 100 | 101 |
Consumer | 30-59 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 25 | |
Consumer | 60-89 Days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 3 | 42 |
Consumer | 90 Days or More | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 1 | 2 |
Consumer | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | $ 27,575 | $ 27,291 |
Loans and Asset Quality - Sch_5
Loans and Asset Quality - Schedule of Loans Impaired (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Unpaid Principal Balance | |
With no related allowance recorded: | $ 5,348 |
With allowance recorded: | 2,310 |
Total impaired loans | 7,658 |
Recorded Investment | |
With no related allowance recorded: | 5,269 |
With allowance recorded: | 2,299 |
Total impaired loans | 7,568 |
Related Allowance | 314 |
Average Recorded Investment | |
With no related allowance recorded: | 4,162 |
With allowance recorded: | 2,057 |
Total impaired loans | 6,219 |
Real estate | Commercial real estate | |
Unpaid Principal Balance | |
With no related allowance recorded: | 3,804 |
With allowance recorded: | 717 |
Recorded Investment | |
With no related allowance recorded: | 3,796 |
With allowance recorded: | 717 |
Related Allowance | 15 |
Average Recorded Investment | |
With no related allowance recorded: | 3,194 |
With allowance recorded: | 1,264 |
Real estate | One-to-four family residential | |
Unpaid Principal Balance | |
With no related allowance recorded: | 1,458 |
With allowance recorded: | 120 |
Recorded Investment | |
With no related allowance recorded: | 1,387 |
With allowance recorded: | 120 |
Related Allowance | 16 |
Average Recorded Investment | |
With no related allowance recorded: | 797 |
With allowance recorded: | 48 |
Real estate | Construction and development | |
Unpaid Principal Balance | |
With no related allowance recorded: | 9 |
With allowance recorded: | 0 |
Recorded Investment | |
With no related allowance recorded: | 9 |
With allowance recorded: | 0 |
Related Allowance | 0 |
Average Recorded Investment | |
With no related allowance recorded: | 104 |
With allowance recorded: | 0 |
Commercial and industrial | |
Unpaid Principal Balance | |
With no related allowance recorded: | 51 |
With allowance recorded: | 1,360 |
Recorded Investment | |
With no related allowance recorded: | 51 |
With allowance recorded: | 1,351 |
Related Allowance | 172 |
Average Recorded Investment | |
With no related allowance recorded: | 58 |
With allowance recorded: | 623 |
SBA PPP, net of deferred income | |
Unpaid Principal Balance | |
With no related allowance recorded: | 0 |
With allowance recorded: | 0 |
Recorded Investment | |
With no related allowance recorded: | 0 |
With allowance recorded: | 0 |
Related Allowance | 0 |
Average Recorded Investment | |
With no related allowance recorded: | 0 |
With allowance recorded: | 0 |
Tax-exempt | |
Unpaid Principal Balance | |
With no related allowance recorded: | 0 |
With allowance recorded: | 0 |
Recorded Investment | |
With no related allowance recorded: | 0 |
With allowance recorded: | 0 |
Related Allowance | 0 |
Average Recorded Investment | |
With no related allowance recorded: | 0 |
With allowance recorded: | 0 |
Consumer | |
Unpaid Principal Balance | |
With no related allowance recorded: | 26 |
With allowance recorded: | 113 |
Recorded Investment | |
With no related allowance recorded: | 26 |
With allowance recorded: | 111 |
Related Allowance | 111 |
Average Recorded Investment | |
With no related allowance recorded: | 9 |
With allowance recorded: | $ 122 |
Loans and Asset Quality - Summa
Loans and Asset Quality - Summary of Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 80,755 | |
2022 | 601,554 | |
2021 | 514,938 | |
2020 | 237,533 | |
2019 | 126,645 | |
Prior Years | 217,292 | |
Revolving Lines | 143,133 | |
Total | 1,921,850 | $ 1,916,267 |
Gross charge-offs, 2023 | 0 | |
Gross charge-offs, 2022 | 3 | |
Gross charge-offs, 2021 | 0 | |
Gross charge-offs, 2020 | 0 | |
Gross charge-offs, 2019 | 9 | |
Gross charge-offs, Prior Years | 0 | |
Gross charge-offs, Revolving Lines | 104 | |
Gross charge-offs, Total | 116 | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,893,491 | |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 17,249 | |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 5,527 | |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 27,207 | |
2022 | 255,963 | |
2021 | 248,629 | |
2020 | 100,644 | |
2019 | 71,870 | |
Prior Years | 85,530 | |
Revolving Lines | 15,317 | |
Total | 805,160 | 794,723 |
Real estate | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 27,134 | |
2022 | 255,145 | |
2021 | 244,680 | |
2020 | 100,305 | |
2019 | 70,757 | |
Prior Years | 83,963 | |
Revolving Lines | 15,317 | |
Total | 797,301 | 786,394 |
Real estate | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 73 | |
2022 | 0 | |
2021 | 3,276 | |
2020 | 0 | |
2019 | 1,113 | |
Prior Years | 848 | |
Revolving Lines | 0 | |
Total | 5,310 | 5,759 |
Real estate | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 818 | |
2021 | 673 | |
2020 | 339 | |
2019 | 0 | |
Prior Years | 719 | |
Revolving Lines | 0 | |
Total | 2,549 | 2,570 |
Real estate | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Real estate | Commercial real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Real estate | One-to-four family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 23,079 | |
2022 | 146,308 | |
2021 | 140,185 | |
2020 | 97,541 | |
2019 | 34,741 | |
Prior Years | 90,883 | |
Revolving Lines | 17,805 | |
Total | 550,542 | 543,511 |
Real estate | One-to-four family residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 23,079 | |
2022 | 146,202 | |
2021 | 140,185 | |
2020 | 97,503 | |
2019 | 34,658 | |
Prior Years | 89,696 | |
Revolving Lines | 17,760 | |
Total | 549,083 | 542,112 |
Real estate | One-to-four family residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior Years | 59 | |
Revolving Lines | 0 | |
Total | 59 | 62 |
Real estate | One-to-four family residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 106 | |
2021 | 0 | |
2020 | 38 | |
2019 | 83 | |
Prior Years | 1,128 | |
Revolving Lines | 45 | |
Total | 1,400 | 1,337 |
Real estate | One-to-four family residential | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Real estate | One-to-four family residential | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Real estate | Construction and development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,580 | |
2022 | 94,289 | |
2021 | 38,370 | |
2020 | 2,295 | |
2019 | 2,462 | |
Prior Years | 1,205 | |
Revolving Lines | 1,766 | |
Total | 145,967 | 157,364 |
Real estate | Construction and development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,580 | |
2022 | 94,289 | |
2021 | 38,370 | |
2020 | 2,295 | |
2019 | 2,462 | |
Prior Years | 1,205 | |
Revolving Lines | 1,766 | |
Total | 145,967 | 157,355 |
Real estate | Construction and development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior Years | 0 | |
Revolving Lines | 0 | |
Total | 0 | 0 |
Real estate | Construction and development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior Years | 0 | |
Revolving Lines | 0 | |
Total | 0 | 9 |
Real estate | Construction and development | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Real estate | Construction and development | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 21,114 | |
2022 | 75,448 | |
2021 | 74,960 | |
2020 | 20,512 | |
2019 | 12,217 | |
Prior Years | 6,066 | |
Revolving Lines | 105,421 | |
Total | 315,738 | 310,053 |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 21,109 | |
2022 | 75,448 | |
2021 | 69,847 | |
2020 | 20,502 | |
2019 | 11,505 | |
Prior Years | 4,094 | |
Revolving Lines | 100,717 | |
Total | 303,222 | 297,152 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 5,071 | |
2020 | 0 | |
2019 | 646 | |
Prior Years | 1,914 | |
Revolving Lines | 3,423 | |
Total | 11,054 | 11,428 |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5 | |
2022 | 0 | |
2021 | 42 | |
2020 | 10 | |
2019 | 66 | |
Prior Years | 58 | |
Revolving Lines | 1,281 | |
Total | 1,462 | 1,473 |
Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Commercial and industrial | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
SBA PPP, net of deferred income | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 14 | |
2019 | 0 | |
Prior Years | 0 | |
Revolving Lines | 0 | |
Total | 14 | 14 |
SBA PPP, net of deferred income | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 14 | |
2019 | 0 | |
Prior Years | 0 | |
Revolving Lines | 0 | |
Total | 14 | 14 |
SBA PPP, net of deferred income | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior Years | 0 | |
Revolving Lines | 0 | |
Total | 0 | 0 |
SBA PPP, net of deferred income | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior Years | 0 | |
Revolving Lines | 0 | |
Total | 0 | 0 |
SBA PPP, net of deferred income | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
SBA PPP, net of deferred income | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 523 | |
2022 | 15,679 | |
2021 | 8,301 | |
2020 | 14,989 | |
2019 | 4,530 | |
Prior Years | 32,803 | |
Revolving Lines | 0 | |
Total | 76,825 | 83,166 |
Tax-exempt | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 523 | |
2022 | 15,679 | |
2021 | 8,301 | |
2020 | 14,989 | |
2019 | 4,530 | |
Prior Years | 32,803 | |
Revolving Lines | 0 | |
Total | 76,825 | 83,166 |
Tax-exempt | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior Years | 0 | |
Revolving Lines | 0 | |
Total | 0 | 0 |
Tax-exempt | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior Years | 0 | |
Revolving Lines | 0 | |
Total | 0 | 0 |
Tax-exempt | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Tax-exempt | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 3,252 | |
2022 | 13,867 | |
2021 | 4,493 | |
2020 | 1,538 | |
2019 | 825 | |
Prior Years | 805 | |
Revolving Lines | 2,824 | |
Total | 27,604 | 27,436 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 3,252 | |
2022 | 13,867 | |
2021 | 4,493 | |
2020 | 1,538 | |
2019 | 825 | |
Prior Years | 704 | |
Revolving Lines | 2,815 | |
Total | 27,494 | 27,298 |
Consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior Years | 0 | |
Revolving Lines | 0 | |
Total | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior Years | 101 | |
Revolving Lines | 9 | |
Total | $ 110 | 138 |
Consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Consumer | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 0 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Deposits | $ 2,731,385 | $ 2,798,936 |
Deposits - Summary (Details)
Deposits - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 1,060,042 | $ 1,090,539 |
Interest-bearing deposits: | ||
Interest-bearing demand deposits | 97,196 | 89,144 |
NOW accounts | 440,224 | 503,308 |
Money market accounts | 542,573 | 578,161 |
Savings accounts | 190,119 | 195,479 |
Time deposits less than or equal to $250,000 | 278,937 | 250,875 |
Time deposits greater than $250,000 | 122,294 | 91,430 |
Total interest-bearing deposits | 1,671,343 | 1,708,397 |
Total Deposits | $ 2,731,385 | $ 2,798,936 |
Fair Value - Assets Measured on
Fair Value - Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 611,794 | $ 614,407 |
Equity securities, at fair value | 4,010 | 9,979 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 238,033 | 240,981 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 185,245 | 184,092 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 167,695 | 170,478 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 20,821 | 18,856 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Securities AFS | 0 | 0 |
Equity securities, at fair value | 4,010 | 9,979 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 2,046 | 518 |
Securities AFS | 611,794 | 614,407 |
Equity securities, at fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Securities AFS | 0 | 0 |
Equity securities, at fair value | 0 | 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 2,046 | 518 |
Equity securities, at fair value | 4,010 | 9,979 |
Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 238,033 | 240,981 |
Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 185,245 | 184,092 |
Recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 167,695 | 170,478 |
Recurring | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 20,821 | 18,856 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Equity securities, at fair value | 4,010 | 9,979 |
Recurring | Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring | Level 1 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring | Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring | Level 1 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 2,046 | 518 |
Equity securities, at fair value | 0 | 0 |
Recurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 238,033 | 240,981 |
Recurring | Level 2 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 185,245 | 184,092 |
Recurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 167,695 | 170,478 |
Recurring | Level 2 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 20,821 | 18,856 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans HFS | 0 | 0 |
Equity securities, at fair value | 0 | 0 |
Recurring | Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring | Level 3 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring | Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring | Level 3 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 0 | $ 0 |
Fair Value - Assets Measured _2
Fair Value - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Specific allowance | $ 0 | $ (150) | $ (1,750) |
Remeasured Loans | Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of impaired loans before allowance | 102 | 88 | |
Specific allowance | (25) | (15) | |
Fair value of impaired loans | 77 | 73 | |
Foreclosed assets remeasured subsequent to initial recognition: | |||
Carrying value of foreclosed assets prior to remeasurement | 22 | 0 | |
Charge-offs | 0 | 0 | |
Fair value of foreclosed assets | $ 22 | $ 0 |
Fair Value - Unobservable Input
Fair Value - Unobservable Inputs Used for the Level 3 (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Minimum | Discounted appraisals | Collateral discounts and costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans (percent) | 0 | 0 |
Maximum | Discounted appraisals | Collateral discounts and costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans (percent) | 1 | 1 |
Weighted Average Discount | Discounted appraisals | Collateral discounts and costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans (percent) | 0.7884 | 0.0416 |
Nonrecurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 2,351 | $ 7,254 |
Foreclosed assets | $ 22 | $ 0 |
Fair Value - Carrying Amounts a
Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Securities AFS | $ 611,794 | $ 614,407 |
Securities HTM | 129,512 | 132,407 |
Equity securities | 4,010 | 9,979 |
Nonmarketable equity securities | 3,506 | 3,478 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 34,491 | 37,824 |
Interest-bearing deposits in other banks | 194,727 | 240,568 |
Securities AFS | 0 | 0 |
Securities HTM | 0 | 0 |
Equity securities | 4,010 | 9,979 |
Nonmarketable equity securities | 0 | 0 |
Loans HFS | 0 | 0 |
Loans HFI, net of allowance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Securities AFS | 611,794 | 614,407 |
Securities HTM | 129,512 | 132,407 |
Equity securities | 0 | 0 |
Nonmarketable equity securities | 3,506 | 3,478 |
Loans HFS | 2,046 | 518 |
Loans HFI, net of allowance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 2,721,840 | 2,787,198 |
Accrued interest payable | 2,433 | 1,563 |
Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Securities HTM | 0 | 0 |
Equity securities | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Loans HFS | 0 | 0 |
Loans HFI, net of allowance | 1,796,237 | 1,807,772 |
Accrued interest receivable | 8,397 | 8,830 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 34,491 | 37,824 |
Interest-bearing deposits in other banks | 194,727 | 240,568 |
Securities AFS | 611,794 | 614,407 |
Securities HTM | 149,417 | 151,683 |
Equity securities | 4,010 | 9,979 |
Nonmarketable equity securities | 3,506 | 3,478 |
Loans HFS | 2,046 | 518 |
Loans HFI, net of allowance | 1,900,996 | 1,895,639 |
Accrued interest receivable | 8,397 | 8,830 |
Financial liabilities: | ||
Deposits | 2,731,385 | 2,798,936 |
Accrued interest payable | 2,433 | 1,563 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 34,491 | 37,824 |
Interest-bearing deposits in other banks | 194,727 | 240,568 |
Securities AFS | 611,794 | 614,407 |
Securities HTM | 129,512 | 132,407 |
Equity securities | 4,010 | 9,979 |
Nonmarketable equity securities | 3,506 | 3,478 |
Loans HFS | 2,046 | 518 |
Loans HFI, net of allowance | 1,796,237 | 1,807,772 |
Accrued interest receivable | 8,397 | 8,830 |
Financial liabilities: | ||
Deposits | 2,721,840 | 2,787,198 |
Accrued interest payable | $ 2,433 | $ 1,563 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Schedule of Regulatory Requirements (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Red River Bancshares, Inc. | ||
Total Risk-Based Capital | ||
Actual Amount | $ 364,931 | $ 356,001 |
Actual Ratio (percent) | 0.1789 | 0.1739 |
Regulatory Requirements, Minimum, Amount | $ 214,164 | |
Regulatory Requirements, Minimum, Ratio (percent) | 0.1050 | |
Tier I Risk-Based Capital | ||
Actual Amount | $ 343,635 | $ 335,373 |
Actual Ratio (percent) | 0.1685 | 0.1638 |
Regulatory Requirements, Minimum, Amount | $ 173,371 | |
Regulatory Requirements, Minimum, Ratio (percent) | 0.0850 | |
Common Equity Tier I Capital | ||
Actual Amount | $ 343,635 | $ 335,373 |
Actual Ratio (percent) | 0.1685 | 0.1638 |
Regulatory Requirements, Minimum, Amount | $ 142,776 | |
Regulatory Requirements, Minimum, Ratio (percent) | 0.0700 | |
Tier I Leverage Capital | ||
Actual Amount | $ 343,635 | $ 335,373 |
Actual Ratio (percent) | 0.1102 | 0.1071 |
Regulatory Requirements, Minimum, Amount | $ 124,686 | |
Regulatory Requirements, Minimum, Ratio (percent) | 0.0400 | |
Red River Bank | ||
Total Risk-Based Capital | ||
Actual Amount | $ 354,711 | $ 344,867 |
Actual Ratio (percent) | 0.1739 | 0.1685 |
Regulatory Requirements, Minimum, Amount | $ 214,115 | $ 214,915 |
Regulatory Requirements, Minimum, Ratio (percent) | 0.1050 | 0.1050 |
Regulatory Requirements, Minimum Plus CCB, Amount | $ 203,919 | $ 204,681 |
Regulatory Requirements, Minimum Plus CCB, Ratio (percent) | 0.1000 | 0.1000 |
Tier I Risk-Based Capital | ||
Actual Amount | $ 333,415 | $ 324,239 |
Actual Ratio (percent) | 0.1635 | 0.1584 |
Regulatory Requirements, Minimum, Amount | $ 173,331 | $ 173,979 |
Regulatory Requirements, Minimum, Ratio (percent) | 0.0850 | 0.0850 |
Regulatory Requirements, Minimum Plus CCB, Amount | $ 163,135 | $ 163,745 |
Regulatory Requirements, Minimum Plus CCB, Ratio (percent) | 0.0800 | 0.0800 |
Common Equity Tier I Capital | ||
Actual Amount | $ 333,415 | $ 324,239 |
Actual Ratio (percent) | 0.1635 | 0.1584 |
Regulatory Requirements, Minimum, Amount | $ 142,743 | $ 143,277 |
Regulatory Requirements, Minimum, Ratio (percent) | 0.0700 | 0.0700 |
Regulatory Requirements, Minimum Plus CCB, Amount | $ 132,547 | $ 133,043 |
Regulatory Requirements, Minimum Plus CCB, Ratio (percent) | 0.0650 | 0.0650 |
Tier I Leverage Capital | ||
Actual Amount | $ 333,415 | $ 324,239 |
Actual Ratio (percent) | 0.1070 | 0.1035 |
Regulatory Requirements, Minimum, Amount | $ 124,660 | $ 125,252 |
Regulatory Requirements, Minimum, Ratio (percent) | 0.0400 | 0.0400 |
Regulatory Requirements, Minimum Plus CCB, Amount | $ 155,825 | $ 156,565 |
Regulatory Requirements, Minimum Plus CCB, Ratio (percent) | 0.0500 | 0.0500 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income - basic | $ 9,598 | $ 7,392 |
Net income - diluted | $ 9,598 | $ 7,392 |
Denominator: | ||
Weighted average shares outstanding - basic (in shares) | 7,182,782 | 7,179,624 |
Weighted average shares outstanding - diluted (in shares) | 7,196,354 | 7,198,616 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.34 | $ 1.03 |
Diluted (in dollars per share) | $ 1.33 | $ 1.03 |
Plus: Effect of Director Compensation Program | ||
Denominator: | ||
Effect of dilutive securities (in shares) | 216 | 369 |
Plus: Effect of restricted stock | ||
Denominator: | ||
Effect of dilutive securities (in shares) | 13,356 | 18,623 |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 01, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Nov. 04, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 5,000 | |||||
Stock repurchased (in shares) | 6,795 | |||||
Stock repurchased value | $ 346 | $ 218 | ||||
Stock available for repurchasing value | 4,700 | |||||
Transferred securities of available for sale and held-to-maturity, amount | $ 166,300 | |||||
AOCI, debt securities, transferred securities of available for sale and held-to-maturity, unrealized loss | 15,600 | 17,900 | ||||
AOCI, debt securities, transferred securities of available for sale and held-to-maturity, unrealized loss, net of tax | 12,300 | $ 14,200 | ||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Cumulative effect of change in accounting principal | (9,598) | (7,392) | ||||
Retained Earnings | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Cumulative effect of change in accounting principal | (9,598) | $ (7,392) | ||||
Impact of ASC 326 Adoption | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Adjustment to the allowances for credit losses and reserve for unfunded commitments | $ 720 | |||||
Impact of ASC 326 Adoption | Retained Earnings | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Cumulative effect of change in accounting principal | $ 569 |