Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | PEOPLES BANCORP OF NORTH CAROLINA, INC. | |
Entity Central Index Key | 0001093672 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 5,637,830 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-27205 | |
Entity Incorporation State Country Code | NC | |
Entity Tax Identification Number | 56-2132396 | |
Entity Interactive Data Current | Yes | |
Entity Address Address Line 1 | 518 West C Street | |
Entity Address City Or Town | Newton | |
Entity Address State Or Province | NC | |
Entity Address Postal Zip Code | 28658 | |
City Area Code | 828 | |
Local Phone Number | 464-5620 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Cash and due from banks, including reserve requirements of $0 at both 9/30/22 and 12/31/21 | $ 55,063 | $ 44,711 |
Interest-bearing deposits | 100,398 | 232,788 |
Cash and cash equivalents | 155,461 | 277,499 |
Investment securities available for sale | 444,367 | 406,549 |
Other investments | 2,762 | 3,668 |
Total securities | 447,129 | 410,217 |
Mortgage loans held for sale | 975 | 3,637 |
Loans | 1,004,907 | 884,869 |
Less allowance for loan losses | (10,030) | (9,355) |
Net loans | 994,877 | 875,514 |
Premises and equipment, net | 18,508 | 16,104 |
Cash surrender value of life insurance | 17,601 | 17,365 |
Right of use lease asset | 5,770 | 4,612 |
Accrued interest receivable and other assets | 35,969 | 19,245 |
Total assets | 1,676,290 | 1,624,193 |
Deposits: | ||
Noninterest-bearing demand | 563,142 | 514,319 |
Interest-bearing demand, MMDA & savings | 839,532 | 797,179 |
Time, $250,000 or more | 30,118 | 26,333 |
Other time | 68,299 | 74,917 |
Total deposits | 1,501,091 | 1,412,748 |
Securities sold under agreements to repurchase | 37,986 | 37,094 |
Junior subordinated debentures | 15,464 | 15,464 |
Lease liability | 5,847 | 4,677 |
Accrued interest payable and other liabilities | 11,978 | 11,841 |
Total liabilities | 1,572,366 | 1,481,824 |
Shareholders' equity: | ||
Preferred stock, no par value; authorized 5,000,000 shares; no shares issued and outstanding | 0 | 0 |
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,641,030 shares at September 30, 2022 and 5,661,569 shares at December 31, 2021 | 52,752 | 53,305 |
Common stock held by deferred compensation trust, at cost; 167,889 shares at September 30, 2022 and 162,193 shares at December 31, 2021 | (2,150) | (1,992) |
Deferred compensation | 2,150 | 1,992 |
Retained earnings | 97,029 | 88,968 |
Accumulated other comprehensive income (loss) | (45,857) | 96 |
Total shareholders' equity | 103,924 | 142,369 |
Total liabilities and shareholders' equity | $ 1,676,290 | $ 1,624,193 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Reserve | $ 0 | $ 0 |
Time | 250,000 | 0 |
Common Stock Held By Deferred Compensation Trust | $ 167,889 | $ 162,193 |
Preferred Stock, Par Value (in Dollars Per Share) | $ 0 | $ 0 |
Preferred Stock, Shares Authorized (In shares) | 5,000,000 | 5,000,000 |
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) | 20,000,000 | 20,000,000 |
Common Stock, Shares Issued (In shares) | 5,641,030 | 5,661,569 |
Common Stock, Shares Outstanding (In shares) | 5,641,030 | 5,661,569 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest income: | ||||
Interest and fees on loans | $ 11,051 | $ 9,807 | $ 30,727 | $ 31,474 |
Interest on due from banks | 900 | 89 | 1,453 | 172 |
Interest on investment securities: | ||||
U.S. Government sponsored enterprises | 1,580 | 679 | 2,676 | 1,899 |
State and political subdivisions | 1,056 | 825 | 3,009 | 2,222 |
Other | 24 | 21 | 67 | 93 |
Total interest income | 14,611 | 11,421 | 37,932 | 35,860 |
Interest expense: | ||||
NOW, MMDA & savings deposits | 494 | 577 | 1,263 | 1,617 |
Time deposits | 134 | 181 | 421 | 584 |
Junior subordinated debentures | 146 | 69 | 324 | 211 |
Other | 44 | 34 | 117 | 106 |
Total interest expense | 818 | 861 | 2,125 | 2,518 |
Net interest income | 13,793 | 10,560 | 35,807 | 33,342 |
Provision for (recovery of) loan losses | 408 | (182) | 889 | (863) |
Net interest income after provision for loan losses | 13,385 | 10,742 | 34,918 | 34,205 |
Non-interest income: | ||||
Service charges | 1,458 | 1,023 | 4,000 | 2,859 |
Other service charges and fees | 169 | 187 | 540 | 570 |
Mortgage banking income | 59 | 516 | 358 | 2,109 |
Insurance and brokerage commissions | 213 | 266 | 709 | 764 |
Appraisal management fee income | 2,711 | 1,954 | 9,656 | 5,775 |
Gain on sale of other assets | 104 | 0 | 104 | |
Gain on sale of other real estate | 0 | 0 | 0 | 21 |
Miscellaneous | 2,183 | 1,990 | 5,904 | 5,751 |
Total non-interest income | 6,793 | 6,040 | 21,167 | 17,953 |
Non-interest expense: | ||||
Salaries and employee benefits | 6,177 | 6,054 | 18,469 | 17,903 |
Occupancy | 2,038 | 1,999 | 5,886 | 5,891 |
Professional fees | 413 | 582 | 1,241 | 1,354 |
Advertising | 175 | 91 | 509 | 388 |
Debit card expense | 228 | 244 | 826 | 740 |
FDIC Insurance | 121 | 108 | 346 | 304 |
Appraisal management fee expense | 2,151 | 1,556 | 7,680 | 4,646 |
Miscellaneous | 2,152 | 1,934 | 6,082 | 5,742 |
Total non-interest expense | 13,455 | 12,568 | 41,039 | 36,968 |
Earnings before income taxes | 6,723 | 4,214 | 15,046 | 15,190 |
Income tax expense | 1,416 | 824 | 3,070 | 3,064 |
Net earnings | $ 5,307 | $ 3,390 | $ 11,976 | $ 12,126 |
Basic net earnings per share | $ 0.96 | $ 0.61 | $ 2.18 | $ 2.16 |
Diluted net earnings per share | 0.93 | 0.59 | 2.11 | 2.10 |
Cash dividends declared per share | $ 0.18 | $ 0.17 | $ 0.69 | $ 0.49 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net earnings | $ 5,307 | $ 3,390 | $ 11,976 | $ 12,126 |
Other comprehensive loss: | ||||
Unrealized holding losses on securities available for sale | (16,578) | (844) | (59,661) | (2,714) |
Income tax benefit related to other comprehensive loss: | ||||
Unrealized holding losses on securities available for sale | (3,808) | (194) | (13,708) | (624) |
Total other comprehensive loss, net of tax | (12,770) | (650) | (45,953) | (2,090) |
Total comprehensive income (loss) | $ (7,463) | $ 2,740 | $ (33,977) | $ 10,036 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Deferred Compensation | Common Stock Held By Deferred Compensation Trust | Accumulated other comprehensive Income (Loss) |
Balance, shares at Dec. 31, 2020 | 5,787,504 | |||||
Balance, amount at Dec. 31, 2020 | $ 139,899 | $ 56,871 | $ 77,628 | $ 1,796 | $ (1,796) | $ 5,400 |
Cash dividends declared on common stock | (930) | $ 0 | (930) | 0 | 0 | 0 |
Restricted stock units exercised, shares | 1,662 | |||||
Restricted stock units exercised, amount | 39 | $ 39 | 0 | 0 | 0 | 0 |
Equity incentive plan, net | 0 | 0 | 0 | 53 | (53) | 0 |
Net earnings | 4,121 | 0 | 4,121 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | (3,100) | $ 0 | 0 | 0 | 0 | (3,100) |
Balance, shares at Mar. 31, 2021 | 5,789,166 | |||||
Balance, amount at Mar. 31, 2021 | 140,029 | $ 56,910 | 80,819 | 1,849 | (1,849) | 2,300 |
Balance, shares at Dec. 31, 2020 | 5,787,504 | |||||
Balance, amount at Dec. 31, 2020 | 139,899 | $ 56,871 | 77,628 | 1,796 | (1,796) | 5,400 |
Change in accumulated other comprehensive loss, net of tax | (2,090) | |||||
Balance, shares at Sep. 30, 2021 | 5,661,569 | |||||
Balance, amount at Sep. 30, 2021 | 143,542 | $ 53,305 | 86,927 | 1,946 | (1,946) | 3,310 |
Balance, shares at Mar. 31, 2021 | 5,789,166 | |||||
Balance, amount at Mar. 31, 2021 | 140,029 | $ 56,910 | 80,819 | 1,849 | (1,849) | 2,300 |
Cash dividends declared on common stock | (930) | 0 | (930) | 0 | 0 | 0 |
Equity incentive plan, net | 0 | 0 | 0 | 52 | (52) | 0 |
Net earnings | 4,615 | 0 | 4,615 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | 1,660 | $ 0 | 0 | 0 | 0 | 1,660 |
Balance, shares at Jun. 30, 2021 | 5,789,166 | |||||
Balance, amount at Jun. 30, 2021 | 145,374 | $ 56,910 | 84,504 | 1,901 | (1,901) | 3,960 |
Cash dividends declared on common stock | (967) | 0 | (967) | 0 | 0 | 0 |
Equity incentive plan, net | 0 | 0 | 0 | 45 | (45) | 0 |
Net earnings | 3,390 | 0 | 3,390 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | (650) | $ 0 | 0 | 0 | 0 | (650) |
Common stock repurchase, shares | 127,597 | |||||
Common stock repurchase, amount | (3,605) | $ (3,605) | 0 | 0 | 0 | 0 |
Balance, shares at Sep. 30, 2021 | 5,661,569 | |||||
Balance, amount at Sep. 30, 2021 | 143,542 | $ 53,305 | 86,927 | 1,946 | (1,946) | 3,310 |
Balance, shares at Dec. 31, 2021 | 5,661,569 | |||||
Balance, amount at Dec. 31, 2021 | 142,369 | $ 53,305 | 88,968 | 1,992 | (1,992) | 96 |
Cash dividends declared on common stock | (1,877) | $ 0 | (1,877) | 0 | 0 | 0 |
Restricted stock units exercised, shares | 1,461 | |||||
Restricted stock units exercised, amount | 41 | $ 41 | 0 | 0 | 0 | 0 |
Equity incentive plan, net | 0 | 0 | 0 | 50 | (50) | 0 |
Net earnings | 3,452 | 0 | 3,452 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | (18,342) | $ 0 | 0 | 0 | 0 | (18,342) |
Common stock repurchase, shares | 7,000 | |||||
Common stock repurchase, amount | (199) | $ (199) | 0 | 0 | 0 | 0 |
Balance, shares at Mar. 31, 2022 | 5,656,030 | |||||
Balance, amount at Mar. 31, 2022 | 125,444 | $ 53,147 | 90,543 | 2,042 | (2,042) | (18,246) |
Balance, shares at Dec. 31, 2021 | 5,661,569 | |||||
Balance, amount at Dec. 31, 2021 | 142,369 | $ 53,305 | 88,968 | 1,992 | (1,992) | 96 |
Change in accumulated other comprehensive loss, net of tax | (45,953) | |||||
Balance, shares at Sep. 30, 2022 | 5,641,030 | |||||
Balance, amount at Sep. 30, 2022 | 103,924 | $ 52,752 | 97,029 | 2,150 | (2,150) | (45,857) |
Balance, shares at Mar. 31, 2022 | 5,656,030 | |||||
Balance, amount at Mar. 31, 2022 | 125,444 | $ 53,147 | 90,543 | 2,042 | (2,042) | (18,246) |
Cash dividends declared on common stock | (1,019) | 0 | (1,019) | 0 | 0 | 0 |
Equity incentive plan, net | 0 | 0 | 0 | 57 | (57) | 0 |
Net earnings | 3,217 | 0 | 3,217 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | (14,841) | $ 0 | 0 | 0 | 0 | (14,841) |
Common stock repurchase, shares | 15,000 | |||||
Common stock repurchase, amount | (395) | $ (395) | 0 | 0 | 0 | 0 |
Balance, shares at Jun. 30, 2022 | 5,641,030 | |||||
Balance, amount at Jun. 30, 2022 | 112,406 | $ 52,752 | 92,741 | 2,099 | (2,099) | (33,087) |
Cash dividends declared on common stock | (1,019) | 0 | (1,019) | 0 | 0 | 0 |
Equity incentive plan, net | 0 | 0 | 0 | 51 | (51) | 0 |
Net earnings | 5,307 | 0 | 5,307 | 0 | 0 | 0 |
Change in accumulated other comprehensive loss, net of tax | (12,770) | $ 0 | 0 | 0 | 0 | (12,770) |
Balance, shares at Sep. 30, 2022 | 5,641,030 | |||||
Balance, amount at Sep. 30, 2022 | $ 103,924 | $ 52,752 | $ 97,029 | $ 2,150 | $ (2,150) | $ (45,857) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net earnings | $ 11,976 | $ 12,126 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 4,914 | 3,991 |
Provision for (recovery of) loan losses | 889 | (863) |
Deferred income taxes | (31) | (27) |
Gain on sale of other real estate | 0 | (21) |
Gain on sale of other assets | 0 | (104) |
Restricted stock expense | (95) | (166) |
Proceeds from sales of mortgage loans held for sale | 20,475 | 76,086 |
Origination of mortgage loans held for sale | (17,813) | (76,033) |
Change in: | ||
Cash surrender value of life insurance | (301) | (297) |
Right of use lease asset | 568 | 562 |
Other assets | (2,944) | 455 |
Lease liability | (556) | (549) |
Other liabilities | 232 | 2,138 |
Net cash provided by operating activities | 17,314 | 17,298 |
Cash flows from investing activities: | ||
Purchases of investment securities available for sale | (139,657) | (186,793) |
Proceeds from sales, calls and maturities of investment securities available for sale | 7,870 | 6,010 |
Proceeds from paydowns of investment securities available for sale | 31,186 | 18,335 |
Proceeds from paydowns on other investments | 1,011 | 132 |
Redemptions (purchases) of FHLB stock | (105) | 331 |
Net change in loans | (120,252) | 57,552 |
Purchases of premises and equipment | (4,196) | (379) |
Proceeds from sale of other assets | 0 | 515 |
Proceeds from sale of other real estate | 0 | 149 |
Proceeds from bank owned life insurance | 65 | 0 |
Net cash used by investing activities | (224,078) | (104,148) |
Cash flows from financing activities: | ||
Net change in deposits | 88,343 | 188,879 |
Net change in securities sold under agreement to repurchase | 892 | 6,131 |
Common stock repurchased | (594) | (3,605) |
Cash dividends paid on common stock | (3,915) | (2,827) |
Net cash provided by financing activities | 84,726 | 188,578 |
Net change in cash and cash equivalents | (122,038) | 101,728 |
Cash and cash equivalents at beginning of period | 277,499 | 161,580 |
Cash and cash equivalents at end of period | 155,461 | 263,308 |
Cash paid during the period for: | ||
Interest | 2,112 | 1,658 |
Income taxes | 3,069 | 3,221 |
Noncash investing and financing activities: | ||
Change in unrealized loss on investment securities available for sale, net | (45,953) | (2,090) |
Issuance of accrued restricted stock units | 41 | 39 |
Transfer of premises and equipment to other assets held for sale | 0 | 408 |
Initial recognition of lease right-of-use asset and lease liability | $ 1,726 | $ 952 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary Of Significant Accounting Policies | (1) Summary of Significant Accounting Policies The Consolidated Financial Statements include the financial statements of Peoples Bancorp of North Carolina, Inc. (the “Company”) and its wholly owned subsidiary, Peoples Bank (the “Bank”), along with the Bank’s wholly owned subsidiaries, Peoples Investment Services, Inc. (“PIS”), Real Estate Advisory Services, Inc. (“REAS”), Community Bank Real Estate Solutions, LLC (“CBRES”) and PB Real Estate Holdings, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. In June 2006, the Company formed a wholly owned Delaware statutory trust, PEBK Capital Trust II (“PEBK Trust II”), to facilitate the issuance of $20.6 million of trust preferred securities. PEBK Trust II is not included in the Consolidated Financial Statements. The Bank operates three banking offices focused on the Latino population that were formerly operated as a separate division of the Bank under the name Banco de la Gente (“Banco”). These offices, which offer the same banking services as our other branches offer, now operate under the same name as our other offices; however, we continue to separately categorize mortgage loans originated from these offices. The Consolidated Financial Statements in this report (other than the Consolidated Balance Sheet at December 31, 2021) are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States (“GAAP”). Actual results could differ from those estimates. The Company’s accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition. Many of the Company’s accounting policies require significant judgment regarding valuation of assets and liabilities and/or significant interpretation of the specific accounting guidance. A description of the Company’s significant accounting policies can be found in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2021 Annual Report to Shareholders which is Appendix A to the Proxy Statement for the 2022 Annual Meeting of Shareholders. Recent Accounting Pronouncements The following table provides a summary of Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has not adopted as of September 30, 2022, which may impact the Company’s financial statements. Recently Issued Accounting Guidance Not Yet Adopted ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2016-13: Measurement of Credit Losses on Financial Instruments Provides guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. See ASU 2019-10 below. The Company will apply this guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company is still evaluating the impact of this guidance on its consolidated financial statements. The Company has formed a Current Expected Credit Losses (“CECL”) committee and implemented a model from a third-party vendor for running CECL calculations. The Company has developed CECL model assumptions and is comparing results to current allowance for loan loss calculations. Parallel processing of the existing allowance for loan losses model with the CECL model will occur during the fourth quarter of 2022. The Company is currently evaluating the impact of this adoption on its financial statements and disclosures and currently expects to record a one-time adjustment to retained earnings to increase the allowance for loan losses. In addition to the Company’s allowance for loan losses, it will also review an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. Based on implementation progress to date, the Company believes the capital adequacy requirements to which it and the Bank are subject to, and its business strategies and practices, will not be materially impacted following the adoption on January 1, 2023. ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses Aligns the implementation date of the topic for annual financial statements of nonpublic companies with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the topic, but rather, should be accounted for in accordance with the leases topic. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Addresses unintended issues accountants flagged when implementing ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, ASU 2016-13, Measurement of Credit Losses on Financial Instruments, and ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-05: Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief Guidance to provide entities with an option to irrevocably elect the fair value option, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-10: Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Guidance to defer the effective dates for private companies, not-for-profit organizations, and certain smaller reporting companies applying standards on current expected credit losses (CECL), leases and hedging. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2019-11: Codification Improvements to Topic 326, Financial Instruments—Credit Losses Guidance that addresses issues raised by stakeholders during the implementation of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect a variety of Topics in the ASC. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2020-03: Codification Improvements to Financial Instruments Guidance to clarify that the contractual term of a net investment in a lease, determined in accordance with the leases standard, should be the contractual term used to measure expected credit losses under ASC 326. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Guidance that provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Therefore, it will be in effect for a limited time through December 31, 2022. March 12, 2020 through December 31, 2022 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2022-02: Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Eliminates the guidance on troubled debt restructurings (TDRs) for creditors in ASC 310-40 2 and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investment Securities | |
Investment Securities | (2) Investment Securities Investment securities available for sale at September 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) September 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 10,946 - 1,169 9,777 U.S. Government sponsored enterprises 12,827 - 685 12,142 Mortgage-backed securities 296,204 271 24,576 271,899 State and political subdivisions 183,924 14 33,389 150,549 Total $ 503,901 285 59,819 444,367 (Dollars in thousands) December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S Treasuries $ 7,964 - 75 7,889 U.S. Government sponsored enterprises 14,252 200 185 14,267 Mortgage-backed securities 218,402 1,769 3,019 217,152 State and political subdivisions 165,804 3,694 2,257 167,241 Total $ 406,422 5,663 5,536 406,549 The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2022 and December 31, 2021 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position. (Dollars in thousands) September 30, 2022 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 2,868 109 6,909 1,060 9,777 1,169 U.S. Government sponsored enterprises 5,098 513 7,044 172 12,142 685 Mortgage-backed securities 136,374 9,243 109,222 15,333 245,596 24,576 State and political subdivisions 90,030 14,557 57,040 18,832 147,070 33,389 Total $ 234,370 24,422 180,215 35,397 414,585 59,819 (Dollars in thousands) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 7,889 75 - - 7,889 75 U.S. Government sponsored enterprises 5,232 15 3,263 170 8,495 185 Mortgage-backed securities 131,483 2,477 19,632 542 151,115 3,019 State and political subdivisions 80,076 1,981 5,922 276 85,998 2,257 Total $ 224,680 4,548 28,817 988 253,497 5,536 At September 30, 2022, unrealized losses in the investment securities portfolio relating to debt securities totaled $59.8 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the September 30, 2022 tables above, all three U.S. Treasury securities, 152 out of 166 securities issued by state and political subdivisions and 127 out of 139 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses. These unrealized losses are considered temporary because of the acceptable financial condition and results of operations of the entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed. At December 31, 2021, unrealized losses in the investment securities portfolio relating to debt securities totaled $5.5 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the December 31, 2021 tables above, both of the U.S. Treasury securities, 70 of the 146 securities issued by state and political subdivisions contained unrealized losses and 54 of the 99 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses. These unrealized losses are considered temporary because of the acceptable financial condition and results of operations of the entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed. The amortized cost and estimated fair value of investment securities available for sale at September 30, 2022, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2022 (Dollars in thousands) Amortized Cost Fair Value Due within one year $ 2,395 2,396 Due from one to five years 9,173 8,962 Due from five to ten years 59,376 51,386 Due after ten years 136,753 109,724 Mortgage-backed securities 296,204 271,899 Total $ 503,901 444,367 No securities available for sale were sold during the three and nine months ended September 30, 2022 and 2021. Securities with a fair value of approximately $101.8 million and $98.6 million at September 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits and for other purposes as required by law. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2022 | |
Loans | |
Loans | (3) Loans Major classifications of loans at September 30, 2022 and December 31, 2021 are summarized as follows: (Dollars in thousands) September 30, 2022 December 31, 2021 Real estate loans: Construction and land development $ 112,854 95,760 Single-family residential 312,208 266,111 Single-family residential - Banco de la Gente non-traditional 20,469 23,147 Commercial 399,015 337,841 Multifamily and farmland 62,040 58,366 Total real estate loans 906,586 781,225 Loans not secured by real estate: Commercial loans 76,434 91,172 Farm loans 961 796 Consumer loans 6,438 6,436 All other loans 14,488 5,240 Total loans 1,004,907 884,869 Less allowance for loan losses (10,030 ) (9,355 ) Total net loans $ 994,877 875,514 The Bank makes loans and extensions of credit primarily within the Catawba Valley region of North Carolina, which encompasses Catawba, Alexander, Iredell and Lincoln counties and also in Mecklenburg, Wake, Rowan and Forsyth counties of North Carolina. Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate, the value of which is dependent upon the real estate market. Risk characteristics of the major components of the Bank’s loan portfolio are discussed below: · Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral. · Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans. · Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. These loans also involve greater risk because they are generally not fully amortizing over the loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property. · Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business. · Multifamily and farmland loans – Decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans. Loans are considered past due if the required principal and interest payments have not been received within 30 days of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Generally, a loan is placed on non-accrual status when it is over 90 days past due and there is reasonable doubt that all principal will be collected. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following tables present an age analysis of past due loans, by loan type, as of September 30, 2022 and December 31, 2021: September 30, 2022 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 513 - 513 112,341 - 112,854 - Single-family residential 1,050 158 1,208 311,000 - 312,208 - Single-family residential - Banco de la Gente non-traditional 602 191 793 19,676 - 20,469 - Commercial 123 - 123 398,892 - 399,015 - Multifamily and farmland - - - 62,040 - 62,040 - Total real estate loans 2,288 349 2,637 903,949 - 906,586 - Loans not secured by real estate: Commercial loans 1,237 - 1,237 75,197 - 76,434 - Farm loans - - - 961 - 961 - Consumer loans 41 3 44 6,394 - 6,438 - All other loans - - - 14,488 - 14,488 - Total loans $ 3,566 352 3,918 1,000,989 - 1,004,907 - December 31, 2021 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ - - - 95,760 95,760 - Single-family residential 2,323 634 2,957 263,154 266,111 - Single-family residential - Banco de la Gente non-traditional 2,593 112 2,705 20,442 23,147 - Commercial 488 - 488 337,353 337,841 - Multifamily and farmland - - - 58,366 58,366 - Total real estate loans 5,404 746 6,150 775,075 781,225 - Loans not secured by real estate: Commercial loans 43 - 43 91,129 91,172 - Farm loans - - - 796 796 - Consumer loans 38 - 38 6,398 6,436 - All other loans - - - 5,240 5,240 - Total loans $ 5,485 746 6,231 878,638 884,869 - The following table presents non-accrual loans as of September 30, 2022 and December 31, 2021: (Dollars in thousands) September 30, 2022 December 31, 2021 Real estate loans: Construction and land development $ - - Single-family residential 1,999 1,642 Single-family residential - Banco de la Gente non-traditional 1,462 1,232 Commercial 133 200 Multifamily and farmland 96 105 Total real estate loans 3,690 3,179 Loans not secured by real estate: Commercial loans - 49 Consumer loans 18 2 Total $ 3,708 3,230 At each reporting period, the Bank determines which loans are impaired. Accordingly, the Bank’s impaired loans are reported at their estimated fair value on a non-recurring basis. An allowance for each impaired loan that is collateral-dependent is calculated based on the fair value of its collateral less estimated selling costs. The fair value of the collateral is based on appraisals performed by REAS, a subsidiary of the Bank. REAS is staffed by certified appraisers that also perform appraisals for other companies. Factors, including the assumptions and techniques utilized by the appraiser, are considered by management. If the recorded investment in the impaired loan exceeds the measure of fair value of the collateral, a valuation allowance is recorded as a component of the allowance for loan losses. An allowance for each impaired loan that is not collateral dependent is calculated based on the present value of projected cash flows. If the recorded investment in the impaired loan exceeds the present value of projected cash flows, a valuation allowance is recorded as a component of the allowance for loan losses. Impaired loans under $250,000 are not individually evaluated for impairment with the exception of the Bank’s Troubled Debt Restructurings (“TDR”) loans in the residential mortgage loan portfolio, which are individually evaluated for impairment. Impaired loans were $15.7 million and $18.3 million at September 30, 2022 and December 31, 2021, respectively. Interest income recognized on accruing impaired loans was $649,000 and $754,000 for the nine months ended September 30, 2022 and 2021, respectively. Interest income recognized on accruing impaired loans was $217,000 and $253,000 for the three months ended September 30, 2022 and the three months ended September 30, 2021, respectively. No interest income is recognized on non-accrual impaired loans subsequent to their classification as non-accrual. The following table presents impaired loans as of September 30, 2022: September 30, 2022 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Real estate loans: Construction and land development $ 59 - 59 59 1 Single-family residential 3,929 240 3,381 3,621 62 Single-family residential - Banco de la Gente non-traditional 10,557 - 9,890 9,890 619 Commercial 1,996 426 1,502 1,928 9 Multifamily and farmland 107 - 96 96 - Total impaired real estate loans 16,648 666 14,928 15,594 691 Loans not secured by real estate: Commercial loans 130 - 130 130 1 Consumer loans 21 - 20 20 - Total impaired loans $ 16,799 666 15,078 15,744 692 The following table presents impaired loans as of and for the year ended December 31, 2021: December 31, 2021 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Real estate loans: Construction and land development $ 73 - 73 73 3 Single-family residential 5,138 524 4,374 4,898 86 Single-family residential - Banco de la Gente non-traditional 11,753 - 10,922 10,922 687 Commercial 2,138 435 1,608 2,043 11 Multifamily and farmland 113 - 105 105 - Total impaired real estate loans 19,215 959 17,082 18,041 787 Loans not secured by real estate: Commercial loans 282 49 170 219 2 Consumer loans 8 - 4 4 - Total impaired loans $ 19,505 1,008 17,256 18,264 789 The following table presents the average impaired loan balance and the interest income recognized by loan class for the three and nine months ended September 30, 2022 and 2021. (Dollars in thousands) Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Real estate loans: Construction and land development $ 60 1 76 1 65 4 91 5 Single-family residential 1,393 51 5,875 49 1,131 150 5,683 166 Single-family residential - Banco de la Gente stated income 12,487 134 10,349 140 13,454 407 11,090 477 Commercial 1,939 25 2,280 20 1,985 75 2,617 85 Multifamily and farmland 97 1 110 2 100 4 113 4 Total impaired real estate loans 15,976 212 18,690 212 16,735 640 19,594 737 Loans not secured by real estate: Commercial loans 138 3 248 5 163 7 330 16 Farm loans (non RE) - - - - - - - Consumer loans 21 1 9 - 14 2 19 1 Total impaired loans $ 16,135 216 18,947 217 16,912 649 19,943 754 Impaired loans collectively evaluated for impairment totaled $5.1 million at September 30, 2022 and December 31, 2021 and are included in the tables above. Allowance on impaired loans collectively evaluated for impairment totaled $44,000 and $52,000 at September 30, 2022 and December 31, 2021, respectively. The following tables present changes in the allowance for loan losses for the three and nine months ended September 30, 2022 and 2021. Unallocated balances in the following tables include allowance for loan losses based on qualitative factors such as economic outlook, concentrations of credit, interest rate risk and loan volume trends. Paycheck Protection Program (“PPP”) loans are excluded from the allowance for loan losses as PPP loans are 100 percent guaranteed by the Small Business Administration (“SBA”). (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 30, 2022: Allowance for loan losses: Beginning balance $ 1,193 2,013 864 2,234 150 711 - 110 2,080 9,355 Charge-offs - (120 ) - - - (20 ) - (450 ) - (590 ) Recoveries - 219 - 6 - 64 - 87 - 376 Provision 180 78 (101 ) 885 5 (14 ) - 467 (611 ) 889 Ending balance $ 1,373 2,190 763 3,125 155 741 - 214 1,469 10,030 Three months ended September 30, 2022: Allowance for loan losses: Beginning balance $ 1,272 2,171 813 3,156 157 633 - 216 1,371 9,789 Charge-offs - (89 ) - - - (13 ) - (204 ) - (306 ) Recoveries - 92 - 2 - 8 - 37 - 139 Provision 101 16 (50 ) (33 ) (2 ) 113 - 165 98 408 Ending balance $ 1,373 2,190 763 3,125 155 741 - 214 1,469 10,030 Allowance for loan losses at September 30, 2022: Ending balance: individually evaluated for impairment $ - 37 605 6 - - - - - 648 Ending balance: collectively evaluated for impairment 1,373 2,153 158 3,119 155 741 - 214 1,469 9,382 Ending balance $ 1,373 2,190 763 3,125 155 741 - 214 1,469 10,030 Loans at September 30, 2022: Ending balance $ 112,854 312,208 20,469 399,015 62,040 76,434 961 20,926 - 1,004,907 Ending balance: individually evaluated for impairment $ - 547 8,703 1,401 - - - - - 10,651 Ending balance: collectively evaluated for impairment $ 112,854 311,661 11,766 397,614 62,040 76,434 961 20,926 - 994,256 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 30, 2021: Allowance for loan losses: Beginning balance $ 1,196 1,843 1,052 2,212 122 1,345 - 128 2,010 9,908 Charge-offs - - - - - (293 ) - (249 ) - (542 ) Recoveries 121 165 - 50 3 7 - 114 - 460 Provision (421 ) (306 ) (162 ) 46 22 (153 ) - 98 13 (863 ) Ending balance $ 896 1,702 890 2,308 147 906 - 91 2,023 8,963 Three months ended September 30, 2021: Allowance for loan losses: Beginning balance $ 1,038 1,723 980 2,180 148 996 - 89 2,133 9,287 Charge-offs - - - - - (215 ) - (91 ) - (306 ) Recoveries 31 86 - 2 4 1 - 40 - 164 Provision (173 ) (107 ) (90 ) 126 (5 ) 124 - 53 (110 ) (182 ) Ending balance $ 896 1,702 890 2,308 147 906 - 91 2,023 8,963 Allowance for loan losses at September 30, 2021: Ending balance: individually evaluated for impairment $ 1 58 710 7 - - - - - 776 Ending balance: collectively evaluated for impairment 895 1,644 180 2,301 147 906 - 91 2,023 8,187 Ending balance $ 896 1,702 890 2,308 147 906 - 91 2,023 8,963 Loans at September 30, 2021: Ending balance $ 80,009 258,403 24,043 363,174 58,856 94,376 633 11,511 - 891,005 Ending balance: individually evaluated for impairment $ 6 1,398 10,236 1,450 - 54 - - - 13,144 Ending balance: collectively evaluated for impairment $ 80,003 257,005 13,807 361,724 58,856 94,322 633 11,511 - 877,861 The Bank utilizes an internal risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 8. These risk grades are evaluated on an ongoing basis. A description of the general characteristics of the eight risk grades is as follows: · Risk Grade 1 – Excellent Quality: Loans are well above average quality and a minimal amount of credit risk exists. CD or cash secured loans or properly margined actively traded stock or bond secured loans would fall in this grade. · Risk Grade 2 – High Quality: Loans are of good quality with risk levels well within the Bank’s range of acceptability. The organization or individual is established with a history of successful performance though somewhat susceptible to economic changes. · Risk Grade 3 – Good Quality: Loans of average quality with risk levels within the Bank’s range of acceptability but higher than normal. This may be a new organization or an existing organization in a transitional phase (e.g. expansion, acquisition, market change). PPP loans are classified as risk grade 3. · Risk Grade 4 – Management Attention: These loans have higher risk and servicing needs but still are acceptable. Evidence of marginal performance or deteriorating trends is observed. These are not problem credits presently, but may be in the future if the borrower is unable to change its present course. · Risk Grade 5 – Watch: These loans are currently performing satisfactorily, but there has been some recent past due history on repayment and there are potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date. · Risk Grade 6 – Substandard: A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged (if there is any). There is a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. · Risk Grade 7 – Doubtful: Loans classified as Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Doubtful is a temporary grade where a loss is expected but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is charged off. · Risk Grade 8 – Loss: Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be realized in the future. Loss is a temporary grade until the appropriate authority is obtained to charge the loan off. The following tables present the credit risk profile of each loan type based on internally assigned risk grades as of September 30, 2022 and December 31, 2021: September 30, 2022 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 3,808 - - - 1,381 - 523 - 5,712 2- High Quality 18,162 129,784 - 30,197 17 16,163 - 2,064 1,427 197,814 3- Good Quality 93,266 163,179 7,777 334,206 59,539 56,973 961 3,600 12,782 732,283 4- Management Attention 1,307 11,046 9,130 31,732 1,869 1,127 - 225 133 56,569 5- Watch 60 915 1,150 2,321 519 786 - - 146 5,897 6- Substandard 59 3,476 2,412 559 96 4 - 26 - 6,632 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 112,854 312,208 20,469 399,015 62,040 76,434 961 6,438 14,488 1,004,907 December 31, 2021 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 5,923 - - - 371 - 581 - 6,875 2- High Quality 11,752 109,337 - 28,546 19 16,177 - 2,039 1,309 169,179 3- Good Quality 80,325 129,856 8,712 272,786 54,945 68,183 792 3,510 3,931 623,040 4- Management Attention 3,534 14,964 10,478 30,937 2,754 5,214 4 284 - 68,169 5- Watch 76 2,464 1,703 4,938 543 1,177 - 1 - 10,902 6- Substandard 73 3,567 2,254 634 105 50 - 21 - 6,704 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 95,760 266,111 23,147 337,841 58,366 91,172 796 6,436 5,240 884,869 There were no new TDR modifications during the three and nine months ended September 30, 2022 and 2021. There were no loans modified as TDR loans that defaulted during the nine months ended September 30, 2022 and 2021, which were within 12 months of their modification date. On March 27, 2020, President Trump signed the CARES Act, which established a $2 trillion economic stimulus package, including cash payments to individuals, supplemental unemployment insurance benefits and a $349 billion loan program administered through the PPP. Under the PPP, small businesses, sole proprietorships, independent contractors and self-employed individuals were able to apply for loans from existing SBA lenders and other approved regulated lenders, subject to certain limitations and eligibility criteria. A second round of PPP funding provided a total of $320 billion additional funding for the PPP. The Bank participated as a lender in the PPP. Total PPP loans originated during the years ended December 31, 2020 and 2021 amounted to $128.1 million. The outstanding balance of PPP loans was $103,000 and $18.0 million at September 30, 2022 and December 31, 2021, respectively. These loans are classified as commercial loans in the tables above. The Bank recognized $54,000 and $489,000 of PPP loan fee income for the three months ended September 30, 2022 and the three months ended September 30, 2021, respectively. The Bank recognized $948,000 and $3.0 million of PPP loan fee income for the nine months ended September 30, 2022 and nine months ended September 30, 2021, respectively. |
Net Earnings Per Share
Net Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Net Earnings Per Share | |
Net Earnings Per Share | (4) Net Earnings Per Share Net earnings per share is based on the weighted average number of shares outstanding during the period while the effects of potential shares outstanding during the period are included in diluted earnings per share. The average market price during the applicable period is used to compute equivalent shares. The reconciliation of the amounts used in the computation of both “basic earnings per share” and “diluted earnings per share” for the three and nine months ended September 30, 2022 and 2021 is as follows: For the three months ended September 30, 2022 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 5,307 5,473,443 $ 0.96 Effect of dilutive securities: Restricted stock units - unvested 17,188 Shares held in deferred comp plan by deferred compensation trust 166,937 Diluted earnings per share $ 5,307 5,657,568 $ 0.93 For the nine months ended September 30, 2022 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 11,976 5,484,063 $ 2.18 Effect of dilutive securities: Restricted stock units - unvested 15,090 Shares held in deferred comp plan by deferred compensation trust 165,041 Diluted earnings per share $ 11,976 5,664,194 $ 2.11 For the three months ended September 30, 2021 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,390 5,544,596 $ 0.61 Effect of dilutive securities: Restricted stock units - unvested - 14,690 Shares held in deferred comp plan by deferred compensation trust 159,797 Diluted earnings per share $ 3,390 5,719,083 $ 0.59 For the nine months ended September 30, 2021 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 12,126 5,601,879 $ 2.16 Effect of dilutive securities: Restricted stock units - unvested - 13,190 Shares held in deferred comp plan by deferred compensation trust 158,039 Diluted earnings per share $ 12,126 5,773,108 $ 2.10 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value | |
Fair Value | (5) Fair Value The Company is required to disclose fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good faith estimate of the increase or decrease in the value of financial instruments held by the Company since purchase, origination, or issuance. The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: · Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. · Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. · Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Cash and Cash Equivalents For cash, due from banks and interest-bearing deposits, the carrying amount is a reasonable estimate of fair value. Cash and cash equivalents are reported in the Level 1 fair value category. Investment Securities Available for Sale Fair values of investment securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges when available. If quoted prices are not available, fair value is determined using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Fair values for investment securities with quoted market prices are reported in the Level 1 fair value category. Fair value measurements obtained from independent pricing services are reported in the Level 2 fair value category. All other fair value measurements are reported in the Level 3 fair value category. Other Investments For other investments, the carrying value is a reasonable estimate of fair value. Other investments are reported in the Level 3 fair value category. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at lower of aggregate cost or market value. The cost of mortgage loans held for sale approximates the market value. Mortgage loans held for sale are reported in the Level 3 fair value category. Loans The fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans. Loans are reported in the Level 3 fair value category, as the pricing of loans is more subjective than the pricing of other financial instruments. Mutual Funds For mutual funds held in the deferred compensation trust, the carrying value is a reasonable estimate of fair value. Mutual funds held in the deferred compensation trust are included in other assets on the balance sheet and reported in the Level 2 fair value category. Deposits The fair value of demand deposits, interest-bearing demand deposits and savings is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Deposits are reported in the Level 3 fair value category. Securities Sold Under Agreements to Repurchase For securities sold under agreements to repurchase, the carrying value is a reasonable estimate of fair value. Securities sold under agreements to repurchase are reported in the Level 2 fair value category. FHLB Borrowings The fair value of FHLB borrowings is estimated based upon discounted future cash flows using a discount rate comparable to the current market rate for such borrowings. FHLB borrowings are reported in the Level 3 fair value category. Junior Subordinated Debentures Because the Company’s junior subordinated debentures were issued at a floating rate, the carrying amount is a reasonable estimate of fair value. Junior subordinated debentures are reported in the Level 2 fair value category. Commitments to Extend Credit and Standby Letters of Credit Commitments to extend credit and standby letters of credit are generally short-term and at variable interest rates. Therefore, both the carrying value and estimated fair value associated with these instruments are immaterial. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The tables below present all financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy, as of September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, 2022 Fair Value Level 1 Valuation Level 2 Valuation Level 3 Valuation U.S. Treasuries $ 9,777 - 9,777 - U.S. Government sponsored enterprises $ 12,142 - 12,142 - Mortgage-backed securities $ 271,899 - 271,899 - State and political subdivisions $ 150,549 - 150,549 - Mutual funds held in deferred compensation trust $ 1,218 - 1,218 (Dollars in thousands) December 31, 2021 Fair Value Level 1 Valuation Level 2 Valuation Level 3 Valuation U.S. Treasuries $ 7,889 - 7,889 - U.S. Government sponsored enterprises $ 14,267 - 14,267 - Mortgage-backed securities $ 217,152 - 217,152 - State and political subdivisions $ 167,241 - 167,241 - Mutual funds held in deferred compensation trust $ 1,510 - 1,510 - The fair value measurements for mortgage loans held for sale and impaired loans on a non-recurring basis at September 30, 2022 and December 31, 2021 are presented below. The fair value measurement process uses certified appraisals and other market-based information; however, in many cases, it also requires significant input based on management’s knowledge of, and judgment about, current market conditions, specific issues relating to the collateral and other matters. As a result, all fair value measurements for impaired loans and other real estate are considered Level 3. (Dollars in thousands) Fair Value Measurements September 30, 2022 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 975 - - 975 Impaired loans $ 15,052 - - 15,052 (Dollars in thousands) Fair Value Measurements December 31, 2021 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 3,637 - - 3,637 Impaired loans $ 17,475 - - 17,475 (Dollars in thousands) Fair Value September 30, 2022 Fair Value December 31, 2021 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Mortgage loans held for sale $ 975 3,637 Rate lock commitment N/A N/A Impaired loans $ 15,052 17,475 Appraised value and discounted cash flows Discounts to reflect current market conditions and ultimate collectability 0 - 25% The carrying amount and estimated fair value of financial instruments at September 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) Fair Value Measurements at September 30, 2022 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 155,461 155,461 - - 155,461 Investment securities available for sale 444,367 - 444,367 - 444,367 Other investments 2,762 - - 2,762 2,762 Mortgage loans held for sale 975 - - 975 975 Loans, net 994,877 - - 970,038 970,038 Mutual funds held in deferred compensation trust 1,288 - 1,288 - 1,288 Liabilities: Deposits $ 1,501,091 - - 1,500,613 1,500,613 Securities sold under agreements to repurchase 37,986 - 37,986 - 37,986 Junior subordinated debentures 15,464 - 15,464 - 15,464 (Dollars in thousands) Fair Value Measurements at December 31, 2021 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 277,499 277,499 - - 277,499 Investment securities available for sale 406,549 - 406,549 - 406,549 Other investments 3,668 - - 3,668 3,668 Mortgage loans held for sale 3,637 - - 3,637 3,637 Loans, net 875,514 - - 855,814 855,814 Mutual funds held in deferred compensation trust 1,510 - 1,510 - 1,510 Liabilities: Deposits $ 1,412,748 - - 1,401,833 1,401,833 Securities sold under agreements to repurchase 37,094 - 37,094 - 37,094 Junior subordinated debentures 15,464 - 15,464 - 15,464 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Leases | (6) Leases As of September 30, 2022, the Bank had operating right of use assets of $5.8 million and operating lease liabilities of $5.8 million. The Bank maintains operating leases on land and buildings for some of the Bank’s branch facilities and loan production offices. Most leases include one option to renew, with renewal terms extending up to 15 years. The exercise of renewal options is based on the judgment of management as to whether or not the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Bank if the option is not exercised. Leases with a term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term. The following table presents lease cost and other lease information as of September 30, 2022 and 2021. (Dollars in thousands) September 30, 2022 September 30, 2021 Operating lease cost $ 617 $ 538 Other information: Cash paid for amounts included in the measurement of lease liabilities 605 520 Operating cash flows from operating leases - - Right-of-use assets obtained in exchange for new lease liabilities - operating leases 1,726 952 Weighted-average remaining lease term - operating leases 9.01 6.72 Weighted-average discount rate - operating leases 2.30 % 2.71 % The following table presents lease maturities as of September 30, 2022 and December 31, 2021. (Dollars in thousands) Maturity Analysis of Operating Lease Liabilities: September 30,2022 2022 $ 229 2023 922 2024 867 2025 812 2026 694 Thereafter 2,975 Total 6,499 Less: Imputed Interest (652 ) Operating Lease Liability $ 5,847 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events | |
Subsequent Events | (7) Subsequent Events The Company has reviewed and evaluated subsequent events and transactions for material subsequent events through the date the financial statements are issued. Management has concluded that there were no material subsequent events. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Recent Accounting Pronouncements | The following table provides a summary of Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has not adopted as of September 30, 2022, which may impact the Company’s financial statements. Recently Issued Accounting Guidance Not Yet Adopted ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2016-13: Measurement of Credit Losses on Financial Instruments Provides guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. See ASU 2019-10 below. The Company will apply this guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company is still evaluating the impact of this guidance on its consolidated financial statements. The Company has formed a Current Expected Credit Losses (“CECL”) committee and implemented a model from a third-party vendor for running CECL calculations. The Company has developed CECL model assumptions and is comparing results to current allowance for loan loss calculations. Parallel processing of the existing allowance for loan losses model with the CECL model will occur during the fourth quarter of 2022. The Company is currently evaluating the impact of this adoption on its financial statements and disclosures and currently expects to record a one-time adjustment to retained earnings to increase the allowance for loan losses. In addition to the Company’s allowance for loan losses, it will also review an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. Based on implementation progress to date, the Company believes the capital adequacy requirements to which it and the Bank are subject to, and its business strategies and practices, will not be materially impacted following the adoption on January 1, 2023. ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses Aligns the implementation date of the topic for annual financial statements of nonpublic companies with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the topic, but rather, should be accounted for in accordance with the leases topic. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Addresses unintended issues accountants flagged when implementing ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, ASU 2016-13, Measurement of Credit Losses on Financial Instruments, and ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-05: Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief Guidance to provide entities with an option to irrevocably elect the fair value option, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments. See ASU 2019-10 below. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. See ASU 2016-13 above. ASU 2019-10: Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Guidance to defer the effective dates for private companies, not-for-profit organizations, and certain smaller reporting companies applying standards on current expected credit losses (CECL), leases and hedging. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2019-11: Codification Improvements to Topic 326, Financial Instruments—Credit Losses Guidance that addresses issues raised by stakeholders during the implementation of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect a variety of Topics in the ASC. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2020-03: Codification Improvements to Financial Instruments Guidance to clarify that the contractual term of a net investment in a lease, determined in accordance with the leases standard, should be the contractual term used to measure expected credit losses under ASC 326. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Guidance that provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Therefore, it will be in effect for a limited time through December 31, 2022. March 12, 2020 through December 31, 2022 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2022-02: Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Eliminates the guidance on troubled debt restructurings (TDRs) for creditors in ASC 310-40 2 and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. January 1, 2023 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investment Securities | |
Investment Securities Available For Sale | (Dollars in thousands) September 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 10,946 - 1,169 9,777 U.S. Government sponsored enterprises 12,827 - 685 12,142 Mortgage-backed securities 296,204 271 24,576 271,899 State and political subdivisions 183,924 14 33,389 150,549 Total $ 503,901 285 59,819 444,367 (Dollars in thousands) December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S Treasuries $ 7,964 - 75 7,889 U.S. Government sponsored enterprises 14,252 200 185 14,267 Mortgage-backed securities 218,402 1,769 3,019 217,152 State and political subdivisions 165,804 3,694 2,257 167,241 Total $ 406,422 5,663 5,536 406,549 |
Current Fair Value And Associated Unrealized Losses On Investments In Securities With Unrealized Losses | (Dollars in thousands) September 30, 2022 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 2,868 109 6,909 1,060 9,777 1,169 U.S. Government sponsored enterprises 5,098 513 7,044 172 12,142 685 Mortgage-backed securities 136,374 9,243 109,222 15,333 245,596 24,576 State and political subdivisions 90,030 14,557 57,040 18,832 147,070 33,389 Total $ 234,370 24,422 180,215 35,397 414,585 59,819 (Dollars in thousands) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 7,889 75 - - 7,889 75 U.S. Government sponsored enterprises 5,232 15 3,263 170 8,495 185 Mortgage-backed securities 131,483 2,477 19,632 542 151,115 3,019 State and political subdivisions 80,076 1,981 5,922 276 85,998 2,257 Total $ 224,680 4,548 28,817 988 253,497 5,536 |
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Contractual Maturity | September 30, 2022 (Dollars in thousands) Amortized Cost Fair Value Due within one year $ 2,395 2,396 Due from one to five years 9,173 8,962 Due from five to ten years 59,376 51,386 Due after ten years 136,753 109,724 Mortgage-backed securities 296,204 271,899 Total $ 503,901 444,367 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Loans | |
Schedule of Major Classifications Of Loans | (Dollars in thousands) September 30, 2022 December 31, 2021 Real estate loans: Construction and land development $ 112,854 95,760 Single-family residential 312,208 266,111 Single-family residential - Banco de la Gente non-traditional 20,469 23,147 Commercial 399,015 337,841 Multifamily and farmland 62,040 58,366 Total real estate loans 906,586 781,225 Loans not secured by real estate: Commercial loans 76,434 91,172 Farm loans 961 796 Consumer loans 6,438 6,436 All other loans 14,488 5,240 Total loans 1,004,907 884,869 Less allowance for loan losses (10,030 ) (9,355 ) Total net loans $ 994,877 875,514 |
Age Analysis Of Past Due Loans, By Loan Type | September 30, 2022 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 513 - 513 112,341 - 112,854 - Single-family residential 1,050 158 1,208 311,000 - 312,208 - Single-family residential - Banco de la Gente non-traditional 602 191 793 19,676 - 20,469 - Commercial 123 - 123 398,892 - 399,015 - Multifamily and farmland - - - 62,040 - 62,040 - Total real estate loans 2,288 349 2,637 903,949 - 906,586 - Loans not secured by real estate: Commercial loans 1,237 - 1,237 75,197 - 76,434 - Farm loans - - - 961 - 961 - Consumer loans 41 3 44 6,394 - 6,438 - All other loans - - - 14,488 - 14,488 - Total loans $ 3,566 352 3,918 1,000,989 - 1,004,907 - December 31, 2021 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ - - - 95,760 95,760 - Single-family residential 2,323 634 2,957 263,154 266,111 - Single-family residential - Banco de la Gente non-traditional 2,593 112 2,705 20,442 23,147 - Commercial 488 - 488 337,353 337,841 - Multifamily and farmland - - - 58,366 58,366 - Total real estate loans 5,404 746 6,150 775,075 781,225 - Loans not secured by real estate: Commercial loans 43 - 43 91,129 91,172 - Farm loans - - - 796 796 - Consumer loans 38 - 38 6,398 6,436 - All other loans - - - 5,240 5,240 - Total loans $ 5,485 746 6,231 878,638 884,869 - |
Non-accrual Loans | (Dollars in thousands) September 30, 2022 December 31, 2021 Real estate loans: Construction and land development $ - - Single-family residential 1,999 1,642 Single-family residential - Banco de la Gente non-traditional 1,462 1,232 Commercial 133 200 Multifamily and farmland 96 105 Total real estate loans 3,690 3,179 Loans not secured by real estate: Commercial loans - 49 Consumer loans 18 2 Total $ 3,708 3,230 |
Impaired Loans | September 30, 2022 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Real estate loans: Construction and land development $ 59 - 59 59 1 Single-family residential 3,929 240 3,381 3,621 62 Single-family residential - Banco de la Gente non-traditional 10,557 - 9,890 9,890 619 Commercial 1,996 426 1,502 1,928 9 Multifamily and farmland 107 - 96 96 - Total impaired real estate loans 16,648 666 14,928 15,594 691 Loans not secured by real estate: Commercial loans 130 - 130 130 1 Consumer loans 21 - 20 20 - Total impaired loans $ 16,799 666 15,078 15,744 692 December 31, 2021 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Real estate loans: Construction and land development $ 73 - 73 73 3 Single-family residential 5,138 524 4,374 4,898 86 Single-family residential - Banco de la Gente non-traditional 11,753 - 10,922 10,922 687 Commercial 2,138 435 1,608 2,043 11 Multifamily and farmland 113 - 105 105 - Total impaired real estate loans 19,215 959 17,082 18,041 787 Loans not secured by real estate: Commercial loans 282 49 170 219 2 Consumer loans 8 - 4 4 - Total impaired loans $ 19,505 1,008 17,256 18,264 789 |
Summary of average impaired loans balance | (Dollars in thousands) Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Real estate loans: Construction and land development $ 60 1 76 1 65 4 91 5 Single-family residential 1,393 51 5,875 49 1,131 150 5,683 166 Single-family residential - Banco de la Gente stated income 12,487 134 10,349 140 13,454 407 11,090 477 Commercial 1,939 25 2,280 20 1,985 75 2,617 85 Multifamily and farmland 97 1 110 2 100 4 113 4 Total impaired real estate loans 15,976 212 18,690 212 16,735 640 19,594 737 Loans not secured by real estate: Commercial loans 138 3 248 5 163 7 330 16 Farm loans (non RE) - - - - - - - Consumer loans 21 1 9 - 14 2 19 1 Total impaired loans $ 16,135 216 18,947 217 16,912 649 19,943 754 |
Changes In The Allowance For Loan Losses | (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 30, 2021: Allowance for loan losses: Beginning balance $ 1,196 1,843 1,052 2,212 122 1,345 - 128 2,010 9,908 Charge-offs - - - - - (293 ) - (249 ) - (542 ) Recoveries 121 165 - 50 3 7 - 114 - 460 Provision (421 ) (306 ) (162 ) 46 22 (153 ) - 98 13 (863 ) Ending balance $ 896 1,702 890 2,308 147 906 - 91 2,023 8,963 Three months ended September 30, 2021: Allowance for loan losses: Beginning balance $ 1,038 1,723 980 2,180 148 996 - 89 2,133 9,287 Charge-offs - - - - - (215 ) - (91 ) - (306 ) Recoveries 31 86 - 2 4 1 - 40 - 164 Provision (173 ) (107 ) (90 ) 126 (5 ) 124 - 53 (110 ) (182 ) Ending balance $ 896 1,702 890 2,308 147 906 - 91 2,023 8,963 Allowance for loan losses at September 30, 2021: Ending balance: individually evaluated for impairment $ 1 58 710 7 - - - - - 776 Ending balance: collectively evaluated for impairment 895 1,644 180 2,301 147 906 - 91 2,023 8,187 Ending balance $ 896 1,702 890 2,308 147 906 - 91 2,023 8,963 Loans at September 30, 2021: Ending balance $ 80,009 258,403 24,043 363,174 58,856 94,376 633 11,511 - 891,005 Ending balance: individually evaluated for impairment $ 6 1,398 10,236 1,450 - 54 - - - 13,144 Ending balance: collectively evaluated for impairment $ 80,003 257,005 13,807 361,724 58,856 94,322 633 11,511 - 877,861 |
Credit Risk Profile Of Each Loan Type Based On Internally Assigned Risk Grade | September 30, 2022 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 3,808 - - - 1,381 - 523 - 5,712 2- High Quality 18,162 129,784 - 30,197 17 16,163 - 2,064 1,427 197,814 3- Good Quality 93,266 163,179 7,777 334,206 59,539 56,973 961 3,600 12,782 732,283 4- Management Attention 1,307 11,046 9,130 31,732 1,869 1,127 - 225 133 56,569 5- Watch 60 915 1,150 2,321 519 786 - - 146 5,897 6- Substandard 59 3,476 2,412 559 96 4 - 26 - 6,632 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 112,854 312,208 20,469 399,015 62,040 76,434 961 6,438 14,488 1,004,907 December 31, 2021 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 5,923 - - - 371 - 581 - 6,875 2- High Quality 11,752 109,337 - 28,546 19 16,177 - 2,039 1,309 169,179 3- Good Quality 80,325 129,856 8,712 272,786 54,945 68,183 792 3,510 3,931 623,040 4- Management Attention 3,534 14,964 10,478 30,937 2,754 5,214 4 284 - 68,169 5- Watch 76 2,464 1,703 4,938 543 1,177 - 1 - 10,902 6- Substandard 73 3,567 2,254 634 105 50 - 21 - 6,704 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 95,760 266,111 23,147 337,841 58,366 91,172 796 6,436 5,240 884,869 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Net Earnings Per Share (Tables) | |
Reconciliations Of The Amounts Used In The Computation Of Both Basic Earnings Per Common Share And Diluted Earnings Per Common Share | For the three months ended September 30, 2022 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 5,307 5,473,443 $ 0.96 Effect of dilutive securities: Restricted stock units - unvested 17,188 Shares held in deferred comp plan by deferred compensation trust 166,937 Diluted earnings per share $ 5,307 5,657,568 $ 0.93 For the nine months ended September 30, 2022 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 11,976 5,484,063 $ 2.18 Effect of dilutive securities: Restricted stock units - unvested 15,090 Shares held in deferred comp plan by deferred compensation trust 165,041 Diluted earnings per share $ 11,976 5,664,194 $ 2.11 For the three months ended September 30, 2021 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,390 5,544,596 $ 0.61 Effect of dilutive securities: Restricted stock units - unvested - 14,690 Shares held in deferred comp plan by deferred compensation trust 159,797 Diluted earnings per share $ 3,390 5,719,083 $ 0.59 For the nine months ended September 30, 2021 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 12,126 5,601,879 $ 2.16 Effect of dilutive securities: Restricted stock units - unvested - 13,190 Shares held in deferred comp plan by deferred compensation trust 158,039 Diluted earnings per share $ 12,126 5,773,108 $ 2.10 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value | |
Available For Sale Securities Measured At Fair Value On A Recurring Basis | (Dollars in thousands) September 30, 2022 Fair Value Level 1 Valuation Level 2 Valuation Level 3 Valuation U.S. Treasuries $ 9,777 - 9,777 - U.S. Government sponsored enterprises $ 12,142 - 12,142 - Mortgage-backed securities $ 271,899 - 271,899 - State and political subdivisions $ 150,549 - 150,549 - Mutual funds held in deferred compensation trust $ 1,218 - 1,218 (Dollars in thousands) December 31, 2021 Fair Value Level 1 Valuation Level 2 Valuation Level 3 Valuation U.S. Treasuries $ 7,889 - 7,889 - U.S. Government sponsored enterprises $ 14,267 - 14,267 - Mortgage-backed securities $ 217,152 - 217,152 - State and political subdivisions $ 167,241 - 167,241 - Mutual funds held in deferred compensation trust $ 1,510 - 1,510 - |
Summary of Fair Value Measurements Of Investment Securities Available For Sale Using Level 3 Significant Unobservable Inputs | (Dollars in thousands) Fair Value Measurements September 30, 2022 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 975 - - 975 Impaired loans $ 15,052 - - 15,052 (Dollars in thousands) Fair Value Measurements December 31, 2021 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 3,637 - - 3,637 Impaired loans $ 17,475 - - 17,475 (Dollars in thousands) Fair Value September 30, 2022 Fair Value December 31, 2021 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Mortgage loans held for sale $ 975 3,637 Rate lock commitment N/A N/A Impaired loans $ 15,052 17,475 Appraised value and discounted cash flows Discounts to reflect current market conditions and ultimate collectability 0 - 25% |
Summary of Carrying Amount And Estimated Fair Value Of The Company's Financial Instruments | (Dollars in thousands) Fair Value Measurements at September 30, 2022 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 155,461 155,461 - - 155,461 Investment securities available for sale 444,367 - 444,367 - 444,367 Other investments 2,762 - - 2,762 2,762 Mortgage loans held for sale 975 - - 975 975 Loans, net 994,877 - - 970,038 970,038 Mutual funds held in deferred compensation trust 1,288 - 1,288 - 1,288 Liabilities: Deposits $ 1,501,091 - - 1,500,613 1,500,613 Securities sold under agreements to repurchase 37,986 - 37,986 - 37,986 Junior subordinated debentures 15,464 - 15,464 - 15,464 (Dollars in thousands) Fair Value Measurements at December 31, 2021 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 277,499 277,499 - - 277,499 Investment securities available for sale 406,549 - 406,549 - 406,549 Other investments 3,668 - - 3,668 3,668 Mortgage loans held for sale 3,637 - - 3,637 3,637 Loans, net 875,514 - - 855,814 855,814 Mutual funds held in deferred compensation trust 1,510 - 1,510 - 1,510 Liabilities: Deposits $ 1,412,748 - - 1,401,833 1,401,833 Securities sold under agreements to repurchase 37,094 - 37,094 - 37,094 Junior subordinated debentures 15,464 - 15,464 - 15,464 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Lease Expense | (Dollars in thousands) September 30, 2022 September 30, 2021 Operating lease cost $ 617 $ 538 Other information: Cash paid for amounts included in the measurement of lease liabilities 605 520 Operating cash flows from operating leases - - Right-of-use assets obtained in exchange for new lease liabilities - operating leases 1,726 952 Weighted-average remaining lease term - operating leases 9.01 6.72 Weighted-average discount rate - operating leases 2.30 % 2.71 % |
Maturity Analysis Of Operating Lease Liabilities | (Dollars in thousands) Maturity Analysis of Operating Lease Liabilities: September 30,2022 2022 $ 229 2023 922 2024 867 2025 812 2026 694 Thereafter 2,975 Total 6,499 Less: Imputed Interest (652 ) Operating Lease Liability $ 5,847 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) $ in Thousands | Sep. 30, 2022 USD ($) |
Summary of Significant Accounting Policies | |
Issuance Preferred Securities | $ 2,060 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Amortized Cost | $ 503,901,000 | $ 406,422,000 |
Gross Unrealized Gains | 285,000 | 5,663,000 |
Gross Unrealized Losses | 59,819,000 | 5,536,000 |
Estimated Fair Value | 444,367,000 | 406,549,000 |
U.S. Government sponsored enterprises | ||
Amortized Cost | 12,827,000 | 14,252,000 |
Gross Unrealized Gains | 0 | 200,000 |
Gross Unrealized Losses | 685,000 | 185,000 |
Estimated Fair Value | 12,142,000 | 14,267,000 |
Mortgage-backed securities | ||
Amortized Cost | 296,204,000 | 218,402,000 |
Gross Unrealized Gains | 0 | 1,769,000 |
Gross Unrealized Losses | 24,576,000 | 3,019,000 |
Estimated Fair Value | 271,899,000 | 217,152,000 |
State and political subdivisions | ||
Amortized Cost | 183,924,000 | 165,804,000 |
Gross Unrealized Gains | 14,000 | 3,694,000 |
Gross Unrealized Losses | 33,389,000 | 2,257,000 |
Estimated Fair Value | 150,549,000 | 167,241,000 |
U.S Treasuries [Member] | ||
Amortized Cost | 10,946,000 | 7,964,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,169,000 | 75,000 |
Estimated Fair Value | $ 9,777,000 | $ 7,889,000 |
Investment securities (Details
Investment securities (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Less Than 12 Months, Fair Value | $ 234,370 | $ 224,680 |
Less Than 12 Months, Unrealized Losses | 24,422 | 4,548 |
12 Months Or More, Fair Value | 180,215 | 28,817 |
12 Months Or More, Unrealized Losses | 35,397 | 988 |
Total, Fair Value | 414,585 | 253,497 |
Total, Unrealized Losses | 59,819 | 5,536 |
U.S. Government Sponsored Enterprises | ||
Less Than 12 Months, Fair Value | 5,098 | 5,232 |
Less Than 12 Months, Unrealized Losses | 513 | 15 |
12 Months Or More, Fair Value | 7,044 | 3,263 |
12 Months Or More, Unrealized Losses | 172 | 170 |
Total, Fair Value | 12,142 | 8,495 |
Total, Unrealized Losses | 685 | 185 |
Mortgage-backed securities | ||
Less Than 12 Months, Fair Value | 136,374 | 131,483 |
Less Than 12 Months, Unrealized Losses | 9,243 | 2,477 |
12 Months Or More, Fair Value | 109,222 | 19,632 |
12 Months Or More, Unrealized Losses | 15,333 | 542 |
Total, Fair Value | 245,596 | 151,115 |
Total, Unrealized Losses | 24,576 | 3,019 |
State and political subdivisions | ||
Less Than 12 Months, Fair Value | 90,030 | 80,076 |
Less Than 12 Months, Unrealized Losses | 14,557 | 1,981 |
12 Months Or More, Fair Value | 57,040 | 5,922 |
12 Months Or More, Unrealized Losses | 18,832 | 276 |
Total, Fair Value | 147,070 | 85,998 |
Total, Unrealized Losses | 33,389 | 2,257 |
US Treasury Securities [Member] | ||
Less Than 12 Months, Fair Value | 2,868 | 7,889 |
Less Than 12 Months, Unrealized Losses | 109 | 75 |
12 Months Or More, Fair Value | 6,909 | 0 |
12 Months Or More, Unrealized Losses | 1,060 | 0 |
Total, Fair Value | 9,777 | 7,889 |
Total, Unrealized Losses | $ 1,169 | $ 75 |
Investment securities (Detail_2
Investment securities (Details 2) $ in Thousands | Sep. 30, 2022 USD ($) |
Amortized Cost | |
Due Within One Year | $ 2,395 |
Due From One To Five Years | 9,173 |
Due From Five To Ten Years | 59,376 |
Due After Ten Years | 136,753 |
Mortgage-backed Securities | 296,204 |
Total | 503,901 |
Estimated Fair Value | |
Due Within One Year | 2,396 |
Due From One To Five Years | 8,962 |
Due From Five To Ten Years | 51,386 |
Due After Ten Years | 109,724 |
Mortgage-backed Securities | 271,899 |
Total | $ 444,367 |
Investment Securities (Detail_3
Investment Securities (Details Narrative) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investment Securities | ||
Securities Pledged To Secure Public Deposits | $ 101.8 | $ 98.6 |
Debt Securities Total | $ 59.8 | $ 5.5 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Major Classifications | ||
Total Loans | $ 1,004,907 | $ 884,869 |
Less allowance for loan losses | (10,030) | (9,355) |
Net loans | 994,877 | 875,514 |
Total Real Estate Loans | ||
Major Classifications | ||
Total Loans | 906,586 | 781,225 |
Construction and Land Development | ||
Major Classifications | ||
Total Loans | 112,854 | 95,760 |
Construction and Land Development | Loss | ||
Major Classifications | ||
Total Loans | 112,854 | 0 |
Single-Family Residential | ||
Major Classifications | ||
Total Loans | 312,208 | 266,111 |
Single-Family Residential | Loss | ||
Major Classifications | ||
Total Loans | 312,208 | 266,111 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Major Classifications | ||
Total Loans | 20,469 | 23,147 |
Single-Family Residential - Banco de la Gente Non-Tradtional | Loss | ||
Major Classifications | ||
Total Loans | 20,469 | 23,147 |
Commercial | ||
Major Classifications | ||
Total Loans | 399,015 | 337,841 |
Commercial | Loss | ||
Major Classifications | ||
Total Loans | 399,015 | 337,841 |
Multifamily and Farmland | ||
Major Classifications | ||
Total Loans | 62,040 | 58,366 |
Multifamily and Farmland | Loss | ||
Major Classifications | ||
Total Loans | 62,040 | 58,366 |
Commercial Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 76,434 | 91,172 |
Commercial Loans (Not Secured by Real Estate) | Loss | ||
Major Classifications | ||
Total Loans | 76,434 | 91,172 |
Farm Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 961 | 796 |
Farm Loans (Not Secured by Real Estate) | Loss | ||
Major Classifications | ||
Total Loans | 961 | 796 |
Consumer Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 6,438 | 6,436 |
Consumer Loans (Not Secured by Real Estate) | Loss | ||
Major Classifications | ||
Total Loans | 6,438 | 6,436 |
All Other Loans (Not Secured by Real Estate) | ||
Major Classifications | ||
Total Loans | 14,488 | 5,240 |
All Other Loans (Not Secured by Real Estate) | Total Loans [Member] | ||
Major Classifications | ||
Total Loans | 1,004,907 | 884,869 |
All Other Loans (Not Secured by Real Estate) | Loss | ||
Major Classifications | ||
Total Loans | $ 14,488 | $ 5,240 |
Loans (Details 1)
Loans (Details 1) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loans 30-89 Days Past Due36 | $ 3,566 | $ 5,485 |
Loans 90 Or More Days Past Due | 352 | 746 |
Total Past Due Loans | 3,918 | 6,231 |
Total Current Loans | 1,000,989 | 878,638 |
Total Loans | 1,004,907 | 884,869 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Total Loans | 1,004,907 | 884,869 |
Total Real Estate Loans | ||
Total Loans | 906,586 | 781,225 |
Construction and Land Development | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 513 | 0 |
Total Current Loans | 112,341 | 95,760 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 513 | 0 |
Total Loans | 112,854 | 95,760 |
All Other Loans (Not Secured by Real Estate) | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 0 |
Total Current Loans | 14,488 | 5,240 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 0 | 0 |
Total Loans | 14,488 | 5,240 |
Farm Loans (Not Secured by Real Estate) | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 0 |
Total Current Loans | 961 | 796 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 0 | 0 |
Total Loans | 961 | 796 |
Commercial Loans (Not Secured by Real Estate) | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 1,237 | 43 |
Total Current Loans | 75,197 | 91,129 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 1,237 | 43 |
Total Loans | 76,434 | 91,172 |
Consumer Loans (Not Secured by Real Estate) | ||
Loans 90 Or More Days Past Due | 3 | 0 |
Total Past Due Loans | 44 | 38 |
Total Current Loans | 6,394 | 6,398 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 41 | 38 |
Total Loans | 6,438 | 6,436 |
Multifamily and Farmland | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 0 |
Total Current Loans | 62,040 | 58,366 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 0 | 0 |
Total Loans | 62,040 | 58,366 |
Commercial | ||
Loans 90 Or More Days Past Due | 0 | 0 |
Total Past Due Loans | 123 | 488 |
Total Current Loans | 398,892 | 337,353 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 123 | 488 |
Total Loans | 399,015 | 337,841 |
Single-Family Residential | ||
Loans 90 Or More Days Past Due | 158 | 634 |
Total Past Due Loans | 1,208 | 2,957 |
Total Current Loans | 311,000 | 263,154 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 1,050 | 2,323 |
Total Loans | 312,208 | 266,111 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Loans 90 Or More Days Past Due | 191 | 112 |
Total Past Due Loans | 793 | 2,705 |
Total Current Loans | 19,676 | 20,442 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 602 | 2,593 |
Total Loans | 20,469 | 23,147 |
Total Real Estate [Member] | Total Real Estate Loans | ||
Loans 90 Or More Days Past Due | 349 | 746 |
Total Past Due Loans | 2,637 | 6,150 |
Total Current Loans | 903,949 | 775,075 |
Accruing Loans 90 Or More Days Past Due | 0 | 0 |
Loans 30-89 Days Past Due | 2,288 | 5,404 |
Total Loans | $ 906,586 | $ 781,225 |
Loans (Details 2)
Loans (Details 2) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Non-accrual Loans | ||
Total | $ 3,708 | $ 3,230 |
Total Real Estate Loans | ||
Non-accrual Loans | ||
Non-accrual Loans | 3,690 | 3,179 |
Construction and Land Development | ||
Non-accrual Loans | ||
Non-accrual Loans | 0 | 0 |
Commercial Loans (Not Secured by Real Estate) | ||
Non-accrual Loans | ||
Non-accrual Loans | 0 | 49 |
Consumer Loans (Not Secured by Real Estate) | ||
Non-accrual Loans | ||
Non-accrual Loans | 18 | 2 |
Multifamily and Farmland | ||
Non-accrual Loans | ||
Non-accrual Loans | 96 | 105 |
Commercial | ||
Non-accrual Loans | ||
Non-accrual Loans | 133 | 200 |
Single-Family Residential | ||
Non-accrual Loans | ||
Non-accrual Loans | 1,999 | 1,642 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Non-accrual Loans | ||
Non-accrual Loans | $ 1,462 | $ 1,232 |
Loans (Details 3)
Loans (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Impaired Loans | |||||
Unpaid Contractual Principal Balance | $ 16,799 | $ 16,799 | $ 19,505 | ||
Recorded Investment With No Allowance | 666 | 666 | 1,008 | ||
Recorded Investment With Allowance | 15,078 | 15,078 | 17,256 | ||
Recorded Investment In Impaired Loans | 15,744 | 15,744 | 18,264 | ||
Related Allowance | 692 | 692 | 789 | ||
Average Outstanding Impaired Loans | 16,135 | $ 18,947 | 16,912 | $ 19,943 | |
Interest Income Recognized | 216 | 217 | 649 | 754 | |
Total Real Estate Loans | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 16,648 | 16,648 | 19,215 | ||
Recorded Investment With No Allowance | 666 | 666 | 959 | ||
Recorded Investment With Allowance | 14,928 | 14,928 | 17,082 | ||
Recorded Investment In Impaired Loans | 15,594 | 15,594 | 18,041 | ||
Related Allowance | 691 | 691 | 787 | ||
Average Outstanding Impaired Loans | 15,976 | 18,690 | 16,735 | 19,594 | |
Interest Income Recognized | 212 | 212 | 640 | 737 | |
Construction and Land Development | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 59 | 59 | 73 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 59 | 59 | 73 | ||
Recorded Investment In Impaired Loans | 59 | 59 | 73 | ||
Related Allowance | 1 | 1 | 3 | ||
Average Outstanding Impaired Loans | 60 | 76 | 65 | 91 | |
Interest Income Recognized | 1 | 1 | 4 | 5 | |
Commercial Loans (Not Secured by Real Estate) | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 130 | 130 | 282 | ||
Recorded Investment With No Allowance | 0 | 0 | 49 | ||
Recorded Investment With Allowance | 130 | 130 | 170 | ||
Recorded Investment In Impaired Loans | 130 | 130 | 219 | ||
Related Allowance | 1 | 1 | 2 | ||
Average Outstanding Impaired Loans | 138 | 248 | 163 | 330 | |
Interest Income Recognized | 3 | 5 | 7 | 16 | |
Consumer Loans (Not Secured by Real Estate) | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 21 | 21 | 8 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 20 | 20 | 4 | ||
Recorded Investment In Impaired Loans | 20 | 20 | 4 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Outstanding Impaired Loans | 21 | 9 | 14 | 19 | |
Interest Income Recognized | 1 | 0 | 2 | 1 | |
Multifamily and Farmland | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 107 | 107 | 113 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 96 | 96 | 105 | ||
Recorded Investment In Impaired Loans | 96 | 96 | 105 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Outstanding Impaired Loans | 97 | 110 | 100 | 113 | |
Interest Income Recognized | 1 | 2 | 4 | 4 | |
Commercial | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 1,996 | 1,996 | 2,138 | ||
Recorded Investment With No Allowance | 426 | 426 | 435 | ||
Recorded Investment With Allowance | 1,502 | 1,502 | 1,608 | ||
Recorded Investment In Impaired Loans | 1,928 | 1,928 | 2,043 | ||
Related Allowance | 9 | 9 | 11 | ||
Average Outstanding Impaired Loans | 1,939 | 2,280 | 1,985 | 2,617 | |
Interest Income Recognized | 25 | 20 | 75 | 85 | |
Single-Family Residential | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 3,929 | 3,929 | 5,138 | ||
Recorded Investment With No Allowance | 240 | 240 | 524 | ||
Recorded Investment With Allowance | 3,381 | 3,381 | 4,374 | ||
Recorded Investment In Impaired Loans | 3,621 | 3,621 | 4,898 | ||
Related Allowance | 62 | 62 | 86 | ||
Average Outstanding Impaired Loans | 1,393 | 5,875 | 1,131 | 5,683 | |
Interest Income Recognized | 51 | 49 | 150 | 166 | |
Single-Family Residential - Banco de la Gente Non-Tradtional | |||||
Impaired Loans | |||||
Unpaid Contractual Principal Balance | 10,557 | 10,557 | 11,753 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 9,890 | 9,890 | 10,922 | ||
Recorded Investment In Impaired Loans | 9,890 | 9,890 | 10,922 | ||
Related Allowance | 619 | 619 | $ 687 | ||
Average Outstanding Impaired Loans | 12,487 | 10,349 | 13,454 | 11,090 | |
Interest Income Recognized | $ 134 | $ 140 | $ 407 | $ 477 |
Loans (Details 4)
Loans (Details 4) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Beginning Balance | $ 9,789,000 | $ 9,287,000 | $ 9,355,000 | $ 9,908,000 |
Charge-offs | (306,000) | (306,000) | (590,000) | (542,000) |
Recoveries | 139,000 | 164,000 | 376,000 | 460,000 |
Provision | 408,000 | (182,000) | 889,000 | (863,000) |
Ending Balance | 10,030,000 | 8,963,000 | 10,030,000 | 8,963,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 648,000 | 776,000 | 648,000 | 776,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 9,382,000 | 8,187,000 | 9,382,000 | 8,187,000 |
Allowance For Loan Losses, Ending Balance | 10,030,000 | 8,963,000 | 10,030,000 | 8,963,000 |
Loans, Ending Balance | 1,004,907,000 | 891,005,000 | 1,004,907,000 | 891,005,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 10,651,000 | 13,144,000 | 10,651,000 | 13,144,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 994,256,000 | 877,861,000 | 994,256,000 | 877,861,000 |
Unallocated | ||||
Beginning Balance | 1,371,000 | 2,133,000 | 2,080,000 | 2,010,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 13,000 |
Provision | 9,000 | (110,000) | (611,000) | 0 |
Ending Balance | 1,469,000 | 2,023,000 | 1,469,000 | 2,023,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 1,469,000 | 2,023,000 | 1,469,000 | 2,023,000 |
Allowance For Loan Losses, Ending Balance | 1,469,000 | 2,023,000 | 1,469,000 | 2,023,000 |
Loans, Ending Balance | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 0 | 0 | 0 | 0 |
Multifamily and Farmland | ||||
Beginning Balance | 157,000 | 148,000 | 150,000 | 122,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 4,000 | 0 | 3,000 |
Provision | (2,000) | (5,000) | 5,000 | 22,000 |
Ending Balance | 155,000 | 147,000 | 155,000 | 147,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 155,000 | 147,000 | 155,000 | 147,000 |
Allowance For Loan Losses, Ending Balance | 155,000 | 147,000 | 155,000 | 147,000 |
Loans, Ending Balance | 62,040,000 | 58,856,000 | 62,040,000 | 58,856,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 62,040,000 | 58,856,000 | 62,040,000 | 58,856,000 |
Commercial Loans (Not Secured by Real Estate) | ||||
Beginning Balance | 1,272,000 | 1,038,000 | 1,193,000 | 1,196,000 |
Charge-offs | 0 | |||
Recoveries | 31,000 | 0 | 121,000 | |
Provision | 101,000 | (173,000) | 180,000 | (421,000) |
Ending Balance | 1,373,000 | 896,000 | 1,373,000 | 896,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 1,000 | 0 | 1,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 1,373,000 | 895,000 | 1,373,000 | 895,000 |
Allowance For Loan Losses, Ending Balance | 1,373,000 | 896,000 | 1,373,000 | 896,000 |
Loans, Ending Balance | 112,854,000 | 80,009,000 | 112,854,000 | 80,009,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 6,000 | 0 | 6,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 112,854,000 | 80,003,000 | 112,854,000 | 80,003,000 |
Commercial | ||||
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 2,000 | 2,000 | 6,000 | 50,000 |
Provision | (33,000) | 126,000 | 885,000 | 46,000 |
Ending Balance | 3,125,000 | 2,308,000 | 3,125,000 | 2,308,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 6,000 | 7,000 | 6,000 | 7,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 3,119,000 | 2,301,000 | 3,119,000 | 2,301,000 |
Allowance For Loan Losses, Ending Balance | 3,125,000 | 2,308,000 | 3,125,000 | 2,308,000 |
Loans, Ending Balance | 399,015,000 | 363,174,000 | 399,015,000 | 363,174,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 1,401,000 | 1,450,000 | 1,401,000 | 1,450,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 397,614,000 | 361,724,000 | 397,614,000 | 361,724,000 |
Beginning Balance | 3,156,000 | 2,180,000 | 2,234,000 | 2,212,000 |
Consumer And All Other [Member] | ||||
Beginning Balance | 216,000 | 89,000 | 110,000 | 128,000 |
Charge-offs | (204,000) | (91,000) | (450,000) | (249,000) |
Recoveries | 37,000 | 40,000 | 87,000 | 114,000 |
Provision | 165,000 | 53,000 | 467,000 | 98,000 |
Ending Balance | 214,000 | 91,000 | 214,000 | 91,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 214,000 | 91,000 | 214,000 | 91,000 |
Allowance For Loan Losses, Ending Balance | 214,000 | 91,000 | 214,000 | 91,000 |
Loans, Ending Balance | 20,926,000 | 11,511,000 | 20,926,000 | 11,511,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 20,926,000 | 11,511,000 | 20,926,000 | 11,511,000 |
Construction and Land Development | ||||
Beginning Balance | 1,272,000 | 1,038,000 | 1,193,000 | 1,196,000 |
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision | 180,000 | 53,000 | 101,000 | 98,000 |
Ending Balance | 1,373,000 | 1,373,000 | 1,373,000 | 1,038,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 1,000 | 0 | 1,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 1,373,000 | 895,000 | 1,373,000 | 895,000 |
Allowance For Loan Losses, Ending Balance | 1,373,000 | 896,000 | 1,373,000 | 896,000 |
Loans, Ending Balance | 112,854,000 | 80,009,000 | 112,854,000 | 80,009,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 6,000 | 0 | 6,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 112,854,000 | 80,003,000 | 112,854,000 | 80,003,000 |
Farm Loans (Not Secured by Real Estate) | ||||
Beginning Balance | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 0 | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance | 0 | 0 | 0 | 0 |
Loans, Ending Balance | 961,000 | 0 | 961,000 | 0 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 961,000 | 633,000 | 961,000 | 633,000 |
Commercial | ||||
Beginning Balance | 633,000 | 996,000 | 711,000 | 1,345,000 |
Charge-offs | (13,000) | (215,000) | (20,000) | (293,000) |
Recoveries | 8,000 | 1,000 | 64,000 | 7,000 |
Provision | 113,000 | 124,000 | (14,000) | (153,000) |
Ending Balance | 741,000 | 906,000 | 741,000 | 906,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 0 | 0 | 0 | 0 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 741,000 | 906,000 | 741,000 | 906,000 |
Allowance For Loan Losses, Ending Balance | 741,000 | 906,000 | 741,000 | 906,000 |
Loans, Ending Balance | 76,434,000 | 94,376,000 | 76,434,000 | 94,376,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 0 | 54,000 | 0 | 54,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 76,434,000 | 94,322,000 | 76,434,000 | 94,322,000 |
Single-Family Residential | ||||
Beginning Balance | 2,171,000 | 1,723,000 | 2,013,000 | 1,843,000 |
Charge-offs | (89,000) | 0 | (120,000) | 0 |
Recoveries | 92,000 | 86,000 | 219,000 | 165,000 |
Provision | 16,000 | (107,000) | 78,000 | (306,000) |
Ending Balance | 2,190,000 | 1,702,000 | 2,190,000 | 1,702,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 37,000 | 58,000 | 37,000 | 58,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 2,153,000 | 1,644,000 | 2,153,000 | 1,644,000 |
Allowance For Loan Losses, Ending Balance | 2,190,000 | 1,702,000 | 2,190,000 | 1,702,000 |
Loans, Ending Balance | 312,208,000 | 258,403,000 | 312,208,000 | 258,403,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 547,000 | 1,398,000 | 547,000 | 1,398,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | 311,661,000 | 257,005,000 | 311,661,000 | 257,005,000 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||||
Beginning Balance | 813,000 | 980,000 | 864,000 | 1,052,000 |
Charge-offs | 89,000 | 0 | 0 | 0 |
Recoveries | 92,000 | 0 | 0 | 0 |
Provision | (50,000) | (90,000) | (101,000) | (162,000) |
Ending Balance | 763,000 | 890,000 | 763,000 | 890,000 |
Allowance For Loan Losses, Ending Balance: Individually Evaluated For Impairments | 605,000 | 710,000 | 605,000 | 710,000 |
Allowance For Loan Losses, Ending Balance: Collectively Evaluated For Impairments | 158,000 | 180,000 | 158,000 | 180,000 |
Allowance For Loan Losses, Ending Balance | 763,000 | 890,000 | 763,000 | 890,000 |
Loans, Ending Balance | 20,469,000 | 24,043,000 | 20,469,000 | 24,043,000 |
Loans, Ending Balance: Individually Evaluated For Impairments | 8,703,000 | 10,236,000 | 8,703,000 | 10,236,000 |
Loans, Ending Balance: Collectively Evaluated For Impairments | $ 11,766,000 | $ 13,807,000 | $ 11,766,000 | $ 13,807,000 |
Loans (Details 5)
Loans (Details 5) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Total Loans | $ 1,004,907 | $ 884,869 |
Total Loans | 1,004,907 | 884,869 |
Loss | ||
Total Loans | 0 | 0 |
Excellent Quality | ||
Total Loans | 5,712 | 6,875 |
Excellent Quality | Construction and Land Development [Member] | ||
Total Loans | 0 | 0 |
Excellent Quality | Single-Family Residential [Member] | ||
Total Loans | 3,808 | 5,923 |
High Quality | ||
Total Loans | 197,814 | 169,179 |
High Quality | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 16,163 | 16,177 |
High Quality | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 2,064 | 2,039 |
Good Quality | ||
Total Loans | 732,283 | 623,040 |
Good Quality | Single-Family Residential [Member] | ||
Total Loans | 163,179 | 129,856 |
Good Quality | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 3,600 | 3,510 |
Management Attention | ||
Total Loans | 56,569 | 68,169 |
Management Attention | Commercial | ||
Total Loans | 31,732 | 30,937 |
Management Attention | Single-Family Residential [Member] | ||
Total Loans | 11,046 | 14,964 |
Management Attention | Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 1,127 | 5,214 |
Management Attention | Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 225 | 284 |
Watch | ||
Total Loans | 5,897 | 10,902 |
Watch | Commercial | ||
Total Loans | 2,321 | 4,938 |
Substandard | ||
Total Loans | 6,632 | 6,704 |
Doubtful | ||
Total Loans | 0 | 0 |
Construction and Land Development | ||
Total Loans | 112,854 | 95,760 |
Construction and Land Development | Loss | ||
Total Loans | 112,854 | 0 |
Construction and Land Development | High Quality | ||
Total Loans | 18,162 | 11,752 |
Construction and Land Development | Good Quality | ||
Total Loans | 93,266 | 80,325 |
Construction and Land Development | Management Attention | ||
Total Loans | 1,307 | 3,534 |
Construction and Land Development | Watch | ||
Total Loans | 60 | 76 |
Construction and Land Development | Substandard | ||
Total Loans | 59 | 73 |
Construction and Land Development | Doubtful | ||
Total Loans | 0 | 0 |
Single-Family Residential | ||
Total Loans | 312,208 | 266,111 |
Single-Family Residential | Loss | ||
Total Loans | 0 | 0 |
Total Loans | 312,208 | 266,111 |
Single-Family Residential | High Quality | ||
Total Loans | 129,784 | 109,337 |
Single-Family Residential | Watch | ||
Total Loans | 915 | 2,464 |
Single-Family Residential | Substandard | ||
Total Loans | 3,476 | 3,567 |
Single-Family Residential | Doubtful | ||
Total Loans | 0 | 0 |
Single-Family Residential - Banco de la Gente Non-Tradtional | ||
Total Loans | 20,469 | 23,147 |
Single-Family Residential - Banco de la Gente Non-Tradtional | Loss | ||
Total Loans | 0 | 0 |
Total Loans | 20,469 | 23,147 |
Single-Family Residential - Banco de la Gente Non-Tradtional | Excellent Quality | ||
Total Loans | 0 | 0 |
Single-Family Residential - Banco de la Gente Non-Tradtional | High Quality | ||
Total Loans | 0 | 0 |
Single-Family Residential - Banco de la Gente Non-Tradtional | Good Quality | ||
Total Loans | 7,777 | 8,712 |
Single-Family Residential - Banco de la Gente Non-Tradtional | Management Attention | ||
Total Loans | 9,130 | 10,478 |
Single-Family Residential - Banco de la Gente Non-Tradtional | Watch | ||
Total Loans | 1,150 | 1,703 |
Single-Family Residential - Banco de la Gente Non-Tradtional | Substandard | ||
Total Loans | 2,412 | 2,254 |
Single-Family Residential - Banco de la Gente Non-Tradtional | Doubtful | ||
Total Loans | 0 | 0 |
Commercial | ||
Total Loans | 399,015 | 337,841 |
Commercial | Loss | ||
Total Loans | 0 | 0 |
Total Loans | 399,015 | 337,841 |
Commercial | Excellent Quality | ||
Total Loans | 0 | 0 |
Commercial | High Quality | ||
Total Loans | 30,197 | 28,546 |
Commercial | Good Quality | ||
Total Loans | 334,206 | 272,786 |
Commercial | Substandard | ||
Total Loans | 559 | 634 |
Commercial | Doubtful | ||
Total Loans | 0 | 0 |
Multifamily and Farmland | ||
Total Loans | 62,040 | 58,366 |
Multifamily and Farmland | Loss | ||
Total Loans | 0 | 0 |
Total Loans | 62,040 | 58,366 |
Multifamily and Farmland | Excellent Quality | ||
Total Loans | 0 | 0 |
Multifamily and Farmland | High Quality | ||
Total Loans | 17 | 19 |
Multifamily and Farmland | Good Quality | ||
Total Loans | 59,539 | 54,945 |
Multifamily and Farmland | Management Attention | ||
Total Loans | 1,869 | 2,754 |
Multifamily and Farmland | Watch | ||
Total Loans | 519 | 543 |
Multifamily and Farmland | Substandard | ||
Total Loans | 96 | 105 |
Multifamily and Farmland | Doubtful | ||
Total Loans | 0 | 0 |
Commercial Loans (Not Secured by Real Estate) | ||
Total Loans | 76,434 | 91,172 |
Commercial Loans (Not Secured by Real Estate) | Loss | ||
Total Loans | 0 | 0 |
Total Loans | 76,434 | 91,172 |
Commercial Loans (Not Secured by Real Estate) | Excellent Quality | ||
Total Loans | 1,381 | 371 |
Commercial Loans (Not Secured by Real Estate) | Good Quality | ||
Total Loans | 56,973 | 68,183 |
Commercial Loans (Not Secured by Real Estate) | Watch | ||
Total Loans | 786 | 1,177 |
Commercial Loans (Not Secured by Real Estate) | Substandard | ||
Total Loans | 4 | 50 |
Commercial Loans (Not Secured by Real Estate) | Doubtful | ||
Total Loans | 0 | 0 |
Farm Loans (Not Secured by Real Estate) | ||
Total Loans | 961 | 796 |
Farm Loans (Not Secured by Real Estate) | Loss | ||
Total Loans | 0 | 0 |
Total Loans | 961 | 796 |
Farm Loans (Not Secured by Real Estate) | Excellent Quality | ||
Total Loans | 0 | 0 |
Farm Loans (Not Secured by Real Estate) | High Quality | ||
Total Loans | 0 | 0 |
Farm Loans (Not Secured by Real Estate) | Good Quality | ||
Total Loans | 961 | 792 |
Farm Loans (Not Secured by Real Estate) | Management Attention | ||
Total Loans | 0 | 4 |
Farm Loans (Not Secured by Real Estate) | Watch | ||
Total Loans | 0 | 0 |
Farm Loans (Not Secured by Real Estate) | Substandard | ||
Total Loans | 0 | 0 |
Farm Loans (Not Secured by Real Estate) | Doubtful | ||
Total Loans | 0 | 0 |
Consumer Loans (Not Secured by Real Estate) | ||
Total Loans | 6,438 | 6,436 |
Consumer Loans (Not Secured by Real Estate) | Loss | ||
Total Loans | 0 | 0 |
Total Loans | 6,438 | 6,436 |
Consumer Loans (Not Secured by Real Estate) | Excellent Quality | ||
Total Loans | 523 | 581 |
Consumer Loans (Not Secured by Real Estate) | Watch | ||
Total Loans | 0 | 1 |
Consumer Loans (Not Secured by Real Estate) | Substandard | ||
Total Loans | 26 | 21 |
Consumer Loans (Not Secured by Real Estate) | Doubtful | ||
Total Loans | 0 | 0 |
All Other Loans (Not Secured by Real Estate) | ||
Total Loans | 14,488 | 5,240 |
All Other Loans (Not Secured by Real Estate) | Total Loans [Member] | ||
Total Loans | 1,004,907 | 884,869 |
All Other Loans (Not Secured by Real Estate) | Loss | ||
Total Loans | 0 | 0 |
Total Loans | 14,488 | 5,240 |
All Other Loans (Not Secured by Real Estate) | Excellent Quality | ||
Total Loans | 0 | 0 |
All Other Loans (Not Secured by Real Estate) | High Quality | ||
Total Loans | 1,427 | 1,309 |
All Other Loans (Not Secured by Real Estate) | Good Quality | ||
Total Loans | 12,782 | 3,931 |
All Other Loans (Not Secured by Real Estate) | Watch | ||
Total Loans | 146 | 0 |
All Other Loans (Not Secured by Real Estate) | Substandard | ||
Total Loans | 0 | 0 |
All Other Loans (Not Secured by Real Estate) | Doubtful | ||
Total Loans | 0 | 0 |
All Other Loans (Not Secured by Real Estate) [Member] | Management Attention | ||
Total Loans | $ 133 | $ 0 |
Loans (Details Narrative)
Loans (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 27, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Impaired Loan | $ 5,100,000 | $ 5,100,000 | $ 5,100,000 | |||
Allowance For Loan And Leases Losses | 44,000 | $ 52,000 | ||||
Interest Income Recognized On Accruing Impaired Loans | 216,000 | $ 217,000 | 649,000 | 754,000 | ||
Paycheck Protection Program | ||||||
Ppp Loan Amount | 128,100,000 | |||||
Ppp Loan Program Description | On March 27, 2020, President Trump signed the CARES Act, which established a $2 trillion economic stimulus package, including cash payments to individuals, supplemental unemployment insurance benefits and a $349 billion loan program administered through the PPP | |||||
Additional Funding Loan, Description | A second round of PPP funding provided a total of $320 billion additional funding for the PPP | |||||
Ppp Loan Outstanding Amount | 103,000 | 103,000 | 18,000,000 | |||
Recognized Ppp Loan Fee Income | 54,000 | $ 489,000 | 948,000 | 3,000,000 | ||
Allowance for Loan and Lease Losses [Member] | ||||||
Accruing Impaired Loans | 1,570,000 | 1,570,000 | $ 1,830,000 | |||
Interest Income Recognized On Accruing Impaired Loans | $ 217,000 | 649,000 | $ 754,000 | |||
Tdr Residential Mortage Portfolio Loan Amount | $ 250,000 |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Earnings | ||||
Basic Earnings Per Share | $ 5,307,000 | $ 3,390,000 | $ 11,976,000 | $ 12,126,000 |
Effect Of Dilutive Securities: Restricted Stock Units | 0 | 0 | 0 | 0 |
Effect Of Dilutive Securities: Shares Held In Deferred Comp Plan | 0 | 0 | 0 | 0 |
Diluted Earnings Per Share | $ 5,307,000 | $ 3,390,000 | $ 11,976,000 | $ 12,126,000 |
Weighted Average Number Of Shares | ||||
Basic Earnings Per Share (in Shares) | 5,473,443 | 5,544,596 | 5,484,063 | 5,601,879 |
Effect Of Dilutive Securities: Restricted Stock Units (in Shares) | 17,188 | 14,690 | 15,090 | 13,190 |
Effect Of Dilutive Securities: Shares Held In Deferred Comp Plan | 166,937 | 159,797 | 165,041 | 158,039 |
Diluted Earnings Per Share (in Shares) | 5,657,568 | 5,719,083 | 5,664,194 | 5,773,108 |
Per Share Amount | ||||
Basic Earnings Per Share | $ 0.96 | $ 0.61 | $ 2.18 | $ 2.16 |
Diluted Earnings Per Share | $ 0.93 | $ 0.59 | $ 2.11 | $ 2.10 |
Fair Value (Details)
Fair Value (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Estimated Fair Value | $ 444,367,000 | $ 406,549,000 |
U.S. Government sponsored enterprises | ||
Estimated Fair Value | 12,142,000 | 14,267,000 |
U.S. Government sponsored enterprises | Level 3 | ||
Estimated Fair Value | 0 | 0 |
U.S. Government sponsored enterprises | Level 2 | ||
Estimated Fair Value | 12,142,000 | 14,267,000 |
U.S. Government sponsored enterprises | Level 1 | ||
Estimated Fair Value | 0 | 0 |
Mortgage-backed securities | ||
Estimated Fair Value | 271,899,000 | 217,152,000 |
Mortgage-backed securities | Level 3 | ||
Estimated Fair Value | 0 | 0 |
Mortgage-backed securities | Level 2 | ||
Estimated Fair Value | 271,899,000 | 217,152,000 |
Mortgage-backed securities | Level 1 | ||
Estimated Fair Value | 0 | 0 |
State and political subdivisions | ||
Estimated Fair Value | 150,549,000 | 167,241,000 |
State and political subdivisions | Level 3 | ||
Estimated Fair Value | 0 | 0 |
State and political subdivisions | Level 2 | ||
Estimated Fair Value | 150,549,000 | 167,241,000 |
State and political subdivisions | Level 1 | ||
Estimated Fair Value | 0 | 0 |
US Treasury Securities [Member] | ||
Estimated Fair Value | 9,777,000 | 7,889,000 |
US Treasury Securities [Member] | Level 3 | ||
Estimated Fair Value | 0 | 0 |
US Treasury Securities [Member] | Level 2 | ||
Estimated Fair Value | 9,777,000 | 7,889,000 |
US Treasury Securities [Member] | Level 1 | ||
Estimated Fair Value | 0 | 0 |
Mutual funds held in deferred compensation trust | ||
Mutual Funds Held In Deferred Compensation Trust | 1,218,000 | 1,510,000 |
Mutual funds held in deferred compensation trust | Level 3 | ||
Mutual Funds Held In Deferred Compensation Trust | 0 | 0 |
Mutual funds held in deferred compensation trust | Level 2 | ||
Mutual Funds Held In Deferred Compensation Trust | 1,218,000 | 1,510,000 |
Mutual funds held in deferred compensation trust | Level 1 | ||
Mutual Funds Held In Deferred Compensation Trust | $ 0 | $ 0 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Mortgage Loans Held For Sale | $ 975,000 | $ 3,637,000 |
Impaired Loans | 15,052,000 | 17,475,000 |
Mortgage Loans Held For Sale | ||
Mortgage Loans Held For Sale | $ 975,000 | 3,637,000 |
Valuation Technique | Rate lock commitment | |
Significant Unobservable Inputs | N/A | |
General Range Of Significant Unobservable Input Values | N/A | |
Impaired Loans | ||
Impaired Loans | $ 15,052,000 | 17,475,000 |
Valuation Technique | Appraised value and discounted cash flows | |
Significant Unobservable Inputs | Discounts to reflect current market conditions and ultimate collectability | |
General Range Of Significant Unobservable Input Values | 0 - 25 | |
Level 1 | ||
Mortgage Loans Held For Sale | $ 0 | 0 |
Impaired Loans | 0 | 0 |
Level 2 | ||
Mortgage Loans Held For Sale | 0 | 0 |
Impaired Loans | 0 | 0 |
Level 3 | ||
Mortgage Loans Held For Sale | 975,000 | 3,637,000 |
Impaired Loans | $ 15,052,000 | $ 17,475,000 |
Fair Value (Details 2)
Fair Value (Details 2) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investment Securities Available For Sale | $ 444,367 | $ 406,549 |
Mortgage Loans Held For Sale | 975 | 3,637 |
Level 1 | ||
Cash And Cash Equivalents | 155,461 | 277,499 |
Investment Securities Available For Sale | 0 | 0 |
Other Investments | 0 | 0 |
Mortgage Loans Held For Sale | 0 | 0 |
Loans, Net | 0 | 0 |
Mutual Funds Held In Deferred Compensation Trust | 0 | 0 |
Deposits | 0 | 0 |
Securities Sold Under Agreements To Repurchase | 0 | 0 |
Junior Subordinated Debentures | 0 | 0 |
Level 2 | ||
Cash And Cash Equivalents | 0 | 0 |
Investment Securities Available For Sale | 444,367 | 406,549 |
Other Investments | 0 | 0 |
Mortgage Loans Held For Sale | 0 | 0 |
Loans, Net | 0 | 0 |
Mutual Funds Held In Deferred Compensation Trust | 1,288 | 1,510 |
Deposits | 0 | 0 |
Securities Sold Under Agreements To Repurchase | 37,986 | 37,094 |
Junior Subordinated Debentures | 15,464 | 15,464 |
Level 3 | ||
Cash And Cash Equivalents | 0 | 0 |
Investment Securities Available For Sale | 0 | 0 |
Other Investments | 2,762 | 3,668 |
Mortgage Loans Held For Sale | 975 | 3,637 |
Loans, Net | 970,038 | 855,814 |
Mutual Funds Held In Deferred Compensation Trust | 0 | 0 |
Deposits | 1,500,613 | 1,401,833 |
Securities Sold Under Agreements To Repurchase | 0 | 0 |
Junior Subordinated Debentures | 0 | 0 |
Carrying Amount | ||
Cash And Cash Equivalents | 155,461 | 277,499 |
Investment Securities Available For Sale | 444,367 | 406,549 |
Other Investments | 2,762 | 3,668 |
Mortgage Loans Held For Sale | 975 | 3,637 |
Loans, Net | 994,877 | 875,514 |
Mutual Funds Held In Deferred Compensation Trust | 1,288 | 1,510 |
Deposits | 1,501,091 | 1,412,748 |
Securities Sold Under Agreements To Repurchase | 37,986 | 37,094 |
Junior Subordinated Debentures | 15,464 | 15,464 |
Estimated Fair Value | ||
Cash And Cash Equivalents | 155,461 | 277,499 |
Investment Securities Available For Sale | 444,367 | 406,549 |
Other Investments | 2,762 | 3,668 |
Mortgage Loans Held For Sale | 975 | 3,637 |
Loans, Net | 970,038 | 855,814 |
Mutual Funds Held In Deferred Compensation Trust | 1,288 | 1,510 |
Deposits | 1,500,613 | 1,401,833 |
Securities Sold Under Agreements To Repurchase | 37,986 | 37,094 |
Junior Subordinated Debentures | $ 15,464 | $ 15,464 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases | ||
Operating Lease Cost | $ 617 | $ 538 |
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities | 605 | 520 |
Right-of-use Assets Obtained In Exchange For New Lease Liabilities - Operating Leases | $ 1,726 | $ 952 |
Weighted-average Remaining Lease Term - Operating Leases | 9 years 3 days | 6 years 8 months 19 days |
Weighted-average Discount Rate - Operating Leases | 2.30% | 2.71% |
Leases (Details 1)
Leases (Details 1) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases | |
2022 | $ 229 |
2023 | 922 |
2024 | 867 |
2025 | 812 |
2026 | 694 |
Thereafter | 2,975 |
Total | 6,499 |
Less: Imputed Interest | (652) |
Operating Lease Liability | $ 5,847 |
Leases (Details Narrative)
Leases (Details Narrative) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases | |
Extended Renewal Lease Terms | 15 years |
Operating Right Of Use Assets | $ 5.8 |
Operating Lease Liabilities | $ 5.8 |