|
ANNUAL 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
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification Number)
|
|
||
(Address of principal executive offices) | (Zip Code) |
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
Smaller reporting company
|
Emerging growth company
|
PART I
|
|
1
|
|
12
|
|
22
|
|
22
|
|
23
|
|
23
|
|
PART II
|
|
23
|
|
24
|
|
26
|
|
47
|
|
49
|
|
93
|
|
93
|
|
94
|
|
94
|
|
PART III
|
|
95
|
|
95
|
|
95
|
|
95
|
|
95
|
|
PART IV
|
|
95
|
|
Item 16. Form 10-K Summary |
97 |
98 |
•
|
the development of deep business relationships with our commercial customers and their principals;
|
•
|
disciplined growth without compromising our asset quality or credit culture;
|
•
|
drawing upon years of executive level experience at multi-billion dollar banks;
|
•
|
efficiencies gained by adherence to automated and repeatable processes; and
|
•
|
investing in our people and technology.
|
•
|
that a majority of our board of directors consists of “independent directors,” as defined under NASDAQ rules;
|
• |
that director nominations are selected, or recommended for the board of directors’ selection, by either (i) the independent directors constituting a majority of the board of directors’ independent directors
in a vote in which only independent directors participate, or (ii) a nominating and corporate governance committee that is composed entirely of independent directors; and
|
•
|
that we have a compensation committee that is composed entirely of independent directors.
|
• |
historical and projected financial condition, liquidity and results of operations;
|
• |
the Company’s capital levels and requirements;
|
• |
statutory and regulatory prohibitions and other limitations;
|
• |
any contractual restriction on the Company’s ability to pay cash dividends, including pursuant to the terms of any of its credit agreements or other borrowing arrangements;
|
• |
business strategy;
|
• |
tax considerations;
|
• |
any acquisitions or potential acquisitions;
|
• |
general economic conditions; and
|
• |
other factors deemed relevant by the Board of Directors.
|
Plan
|
Number of
securities to be
issued upon
exercise of
outstanding
options and rights
|
Weighted
average
exercise price
|
Number of
securities
remaining
available for
issuance under
plan
|
|||||||||
Equity compensation plans approved by shareholders
|
364,141
|
$
|
17.52
|
700,087
|
• |
our ability to effectively execute our expansion strategy and manage our growth, including identifying and consummating suitable acquisitions;
|
• |
business and economic conditions, particularly those affecting our market areas of Oklahoma, the Dallas/Fort Worth metropolitan area and Kansas, including a decrease in or the volatility of oil and gas
prices or agricultural commodity prices within the region;
|
•
|
the geographic concentration of our markets in Oklahoma, the Dallas/Fort Worth metropolitan area and Kansas;
|
•
|
successful integration of Watonga Bancshares, Inc.
|
•
|
high concentrations of loans secured by real estate and energy located in our market areas;
|
• |
risks associated with our commercial loan portfolio, including the risk for deterioration in value of the general business assets that secure such loans;
|
•
|
risks related to the significant amount of credit that we have extended to a limited number of borrowers;
|
•
|
our ability to maintain our reputation;
|
•
|
our ability to successfully manage our credit risk and the sufficiency of our allowance;
|
•
|
reinvestment risks associated with a significant portion of our loan portfolio maturing in one year or less;
|
•
|
our ability to attract, hire and retain qualified management personnel;
|
• |
our dependence on our management team, including our ability to retain executive officers and key employees and their customer and community relationships;
|
•
|
interest rate fluctuations, which could have an adverse effect on our profitability;
|
•
|
competition from banks, credit unions and other financial services providers;
|
•
|
system failures, service denials, cyber-attacks and security breaches;
|
•
|
our ability to maintain effective internal control over financial reporting;
|
• |
employee error, fraudulent activity by employees or customers and inaccurate or incomplete information about our customers and counterparties;
|
• |
increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all;
|
•
|
costs and effects of litigation, investigations or similar matters to which we may be subject, including any effect on our reputation;
|
•
|
severe weather, acts of god, acts of war, pandemics or terrorism;
|
• |
compliance with governmental and regulatory requirements, including the Dodd-Frank and Wall Street Consumer Protection Act, or Dodd-Frank Act, and other regulations relating to banking, consumer protection,
securities and tax matters;
|
• |
changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters, including the policies of the Federal Reserve
and as a result of initiatives of the Trump administration; and
|
•
|
other factors that are discussed in the section entitled “Risk Factors,” beginning on page 12.
|
Net Interest Margin
|
||||||||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
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
|
$
|
129,624
|
$
|
1,673
|
1.29
|
%
|
$
|
126,136
|
$
|
178
|
0.25
|
%
|
$
|
116,295
|
$
|
828
|
0.71
|
%
|
||||||||||||||||||
Debt securities, taxable
|
145,915
|
2,313
|
1.59
|
4,663
|
312
|
3.84
|
1,123
|
36
|
3.21
|
|||||||||||||||||||||||||||
Debt securities, tax exempt(1)
|
21,635
|
360
|
1.66
|
1,852
|
31
|
1.62
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Loans held for sale
|
586
|
-
|
-
|
318
|
-
|
-
|
244
|
-
|
-
|
|||||||||||||||||||||||||||
Total loans(2)
|
1,143,380
|
74,403
|
6.51
|
905,804
|
55,768
|
6.16
|
823,228
|
52,450
|
6.37
|
|||||||||||||||||||||||||||
Total interest-earning assets
|
1,441,140
|
78,749
|
5.46
|
1,038,773
|
56,289
|
5.42
|
940,890
|
53,314
|
5.67
|
|||||||||||||||||||||||||||
Noninterest-earning assets
|
23,532
|
7,361
|
8,067
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
1,464,672
|
$
|
1,046,134
|
$
|
948,957
|
||||||||||||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||||
Transaction accounts
|
$
|
724,617
|
7,842
|
1.08
|
%
|
$
|
430,268
|
1,396
|
0.32
|
%
|
$
|
377,519
|
2,729
|
0.72
|
%
|
|||||||||||||||||||||
Time deposits
|
165,735
|
1,480
|
0.89
|
205,437
|
1,657
|
0.81
|
207,442
|
3,424
|
1.65
|
|||||||||||||||||||||||||||
Total interest-bearing deposits
|
890,352
|
9,322
|
1.05
|
635,705
|
3,053
|
0.48
|
584,961
|
6,153
|
1.05
|
|||||||||||||||||||||||||||
Total interest-bearing liabilities
|
890,352
|
9,322
|
1.05
|
635,705
|
3,053
|
0.48
|
584,961
|
6,153
|
1.05
|
|||||||||||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits
|
432,901
|
288,446
|
256,431
|
|||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities
|
7,520
|
4,930
|
5,206
|
|||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities
|
440,421
|
293,376
|
261,637
|
|||||||||||||||||||||||||||||||||
Shareholders’ equity
|
133,899
|
117,053
|
102,359
|
|||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
1,464,672
|
$
|
1,046,134
|
$
|
948,957
|
||||||||||||||||||||||||||||||
Net interest income
|
$
|
69,427
|
$
|
53,236
|
$
|
47,161
|
||||||||||||||||||||||||||||||
Net interest spread
|
4.42
|
%
|
4.94
|
%
|
4.61
|
%
|
||||||||||||||||||||||||||||||
Net interest margin
|
4.82
|
%
|
5.12
|
%
|
5.01
|
%
|
(1) |
Taxable-equivalent yield of 2.20% as of December 31, 2022, applying a 24.5% effective tax rate
|
(2) |
Average loan balances include monthly average nonaccrual loans of $8.8 million, $12.6 million and $11.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.
|
- |
Total interest income on loans increased $18.6 million, or 33.4%, to $74.4 million, which was attributable to a $237.6 million increase in the average balance of loans to $1.14 billion during the year ended
2022 as compared with the average balance of $905.8 million for the year ended 2021;
|
- |
Yields on our interest-earning assets totaled 5.46%, an increase of 4 basis points which was attributable to higher loan rates of 35 basis points, an increase in yield on short term investments of 104 basis
points, and a decrease in yield on taxable debt securities of 225 basis points; and
|
- |
Net interest margin for the years ended 2022 and 2021 was 4.82% and 5.12%, respectively.
|
- |
Total interest income on loans increased $3.3 million, or 6.3%, to $55.8 million, which was attributable to a $82.6 million increase in the average balance of loans to $905.8 million during the year ended
2021 as compared with the average balance of $823.2 million for the year ended 2020;
|
- |
Loan fees totaled $7.8 million, an increase of $2.8 million or 54.7%. $949,000 of the increase was due to PPP fee income recognized;
|
- |
Yields on our interest-earning assets totaled 5.42%, a decrease of 25 basis points which was attributable to lower loan rates and a decrease in yield on short term investments of 46 basis points, both were
primarily impacted by the aforementioned changes in market interest rates related to the pandemic; and
|
- |
Net interest margin for the years ended 2021 and 2020 was 5.12% and 5.01%, respectively.
|
Analysis of Changes in Interest Income and Expenses
|
||||||||||||||||||||||||
For the Year Ended
December 31, 2022 vs 2021
|
For the Year Ended
December 31, 2021 vs 2020
|
|||||||||||||||||||||||
Change due to:
|
Change due to:
|
|||||||||||||||||||||||
|
Volume(1)
|
Rate(1)
|
Interest
Variance
|
Volume(1)
|
Rate(1)
|
Interest
Variance
|
||||||||||||||||||
|
(Dollars in thousands)
|
(Dollars in thousands)
|
||||||||||||||||||||||
Increase (decrease) in interest income:
|
||||||||||||||||||||||||
Short-term investments
|
$
|
10
|
$
|
1,485
|
$
|
1,495
|
$
|
70
|
$
|
(585
|
)
|
$
|
(515
|
)
|
||||||||||
Debt securities
|
7,633
|
(5,303
|
)
|
2,330
|
354
|
(211
|
)
|
143
|
||||||||||||||||
Total loans
|
14,635
|
4,000
|
18,635
|
5,260
|
(1,943
|
)
|
3,317
|
|||||||||||||||||
Total increase (decrease) in interest income
|
22,278
|
182
|
22,460
|
5,684
|
(2,739
|
)
|
2,945
|
|||||||||||||||||
|
||||||||||||||||||||||||
Increase (decrease) in interest expense:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
942
|
5,504
|
6,446
|
380
|
(1,713
|
)
|
(1,333
|
)
|
||||||||||||||||
Time deposits
|
(322
|
)
|
145
|
(177
|
)
|
(33
|
)
|
(1,734
|
)
|
(1,767
|
)
|
|||||||||||||
Total interest-bearing deposits
|
620
|
5,649
|
6,269
|
347
|
(3,447
|
)
|
(3,100
|
)
|
||||||||||||||||
Total increase (decrease) in interest expense
|
620
|
5,649
|
6,269
|
347
|
(3,447
|
)
|
(3,100
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Increase (Decrease) in net interest income
|
$
|
21,657
|
$
|
(5,466
|
)
|
$
|
16,191
|
$
|
5,337
|
$
|
708
|
$
|
6,045
|
As of December 31, 2022
|
||||||||||||||||||||||||||||||||||||||||
Within One Year
|
After One Year But
Within Five Years |
After Five Years But
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
|
$
|
11
|
2.62
|
%
|
$
|
176
|
1.83
|
%
|
$
|
955
|
1
|
%
|
$
|
-
|
0
|
%
|
$
|
1,142
|
1.21
|
%
|
||||||||||||||||||||
Mortgage-backed securities
|
500
|
1.17
|
9,599
|
0.96
|
3,541
|
1.30
|
24,434
|
1.66
|
38,074
|
1.45
|
||||||||||||||||||||||||||||||
State and political subdivisions
|
2,104
|
1.61
|
15,070
|
1.24
|
10,650
|
1.44
|
531
|
1.48
|
28,356
|
1.35
|
||||||||||||||||||||||||||||||
U.S. Treasuries
|
-
|
-
|
98,168
|
1.18
|
2,492
|
1.11
|
-
|
-
|
100,660
|
1.18
|
||||||||||||||||||||||||||||||
Corporate debt securities
|
-
|
-
|
-
|
-
|
4,934
|
3.36
|
-
|
-
|
4,933
|
3.36
|
||||||||||||||||||||||||||||||
Total
|
$
|
2,615
|
1.53
|
%
|
$
|
123,014
|
1.17
|
%
|
$
|
22,571
|
1.78
|
%
|
$
|
24,965
|
1.66
|
%
|
$
|
173,165
|
1.34
|
%
|
||||||||||||||||||||
Percentage of total
|
1.51
|
%
|
71.04
|
%
|
13.03
|
%
|
14.42
|
%
|
100.00
|
%
|
- |
The provision for loan losses increased from $4.2 million to $4.5 million; and
|
- |
The allowance as a percentage of loans increased by 16 basis points to 1.16%.
|
- |
The provision for loan losses decreased from $5.4 million to $4.2 million; and
|
- |
The allowance as a percentage of loans decreased by 15 basis points to 1.00%.
|
For the Years Ended
|
For the Years Ended
|
|||||||||||||||||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||||||||||||||||
2022
|
2021
|
$ Increase
(Decrease)
|
% Increase
(Decrease) |
2021
|
2020
|
$ Increase
(Decrease) |
% Increase
(Decrease) |
|||||||||||||||||||||||||
(Dollars in thousands)
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Noninterest income:
|
||||||||||||||||||||||||||||||||
Mortgage lending income
|
$
|
486
|
$
|
435
|
$
|
51
|
11.72
|
%
|
$
|
435
|
$
|
175
|
$
|
260
|
148.57
|
%
|
||||||||||||||||
Gain (Loss) on sales of available-for-sale debt securities
|
(127
|
)
|
-
|
(127
|
)
|
-100.00
|
%
|
-
|
||||||||||||||||||||||||
Service charges on deposit accounts
|
900
|
550
|
350
|
63.64
|
%
|
550
|
442
|
108
|
24.43
|
%
|
||||||||||||||||||||||
Other income and fees
|
1,680
|
1,265
|
415
|
32.81
|
%
|
1,265
|
1,048
|
217
|
20.71
|
%
|
||||||||||||||||||||||
Total noninterest income
|
$
|
2,939
|
$
|
2,250
|
$
|
689
|
30.62
|
%
|
$
|
2,250
|
$
|
1,665
|
$
|
585
|
35.14
|
%
|
For the Years Ended
|
For the Years Ended
|
|||||||||||||||||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||||||||||||||||
2022
|
2021
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
2021
|
2020
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Noninterest expense:
|
||||||||||||||||||||||||||||||||
Salaries and employee benefits
|
$
|
17,040
|
$
|
11,983
|
$
|
5,057
|
42.20
|
%
|
$
|
11,983
|
$
|
10,130
|
$
|
1,853
|
18.29
|
%
|
||||||||||||||||
Furniture and equipment
|
1,468
|
883
|
585
|
66.25
|
%
|
883
|
868
|
15
|
1.73
|
%
|
||||||||||||||||||||||
Occupancy
|
2,329
|
1,899
|
430
|
22.64
|
%
|
1,899
|
1,957
|
(58
|
)
|
-2.96
|
%
|
|||||||||||||||||||||
Data and item processing
|
2,068
|
1,237
|
831
|
67.18
|
%
|
1,237
|
1,091
|
146
|
13.38
|
%
|
||||||||||||||||||||||
Accounting, marketing, and legal fees
|
984
|
800
|
184
|
23.00
|
%
|
800
|
536
|
264
|
49.25
|
%
|
||||||||||||||||||||||
Regulatory assessments
|
1,344
|
604
|
740
|
122.52
|
%
|
604
|
506
|
98
|
19.37
|
%
|
||||||||||||||||||||||
Advertising and public relations
|
477
|
282
|
195
|
69.15
|
%
|
282
|
400
|
(118
|
)
|
-29.50
|
%
|
|||||||||||||||||||||
Travel, lodging and entertainment
|
363
|
409
|
(46
|
)
|
-11.25
|
%
|
409
|
241
|
168
|
69.71
|
%
|
|||||||||||||||||||||
Other expense
|
2,568
|
2,300
|
268
|
11.65
|
%
|
2,300
|
1,863
|
437
|
23.46
|
%
|
||||||||||||||||||||||
Total noninterest expense
|
$
|
28,641
|
$
|
20,397
|
$
|
8,244
|
40.42
|
%
|
$
|
20,397
|
$
|
17,592
|
$
|
2,805
|
15.94
|
%
|
- |
Salaries and employee benefits expense was $17.0 million compared to $12.0 million, an increase of $5.1 million, or 42.2%. The increase was attributable to overall increases in compensation to remain
competitive, and due to our acquisition of Cornerstone Bank in late 2021, which increased employee headcount.
|
- |
Salaries and employee benefits expense was $12.0 million compared to $10.1 million, an increase of $1.9 million, or 18.3%. The increase was attributable to overall increases in compensation to remain
competitive, and partially due to our acquisition of Cornerstone Bank in late 2021, which increased employee headcount.
|
|
As of December 31,
|
|||||||||||||||||||||||
|
2022
|
2021
|
2020
|
|||||||||||||||||||||
|
Amount
|
% of Total
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Construction & development
|
$
|
163,203
|
12.8
|
%
|
$
|
169,322
|
16.4
|
%
|
$
|
107,855
|
12.8
|
%
|
||||||||||||
1-4 family real estate
|
76,928
|
6.0
|
%
|
62,971
|
6.1
|
%
|
29,079
|
3.5
|
%
|
|||||||||||||||
Commercial real estate - other
|
439,001
|
34.5
|
%
|
339,655
|
32.9
|
%
|
290,489
|
34.6
|
%
|
|||||||||||||||
Total commercial real estate
|
679,132
|
53.3
|
%
|
571,948
|
55.5
|
%
|
427,423
|
50.9
|
%
|
|||||||||||||||
|
||||||||||||||||||||||||
Commercial & industrial
|
513,011
|
40.3
|
%
|
361,974
|
35.1
|
%
|
351,248
|
41.9
|
%
|
|||||||||||||||
Agricultural
|
66,145
|
5.2
|
%
|
73,010
|
7.1
|
%
|
50,519
|
6.0
|
%
|
|||||||||||||||
Consumer
|
14,949
|
1.2
|
%
|
24,046
|
2.3
|
%
|
9,898
|
1.2
|
%
|
|||||||||||||||
Gross loans
|
1,273,237
|
100.0
|
%
|
1,030,978
|
100.0
|
%
|
839,088
|
100.0
|
%
|
|||||||||||||||
Less: unearned income, net
|
(2,781
|
)
|
(2,577
|
)
|
(2,475
|
)
|
||||||||||||||||||
Total Loans, net of unearned income
|
1,270,456
|
1,028,401
|
836,613
|
|||||||||||||||||||||
Less: Allowance for loan losses
|
(14,734
|
)
|
(10,316
|
)
|
(9,639
|
)
|
||||||||||||||||||
Net loans
|
$
|
1,255,722
|
$
|
1,018,085
|
$
|
826,974
|
As of December 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
|
$
|
11,749
|
$
|
81,002
|
$
|
7,556
|
$
|
57,439
|
$
|
-
|
$
|
1,160
|
$
|
-
|
$
|
4,297
|
$
|
163,203
|
||||||||||||||||||
1-4 family real estate
|
10,550
|
12,664
|
24,741
|
15,782
|
314
|
6,606
|
-
|
6,271
|
76,928
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
2,680
|
59,870
|
131,105
|
207,819
|
6,635
|
17,146
|
-
|
13,746
|
439,001
|
|||||||||||||||||||||||||||
Total commercial real estate
|
24,979
|
153,536
|
163,402
|
281,040
|
6,949
|
24,912
|
-
|
24,314
|
679,132
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Commercial & industrial
|
43,823
|
234,573
|
60,275
|
159,571
|
3,745
|
10,390
|
-
|
634
|
513,011
|
|||||||||||||||||||||||||||
Agricultural
|
1,798
|
17,514
|
8,767
|
33,270
|
469
|
980
|
140
|
3,207
|
66,145
|
|||||||||||||||||||||||||||
Consumer
|
1,683
|
22
|
6,310
|
156
|
587
|
2,860
|
82
|
3,249
|
14,949
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
72,283
|
$
|
405,645
|
$
|
238,754
|
$
|
474,037
|
$
|
11,750
|
$
|
39,142
|
$
|
222
|
$
|
31,404
|
$
|
1,273,237
|
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 commerical 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
|
As of December 31, 2020
|
||||||||||||||||||||||||||||||||||||
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
|
$
|
14
|
$
|
47,649
|
$
|
885
|
$
|
58,387
|
$
|
-
|
$
|
920
|
$
|
-
|
$
|
-
|
$
|
107,855
|
||||||||||||||||||
1-4 family real estate
|
273
|
13,394
|
4,712
|
9,959
|
39
|
702
|
-
|
-
|
29,079
|
|||||||||||||||||||||||||||
Commercial real estate - other
|
2,377
|
55,307
|
45,880
|
180,721
|
294
|
4,288
|
-
|
1,622
|
290,489
|
|||||||||||||||||||||||||||
Total real estate
|
2,664
|
116,350
|
51,477
|
249,067
|
333
|
5,910
|
-
|
1,622
|
427,423
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Commercial & industrial
|
16,914
|
194,520
|
39,593
|
93,707
|
11
|
6,503
|
-
|
-
|
351,248
|
|||||||||||||||||||||||||||
Agricultural
|
5,141
|
27,215
|
2,534
|
14,420
|
60
|
541
|
-
|
608
|
50,519
|
|||||||||||||||||||||||||||
Consumer
|
1,544
|
150
|
6,570
|
65
|
1,057
|
425
|
87
|
-
|
9,898
|
|||||||||||||||||||||||||||
Gross loans
|
$
|
26,263
|
$
|
338,235
|
$
|
100,174
|
$
|
357,259
|
$
|
1,461
|
$
|
13,379
|
$
|
87
|
$
|
2,230
|
$
|
839,088
|
For the Year Ended
December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Balance at beginning of the period
|
$
|
10,316
|
$
|
9,639
|
$
|
7,846
|
||||||
Provision for loan losses
|
4,468
|
4,175
|
5,350
|
|||||||||
Charge-offs:
|
||||||||||||
Construction & development
|
-
|
-
|
-
|
|||||||||
1-4 family real estate
|
-
|
-
|
-
|
|||||||||
Commercial real estate - other
|
-
|
-
|
-
|
|||||||||
Commercial & industrial
|
(2
|
)
|
(3,750
|
)
|
(3,289
|
)
|
||||||
Agricultural
|
(50
|
)
|
-
|
(300
|
)
|
|||||||
Consumer
|
(22
|
)
|
(68
|
)
|
(1
|
)
|
||||||
Total charge-offs
|
(74
|
)
|
(3,818
|
)
|
(3,590
|
)
|
||||||
Recoveries:
|
||||||||||||
Construction & development
|
-
|
-
|
-
|
|||||||||
1-4 family real estate
|
-
|
-
|
2
|
|||||||||
Commercial real estate - other
|
-
|
-
|
-
|
|||||||||
Commercial & industrial
|
10
|
16
|
18
|
|||||||||
Agricultural
|
4
|
300
|
10
|
|||||||||
Consumer
|
10
|
4
|
3
|
|||||||||
Total recoveries
|
24
|
320
|
33
|
|||||||||
Net recoveries (charge-offs)
|
(50
|
)
|
(3,498
|
)
|
(3,557
|
)
|
||||||
Balance at end of the period
|
$
|
14,734
|
$
|
10,316
|
$
|
9,639
|
||||||
Net recoveries (charge-offs) to average loans
|
0.00
|
%
|
0.39
|
%
|
0.43
|
%
|
|
As of December 31,
|
|||||||||||||||||||||||
|
2022
|
2021
|
2020
|
|||||||||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Construction & development
|
$
|
1,889
|
12.8
|
%
|
$
|
1,695
|
16.4
|
%
|
$
|
1,239
|
12.8
|
%
|
||||||||||||
1-4 family real estate
|
890
|
6.0
|
%
|
630
|
6.1
|
%
|
334
|
3.5
|
%
|
|||||||||||||||
Commercial real estate - Other
|
5,080
|
34.5
|
%
|
3,399
|
32.9
|
%
|
3,337
|
34.6
|
%
|
|||||||||||||||
Commercial & industrial
|
5,937
|
40.3
|
%
|
3,621
|
35.2
|
%
|
4,035
|
41.9
|
%
|
|||||||||||||||
Agricultural
|
765
|
5.2
|
%
|
730
|
7.1
|
%
|
580
|
6.0
|
%
|
|||||||||||||||
Consumer
|
173
|
1.2
|
%
|
241
|
2.3
|
%
|
114
|
1.2
|
%
|
|||||||||||||||
Total
|
$
|
14,734
|
100.0
|
%
|
$
|
10,316
|
100.0
|
%
|
$
|
9,639
|
100.0
|
%
|
As of
December 31, |
||||||||||||
2022
|
2021
|
2020
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Nonaccrual loans
|
$
|
8,039
|
$
|
9,885
|
$
|
14,575
|
||||||
Troubled-debt restructurings (1)
|
-
|
-
|
-
|
|||||||||
Accruing loans 90 or more days past due
|
9,941
|
496
|
1,960
|
|||||||||
Total nonperforming loans
|
17,980
|
10,381
|
16,535
|
|||||||||
Other real estate owned
|
-
|
-
|
-
|
|||||||||
Total nonperforming assets
|
$
|
17,980
|
$
|
10,381
|
$
|
16,535
|
||||||
Ratio of nonperforming loans to total loans
|
1.42
|
%
|
1.01
|
%
|
1.98
|
%
|
||||||
Ratio of nonaccrual loans to total loans
|
0.63
|
%
|
0.96
|
%
|
1.74
|
%
|
||||||
Ratio of allowance for loan losses to total loans
|
1.16
|
%
|
1.00
|
%
|
1.15
|
%
|
||||||
Ratio of allowance for loan losses to nonaccrual loans
|
183.28
|
%
|
104.36
|
%
|
66.13
|
%
|
||||||
Ratio of nonperforming assets to total assets
|
1.13
|
%
|
0.77
|
%
|
1.63
|
%
|
As of December 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
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
163,203
|
$
|
163,203
|
||||||||||||||
1-4 family real estate
|
-
|
-
|
-
|
-
|
-
|
76,928
|
76,928
|
|||||||||||||||||||||
Commercial real estate - other
|
-
|
617
|
-
|
-
|
617
|
438,384
|
439,001
|
|||||||||||||||||||||
Commercial & industrial
|
21
|
-
|
9,923
|
9,923
|
9,944
|
503,067
|
513,011
|
|||||||||||||||||||||
Agricultural
|
4
|
-
|
-
|
-
|
4
|
66,141
|
66,145
|
|||||||||||||||||||||
Consumer
|
291
|
82
|
22
|
18
|
395
|
14,554
|
14,949
|
|||||||||||||||||||||
Total
|
$
|
316
|
$
|
699
|
$
|
9,945
|
$
|
9,941
|
$
|
10,960
|
$
|
1,262,277
|
$
|
1,273,237
|
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 December 31, 2020
|
||||||||||||||||||||||||||||
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
|
$
|
714
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
714
|
$
|
107,141
|
$
|
107,855
|
||||||||||||||
1-4 family commerical
|
-
|
-
|
-
|
-
|
-
|
29,079
|
29,079
|
|||||||||||||||||||||
Commercial real estate - Other
|
1,444
|
-
|
1,960
|
1,960
|
3,404
|
287,085
|
290,489
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
-
|
-
|
-
|
-
|
351,248
|
351,248
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
50,519
|
50,519
|
|||||||||||||||||||||
Consumer
|
193
|
-
|
-
|
-
|
193
|
9,705
|
9,898
|
|||||||||||||||||||||
Total
|
$
|
2,351
|
$
|
-
|
$
|
1,960
|
$
|
1,960
|
$
|
4,311
|
$
|
834,777
|
$
|
839,088
|
As of December 31, 2022
|
||||||||||||||||||||
Pass
|
Watch
|
Special
mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
163,203
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
163,203
|
||||||||||
1-4 family real estate
|
76,928
|
-
|
-
|
-
|
76,928
|
|||||||||||||||
Commercial real estate - Other
|
397,295
|
14,976
|
24,747
|
1,983
|
439,001
|
|||||||||||||||
Commercial & industrial
|
493,412
|
-
|
584
|
19,015
|
513,011
|
|||||||||||||||
Agricultural
|
65,857
|
288
|
-
|
-
|
66,145
|
|||||||||||||||
Consumer
|
14,927
|
-
|
-
|
22
|
14,949
|
|||||||||||||||
Total
|
$
|
1,211,622
|
$
|
15,264
|
$
|
25,331
|
$
|
21,020
|
$
|
1,273,237
|
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 December 31, 2020
|
||||||||||||||||||||
Pass
|
Watch
|
Special
mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
107,855
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
107,855
|
||||||||||
1-4 family real estate
|
28,711
|
368
|
-
|
-
|
29,079
|
|||||||||||||||
Commercial real estate - Other
|
248,194
|
24,155
|
10,086
|
8,054
|
290,489
|
|||||||||||||||
Commercial & industrial
|
328,656
|
7,691
|
300
|
14,601
|
351,248
|
|||||||||||||||
Agricultural
|
50,051
|
-
|
-
|
468
|
50,519
|
|||||||||||||||
Consumer
|
9,898
|
-
|
-
|
-
|
9,898
|
|||||||||||||||
Total
|
$
|
773,365
|
$
|
32,214
|
$
|
10,386
|
$
|
23,123
|
$
|
839,088
|
|
As of December 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
|
$
|
1,198
|
$
|
1,198
|
$
|
-
|
|||||||||
Total
|
1
|
$
|
1,198
|
$
|
1,198
|
$
|
-
|
|
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 December 31, 2020
|
|||||||||||||||
|
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Specific reserves
allocated
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Commercial & industrial
|
1
|
$
|
10,886
|
$
|
10,886
|
$
|
-
|
|||||||||
Agricultural
|
1
|
469
|
469
|
-
|
||||||||||||
Commercial real estate
|
1
|
1,622
|
1,622
|
-
|
||||||||||||
Total
|
3
|
$
|
12,977
|
$
|
12,977
|
$
|
-
|
As of December 31
|
||||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||
Number of
contracts
|
Amount
|
Number of
contracts
|
Amount
|
Number of
contracts
|
Amount
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Accrual
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
|||||||||||||||
Nonaccrual
|
1
|
1,198
|
1
|
1,402
|
3
|
12,977
|
||||||||||||||||||
Total
|
1
|
$
|
1,198
|
1
|
$
|
1,402
|
3
|
$
|
12,977
|
As of December 31
|
||||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||
Amount
|
Percentage of
Total
|
Amount
|
Percentage of
Total
|
Amount
|
Percentage of
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Noninterest-bearing demand
|
$
|
439,409
|
30.8
|
%
|
$
|
366,705
|
30.1
|
%
|
$
|
246,569
|
27.2
|
%
|
||||||||||||
Interest-bearing transaction deposits
|
669,852
|
46.7
|
%
|
583,389
|
47.9
|
%
|
392,784
|
43.4
|
%
|
|||||||||||||||
Savings deposits
|
136,537
|
9.6
|
%
|
89,778
|
7.4
|
%
|
54,008
|
6.0
|
%
|
|||||||||||||||
Time deposits ($250,000 or less)
|
140,929
|
9.9
|
%
|
132,690
|
10.9
|
%
|
135,811
|
15.0
|
%
|
|||||||||||||||
Time deposits (more than $250,000)
|
42,573
|
3.0
|
%
|
44,909
|
3.7
|
%
|
76,342
|
8.4
|
%
|
|||||||||||||||
Total interest-bearing deposits
|
989,891
|
69.2
|
%
|
850,766
|
69.9
|
%
|
658,945
|
72.8
|
%
|
|||||||||||||||
Total deposits
|
$
|
1,429,300
|
100.0
|
%
|
$
|
1,217,471
|
100.0
|
%
|
$
|
905,514
|
100.0
|
%
|
For the Year Ended December 31,
|
||||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||
Average
Balance
|
Weighted
Average Rate
|
Average
Balance
|
Weighted
Average Rate
|
Average
Balance
|
Weighted
Average Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Non interest-bearing demand
|
$
|
432,901
|
0.00
|
%
|
$
|
288,446
|
0.00
|
%
|
$
|
256,431
|
0.00
|
%
|
||||||||||||
Interest-bearing transaction deposits
|
613,798
|
1.11
|
%
|
375,048
|
0.34
|
%
|
318,713
|
1.50
|
%
|
|||||||||||||||
Savings deposits
|
110,818
|
0.92
|
%
|
55,220
|
0.23
|
%
|
58,806
|
0.56
|
%
|
|||||||||||||||
Time deposits
|
165,735
|
0.89
|
%
|
205,437
|
0.81
|
%
|
207,442
|
1.65
|
%
|
|||||||||||||||
Total interest-bearing deposits
|
890,351
|
1.05
|
%
|
635,705
|
0.48
|
%
|
584,961
|
1.05
|
%
|
|||||||||||||||
Total deposits
|
$
|
1,323,252
|
0.70
|
%
|
$
|
924,151
|
0.33
|
%
|
$
|
841,392
|
0.73
|
%
|
|
As of December 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)
|
$
|
58,184
|
$
|
25,333
|
$
|
38,844
|
$
|
18,568
|
$
|
140,929
|
||||||||||
Time deposits (more than $250,000)
|
12,292
|
5,579
|
17,001
|
7,701
|
42,573
|
|||||||||||||||
Total time deposits
|
$
|
70,476
|
$
|
30,912
|
$
|
55,845
|
$
|
26,269
|
$
|
183,502
|
|
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 December 31, 2022
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
$
|
158,158
|
12.41
|
%
|
$
|
133,862
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
158,158
|
12.42
|
%
|
133,756
|
10.50
|
%
|
$
|
127,387
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
143,424
|
11.25
|
%
|
108,365
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
143,424
|
11.26
|
%
|
108,279
|
8.50
|
%
|
101,909
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Company
|
143,424
|
11.25
|
%
|
89,241
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
143,424
|
11.26
|
%
|
89,171
|
7.00
|
%
|
82,801
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Company
|
143,424
|
9.19
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
143,424
|
9.18
|
%
|
N/A
|
N/A
|
78,111
|
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
|
%
|
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, 2020:
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Bank7 Corp.
|
$
|
115,375
|
14.73
|
%
|
$
|
82,216
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
115,335
|
14.75
|
%
|
82,114
|
10.50
|
%
|
$
|
78,204
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Bank7 Corp.
|
105,736
|
13.50
|
%
|
66,556
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
105,696
|
13.51
|
%
|
66,473
|
8.50
|
%
|
62,563
|
8.00
|
%
|
|||||||||||||||
CET 1 capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Bank7 Corp.
|
105,736
|
13.50
|
%
|
54,811
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
105,696
|
13.51
|
%
|
54,743
|
7.00
|
%
|
50,832
|
6.50
|
%
|
|||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Bank7 Corp.
|
105,736
|
10.78
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||||
Bank
|
105,696
|
10.78
|
%
|
N/A
|
N/A
|
49,041
|
5.00
|
%
|
|
Payments Due as of December 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
|
$
|
1,245,798
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,245,798
|
||||||||||
Time deposits
|
157,233
|
26,002
|
267
|
-
|
183,502
|
|||||||||||||||
Operating lease commitments
|
532
|
815 |
453 |
530 |
2,330 | |||||||||||||||
Total contractual obligations
|
$
|
1,403,563
|
$
|
26,817
|
$
|
720
|
$
|
530
|
$
|
1,431,630
|
As of December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Commitments to extend credit
|
$
|
198,027
|
$
|
200,393
|
$
|
206,520
|
||||||
Standby letters of credit
|
1,043
|
5,809
|
2,366
|
|||||||||
Total
|
$
|
199,070
|
$
|
206,202
|
$
|
208,886
|
As of December 31,
|
|||||||||||||||||||||||||
2022
|
2021
|
2020
|
|||||||||||||||||||||||
Change in Interest Rates
(Basis Points)
|
Percent Change
in Net Interest
Income
|
Percent
Change in Fair
Value of Equity
|
Percent Change
in Net Interest
Income
|
Percent
Change in Fair
Value of Equity
|
Percent Change
in Net Interest
Income
|
Percent
Change in Fair
Value of Equity
|
|||||||||||||||||||
+400
|
13.41
|
%
|
20.90
|
%
|
32.34
|
%
|
23.35
|
%
|
39.57
|
%
|
19.41
|
%
|
|||||||||||||
+300
|
9.96
|
%
|
20.13
|
%
|
23.63
|
%
|
21.37
|
%
|
29.73
|
%
|
17.53
|
%
|
|||||||||||||
+200
|
6.50
|
%
|
19.17
|
%
|
14.88
|
%
|
19.21
|
%
|
19.87
|
%
|
15.51
|
%
|
|||||||||||||
+100
|
2.99
|
%
|
18.04
|
%
|
6.07
|
%
|
16.86
|
%
|
9.90
|
%
|
13.36
|
%
|
|||||||||||||
Base
|
-0.77
|
%
|
16.91
|
%
|
-2.80
|
%
|
14.33
|
%
|
-0.14
|
%
|
11.06
|
%
|
|||||||||||||
-100
|
-4.82
|
%
|
15.25
|
%
|
-5.38
|
%
|
11.30
|
%
|
-3.11
|
%
|
10.35
|
%
|
|
Page
|
50 | |
|
|
Consolidated Financial Statements:
|
|
51 | |
52 | |
53 | |
54 | |
55 |
|
December 31,
|
|||||||
Assets | 2022 |
2021 |
||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Federal funds sold
|
||||||||
Cash and cash equivalents
|
||||||||
Interest-bearing time deposits in other banks
|
|
|
||||||
Available-for-sale debt securities |
||||||||
Loans, net of allowance for loan losses of $
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Nonmarketable equity securities
|
|
|
||||||
Core deposit intangibles
|
|
|
||||||
Goodwill
|
||||||||
Interest receivable and other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$
|
|
$
|
|
||||
Interest-bearing
|
|
|
||||||
Total deposits
|
|
|
||||||
Income taxes payable |
||||||||
Interest payable and other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Shareholders’ equity
|
||||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income (loss)
|
( |
) | ||||||
Total shareholders’ equity
|
|
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Year ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
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
|
||||||||||||
Mortgage lending income
|
||||||||||||
Loss on sales, prepayments, and calls of available-for-sale debt securities
|
( |
) | ||||||||||
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 | ||||||||||||
Unrealized gains(losses) on securities, net of tax benefit of $
|
$ | ( |
) | $ | $ | |||||||
Reclassification adjustment for realized loss included in net income net of tax of $
|
||||||||||||
Other comprehensive (loss) income
|
$ | ( |
) | $ | $ | |||||||
Comprehensive Income | $ | $ | $ |
Year Ended
December 31, |
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Common Stock (Shares)
|
||||||||||||
Balance at beginning of period
|
|
|
|
|||||||||
Exercise of employee stock options
|
||||||||||||
Shares issued for restricted stock units
|
|
|
|
|||||||||
Shares acquired and canceled
|
|
|
(
|
)
|
||||||||
Balance at end of period
|
|
|
|
|||||||||
Common Stock (Amount)
|
||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
||||||
Shares issued for restricted stock units
|
|
|
(
|
)
|
||||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
||||||
Additional Paid-in Capital
|
||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
||||||
Shares purchased and retired
|
( |
) | ||||||||||
Stock-based compensation expense
|
|
|
|
|||||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
||||||
Retained Earnings
|
||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
||||||
Net income
|
|
|
|
|||||||||
Common stock acquired and canceled
|
|
|
(
|
)
|
||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
||||||
Accumulated Other Comprehensive Income(Loss)
|
||||||||||||
Balance at beginning of period
|
$ | $ | $ | |||||||||
Comprehensive income(loss) |
( |
) | ||||||||||
Balance at end of period
|
$ | ( |
) | $ | $ | |||||||
Total Shareholders’ equity
|
$
|
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
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
|
|
|
|
|||||||||
Gain on sale of premises and equipment
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
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
|
||||||||||||
Net cash received for acquisition, net of cash paid
|
||||||||||||
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 available-for-sale debt securities
|
(
|
)
|
|
|
||||||||
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 settlement of equity compensation
|
( |
) | ||||||||||
Common stock issued for restricted stock units
|
|
|
(
|
)
|
||||||||
Net cash provided by financing activities
|
|
|
|
|||||||||
Net Increase/(Decrease) in Cash and Due from Banks
|
(
|
)
|
|
|
||||||||
Cash and Due from Banks, Beginning of Period
|
|
|
|
|||||||||
Cash and Due from Banks, End of Period
|
$
|
|
$
|
|
$
|
|
||||||
Supplemental Disclosure of Cash Flows Information
|
||||||||||||
Interest paid
|
$
|
|
$
|
|
$
|
|
||||||
Income taxes paid
|
$
|
|
$
|
|
$
|
|
||||||
Dividends declared and not paid
|
$
|
|
$
|
|
$
|
|
||||||
Measurement period goodwill adjustment
|
$
|
|
$
|
|
$
|
|
||||||
Supplemental Disclosure of Investing Activities
|
||||||||||||
Cash consideration for acquisition
|
$ | $ | $ | |||||||||
Fair value of assets acquired in acquisition
|
$
|
|
$
|
|
$
|
|
||||||
Fair value of liabilities assumed in acquisition
|
$ | $ | $ |
Note 1: |
Nature of Operations and Summary of Significant Accounting Policies
|
Note 2: |
Recent Events, Including Mergers and Acquisitions
|
(in thousands)
|
Estimated Fair Value
|
|||
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
|
$ |
|
Actual from Acquisition
Date through
December 31, 2021
|
Pro-Forma for Year Ended December 31,
|
|||||||||||
2021
|
2020
|
|||||||||||
Net interest income
|
$
|
|
$
|
|
$
|
|
||||||
Non-interest income
|
|
|
|
|||||||||
Net income
|
|
|
|
|||||||||
Pro-forma earnings per share:
|
||||||||||||
Basic
|
$
|
|
$
|
|
||||||||
Diluted
|
$
|
|
$
|
|
Note 3: |
Restriction on Cash and Due from Banks
|
Note 4: |
Earnings per Share
|
As of and for the Years ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
(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)
|
|
Note 5: |
Debt Securities
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized
Gains |
Gross Unrealized
Losses |
Fair Value
|
||||||||||||
Available-for-sale as of December 31, 2022
|
||||||||||||||||
U.S. Federal agencies
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Mortgage-backed securities(1)(2)
|
|
|
(
|
)
|
|
|||||||||||
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 December 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
|
|
|
||||||
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
|
|
|
||||||
Total available-for-sale
|
|
|
|
|
|
Year Ended
December 31, 2022
|
Year Ended
December 31, 2021
|
||||||
(in thousands)
|
||||||||
Proceeds from sales, prepayments and calls
|
$
|
|
|
$ |
|
|||
Gross realized gains on sales, prepayments and calls
|
|
|
||||||
Gross realized losses on sales, prepayments and calls
|
(
|
)
|
|
|||||
Total realized (losses), net
|
$ |
(
|
)
|
$ |
|
(in thousands)
|
December 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 as of December 31, 2022
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||
Mortgage-backed securities
|
( |
) | ( |
) | ||||||||||||||||||||
State and political subdivisions(1)
|
( |
) | ( |
) | ||||||||||||||||||||
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 as of December 31, 2021
|
||||||||||||||||||||||||
U.S. Federal agencies
|
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||
State and political subdivisions(1)
|
||||||||||||||||||||||||
U.S. Treasuries
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Corporate debt securities
|
||||||||||||||||||||||||
Total available-for-sale
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
Note 6: |
Loans and Allowance for Loan Losses
|
December 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
|
||||||||||||||||||||||
December 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
|
||||||||||||||||||||||
December 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
|
||||||||||||||||||||||
December 31, 2020
|
||||||||||||||||||||||||||||
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
|
||||||||||||||||||||||
December 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
|
||||||||||||||||||||||
December 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
|
||||||||||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
1 - 4 family real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial real estate - other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial & industrial (1)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
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
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
December 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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction &
Development
|
1 - 4 Family
Real Estate
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Note 7: |
Premises and Equipment
|
|
December 31,
2022
|
December 31,
2021
|
||||||
Land, buildings and improvements
|
$
|
|
$
|
|
||||
Furniture and equipment
|
|
|
||||||
Automobiles
|
|
|
||||||
|
|
|||||||
Less accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
Net premises and equipment
|
$
|
|
$
|
|
Note 8: |
Goodwill and Core Deposit Intangibles
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying
Amount
|
||||||||||
As of December 31, 2022
|
||||||||||||
Goodwill
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Core deposit intangibles
|
|
(
|
)
|
|
||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying
Amount
|
||||||||||
As of December 31, 2021
|
||||||||||||
Goodwill
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Core deposit intangibles
|
|
(
|
)
|
|
||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
2023
|
$ |
|
||
2024
|
|
|||
2025 |
||||
2026 |
||||
2027 |
||||
Thereafter
|
||||
Total
|
$
|
|
Note 9: |
Interest-Bearing Deposits
|
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
Total
|
$
|
|
Note 10: |
Income Taxes
|
Year Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Federal:
|
||||||||||||
Current
|
$
|
|
$
|
|
$
|
|
||||||
Deferred
|
(
|
)
|
|
(
|
)
|
|||||||
Total federal tax provision
|
$
|
|
$
|
|
$
|
|
||||||
State:
|
||||||||||||
Current
|
$
|
|
$
|
|
$
|
|
||||||
Deferred
|
(
|
)
|
|
(
|
)
|
|||||||
Total state tax provision
|
$
|
|
$
|
|
$
|
|
||||||
Total income tax provision
|
$
|
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Statutory U.S. Federal Income Tax
|
$
|
|
$
|
|
$
|
|
||||||
Increase (decrease) resulting from:
|
||||||||||||
State Taxes
|
|
|
|
|||||||||
Permanent Differences
|
|
|
|
|||||||||
Return to provision and deferred true ups | ( |
) | ||||||||||
FIN 48 Activity | ( |
) | ||||||||||
Other
|
|
(
|
)
|
(
|
)
|
|||||||
Provision for income taxes
|
$
|
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||
2022
|
2021
|
|||||||
Deferred tax assets:
|
||||||||
Allowance for loan losses
|
$
|
|
$
|
|
||||
Non-accrual Loans
|
|
|
||||||
Deferred Compensation
|
|
|
||||||
Deferred Revenue | ||||||||
Discounts and premiums on assets acquired | ||||||||
Net unrealized loss on securities available for sale | ||||||||
Accrued expenses | ||||||||
Lease liabilities
|
|
|
||||||
Total deferred tax assets
|
$
|
|
$
|
|
||||
Deferred tax liabilities:
|
||||||||
Property and equipment
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Intangible assets
|
(
|
)
|
(
|
)
|
||||
Prepaid Expenses
|
(
|
)
|
(
|
)
|
||||
Right of Use Asset
|
( |
) | ||||||
Net unrealized gains on securities available for sale | ( |
) | ||||||
Other
|
(
|
)
|
(
|
)
|
||||
Total deferred tax liabilities
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Net deferred tax assets
|
$
|
|
$
|
|
|
For the Year Ended December 31,
|
|||||||
|
2022
|
2021
|
||||||
|
||||||||
Balance at beginning of year
|
$
|
|
$
|
|
||||
Additions for positions taken in prior years
|
|
|
||||||
Reductions for positions taken in prior years
|
|
|
||||||
Balance at end of year
|
$
|
|
$
|
|
Note 11: |
Letters of Credit
|
Note 12: |
Advances and Borrowings
|
Note 13: |
Shareholders’ Equity
|
|
Year Ended December 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 December 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 14: |
Related-Party Transactions
|
Note 15: |
Employee Benefits
|
Options
|
Wgtd. Avg.
Exercise Price
|
Wgtd. Avg.
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Year Ended December 31, 2022
|
||||||||||||||||
Outstanding at December 31, 2021
|
|
$
|
|
|||||||||||||
Options Granted
|
|
|
||||||||||||||
Options Exercised
|
|
|
||||||||||||||
Options Forfeited
|
|
|
||||||||||||||
Outstanding at December 31, 2022
|
|
|
|
$
|
|
|||||||||||
Exercisable at December 31, 2022
|
|
|
|
$
|
|
Options |
Wgtd. Avg.
Exercise Price
|
Wgtd. Avg.
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Year Ended December 31, 2021
|
||||||||||||||||
Outstanding at December 31, 2020
|
|
|
$
|
|
||||||||||||
Options Granted
|
|
|
||||||||||||||
Options Exercised
|
|
|
||||||||||||||
Options Forfeited
|
(
|
)
|
|
|||||||||||||
Outstanding at December 31, 2021
|
|
|
|
$
|
|
|||||||||||
Exercisable at December 31, 2021
|
|
|
|
$
|
|
|
For the Year Ended
|
|||||||
|
December 31,
2022
|
December 31,
2021
|
||||||
Risk-free interest rate
|
|
%
|
|
%
|
||||
Dividend yield
|
|
%
|
|
%
|
||||
Stock price volatility
|
|
%
|
|
%
|
||||
Expected term
|
|
|
Number of
Shares
|
Wgtd. Avg. Grant
Date Fair
Value
|
|||||||
Year Ended December 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
|
|||||||
Year Ended December 31, 2021
|
||||||||
Outstanding at December 31, 2020
|
|
$
|
|
|||||
Shares granted
|
|
|
||||||
Shares vested
|
(
|
)
|
|
|||||
Shares forfeited
|
|
|
||||||
End of the period balance
|
|
$
|
|
Note 16: |
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)
|
|||||||||||||
December 31, 2022
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
December 31, 2021
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Weighted-
Average
|
||||||||
December 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
|
||||||||||||||||
December 31, 2022
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
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 17: |
Financial Instruments with Off-Balance Sheet Risk
|
December 31,
2022
|
December 31,
2021
|
|||||||
Commitments to extend credit
|
$
|
|
$
|
|
||||
Financial and performance standby letters of credit
|
|
|
||||||
$
|
|
$
|
|
Note 18: |
Significant Estimates and Concentrations
|
Note 19: |
Operating Leases
|
Year Ending December 31:
|
||||
2022
|
$
|
|
||
2021
|
|
|||
2020
|
|
2023
|
$ |
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Thereafter
|
|
|||
Total lease payments
|
|
|||
Less imputed interest
|
(
|
)
|
||
Operating lease liability
|
$ |
|
Note 20: |
Parent-only Financial Statements (dollars in thousands)
|
Condensed Balance Sheets
|
||||||||
Assets
|
December 31,
2022
|
December 31,
2021
|
||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Investment in bank subsidiary
|
|
|
||||||
Dividends receivable
|
|
|
||||||
Goodwill
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Dividends Payable
|
$ |
$ |
||||||
Other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
|
||||||||
Total shareholders’ equity
|
|
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Condensed Statements of Comprehensive Income
|
For the Years Ended December 31,
|
|||||||||||
2022
|
2021
|
2020
|
||||||||||
Income
|
||||||||||||
Dividends from subsidiary bank
|
$
|
|
$
|
|
$
|
|
||||||
Total Income
|
|
|
|
|||||||||
Expense
|
||||||||||||
Other
|
|
|
|
|||||||||
Total expense
|
|
|
|
|||||||||
Income and equity in undistributed net income of bank subsidiary
|
|
|
|
|||||||||
Equity in undistributed net income of bank subsidiary
|
|
|
|
|||||||||
Income before Taxes
|
|
|
|
|||||||||
Net Income Available to Common Shareholders
|
$
|
|
$
|
|
$
|
|
||||||
Other Comprehensive Income | ||||||||||||
Equity in other comprehensive (loss) income of subsidiary | ( |
) | ||||||||||
Other comprehensive gain(loss)
|
$ | ( |
) | $ | $ | |||||||
Comprehensive Income | $ | $ | $ |
Condensed Statements of Cash Flows
|
For the Years Ended December 31,
|
|||||||||||
2022
|
2021
|
2020
|
||||||||||
Operating Activities
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Items not requiring (providing) cash
|
||||||||||||
Equity in undistributed net income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Changes in
|
||||||||||||
Other current assets and liabilities
|
( |
) |
(
|
)
|
|
|||||||
Net cash provided by operating activities
|
|
|
||||||||||
Financing Activities
|
||||||||||||
Common stock issued, net of offering costs
|
|
|
(
|
)
|
||||||||
Dividends paid
|
( |
) |
(
|
)
|
(
|
)
|
||||||
Net cash used in financing activities
|
( |
) |
(
|
)
|
(
|
)
|
||||||
Increase (Decrease) in Cash and Due from Banks
|
|
(
|
)
|
|
||||||||
Cash and Due from Banks, Beginning of Period
|
|
|
|
|||||||||
Cash and Due from Banks, End of Period
|
$
|
|
$
|
|
$
|
|
||||||
Supplemental Disclosure of Cash Flows Information
|
||||||||||||
Dividends declared and not paid
|
$
|
|
$
|
|
$
|
|
a) |
Controls and Procedures
|
b) |
Management’s Annual Report on Internal Control over Financial Reporting
|
Bank7 Corp.
|
|||
Oklahoma City, Oklahoma
|
|||
March 24, 2023
|
|||
/s/
|
Thomas L. Travis
|
||
Thomas L. Travis
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|||
/s/
|
Kelly J. Harris
|
||
Kelly J. Harris
|
|||
Executive Vice President and Chief Financial Officer
|
|||
(Principal Financial and Accounting Officer)
|
c) |
(Principal Financial and Accounting Officer) Attestation Report of the Independent Registered Public Accounting Firm
|
d) |
Changes in Internal Control Over Financial Reporting
|
Amended and Restated Certificate of Incorporation of Bank7 Corp.(1)
|
||
Amended and Restated Bylaws of Bank7 Corp.(2)
|
||
Specimen Common Stock Certificate of Bank7 Corp.(3)
|
||
Description of Common Stock Securities Registered Pursuant to Section 12 of the Exchange Act of 1934(4)
|
||
Form of Indenture for Senior Debt Securities(5)
|
||
Form of Indenture for Subordinated Debt Securities(6)
|
||
Form of Tax Sharing Agreement(7)
|
||
Bank7 Corp. 2018 Equity Incentive Plan(8)
|
||
First Amendment to Bank7 Corp. 2018 Equity Incentive Plan(9)
|
||
Form of Stock Option award Agreement under the Bank7 Corp. 2018 Equity Incentive Plan(10)
|
||
Form of Restricted Stock Unit Award Agreement under the Bank7 Corp. 2018 Equity Incentive Plan(11)
|
||
Form of Indemnification Agreement(12)
|
||
Form of Registration Rights Agreement(13)
|
||
Stock Award Agreement Between the Company and Thomas L. Travis issued under the 2018 Equity Incentive Plan (14)
|
||
Stock Award Agreement Between the Company and Jason E. Estes issued under the 2018 Equity Incentive Plan
|
||
Share Acquisition Agreement dated as of October 6, 2021 by and among Bank7 Corp., Watonga Bancshares, Inc., Cornerstone Bank, and Randy
Barrett solely in his capacity as representative (15)
|
||
Employment Agreement dated March 30, 2022 between the Company and Thomas L. Travis (16)
|
||
Employment Agreement dated March 30, 2022 between the Company and Jason E. Estes
|
||
Subsidiaries of Bank7 Corp.
|
||
Consent of Independent Registered Public Accounting Firm
|
||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Chief Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2018 and 2017, (ii)
the Consolidated Statements of Income for the years ended December 31, 2018 and 2017, (iii) the Consolidated Statements of Retained Earnings for the years ended December 31, 2018 and 2017, (iv) the Consolidated Statements of Cash Flows for
the years ended December 31, 2018 and 2017, and (v) the notes to the Consolidated Financial Statements
|
(1) |
Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on the Securities and Exchange Commission on May 24,
2021.
|
(2) |
Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on
August 24, 2018 (File No. 333-227010).
|
(3) |
Incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission
on September 10, 2018 (File No. 333-227010).
|
(4) |
Incorporated by reference to Exhibit 4.2 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the
Securities and Exchange Commission on March 30, 2020.
|
(5) |
Incorporated by reference to Exhibit 4.3 to the Registration Statement on Form S-3 filed with the Securities and Exchange Commission on
November 16, 2020.
|
(6) |
Incorporated by reference to Exhibit 4.4 to the Registration Statement on Form S-3 filed with the Securities and Exchange Commission on
November 16, 2020.
|
(7) |
Incorporated by reference to Exhibit 10.1 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on
August 24, 2018 (File No. 333-227010).
|
(8) |
Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission
on September 10, 2018 (File No. 333-227010).
|
(9) |
Incorporated by reference to Appendix A of the Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on
March 31, 2020.
|
(10) |
Incorporated by reference to Exhibit 10.3 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission
on September 10, 2018 (File No. 333-227010).
|
(11) |
Incorporated by reference to Exhibit 10.4 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission
on September 10, 2018 (File No. 333-227010).
|
(12) |
Incorporated by reference to Exhibit 10.5 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission
on September 10, 2018 (File No. 333-227010).
|
(13) |
Incorporated by reference to Exhibit 10.4 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on
August 24, 2018 (File No. 333-227010).
|
(14) |
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on
September 5, 2019.
|
(15) |
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on October
7, 2021.
|
(16) |
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on April
5, 2022.
|
Bank7 Corp.
|
|||
Date: March 24, 2023
|
By:
|
/s/ Thomas L. Travis
|
|
Thomas L. Travis
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|||
By:
|
/s/ Kelly J. Harris
|
||
Kelly J. Harris
|
|||
Executive Vice President and Chief Financial Officer
|
|||
(Principal Financial and Accounting Officer)
|
|
Signatures
|
|
|
Title
|
Date
|
|||
/s/ William B. Haines
|
Director; Chairman
|
March 24, 2023
|
||||||
William B. Haines
|
||||||||
/s/ Thomas L. Travis
|
Director; President and Chief Executive Officer (Principal Executive Officer)
|
March 24, 2023
|
||||||
Thomas L. Travis
|
||||||||
/s/ William M. Buergler |
Director
|
March 24, 2023
|
||||||
William M. Buergler | ||||||||
/s/ John T. Phillips
|
Director
|
March 24, 2023
|
||||||
John T. Phillips | ||||||||
/s/ Gary D. Whitcomb
|
Director
|
March 24, 2023
|
||||||
Gary D. Whitcomb | ||||||||
/s/ J. Michael Sanner
|
Director
|
March 24, 2023
|
||||||
J. Michael Sanner | ||||||||
/s/ Teresa L. Dick
|
Director
|
March 24, 2023
|
||||||
Teresa L. Dick
|
||||||||
/s/ Edward P. Gray
|
Director
|
March 24, 2023
|
||||||
Edward P. Gray |