QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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( State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Large accelerated filer
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☐
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Accelerated filer
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☐
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☒
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Smaller reporting company
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Emerging growth company
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Page
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PART I.
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements
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2
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3
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4
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5
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6
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Item 2.
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30 | |
Item 3.
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49 |
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Item 4.
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49 |
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PART II.
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OTHER INFORMATION
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49 |
Item 1.
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49 |
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Item 1A.
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49 |
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Item 2.
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50 |
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Item 6.
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51 |
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51 |
Assets
|
March 31,
2022
(unaudited)
|
December 31, 2021
|
||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Federal funds sold
|
||||||||
Cash and cash equivalents
|
||||||||
Interest-bearing time deposits in other banks
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|
|
||||||
Available-for-sale debt securities
|
||||||||
Loans, net of allowance for loan losses of $
|
|
|
||||||
Loans held for sale, at fair value
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Nonmarketable equity securities
|
|
|
||||||
Core deposit intangibles
|
||||||||
Goodwill
|
|
|
||||||
Interest receivable and other assets
|
|
|
||||||
Total assets
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$
|
|
$
|
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$
|
|
$
|
|
||||
Interest-bearing
|
|
|
||||||
Total deposits
|
|
|
||||||
Income taxes payable
|
|
|
||||||
Interest payable and other liabilities
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|
||||||
Total liabilities
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|
|
||||||
Shareholders’ equity
|
||||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income (loss)
|
( |
) | ||||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Interest Income
|
||||||||
Loans, including fees
|
$
|
|
$
|
|
||||
Interest-bearing time deposits in other banks
|
|
|
||||||
Debt securities, taxable
|
||||||||
Debt securities, tax-exempt
|
||||||||
Other interest and dividend income
|
|
|
||||||
Total interest income
|
|
|
||||||
Interest Expense
|
||||||||
Deposits
|
|
|
||||||
Total interest expense
|
|
|
||||||
Net Interest Income
|
|
|
||||||
Provision for Loan Losses
|
|
|
||||||
Net Interest Income After Provision for Loan Losses
|
|
|
||||||
Noninterest Income
|
||||||||
Secondary market income
|
|
|
||||||
Loss on sales of available-for-sale debt securities (includes accumulated other comprehensive loss reclassification of $
|
( |
) | ||||||
Service charges on deposit accounts
|
|
|
||||||
Other
|
|
|
||||||
Total noninterest income
|
|
|
||||||
Noninterest Expense
|
||||||||
Salaries and employee benefits
|
|
|
||||||
Furniture and equipment
|
|
|
||||||
Occupancy
|
|
|
||||||
Data and item processing
|
|
|
||||||
Accounting, marketing and legal fees
|
|
|
||||||
Regulatory assessments
|
|
|
||||||
Advertising and public relations
|
|
|
||||||
Travel, lodging and entertainment
|
|
|
||||||
Other
|
|
|
||||||
Total noninterest expense
|
|
|
||||||
Income Before Taxes
|
|
|
||||||
Income tax expense
|
|
|
||||||
Net Income
|
$
|
|
$
|
|
||||
Earnings per common share - basic
|
$
|
|
$
|
|
||||
Earnings per common share - diluted
|
|
|
||||||
Weighted average common shares outstanding - basic
|
|
|
||||||
Weighted average common shares outstanding - diluted
|
|
|
||||||
Other Comprehensive Income (Loss) |
||||||||
Unrealized losses on securities, net of tax benefit of $
|
$ |
( |
) | $ | ||||
Reclassification adjustment for realized loss included in net income, net of tax of $
|
( |
) | ||||||
Other comprehensive loss, net of tax benefit of $
|
$ | ( |
) | $ | ||||
Comprehensive Income (Loss) |
$ | $ |
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Common Stock (Shares)
|
||||||||
Balance at beginning of period
|
|
|
||||||
Exercise of employee stock options
|
||||||||
Shares issued for restricted stock units
|
|
|
||||||
Balance at end of period
|
|
|
||||||
Common Stock (Amount)
|
||||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Shares issued for stock options
|
||||||||
Shares issued for restricted stock units
|
||||||||
Balance at end of period
|
$
|
|
$
|
|
||||
Additional Paid-in Capital
|
||||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Stock-based compensation expense
|
|
|
||||||
Balance at end of period
|
$
|
|
$
|
|
||||
Retained Earnings
|
||||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Net income
|
|
|
||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
||||
Balance at end of period
|
$
|
|
$
|
|
||||
Accumulated Other Comprehensive Income (Loss) |
||||||||
Balance at beginning of period
|
$ |
$ |
||||||
Net change due to unrealized loss
|
( |
) | ||||||
Balance at end of period
|
$ |
( |
) | $ |
||||
Total Shareholders’ equity
|
$
|
|
$
|
|
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Operating Activities
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization
|
|
|
||||||
Provision for loan losses
|
|
|
||||||
Amortization of premiums and discounts on securities
|
||||||||
Gain on sales of loans
|
(
|
)
|
(
|
)
|
||||
Net loss on sale of available-for-sale debt securities
|
||||||||
Stock-based compensation expense
|
|
|
||||||
Cash receipts from the sale of loans originated for sale
|
|
|
||||||
Cash disbursements for loans originated for sale
|
(
|
)
|
(
|
)
|
||||
Deferred income tax benefit
|
(
|
)
|
(
|
)
|
||||
Changes in
|
||||||||
Interest receivable and other assets
|
|
|
||||||
Interest payable and other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Investing Activities
|
||||||||
Maturities of interest-bearing time deposits in other banks
|
|
|
||||||
Purchases of interest-bearing time deposits in other banks
|
(
|
)
|
|
|||||
Proceeds from sale of available-for-sale debt securities |
||||||||
Maturities, prepayments and calls of available-for-sale debt securities |
||||||||
Purchases of debt securities available-for-sale |
( |
) | ||||||
Net change in loans
|
(
|
)
|
(
|
)
|
||||
Purchases of premises and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of premises and equipment | ||||||||
Change in nonmarketable equity securities
|
|
(
|
)
|
|||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Financing Activities
|
||||||||
Net change in deposits
|
|
|
||||||
Cash distributions
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
(Decrease) Increase in Cash and Cash Equivalents
|
(
|
)
|
|
|||||
Cash and Cash Equivalents, Beginning of Period
|
|
|
||||||
Cash and Cash Equivalents, End of Period
|
$
|
|
$
|
|
||||
Supplemental Disclosure of Cash Flows Information
|
||||||||
Interest paid
|
$
|
|
$
|
|
||||
Dividends declared and not paid
|
$
|
|
$
|
|
||||
Measurement period goodwill adjustment
|
$ | $ |
Note 2:
|
Recent Events, Including Mergers and
Acquisitions
|
Estimated Fair Value
|
||||
(in thousands)
|
||||
Assets Acquired
|
||||
Cash and cash equivalents
|
$
|
|
||
Available-for-sale debt securities
|
|
|||
Federal funds sold
|
|
|||
Loans
|
|
|||
Premises and equipment
|
|
|||
Core deposit intangible
|
|
|||
Prepaid expenses and other assets
|
|
|||
Total assets acquiried
|
|
|||
Liabilities Assumed
|
||||
Deposits
|
$
|
|
||
Accounts payable and accrued expenses
|
|
|||
Total liabilities assumed
|
|
|||
Net assets acquired
|
$
|
|
||
Consideration transferred
|
|
|||
Goodwill
|
$ |
|
Note 3: |
Restriction on Cash and Due from Banks
|
Note 4: |
Earnings Per Share
|
As of and for the three months ended March 31,
|
||||||||
2022
|
2021
|
|||||||
(Dollars in thousands, except per share amounts)
|
||||||||
Numerator
|
||||||||
Net income
|
$
|
$
|
||||||
Denominator
|
||||||||
Weighted-average shares outstanding for basic earnings per share
|
||||||||
Dilutive effect of stock compensation (1)
|
||||||||
Denominator for diluted earnings per share
|
||||||||
Earnings per common share
|
||||||||
Basic
|
$
|
$
|
||||||
Diluted
|
$
|
$
|
(1)
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Fair Value
|
||||||||||||
Available-for-sale as of March 31, 2022
|
||||||||||||||||
U.S. Federal agencies
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Mortgage-backed securities(1)
|
|
|
(
|
)
|
|
|||||||||||
State and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||
U.S. Treasuries
|
|
|
(
|
)
|
|
|||||||||||
Corporate debt securities
|
|
|
(
|
)
|
|
|||||||||||
Total available-for-sale
|
|
|
(
|
)
|
|
|||||||||||
Total debt securities
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Fair Value
|
||||||||||||
Available-for-sale as of December 31, 2021
|
||||||||||||||||
U.S. Federal agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Mortgage-backed securities(1)
|
|
|
|
|
||||||||||||
State and political subdivisions
|
|
|
|
|
||||||||||||
U.S. Treasuries
|
|
|
(
|
)
|
|
|||||||||||
Corporate debt securities
|
|
|
|
|
||||||||||||
Total available-for-sale
|
|
|
(
|
)
|
|
|||||||||||
Total debt securities
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
|
(in thousands)
|
Amortized Cost
|
Fair Value
|
||||||
Available-for-sale as of March 31, 2022
|
||||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one year through five years
|
|
|
||||||
Due after five years through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
Mortgage-backed securities(1)
|
|
|
||||||
Total available-for-sale
|
$ |
|
$ |
|
(in thousands)
|
Amortized Cost
|
Fair Value
|
||||||
Available-for-sale as of December 31, 2021
|
||||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one year through five years
|
|
|
||||||
Due after five years through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
Mortgage-backed securities(1)
|
|
|
||||||
Total available-for-sale
|
$ |
|
$ |
|
(in thousands)
|
||||
Proceeds from sales
|
$
|
|
||
Gross realized gains on sales
|
$
|
|
||
Gross realized losses on sales
|
(
|
)
|
||
Total realized (losses), net
|
$
|
(
|
)
|
March 31,
2022
|
December 31,
2021
|
|||||||
Book value of pledged securities
|
$
|
|
$
|
|
Less than Twelve Months
|
Twelve Months or Longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
||||||||||
Mortgage-backed securities
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
State and political subdivisions
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
U.S. Treasuries
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Corporate debt securities
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Total available-for-sale
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
Less than Twelve Months
|
Twelve Months or Longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
Fair Value
|
Gross Unrealized
Losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
State and political subdivisions
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasuries
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Corporate debt securities
|
|
|
|
|
|
|
||||||||||||||||||
Total available-for-sale
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
Note 6: |
Loans and Allowance for Loan Losses
|
March 31,
2022
|
December 31,
2021
|
|||||||
Construction & development
|
$
|
|
$
|
|
||||
1 - 4 family real estate
|
|
|
||||||
Commercial real estate - other
|
|
|
||||||
Total commercial real estate
|
|
|
||||||
Commercial & industrial
|
|
|
||||||
Agricultural
|
|
|
||||||
Consumer
|
|
|
||||||
Gross loans
|
|
|
||||||
Less allowance for loan losses
|
(
|
)
|
(
|
)
|
||||
Less deferred loan fees
|
(
|
)
|
(
|
)
|
||||
Net loans
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
March 31, 2022
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Charge-offs
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Provision (credit) for loan losses
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
|||||||||||||||||
Balance, end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
March 31, 2021
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Charge-offs
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net (charge-offs) recoveries
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Provision (credit) for loan losses
|
|
|
|
|
(
|
)
|
|
|
||||||||||||||||||||
Balance, end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
March 31, 2022
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
December 31, 2021
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
• |
Grade
1 (Pass) – These loans generally conform to Bank policies, and are characterized by policy conforming advance rates on collateral, and have well-defined repayment sources. In addition, these credits
are extended to borrowers and/or guarantors with a strong balance sheet and either substantial liquidity or a reliable income history.
|
• |
Grade
2 (Watch) – These loans
are still considered “Pass” credits; however, various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in loan documentation, or other risk issues determined by the Lending Officer,
Commercial Loan Committee (CLC), or Credit Quality Committee (CQC) warrant a heightened sense and frequency of monitoring.
|
• |
Grade
3 (Special Mention) –
These loans must have observable weaknesses or evidence of imprudent handling or structural issues. The weaknesses require close attention and the remediation of those weaknesses is necessary. No risk of probable loss exists. Credits in
this category are expected to quickly migrate to a “2” or a “4” as this is viewed as a transitory loan grade.
|
• |
Grade
4 (Substandard) – These
loans are not adequately protected by the sound worth and debt service capacity of the borrower, but may be well secured. They have defined weaknesses relative to cash flow, collateral, financial condition, or other factors that might
jeopardize repayment of all of the principal and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not remediated.
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
March 31, 2022
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
2 (Watch)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
3 (Special Mention)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
4 (Substandard)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2021
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
2 (Watch)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
3 (Special Mention)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
4 (Substandard)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Past Due
|
||||||||||||||||||||||||||||
30–59
Days
|
60–89
Days
|
Greater than
90 Days
|
Total
|
Current
|
Total
Loans
|
Total Loans
> 90 Days &
Accruing
|
||||||||||||||||||||||
March 31,
2022
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
1 - 4 family real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial real estate - other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
December 31, 2021
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
1 - 4 family real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial real estate - other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Unpaid
Principal
Balance
|
Recorded
Investment
with No
Allowance
|
Recorded
Investment
with an
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||||||||
March 31,
2022
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
1 - 4 family real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial real estate - other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ |
|
||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||
Construction & development
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
1 - 4 family real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial real estate - other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
March 31,
2022
|
||||||||||||||||||||||||||||
Nonaccrual loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Troubled-debt restructurings (1)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Accruing loans 90 or more days past due
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total nonperforming loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2021
|
||||||||||||||||||||||||||||
Nonaccrual loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Troubled-debt restructurings (1)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Accruing loans 90 or more days past due
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total nonperforming loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
|
Note 7: |
Shareholders’ Equity
|
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Number of shares repurchased
|
|
|
||||||
Average price of shares repurchased
|
$
|
|
$
|
|
||||
Shares remaining to be repurchased
|
|
|
Actual
|
Minimum
Capital Requirements
|
With Capital
Conservation Buffer
|
Minimum
To Be Well Capitalized
Under Prompt
Corrective Action
|
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||||||||
As of March 31, 2022
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets | ||||||||||||||||||||||||||||||||
Company
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
$
|
|
|
%
|
|||||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|
|
%
|
|||||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
$
|
|
|
%
|
|||||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
Bank
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
|
|
%
|
Note 8:
|
Related-Party Transactions
|
Note 9:
|
Employee Benefits
|
Options
|
Wgtd. Avg. Exercise
Price
|
Wgtd. Avg.
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Three Months Ended March 31, 2022
|
||||||||||||||||
Outstanding at December 31, 2021
|
|
$
|
|
|||||||||||||
Options Granted
|
|
|
||||||||||||||
Options Exercised
|
|
|
||||||||||||||
Options Forfeited
|
|
|
||||||||||||||
Outstanding at March 31, 2022
|
|
|
|
$
|
|
|||||||||||
Exercisable at March 31, 2022
|
|
$ |
|
|
$
|
|
For the Three Months Ended
|
||||
March 31, 2021
|
||||
Risk-free interest rate
|
|
%
|
||
Dividend yield
|
|
%
|
||
Stock price volatility
|
|
%
|
||
Expected term
|
|
|
Number of
Shares
|
Wgtd. Avg. Grant
Date Fair Value
|
||||||
Three Months Ended March 31, 2022
|
||||||||
Outstanding at December 31, 2021
|
|
$
|
|
|||||
Shares granted
|
|
|
||||||
Shares vested
|
(
|
)
|
|
|||||
Shares forfeited
|
|
|
||||||
End of the period balance
|
|
$
|
|
Number of Shares
|
Wgtd. Avg. Grant
Date Fair Value
|
|||||||
Three Months Ended March 31, 2021
|
||||||||
Outstanding at December 31, 2020
|
|
$
|
|
|||||
Shares granted
|
|
|
||||||
Shares vested
|
(
|
)
|
|
|||||
Shares forfeited
|
|
|
||||||
End of the period balance
|
|
$
|
|
Note 10: |
Disclosures About Fair Value of Assets and Liabilities
|
Level 1 |
Quoted prices in active markets for
identical assets or liabilities
|
Level 2 |
Observable inputs other than Level 1
prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the
assets or liabilities
|
Level 3 |
Unobservable inputs supported by
little or no market activity and significant to the fair value of the assets or liabilities
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
March 31, 2022
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
December 31, 2021
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Weighted-
Average
|
|||||||
March 31, 2022
|
||||||||||
Collateral-dependent impaired loans
|
$
|
|
Appraisals from comparable properties
|
Estimated cost to sell
|
%
|
|||||
December 31, 2021
|
||||||||||
Collateral-dependent impaired loans
|
$
|
|
Appraisals from comparable properties
|
Estimated cost to sell
|
% |
Carrying |
Fair Value Measurements
|
|||||||||||||||||||
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
March 31, 2022
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Federal funds sold
|
||||||||||||||||||||
Interest-bearing time deposits in other banks
|
|
|
|
|
|
|||||||||||||||
Loans, net of allowance
|
|
|
|
|
|
|||||||||||||||
Loans held for sale
|
||||||||||||||||||||
Nonmarketable equity securities
|
|
|
|
|
|
|||||||||||||||
Interest receivable
|
|
|
|
|
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Interest payable
|
|
|
|
|
|
|||||||||||||||
December 31, 2021
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Federal funds sold
|
||||||||||||||||||||
Interest-bearing time deposits in other banks
|
|
|
|
|
|
|||||||||||||||
Loans, net of allowance
|
|
|
|
|
|
|||||||||||||||
Loans held for sale
|
|
|
|
|
|
|||||||||||||||
Nonmarketable equity securities
|
|
|
|
|
|
|||||||||||||||
Interest receivable
|
|
|
|
|
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Interest payable
|
|
|
|
|
|
Note 11: |
Financial Instruments with Off-Balance Sheet Risk
|
March 31,
|
December 31,
|
|||||||
2022 | 2021 | |||||||
Commitments to extend credit
|
$
|
|
$
|
|
||||
Financial and performance standby letters of credit
|
|
|
||||||
$
|
|
$
|
|
Note 12: |
Significant Estimates and Concentrations
|
Net Interest Margin
|
||||||||||||||||||||||||
For the Three Months Ended March 31,
|
||||||||||||||||||||||||
2022
|
2021
|
|||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Short-term investments
|
$
|
187,672
|
$
|
86
|
0.19
|
%
|
$
|
125,739
|
$
|
92
|
0.30
|
%
|
||||||||||||
Debt securities, taxable-equivalent
|
87,886
|
364
|
1.68
|
1,172
|
2
|
0.69
|
||||||||||||||||||
Debt securities, tax exempt(1)
|
23,969
|
98
|
1.66
|
-
|
-
|
-
|
||||||||||||||||||
Loans held for sale
|
487
|
-
|
-
|
378
|
-
|
-
|
||||||||||||||||||
Total loans(2)
|
1,003,890
|
14,377
|
5.81
|
847,498
|
13,094
|
6.27
|
||||||||||||||||||
Total interest-earning assets
|
1,303,904
|
14,925
|
4.64
|
974,787
|
13,188
|
5.49
|
||||||||||||||||||
Noninterest-earning assets
|
24,342
|
7,103
|
||||||||||||||||||||||
Total assets
|
$
|
1,328,246
|
$
|
981,890
|
||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
636,446
|
458
|
0.29
|
%
|
$
|
419,991
|
362
|
0.35
|
%
|
||||||||||||||
Time deposits
|
169,602
|
259
|
0.62
|
205,557
|
513
|
1.01
|
||||||||||||||||||
Total interest-bearing deposits
|
806,048
|
717
|
0.36
|
625,548
|
875
|
0.57
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
806,048
|
717
|
0.36
|
$
|
625,548
|
875
|
0.57
|
||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
385,664
|
$
|
243,290
|
||||||||||||||||||||
Other noninterest-bearing liabilities
|
6,301
|
4,193
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
391,965
|
247,483
|
||||||||||||||||||||||
Shareholders' equity
|
130,233
|
108,859
|
||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,328,246
|
$
|
981,890
|
||||||||||||||||||||
Net interest income
|
$
|
14,208
|
$
|
12,313
|
||||||||||||||||||||
Net interest spread
|
4.40
|
%
|
4.92
|
%
|
||||||||||||||||||||
Net interest margin
|
4.42
|
%
|
5.12
|
%
|
(1) |
Taxable-equivalent yield of 2.10% as of March 31, 2022, applying a 21% effective tax rate
|
(2) |
Non-accrual loans of $9.5 million and $12.7 million as of March 31, 2022 and March 31, 2021, respectively, are included in loans.
|
- |
Interest income on debt securities of $462,000, a result of debt securities acquired in December 2021 and purchased during the first quarter of 2022;
|
- |
Interest income on total loans totaled $14.4 million, an increase of $1.3 million or 9.8%, due to an increase in average loans of $156.4 million, or 18.5%, and in spite of a 46 basis points or 7.4% decrease in loan yields;
|
- |
Loan fees totaled $1.6 million, a decrease of $355,000 or 17.8%, related to nonrecurring PPP loan fee income decreasing and
|
- |
Net interest margin for the first quarter of 2022 was 4.42% compared to 5.12% for the first quarter of 2021.
|
Analysis of Changes in Interest Income
and Expenses
|
||||||||||||
For the Three Months Ended
March 31, 2022 vs 2021
|
||||||||||||
Change due to:
|
||||||||||||
Volume(1)
|
Rate(1)
|
Interest
Variance
|
||||||||||
(in thousands)
|
(Dollars in thousands)
|
|||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Short-term investments
|
$
|
186
|
$
|
(192
|
)
|
$
|
(6
|
)
|
||||
Investment securities
|
772
|
(312
|
)
|
460
|
||||||||
Total loans
|
9,806
|
(8,523
|
)
|
1,283
|
||||||||
Total increase (decrease) in interest income
|
10,764
|
(9,027
|
)
|
1,737
|
||||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Transaction accounts
|
758
|
(662
|
)
|
96
|
||||||||
Time deposits
|
(363
|
)
|
109
|
(254
|
)
|
|||||||
Total interest-bearing deposits
|
395
|
(553
|
)
|
(158
|
)
|
|||||||
Total increase (decrease) in interest expense
|
395
|
(553
|
)
|
(158
|
)
|
|||||||
Increase (Decrease) in net interest income
|
$
|
10,369
|
$
|
(8,474
|
)
|
$
|
1,895
|
(1) |
Variances attributable to both volume and rate are allocated on a consistent basis between rate and volume based on the absolute value of the variances in each category.
|
As of March 31, 2022
|
||||||||||||||||||||||||||||||||||||||||
After One Year But
|
After Five Years But
|
|||||||||||||||||||||||||||||||||||||||
Within One Year
|
Within Five Years
|
Within Ten Years
|
After Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
Amount
|
Yield *
|
|||||||||||||||||||||||||||||||
Available-for-sale
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
U.S. Federal agencies
|
$
|
41
|
3.15
|
%
|
$
|
210
|
3.51
|
%
|
$
|
-
|
0
|
%
|
$
|
-
|
0
|
%
|
$
|
251
|
3.45
|
%
|
||||||||||||||||||||
Mortgage-backed securities
|
1,832
|
2.88
|
10,999
|
2.03
|
10,779
|
2.49
|
32,066
|
2.57
|
55,676
|
2.46
|
||||||||||||||||||||||||||||||
State and political subdivisions
|
3,680
|
2.18
|
15,368
|
1.98
|
12,535
|
2.39
|
1,380
|
2.39
|
32,963
|
2.18
|
||||||||||||||||||||||||||||||
U.S. Treasuries
|
-
|
-
|
99,390
|
1.73
|
4,665
|
1.76
|
-
|
-
|
104,055
|
1.73
|
||||||||||||||||||||||||||||||
Corporate debt securities
|
-
|
-
|
-
|
-
|
3,911
|
4.85
|
1,500
|
6.96
|
5,411
|
5.44
|
||||||||||||||||||||||||||||||
Total
|
$
|
5,553
|
2.42
|
%
|
$
|
125,967
|
1.79
|
%
|
$
|
31,890
|
2.63
|
%
|
$
|
34,946
|
2.75
|
%
|
$
|
198,356
|
2.11
|
%
|
||||||||||||||||||||
Percentage of total
|
2.80
|
%
|
63.50
|
%
|
16.08
|
%
|
17.62
|
%
|
100.00
|
%
|
For the Three Months Ended
|
||||||||||||||||
March 31,
|
||||||||||||||||
2022
|
2021
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest income:
|
||||||||||||||||
Secondary market income
|
$
|
166
|
$
|
14
|
$
|
152
|
1085.71
|
%
|
||||||||
Loss on sales of available-for-sale debt securities
|
(127
|
)
|
-
|
(127
|
)
|
-100.00
|
%
|
|||||||||
Service charges on deposit accounts
|
249
|
120
|
129
|
107.50
|
%
|
|||||||||||
Other income and fees
|
387
|
203
|
184
|
90.64
|
%
|
|||||||||||
Total noninterest income
|
$
|
675
|
$
|
337
|
$
|
338
|
100.30
|
%
|
For the Three Months Ended
|
||||||||||||||||
March 31,
|
||||||||||||||||
2022
|
2021
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
$
|
4,026
|
$
|
2,790
|
$
|
1,236
|
44.30
|
%
|
||||||||
Furniture and equipment
|
358
|
202
|
156
|
77.23
|
%
|
|||||||||||
Occupancy
|
551
|
472
|
79
|
16.74
|
%
|
|||||||||||
Data and item processing
|
387
|
279
|
108
|
38.71
|
%
|
|||||||||||
Accounting, marketing, and legal fees
|
233
|
148
|
85
|
57.43
|
%
|
|||||||||||
Regulatory assessments
|
196
|
141
|
55
|
39.01
|
%
|
|||||||||||
Advertising and public relations
|
110
|
34
|
76
|
223.53
|
%
|
|||||||||||
Travel, lodging and entertainment
|
48
|
89
|
(41
|
)
|
-46.07
|
%
|
||||||||||
Other expense
|
511
|
390
|
121
|
31.03
|
%
|
|||||||||||
Total noninterest expense
|
$
|
6,420
|
$
|
4,545
|
$
|
1,875
|
41.25
|
%
|
As of March 31,
|
As of December 31,
|
|||||||||||||||
2022
|
2021
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Construction & development
|
$
|
172,381
|
16.2
|
%
|
$
|
169,322
|
16.4
|
%
|
||||||||
1-4 family real estate
|
58,184
|
5.5
|
%
|
62,971
|
6.1
|
%
|
||||||||||
Commercial real estate - other
|
334,835
|
31.5
|
%
|
339,655
|
33.0
|
%
|
||||||||||
Total commercial real estate
|
565,400
|
53.2
|
%
|
571,948
|
55.5
|
%
|
||||||||||
Commercial & industrial
|
416,676
|
39.1
|
%
|
361,974
|
35.1
|
%
|
||||||||||
Agricultural
|
62,984
|
5.9
|
%
|
73,010
|
7.1
|
%
|
||||||||||
Consumer
|
19,439
|
1.8
|
%
|
24,046
|
2.3
|
%
|
||||||||||
Gross loans
|
1,064,499
|
100.0
|
%
|
1,030,978
|
100.0
|
%
|
||||||||||
Less: unearned income, net
|
(2,678
|
)
|
(2,577
|
)
|
||||||||||||
Total Loans, net of unearned income
|
1,061,821
|
1,028,401
|
||||||||||||||
Less: Allowance for loan losses
|
(10,599
|
)
|
(10,316
|
)
|
||||||||||||
Net loans
|
$
|
1,051,222
|
$
|
1,018,085
|
As of March 31, 2022
|
||||||||||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
Through Fifteen Years
|
Due after Fifteen Years
|
|||||||||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
8,579
|
$
|
71,187
|
$
|
10,117
|
$
|
75,659
|
$
|
111
|
$
|
2,313
|
$
|
-
|
$
|
4,415
|
$
|
172,381
|
||||||||||||||||||
1-4 family real estate
|
3,367
|
8,995
|
15,182
|
16,393
|
1,150
|
6,548
|
-
|
6,549
|
58,184
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
3,333
|
62,376
|
68,431
|
161,348
|
7,433
|
18,079
|
-
|
13,835
|
334,835
|
|||||||||||||||||||||||||||
Total commercial real estate
|
15,279
|
142,558
|
93,730
|
253,400
|
8,694
|
26,940
|
-
|
24,799
|
565,400
|
|||||||||||||||||||||||||||
Commercial & industrial
|
25,108
|
154,302
|
16,466
|
187,623
|
19,781
|
12,749
|
-
|
647
|
416,676
|
|||||||||||||||||||||||||||
Agricultural
|
354
|
14,063
|
5,376
|
34,978
|
543
|
1,353
|
-
|
6,317
|
62,984
|
|||||||||||||||||||||||||||
Consumer
|
1,713
|
34
|
10,326
|
148
|
931
|
2,299
|
84
|
3,904
|
19,439
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
42,454
|
$
|
310,957
|
$
|
125,898
|
$
|
476,149
|
$
|
29,949
|
$
|
43,341
|
$
|
84
|
$
|
35,667
|
$
|
1,064,499
|
As of December 31, 2021
|
||||||||||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
Through Fifteen Years
|
Due after Fifteen Years
|
|||||||||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
7,283
|
$
|
71,551
|
$
|
10,148
|
$
|
74,052
|
$
|
-
|
$
|
2,243
|
$
|
-
|
$
|
4,045
|
$
|
169,322
|
||||||||||||||||||
1-4 family real estate
|
3,259
|
21,322
|
11,979
|
11,674
|
926
|
7,375
|
-
|
6,436
|
62,971
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
5,156
|
97,309
|
59,227
|
143,906
|
413
|
19,230
|
-
|
14,414
|
339,655
|
|||||||||||||||||||||||||||
Total real estate
|
15,698
|
190,182
|
81,354
|
229,632
|
1,339
|
28,848
|
-
|
24,895
|
571,948
|
|||||||||||||||||||||||||||
Commercial & industrial
|
24,249
|
142,553
|
16,346
|
145,654
|
20,474
|
12,047
|
-
|
651
|
361,974
|
|||||||||||||||||||||||||||
Agricultural
|
2,529
|
17,441
|
5,156
|
39,305
|
623
|
1,587
|
-
|
6,369
|
73,010
|
|||||||||||||||||||||||||||
Consumer
|
4,870
|
29
|
10,825
|
172
|
1,554
|
2,458
|
84
|
4,054
|
24,046
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
47,346
|
$
|
350,205
|
$
|
113,681
|
$
|
414,763
|
$
|
23,990
|
$
|
44,940
|
$
|
84
|
$
|
35,969
|
$
|
1,030,978
|
For the Three Months Ended March 31,
|
||||||||
2022
|
2021
|
|||||||
(Dollars in thousands)
|
||||||||
Balance at beginning of the period
|
$
|
10,316
|
$
|
9,639
|
||||
Provision for loan losses
|
276
|
1,275
|
||||||
Charge-offs:
|
||||||||
Construction & development
|
-
|
-
|
||||||
1-4 family real estate
|
-
|
-
|
||||||
Commercial real estate - other
|
-
|
-
|
||||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Consumer
|
(2
|
)
|
(50
|
)
|
||||
Total charge-offs
|
(2
|
)
|
(50
|
)
|
||||
Recoveries:
|
||||||||
Construction & development
|
-
|
-
|
||||||
1-4 family real estate
|
-
|
-
|
||||||
Commercial real estate - other
|
-
|
-
|
||||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Consumer
|
9
|
-
|
||||||
Total recoveries
|
9
|
-
|
||||||
Net recoveries (charge-offs)
|
7
|
(50
|
)
|
|||||
Balance at end of the period
|
$
|
10,599
|
$
|
10,864
|
||||
Net recoveries (charge-offs) to average loans
|
0.00
|
%
|
0.01
|
%
|
As of March 31,
|
As of December 31,
|
|||||||||||||||
2022
|
2021
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Construction & development
|
$
|
1,717
|
16.2
|
%
|
$
|
1,695
|
16.4
|
%
|
||||||||
1-4 family real estate
|
579
|
5.5
|
%
|
630
|
6.1
|
%
|
||||||||||
Commercial real estate - Other
|
3,334
|
31.5
|
%
|
3,399
|
33.0
|
%
|
||||||||||
Commercial & industrial
|
4,148
|
39.1
|
%
|
3,621
|
35.1
|
%
|
||||||||||
Agricultural
|
627
|
5.9
|
%
|
730
|
7.1
|
%
|
||||||||||
Consumer
|
194
|
1.8
|
%
|
241
|
2.3
|
%
|
||||||||||
Total
|
$
|
10,599
|
100.0
|
%
|
$
|
10,316
|
100.0
|
%
|
As of
March 31,
|
As of
December 31,
|
|||||||
2022
|
2021
|
|||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans
|
$
|
9,539
|
$
|
9,885
|
||||
Troubled-debt restructurings (1)
|
-
|
-
|
||||||
Accruing loans 90 or more days past due
|
91
|
496
|
||||||
Total nonperforming loans
|
9,630
|
10,381
|
||||||
Other real estate owned
|
-
|
-
|
||||||
Total nonperforming assets
|
$
|
9,630
|
$
|
10,381
|
||||
Ratio of nonperforming loans to total loans
|
0.91
|
%
|
1.01
|
%
|
||||
Ratio of nonaccrual loans to total loans
|
0.90
|
%
|
0.96
|
%
|
||||
Ratio of allowance for loan losses to total loans
|
1.00
|
%
|
1.00
|
%
|
||||
Ratio of allowance for loan losses to nonaccrual loans
|
111.12
|
%
|
104.36
|
%
|
||||
Ratio of nonperforming assets to total assets
|
0.68
|
%
|
0.77
|
%
|
As of March 31, 2022
|
||||||||||||||||||||||||||||
Loans 30-
59 days past
due
|
Loans 60-
89 days past
due
|
Loans 90+
days past
due
|
Loans 90+
days past
due and
accruing
|
Total past
due loans
|
Current
|
Total loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
172,381
|
$
|
172,381
|
||||||||||||||
1-4 family real estate
|
26
|
-
|
-
|
-
|
26
|
58,158
|
58,184
|
|||||||||||||||||||||
Commercial real estate - other
|
-
|
167
|
-
|
-
|
167
|
334,668
|
334,835
|
|||||||||||||||||||||
Commercial & industrial
|
27
|
3
|
119
|
19
|
149
|
416,527
|
416,676
|
|||||||||||||||||||||
Agricultural
|
443
|
-
|
59
|
59
|
502
|
62,482
|
62,984
|
|||||||||||||||||||||
Consumer
|
426
|
1
|
13
|
13
|
440
|
18,999
|
19,439
|
|||||||||||||||||||||
Total
|
$
|
922
|
$
|
171
|
$
|
191
|
$
|
91
|
$
|
1,284
|
$
|
1,063,215
|
$
|
1,064,499
|
As of December 31, 2021
|
||||||||||||||||||||||||||||
Loans 30-
59 days past
due
|
Loans 60-
89 days past
due
|
Loans 90+
days past
due
|
Loans 90+
days past
due and
accruing
|
Total Past
Due Loans
|
Current
|
Total loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
169,322
|
$
|
169,322
|
||||||||||||||
1-4 family real estate
|
-
|
-
|
-
|
-
|
-
|
62,971
|
62,971
|
|||||||||||||||||||||
Commercial real estate - other
|
-
|
174
|
-
|
-
|
174
|
339,481
|
339,655
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
19
|
501
|
401
|
520
|
361,454
|
361,974
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
77
|
77
|
77
|
72,933
|
73,010
|
|||||||||||||||||||||
Consumer
|
48
|
15
|
18
|
18
|
81
|
23,965
|
24,046
|
|||||||||||||||||||||
Total
|
$
|
48
|
$
|
208
|
$
|
596
|
$
|
496
|
$
|
852
|
$
|
1,030,126
|
$
|
1,030,978
|
As of March 31, 2022
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
172,381
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
172,381
|
||||||||||
1-4 family real estate
|
58,184
|
-
|
-
|
-
|
58,184
|
|||||||||||||||
Commercial real estate - Other
|
288,783
|
15,000
|
17,009
|
14,043
|
334,835
|
|||||||||||||||
Commercial & industrial
|
402,072
|
116
|
386
|
14,102
|
416,676
|
|||||||||||||||
Agricultural
|
62,513
|
327
|
144
|
-
|
62,984
|
|||||||||||||||
Consumer
|
19,397
|
18
|
-
|
24
|
19,439
|
|||||||||||||||
Total
|
$
|
1,003,330
|
$
|
15,461
|
$
|
17,539
|
$
|
28,169
|
$
|
1,064,499
|
As of December 31, 2021
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
169,322
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
169,322
|
||||||||||
1-4 family real estate
|
62,971
|
-
|
-
|
-
|
62,971
|
|||||||||||||||
Commercial real estate - Other
|
282,268
|
14,976
|
27,112
|
15,299
|
339,655
|
|||||||||||||||
Commercial & industrial
|
341,661
|
4,658
|
6,300
|
9,355
|
361,974
|
|||||||||||||||
Agricultural
|
72,295
|
255
|
460
|
-
|
73,010
|
|||||||||||||||
Consumer
|
24,000
|
-
|
-
|
46
|
24,046
|
|||||||||||||||
Total
|
$
|
952,517
|
$
|
19,889
|
$
|
33,872
|
$
|
24,700
|
$
|
1,030,978
|
As of March 31, 2022
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-
Modification Outstanding Recorded Investment
|
Specific Reserves Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate
|
1
|
$
|
1,351
|
$
|
1,351
|
-
|
||||||||||
Total
|
1
|
$
|
1,351
|
$
|
1,351
|
$
|
-
|
As of December 31, 2021
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-
Modification Outstanding Recorded Investment
|
Specific Reserves Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate
|
1
|
$
|
1,402
|
$
|
1,402
|
-
|
||||||||||
Total
|
1
|
$
|
1,402
|
$
|
1,402
|
$
|
-
|
As of March 31, 2022
|
As of December 31, 2021
|
|||||||
Number of
contracts
|
Amount
|
Number of contracts
|
Amount
|
|||||
(Dollars in thousands)
|
||||||||
Accrual
|
-
|
$ -
|
-
|
$ -
|
||||
Nonaccrual
|
1
|
1,351
|
1
|
1,402
|
||||
Total
|
1
|
$ 1,351
|
1
|
$ 1,402
|
March 31,
|
December 31,
|
|||||||||||||||
2022
|
2021
|
|||||||||||||||
Amount
|
Percentage of
Total
|
Amount
|
Percentage of
Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Demand deposits
|
$
|
420,972
|
32.8
|
%
|
$
|
366,705
|
30.1
|
%
|
||||||||
Interest-bearing transaction deposits
|
606,246
|
47.2
|
%
|
583,389
|
47.9
|
%
|
||||||||||
Savings deposits
|
97,520
|
7.6
|
%
|
89,778
|
7.4
|
%
|
||||||||||
Time deposits ($250,000 or less)
|
115,483
|
9.0
|
%
|
132,690
|
10.9
|
%
|
||||||||||
Time deposits (more than $250,000)
|
43,058
|
3.4
|
%
|
44,909
|
3.7
|
%
|
||||||||||
Total interest-bearing deposits
|
862,307
|
67.2
|
%
|
850,766
|
69.9
|
%
|
||||||||||
Total deposits
|
$
|
1,283,279
|
100.0
|
%
|
$
|
1,217,471
|
100.0
|
%
|
For the Three Months Ended
March 31,
|
For the Year Ended December
31,
|
|||||||||||||||
2022
|
2021
|
|||||||||||||||
Average
Balance
|
Weighted A
verage Rate |
Average
Balance
|
Weighted Average Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Demand deposits
|
$
|
385,664
|
0.00
|
%
|
$
|
288,446
|
0.00
|
%
|
||||||||
Interest-bearing transaction deposits
|
543,611
|
0.30
|
%
|
375,048
|
0.34
|
%
|
||||||||||
Savings deposits
|
92,835
|
0.21
|
%
|
55,220
|
0.23
|
%
|
||||||||||
Time deposits
|
169,602
|
0.62
|
%
|
205,437
|
0.81
|
%
|
||||||||||
Total interest-bearing deposits
|
806,048
|
0.36
|
%
|
635,705
|
0.48
|
%
|
||||||||||
Total deposits
|
$
|
1,191,712
|
0.24
|
%
|
$
|
924,151
|
0.33
|
%
|
As of March 31, 2022 Maturity Within:
|
||||||||||||||||||||
Three Months
|
Three to Six
Months
|
Six to 12
Months
|
After 12
Months |
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits ($250,000 or less)
|
$
|
37,375
|
$
|
19,006
|
$
|
29,628
|
$
|
29,474
|
$
|
115,483
|
||||||||||
Time deposits (more than $250,000)
|
5,584
|
6,663
|
24,617
|
6,194
|
43,058
|
|||||||||||||||
Total time deposits
|
$
|
42,959
|
$
|
25,669
|
$
|
54,245
|
$
|
35,668
|
$
|
158,541
|
As of December 31, 2021 Maturity Within:
|
||||||||||||||||||||
Three Months
|
Three to Six
Months
|
Six to 12
Months
|
After 12
Months
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits ($250,000 or less)
|
$
|
32,680
|
$
|
37,016
|
$
|
31,197
|
$
|
31,797
|
$
|
132,690
|
||||||||||
Time deposits (more than $250,000)
|
18,234
|
5,932
|
10,729
|
10,014
|
44,909
|
|||||||||||||||
Total time deposits
|
$
|
50,914
|
$
|
42,948
|
$
|
41,926
|
$
|
41,811
|
$
|
177,599
|
Actual
|
With Capital
Conservation Buffer
|
Minimum to be "Well-
Capitalized" Under
Prompt Corrective Action
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of March 31, 2022
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
$
|
133,374
|
12.54
|
%
|
$
|
111,708
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
133,488
|
12.56
|
%
|
111,602
|
10.50
|
%
|
$
|
106,288
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
122,776
|
11.54
|
%
|
90,431
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
122,889
|
11.56
|
%
|
90,345
|
8.50
|
%
|
85,030
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
122,776
|
11.54
|
%
|
74,472
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
122,889
|
11.56
|
%
|
74,401
|
7.00
|
%
|
69,087
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Company
|
122,776
|
9.27
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
122,889
|
9.28
|
%
|
N/A
|
N/A
|
66,176
|
5.00
|
%
|
Actual
|
With Capital
Conservation Buffer
|
Minimum to be "Well-
Capitalized" Under
Prompt Corrective Action
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
$
|
127,946
|
12.54
|
%
|
$
|
107,126
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
127,844
|
12.54
|
%
|
107,020
|
10.50
|
%
|
$
|
101,924
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
117,631
|
11.53
|
%
|
86,721
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
117,528
|
11.53
|
%
|
86,635
|
8.50
|
%
|
81,539
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
117,631
|
11.53
|
%
|
71,417
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
117,528
|
11.53
|
%
|
71,347
|
7.00
|
%
|
66,250
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Company
|
117,631
|
10.56
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
117,528
|
10.55
|
%
|
N/A
|
N/A
|
55,714
|
5.00
|
%
|
Payments Due as of March 31, 2022
|
||||||||||||||||||||
Within One
Year
|
One to Three
Years
|
Three to Five
Years
|
After Five
Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Deposits without a stated maturity
|
$
|
1,124,738
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,124,738
|
||||||||||
Time deposits
|
122,872
|
33,723
|
1,946
|
-
|
158,541
|
|||||||||||||||
Operating lease commitments
|
606
|
689
|
181
|
-
|
1,476
|
|||||||||||||||
Total contractual obligations
|
$
|
1,248,216
|
$
|
34,412
|
$
|
2,127
|
$
|
-
|
$
|
1,284,755
|
Payments Due as of December 31, 2021
|
||||||||||||||||||||
Within One
Year
|
One to Three
Years
|
Three to Five
Years
|
After Five
Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Deposits without a stated maturity
|
$
|
1,039,872
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,039,872
|
||||||||||
Time deposits
|
135,788
|
39,904
|
1,907
|
-
|
177,599
|
|||||||||||||||
Operating lease commitments
|
611
|
782
|
241
|
-
|
1,634
|
|||||||||||||||
Total contractual obligations
|
$
|
1,176,271
|
$
|
40,686
|
$
|
2,148
|
$
|
-
|
$
|
1,219,105
|
March 31,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
(Dollars in thousands)
|
||||||||
Commitments to extend credit
|
$
|
215,268
|
$
|
200,393
|
||||
Standby letters of credit
|
4,243
|
5,809
|
||||||
Total
|
$
|
219,511
|
$
|
206,202
|
Employment Agreement dated March 30, 2022 between the Company and Thomas L. Travis (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on April 5, 2022)
|
||
Employment Agreement dated March 30, 2022 between the Company and John T. Phillips (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the SEC on April 5, 2022)
|
||
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
101.INS
|
XBRL Instance Document.
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
BANK7 CORP.
|
|||
DATED:
|
May 13, 2022
|
By: /s/ Thomas L. Travis
|
|
Thomas L. Travis
|
|||
President and Chief Executive Officer
|
|||
DATED:
|
May 13, 2022
|
By: /s/ Kelly J. Harris
|
|
Kelly J. Harris
|
|||
Executive Vice President and Chief Financial
Officer
|