(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip code) |
(Title of Each Class) | (Trading Symbol) | (Name of Each Exchange on which Registered) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | Emerging growth company | |||||||||||||||||||
☒ | Small reporting company |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | ||||||||
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | ||||||||
(In thousands, except share amounts) | March 31, 2024 | December 31, 2023 | ||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Interest-earning deposits in other banks | ||||||||||||||
Total cash and cash equivalents | ||||||||||||||
Available-for-sale debt securities, at fair value, net of allowance for credit losses of $0, with an amortized cost of $643,525 at March 31, 2024 and $669,646 at December 31, 2023 | ||||||||||||||
Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $894 at March 31, 2024 and $1,051 at December 31, 2023 | ||||||||||||||
Equity securities, at fair value | ||||||||||||||
Loans, less allowance for credit losses of $14,658 at March 31, 2024 and $14,653 at December 31, 2023 | ||||||||||||||
Bank premises and equipment, net | ||||||||||||||
Bank-owned life insurance | ||||||||||||||
Federal Home Loan Bank stock | ||||||||||||||
Goodwill | ||||||||||||||
Accrued interest receivable and other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Deposits: | ||||||||||||||
Non-interest bearing | $ | $ | ||||||||||||
Interest bearing | ||||||||||||||
Total deposits | ||||||||||||||
Short-term borrowings | ||||||||||||||
Senior debt and subordinated debentures, less debt issuance costs of $375 at March 31, 2024 and $411 at December 31, 2023 | ||||||||||||||
Accrued interest payable and other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding | ||||||||||||||
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 11,831,994 at March 31, 2024 and 11,818,039 at December 31, 2023 | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss, net of tax | ( | ( | ||||||||||||
Total shareholders’ equity | ||||||||||||||
Total liabilities and shareholders’ equity | $ | $ |
For the Three Months Ended March 31, | ||||||||||||||
(In thousands, except share and per-share amounts) | 2024 | 2023 | ||||||||||||
INTEREST INCOME: | ||||||||||||||
Interest and fees on loans | $ | $ | ||||||||||||
Interest on deposits in other banks | ||||||||||||||
Interest and dividends on investment securities: | ||||||||||||||
Taxable | ||||||||||||||
Exempt from Federal income taxes | ||||||||||||||
Total interest income | ||||||||||||||
INTEREST EXPENSE: | ||||||||||||||
Interest on deposits | ||||||||||||||
Interest on short-term borrowings | ||||||||||||||
Interest on senior debt and subordinated debentures | ||||||||||||||
Total interest expense | ||||||||||||||
Net interest income before provision for credit losses | ||||||||||||||
PROVISION FOR CREDIT LOSSES | ||||||||||||||
Net interest income after provision for credit losses | ||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||
Service charges | ||||||||||||||
Net realized losses on sales and calls of investment securities | ( | ( | ||||||||||||
Other income | ||||||||||||||
Total non-interest income | ||||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||
Salaries and employee benefits | ||||||||||||||
Occupancy and equipment | ||||||||||||||
Other | ||||||||||||||
Total non-interest expenses | ||||||||||||||
Income before provision for income taxes | ||||||||||||||
Provision for income taxes | ||||||||||||||
Net income | $ | $ | ||||||||||||
Earnings per common share: | ||||||||||||||
Basic earnings per share | $ | $ | ||||||||||||
Weighted average common shares used in basic computation | ||||||||||||||
Diluted earnings per share | $ | $ | ||||||||||||
Weighted average common shares used in diluted computation | ||||||||||||||
Cash dividend per common share | $ | $ |
For the Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2024 | 2023 | ||||||||||||
Net income | $ | $ | ||||||||||||
Other comprehensive income: | ||||||||||||||
Unrealized gains on securities: | ||||||||||||||
Unrealized holding gains arising during the period | ||||||||||||||
Reclassification of net losses included in net income | ||||||||||||||
Amortization of net unrealized losses transferred | ||||||||||||||
Other comprehensive income, before tax | ||||||||||||||
Tax effect | ( | ( | ||||||||||||
Total other comprehensive income | ||||||||||||||
Comprehensive income | $ | $ |
Accumulated Other Comprehensive Loss (Net of Taxes) | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
Common Stock | Retained Earnings | |||||||||||||||||||||||||||||||
(In thousands, except share amounts) | Shares | Amount | ||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Implementation of ASU 2016-13, Current Expected Credit Loss (CECL) Day 1 Adjustment | ( | ( | ||||||||||||||||||||||||||||||
Adjusted Balance, January 1, 2023 | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||
Stock issued under employee stock purchase plan | — | — | ||||||||||||||||||||||||||||||
Stock awarded to employees | — | — | ||||||||||||||||||||||||||||||
Restricted stock granted net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | |||||||||||||||||||||||||||||
Cash dividend | — | — | ( | — | ( | |||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||
Stock issued under employee stock purchase plan | — | — | ||||||||||||||||||||||||||||||
Restricted stock granted net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||
Stock awarded to employees | — | — | — | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | |||||||||||||||||||||||||||||
Cash dividend | — | — | ( | — | ( | |||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | $ | $ | ( | $ |
For the Three Month Ended March 31, | ||||||||||||||
(In thousands) | 2024 | 2023 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Net increase in deferred loan fees | ( | ( | ||||||||||||
Depreciation | ||||||||||||||
Accretion | ( | ( | ||||||||||||
Amortization | ||||||||||||||
Stock-based compensation | ||||||||||||||
Provision for credit losses | ||||||||||||||
Net realized losses on sales and calls of available-for-sale investment securities | ||||||||||||||
Net change in equity securities | ( | |||||||||||||
Increase in bank-owned life insurance, net of expenses | ( | ( | ||||||||||||
Net decrease in accrued interest receivable and other assets | ( | ( | ||||||||||||
Net increase in accrued interest payable and other liabilities | ||||||||||||||
Provision for deferred income taxes | ||||||||||||||
Net cash provided by operating activities | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
Proceeds from sales or calls of available-for-sale investment securities | ||||||||||||||
Proceeds from maturity and principal repayments of available-for-sale investment securities | ||||||||||||||
Proceeds from maturity and principal repayments of held-to-maturity investment securities | ||||||||||||||
Net decrease (increase) in loans | ( | |||||||||||||
Purchases of premises and equipment | ( | ( | ||||||||||||
Net cash provided by (used in) investing activities | ( | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
Net decrease in demand, interest bearing and savings deposits | ( | ( | ||||||||||||
Net increase in time deposits | ||||||||||||||
Proceeds from short-term borrowings from Federal Home Loan Bank | ||||||||||||||
Repayments of short-term borrowings to Federal Home Loan Bank | ( | ( | ||||||||||||
Proceeds from stock issued under employee stock purchase plan | ||||||||||||||
Cash dividend payments on common stock | ( | ( | ||||||||||||
Net cash (used in) provided by financing activities | ( | |||||||||||||
Increase in cash and cash equivalents | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | $ |
For the Three Month Ended March 31, | ||||||||||||||
(In thousands) | 2024 | 2023 | ||||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest | $ | $ | ||||||||||||
Income taxes | $ | $ | ||||||||||||
Operating cash flows from operating leases | $ | $ | ||||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Unrealized gain on securities available for sale | $ | $ | ||||||||||||
March 31, 2024 | ||||||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Allowance for Credit Losses | |||||||||||||||
Debt securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | ( | $ | $ | ||||||||||||||
U.S. Government agencies | ( | |||||||||||||||||||
Obligations of states and political subdivisions | ( | |||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ( | |||||||||||||||||||
Private label mortgage and asset backed securities | ( | |||||||||||||||||||
Total available-for-sale | $ | $ | $ | ( | $ | $ | ||||||||||||||
March 31, 2024 | ||||||||||||||||||||
Held-to-Maturity Securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Allowance for Credit Losses | |||||||||||||||
Debt securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | $ | $ | ( | $ | $ | ||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ( | |||||||||||||||||||
Private label mortgage and asset backed securities | ( | |||||||||||||||||||
Corporate debt securities | ( | |||||||||||||||||||
Total held-to-maturity | $ | $ | $ | ( | $ | $ | ||||||||||||||
December 31, 2023 | ||||||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Estimated Fair Value | |||||||||||||||
Debt securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | ( | $ | $ | ||||||||||||||
U.S. Government agencies | ( | |||||||||||||||||||
Obligations of states and political subdivisions | ( | |||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ( | |||||||||||||||||||
Private label mortgage and asset backed securities | ( | |||||||||||||||||||
Total available-for-sale | $ | $ | $ | ( | $ | $ |
December 31, 2023 | ||||||||||||||||||||
Held-to-Maturity Securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Allowance for Credit Losses | |||||||||||||||
Debt securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | ( | $ | $ | |||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ( | |||||||||||||||||||
Private label mortgage and asset backed securities | ( | |||||||||||||||||||
Corporate debt securities | ( | |||||||||||||||||||
Total held-to-maturity | $ | $ | $ | ( | $ | $ | ||||||||||||||
For the Three Month Ended March 31, | ||||||||||||||
Available-for-Sale Securities | 2024 | 2023 | ||||||||||||
Proceeds from sales or calls | $ | $ | ||||||||||||
Gross realized gains from sales or calls | ||||||||||||||
Gross realized losses from sales or calls | ( | ( |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||
Within one year | $ | $ | $ | $ | ||||||||||||||||||||||
After one year through five years | ||||||||||||||||||||||||||
After five years through ten years | ||||||||||||||||||||||||||
After ten years | ||||||||||||||||||||||||||
Investment securities not due at a single maturity date: | ||||||||||||||||||||||||||
U.S. Government agencies | ||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ||||||||||||||||||||||||||
Private label mortgage and asset backed securities | ||||||||||||||||||||||||||
Total available-for-sale | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Held-to-Maturity Securities | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||
Within one year | $ | $ | $ | $ | ||||||||||||||||||||||
After one year through five years | ||||||||||||||||||||||||||
After five years through ten years | ||||||||||||||||||||||||||
After ten years | ||||||||||||||||||||||||||
Investment securities not due at a single maturity date: | ||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ||||||||||||||||||||||||||
Private label mortgage and asset backed securities | ||||||||||||||||||||||||||
Corporate debt securities | ||||||||||||||||||||||||||
Total held-to-maturity | $ | $ | $ | $ | ||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
U.S. Government agencies | ( | ( | ||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | ( | ( | ||||||||||||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Private label mortgage and asset backed securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total available-for-sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
U.S. Government agencies | ( | ( | ||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | ( | ( | ||||||||||||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Private label mortgage and asset backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Total available-for-sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||
Debt Securities Held-to-Maturity | 2024 | 2023 | |||||||||
Beginning ACL balance | $ | 1,051 | $ | — | |||||||
Impact of adoption of ASU 2016-13 | — | 776 | |||||||||
Credit to credit losses | (157) | (92) | |||||||||
Total Ending ACL balance | $ | 894 | $ | 684 |
March 31, 2024 | ||||||||||||||
Debt Securities Held-to-Maturity (in thousands) | AAA/AA/A | BBB | Unrated | |||||||||||
Obligations of states and political subdivisions | $ | $ | $ | |||||||||||
Private label mortgage and asset backed securities | ||||||||||||||
Corporate debt securities | ||||||||||||||
Total debt securities held-to-maturity | $ | $ | $ |
Loan Type (Dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial | $ | $ | ||||||||||||
Agricultural production | ||||||||||||||
Total commercial | ||||||||||||||
Real estate: | ||||||||||||||
Construction & other land loans | ||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||
Commercial real estate - non-owner occupied | ||||||||||||||
Farmland | ||||||||||||||
Multi-family residential | ||||||||||||||
1-4 family - close-ended | ||||||||||||||
1-4 family - revolving | ||||||||||||||
Total real estate | ||||||||||||||
Consumer | ||||||||||||||
Total gross loans | ||||||||||||||
Net deferred origination costs | ||||||||||||||
Loans, net of deferred origination costs | ||||||||||||||
Allowance for credit losses | ( | ( | ||||||||||||
Total loans, net | $ | $ |
Commercial | Commercial Real Estate | 1-4 Family Real Estate | Consumer | Total | ||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2024 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Provision (credit) for credit losses (1) | ( | |||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | |||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||
Ending balance, March 31, 2024 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Commercial | Commercial Real Estate | 1-4 Family Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2023 prior to adoption of ASU 2016-13 (CECL) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Impact of adoption of ASU 2016-13 | ( | |||||||||||||||||||||||||||||||||||||
(Credit) provision for credit losses (1) | ( | |||||||||||||||||||||||||||||||||||||
Charge-offs | ( | 0 | ( | ( | ||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||
Ending balance, March 31, 2023 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year As of March 31, 2024 | |||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans | Revolving Converted to Term | Total | |||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Agricultural production | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Construction & other land loans | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate - non-owner occupied | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Multi-family residential | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
1-4 family - close-ended | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
1-4 family - revolving |
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total loans outstanding (risk rating): | |||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Grand Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current period total gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year As of December 31, 2023 | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Revolving Converted to Term | Total | |||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Pass/Watch | $ | 19,886 | $ | 17,129 | $ | 21,050 | $ | 4,643 | $ | 1,561 | $ | 6,980 | $ | 29,391 | $ | 215 | $ | 100,855 | |||||||||||
Special mention | — | 277 | 139 | 183 | 107 | 272 | 3,750 | — | 4,728 | ||||||||||||||||||||
Substandard | — | — | — | 156 | — | 66 | — | — | 222 | ||||||||||||||||||||
Total | $ | 19,886 | $ | 17,406 | $ | 21,189 | $ | 4,982 | $ | 1,668 | $ | 7,318 | $ | 33,141 | $ | 215 | $ | 105,805 | |||||||||||
Current period gross write-offs | $ | 241 | $ | — | $ | 323 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 564 | |||||||||||
Agricultural production | |||||||||||||||||||||||||||||
Pass/Watch | $ | 153 | $ | 830 | $ | 14 | $ | — | $ | 251 | $ | 112 | $ | 30,241 | $ | 999 | $ | 32,600 | |||||||||||
Special mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Substandard | — | 676 | — | — | — | — | 300 | — | 976 | ||||||||||||||||||||
Total | $ | 153 | $ | 1,506 | $ | 14 | $ | — | $ | 251 | $ | 112 | $ | 30,541 | $ | 999 | $ | 33,576 | |||||||||||
Current period gross write-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Construction & other land loans | |||||||||||||||||||||||||||||
Pass/Watch | $ | 6,953 | $ | 15,593 | $ | 1,305 | $ | 701 | $ | 1,538 | $ | 3,039 | $ | 4,167 | $ | — | $ | 33,296 | |||||||||||
Special mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | — |
Total | $ | 6,953 | $ | 15,593 | $ | 1,305 | $ | 701 | $ | 1,538 | $ | 3,039 | $ | 4,167 | $ | — | $ | 33,296 | |||||||||||
Current period gross write-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||||||||
Pass/Watch | $ | 20,648 | $ | 25,132 | $ | 20,783 | $ | 39,356 | $ | 21,831 | $ | 80,384 | $ | 3,207 | $ | — | $ | 211,341 | |||||||||||
Special mention | — | — | — | — | — | 3,026 | 272 | — | 3,298 | ||||||||||||||||||||
Substandard | — | — | — | — | — | 497 | — | — | 497 | ||||||||||||||||||||
Total | $ | 20,648 | $ | 25,132 | $ | 20,783 | $ | 39,356 | $ | 21,831 | $ | 83,907 | $ | 3,479 | $ | — | $ | 215,136 | |||||||||||
Current period gross write-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Commercial real estate - non-owner occupied | |||||||||||||||||||||||||||||
Pass/Watch | $ | 81,153 | $ | 115,031 | $ | 77,375 | $ | 38,307 | $ | 12,181 | $ | 175,419 | $ | 19,218 | $ | 3,216 | $ | 521,900 | |||||||||||
Special mention | — | 600 | — | — | — | 374 | — | — | 974 | ||||||||||||||||||||
Substandard | — | — | — | — | 13,625 | 2,344 | — | — | 15,969 | ||||||||||||||||||||
Total | $ | 81,153 | $ | 115,631 | $ | 77,375 | $ | 38,307 | $ | 25,806 | $ | 178,137 | $ | 19,218 | $ | 3,216 | $ | 538,843 | |||||||||||
Current period gross write-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Farmland | |||||||||||||||||||||||||||||
Pass/Watch | $ | 8,382 | $ | 24,063 | $ | 10,873 | $ | 29,770 | $ | 11,155 | $ | 23,324 | $ | 8,695 | $ | 1,955 | $ | 118,217 | |||||||||||
Special mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Substandard | — | — | — | 2,213 | — | 200 | — | — | 2,413 | ||||||||||||||||||||
Total | $ | 8,382 | $ | 24,063 | $ | 10,873 | $ | 31,983 | $ | 11,155 | $ | 23,524 | $ | 8,695 | $ | 1,955 | $ | 120,630 | |||||||||||
Current period gross write-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Multi-family residential | |||||||||||||||||||||||||||||
Pass/Watch | $ | 2,988 | $ | 1,847 | $ | 38,644 | $ | 2,364 | $ | 4,538 | $ | 10,417 | $ | 532 | $ | — | $ | 61,330 | |||||||||||
Special mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 2,988 | $ | 1,847 | $ | 38,644 | $ | 2,364 | $ | 4,538 | $ | 10,417 | $ | 532 | $ | — | $ | 61,330 | |||||||||||
Current period gross write-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
1-4 family - close-ended | |||||||||||||||||||||||||||||
Pass/Watch | $ | 1,689 | $ | 64,056 | $ | 7,898 | $ | 2,259 | $ | 1,703 | $ | 18,237 | $ | — | $ | 809 | $ | 96,651 | |||||||||||
Special mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 1,689 | $ | 64,056 | $ | 7,898 | $ | 2,259 | $ | 1,703 | $ | 18,237 | $ | — | $ | 809 | $ | 96,651 | |||||||||||
Current period gross write-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
1-4 family - revolving | |||||||||||||||||||||||||||||
Pass/Watch | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 21,662 | $ | 6,213 | $ | 27,875 | |||||||||||
Special mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 21,662 | $ | 6,213 | $ | 27,875 | |||||||||||
Current period gross write-offs | $ | 75 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 75 |
Consumer | |||||||||||||||||||||||||||||
Pass/Watch | $ | 34,866 | $ | 8,745 | $ | 6,503 | $ | 2,265 | $ | 2,007 | $ | 2,398 | $ | 643 | $ | 4 | $ | 57,431 | |||||||||||
Special mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Substandard | 182 | — | 42 | — | — | — | — | — | 224 | ||||||||||||||||||||
Total | $ | 35,048 | $ | 8,745 | $ | 6,545 | $ | 2,265 | $ | 2,007 | $ | 2,398 | $ | 643 | $ | 4 | $ | 57,655 | |||||||||||
Current period gross write-offs | $ | 23 | $ | — | $ | — | $ | — | $ | 27 | $ | — | $ | — | $ | — | $ | 50 | |||||||||||
Total loans outstanding (risk rating): | |||||||||||||||||||||||||||||
Pass/Watch | $ | 176,718 | $ | 272,426 | $ | 184,445 | $ | 119,665 | $ | 56,765 | $ | 320,310 | $ | 117,756 | $ | 13,411 | $ | 1,261,496 | |||||||||||
Special mention | — | 877 | 139 | 183 | 107 | 3,672 | 4,022 | — | 9,000 | ||||||||||||||||||||
Substandard | 182 | 676 | 42 | 2,369 | 13,625 | 3,107 | 300 | — | 20,301 | ||||||||||||||||||||
Grand Total | $ | 176,900 | $ | 273,979 | $ | 184,626 | $ | 122,217 | $ | 70,497 | $ | 327,089 | $ | 122,078 | $ | 13,411 | $ | 1,290,797 | |||||||||||
Current period total gross write-offs | $ | 339 | $ | — | $ | 323 | $ | — | $ | 27 | $ | — | $ | — | $ | — | $ | 689 |
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 89 Days Past Due | Total Past Due | Current | Total Loans | Loans Past Due > 89 Days, Still Accruing | Non-accrual | |||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Agricultural production | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Construction & other land loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | ||||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family - close-ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family - revolving | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred fees | — | — | — | — | $ | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 89 Days Past Due | Total Past Due | Current | Total Loans | Loans Past Due > 89 Days, Still Accruing | Non- accrual | |||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Agricultural production | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Construction & other land loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | ||||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family - close-ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family - revolving | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred fees | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||
NOW accounts | $ | 234,199 | $ | 251,334 | ||||||||||
MMA accounts | 537,248 | 497,043 | ||||||||||||
Savings deposits | 174,519 | 179,609 | ||||||||||||
Time deposits | 174,107 | 162,085 | ||||||||||||
Total interest-bearing | 1,120,073 | 1,090,071 | ||||||||||||
Non-interest bearing | 911,176 | 951,541 | ||||||||||||
Total deposits | $ | 2,031,249 | $ | 2,041,612 |
Years Ending December 31, | ||||||||
2024 | $ | 151,582 | ||||||
2025 | 9,416 | |||||||
2026 | 2,552 | |||||||
2027 | 6,076 | |||||||
2028 | 4,146 | |||||||
Thereafter | 335 | |||||||
$ | 174,107 |
For the Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Savings | $ | 121 | $ | 80 | ||||||||||
Money market | 2,843 | 837 | ||||||||||||
NOW accounts | 1,920 | 75 | ||||||||||||
Time certificates of deposit | 134 | 12 | ||||||||||||
$ | 5,018 | $ | 1,004 |
Credit Lines (In thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Unsecured Credit Lines | ||||||||||||||
Credit limit | $ | $ | ||||||||||||
Balance outstanding | $ | $ | ||||||||||||
Federal Home Loan Bank | ||||||||||||||
Credit limit | $ | $ | ||||||||||||
Balance outstanding | $ | $ | ||||||||||||
Collateral pledged | $ | $ | ||||||||||||
Fair value of collateral | $ | $ | ||||||||||||
Federal Reserve Bank Term Loan Funding Program | ||||||||||||||
Credit limit | $ | $ | ||||||||||||
Balance outstanding | $ | $ | ||||||||||||
Collateral pledged | $ | $ | ||||||||||||
Fair value of collateral | $ | $ | ||||||||||||
Federal Reserve Bank | ||||||||||||||
Credit limit | $ | $ | ||||||||||||
Balance outstanding | $ | $ | ||||||||||||
Collateral pledged | $ | $ | ||||||||||||
Fair value of collateral | $ | $ |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Fixed - floating rate subordinated debentures, due 2031 | $ | $ | ||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||
Floating rate senior debt bank loan, due 2032 | ||||||||||||||
Junior subordinated deferrable interest debentures, due October 2036 | ||||||||||||||
Total subordinated debentures | $ | $ |
For the Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Interchange Fees | $ | $ | ||||||||||||
Appreciation in cash surrender value of bank owned life insurance | ||||||||||||||
Loan placement fees | ||||||||||||||
Federal Home Loan Bank dividends | ||||||||||||||
Other | ||||||||||||||
Total other non-interest income | $ | $ |
For the Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Information technology | $ | $ | ||||||||||||
Data processing expense | ||||||||||||||
Professional Services | ||||||||||||||
Acquisition and merger expenses | 383 | |||||||||||||
Regulatory assessments | ||||||||||||||
ATM/Debit card expenses | ||||||||||||||
Directors’ expenses | ||||||||||||||
Advertising | ||||||||||||||
Personnel other | ||||||||||||||
Loan related expenses | ||||||||||||||
Other | ||||||||||||||
Total other non-interest expense | $ | $ |
Basic Earnings Per Share | For the Three Months Ended March 31, | |||||||||||||
(In thousands, except share and per share amounts) | 2024 | 2023 | ||||||||||||
Net income | $ | $ | ||||||||||||
Weighted average shares outstanding | ||||||||||||||
Basic earnings per share | $ | $ |
Diluted Earnings Per Share | For the Three Months Ended March 31, | |||||||||||||
(In thousands, except share and per share amounts) | 2024 | 2023 | ||||||||||||
Net income | $ | $ | ||||||||||||
Weighted average shares outstanding | ||||||||||||||
Effect of diluted stock options and restricted stock | ||||||||||||||
Weighted average shares of common stock and common stock equivalents | ||||||||||||||
Diluted earnings per share | $ | $ |
Shares | Weighted Average Grant-Date Fair Value | |||||||||||||
Nonvested outstanding shares at December 31, 2023 | $ | |||||||||||||
Granted | 9,575 | $ | 19.78 | |||||||||||
Vested | (2,271) | $ | 23.45 | |||||||||||
Forfeited | — | $ | — | |||||||||||
Nonvested outstanding shares at March 31, 2024 | $ | 15.92 |
March 31, 2024 | ||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Interest-earning deposits in other banks | ||||||||||||||||||||||||||||||||
Held-to-maturity investment securities | ||||||||||||||||||||||||||||||||
Loans, net | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||||||
Senior debt and subordinated debentures | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Interest-earning deposits in other banks | ||||||||||||||||||||||||||||||||
Held-to-maturity investment securities | ||||||||||||||||||||||||||||||||
Loans, net | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||||||
Subordinated debentures | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||
March 31, 2024 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | ||||||||||||||||||||||
U.S. Government agencies | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | ||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ||||||||||||||||||||||||||
Private label mortgage and asset backed securities | ||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | $ | $ | $ |
Fair Value Measurements Using | ||||||||||||||||||||||||||
December 31, 2023 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | ||||||||||||||||||||||
U.S. Government agencies | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | ||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | ||||||||||||||||||||||||||
Private label mortgage and asset backed securities | ||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | $ | $ | $ |
For the Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(In thousands, except share and per-share amounts) | 2024 | 2023 | 2023 | |||||||||||||||||
Net interest income before provision (credit) for credit losses | $ | 19,073 | $ | 20,115 | $ | 21,581 | ||||||||||||||
Provision (credit) for credit losses | 575 | (168) | 633 | |||||||||||||||||
Net interest income after provision (credit) for credit losses | 18,498 | 20,283 | 20,948 | |||||||||||||||||
Total non-interest income | 1,636 | 2,267 | 1,575 | |||||||||||||||||
Total non-interest expenses | 15,333 | 14,854 | 13,205 | |||||||||||||||||
Income before provision for income taxes | 4,801 | 7,696 | 9,318 | |||||||||||||||||
Provision for income taxes | 1,125 | 1,803 | 2,348 | |||||||||||||||||
Net income | $ | 3,676 | $ | 5,893 | $ | 6,970 |
For the Three Months Ended March 31, 2024 | For the Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income/ Expense | Average Interest Rate | Average Balance | Interest Income/ Expense | Average Interest Rate | ||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||
Interest-earning deposits in other banks | $ | 34,200 | $ | 432 | 5.05 | % | $ | 6,882 | $ | 75 | 4.36 | % | ||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||||||||
Taxable securities | 714,160 | 5,500 | 3.08 | % | 783,938 | 5,886 | 3.00 | % | ||||||||||||||||||||||||||||||
Non-taxable securities (1) | 254,108 | 1,768 | 2.78 | % | 257,452 | 1,777 | 2.76 | % | ||||||||||||||||||||||||||||||
Total investment securities | 968,268 | 7,268 | 3.00 | % | 1,041,390 | 7,663 | 2.94 | % | ||||||||||||||||||||||||||||||
Total securities and interest-earning deposits | 1,002,468 | 7,700 | 3.07 | % | 1,048,272 | 7,738 | 2.95 | % | ||||||||||||||||||||||||||||||
Loans (2) (3) | 1,283,068 | 18,299 | 5.74 | % | 1,260,178 | 16,777 | 5.40 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets | 2,285,536 | $ | 25,999 | 4.58 | % | 2,308,450 | $ | 24,515 | 4.31 | % | ||||||||||||||||||||||||||||
Allowance for credit losses | (14,348) | (10,893) | ||||||||||||||||||||||||||||||||||||
Non-accrual loans | — | — | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 26,772 | 27,574 | ||||||||||||||||||||||||||||||||||||
Bank premises and equipment | 14,177 | 8,072 | ||||||||||||||||||||||||||||||||||||
Other assets | 108,673 | 86,303 | ||||||||||||||||||||||||||||||||||||
Total average assets | $ | 2,420,810 | $ | 2,419,506 | ||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Savings and NOW accounts | $ | 421,412 | $ | 255 | 0.24 | % | $ | 526,232 | $ | 92 | 0.07 | % | ||||||||||||||||||||||||||
Money market accounts | 514,909 | 2,843 | 2.22 | % | 468,166 | 837 | 0.73 | % | ||||||||||||||||||||||||||||||
Time certificates of deposit | 187,775 | 1,920 | 4.11 | % | 68,650 | 75 | 0.44 | % | ||||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,124,096 | 5,018 | 1.80 | % | 1,063,048 | 1,004 | 0.38 | % | ||||||||||||||||||||||||||||||
Other borrowed funds | 122,419 | 1,536 | 5.02 | % | 124,480 | 1,558 | 5.01 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,246,515 | $ | 6,554 | 2.11 | % | 1,187,528 | $ | 2,562 | 0.87 | % | ||||||||||||||||||||||||||||
Non-interest bearing demand deposits | 931,045 | 1,018,210 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 35,583 | 31,591 | ||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 207,667 | 182,177 | ||||||||||||||||||||||||||||||||||||
Total average liabilities and shareholders’ equity | $ | 2,420,810 | $ | 2,419,506 | ||||||||||||||||||||||||||||||||||
Interest income and rate earned on average earning assets | $ | 25,999 | 4.58 | % | $ | 24,515 | 4.31 | % | ||||||||||||||||||||||||||||||
Interest expense and interest cost related to average interest-bearing liabilities | 6,554 | 2.11 | % | 2,562 | 0.87 | % | ||||||||||||||||||||||||||||||||
Net interest income and net interest margin (4) | $ | 19,445 | 3.42 | % | $ | 21,953 | 3.86 | % |
Changes in Volume/Rate | For the Three Months Ended March 31, 2024 and 2023 | |||||||||||||||||||
(In thousands) | Volume | Rate | Net | |||||||||||||||||
Increase (decrease) due to changes in: | ||||||||||||||||||||
Interest income: | ||||||||||||||||||||
Interest-earning deposits in other banks | $ | 297 | $ | 58 | $ | 355 | ||||||||||||||
Investment securities: | ||||||||||||||||||||
Taxable | (523) | 137 | (386) | |||||||||||||||||
Non-taxable (1) | (23) | 14 | (9) | |||||||||||||||||
Total investment securities | (546) | 151 | (395) | |||||||||||||||||
Loans | 304 | 1,218 | 1,522 | |||||||||||||||||
Total earning assets (1) | 55 | 1,427 | 1,482 | |||||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Savings, NOW and MMA | 65 | 2,076 | 2,141 | |||||||||||||||||
Time certificate of deposits | 130 | 1,715 | 1,845 | |||||||||||||||||
Total interest-bearing deposits | 195 | 3,791 | 3,986 | |||||||||||||||||
Other borrowed funds | (25) | 4 | (21) | |||||||||||||||||
Total interest-bearing liabilities | 170 | 3,795 | 3,965 | |||||||||||||||||
Net interest income (1) | $ | (115) | $ | (2,368) | $ | (2,483) |
For the Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Balance, beginning of period | $ | 14,653 | $ | 10,848 | ||||||||||
Impact of ASU 2016-13 adoption | — | 3,910 | ||||||||||||
Provision for credit losses | 530 | 518 | ||||||||||||
Losses charged to allowance | (575) | (354) | ||||||||||||
Recoveries | 50 | 335 | ||||||||||||
Balance, end of period | $ | 14,658 | $ | 15,257 | ||||||||||
Allowance for credit losses to total loans at end of period | 1.14 | % | 1.19 | % |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | $ Change | % Change | ||||||||||||||||||||||
Interchange fees | $ | 405 | $ | 446 | $ | (41) | (9.2) | % | ||||||||||||||||||
Service charges | 384 | 387 | (3) | (0.8) | % | |||||||||||||||||||||
Appreciation in cash surrender value of bank owned life insurance | 275 | 249 | 26 | 10.4 | % | |||||||||||||||||||||
Loan placement fees | 166 | 124 | 42 | 33.9 | % | |||||||||||||||||||||
Federal Home Loan Bank dividends | 157 | 109 | 48 | 44.0 | % | |||||||||||||||||||||
Net realized loss on sales and calls of investment securities | (373) | (219) | (154) | 70.3 | % | |||||||||||||||||||||
Other | 622 | 479 | 143 | 29.9 | % | |||||||||||||||||||||
Total other non-interest income | $ | 1,636 | $ | 1,575 | $ | 61 | 3.9 | % |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | $ Change | % Change | ||||||||||||||||||||||
Salaries and employee benefits | $ | 8,638 | $ | 8,034 | 604 | 7.5 | % | |||||||||||||||||||
Occupancy and equipment | 1,543 | 1,258 | 285 | 22.7 | % | |||||||||||||||||||||
Information technology | 1,021 | 847 | 174 | 20.5 | % | |||||||||||||||||||||
Data processing expense | 685 | 650 | 35 | 5.4 | % | |||||||||||||||||||||
Professional Services | 625 | 353 | 272 | 77.1 | % | |||||||||||||||||||||
Acquisition and integration expenses | 383 | — | 383 | 100.0 | % | |||||||||||||||||||||
Regulatory assessments | 322 | 210 | 112 | 53.3 | % | |||||||||||||||||||||
ATM/Debit card expenses | 214 | 184 | 30 | 16.3 | % | |||||||||||||||||||||
Directors’ expenses | 169 | 163 | 6 | 3.7 | % | |||||||||||||||||||||
Advertising | 151 | 125 | 26 | 20.8 | % | |||||||||||||||||||||
Personnel other | 131 | 259 | (128) | (49.4) | % | |||||||||||||||||||||
Loan related expenses | 92 | 147 | (55) | (37.4) | % | |||||||||||||||||||||
Other | 1,359 | 975 | 384 | 39.4 | % | |||||||||||||||||||||
Total non-interest expense | $ | 15,333 | $ | 13,205 | $ | 2,128 | 16.1 | % |
Loan Type (Dollars in thousands) | March 31, 2024 | % of Total Loans | December 31, 2023 | % of Total Loans | ||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 86,918 | 6.8 | % | $ | 105,466 | 8.2 | % | ||||||||||||||||||
Agricultural production | 24,982 | 1.9 | % | 33,556 | 2.6 | % | ||||||||||||||||||||
Total commercial | 111,900 | 8.7 | % | 139,022 | 10.8 | % | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction & other land loans | 28,350 | 2.2 | % | 33,472 | 2.6 | % | ||||||||||||||||||||
Commercial real estate - owner occupied | 209,777 | 16.3 | % | 215,146 | 16.7 | % | ||||||||||||||||||||
Commercial real estate - non-owner occupied | 560,492 | 43.7 | % | 539,522 | 42.0 | % | ||||||||||||||||||||
Farmland | 117,015 | 9.1 | % | 120,674 | 9.3 | % | ||||||||||||||||||||
Multi-family residential | 61,993 | 4.8 | % | 61,307 | 4.7 | % | ||||||||||||||||||||
1-4 family - close-ended | 95,575 | 7.4 | % | 96,558 | 7.5 | % | ||||||||||||||||||||
1-4 family - revolving | 29,442 | 2.3 | % | 27,648 | 2.1 | % | ||||||||||||||||||||
Total real estate | 1,102,644 | 85.8 | % | 1,094,327 | 84.9 | % | ||||||||||||||||||||
Consumer | 69,886 | 5.4 | % | 55,606 | 4.3 | % | ||||||||||||||||||||
Total gross loans | 1,284,430 | 99.9 | % | 1,288,955 | 100.0 | % | ||||||||||||||||||||
Net deferred origination fees | 2,179 | 1,842 | ||||||||||||||||||||||||
Loan, net of deferred origination fees | 1,286,609 | 1,290,797 | ||||||||||||||||||||||||
Allowance for credit losses | (14,658) | (14,653) | ||||||||||||||||||||||||
Total loans | $ | 1,271,951 | $ | 1,276,144 |
Loan Type | March 31, 2024 | December 31, 2023 | ||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial | $ | 682 | $ | 948 | ||||||||||
Agricultural production | 295 | 527 | ||||||||||||
Total commercial | 977 | 1,475 | ||||||||||||
Real estate: | ||||||||||||||
Construction & other land loans | 747 | 848 | ||||||||||||
Commercial real estate - owner occupied | 1,951 | 1,945 | ||||||||||||
Commercial real estate - non-owner occupied | 5,930 | 5,574 | ||||||||||||
Farmland | 1,278 | 1,254 | ||||||||||||
Multi-family residential | 653 | 642 | ||||||||||||
1-4 family - revolving | 1,331 | 1,444 | ||||||||||||
1-4 family - revolving | 589 | 520 | ||||||||||||
Total real estate | 12,479 | 12,227 | ||||||||||||
Consumer | 1,202 | 951 | ||||||||||||
Total allowance for credit losses | $ | 14,658 | $ | 14,653 |
March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | % to Total Loans | Balance | % to Total Loans | Balance | % to Total Loans | ||||||||||||||||||||||||||||||||
Past due loans greater than 30 days | $ | 2,754 | 0.21 | % | $ | 3,742 | 0.29 | % | $ | 25 | — | % | ||||||||||||||||||||||||||
Nonaccrual loans | — | — | % | — | — | % | — | — | % |
(Dollars in thousands) | March 31, 2024 | % of Total Deposits | Average Interest Rate | December 31, 2023 | % of Total Deposits | Average Interest Rate | ||||||||||||||||||||||||||||||||
NOW accounts | $ | 234,199 | 11.5 | % | 0.13 | % | $ | 251,334 | 12.3 | % | 0.13 | % | ||||||||||||||||||||||||||
MMA accounts | 537,248 | 26.4 | % | 1.68 | % | 497,043 | 24.4 | % | 1.68 | % | ||||||||||||||||||||||||||||
Time deposits | 174,107 | 8.6 | % | 3.68 | % | 162,085 | 7.9 | % | 3.68 | % | ||||||||||||||||||||||||||||
Savings deposits | 174,519 | 8.6 | % | 0.12 | % | 179,609 | 8.8 | % | 0.12 | % | ||||||||||||||||||||||||||||
Total interest-bearing | 1,120,073 | 55.1 | % | 1.33 | % | 1,090,071 | 53.4 | % | 1.33 | % | ||||||||||||||||||||||||||||
Non-interest bearing | 911,176 | 44.9 | % | 951,541 | 46.6 | % | ||||||||||||||||||||||||||||||||
Total deposits | $ | 2,031,249 | 100.0 | % | $ | 2,041,612 | 100.0 | % |
(Dollars in thousands) | |||||||||||||||||
March 31, 2024 | Amount | Ratio | |||||||||||||||
Tier 1 Leverage Ratio | $ | 225,111 | 9.34 | % | |||||||||||||
Common Equity Tier 1 Ratio (CET 1) | $ | 220,111 | 12.94 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 225,111 | 13.23 | % | |||||||||||||
Total Risk-Based Capital Ratio | $ | 276,329 | 16.24 | % | |||||||||||||
December 31, 2023 | Amount | Ratio | |||||||||||||||
Tier 1 Leverage Ratio | $ | 222,567 | 9.18 | % | |||||||||||||
Common Equity Tier 1 Ratio (CET 1) | $ | 217,567 | 12.78 | % | |||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 222,567 | 13.07 | % | |||||||||||||
Total Risk-Based Capital Ratio | $ | 273,699 | 16.08 | % |
(Dollars in thousands) | Actual Ratio | Minimum regulatory requirement (1) | Minimum requirement for “Well-Capitalized” Institution | |||||||||||||||||||||||||||||||||||
March 31, 2024 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||
Tier 1 Leverage Ratio | $ | 288,112 | 11.95 | % | $ | 96,417 | 4.00 | % | $ | 120,521 | 5.00 | % | ||||||||||||||||||||||||||
Common Equity Tier 1 Ratio (CET 1) | $ | 288,112 | 16.94 | % | $ | 76,545 | 7.00 | % | $ | 110,565 | 6.50 | % | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 288,112 | 16.94 | % | $ | 102,060 | 8.50 | % | $ | 136,081 | 8.00 | % | ||||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 304,705 | 17.91 | % | $ | 136,081 | 10.50 | % | $ | 170,101 | 10.00 | % | ||||||||||||||||||||||||||
December 31, 2023 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||
Tier 1 Leverage Ratio | $ | 285,099 | 11.75 | % | $ | 97,016 | 4.00 | % | $ | 121,271 | 5.00 | % | ||||||||||||||||||||||||||
Common Equity Tier 1 Ratio (CET 1) | $ | 285,099 | 16.76 | % | $ | 76,526 | 7.00 | % | $ | 110,538 | 6.50 | % | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 285,099 | 16.76 | % | $ | 102,035 | 8.50 | % | $ | 136,047 | 8.00 | % | ||||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 301,642 | 17.74 | % | $ | 136,047 | 10.50 | % | $ | 170,058 | 10.00 | % | ||||||||||||||||||||||||||
(1) The minimum regulatory requirement threshold includes the capital conservation buffer of 2.50%. |
Credit Lines (In thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Unsecured Credit Lines | ||||||||||||||
Credit limit | $ | 110,000 | $ | 110,000 | ||||||||||
Balance outstanding | $ | — | $ | — | ||||||||||
Federal Home Loan Bank | ||||||||||||||
Credit limit | $ | 342,668 | $ | 342,483 | ||||||||||
Balance outstanding | $ | 22,000 | $ | 35,000 | ||||||||||
Collateral pledged | $ | 645,760 | $ | 612,702 | ||||||||||
Fair value of collateral | $ | 533,790 | $ | 500,972 | ||||||||||
Federal Reserve Bank Term Loan Funding Program | ||||||||||||||
Credit limit | $ | — | $ | — | ||||||||||
Balance outstanding | $ | 45,000 | $ | — | ||||||||||
Collateral pledged | $ | 47,975 | $ | — | ||||||||||
Fair value of collateral | $ | 43,858 | $ | — | ||||||||||
Federal Reserve Bank | ||||||||||||||
Credit limit | $ | 4,069 | $ | 4,448 | ||||||||||
Balance outstanding | $ | — | $ | — | ||||||||||
Collateral pledged | $ | 4,820 | $ | 4,894 | ||||||||||
Fair value of collateral | $ | 4,230 | $ | 4,374 |
Immediate and Parallel Shift in Interest Rates (in basis points) | Estimated Change in Net Interest Income in Year 1, as percent of Net Interest Income | Estimated Change in Net Interest Income in Year 2, as percent of Net Interest Income | ||||||
up 400 | 2.03 | % | 5.91 | % | ||||
up 300 | 1.67 | % | 4.50 | % | ||||
up 200 | 1.27 | % | 3.03 | % | ||||
up 100 | 1.20 | % | 2.46 | % | ||||
down 100 | (2.94) | % | (5.41) | % | ||||
down 200 | (4.40) | % | (9.70) | % | ||||
down 300 | (4.54) | % | (12.56) | % | ||||
down 400 | (4.63) | % | (15.19) | % |
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | XBRL Instance Document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
101.LAB | XBRL Taxonomy Extension labels Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Link Document | |||||||
Community West Bancshares | |||||
Date: May 14, 2024 | /s/ James J. Kim | ||||
James J. Kim | |||||
President and Chief Executive Officer | |||||
Date: May 14, 2024 | /s/ Shannon Livingston | ||||
Shannon Livingston | |||||
Executive Vice President and Chief Financial Officer |
/s/ James J. Kim | Date: May 14, 2024 | |||||||
James J. Kim, |
/s/ Shannon Livingston | Date: May 14, 2024 | |||||||
Shannon Livingston, |
/s/ James J. Kim | |||||
JAMES J. KIM | |||||
President and Chief Executive Officer |
/s/ Shannon Livingston | |||||
SHANNON LIVINGSTON | |||||
Executive Vice President and Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Unaudited) CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit losses on loans | $ 14,658 | $ 14,653 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued (in shares) | 11,831,994 | 11,818,039 |
Common stock, outstanding (in shares) | 11,831,994 | 11,818,039 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,676 | $ 6,970 |
Unrealized gains on securities: | ||
Unrealized holding gains arising during the period | 2,086 | 6,433 |
Reclassification of net losses included in net income | 373 | 219 |
Other Comprehensive Income (Loss), Amortization Of Net Unrealized Losses Transferred | 586 | 627 |
Other comprehensive income, before tax | 3,045 | 7,279 |
Tax effect | (900) | (2,153) |
Total other comprehensive income | 2,145 | 5,126 |
Comprehensive income | $ 5,821 | $ 12,096 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
Cumulative Effect, Period of Adoption, Adjusted Balance |
Common Stock |
Common Stock
Cumulative Effect, Period of Adoption, Adjustment
|
Common Stock
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Retained Earnings |
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
|
Retained Earnings
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Accumulated Other Comprehensive Income (Loss) (Net of Taxes) |
Accumulated Other Comprehensive Income (Loss) (Net of Taxes)
Cumulative Effect, Period of Adoption, Adjustment
|
Accumulated Other Comprehensive Income (Loss) (Net of Taxes)
Cumulative Effect, Period of Adoption, Adjusted Balance
|
---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2022 | $ 174,660 | $ (3,731) | $ 170,929 | $ 61,487 | $ 0 | $ 61,487 | $ 194,400 | $ (3,731) | $ 190,669 | $ (81,227) | $ 0 | $ (81,227) |
Balance (in shares) at Dec. 31, 2022 | 11,735,291 | 0 | 11,735,291 | |||||||||
Net income | 6,970 | 6,970 | ||||||||||
Other comprehensive income | 5,126 | 5,126 | ||||||||||
Cash dividend | (1,410) | (1,410) | ||||||||||
Stock-based compensation expense | 361 | $ 361 | ||||||||||
Restricted stock granted, net of forfeitures, and related tax benefit (in shares) | 5,157 | |||||||||||
Stock issued under employee stock purchase plan (in shares) | 4,143 | |||||||||||
Stock issued under employee stock purchase plan | 76 | $ 76 | ||||||||||
Balance at Mar. 31, 2023 | 182,052 | $ 61,924 | 196,229 | (76,101) | ||||||||
Balance (in shares) at Mar. 31, 2023 | 11,754,938 | |||||||||||
Stock Issued During Period, Value, Employee Stock Ownership Plan | 0 | $ 0 | ||||||||||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | 10,347 | |||||||||||
Balance at Dec. 31, 2023 | 207,064 | $ 62,550 | 210,548 | (66,034) | ||||||||
Balance (in shares) at Dec. 31, 2023 | 11,818,039 | |||||||||||
Net income | 3,676 | 3,676 | ||||||||||
Other comprehensive income | 2,145 | 2,145 | ||||||||||
Cash dividend | (1,419) | (1,419) | ||||||||||
Stock-based compensation expense | 181 | $ 181 | ||||||||||
Restricted stock granted, net of forfeitures, and related tax benefit (in shares) | 9,275 | |||||||||||
Stock issued under employee stock purchase plan (in shares) | 4,380 | |||||||||||
Stock issued under employee stock purchase plan | 70 | $ 70 | ||||||||||
Balance at Mar. 31, 2024 | $ 211,717 | $ 62,801 | $ 212,805 | $ (63,889) | ||||||||
Balance (in shares) at Mar. 31, 2024 | 11,831,994 | |||||||||||
Stock Issued During Period, Value, Employee Stock Ownership Plan | $ 0 | |||||||||||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | 300 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per common share (in dollars per share) | $ 0.12 | $ 0.12 |
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Description of Business and Basis of Presentation The interim unaudited condensed consolidated financial statements of Community West Bancshares and subsidiary have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). These interim condensed consolidated financial statements include the accounts of Community West Bancshares and its wholly owned subsidiary Community West Bank (the Bank) (collectively, the Company). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been omitted. The Company believes that the disclosures are adequate to make the information presented not misleading. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2023 Annual Report to Shareholders on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position at March 31, 2024, and the results of its operations and its cash flows for the three month interim periods ended March 31, 2024 and 2023 have been included. The results of operations for interim periods are not necessarily indicative of results for the full year. In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 855, “Subsequent Events,” the Company’s management has evaluated subsequent events for potential recognition or disclosure through the date of the issuance of these condensed consolidated financial statements. On April 1, 2024, the Company, formerly named Central Valley Community Bancorp, completed the acquisition of Community West Bancshares. Refer to Note 2 - Business Combinations for further discussion of this transaction. Use of Estimates in the Preparation of Financial Statements The preparation of these interim unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Segment and Significant Group Concentration of Credit Risk Management has determined that since all of the banking products and services offered by the Company are available in each branch of the Bank, all branches are located within the same economic environment, and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate the Bank branches and report them as a single operating segment. No customer accounts for more than 10 percent of revenues for the Company or the Bank. Reclassifications Certain reclassifications have been made to prior year financial statements to conform to the classifications used in 2024. None of the reclassifications had an impact on equity or net income. Recently Issued or Adopted Accounting Pronouncements FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU was issued to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. This ASU is effective for fiscal years beginning after December 15, 2024. The adoption of this accounting guidance is not expected to have a material impact on the Company’s consolidated financial statements but will result in the expansion of the income tax disclosures. FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This ASU was issued to address stakeholder requests for more detailed information about expenses within each reportable segment and address disclosure requirements there within. The amendments retain existing disclosure requirements, and expand upon them for both interim and annual reporting periods. In addition, entities with a single reportable segment must now provide all segment disclosures required, including the new disclosure requirements. This ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The adoption of this accounting guidance is not expected to have a material impact on the Company’s consolidated financial statements but will result in inclusion of certain segment reporting requirements not previously required.
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 — Quoted market prices (unadjusted) for identical instruments traded in active markets that the entity has the ability to access as of the measurement date. Level 2 —Significant other 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. Level 3 — Significant unobservable inputs that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The estimated carrying and fair values of the Company’s financial instruments not carried at fair value are as follows (in thousands):
The methods and assumptions used to estimate fair values are described as follows: (a) Cash and Cash Equivalents — The carrying amounts of cash and due from banks, interest-earning deposits in other banks, and Federal funds sold approximate fair values and are classified as Level 1. (b) Investment securities — The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). (c) Loans — Fair values of loans are estimated as follows: fixed and variable loans are estimated using discounted cash flow analyses, taking into consideration various factors including loan type, credit loss and prepayment expectations. The loan cash flows are discounted to present value using a combination of existing market rates and liquidity spreads as well as underlying index rates and margins on variable rate loans resulting in a Level 3 classification. (d) Time Deposits — Fair value for fixed and variable rate certificates of deposit are estimated using discounted cash flow analyses using interest rates offered at each reporting date by the Company for certificates with similar remaining maturities resulting in a Level 2 classification. (e) Short-Term Borrowings — The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification. (f) Subordinated Debentures and Senior Debt — The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. Assets Recorded at Fair Value The Company is required or permitted to record the following assets at fair value on a recurring basis. The following tables present information about the Company’s assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:
There were no liabilities measured on a recurring basis at March 31, 2024 and December 31, 2023. There were no changes in valuation techniques used during the periods ended March 31, 2024 or December 31, 2023. There were no assets or liabilities measured on a non-recurring basis at March 31, 2024 and December 31, 2023.
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Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2024 and December 31, 2023 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrealized gains and losses (in thousands):
Proceeds and gross realized gains (losses) from the sales or calls of available-for-sale investment securities for the periods ended March 31, 2024 and 2023 are shown below (in thousands):
The provision for income taxes includes a $110,000 and $65,000 income tax benefit from security sales for the three months ended March 31, 2024 and 2023. The amortized cost and estimated fair value of available-for-sale and held-to maturity investment securities at March 31, 2024 by contractual maturity is shown below (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
At March 31, 2024 there were five issuers of private label mortgage securities in which the Company had holdings of securities in amounts greater than 10% of shareholders’ equity. Investments with these issuers were in senior tranches and/or were rated “AAA” or higher and there were no credit issues identified. The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):
As of March 31, 2024, the Company had a total of 173 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting of 6 U.S. Treasury securities and U.S. Government agencies, 43 obligations of states and political subdivisions, 48 U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations, and 76 private label mortgage and asset backed securities. Allowance for Credit Losses on Available-for-Sale Debt Securities Each reporting period, the Company assesses each AFS debt security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The Company did not record an ACL on any available for sale securities at March 31, 2024. As of that date, the Company considers the unrealized losses across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit value. As of March 31, 2024, the Company determined that it is not more likely than not that there is an intention to sell securities or that the Company would be required to sell securities. The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate increases and liquidity and were mainly comprised of the following: •Obligations of States and Political Subdivisions: The unrealized losses on investments in obligations of states and political subdivisions are caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. •U.S. Treasury and Government Sponsored Entities and Agencies Collateralized by Residential Mortgage Obligations: The unrealized losses on the Company’s investments in U.S. treasuries and government sponsored entities and agencies collateralized by residential mortgage obligations were caused by interest rate changes. The contractual cash flows of those investments are guaranteed or supported by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. •Private Label Mortgage and Asset Backed Securities: The Company has invested exclusively in AA and AAA tranches of various private label mortgage and asset backed securities. Each purchase is subject to a credit and structure review prior to their purchase. Ratings are reviewed on a quarterly basis in addition to other metrics provided through third-party services. Following review of the financial metrics and ratings, management concluded that the unrealized loss position of the private label mortgage and asset backed securities related exclusively to the fluctuation in market conditions and were not reflective of any credit concerns with the tranches comprising the Company’s investments. No allowance for credit losses have been recognized on AFS debt securities in an unrealized loss position, as management does not believe that any of the securities are impaired due to credit risk factors as of March 31, 2024 and December 31, 2023. Allowance for Credit Losses on Held-to-Maturity Debt Securities The Company separately evaluates its HTM debt securities for any credit losses based on probability of default and loss given default utilizing historical industry data based on investment category, while also considering reasonable and supportable forecasts. The probability of default and loss given default are incorporated into the present value of expected cash flows and compared against amortized cost. The allowance for credit losses on HTM securities was $894,000 at March 31, 2024. The allowance for credit losses on HTM securities is driven by economic scenarios, estimated probabilities of default and loss given default. Economic scenarios are updated quarterly. The following table shows the summary of activities for the allowance for credit losses related to held-to-maturity debt securities for the three months ended March 31, 2024 and 2023 (in thousands):
During the three month period ended March 31, 2024, the credit to credit losses for held-to-maturity securities was primarily driven by improving economic scenarios and improvements in the probabilities of loss given default. Management believes that the allowance for credit losses for held-to-maturity securities at March 31, 2024 appropriately reflected expected credit losses at that date. The Company monitors credit quality of debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. For non-rated investment securities, management receives quarterly performance updates to monitor for any credit concerns. There were no HTM securities on nonaccrual or past due over 89 days and still on accrual. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator. U.S. Government sponsored agencies are not included in the below tables as credit ratings are not applicable.
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Loans and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses on Loans The majority of the disclosures in this footnote are prepared at the class level, which is equivalent to the call report or call code classification. The roll forward of the allowance for credit losses is presented at the portfolio segment level. Accrued interest receivable on loans of $4,752,000 and $4,512,000 at March 31, 2024 and December 31, 2023 respectively is not included in the loan tables below and is included in other assets on the Company’s balance sheets. Outstanding loans are summarized by class as follows:
At March 31, 2024 and December 31, 2023, loans originated under Small Business Administration (SBA) programs totaling $17,435,000 and $18,246,000, respectively, were included in the real estate and commercial categories, of which, $13,343,000 or 77% and $13,955,000 or 76%, respectively, are secured by government guarantees. Allowance for Credit Losses on Loans The measurement of the allowance for credit losses on collectively evaluated loans is based on modeled expectations of lifetime expected credit losses utilizing national and local peer group historical losses, weighting of economic scenarios, and other relevant factors. The Company incorporates forward-looking information using macroeconomic scenarios, which include variables that are considered key drivers of credit losses within the portfolio. The Company uses a probability-weighted, multiple scenario forecast approach. These scenarios may consist of a base forecast representing the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions. When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for credit losses on an individual loan basis. There were no loans on nonaccrual or individually evaluated as of March 31, 2024 or December 31, 2023. The following table shows the summary of activities for the allowance for credit losses for the three months ended March 31, 2024 and 2023 by portfolio segment (in thousands):
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $575 includes a $(157) credit for held-to-maturity securities and a $202 provision for unfunded loan commitments.
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $633 includes a $(92) credit for held-to-maturity securities and a $207 provision for unfunded loan commitments. During the three month period ended March 31, 2024, the provision for credit losses was primarily driven by loan growth and net charge-off activity. Management believes that the allowance for credit losses at March 31, 2024 appropriately reflected expected credit losses in the loan portfolio at that date. The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated (in thousands):
The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated (in thousands):
The following table shows an aging analysis of the loan portfolio by class at March 31, 2024 (in thousands):
The following table shows an aging analysis of the loan portfolio by class at December 31, 2023 (in thousands):
As of March 31, 2024 and December 31, 2023 there were no collateral dependent loans. There was no foregone interest on nonaccrual loans for the three month periods ended March 31, 2024 and 2023. Occasionally, the Company modifies loans to borrowers in financial distress by providing reductions of the stated interest rate of the loan or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. There were no loan modifications granted to borrowers experiencing financial difficulty during the three month period ended March 31, 2024 or during 2023.
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Borrowing Arrangements |
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Banking and Thrift, Other Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowing Arrangements | Borrowing Arrangements Lines of Credit - The Company had unsecured lines of credit with its correspondent banks which, in the aggregate, amounted to $110,000,000 at March 31, 2024 and December 31, 2023, respectively, at interest rates which vary with market conditions. As of March 31, 2024 and December 31, 2023, the Company had no advances with correspondent banks. Federal Home Loan Bank Advances - As of March 31, 2024, the Company had a $22,000,000 Federal Home Loan Bank (“FHLB”) of San Francisco advance with an interest rate of 5.60%, as compared to a $35,000,000 advance with an interest rate of 5.70% at December 31, 2023. Approximately $623,375,000 in loans were pledged under a blanket lien as collateral to the FHLB for the Company’s remaining borrowing capacity of $342,668,000 as of March 31, 2024. FHLB advances are also secured by investment securities with amortized costs totaling $22,385,000 and $22,315,000 and market values totaling $29,822,000 and $29,727,000 at March 31, 2024 and December 31, 2023, respectively. The Company’s credit limit varies according to the amount and composition of the investment and loan portfolios pledged as collateral. The advances as of March 31, 2024 and December 31, 2023 were overnight advances maturing the following business day. Federal Reserve Line of Credit and Bank Term Funding Program - The Company has a line of credit in the amount of $4,069,000 and $4,448,000 with the Federal Reserve Bank of San Francisco (FRB) at March 31, 2024 and December 31, 2023, respectively, which bears interest at the prevailing discount rate collateralized by investment securities with amortized costs totaling $4,820,000 and $4,894,000 and market values totaling $4,230,000 and $4,374,000, respectively. The Company participated in the Bank Term Funding Program (BTFP) which offered loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. New loan activity under this program ended March 11, 2024. At March 31, 2024 and December 31, 2023, the Company had $45,000,000 as short-term loans outstanding with the FRB under the Bank Term Funding Program at an interest rate of 4.81%. As of March 31, 2024 and December 31, 2023 the Company had $45,171,000 and $46,174,000, respectively, in securities pledged to the program. The following table reflects the Company’s credit lines, balances outstanding, and pledged collateral at March 31, 2024 and December 31, 2023:
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Junior Subordinated Deferrable Interest Debentures |
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Broker-Dealer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Junior Subordinated Deferrable Interest Debentures | Subordinated Debentures The following table summarizes the Company’s long-term debt:
Subordinated Debentures On November 12, 2021, the Company completed a private placement of $35,000,000 aggregate principal amount of its fixed-to-floating rate subordinated notes (“Subordinated Debt”) due December 1, 2031. The Subordinated Debt initially bears a fixed interest rate of 3.125% per year. Commencing on December 1, 2026, the interest rate on the Subordinated Debt will reset each quarter at a floating interest rate equal to the then-current three month term SOFR plus 2.10%. The Company may at its option redeem in whole or in part the Subordinated Debt on or after November 12, 2026 without a premium. The Subordinated Debt is treated as Tier 2 Capital for regulatory purposes. Interest expense recognized by the Company for the Subordinated Debentures for the three months ended March 31, 2024 and 2023 was $310,000. Senior Debt On September 15, 2022, the Company entered into a $30,000,000 loan agreement with Bell Bank. Initially, payments of interest only are payable in 12 quarterly payments commencing December 31, 2022. Commencing December 31, 2025, 27 equal quarterly principal and interest payments are payable based on the outstanding balance of the loan on August 30, 2025 and an amortization of 48 quarters. A final payment of outstanding principal and accrued interest is due at maturity on September 30, 2032. Variable interest is payable at the Prime Rate (published by the Wall Street Journal) less 50 basis points. The loan is secured by the assets of the Company and a pledge of the outstanding common stock of Central Valley Community Bank, the Company’s banking subsidiary. The Company may prepay the loan without penalty with one exception. If the loan is prepaid prior to August 30, 2025 with funds received from a financing source other than Bell Bank, the Company will incur a 2% prepayment penalty. The loan contains customary representations, covenants, and events of default. Interest expense recognized by the Company for the Senior Debt for the three months ended March 31, 2024 and 2023 was $511,000 and $506,000, respectively. Junior Subordinated Debentures Service 1st Capital Trust I is a Delaware business trust formed by Service 1st. The Company succeeded to all of the rights and obligations of Service 1st in connection with the merger with Service 1st as of November 12, 2008. The Trust was formed on August 17, 2006 for the sole purpose of issuing trust preferred securities fully and unconditionally guaranteed by Service 1st. Under applicable regulatory guidance, the amount of trust preferred securities that is eligible as Tier 1 capital is limited to 25% of the Company’s Tier 1 capital on a pro forma basis. At March 31, 2024, all of the trust preferred securities that have been issued qualify as Tier 1 capital. The trust preferred securities mature on October 7, 2036, are redeemable at the Company’s option, and require quarterly distributions by the Trust to the holder of the trust preferred securities at a variable interest rate which will adjust quarterly to equal the three month SOFR plus 1.60%. The Trust used the proceeds from the sale of the trust preferred securities to purchase approximately $5,155,000 in aggregate principal amount of Service 1st’s junior subordinated notes (the Notes). The Notes bear interest at the same variable interest rate during the same quarterly periods as the trust preferred securities. The Notes are redeemable by the Company on any January 7, April 7, July 7, or October 7 or at any time within 90 days following the occurrence of certain events, such as: (i) a change in the regulatory capital treatment of the Notes (ii) in the event the Trust is deemed an investment company or (iii) upon the occurrence of certain adverse tax events. In each such case, the Company may redeem the Notes for their aggregate principal amount, plus any accrued but unpaid interest. The Notes may be declared immediately due and payable at the election of the trustee or holders of 25% of the aggregate principal amount of outstanding Notes in the event that the Company defaults in the payment of any interest following the nonpayment of any such interest for 20 or more consecutive quarterly periods. Holders of the trust preferred securities are entitled to a cumulative cash distribution on the liquidation amount of $1,000 per security. For each January 7, April 7, July 7 or October 7 of each year, the rate will be adjusted to equal the three month SOFR plus 1.60%. As of March 31, 2024, the rate was 7.18%. Interest expense recognized by the Company for the three months ended March 31, 2024 and 2023 was $94,000 and $81,000, respectively.
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Commitments and Contingencies |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance-Sheet Risk - In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. The contract or notional amounts of these instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for loans. Commitments to extend credit amounting to $313,729,000 and $276,270,000 were outstanding at March 31, 2024 and December 31, 2023, respectively. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract unless waived by the Bank. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Included in commitments to extend credit are undisbursed lines of credit totaling $311,394,000 and $274,282,000 at March 31, 2024 and December 31, 2023, respectively. Undisbursed lines of credit include credits whereby customers can repay principal and request principal advances during the term of the loan at their discretion and most expire between and 12 months. Included in undisbursed lines of credit are commitments for the undisbursed portions of construction loans totaling $56,286,000 and $45,116,000 as of March 31, 2024 and December 31, 2023, respectively. These commitments are agreements to lend to customers, subject to meeting certain construction progress requirements established in the contracts. The underlying construction loans have fixed expiration dates. Standby letters of credit and financial guarantees amounting to $2,335,000 and $1,988,000 were outstanding at March 31, 2024 and December 31, 2023, respectively. Standby letters of credit and financial guarantees are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support private financial arrangements. Standby letters of credit and guarantees carry a one year term or less, many have auto-renewal features. The fair value of the liability related to these standby letters of credit, which represents the fees received for their issuance, was not significant at March 31, 2024 or December 31, 2023. The Company recognizes these fees as revenue over the term of the commitment or when the commitment is used. The Company generally requires collateral or other security to support financial instruments with credit risk. Management does not anticipate any material loss will result from the outstanding commitments to extend credit, standby letters of credit and financial guarantees. At March 31, 2024 and December 31, 2023, the allowance for credit losses of unfunded commitments was $1,041,000 and $839,000, respectively. The allowance for credit losses of unfunded commitments is calculated by management using an appropriate, systematic, and consistently applied process. While related to credit losses, this allocation is not a part of the allowance for credit losses on loans and is considered separately as a liability for accounting and regulatory reporting purposes, and is included in Other Liabilities on the Company’s balance sheet. The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or consolidated results of operations of the Company.
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Other Income and Expenses |
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Other Income and Other Expense Disclosure | Other Income and Expense The following table shows significant components of other non-interest income for the periods indicated:
The following table shows significant components of other non-interest expense for the periods indicated:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share (EPS), which excludes dilution, is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock awards, result in the issuance of common stock which shares in the earnings of the Company. A reconciliation of the numerators and denominators of the basic and diluted EPS computations is as follows:
There were no outstanding options at March 31, 2024 or 2023. Holders of unvested restricted stock accrue dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Unvested restricted stock awards that are time-based contain non-forfeitable rights to dividends or dividend equivalents and are considered to be participating securities in the earnings per share computation using the two-class method. Under the two-class method, earnings are allocated to common shareholder and participating securities according to their respective rights to earnings. Unvested stock awards that vest based on performance or market conditions are not considered to be participating securities in the earnings per share calculation because accrued dividends on shares that do not vest are forfeited.
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation In May 2015, the Company adopted the Central Valley Community Bancorp 2015 Omnibus Incentive Plan (2015 Plan). The plan provides for awards in the form of stock options, stock appreciation rights, and restricted stock. The plan also allows for performance awards that may be in the form of cash or shares of the Company’s common stock. With respect to stock options and restricted stock the exercise price in the case of stock options and the grant value in the case of restricted stock may not be less than the fair market value at the date of the award. The options and awards under the plan expire on dates determined by the Board of Directors, but not later than ten years from the date of grant. The vesting period for stock options and restricted stock rights is determined by the Board of Directors and ranges one to five five years. The maximum number of shares that can be issued with respect to all awards under the plan is 875,000. Currently under the 2015 Plan, 603,077 shares remain reserved for future grants as of March 31, 2024. Share-based compensation cost recognized for the 2015 Plan plans was $181,000 and $361,000 for the three months ended March 31, 2024 and 2023, respectively. There was no recognized tax benefit for share-based compensation expense, forfeitures of restricted stock, and exercise of stock options for the three months ended March 31, 2024 and 2023, respectively. Restricted Stock and Common Stock Awards The 2015 Plan provides for the issuance of restricted common stock to directors and officers and common stock awards based on the achievement of performance goals as determined by the Board of Directors or in accordance with executive employment agreements. Restricted common stock grants typically vest over a to five-year period. Restricted common stock is subject to forfeiture if employment terminates prior to vesting. The cost of these awards is recognized over the vesting period of the awards based on the fair value of our common stock on the date of the grant. The shares awarded to employees and directors under the restricted stock agreements vest on applicable vesting dates only to the extent the recipient of the shares is then an employee or a director of the Company or one of its subsidiaries, and each recipient will forfeit all of the shares that have not vested on the date his or her employment or service is terminated. Common stock awards for performance vest immediately. Holders of restricted stock awards receive non-forfeitable dividends at the same rate as common stockholders and they both share equally in undistributed earnings. Therefore, under the two-class method the difference in EPS is not significant for these participating securities. The following table summarizes restricted stock activity for the quarter ended March 31, 2024 as follows: As of March 31, 2024, there were 82,437 shares of restricted stock that are nonvested and expected to vest. As of March 31, 2024, there was $782,000 of total unrecognized compensation cost related to nonvested restricted common stock awards. Restricted stock compensation expense is recognized on a straight-line basis over the vesting period. This cost is expected to be recognized over a weighted-average remaining period of 2.76 years and will be adjusted for subsequent changes in estimated forfeitures. Restricted common stock awards had an intrinsic value of $1,312,000 at March 31, 2024.
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Basis of Presentation (Policies) |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The interim unaudited condensed consolidated financial statements of Community West Bancshares and subsidiary have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). These interim condensed consolidated financial statements include the accounts of Community West Bancshares and its wholly owned subsidiary Community West Bank (the Bank) (collectively, the Company). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been omitted. The Company believes that the disclosures are adequate to make the information presented not misleading. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2023 Annual Report to Shareholders on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position at March 31, 2024, and the results of its operations and its cash flows for the three month interim periods ended March 31, 2024 and 2023 have been included. The results of operations for interim periods are not necessarily indicative of results for the full year. In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 855, “Subsequent Events,” the Company’s management has evaluated subsequent events for potential recognition or disclosure through the date of the issuance of these condensed consolidated financial statements. On April 1, 2024, the Company, formerly named Central Valley Community Bancorp, completed the acquisition of Community West Bancshares. Refer to Note 2 - Business Combinations for further discussion of this transaction. Use of Estimates in the Preparation of Financial Statements The preparation of these interim unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
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Segment Reporting | Management has determined that since all of the banking products and services offered by the Company are available in each branch of the Bank, all branches are located within the same economic environment, and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate the Bank branches and report them as a single operating segment. |
Concentration of Credit Risk | No customer accounts for more than 10 percent of revenues for the Company or the Bank. |
Impact of New Financial Accounting Standards | Certain reclassifications have been made to prior year financial statements to conform to the classifications used in 2024. None of the reclassifications had an impact on equity or net income. Recently Issued or Adopted Accounting Pronouncements FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU was issued to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. This ASU is effective for fiscal years beginning after December 15, 2024. The adoption of this accounting guidance is not expected to have a material impact on the Company’s consolidated financial statements but will result in the expansion of the income tax disclosures. FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This ASU was issued to address stakeholder requests for more detailed information about expenses within each reportable segment and address disclosure requirements there within. The amendments retain existing disclosure requirements, and expand upon them for both interim and annual reporting periods. In addition, entities with a single reportable segment must now provide all segment disclosures required, including the new disclosure requirements. This ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The adoption of this accounting guidance is not expected to have a material impact on the Company’s consolidated financial statements but will result in inclusion of certain segment reporting requirements not previously required.
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value of Financial Instruments | The estimated carrying and fair values of the Company’s financial instruments not carried at fair value are as follows (in thousands):
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Fair Value of Assets on a Recurring Basis | The Company is required or permitted to record the following assets at fair value on a recurring basis. The following tables present information about the Company’s assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:
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Investments (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities reconciliation | The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2024 and December 31, 2023 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrealized gains and losses (in thousands):
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Realized gains and losses | Proceeds and gross realized gains (losses) from the sales or calls of available-for-sale investment securities for the periods ended March 31, 2024 and 2023 are shown below (in thousands):
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Investment | The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):
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Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator. U.S. Government sponsored agencies are not included in the below tables as credit ratings are not applicable.
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Schedule of Maturities of Long-Term Debt | The amortized cost and estimated fair value of available-for-sale and held-to maturity investment securities at March 31, 2024 by contractual maturity is shown below (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
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Loans and Allowance for Credit Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loans | Outstanding loans are summarized by class as follows:
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Impaired loans | There was no foregone interest on nonaccrual loans for the three month periods ended March 31, 2024 and 2023.
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Allowance for credit losses | During the three month period ended March 31, 2024, the provision for credit losses was primarily driven by loan growth and net charge-off activity. Management believes that the allowance for credit losses at March 31, 2024 appropriately reflected expected credit losses in the loan portfolio at that date.
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Loan portfolio by internal risk rating | The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated (in thousands):
The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated (in thousands):
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Loan portfolio by time past due | The following table shows an aging analysis of the loan portfolio by class at March 31, 2024 (in thousands):
The following table shows an aging analysis of the loan portfolio by class at December 31, 2023 (in thousands):
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Junior Subordinated Deferrable Interest Debentures (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Broker-Dealer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Subordinated Borrowing | The following table summarizes the Company’s long-term debt:
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Other Income and Expenses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) | The following table shows significant components of other non-interest income for the periods indicated:
The following table shows significant components of other non-interest expense for the periods indicated:
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the numerators and denominators of the basic and diluted EPS computations is as follows:
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Share-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted common stock activity | The following table summarizes restricted stock activity for the quarter ended March 31, 2024 as follows:
|
Basis of Presentation (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses on loans | $ 14,658 | $ 14,653 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | 894 | $ 1,051 | |
Recoveries | $ 50 | $ 335 |
Investments - Realized gains and losses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Securities, Available-for-sale [Abstract] | ||
Proceeds from sales or calls | $ 5,700 | $ 12,066 |
Debt Securities, Available-for-sale, Realized Gain | 0 | 0 |
Debt Securities, Available-for-sale, Realized Loss | $ (373) | $ (219) |
Loans and Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 1,286,609 | $ 1,290,797 |
Financing Receivable, Accrued Interest | 4,752 | 4,512 |
Small Business Administration programs | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 17,435 | 18,246 |
Amount secured by government guarantees | $ 13,343 | $ 13,955 |
Percent secured by government guarantees | 77.00% | 76.00% |
Other Income and Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other Income and Expenses [Abstract] | ||
Appreciation in cash surrender value of bank-owned life insurance | $ 275 | $ 249 |
Loan placement fees | 166 | 124 |
Interchange fees | 405 | 446 |
Federal Home Loan Bank dividends | 157 | 109 |
Other income | 622 | 479 |
Total other non-interest income | 1,625 | 1,407 |
Total other non-interest expense | 5,152 | 3,913 |
Loan related expenses | 92 | 147 |
Personnel other | 131 | 259 |
Internet banking expense | 0 | |
Regulatory assessments | 322 | 210 |
Data processing | 685 | 650 |
ATM/Debit card expenses | 214 | 184 |
Advertising | 151 | 125 |
Professional services | 625 | 353 |
Information technology | 1,021 | 847 |
Directors’ expenses | 169 | 163 |
Other | 1,359 | 975 |
Other Noninterest Expense | $ 5,152 | $ 3,913 |
Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Basic Earnings Per share | ||
Net income | $ 3,676 | $ 6,970 |
Weighted average shares outstanding (in shares) | 11,750,528 | 11,703,813 |
Basic earnings per share (in dollars per share) | $ 0.31 | $ 0.60 |
Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Diluted Earnings Per share | ||
Net income available to common shareholders | $ 3,676 | $ 6,970 |
Weighted average shares outstanding (in shares) | 11,750,528 | 11,703,813 |
Effect of dilutive stock options (in shares) | 39,703 | 27,322 |
Weighted average shares of common stock and common stock equivalents (in shares) | 11,790,231 | 11,731,135 |
Diluted earnings per share (in dollars per share) | $ 0.31 | $ 0.59 |
Share-Based Compensation - Textual (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Tax benefit of stock option compensation expense | $ 0 | |
Restricted Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 782,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 82,437 | 75,133 |
Weighted average remaining period | 2 years 9 months 3 days | |
Intrinsic value | $ 1,312,000 | |
Restricted Common Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Restricted Common Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years |
Share-Based Compensation - Restricted Common Stock Awards (Details) - Restricted Common Stock |
Mar. 31, 2024
$ / shares
shares
|
---|---|
Shares | |
Nonvested outstanding shares beginning balance (in shares) | 75,133 |
Nonvested outstanding shares ending balance (in shares) | 82,437 |
Weighted Average Grant-Date Fair Value | |
Nonvested outstanding shares beginning balance (in dollars per share) | $ / shares | $ 15.65 |
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