☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Oklahoma
|
|
20-0764349
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification Number)
|
1039 N.W. 63rd Street, Oklahoma City, Oklahoma
|
|
73116
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which
registered
|
Common Stock, $0.01 par value
|
BSVN
|
The NASDAQ Global Select Market
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☒
|
Smaller reporting company ☐
|
Emerging growth company ☒
|
PART I
|
|
1
|
|
11 |
|
26 |
|
26
|
|
26 |
|
26 |
|
PART II
|
|
26 |
|
27 |
|
34 |
|
57 |
|
59 |
|
97 | |
97 | |
98 | |
PART III
|
|
98 | |
98 | |
98 | |
98 | |
98 | |
PART IV
|
|
98 | |
101 | |
98 |
• |
the development of deep business relationships with our commercial customers and their principals;
|
• |
disciplined growth without compromising our asset quality or credit culture;
|
• |
drawing upon years of executive level experience at multi-billion dollar banks;
|
• |
efficiencies gained by adherence to automated and repeatable processes; and
|
• |
investing in our people and technology.
|
Basel III
Minimum
for Capital
Adequacy
Purposes
|
Basel III
Additional
Capital
Conservation
Buffer
|
Basel III
Ratio
with Capital
Conservation
Buffer
|
||||||||||
Total risk based capital (total capital to risk-weighted assets)
|
8.00
|
%
|
2.50
|
%
|
10.50
|
%
|
||||||
Tier 1 risk based capital (tier 1 to risk-weighted assets)
|
6.00
|
%
|
2.50
|
%
|
8.50
|
%
|
||||||
Common equity tier 1 risk based capital (CET1 to risk-weighted assets)
|
4.50
|
%
|
2.50
|
%
|
7.00
|
%
|
||||||
Tier 1 leverage ratio (tier 1 to average assets)
|
4.00
|
%
|
—
|
%
|
4.00
|
%
|
• |
actual or anticipated variations in our quarterly or annual results of operations;
|
• |
recommendations by securities analysts;
|
• |
operating and stock price performance of other companies that investors deem comparable to us;
|
• |
news reports relating to trends, concerns and other issues in the financial services industry generally;
|
• |
conditions in the banking industry such as credit quality and monetary policies;
|
• |
perceptions in the marketplace regarding us or our competitors;
|
• |
fluctuations in the stock price and operating results of our competitors;
|
• |
domestic and international economic factors unrelated to our performance;
|
• |
general market conditions and, in particular, developments related to market conditions for the industry;
|
• |
new technology used, or services offered, by competitors; and
|
• |
changes in government regulations.
|
• |
historical and projected financial condition, liquidity and results of operations;
|
• |
the Company’s capital levels and requirements;
|
• |
statutory and regulatory prohibitions and other limitations;
|
• |
any contractual restriction on the Company’s ability to pay cash dividends, including pursuant to the terms of any of its credit agreements or other borrowing arrangements;
|
• |
business strategy;
|
• |
tax considerations;
|
• |
any acquisitions or potential acquisitions;
|
• |
general economic conditions; and
|
• |
other factors deemed relevant by the Board of Directors.
|
Plan
|
Number of securities to
be issued upon exercise
of outstanding options
and rights
|
Weighted average
exercise price
|
Number of securities
remaining available for
issuance under plan
|
|||||||||
Equity compensation plans approved by shareholders
|
267,000
|
$
|
18.88
|
149,500
|
||||||||
Equity compensation plans not approved by shareholders
|
––
|
––
|
––
|
As of or for the Year Ended
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
Income Statement Data:
|
||||||||||||
Total interest income
|
$
|
51,709
|
$
|
46,800
|
$
|
42,870
|
||||||
Total interest expense
|
9,516
|
7,169
|
4,739
|
|||||||||
Net interest income
|
42,193
|
39,631
|
38,131
|
|||||||||
Provision for loan losses
|
-
|
200
|
1,246
|
|||||||||
Total noninterest income
|
1,308
|
1,331
|
1,435
|
|||||||||
Total noninterest expense
|
28,432
|
14,965
|
14,531
|
|||||||||
Provision for income taxes
|
6,844
|
797
|
—
|
|||||||||
Net income
|
8,225
|
25,000
|
23,789
|
|||||||||
Balance Sheet Data:
|
||||||||||||
Cash and due from banks
|
$
|
117,128
|
$
|
128,090
|
$
|
100,054
|
||||||
Total loans
|
707,304
|
599,910
|
563,001
|
|||||||||
Allowance for loan losses
|
7,846
|
7,832
|
7,654
|
|||||||||
Total assets
|
866,392
|
770,511
|
703,594
|
|||||||||
Interest-bearing deposits
|
538,262
|
474,744
|
459,920
|
|||||||||
Noninterest-bearing deposits
|
219,221
|
201,159
|
165,911
|
|||||||||
Total deposits
|
757,483
|
675,903
|
625,831
|
|||||||||
Total shareholders’ equity
|
100,126
|
88,466
|
69,176
|
As of or for the Year Ended
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
Share and Per Share Data:
|
||||||||||||
Earnings per share (basic)
|
$
|
0.81
|
$
|
3.08
|
$
|
3.26
|
||||||
Earnings per share (diluted)
|
0.81
|
3.03
|
3.26
|
|||||||||
Dividends per share
|
0.60
|
7.71
|
1.34
|
|||||||||
Book value per share
|
9.96
|
8.68
|
9.49
|
|||||||||
Tangible book value per share(1)
|
9.78
|
8.49
|
9.19
|
|||||||||
Weighted average common shares outstanding–basic
|
10,145,032
|
8,105,856
|
7,287,500
|
|||||||||
Weighted average common shares outstanding–diluted
|
10,147,311
|
8,237,638
|
7,287,500
|
|||||||||
Shares outstanding at end of period
|
10,057,506
|
10,187,500
|
7,287,500
|
|||||||||
Selected Ratios:
|
||||||||||||
Return on average:
|
||||||||||||
Assets
|
1.03
|
%
|
3.53
|
%
|
3.62
|
%
|
||||||
Shareholders’ equity
|
8.42
|
33.01
|
37.43
|
|||||||||
Yield on earnings assets
|
6.55
|
6.48
|
6.60
|
|||||||||
Yield on loans
|
7.58
|
7.58
|
7.69
|
|||||||||
Yield on loans (excluding loan fee income)(1)
|
6.88
|
6.71
|
6.14
|
|||||||||
Cost of funds
|
1.37
|
1.11
|
0.80
|
|||||||||
Cost of interest-bearing deposits
|
1.89
|
1.52
|
1.02
|
|||||||||
Cost of total deposits
|
1.37
|
1.08
|
0.77
|
|||||||||
Net interest margin
|
5.35
|
5.49
|
5.87
|
|||||||||
Net interest margin (excluding loan fee income)(1)
|
4.78
|
4.78
|
4.59
|
|||||||||
Noninterest expense to average assets
|
3.56
|
2.05
|
2.21
|
|||||||||
Efficiency ratio
|
65.39
|
37.04
|
37.24
|
|||||||||
Loans to deposits
|
93.38
|
88.76
|
89.96
|
|||||||||
Credit Quality Ratios:
|
||||||||||||
Nonperforming assets to total assets
|
0.38
|
%
|
0.35
|
%
|
0.28
|
%
|
||||||
Nonperforming assets to total loans and OREO
|
0.47
|
0.45
|
0.35
|
|||||||||
Nonperforming loans to total loans
|
0.47
|
0.44
|
0.34
|
|||||||||
Allowance for loan losses to nonperforming loans
|
235.40
|
299.50
|
404.55
|
|||||||||
Allowance for loan losses to total loans
|
1.11
|
1.31
|
1.36
|
|||||||||
Net charge-offs to average loans
|
-0.002
|
0.004
|
0.09
|
|||||||||
Capital Ratios (Bank) (2):
|
||||||||||||
Tangible equity to tangible assets
|
11.37
|
11.25
|
9.55
|
|||||||||
Common equity tier 1 capital ratio
|
14.28
|
14.78
|
12.58
|
|||||||||
Tier 1 leverage ratio
|
11.65
|
11.26
|
10.53
|
|||||||||
Tier 1 risk-based capital ratio
|
14.28
|
14.78
|
12.58
|
|||||||||
Total risk-based capital ratio
|
15.42
|
16.03
|
13.83
|
|||||||||
Capital Ratios (Company):
|
||||||||||||
Total shareholders’ equity to total assets
|
11.56
|
%
|
11.48
|
%
|
9.83
|
%
|
||||||
Common equity tier 1 capital ratio
|
14.11
|
14.61
|
11.61
|
|||||||||
Tier 1 leverage ratio
|
11.53
|
11.13
|
9.72
|
|||||||||
Tier 1 risk-based capital ratio
|
14.11
|
14.61
|
11.61
|
|||||||||
Total risk-based capital ratio
|
15.25
|
15.86
|
12.86
|
As of or for the Year Ended
December 31,
|
||||||||||||
2019 |
2018
|
2017
|
||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
Share and Per Share Data:
|
||||||||||||
Earnings per share (basic) – S Corp
|
$
|
1.48
|
$
|
3.18
|
$
|
3.26
|
||||||
Earnings per share (basic) – C Corp(1)
|
0.81
|
2.48
|
1.96
|
|||||||||
Earnings per share (diluted) – S Corp
|
1.48
|
3.13
|
3.26
|
|||||||||
Earnings per share (diluted) – C Corp(1)
|
0.81
|
2.44
|
1.96
|
|||||||||
Dividends per share
|
0.60
|
7.71
|
1.34
|
|||||||||
Book value per share
|
9.96
|
8.68
|
9.49
|
|||||||||
Tangible book value per share(2)
|
9.78
|
8.49
|
9.19
|
|||||||||
Weighted average common shares outstanding–basic
|
10,145,032
|
8,105,856
|
7,287,500
|
|||||||||
Weighted average common shares outstanding–diluted
|
10,147,311
|
8,238,753
|
7,287,500
|
|||||||||
Shares outstanding at end of period
|
10,057,506
|
10,187,500
|
7,287,500
|
|||||||||
Selected Ratios:
|
||||||||||||
Return on average:
|
||||||||||||
Assets – S Corp
|
1.88
|
%
|
3.53
|
%
|
3.62
|
%
|
||||||
Assets – C Corp(1)
|
1.03
|
2.75
|
2.17
|
|||||||||
Shareholders’ equity – S Corp
|
15.44
|
33.01
|
37.43
|
|||||||||
Shareholders’ equity – C Corp(1)
|
8.42
|
25.69
|
22.46
|
|||||||||
Yield on earnings assets
|
6.55
|
6.48
|
6.60
|
|||||||||
Yield on loans
|
7.58
|
7.58
|
7.69
|
|||||||||
Yield on loans (excluding loan fee income)(2)
|
6.88
|
6.71
|
6.14
|
|||||||||
Cost of funds
|
1.37
|
1.11
|
0.80
|
|||||||||
Cost of interest-bearing deposits
|
1.89
|
1.52
|
1.02
|
|||||||||
Cost of total deposits
|
1.37
|
1.08
|
0.77
|
|||||||||
Net interest margin
|
5.35
|
5.49
|
5.87
|
|||||||||
Net interest margin (excluding loan fee income)(2)
|
4.78
|
4.78
|
4.59
|
|||||||||
Noninterest expense to average assets
|
3.56
|
2.05
|
2.21
|
|||||||||
Efficiency ratio
|
65.39
|
37.04
|
37.24
|
|||||||||
Loans to deposits
|
93.38
|
88.76
|
89.96
|
|||||||||
Credit Quality Ratios:
|
||||||||||||
Nonperforming assets to total assets
|
0.38
|
%
|
0.35
|
%
|
0.28
|
%
|
||||||
Nonperforming assets to total loans and OREO
|
0.47
|
0.45
|
0.35
|
|||||||||
Nonperforming loans to total loans
|
0.47
|
0.43
|
0.34
|
|||||||||
Allowance for loan losses to nonperforming loans
|
235.40
|
299.50
|
404.55
|
|||||||||
Allowance for loan losses to total loans
|
1.11
|
1.31
|
1.36
|
|||||||||
Net charge-offs to average loans
|
-0.002
|
-0.004
|
0.09
|
|||||||||
Capital Ratios:
|
||||||||||||
Total shareholders’ equity to total assets
|
11.56
|
%
|
11.48
|
%
|
9.83
|
%
|
||||||
Tangible equity to tangible assets(2)
|
11.37
|
11.25
|
9.55
|
|||||||||
Common equity tier 1 capital ratio(3)
|
14.28
|
14.78
|
12.58
|
|||||||||
Tier 1 leverage ratio(3)
|
11.65
|
11.26
|
10.53
|
|||||||||
Tier 1 risk-based capital ratio(3)
|
14.28
|
14.78
|
12.58
|
|||||||||
Total risk-based capital ratio(3)
|
15.42
|
16.03
|
13.83
|
As of December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
Tangible Shareholders’ Equity:
|
||||||||||||
Total shareholders’ equity
|
$
|
100,126
|
$
|
88,466
|
$
|
69,176
|
||||||
Adjustments:
|
||||||||||||
Goodwill and other intangibles
|
(1,789
|
)
|
(1,995
|
)
|
(2,201
|
)
|
||||||
Tangible shareholders’ equity
|
$
|
98,337
|
$
|
86,471
|
$
|
66,975
|
||||||
Tangible Assets:
|
||||||||||||
Total assets
|
$
|
866,392
|
$
|
770,511
|
$
|
703,594
|
||||||
Adjustments:
|
||||||||||||
Goodwill and other intangibles
|
$
|
(1,789
|
)
|
$
|
(1,995
|
)
|
(2,201
|
)
|
||||
Tangible assets
|
$
|
864,603
|
$
|
768,516
|
$
|
701,393
|
||||||
End of period common shares outstanding
|
10,057,506
|
10,187,500
|
7,287,500
|
|||||||||
Book value per share
|
$
|
9.96
|
$
|
8.68
|
$
|
9.49
|
||||||
Tangible book value per share
|
$
|
9.78
|
$
|
8.49
|
$
|
9.19
|
||||||
Total shareholders’ equity to total assets
|
11.56
|
%
|
11.48
|
%
|
9.83
|
%
|
||||||
Tangible shareholders’ equity to tangible assets
|
11.37
|
%
|
11.25
|
%
|
9.55
|
%
|
As of or for the Year Ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Loan interest income (excluding loan fee income):
|
||||||||||||
Interest income on loans, including loan fee income
|
$
|
48,200
|
$
|
44,279
|
$
|
41,450
|
||||||
Adjustments:
|
||||||||||||
Loan fee income
|
(4,443
|
)
|
(5,121
|
)
|
(8,331
|
)
|
||||||
Interest income on loans (excluding loan fee income)
|
$
|
43,757
|
$
|
39,158
|
$
|
33,119
|
||||||
Average total loans
|
$
|
636,274
|
$
|
584,003
|
$
|
539,302
|
||||||
Yield on loans
|
7.58
|
%
|
7.58
|
%
|
7.69
|
%
|
||||||
Yield on loans (excluding loan fee income)
|
6.88
|
%
|
6.71
|
%
|
6.14
|
%
|
||||||
Net interest margin (excluding loan fee income):
|
||||||||||||
Net interest income
|
$
|
42,193
|
$
|
39,631
|
$
|
38,131
|
||||||
Adjustments:
|
||||||||||||
Loan fee income
|
(4,443
|
)
|
(5,121
|
)
|
(8,331
|
)
|
||||||
Net interest income (excluding loan fee income)
|
$
|
37,750
|
$
|
34,510
|
$
|
29,800
|
||||||
Average interest-earning assets
|
$
|
789,009
|
$
|
721,935
|
$
|
649,757
|
||||||
Net interest margin
|
5.35
|
%
|
5.49
|
%
|
5.87
|
%
|
||||||
Net interest margin (excluding loan fee income)
|
4.78
|
%
|
4.78
|
%
|
4.59
|
%
|
||||||
For the Year Ended
December 31,
|
||||||||||||||||
2019
|
2018
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Pro Forma Net Income
|
||||||||||||||||
Total Interest Income
|
$
|
51,709
|
$
|
46,800
|
$
|
4,909
|
10.49
|
%
|
||||||||
Total Interest Expense
|
9,516
|
7,169
|
2,347
|
32.73
|
%
|
|||||||||||
Net Interest Margin
|
42,193
|
39,631
|
2,562
|
6.47
|
%
|
|||||||||||
Provision for Loan Losses
|
$
|
-
|
$
|
200
|
$
|
-
|
||||||||||
Total Noninterest Income
|
$
|
1,308
|
$
|
1,331
|
$
|
(23
|
)
|
(1.71
|
%)
|
|||||||
Total Noninterest Expense
|
$
|
28,432
|
$
|
14,966
|
$
|
13,466
|
89.98
|
%
|
||||||||
Stock Transfer Compensation Expense (1)
|
(11,796
|
)
|
-
|
(11,796
|
)
|
|||||||||||
Pro Forma Noninterest Expense
|
16,636
|
14,966
|
1,670
|
11.16
|
%
|
|||||||||||
Pro Forma Pre-Tax Income
|
$
|
26,866
|
$
|
25,796
|
$
|
1,070
|
4.15
|
%
|
||||||||
Pro Forma Income Tax Expense
|
$
|
6,836
|
$
|
5,719
|
$
|
1,117
|
19.53
|
%
|
||||||||
Pro Forma Net After-Tax Income
|
$
|
20,030
|
$
|
20,077
|
$
|
(47
|
)
|
(0.24
|
%)
|
(1) |
Compensation expense includes $168,000 in payroll taxes.
|
As of or for the
year ended
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Before Taxes
|
||||||||||||
Net income(1)
|
$
|
15,069
|
$
|
25,797
|
$
|
23,789
|
||||||
Pro forma C Corporation
|
||||||||||||
Combined effective income tax rate(2)
|
45.42
|
%
|
22.19
|
%
|
39.97
|
%
|
||||||
Income tax provision
|
$
|
6,844
|
$
|
5,720
|
$
|
9,509
|
||||||
Net income
|
8,225
|
20,077
|
14,280
|
|||||||||
Total shareholders’ equity
|
100,126
|
88,466
|
69,176
|
|||||||||
Earnings per share (basic)
|
0.81
|
2.48
|
1.96
|
|||||||||
Earnings per share (diluted)
|
0.81
|
2.44
|
1.96
|
|||||||||
Return on average:
|
||||||||||||
Assets
|
1.03
|
2.75
|
2.17
|
|||||||||
Shareholders’ equity
|
8.42
|
25.69
|
22.46
|
(1) |
A portion of our net income in each of these periods was derived from nontaxable investment income and other nondeductible expenses.
|
(2) |
Based on a statutory federal income tax rate of 21%, 21%, and 35% for the years ended December 31, 2019, 2018 and 2017, respectively, plus the applicable statutory state income tax rate for each of the
respective periods. State income tax expense would have been approximately:
|
- |
$1.2 million for the year ended December 31, 2019 with an effective state tax rate of 4.4%
|
- |
$1.3 million for the year ended December 31, 2018 with an effective state tax rate of 4.9%
|
- |
$1.3 million for the year ended December 31, 2017 with an effective state tax rate of 5.4%
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2019
|
2018
|
2017
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
Short-term investments(1)
|
$
|
151,434
|
$
|
3,459
|
2.28
|
%
|
$
|
136,880
|
$
|
2,521
|
1.84
|
%
|
$
|
109,410
|
$
|
1,420
|
1.30
|
%
|
||||||||||||||||||
Investment securities(2)
|
$
|
1,065
|
50
|
4.69
|
%
|
$
|
1,052
|
—
|
0.00
|
%
|
$
|
1,045
|
—
|
0.00
|
%
|
|||||||||||||||||||||
Loans held for sale
|
$
|
236
|
—
|
0.00
|
%
|
$
|
182
|
—
|
0.00
|
%
|
$
|
224
|
—
|
0.00
|
%
|
|||||||||||||||||||||
Total loans(3)
|
$
|
636,274
|
$
|
48,200
|
7.58
|
%
|
$
|
583,821
|
$
|
44,279
|
7.58
|
%
|
$
|
539,078
|
$
|
41,450
|
7.69
|
%
|
||||||||||||||||||
Total interest-earning assets
|
$
|
789,009
|
$
|
51,709
|
6.55
|
%
|
$
|
721,935
|
$
|
46,800
|
6.48
|
%
|
$
|
649,757
|
$
|
42,870
|
6.60
|
%
|
||||||||||||||||||
Noninterest-earning assets
|
$
|
9,519
|
$
|
8,629
|
$
|
7,811
|
||||||||||||||||||||||||||||||
Total assets
|
$
|
798,528
|
$
|
730,564
|
$
|
657,568
|
||||||||||||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||||
Transaction accounts
|
$
|
295,576
|
$
|
5,057
|
1.71
|
%
|
$
|
240,881
|
$
|
3,584
|
1.49
|
%
|
$
|
242,790
|
$
|
2,214
|
0.91
|
%
|
||||||||||||||||||
Time deposits
|
$
|
208,375
|
$
|
4,459
|
2.14
|
%
|
$
|
220,023
|
$
|
3,410
|
1.55
|
%
|
$
|
200,513
|
$
|
2,288
|
1.14
|
%
|
||||||||||||||||||
Total interest-bearing deposits
|
$
|
503,951
|
$
|
9,516
|
1.89
|
%
|
$
|
460,904
|
$
|
6,994
|
1.52
|
%
|
$
|
443,303
|
$
|
4,502
|
1.02
|
%
|
||||||||||||||||||
Other borrowings
|
$
|
—
|
$
|
—
|
0.00
|
%
|
$
|
3,652
|
$
|
175
|
4.79
|
%
|
$
|
5,740
|
$
|
237
|
4.13
|
%
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
503,951
|
$
|
9,516
|
1.89
|
%
|
$
|
464,556
|
$
|
7,169
|
1.54
|
%
|
$
|
449,043
|
$
|
4,739
|
1.06
|
%
|
||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
192,562
|
$
|
183,750
|
$
|
142,035
|
||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities
|
$
|
4,585
|
$
|
4,110
|
$
|
2,932
|
||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities
|
$
|
197,147
|
$
|
187,860
|
$
|
144,967
|
||||||||||||||||||||||||||||||
Shareholders’ equity
|
$
|
97,430
|
$
|
78,148
|
$
|
63,558
|
||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
798,528
|
$
|
730,564
|
$
|
657,568
|
||||||||||||||||||||||||||||||
Net interest income
|
$
|
42,193
|
$
|
39,631
|
$
|
38,131
|
||||||||||||||||||||||||||||||
Net interest spread(4)
|
4.67
|
%
|
4.94
|
%
|
5.54
|
%
|
||||||||||||||||||||||||||||||
Net interest margin
|
5.35
|
%
|
5.49
|
%
|
5.87
|
%
|
(1) |
Includes income and weighted average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
|
(2)
|
Includes income and weighted average balances for FHLB and FRB stock.
|
(3) |
Average loan balances include monthly average nonaccrual loans of $2.1 million, $991,000 and $2.6 million for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(4)
|
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
|
- |
Total interest income on loans increased $3.9 million, or 8.9%, to $48.2 million which was attributable to a $52.5 million increase in the average balance of loans to $636.3 million during the year ended
2019 as compared with the average balance of $583.8 million for the year ended 2018;
|
- |
Loan fees totaled $4.4 million, a decrease of $678,000 or 13.2% which was attributable to nonrecurring loan fee income earned during the year ended 2018 as compared to 2019;
|
- |
Yields on our interest-earning assets totaled 6.55%, an increase of 7 basis points; and
|
- |
Net interest margin for the year ended 2019 and 2018 was 5.35% and 5.49%, respectively.
|
- |
Total interest income on loans increased $2.8 million, or 6.8%, to $44.3 million which was attributable to a $44.7 million increase in the average balance of loans to
$583.8 million during the year ended 2018 as compared with the average balance of $539.1 million for the year ended 2017;
|
- |
Loan fees totaled $5.1 million, a decrease of $3.2 million or 38.5% which was attributable to nonrecurring loan fee income earned during the year ended 2017 as
compared to 2018;
|
- |
Yields on our interest-earning assets totaled 6.48%, a decrease of 12 basis points which was attributable to the $3.2 million decrease in nonrecurring loan fee income
earned during the year ended 2018; and
|
- |
Net interest margin for the year ended 2018 and 2017 was 5.49% and 5.87%, respectively.
|
For the Year Ended
December 31, 2019 vs. 2018
|
For the Year Ended
December 31, 2018 vs. 2017
|
|||||||||||||||||||||||
Change due to:
|
Change due to:
|
|||||||||||||||||||||||
Volume(1)
|
Rate(1)
|
Interest
Variance
|
Volume(1)
|
Rate(1)
|
Interest
Variance
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Increase (decrease) in interest income:
|
||||||||||||||||||||||||
Short-term investments
|
$
|
268
|
$
|
670
|
$
|
938
|
$
|
357
|
$
|
744
|
$
|
1,101
|
||||||||||||
Investment securities
|
$
|
---
|
$
|
50
|
$
|
50
|
$
|
---
|
$
|
---
|
$
|
---
|
||||||||||||
Total loans
|
$
|
3,978
|
$
|
(57
|
)
|
$
|
3,921
|
$
|
3,440
|
$
|
(611
|
)
|
$
|
2,829
|
||||||||||
Total increase in interest income
|
$
|
4,246
|
$
|
663
|
$
|
4,909
|
$
|
3,797
|
$
|
133
|
$
|
3,930
|
||||||||||||
Increase (decrease) in interest expense:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
814
|
$
|
659
|
$
|
1,473
|
$
|
(17
|
)
|
$
|
1,387
|
$
|
1,370
|
|||||||||||
Time deposits
|
$
|
(181
|
)
|
$
|
1,230
|
$
|
1,049
|
$
|
223
|
$
|
899
|
$
|
1,122
|
|||||||||||
Total interest-bearing deposits
|
$
|
633
|
$
|
1,889
|
$
|
2,522
|
$
|
205
|
$
|
2,287
|
$
|
2,492
|
||||||||||||
Other borrowings
|
---
|
(175
|
)
|
(175
|
)
|
(86
|
)
|
24
|
(62
|
)
|
||||||||||||||
Total interest-bearing liabilities
|
$
|
633
|
$
|
1,714
|
$
|
2,347
|
$
|
119
|
$
|
2,311
|
$
|
2,430
|
||||||||||||
Increase in net interest income
|
$
|
3,613
|
$
|
(1,051
|
)
|
$
|
2,562
|
$
|
3,678
|
$
|
(2,178
|
)
|
$
|
1,500
|
- |
The provision for loan losses decreased by $200,000, or 100%, to $0; and
|
- |
The allowance as a percentage of loans decreased by 20 basis points to 1.11%.
|
- |
The provision for loan losses decreased by $1 million, or 83.95%, to $200,000; and
|
- |
The allowance as a percentage of loans decreased by 5 basis points to 1.31%.
|
For the Years Ended
December 31,
|
For the Years Ended
December 31,
|
|||||||||||||||||||||||||||||||
2019
|
2018
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
2018
|
2017
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Noninterest income:
|
||||||||||||||||||||||||||||||||
Service charges on deposit accounts
|
$
|
392
|
$
|
347
|
$
|
(48
|
)
|
(22.64
|
%)
|
$
|
347
|
$
|
336
|
$
|
11
|
3.27
|
%
|
|||||||||||||||
Gain on sale of loans
|
$
|
164
|
$
|
212
|
$
|
45
|
12.97
|
%
|
$
|
212
|
$
|
183
|
$
|
29
|
15.85
|
%
|
||||||||||||||||
Other income and fees
|
$
|
752
|
$
|
772
|
$
|
(20
|
)
|
(2.59
|
%)
|
$
|
772
|
$
|
916
|
$
|
(144
|
)
|
(15.72
|
%)
|
||||||||||||||
Total noninterest income
|
$
|
1,308
|
$
|
1,331
|
$
|
(23
|
)
|
(1.73
|
%)
|
$
|
1,331
|
$
|
1,435
|
$
|
(104
|
)
|
(7.25
|
%)
|
For the Years Ended
December 31,
|
For the Years Ended
December 31,
|
|||||||||||||||||||||||||||||||
2019
|
2018
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
2018
|
2017
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Noninterest expense:
|
||||||||||||||||||||||||||||||||
Salaries and employee benefits
|
$
|
21,265
|
$
|
8,113
|
$
|
13,152
|
162.11
|
%
|
$
|
8,113
|
$
|
7,611
|
$
|
502
|
6.60
|
%
|
||||||||||||||||
Furniture and equipment
|
829
|
684
|
145
|
21.20
|
%
|
684
|
831
|
(147
|
)
|
(17.69
|
%)
|
|||||||||||||||||||||
Occupancy
|
1,677
|
1,105
|
572
|
51.76
|
%
|
1,105
|
1,049
|
56
|
5.34
|
%
|
||||||||||||||||||||||
Data and item processing
|
1,078
|
966
|
112
|
11.59
|
%
|
966
|
891
|
75
|
8.42
|
%
|
||||||||||||||||||||||
Accounting, legal and professional fees
|
757
|
305
|
452
|
148.20
|
%
|
305
|
284
|
21
|
7.39
|
%
|
||||||||||||||||||||||
Regulatory assessments
|
126
|
542
|
(416
|
)
|
(76.75
|
%)
|
542
|
450
|
92
|
20.44
|
%
|
|||||||||||||||||||||
Advertising and public relations
|
588
|
553
|
35
|
6.33
|
%
|
553
|
433
|
120
|
27.71
|
%
|
||||||||||||||||||||||
Travel, lodging and entertainment
|
368
|
699
|
(331
|
)
|
(47.35
|
%)
|
699
|
1,041
|
(342
|
)
|
(32.85
|
%)
|
||||||||||||||||||||
Other expense
|
1,744
|
1,998
|
(254
|
)
|
(12.71
|
%)
|
1,998
|
1,941
|
57
|
2.94
|
%
|
|||||||||||||||||||||
Total noninterest expense
|
$
|
28,432
|
$
|
14,965
|
$
|
13,467
|
89.99
|
%
|
$
|
14,965
|
$
|
14,531
|
$
|
434
|
2.99
|
%
|
- |
Salaries and employee benefits expense was $21.3 million compared to $8.1 million, an increase of $13.2 million, or 162.1%. The increase in 2019 was attributable to our one-time non-cash executive stock
transaction.
|
- |
Occupancy expense was $1.7 million compared to $1.1 million, an increase of $572,000, or 51.8%. The increase in 2019 was primarily due to the renovation of our headquarters and the expansion into two new
markets.
|
- |
Accounting, legal and professional fees were $757,000 compared to $305,000, an increase of $452,000, or 148.2%. The increase was primarily due to 2019 being our first full year as a public company.
|
- |
Salaries and employee benefits expense was $8.1 million compared to $7.6 million, an increase of $502,000, or 6.6%. The increase in 2018 was attributable to higher salaries and incentive compensation
expense.
|
- |
Furniture and equipment expense was $684,000 compared to $831,000, a decrease of $147,000, or 17.7%. The decrease in 2018 was primarily due to lower bank vehicle expenses compared to 2017.
|
- |
Regulatory assessments totaled $542,000 compared to $450,000, an increase of $92,000, or 20.4%. The change came primarily from FDIC assessments that totaled $440,000 in 2018 compared to $394,000 in 2017, an
increase of $46,000, or 11.7%. The increase is due to a higher assessment associated with an increase in deposits accounts due to organic growth and expansion into the Texas market.
|
- |
Travel, lodging and entertainment expense was $699,000 compared to $1.0 million, a decrease of $342,000, or 32.9%. The decrease in 2018 was primarily due to lower aircraft expenses as the aircraft was sold
at the end of the third quarter of 2018.
|
As of December 31,
|
As of December 31,
|
As of December 31,
|
||||||||||||||||||||||
2019
|
2018
|
2017
|
||||||||||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Construction & development
|
$
|
70,628
|
10.0
|
%
|
$
|
87,267
|
14.5
|
%
|
$
|
103,787
|
18.4
|
%
|
||||||||||||
1-4 family real estate
|
34,160
|
4.8
|
33,278
|
5.5
|
31,778
|
5.6
|
||||||||||||||||||
Commercial real estate - other
|
273,278
|
38.5
|
156,396
|
26.0
|
137,534
|
24.4
|
||||||||||||||||||
Total real estate
|
378,066
|
53.3
|
276,941
|
46.0
|
273,099
|
48.4
|
||||||||||||||||||
Commercial & industrial
|
260,762
|
36.8
|
248,394
|
41.3
|
204,976
|
36.3
|
||||||||||||||||||
Agricultural
|
57,945
|
8.2
|
62,844
|
10.4
|
74,871
|
13.3
|
||||||||||||||||||
Consumer
|
11,895
|
1.7
|
13,723
|
2.3
|
11,631
|
2.1
|
||||||||||||||||||
Gross loans
|
708,668
|
100.0
|
%
|
601,902
|
100.0
|
%
|
564,577
|
100.0
|
%
|
|||||||||||||||
Less deferred loan fees, net
|
(1,364
|
)
|
(1,992
|
)
|
(1,576
|
)
|
||||||||||||||||||
Total loans
|
707,304
|
599,910
|
563,001
|
|||||||||||||||||||||
Allowance for loan and lease losses
|
(7,846
|
)
|
(7,832
|
)
|
(7,654
|
)
|
||||||||||||||||||
Net loans
|
$
|
699,458
|
$
|
592,078
|
$
|
555,347
|
As of December 31, 2019
|
||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
|
||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
—
|
$
|
31,860
|
$
|
833
|
$
|
37,483
|
$
|
—
|
$
|
452
|
$
|
70,628
|
||||||||||||||
1-4 family real estate
|
282
|
9,598
|
3,843
|
19,676
|
43
|
718
|
34,160
|
|||||||||||||||||||||
Commercial real estate - other
|
1,849
|
23.533
|
23,194
|
219,390
|
335
|
4,977
|
273,278
|
|||||||||||||||||||||
Total real estate
|
2,131
|
64,991
|
27,870
|
276,549
|
378
|
6,147
|
378,066
|
|||||||||||||||||||||
Commercial & industrial
|
11,677
|
176,329
|
9,973
|
54,233
|
12
|
8,538
|
260,762
|
|||||||||||||||||||||
Agricultural
|
3,947
|
34,875
|
2,786
|
13,055
|
1,319
|
1,963
|
57,945
|
|||||||||||||||||||||
Consumer
|
2,042
|
—
|
4,824
|
159
|
4,047
|
823
|
11,895
|
|||||||||||||||||||||
Gross loans
|
$
|
19,797
|
$
|
276,195
|
$
|
45,453
|
$
|
343,996
|
$
|
5,756
|
$
|
17,471
|
$
|
708,668
|
As of December 31, 2018
|
||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
|
||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
741
|
$
|
29,412
|
$
|
617
|
$
|
56,497
|
$
|
---
|
$
|
---
|
$
|
87,267
|
||||||||||||||
1-4 family real estate
|
682
|
19,866
|
1,643
|
$
|
10,934
|
---
|
153
|
33,278
|
||||||||||||||||||||
Commercial real estate - other
|
457
|
14,280
|
283
|
$
|
134,090
|
2,197
|
5,089
|
156,396
|
||||||||||||||||||||
Total real estate
|
1,880
|
63,558
|
2,543
|
201,521
|
2,197
|
5,242
|
276,941
|
|||||||||||||||||||||
Commercial & industrial
|
13,725
|
153,891
|
7,878
|
66,631
|
14
|
6,255
|
248,394
|
|||||||||||||||||||||
Agricultural
|
4,474
|
32,496
|
4,084
|
17,669
|
1,374
|
2,747
|
62,844
|
|||||||||||||||||||||
Consumer
|
2,688
|
---
|
5,443
|
50
|
4,453
|
1,089
|
13,723
|
|||||||||||||||||||||
Gross loans
|
$
|
22,767
|
$
|
249,945
|
$
|
19,948
|
$
|
285,871
|
$
|
8,038
|
$
|
15,333
|
$
|
601,902
|
As of December 31, 2017
|
||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
|
||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
1,699
|
$
|
45,186
|
$
|
3,006
|
$
|
53,850
|
$
|
—
|
$
|
46
|
$
|
103,787
|
||||||||||||||
1-4 family real estate
|
1,877
|
14,671
|
1,734
|
13,235
|
43
|
218
|
31,778
|
|||||||||||||||||||||
Commercial real estate - other
|
5,619
|
13,505
|
1,221
|
108,832
|
2,445
|
5,912
|
137,534
|
|||||||||||||||||||||
Total real estate
|
9,195
|
73,362
|
5,961
|
175,917
|
2,488
|
6,176
|
273,099
|
|||||||||||||||||||||
Commercial & industrial
|
45,182
|
108,921
|
5,895
|
27,169
|
704
|
17,105
|
204,976
|
|||||||||||||||||||||
Agricultural
|
3,495
|
37,335
|
6,956
|
20,927
|
2,743
|
3,415
|
74,871
|
|||||||||||||||||||||
Consumer
|
2,608
|
126
|
6,221
|
665
|
1,391
|
620
|
11,631
|
|||||||||||||||||||||
Gross loans
|
$
|
60,480
|
$
|
219,744
|
$
|
25,033
|
$
|
224,678
|
$
|
7,326
|
$
|
27,316
|
$
|
564,577
|
For the Year Ended
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Balance at beginning of the period
|
$
|
7,832
|
$
|
7,654
|
$
|
6,873
|
||||||
Provision for loan losses
|
—
|
200
|
1,246
|
|||||||||
Charge-offs:
|
||||||||||||
Construction & development
|
—
|
—
|
—
|
|||||||||
1-4 family real estate
|
(2
|
)
|
(25
|
)
|
—
|
|||||||
Commercial real estate - other
|
—
|
—
|
(224
|
)
|
||||||||
Commercial & industrial
|
(4
|
)
|
(73
|
)
|
(242
|
)
|
||||||
Agricultural
|
(11
|
)
|
—
|
—
|
||||||||
Consumer
|
(1
|
)
|
—
|
(46
|
)
|
|||||||
Total charge-offs
|
(18
|
)
|
(98
|
)
|
(512
|
)
|
||||||
Recoveries:
|
||||||||||||
Construction & development
|
—
|
—
|
—
|
|||||||||
1-4 family real estate
|
5
|
3
|
23
|
|||||||||
Commercial real estate - other
|
—
|
—
|
6
|
|||||||||
Commercial & industrial
|
24
|
71
|
6
|
|||||||||
Agricultural
|
3
|
1
|
—
|
|||||||||
Consumer
|
—
|
1
|
12
|
|||||||||
Total recoveries
|
32
|
76
|
47
|
|||||||||
Net charge-offs
|
14
|
(22
|
)
|
(465
|
)
|
|||||||
Balance at end of the period
|
$
|
7,846
|
$
|
7,832
|
$
|
7,654
|
As of December 31,
|
||||||||||||||||||||||||
2019
|
2018
|
2017
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Construction & development
|
$
|
782
|
9.97
|
%
|
$
|
1,136
|
14.50
|
%
|
$
|
1,407
|
18.38
|
%
|
||||||||||||
1-4 family real estate
|
378
|
4.82
|
%
|
433
|
5.53
|
%
|
431
|
5.63
|
%
|
|||||||||||||||
Commercial real estate - other
|
3,025
|
38.55
|
%
|
2,035
|
25.98
|
%
|
1,865
|
24.37
|
%
|
|||||||||||||||
Commercial & industrial
|
2,887
|
36.80
|
%
|
3,231
|
41.26
|
%
|
2,779
|
36.31
|
%
|
|||||||||||||||
Agricultural
|
642
|
8.18
|
%
|
818
|
10.44
|
%
|
1,015
|
13.26
|
%
|
|||||||||||||||
Consumer
|
132
|
1.68
|
%
|
179
|
2.29
|
%
|
157
|
2.05
|
%
|
|||||||||||||||
Total
|
$
|
7,846
|
100.0
|
%
|
$
|
7,832
|
100.0
|
%
|
$
|
7,654
|
100.0
|
%
|
As of
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Nonaccrual loans
|
$
|
1,809
|
$
|
2,615
|
$
|
1,217
|
||||||
Troubled debt restructurings
|
912
|
-
|
675
|
|||||||||
Accruing loans 90 or more days past due
|
612
|
-
|
—
|
|||||||||
Total nonperforming loans
|
3,333
|
2,615
|
1,892
|
|||||||||
Other real estate owned
|
—
|
110
|
100
|
|||||||||
Total nonperforming assets
|
$
|
3,333
|
$
|
2,725
|
$
|
1,992
|
||||||
Ratio of nonperforming loans to total loans
|
0.47
|
%
|
0.44
|
%
|
0.34
|
%
|
||||||
Ratio of nonperforming assets to total assets
|
0.38
|
%
|
0.35
|
%
|
0.28
|
%
|
As of December 31, 2019
|
||||||||||||||||||||||||||||
Loans
30-59 days
past due
|
Loans
60-89 days
past due
|
Loans
90+ days
past due
|
Total Loans
90+ days and
accruing
|
Total past
due
Loans
|
Current
Loans
|
Gross
Loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
70,628
|
$
|
70,628
|
||||||||||||||
1-4 family real estate
|
—
|
—
|
—
|
—
|
—
|
34,160
|
34,160
|
|||||||||||||||||||||
Commercial real estate - other
|
—
|
—
|
—
|
—
|
—
|
273,278
|
273,278
|
|||||||||||||||||||||
Commercial & industrial
|
—
|
—
|
14
|
14
|
14
|
260,748
|
260,762
|
|||||||||||||||||||||
Agricultural
|
—
|
—
|
598
|
598
|
598
|
57,347
|
57,945
|
|||||||||||||||||||||
Consumer
|
90
|
—
|
—
|
—
|
90
|
11,805
|
11,895
|
|||||||||||||||||||||
Total
|
$
|
90
|
$
|
0
|
$
|
612
|
$
|
612
|
$
|
702
|
$
|
707,966
|
$
|
708,668
|
As of December 31, 2018
|
||||||||||||||||||||||||||||
Loans
30-59 days
past due
|
Loans
60-89 days
past due
|
Loans
90+ days
past due
|
Total Loans
90+ days and
accruing
|
Total past
due
Loans
|
Current
Loans
|
Gross
Loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
87,267
|
$
|
87,267
|
||||||||||||||
1-4 family real estate
|
8
|
-
|
-
|
-
|
8
|
33,270
|
33,278
|
|||||||||||||||||||||
Commercial real estate - other
|
-
|
-
|
-
|
-
|
-
|
156,396
|
156,396
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
5
|
-
|
-
|
5
|
248,389
|
248,394
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
62,844
|
62,844
|
|||||||||||||||||||||
Consumer
|
41
|
-
|
-
|
-
|
41
|
13,682
|
13,723
|
|||||||||||||||||||||
Total
|
$
|
49
|
$
|
5
|
$
|
0
|
$
|
0
|
$
|
54
|
$
|
601,848
|
$
|
601,902
|
As of December 31, 2017
|
||||||||||||||||||||||||||||
Loans
30-59 days
past due
|
Loans
60-89 days
past due
|
Loans
90+ days
past due
|
Total Loans
90+ days and
accruing
|
Total past
due
Loans
|
Current
Loans
|
Gross
Loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
103,787
|
$
|
103,787
|
||||||||||||||
1-4 family real estate
|
—
|
—
|
111
|
—
|
111
|
31,667
|
31,778
|
|||||||||||||||||||||
Commercial real estate - other
|
—
|
—
|
—
|
—
|
—
|
137,534
|
137,534
|
|||||||||||||||||||||
Commercial & industrial
|
2
|
—
|
—
|
—
|
2
|
204,974
|
204,976
|
|||||||||||||||||||||
Agricultural
|
—
|
—
|
—
|
—
|
—
|
74,871
|
74,871
|
|||||||||||||||||||||
Consumer
|
54
|
—
|
—
|
—
|
54
|
11,577
|
11,631
|
|||||||||||||||||||||
Total
|
$
|
56
|
$
|
—
|
$
|
111
|
$
|
—
|
$
|
167
|
$
|
564,410
|
$
|
564,577
|
As of December 31, 2019
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
70,628
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
70,628
|
||||||||||
1-4 family real estate
|
33,622
|
538
|
—
|
—
|
34,160
|
|||||||||||||||
Commercial real estate - other
|
267,437
|
—
|
—
|
5,841
|
273,278
|
|||||||||||||||
Commercial & industrial
|
241,176
|
5,312
|
11,524
|
2,750
|
260,762
|
|||||||||||||||
Agricultural
|
53,290
|
—
|
2,128
|
2,527
|
57,945
|
|||||||||||||||
Consumer
|
11,895
|
—
|
—
|
—
|
11,895
|
|||||||||||||||
Total
|
$
|
678,048
|
$
|
5,850
|
$
|
13,652
|
$
|
11,118
|
$
|
708,668
|
As of December 31, 2018
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
84,485
|
$
|
2,782
|
$
|
—
|
$
|
—
|
$
|
87,267
|
||||||||||
1-4 family real estate
|
29,942
|
3,221
|
—
|
115
|
33,278
|
|||||||||||||||
Commercial real estate - other
|
154,353
|
1,559
|
—
|
484
|
156,396
|
|||||||||||||||
Commercial & industrial
|
204,671
|
36,342
|
—
|
7,381
|
248,394
|
|||||||||||||||
Agricultural
|
57,782
|
758
|
3,207
|
1,097
|
62,844
|
|||||||||||||||
Consumer
|
13,723
|
—
|
—
|
—
|
13,723
|
|||||||||||||||
Total
|
$
|
544,956
|
$
|
44,662
|
$
|
3,207
|
$
|
9,077
|
$
|
601,902
|
As of December 31, 2017
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
103,787
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
103,787
|
||||||||||
1-4 family real estate
|
23,011
|
8,656
|
—
|
111
|
31,778
|
|||||||||||||||
Commercial real estate - other
|
127,771
|
9,088
|
—
|
675
|
137,534
|
|||||||||||||||
Commercial & industrial
|
192,035
|
7,764
|
4,146
|
1,031
|
204,976
|
|||||||||||||||
Agricultural
|
64,990
|
90
|
7,228
|
2,563
|
74,871
|
|||||||||||||||
Consumer
|
11,555
|
—
|
—
|
76
|
11,631
|
|||||||||||||||
Total
|
$
|
523,149
|
$
|
25,598
|
$
|
11,374
|
$
|
4,456
|
$
|
564,577
|
As of December 31, 2019
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate - other
|
1
|
$
|
1,809
|
$
|
1,809
|
$
|
26
|
|||||||||
Agricultural
|
2
|
912
|
912
|
-
|
||||||||||||
Total
|
3
|
$
|
2,721
|
$
|
2,721
|
$
|
26
|
As of December 31, 2018
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial & industrial
|
1
|
$
|
501
|
$
|
501
|
$
|
-
|
|||||||||
Total
|
1
|
$
|
501
|
$
|
501
|
$
|
-
|
As of December 31, 2017
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate - other
|
1
|
$
|
675
|
$
|
675
|
$
|
300
|
|||||||||
Commercial & industrial
|
1
|
861
|
861
|
-
|
||||||||||||
Total
|
2
|
$
|
1,536
|
$
|
1,536
|
$
|
300
|
As of December 31, 2019
|
As of December 31, 2018
|
As of December 31, 2017
|
||||||||||||||||||||||
Number of
Contracts
|
Amount
|
Number of
Contracts
|
Amount
|
Number of
Contracts
|
Amount
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Accrual
|
2
|
$
|
912
|
-
|
$
|
-
|
1
|
$
|
675
|
|||||||||||||||
Nonaccrual
|
1
|
1,809
|
1
|
501
|
1
|
861
|
||||||||||||||||||
Total
|
3
|
$
|
2,721
|
1
|
$
|
501
|
2
|
$
|
1,536
|
As of December 31,
|
||||||||||||||||||||||||
2019
|
2018
|
2017
|
||||||||||||||||||||||
Amount
|
Percentage
of
Total
|
Amount
|
Percentage
of
Total
|
Amount
|
Percentage
of
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Noninterest-bearing demand
|
$
|
219,221
|
29.0
|
%
|
$
|
201,159
|
29.8
|
%
|
$
|
165,911
|
26.5
|
%
|
||||||||||||
Interest-bearing:
|
||||||||||||||||||||||||
NOW deposits
|
112,420
|
14.8
|
91,896
|
13.6
|
74,870
|
12.0
|
||||||||||||||||||
Money market
|
150,554
|
19.9
|
118,150
|
17.5
|
56,671
|
9.1
|
||||||||||||||||||
Savings deposits
|
72,750
|
9.6
|
69,548
|
10.3
|
85,000
|
13.6
|
||||||||||||||||||
Time deposits (more than $100,000)
|
176,998
|
23.3
|
167,304
|
24.8
|
213,575
|
34.1
|
||||||||||||||||||
Time deposits ($100,000 or less)
|
25,540
|
3.4
|
27,846
|
4.1
|
29,804
|
4.8
|
||||||||||||||||||
Total interest-bearing
|
538,262
|
71.0
|
474,744
|
70.2
|
459,920
|
73.5
|
||||||||||||||||||
Total deposits
|
$
|
757,483
|
100.0
|
%
|
675,903
|
100.0
|
%
|
$
|
625,831
|
100.0
|
%
|
As of the Year Ended
December 31,
|
||||||||||||||||||||||||
2019
|
2018
|
2017
|
||||||||||||||||||||||
Average
Balance
|
Weighted
Average
Rate
|
Average
Balance
|
Weighted
Average
Rate
|
Average
Balance
|
Weighted
Average
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Noninterest-bearing demand
|
$
|
192,562
|
0.00
|
%
|
$
|
183,750
|
0.00
|
%
|
$
|
142,035
|
0.00
|
%
|
||||||||||||
Interest-bearing:
|
||||||||||||||||||||||||
NOW
|
95,694
|
1.83
|
71,384
|
1.56
|
134,351
|
1.02
|
||||||||||||||||||
Money market
|
132,265
|
1.83
|
90,230
|
1.65
|
29,961
|
0.90
|
||||||||||||||||||
Savings
|
67,617
|
1.30
|
79,267
|
1.23
|
78,477
|
0.73
|
||||||||||||||||||
Time
|
208,375
|
2.14
|
220,023
|
1.55
|
200,513
|
1.14
|
||||||||||||||||||
Total interest-bearing
|
503,951
|
1.89
|
460,904
|
1.52
|
443,302
|
1.02
|
||||||||||||||||||
Total deposits
|
$
|
696,513
|
1.37
|
%
|
$
|
644,654
|
1.08
|
%
|
$
|
585,337
|
0.77
|
%
|
As of December 31, 2019 Maturity Within:
|
||||||||||||||||||||
(Dollars in thousands)
|
Three Months
|
Three to
Six Months
|
Six to
12 Months
|
After
12 Months
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits ($100,000 or less)
|
$
|
6,998
|
$
|
5,024
|
$
|
8,387
|
$
|
8,231
|
$
|
28,640
|
||||||||||
Time deposits (more than $100,000)
|
52,048
|
34,126
|
49,700
|
38,024
|
173,898
|
|||||||||||||||
Total time deposits
|
$
|
59,046
|
$
|
39,150
|
$
|
58,087
|
$
|
46,255
|
$
|
202,538
|
As of December 31, 2018 Maturity Within:
|
||||||||||||||||||||
Three Months
|
Three to
Six Months
|
Six to
12 Months
|
After
12 Months
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits ($100,000 or less)
|
$
|
6,229
|
$
|
4,791
|
$
|
10,342
|
$
|
6,484
|
$
|
27,846
|
||||||||||
Time deposits (more than $100,000)
|
33,308
|
41,193
|
71,827
|
20,976
|
167,304
|
|||||||||||||||
Total time deposits
|
$
|
39,537
|
$
|
45,984
|
$
|
82,169
|
$
|
27,460
|
$
|
195,150
|
As of December 31, 2017 Maturity Within:
|
||||||||||||||||||||
(Dollars in thousands)
|
Three Months
|
Three to
Six Months
|
Six to
12 Months
|
After
12 Months
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits ($100,000 or less)
|
$
|
7,615
|
$
|
4,710
|
$
|
8,243
|
$
|
9,236
|
$
|
29,804
|
||||||||||
Time deposits (more than $100,000)
|
25,436
|
46,661
|
94,473
|
47,005
|
213,575
|
|||||||||||||||
Total time deposits
|
$
|
33,051
|
$
|
51,371
|
$
|
102,716
|
$
|
56,241
|
$
|
243,379
|
Actual
|
With
Capital Conservation
Buffer
|
Minimum
To be Considered
“Well-Capitalized”
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of December 31, 2019:
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
$
|
105,137
|
15.25
|
%
|
$
|
72,393
|
10.500
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
106,148
|
15.42
|
72,287
|
10.500
|
68,845
|
10.00
|
||||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
97,291
|
14.11
|
58,604
|
8.500
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
98,302
|
14.28
|
58,518
|
8.500
|
55,076
|
8.00
|
||||||||||||||||||
CET 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
97,291
|
14.11
|
48,262
|
7.000
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
98,302
|
14.28
|
48,192
|
7.000
|
44,749
|
6.50
|
||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||||||
Company
|
97,291
|
11.53
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
98,302
|
11.65
|
N/A
|
N/A
|
42,241
|
5.00
|
Actual
|
With
Capital Conservation
Buffer
|
Minimum
To be Considered
“Well-Capitalized”
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of December 31, 2018:
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
$
|
92,693
|
15.86
|
%
|
$
|
57,709
|
9.875
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
93,704
|
16.03
|
57,709
|
9.875
|
58,439
|
10.00
|
||||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
85,382
|
14.61
|
46,021
|
7.875
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
86,393
|
14.78
|
46,021
|
7.875
|
46,751
|
8.00
|
||||||||||||||||||
CET 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
85,382
|
14.61
|
37,255
|
6.375
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
86,393
|
14.78
|
37,255
|
6.375
|
37,985
|
6.50
|
||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||||||
Company
|
85,382
|
11.13
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
86,393
|
11.26
|
N/A
|
N/A
|
38,355
|
5.00
|
Actual
|
With
Capital Conservation
Buffer
|
Minimum
To be Considered
“Well-Capitalized”
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of December 31, 2017:
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
$
|
74,140
|
12.86
|
%
|
$
|
53,331
|
9.250
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
79,740
|
13.83
|
53,330
|
9.250
|
57,654
|
10.00
|
||||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
66,928
|
11.61
|
41,800
|
7.250
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
75,528
|
12.58
|
41,799
|
7.250
|
46,123
|
8.00
|
||||||||||||||||||
CET 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
66,928
|
11.61
|
33,152
|
5.750
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
75,528
|
12.58
|
33,151
|
5.750
|
37,475
|
6.50
|
||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||||||
Company
|
66,928
|
9.72
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
75,528
|
10.53
|
N/A
|
N/A
|
36,436
|
5.00
|
Payments Due as of December 31, 2019
|
||||||||||||||||||||
Within
One Year
|
One to
Three Years
|
Three to
Five Years
|
After
Five Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Deposits without a stated maturity
|
$
|
554,945
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
554,945
|
||||||||||
Time deposits
|
156,283
|
44,310
|
1,945
|
-
|
202,538
|
|||||||||||||||
Borrowings
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Operating lease commitments
|
623
|
845
|
49
|
-
|
1,517
|
|||||||||||||||
Total contractual obligations
|
$
|
711,851
|
$
|
45,155
|
$
|
1,994
|
$
|
-
|
$
|
759,000
|
As of December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Commitments to extend credit
|
$
|
191,459
|
$
|
135,015
|
$
|
145,888
|
||||||
Standby letters of credit
|
3,338
|
1,078
|
1,544
|
|||||||||
Total
|
$
|
194,797
|
$
|
136,093
|
$
|
147,432
|
As of December 31,
|
As of December 31,
|
||||||||||||||||
2019
|
2018
|
||||||||||||||||
Change in Interest Rates (Basis Points)
|
Percent
Change in
Net Interest
Income
|
Percent
Change in
Fair Value of
Equity
|
Percent
Change in
Net Interest
Income
|
Percent
Change in
Fair Value of
Equity
|
|||||||||||||
+400
|
69.65
|
%
|
21.41
|
%
|
48.28
|
%
|
22.97
|
%
|
|||||||||
+300
|
51.57
|
19.84
|
35.66
|
21.50
|
|||||||||||||
+200
|
33.39
|
18.15
|
22.99
|
19.95
|
|||||||||||||
+100
|
14.91
|
16.34
|
10.17
|
18.29
|
|||||||||||||
Base |
(3.81
|
)
|
14.39
|
(3.07
|
)
|
16.50
|
|||||||||||
-100
|
(13.68
|
)
|
12.34
|
(15.30
|
)
|
14.58
|
Page
|
|
Report of Independent Registered Public Accounting Firm
|
60 |
Consolidated Financial Statements:
|
|
Consolidated Balance Sheets at December 31, 2019 and 2018
|
61 |
Consolidated Statements of Income for each of the three years in the period ended December 31, 2019
|
62 |
Consolidated Statements of Shareholders’ Equity for each of the three years in the period ended December 31, 2019
|
63 |
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2019
|
64 |
Notes to Consolidated Financial Statements
|
65 |
Assets
|
December 31,
2019
|
December 31,
2018
|
||||||
|
||||||||
Cash and due from banks
|
$
|
117,128
|
$
|
128,090
|
||||
Interest-bearing time deposits in other banks
|
30,147
|
31,759
|
||||||
Loans, net of allowance for loan losses of $7,846 and
|
||||||||
$7,832 at December 31, 2019 and 2018, respectively
|
699,458
|
592,078
|
||||||
Loans held for sale
|
1,031
|
512
|
||||||
Premises and equipment, net
|
9,624
|
7,753
|
||||||
Nonmarketable equity securities
|
1,100
|
1,055
|
||||||
Foreclosed assets held for sale
|
-
|
110
|
||||||
Goodwill and intangibles
|
1,789
|
1,995
|
||||||
Interest receivable and other assets
|
6,115
|
7,159
|
||||||
|
||||||||
Total assets
|
$
|
866,392
|
$
|
770,511
|
||||
|
||||||||
Liabilities and Shareholders’ Equity
|
||||||||
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$
|
219,221
|
$
|
201,159
|
||||
Interest-bearing
|
538,262
|
474,744
|
||||||
|
||||||||
Total deposits
|
757,483
|
675,903
|
||||||
|
||||||||
Income taxes payable
|
357
|
1,913
|
||||||
Interest payable and other liabilities
|
8,426
|
4,229
|
||||||
|
||||||||
Total liabilities
|
766,266
|
682,045
|
||||||
|
||||||||
Shareholders’ equity
|
||||||||
Preferred stock, par value $0.01 per share, 1,000,000
|
||||||||
shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Common stock, non-voting, par value $0.01 per share,
|
||||||||
20,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Common stock, $0.01 par value; 50,000,000 shares authorized; shares
|
||||||||
issued and outstanding: 10,057,506 and 10,187,500, respectively
|
101
|
102
|
||||||
Additional paid-in capital
|
92,391
|
80,275
|
||||||
Retained earnings
|
7,634
|
8,089
|
||||||
|
||||||||
Total shareholders’ equity
|
100,126
|
88,466
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
866,392
|
$
|
770,511
|
|
For the Years Ended December 31,
|
|||||||||||
|
2019
|
2018
|
2017
|
|||||||||
Interest Income
|
||||||||||||
Loans, including fees
|
$
|
48,200
|
$
|
44,279
|
$
|
41,450
|
||||||
Interest-bearing time deposits in other banks
|
1,709
|
588
|
592
|
|||||||||
Interest-bearing deposits in other banks
|
1,800
|
1,933
|
828
|
|||||||||
|
||||||||||||
Total interest income
|
51,709
|
46,800
|
42,870
|
|||||||||
|
||||||||||||
Interest Expense
|
||||||||||||
Deposits
|
9,516
|
6,994
|
4,502
|
|||||||||
Other borrowings
|
-
|
175
|
237
|
|||||||||
|
||||||||||||
Total interest expense
|
9,516
|
7,169
|
4,739
|
|||||||||
|
||||||||||||
Net Interest Income
|
42,193
|
39,631
|
38,131
|
|||||||||
|
||||||||||||
Provision for Loan Losses
|
-
|
200
|
1,246
|
|||||||||
|
||||||||||||
Net Interest Income After Provision for Loan Losses
|
42,193
|
39,431
|
36,885
|
|||||||||
|
||||||||||||
Noninterest Income
|
||||||||||||
Secondary market income
|
164
|
212
|
183
|
|||||||||
Service charges on deposit accounts
|
392
|
347
|
336
|
|||||||||
Other
|
752
|
772
|
916
|
|||||||||
|
||||||||||||
Total noninterest income
|
1,308
|
1,331
|
1,435
|
|||||||||
|
||||||||||||
Noninterest Expense
|
||||||||||||
Salaries and employee benefits
|
21,265
|
8,113
|
7,611
|
|||||||||
Furniture and equipment
|
829
|
684
|
831
|
|||||||||
Occupancy
|
1,677
|
1,310
|
1,049
|
|||||||||
Data and item processing
|
1,078
|
966
|
891
|
|||||||||
Accounting, marketing and legal fees
|
757
|
305
|
284
|
|||||||||
Regulatory assessments
|
126
|
542
|
450
|
|||||||||
Advertising and public relations
|
588
|
553
|
433
|
|||||||||
Travel, lodging and entertainment
|
368
|
699
|
1,041
|
|||||||||
Other
|
1,744
|
1,793
|
1,941
|
|||||||||
|
||||||||||||
Total noninterest expense
|
28,432
|
14,965
|
14,531
|
|||||||||
|
||||||||||||
Income Before Taxes
|
15,069
|
25,797
|
23,789
|
|||||||||
Income tax expense
|
6,844
|
797
|
-
|
|||||||||
Net Income
|
$
|
8,225
|
$
|
25,000
|
$
|
23,789
|
||||||
|
||||||||||||
Earnings per common share - basic
|
$
|
0.81
|
$
|
3.08
|
$
|
3.26
|
||||||
Earnings per common share - diluted
|
0.81
|
3.03
|
3.26
|
|||||||||
Weighted average common shares outstanding - basic
|
10,145,032
|
8,105,856
|
7,287,500
|
|||||||||
Weighted average common shares outstanding - diluted
|
10,147,311
|
8,237,638
|
7,287,500
|
|
Year Ended December 31,
|
|||||||||||
|
2019
|
2018
|
2017
|
|||||||||
Common Stock (Shares)
|
||||||||||||
Balance at beginning of period
|
10,187,500
|
7,287,500
|
7,287,500
|
|||||||||
Common stock issued
|
-
|
2,900,000
|
-
|
|||||||||
Shares issued for restricted stock units
|
19,431
|
-
|
-
|
|||||||||
Shares acquired and canceled
|
(149,425
|
)
|
-
|
-
|
||||||||
Balance at end of period
|
10,057,506
|
10,187,500
|
7,287,500
|
|||||||||
|
||||||||||||
Common Stock (Amount)
|
||||||||||||
Balance at beginning of period
|
$
|
102
|
$
|
73
|
$
|
73
|
||||||
Shares issued, net of offering costs
|
-
|
29
|
-
|
|||||||||
Shares acquired and canceled
|
(1
|
)
|
-
|
-
|
||||||||
Balance at end of period
|
$
|
101
|
$
|
102
|
$
|
73
|
||||||
|
||||||||||||
Additional Paid-in Capital
|
||||||||||||
Balance at beginning of period
|
$
|
80,275
|
$
|
6,987
|
$
|
6,987
|
||||||
Capital contribution
|
-
|
137
|
-
|
|||||||||
Shares issued, net of offering costs
|
-
|
50,125
|
-
|
|||||||||
Reclassification of undistributed S Corporation earnings
|
-
|
22,872
|
-
|
|||||||||
Stock-based compensation expense
|
12,116
|
154
|
-
|
|||||||||
Balance at end of period
|
$
|
92,391
|
$
|
80,275
|
$
|
6,987
|
||||||
|
||||||||||||
Retained Earnings
|
||||||||||||
Balance at beginning of period
|
$
|
8,089
|
$
|
62,116
|
$
|
48,076
|
||||||
Net income
|
8,225
|
25,000
|
23,789
|
|||||||||
Reclassification of undistributed S Corporation earnings
|
-
|
(22,872
|
)
|
-
|
||||||||
Common stock acquired and canceled
|
(2,645
|
)
|
-
|
-
|
||||||||
Cash dividends declared ($0.60, $7.71, $1.34 per share)
|
(6,035
|
)
|
(56,155
|
)
|
(9,749
|
)
|
||||||
Balance at end of period
|
$
|
7,634
|
$
|
8,089
|
$
|
62,116
|
||||||
|
||||||||||||
Total shareholders' equity
|
$
|
100,126
|
$
|
88,466
|
$
|
69,176
|
|
For the Years Ended December 31,
|
|||||||||||
|
2019
|
2018
|
2017
|
|||||||||
|
||||||||||||
Operating Activities
|
||||||||||||
Net income
|
$
|
8,225
|
$
|
25,000
|
$
|
23,789
|
||||||
Items not requiring (providing) cash
|
||||||||||||
Depreciation and amortization
|
849
|
1,097
|
1,088
|
|||||||||
Provision for loan losses
|
-
|
200
|
1,246
|
|||||||||
Net increase on other real estate owned
|
-
|
(10
|
)
|
-
|
||||||||
Gain on sales of loans
|
(164
|
)
|
(212
|
)
|
(183
|
)
|
||||||
Stock-based compensation expense
|
12,116
|
154
|
-
|
|||||||||
Loss on sale of premises and equipment
|
183
|
-
|
-
|
|||||||||
Cash receipts from the sale of loans originated for sale
|
7,697
|
8,185
|
9,060
|
|||||||||
Cash disbursements for loans originated for sale
|
(8,052
|
)
|
(8,097
|
)
|
(9,108
|
)
|
||||||
(Gain) loss on sale of other real estate owned
|
(330
|
)
|
3
|
92
|
||||||||
Deferred income tax benefit
|
(20
|
)
|
(1,069
|
)
|
-
|
|||||||
Changes in
|
||||||||||||
Interest receivable and other assets
|
1,064
|
(1,405
|
)
|
(415
|
)
|
|||||||
Interest payable and other liabilities
|
(2,388
|
)
|
3,155
|
308
|
||||||||
|
||||||||||||
Net cash provided by operating activities
|
19,180
|
27,001
|
25,877
|
|||||||||
|
||||||||||||
Investing Activities
|
||||||||||||
Maturities of interest-bearing time deposits in other banks
|
18,583
|
3,884
|
1,743
|
|||||||||
Purchases of interest-bearing time deposits in other banks
|
(16,971
|
)
|
(5,475
|
)
|
(2,490
|
)
|
||||||
Net change in loans
|
(107,458
|
)
|
(36,981
|
)
|
(61,668
|
)
|
||||||
Purchases of premises and equipment
|
(3,100
|
)
|
(378
|
)
|
(3,969
|
)
|
||||||
Proceeds from sale of premises and equipment
|
403
|
1,336
|
-
|
|||||||||
Purchase of nonmarketable equity securities
|
(45
|
)
|
(6
|
)
|
(6
|
)
|
||||||
Proceeds from sale of foreclosed assets
|
518
|
47
|
597
|
|||||||||
|
||||||||||||
Net cash used in investing activities
|
(108,070
|
)
|
(37,573
|
)
|
(65,793
|
)
|
||||||
|
||||||||||||
Financing Activities
|
||||||||||||
Net change in deposits
|
81,580
|
50,072
|
76,275
|
|||||||||
Repayment of borrowed funds
|
-
|
(5,600
|
)
|
(800
|
)
|
|||||||
Cash distributions
|
(1,006
|
)
|
(56,155
|
)
|
(9,749
|
)
|
||||||
Capital injection
|
-
|
137
|
-
|
|||||||||
Common stock acquired and canceled
|
(2,646
|
)
|
-
|
-
|
||||||||
Net change in common stock
|
-
|
50,154
|
-
|
|||||||||
|
||||||||||||
Net cash provided by financing activities
|
77,928
|
38,608
|
65,726
|
|||||||||
|
||||||||||||
(Decrease) Increase in Cash and Due from Banks
|
(10,962
|
)
|
28,036
|
25,810
|
||||||||
|
||||||||||||
Cash and Due from Banks, Beginning of Year
|
128,090
|
100,054
|
74,244
|
|||||||||
|
||||||||||||
Cash and Due from Banks, End of Year
|
$
|
117,128
|
$
|
128,090
|
$
|
100,054
|
||||||
|
||||||||||||
Supplemental Disclosure of Cash Flows Information
|
||||||||||||
Interest paid
|
$
|
9,342
|
$
|
7,304
|
$
|
4,739
|
||||||
Income taxes paid
|
$
|
6,779
|
$
|
-
|
$
|
-
|
||||||
Dividends declared and not paid
|
$
|
5,029
|
$
|
-
|
$
|
-
|
||||||
Non-cash stock contribution
|
$
|
11,627
|
$
|
-
|
$
|
-
|
||||||
Foreclosed assets acquired in settlement of loans
|
$
|
78
|
$
|
50
|
$
|
684
|
Note 1:
|
Nature of Operations and Summary of Significant Accounting Policies
|
Note 2: |
Change in Capital Structure
|
Note 3: |
Restriction on Cash and Due from Banks
|
Note 4: |
Earnings Per Share
|
As of and for the Years ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||
Numerator
|
||||||||||||
Net income
|
$
|
8,225
|
$
|
25,000
|
$
|
23,789
|
||||||
Denominator
|
||||||||||||
Denominator for basic earnings per common share
|
10,145,032
|
8,105,856
|
7,287,500
|
|||||||||
Dilutive effect of stock compensation (1)
|
2,279
|
131,782
|
-
|
|||||||||
Denominator for diluted earnings per share
|
10,147,311
|
8,237,638
|
7,287,500
|
|||||||||
Earnings per common share
|
||||||||||||
Basic
|
$
|
0.81
|
$
|
3.08
|
$
|
3.26
|
||||||
Diluted
|
$
|
0.81
|
$
|
3.03
|
$
|
3.26
|
Note 5: |
Loans and Allowance for Loan Losses
|
December 31,
2019
|
December 31,
2018
|
|||||||
Construction & development
|
$
|
70,628
|
$
|
87,267
|
||||
1-4 family commercial
|
34,160
|
33,278
|
||||||
Commercial real estate - other
|
273,278
|
156,396
|
||||||
Total commercial real estate
|
378,066
|
276,941
|
||||||
Commercial & industrial
|
260,762
|
248,394
|
||||||
Agricultural
|
57,945
|
62,844
|
||||||
Consumer
|
11,895
|
13,723
|
||||||
Gross loans
|
708,668
|
601,902
|
||||||
Less allowance for loan losses
|
(7,846
|
)
|
(7,832
|
)
|
||||
Less deferred loan fees
|
(1,364
|
)
|
(1,992
|
)
|
||||
Net loans
|
$
|
699,458
|
$
|
592,078
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2019
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,136
|
$
|
433
|
$
|
2,035
|
$
|
3,231
|
$
|
818
|
$
|
179
|
$
|
7,832
|
||||||||||||||
Charge-offs
|
-
|
(2
|
)
|
-
|
(4
|
)
|
(11
|
)
|
(1
|
)
|
(18
|
)
|
||||||||||||||||
Recoveries
|
-
|
5
|
-
|
24
|
3
|
-
|
32
|
|||||||||||||||||||||
Net charge-offs
|
-
|
3
|
-
|
20
|
(8
|
)
|
(1
|
)
|
14
|
|||||||||||||||||||
Provision (credit) for loan losses
|
(354
|
)
|
(58
|
)
|
990
|
(364
|
)
|
(168
|
)
|
(46
|
)
|
-
|
||||||||||||||||
Balance, end of period
|
$
|
782
|
$
|
378
|
$
|
3,025
|
$
|
2,887
|
$
|
642
|
$
|
132
|
$
|
7,846
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,407
|
$
|
431
|
$
|
1,865
|
$
|
2,779
|
$
|
1,015
|
$
|
157
|
$
|
7,654
|
||||||||||||||
Charge-offs
|
-
|
(25
|
)
|
-
|
(73
|
)
|
-
|
-
|
(98
|
)
|
||||||||||||||||||
Recoveries
|
-
|
3
|
-
|
71
|
1
|
1
|
76
|
|||||||||||||||||||||
Net charge-offs
|
-
|
(22
|
)
|
-
|
(2
|
)
|
1
|
1
|
(22
|
)
|
||||||||||||||||||
Provision (credit) for loan losses
|
(271
|
)
|
24
|
170
|
454
|
(198
|
)
|
21
|
200
|
|||||||||||||||||||
Balance, end of period
|
$
|
1,136
|
$
|
433
|
$
|
2,035
|
$
|
3,231
|
$
|
818
|
$
|
179
|
$
|
7,832
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural |
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,565
|
$
|
287
|
$
|
1,193
|
$
|
2,523
|
$
|
1,074
|
$
|
231
|
$
|
6,873
|
||||||||||||||
Charge-offs
|
-
|
-
|
(224
|
)
|
(242
|
)
|
-
|
(46
|
)
|
(512
|
)
|
|||||||||||||||||
Recoveries
|
-
|
23
|
6
|
6
|
-
|
12
|
47
|
|||||||||||||||||||||
Net charge-offs
|
-
|
23
|
(218
|
)
|
(236
|
)
|
-
|
(34
|
)
|
(465
|
)
|
|||||||||||||||||
Provision (credit) for loan losses
|
(158
|
)
|
121
|
890
|
492
|
(59
|
)
|
(40
|
)
|
1,246
|
||||||||||||||||||
Balance, end of period
|
$
|
1,407
|
$
|
431
|
$
|
1,865
|
$
|
2,779
|
$
|
1,015
|
$
|
157
|
$
|
7,654
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2019
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
$
|
-
|
$
|
26
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
26
|
||||||||||||||
Collectively evaluated for impairment
|
782
|
378
|
2,999
|
2,887
|
642
|
132
|
7,820
|
|||||||||||||||||||||
Total
|
$
|
782
|
$
|
378
|
$
|
3,025
|
$
|
2,887
|
$
|
642
|
$
|
132
|
$
|
7,846
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
$
|
-
|
$
|
5,841
|
$
|
2,750
|
$
|
2,527
|
$
|
-
|
$
|
11,118
|
||||||||||||||
Collectively evaluated for impairment
|
70,628
|
34,160
|
267,437
|
258,012
|
55,418
|
11,895
|
697,550
|
|||||||||||||||||||||
Total
|
$
|
70,628
|
$
|
34,160
|
$
|
273,278
|
$
|
260,762
|
$
|
57,945
|
$
|
11,895
|
$
|
708,668
|
||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
$
|
-
|
$
|
32
|
$
|
14
|
$
|
-
|
$
|
-
|
$
|
46
|
||||||||||||||
Collectively evaluated for impairment
|
1,136
|
433
|
2,003
|
3,217
|
818
|
179
|
7,786
|
|||||||||||||||||||||
Total
|
$
|
1,136
|
$
|
433
|
$
|
2,035
|
$
|
3,231
|
$
|
818
|
$
|
179
|
$
|
7,832
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
$
|
115
|
$
|
484
|
$
|
7,381
|
$
|
1,097
|
$
|
-
|
$
|
9,077
|
||||||||||||||
Collectively evaluated for impairment
|
87,267
|
33,163
|
155,912
|
241,013
|
61,747
|
13,723
|
592,825
|
|||||||||||||||||||||
Total
|
$
|
87,267
|
$
|
33,278
|
$
|
156,396
|
$
|
248,394
|
$
|
62,844
|
$
|
13,723
|
$
|
601,902
|
• |
Grade 1 (Pass) – These loans generally conform to Bank policies, and are characterized by policy conforming advance rates on collateral, and have
well-defined repayment sources. In addition, these credits are extended to Borrowers and/or Guarantors with a strong balance sheet and either substantial liquidity or a reliable income history.
|
• |
Grade 2 (Watch) – These loans are still considered “Pass” credits; however, various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in loan
documentation, or other risk issues determined by the Lending Officer, Commercial Loan Committee (CLC), or Credit Quality Committee (CQC) warrant a heightened sense and frequency of monitoring.
|
• |
Grade 3 (Special Mention) – These loans must have observable weaknesses or evidence imprudent handling or structural issues. The weaknesses require close attention and the remediation of those
weaknesses is necessary. No risk of probable loss exists. Credits in this category are expected to quickly migrate to a “2” or a “4” as this is viewed as a transitory loan grade.
|
• |
Grade 4 (Substandard) – These loans are not adequately protected by the sound worth and debt service capacity of the Borrower, but may be well secured. They have defined weaknesses relative to
cash flow, collateral, financial condition, or other factors that might jeopardize repayment of all of the principal and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not remediated.
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2019
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
70,628
|
$
|
33,622
|
$
|
267,437
|
$
|
241,176
|
$
|
53,290
|
$
|
11,895
|
$
|
678,048
|
||||||||||||||
2 (Watch)
|
-
|
538
|
-
|
5,312
|
-
|
-
|
5,850
|
|||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
-
|
11,524
|
2,128
|
-
|
13,652
|
|||||||||||||||||||||
4 (Substandard)
|
-
|
-
|
5,841
|
2,750
|
2,527
|
-
|
11,118
|
|||||||||||||||||||||
Total
|
$
|
70,628
|
$
|
34,160
|
$
|
273,278
|
$
|
260,762
|
$
|
57,945
|
$
|
11,895
|
$
|
708,668
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
84,485
|
$
|
29,942
|
$
|
154,353
|
$
|
204,671
|
$
|
57,782
|
$
|
13,723
|
$
|
544,956
|
||||||||||||||
2 (Watch)
|
2,782
|
3,221
|
1,559
|
36,342
|
758
|
-
|
44,662
|
|||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
-
|
-
|
3,207
|
-
|
3,207
|
|||||||||||||||||||||
4 (Substandard)
|
-
|
115
|
484
|
7,381
|
1,097
|
-
|
9,077
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total
|
$
|
87,267
|
$
|
33,278
|
$
|
156,396
|
$
|
248,394
|
$
|
62,844
|
$
|
13,723
|
$
|
601,902
|
Past Due
|
||||||||||||||||||||||||||||
30–59
Days
|
60–89
Days
|
Greater than
90 Days
|
Total
|
Current
|
Total
Loans
|
Total Loans
> 90 Days &
Accruing
|
||||||||||||||||||||||
December 31, 2019
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
70,628
|
$
|
70,628
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
-
|
-
|
-
|
-
|
34,160
|
34,160
|
-
|
|||||||||||||||||||||
Commercial Real Estate - other
|
-
|
-
|
-
|
-
|
273,278
|
273,278
|
-
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
-
|
14
|
14
|
260,748
|
260,762
|
14
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
598
|
598
|
57,347
|
57,945
|
598
|
|||||||||||||||||||||
Consumer
|
90
|
-
|
-
|
90
|
11,805
|
11,895
|
-
|
|||||||||||||||||||||
Total
|
$
|
90
|
$
|
-
|
$
|
612
|
$
|
702
|
$
|
707,966
|
$
|
708,668
|
$
|
612
|
||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
87,267
|
$
|
87,267
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
8
|
-
|
-
|
8
|
33,270
|
33,278
|
-
|
|||||||||||||||||||||
Commercial Real Estate - other
|
-
|
-
|
-
|
-
|
156,396
|
156,396
|
-
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
5
|
-
|
5
|
248,389
|
248,394
|
-
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
62,844
|
62,844
|
-
|
|||||||||||||||||||||
Consumer
|
41
|
-
|
-
|
41
|
13,682
|
13,723
|
-
|
|||||||||||||||||||||
Total
|
$
|
49
|
$
|
5
|
$
|
-
|
$
|
54
|
$
|
601,848
|
$
|
601,902
|
$
|
-
|
Unpaid
Principal
Balance
|
Recorded
Investment
with No
Allowance
|
Recorded
Investment
with an
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||||||||
December 31, 2019
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
-
|
-
|
-
|
-
|
-
|
208
|
-
|
|||||||||||||||||||||
Commercial Real Estate - other
|
5,841
|
4,032
|
1,809
|
5,841
|
26
|
2,557
|
440
|
|||||||||||||||||||||
Commercial & industrial
|
2,750
|
2,750
|
-
|
2,750
|
-
|
5,495
|
281
|
|||||||||||||||||||||
Agricultural
|
2,527
|
1,744
|
-
|
1,744
|
-
|
2,238
|
174
|
|||||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
98
|
-
|
|||||||||||||||||||||
Total
|
$
|
11,118
|
$
|
8,526
|
$
|
1,809
|
$
|
10,335
|
$
|
26
|
$
|
10,596
|
$
|
895
|
||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
115
|
115
|
-
|
115
|
-
|
82
|
4
|
|||||||||||||||||||||
Commercial Real Estate - other
|
1,990
|
1,506
|
484
|
1,990
|
32
|
440
|
148
|
|||||||||||||||||||||
Commercial & industrial
|
7,614
|
7,359
|
22
|
7,381
|
14
|
7,049
|
560
|
|||||||||||||||||||||
Agricultural
|
1,097
|
1,097
|
-
|
1,097
|
-
|
1,313
|
82
|
|||||||||||||||||||||
Consumer
|
5
|
-
|
-
|
-
|
-
|
28
|
1
|
|||||||||||||||||||||
Total
|
$
|
10,821
|
$
|
10,077
|
$
|
506
|
$
|
10,583
|
$
|
46
|
$
|
8,912
|
$
|
795
|
As of
December 31,
|
||||||||
|
2019
|
2018
|
||||||
Nonaccrual loans
|
$
|
1,809
|
$
|
2,615
|
||||
Troubled-debt restructurings (1)
|
912
|
-
|
||||||
Accruing loans 90 or more days past due
|
612
|
-
|
||||||
Total nonperforming loans
|
$
|
3,333
|
$
|
2,615
|
Note 6: |
Premises and Equipment
|
December 31,
2019
|
December 31,
2018
|
|||||||
Land, buildings and improvements
|
$
|
9,942
|
$
|
8,414
|
||||
Furniture and equipment
|
2,117
|
1,654
|
||||||
Automobiles
|
760
|
722
|
||||||
12,819
|
10,790
|
|||||||
Less accumulated depreciation
|
(3,195
|
)
|
(3,037
|
)
|
||||
Net premises and equipment
|
$
|
9,624
|
$
|
7,753
|
Note 7: |
Intangible Assets
|
December 31,
2019
|
December 31,
2018
|
|||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
|||||||||||||
Core deposit intangible
|
$
|
2,061
|
$
|
(1,283
|
)
|
$
|
2,061
|
$
|
(1,077
|
)
|
2020
|
$
|
206
|
||
2021
|
206
|
|||
2022
|
206
|
|||
2023
|
160
|
|||
$
|
778
|
Note 8: |
Interest-Bearing Deposits
|
2020
|
$
|
156,283
|
||
2021
|
34,775
|
|||
2022
|
9,535
|
|||
2023
|
1,945
|
|||
$
|
202,538
|
Note 9: |
Income Taxes
|
Year Ended December 31,
|
||||||||
2019
|
2018
|
|||||||
Federal:
|
||||||||
Current
|
$
|
5,516
|
$
|
1,563
|
||||
Deferred
|
-
|
(1,036
|
)
|
|||||
Total federal tax provision
|
$
|
5,516
|
$
|
527
|
||||
State:
|
||||||||
Current
|
$
|
1,308
|
$
|
303
|
||||
Deferred
|
20
|
(33
|
)
|
|||||
Total state tax provision
|
$
|
1,328
|
$
|
270
|
||||
Total income tax provision
|
$
|
6,844
|
$
|
797
|
Year Ended December 31,
|
||||||||
2019
|
2018
|
|||||||
Statutory U.S. Federal Income Tax
|
$
|
3,160
|
$
|
5,417
|
||||
Increase (decrease) resulting from:
|
||||||||
State Taxes
|
1,048
|
213
|
||||||
Benefit of S corporation status
|
-
|
(3,933
|
)
|
|||||
Permanent Differences
|
2,327
|
-
|
||||||
Conversion as of September 24, 2018 to C corporation
|
-
|
(863
|
)
|
|||||
Other
|
309
|
|
(37
|
)
|
||||
Provision for income taxes
|
$
|
6,844
|
$
|
797
|
|
Year Ended December 31,
|
|||||||
|
2019
|
2018
|
||||||
Deferred tax assets:
|
||||||||
Allowance for loan losses
|
$
|
1,918
|
$
|
1,942
|
||||
Non-accrual loans
|
60
|
-
|
||||||
Deferred revenue
|
165
|
-
|
||||||
Other
|
-
|
80
|
||||||
Deferred compensation
|
78
|
38
|
||||||
Total deferred tax assets
|
$
|
2,221
|
$
|
2,060
|
||||
Deferred tax liabilities:
|
||||||||
Property and equipment
|
$
|
(320
|
)
|
$
|
(268
|
)
|
||
Intangible assets
|
(202
|
)
|
(220
|
)
|
||||
Prepaid expenses
|
(122
|
)
|
(177
|
)
|
||||
Method change IRC 481(a)
|
(476
|
)
|
(254
|
)
|
||||
Other
|
(12
|
)
|
(72
|
)
|
||||
Total deferred tax liabilities
|
$
|
(1,132
|
)
|
$
|
(991
|
)
|
||
Net deferred tax assets
|
$
|
1,089
|
$
|
1,069
|
For the Year Ended December 31,
|
||||||||
2019
|
2018
|
|||||||
Balance at beginning of year
|
$
|
13
|
$
|
-
|
||||
Additions for positions taken in prior years
|
-
|
15
|
||||||
Reductions for positions taken in prior years
|
-
|
(2
|
)
|
|||||
Balance at end of year
|
$
|
13
|
$
|
13
|
Note 10: |
Letters of Credit
|
Note 11: |
Advances and Borrowings
|
Note 12: |
Shareholders’ Equity
|
Year Ended December
31,
|
||||||||
2019
|
2018
|
|||||||
Number of shares repurchased
|
-
|
-
|
||||||
Average price of shares repurchased
|
$
|
-
|
$
|
-
|
||||
Shares remaining to be repurchased
|
500,000
|
-
|
Actual
|
Minimum
Capital Requirements
|
With Capital
Conservation Buffer
|
Minimum
To Be Well Capitalized |
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||||||||
As of December 31, 2019
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets Company
|
$
|
105,137
|
15.25
|
%
|
$
|
55,157
|
8.00
|
%
|
$
|
72,393
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
106,148
|
15.42
|
%
|
$
|
55,076
|
8.00
|
%
|
$
|
72,287
|
10.50
|
%
|
$
|
68,845
|
10.00
|
%
|
||||||||||||||||
Tier I capital to risk-weighted assets Company
|
$
|
97,291
|
14.11
|
%
|
$
|
41,368
|
6.00
|
%
|
$
|
58,604
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
98,302
|
14.28
|
%
|
$
|
41,307
|
6.00
|
%
|
$
|
58,518
|
8.50
|
%
|
$
|
55,076
|
8.00
|
%
|
||||||||||||||||
CET I capital to risk-weighted assets Company
|
$
|
97,291
|
14.11
|
%
|
$
|
31,026
|
4.50
|
%
|
$
|
48,262
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
98,302
|
14.28
|
%
|
$
|
30,980
|
4.50
|
%
|
$
|
48,192
|
7.00
|
%
|
$
|
44,749
|
6.50
|
%
|
||||||||||||||||
Tier I capital to average assets Company
|
$
|
97,291
|
11.53
|
%
|
$
|
33,833
|
4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||
Bank
|
$
|
98,302
|
11.65
|
%
|
$
|
33,793
|
4.00
|
%
|
N/A
|
N/A
|
$
|
42,241
|
5.00
|
%
|
||||||||||||||||||
As of December 31, 2018
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets Company
|
$
|
92,693
|
15.86
|
%
|
$
|
46,751
|
8.00
|
%
|
$
|
57,709
|
9.875
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
93,704
|
16.03
|
%
|
$
|
46,751
|
8.00
|
%
|
$
|
57,709
|
9.875
|
%
|
$
|
58,439
|
10.00
|
%
|
||||||||||||||||
Tier I capital to risk-weighted assets Company
|
$
|
85,382
|
14.61
|
%
|
$
|
35,063
|
6.00
|
%
|
$
|
46,021
|
7.875
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
86,393
|
14.78
|
%
|
$
|
35,063
|
6.00
|
%
|
$
|
46,021
|
7.875
|
%
|
$
|
46,751
|
8.00
|
%
|
||||||||||||||||
CET I capital to risk-weighted assets Company
|
$
|
85,382
|
14.61
|
%
|
$
|
26,298
|
4.50
|
%
|
$
|
37,255
|
6.375
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
86,393
|
14.78
|
%
|
$
|
26,298
|
4.50
|
%
|
$
|
37,255
|
6.375
|
%
|
$
|
37,985
|
6.50
|
%
|
||||||||||||||||
Tier I capital to average assets Company
|
$
|
85,382
|
11.13
|
%
|
$
|
30,684
|
4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||
Bank
|
$
|
86,393
|
11.26
|
%
|
$
|
30,684
|
4.00
|
%
|
N/A
|
N/A
|
$
|
38,355
|
5.00
|
%
|
Capital Conservation Buffer
(as a % of risk-weighted assets)
|
Maximum Payout
(as a % of eligible retained income)
|
|||
Greater than 2.5%
|
No payout limitations applies
|
|||
≤2.5% and >1.875%
|
60
|
%
|
||
≤1.875% and >1.25%
|
40
|
%
|
||
≤1.25% and >0.625%
|
20
|
%
|
||
≤0.625%
|
0
|
%
|
Note 13: |
Related-Party Transactions
|
Balance
Beginning of
the Period
|
Additions
|
Collections/
Terminations
|
Balance
End of
the Period
|
|||||||||||||
Year ended December 31, 2019
|
$
|
6,897
|
$
|
2,613
|
$
|
(8,455
|
)
|
$
|
1,055
|
|||||||
Year ended December 31, 2018
|
$
|
6,684
|
$
|
7,319
|
$
|
(7,106
|
)
|
$
|
6,897
|
Note 14: |
Employee Benefits
|
Options
|
Wgtd. Avg. Exercise
Price
|
Wgtd. Avg. Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Year Ended December 31, 2019
|
||||||||||||||||
Outstanding at December 31, 2018
|
150,000
|
$
|
19.00
|
|||||||||||||
Options Granted
|
20,500
|
16.98
|
||||||||||||||
Options Exercised
|
-
|
-
|
||||||||||||||
Options Forfeited
|
(7,500
|
)
|
19.00
|
|||||||||||||
Outstanding at December 31, 2019
|
163,000
|
$
|
18.75
|
8.79
|
$
|
41
|
||||||||||
Exercisable at December 31, 2019
|
35,625
|
8.73
|
$
|
-
|
|
Year Ended
December 31, 2019
|
|||
Risk-free interest rate
|
2.48
|
%
|
||
Dividend yield
|
2.20
|
%
|
||
Stock price volatility
|
31.14
|
%
|
||
Expected term
|
7.01 yrs
|
Number of
Shares
|
Wgtd. Avg. Grant
Date Fair Value
|
|||||||
Outstanding at December 31, 2018
|
130,000
|
$
|
19.09
|
|||||
Shares granted
|
-
|
-
|
||||||
Shares settled
|
(26,000
|
) |
-
|
|||||
Shares forfeited
|
-
|
-
|
||||||
End of the period balance
|
104,000
|
$
|
19.09
|
Note 15: |
Disclosures About Fair Value of Assets and Liabilities
|
Level 1 |
Quoted prices in active markets for identical assets or liabilities
|
Level 2 |
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data
for substantially the full term of the assets or liabilities
|
Level 3 |
Unobservable inputs supported by little or no market activity and significant to the fair value of the assets or liabilities
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Decmeber 31, 2019
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
1,783
|
$
|
-
|
$
|
-
|
$
|
1,783
|
||||||||
December 31, 2018
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
506
|
$
|
-
|
$
|
-
|
$
|
506
|
||||||||
Foreclosed assets held for sale
|
$
|
110
|
$
|
-
|
$
|
-
|
$
|
110
|
Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Weighted-
Average
|
|||||||
December 31, 2019
|
|
|
||||||||
Collateral-dependent impaired loans
|
$
|
1,783
|
Appraisals from comparable properties
|
Estimated cost to sell
|
3-5
|
%
|
||||
|
|
|||||||||
December 31, 2018
|
|
|
||||||||
Collateral-dependent impaired loans
|
$
|
506
|
Appraisals from comparable properties
|
Estimated cost to sell
|
7-10
|
%
|
||||
|
|
|||||||||
Foreclosed assets held for sale
|
$
|
110
|
Appraisals from comparable properties
|
Estimated cost to sell
|
7-10
|
%
|
|
Fair Value Measurements
|
|||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
December 31, 2019
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
117,128
|
$
|
117,128
|
$
|
-
|
$
|
-
|
$
|
117,128
|
||||||||||
Interest-bearing time deposits in other banks
|
$
|
30,147
|
$
|
-
|
$
|
30,147
|
$
|
-
|
$
|
30,147
|
||||||||||
Loans, net of allowance
|
$
|
699,458
|
$
|
-
|
$
|
698,672
|
$
|
1,809
|
$
|
700,481
|
||||||||||
Mortgage loans held for sale
|
$
|
1,031
|
$
|
-
|
$
|
1,031
|
$
|
-
|
$
|
1,031
|
||||||||||
Nonmarketable equity securities
|
$
|
1,100
|
$
|
-
|
$
|
1,100
|
$
|
-
|
$
|
1,100
|
||||||||||
Interest receivable
|
$
|
3,954
|
$
|
-
|
$
|
3,954
|
$
|
-
|
$
|
3,954
|
||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
757,483
|
$
|
-
|
$
|
757,520
|
$
|
-
|
$
|
757,520
|
||||||||||
Interest payable
|
$
|
636
|
$
|
-
|
$
|
636
|
$
|
-
|
$
|
636
|
||||||||||
December 31, 2018
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
128,090
|
$
|
128,090
|
$
|
-
|
$
|
-
|
$
|
128,090
|
||||||||||
Interest-bearing time deposits in other banks
|
$
|
31,759
|
$
|
-
|
$
|
31,758
|
$
|
-
|
$
|
31,758
|
||||||||||
Loans, net of allowance
|
$
|
592,078
|
$
|
-
|
$
|
591,893
|
$
|
506
|
$
|
592,399
|
||||||||||
Mortgage loans held for sale
|
$
|
512
|
$
|
-
|
$
|
512
|
$
|
-
|
$
|
512
|
||||||||||
Nonmarketable equity securities
|
$
|
1,055
|
$
|
-
|
$
|
1,055
|
$
|
-
|
$
|
1,055
|
||||||||||
Interest receivable
|
$
|
4,538
|
$
|
-
|
$
|
4,538
|
$
|
-
|
$
|
4,538
|
||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
675,903
|
$
|
-
|
$
|
675,017
|
$
|
-
|
$
|
675,017
|
||||||||||
Interest payable
|
$
|
461
|
$
|
-
|
$
|
461
|
$
|
-
|
$
|
461
|
Note 16: |
Financial Instruments with Off-Balance Sheet Risk
|
December 31,
2019
|
December 31,
2018
|
|||||||
Commitments to extend credit
|
$
|
191,459
|
$
|
135,015
|
||||
Financial and performance standby letters of credit
|
3,338
|
1,078
|
||||||
$
|
194,797
|
$
|
136,093
|
Note 17: |
Significant Estimates and Concentrations
|
Note 18: |
Operating Leases
|
2020
|
$
|
623
|
||
2021
|
451
|
|||
2022
|
220
|
|||
2023
|
174
|
|||
Thereafter
|
49
|
|||
$
|
1,517
|
Note 19: |
Parent-only Financial Statements
|
Condensed Balance Sheets
|
||||||||
Assets
|
|
|
||||||
December 31,
2019
|
December 31,
2018
|
|||||||
Cash and due from banks
|
$
|
296
|
$
|
295
|
||||
Investment in bank subsidiary
|
99,076
|
87,377
|
||||||
Dividends receivable
|
5,029
|
-
|
||||||
Goodwill
|
1,011
|
1,011
|
||||||
Other assets
|
-
|
39
|
||||||
Total assets
|
$
|
105,412
|
$
|
88,722
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Other liabilities
|
5,286
|
256
|
||||||
Total liabilities
|
5,286
|
256
|
||||||
|
||||||||
Total shareholders’ equity
|
100,126
|
88,466
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
105,412
|
$
|
88,722
|
Condensed Statements of Income
|
For the Years Ended December 31,
|
|||||||||||
2019
|
2018
|
2017
|
||||||||||
Income
|
||||||||||||
Dividends received from subsidiary bank
|
$
|
6,035
|
$
|
11,930
|
$
|
10,765
|
||||||
Other
|
155
|
-
|
-
|
|||||||||
Total Income
|
6,190
|
11,930
|
10,765
|
|||||||||
Expense
|
||||||||||||
Interest expense
|
-
|
175
|
238
|
|||||||||
Other
|
4
|
315
|
-
|
|||||||||
Total expense
|
4
|
490
|
238
|
|||||||||
Income and equity in undistributed net income of bank subsidiary
|
6,185
|
11,440
|
10,527
|
|||||||||
Equity in undistributed net income of bank subsidiary
|
2,040
|
13,521
|
13,262
|
|||||||||
Income before Taxes
|
8,225
|
24,961
|
23,789
|
|||||||||
Income tax expense
|
- |
(39
|
)
|
-
|
||||||||
Net Income Available to Common Shareholders
|
$
|
8,225
|
$
|
25,000
|
$
|
23,789
|
Condensed Statements of Cash Flows
|
For the Years Ended December 31,
|
|||||||||||
2019
|
2018
|
2017
|
||||||||||
Operating Activities
|
||||||||||||
Net income
|
$
|
8,225
|
$
|
25,000
|
$
|
23,789
|
||||||
Items not requiring (providing) cash
|
||||||||||||
Equity in undistributed net income
|
(2,040
|
)
|
(13,521
|
)
|
(13,262
|
)
|
||||||
Dividends receivable from subsidiary bank
|
(5,029
|
)
|
-
|
-
|
||||||||
Stock-based compensation expense
|
-
|
154
|
-
|
|||||||||
Changes in
|
||||||||||||
Accounts payable and accrued expenses
|
(149
|
)
|
-
|
-
|
||||||||
Other current assets and liabilities
|
-
|
199
|
(2
|
) |
||||||||
Net cash provided by operating activities
|
1,007
|
11,832
|
10,525
|
|||||||||
Financing Activities
|
||||||||||||
Repayment of borrowed funds
|
-
|
(5,600
|
)
|
(800
|
)
|
|||||||
Common stock issued, net of offering costs
|
-
|
50,154
|
-
|
|||||||||
Dividends paid
|
(1,006
|
)
|
(56,155
|
)
|
(9,749
|
)
|
||||||
Net cash used in financing activities
|
(1,006
|
)
|
(11,601
|
)
|
10,549
|
|
||||||
Increase in Cash and Due from Banks
|
1
|
231
|
(24
|
) |
||||||||
|
||||||||||||
Cash and Due from Banks, Beginning of Period
|
295
|
64
|
88
|
|||||||||
|
||||||||||||
Cash and Due from Banks, End of Period
|
$
|
296
|
$
|
295
|
$
|
64
|
||||||
|
||||||||||||
Supplemental Disclosure of Cash Flows Information
|
||||||||||||
Interest paid
|
$
|
-
|
$
|
175
|
$
|
239
|
||||||
Dividends declared and not paid
|
$
|
5,029
|
$
|
-
|
$
|
-
|
Note 20: |
Selected Quarterly Financial Data (Unaudited)
|
For the three months ended
|
||||||||||||||||
March 31,
2019 |
June 30,
2019 |
September 30,
2019 |
December 31,
2019 |
|||||||||||||
Net interest income
|
$
|
10,353
|
$
|
10,583
|
$
|
10,600
|
$
|
10,657
|
||||||||
Provision for loan losses
|
-
|
-
|
-
|
-
|
||||||||||||
Noninterest income
|
223
|
295
|
509
|
281
|
||||||||||||
Noninterest expense
|
3,755
|
4,048
|
16,072
|
4,557
|
||||||||||||
Income before income taxes
|
6,821
|
6,830
|
(4,963
|
)
|
6,381
|
|||||||||||
Income tax expense (benefit)
|
1,705
|
1,704
|
1,556
|
1,879
|
||||||||||||
Net income (loss)
|
$
|
5,116
|
$
|
5,126
|
$
|
(6,519
|
)
|
$
|
4,502
|
|||||||
EPS
|
||||||||||||||||
Basic
|
$
|
0.50
|
$
|
0.50
|
$
|
(0.64
|
)
|
$
|
0.45
|
|||||||
Diluted
|
$
|
0.50
|
$
|
0.50
|
$
|
(0.64
|
)
|
$
|
0.45
|
|||||||
For the three months ended
|
||||||||||||||||
March 31,
2018
|
June 30,
2018
|
September 30,
2018
|
December 31,
2018
|
|||||||||||||
Net interest income
|
$
|
9,861
|
$
|
9,439
|
$
|
9,801
|
$
|
10,530
|
||||||||
Provision for loan losses
|
100
|
-
|
-
|
100
|
||||||||||||
Noninterest income
|
264
|
486
|
319
|
262
|
||||||||||||
Noninterest expense
|
3,675
|
3,546
|
3,805
|
3,939
|
||||||||||||
Income before income taxes
|
6,350
|
6,379
|
6,315
|
6,753
|
||||||||||||
Income tax expense
|
-
|
-
|
(395
|
)
|
1,192
|
|||||||||||
Net income
|
$
|
6,350
|
$
|
6,379
|
$
|
6,710
|
$
|
5,561
|
||||||||
EPS (1)
|
||||||||||||||||
Basic
|
$
|
0.87
|
$
|
0.88
|
$
|
0.88
|
$
|
0.55
|
||||||||
Diluted
|
$
|
0.87
|
$
|
0.88
|
$
|
0.87
|
$
|
0.54
|
a) |
Controls and Procedures
|
b) |
Management’s Annual Report on Internal Control over Financial Reporting
|
c) |
Attestation Report of the Independent Registered Public Accounting Firm
|
d) |
Changes in Internal Control Over Financial Reporting
|
Amended and Restated Certificate of Incorporation of Bank7 Corp.(1)
|
||
Amended and Restated Bylaws of Bank7 Corp.(2)
|
||
Specimen Common Stock Certificate of Bank7 Corp.(3)
|
||
Description of Common Stock Securities Registered Pursuant to Section 12 of the Exchange Act of 1934
|
Form of Tax Sharing Agreement(4)
|
||
Bank7 Corp. 2018 Equity Incentive Plan(5)
|
||
Form of Stock Option award Agreement under the Bank7 Corp. 2018 Equity Incentive Plan(6)
|
||
Form of Restricted Stock Unit Award Agreement under the Bank7 Corp. 2018 Equity Incentive Plan(7)
|
||
Form of Indemnification Agreement(8)
|
||
Form of Registration Rights Agreement(9)
|
||
Stock Award Agreement Between the Company and Thomas L. Travis issued under the 2018 Equity Incentive Plan (10)
|
||
Stock Award Agreement Between the Company and John T. Phillips issued under the 2018 Equity Incentive Plan (11)
|
||
Subsidiaries of Bank7 Corp.
|
||
Consent of Independent Registered Public Accounting Firm
|
||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Chief Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2019 and 2018, (ii) the Consolidated Statements of Income for the years ended December 31, 2019 and 2018, (iii) the
Consolidated Statements of Retained Earnings for the years ended December 31, 2019 and 2018, (iv) the Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 2018, and (v) the notes to the Consolidated Financial
Statements
|
(1) |
Incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 24, 2018 (File No. 333-227010).
|
(2) |
Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 24, 2018 (File No. 333-227010).
|
(3) |
Incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No. 333-227010).
|
(4) |
Incorporated by reference to Exhibit 10.1 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 24, 2018 (File No. 333-227010).
|
(5) |
Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No. 333-227010).
|
(6) |
Incorporated by reference to Exhibit 10.3 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No. 333-227010).
|
(7) |
Incorporated by reference to Exhibit 10.4 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No. 333-227010).
|
(8) |
Incorporated by reference to Exhibit 10.5 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No. 333-227010).
|
(9) |
Incorporated by reference to Exhibit 10.4 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 24, 2018 (File No. 333-227010).
|
(10) |
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 5, 2019.
|
(11) |
Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 5, 2019.
|
Bank7 Corp.
|
|||
Date: March 30, 2020
|
By: |
/s/ Thomas L. Travis
|
|
Thomas L. Travis
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|||
By: |
/s/ Kelly J. Harris
|
||
Kelly J. Harris
|
|||
Senior Vice President and Chief Financial Officer
|
|||
(Principal Financial and Accounting Officer)
|
|
Signatures
|
|
|
Title
|
Date
|
|||
|
|
|||||||
/s/ William B. Haines
|
Director; Chairman
|
March 30, 2020
|
||||||
William B. Haines
|
|
|
||||||
|
|
|||||||
/s/ Thomas L. Travis
|
Director; President and Chief Executive Officer
|
March 30, 2020
|
||||||
Thomas L. Travis
|
(Principal Executive Officer)
|
|
||||||
|
||||||||
/s/ Charles W. Brown
|
Director
|
March 30, 2020
|
||||||
Charles W. Brown
|
|
|
||||||
|
|
|||||||
/s/ William M. Buergler
|
Director
|
March 30, 2020
|
||||||
William M. Buergler
|
|
|
||||||
|
|
|||||||
/s/ John T. Phillips
|
Director
|
March 30, 2020
|
||||||
John T. Phillips
|
|
|
||||||
|
||||||||
/s/ Gary D. Whitcomb
|
Director
|
March 30, 2020
|
||||||
Gary D. Whitcomb
|
|
|
||||||
/s/ Lonny D. Wilson
|
Director
|
March 30, 2020 | ||||||
Lonny D. Wilson
|
|
|
/s/ J. Michael Sanner
|
Director
|
March 30, 2020
|
||||||
J. Michael Sanner
|
|
|