QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation of organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | [ ] | Accelerated filer | [ ] | |||||||||||
[X] | Smaller reporting company | |||||||||||||
Emerging growth company |
Page | ||||||||
Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||||||
Quantitative and Qualitative Disclosures about Market Risk | ||||||||
Controls and Procedures | ||||||||
Legal Proceedings | ||||||||
Risk Factors | ||||||||
Unregistered Sales of Equity Securities and Use of Proceeds | ||||||||
Defaults Upon Senior Securities | ||||||||
Mine Safety Disclosures | ||||||||
Other Information | ||||||||
Exhibits | ||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest-bearing demand deposits | |||||||||||
Cash and cash equivalents | |||||||||||
Investment securities - available for sale | |||||||||||
Investment securities - held to maturity | |||||||||||
Loans held for sale | |||||||||||
Loans and leases, net of allowance for losses of $ | |||||||||||
Premises and equipment, net | |||||||||||
Federal Home Loan Bank stock | |||||||||||
Interest receivable | |||||||||||
Mortgage-servicing rights | |||||||||||
Cash surrender value of life insurance | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Noninterest-bearing deposits | |||||||||||
Interest-bearing deposits | |||||||||||
Total deposits | |||||||||||
Federal Home Loan Bank advances | |||||||||||
Advances by borrowers for taxes and insurance | |||||||||||
Interest payable | |||||||||||
Multi-employer pension plan liability | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and Contingent Liabilities | |||||||||||
Stockholders' Equity | |||||||||||
Common stock, $ | |||||||||||
Authorized - | |||||||||||
Issued and outstanding - | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Unearned employee stock ownership plan (ESOP) | ( | ( | |||||||||
Accumulated other comprehensive (loss) income | ( | ||||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Interest Income | |||||||||||||||||||||||
Loans and leases | $ | $ | $ | $ | |||||||||||||||||||
Investment securities | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net Interest Income | |||||||||||||||||||||||
Provision for losses on loans and leases | |||||||||||||||||||||||
Net Interest Income After Provision for Losses on Loans and Leases | |||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||
Card fee income | |||||||||||||||||||||||
Loan and lease servicing fees | ( | ( | ( | ||||||||||||||||||||
Net gains on securities (includes $ | |||||||||||||||||||||||
Net gains on loan and lease sales | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total noninterest income | |||||||||||||||||||||||
Noninterest Expenses | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Net occupancy expenses | |||||||||||||||||||||||
Equipment expenses | |||||||||||||||||||||||
Data processing fees | |||||||||||||||||||||||
Deposit insurance expense | |||||||||||||||||||||||
Printing and office supplies | |||||||||||||||||||||||
Legal and professional fees | |||||||||||||||||||||||
Advertising expense | |||||||||||||||||||||||
Bank service charges | |||||||||||||||||||||||
Real estate owned expense | |||||||||||||||||||||||
Loss on sale of real estate owned | |||||||||||||||||||||||
Other expenses | |||||||||||||||||||||||
Total noninterest expenses | |||||||||||||||||||||||
Income Before Income Tax Expense | |||||||||||||||||||||||
Provision for income taxes (includes $ | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Earnings Per Share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Unrealized (loss) gain on available-for-sale securities, net of tax (benefit) expense of $( | ( | ( | |||||||||||||||||||||
Less: reclassification adjustment for realized gains included in net income, net of tax expense of $ | |||||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Comprehensive Income | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2021 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
ESOP shares earned | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Balances, September 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income/(Loss) | Total | ||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2020 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
ESOP shares earned | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Granting of restricted stock awards | ( | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Balances, September 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2020 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
ESOP shares earned | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Balances, September 30, 2020 | $ | $ | $ | $ | ( | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income/(Loss) | Total | ||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
ESOP shares earned | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Balances, September 30, 2020 | $ | $ | $ | $ | ( | $ | $ |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Items not requiring (providing) cash | |||||||||||
Provision for loan losses | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income tax | ( | ( | |||||||||
Stock based compensation | |||||||||||
Investment securities amortization, net | |||||||||||
Investment securities gains | ( | ( | |||||||||
Net gains on loan and lease sales | ( | ( | |||||||||
Loss on sale of real estate owned | |||||||||||
Accretion of loan origination fees | ( | ( | |||||||||
Amortization of mortgage-servicing rights | |||||||||||
ESOP shares expense | |||||||||||
Increase in cash surrender value of life insurance | ( | ( | |||||||||
Loans originated for sale | ( | ( | |||||||||
Proceeds on loans sold | |||||||||||
Net change in | |||||||||||
Interest receivable | ( | ||||||||||
Other assets | ( | ||||||||||
Other liabilities | ( | ( | |||||||||
Interest payable | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Investing Activities | |||||||||||
Purchases of securities available for sale | ( | ( | |||||||||
Proceeds from maturities and paydowns of securities available for sale | |||||||||||
Proceeds from sales of securities available for sale | |||||||||||
Proceeds from maturities and paydowns of securities held to maturity | |||||||||||
Net change in loans | ( | ( | |||||||||
Proceeds from sales of real estate owned | |||||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Purchase of FHLB stock | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Net change in | |||||||||||
Demand and savings deposits | |||||||||||
Certificates of deposit | ( | ||||||||||
Advances by borrowers for taxes and insurance | |||||||||||
Proceeds from FHLB advances | |||||||||||
Repayment of FHLB advances | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Proceeds from stock option exercises | |||||||||||
Dividends paid | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net Change in Cash and Cash Equivalents | ( | ( | |||||||||
Cash and Cash Equivalents, Beginning of Period | |||||||||||
Cash and Cash Equivalents, End of Period | $ | $ | |||||||||
Additional Cash Flows and Supplementary Information | |||||||||||
Interest paid | $ | $ | |||||||||
Transfers from loans to other real estate owned |
September 30, 2021 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||
SBA Pools | $ | $ | $ | $ | |||||||||||||||||||
Federal agencies | |||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||
Mortgage-backed securities - government-sponsored enterprises (GSE) residential | |||||||||||||||||||||||
Corporate obligations | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||
Total investment securities | $ | $ | $ | $ |
December 31, 2020 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||
SBA Pools | $ | $ | $ | $ | |||||||||||||||||||
Federal agencies | |||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||
Mortgage-backed securities - government-sponsored enterprises (GSE) residential | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||
Total investment securities | $ | $ | $ | $ |
Available for Sale | Held to Maturity | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Within one year | $ | $ | $ | $ | |||||||||||||||||||
One to five years | |||||||||||||||||||||||
Five to ten years | |||||||||||||||||||||||
After ten years | |||||||||||||||||||||||
Mortgage-backed securities –GSE residential | |||||||||||||||||||||||
Equity securities | — | — | |||||||||||||||||||||
Totals | $ | $ | $ | $ |
Description of Securities | September 30, 2021 | ||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||||
SBA Pools | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Federal agencies | |||||||||||||||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities - GSE residential | |||||||||||||||||||||||||||||||||||
Corporate obligations | |||||||||||||||||||||||||||||||||||
Total available-for-sale | |||||||||||||||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | $ | $ | $ | $ | $ |
Description of Securities | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||||
SBA Pools | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Federal agencies | |||||||||||||||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities - GSE residential | |||||||||||||||||||||||||||||||||||
Total available-for-sale | |||||||||||||||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | $ | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
Commercial mortgage | $ | $ | |||||||||
Commercial and industrial | |||||||||||
Construction and development | |||||||||||
Multi-family | |||||||||||
Residential mortgage | |||||||||||
Home equity | |||||||||||
Direct financing leases | |||||||||||
Consumer | |||||||||||
Less | |||||||||||
Allowance for loan and lease losses | |||||||||||
Deferred loan fees | |||||||||||
$ | $ |
Balance, beginning of period | Provision (credit) for losses | Charge-offs | Recoveries | Balance, end of period | |||||||||||||||||||||||||
Three Months Ended September 30, 2021: | |||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Commercial and industrial | ( | ||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||
Residential mortgage | ( | ||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Leases | ( | ||||||||||||||||||||||||||||
Consumer | ( | ( | |||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Nine Months Ended September 30, 2021: | |||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Commercial and industrial | ( | ( | |||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||
Residential mortgage | ( | ||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Leases | ( | ||||||||||||||||||||||||||||
Consumer | ( | ||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ |
Balance, beginning of period | Provision (credit) for losses | Charge-offs | Recoveries | Balance, end of period | |||||||||||||||||||||||||
Three Months Ended September 30, 2020: | |||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||
Residential mortgage | ( | ||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Leases | ( | ||||||||||||||||||||||||||||
Consumer | ( | ||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Nine Months Ended September 30, 2020: | |||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||
Residential mortgage | ( | ( | |||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Leases | ( | ||||||||||||||||||||||||||||
Consumer | ( | ||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ |
Allowance for loan and lease losses: | Loans and leases: | ||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Balance, September 30 | Individually evaluated for impairment | Collectively evaluated for impairment | Balance, September 30 | ||||||||||||||||||||||||||||||
As of September 30, 2021: | |||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Allowance for loan and lease losses: | Loans and leases: | ||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Balance, December 31 | Individually evaluated for impairment | Collectively evaluated for impairment | Balance, December 31 | ||||||||||||||||||||||||||||||
As of December 31, 2020: | |||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Pass | Special Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||||
As of September 30, 2021: | |||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Pass | Special Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||||
As of December 31, 2020: | |||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Delinquent Loans and Leases | Current | Total Portfolio Loans and Leases | Total Loans and Leases > 90 Days Accruing | ||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Over | Total Past Due | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||
Totals | $ | $ | $ | $ | $ | $ | $ |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Delinquent Loans and Leases | Current | Total Portfolio Loans and Leases | Total Loans and Leases > 90 Days Accruing | ||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Over | Total Past Due | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||
Totals | $ | $ | $ | $ | $ | $ | $ |
September 30, 2021 | |||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | |||||||||||||||
Impaired loans without a specific valuation allowance | |||||||||||||||||
Commercial mortgage | $ | $ | $ | — | |||||||||||||
Commercial and industrial | — | ||||||||||||||||
Residential mortgage | — | ||||||||||||||||
$ | $ | $ | — | ||||||||||||||
Impaired loans with a specific valuation allowance | |||||||||||||||||
Commercial and industrial | $ | $ | $ | ||||||||||||||
Construction and development | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Total impaired loans | |||||||||||||||||
Commercial mortgage | $ | $ | $ | ||||||||||||||
Commercial and industrial | |||||||||||||||||
Construction and development | |||||||||||||||||
Residential mortgage | |||||||||||||||||
Total impaired loans | $ | $ | $ |
December 31, 2020 | |||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | |||||||||||||||
Impaired loans without a specific valuation allowance | |||||||||||||||||
Commercial mortgage | $ | $ | $ | — | |||||||||||||
Commercial and industrial | — | ||||||||||||||||
Residential mortgage | — | ||||||||||||||||
$ | $ | $ | — | ||||||||||||||
Impaired loans with a specific valuation allowance | |||||||||||||||||
Commercial and industrial | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Total impaired loans | |||||||||||||||||
Commercial mortgage | $ | $ | $ | ||||||||||||||
Commercial and industrial | |||||||||||||||||
Residential mortgage | |||||||||||||||||
Total impaired loans | $ | $ | $ |
Average Investment in Impaired Loans and Leases | Interest Income Recognized | ||||||||||
Three Months Ended September 30, 2021: | |||||||||||
Total impaired loans | |||||||||||
Commercial mortgage | $ | $ | |||||||||
Commercial and industrial | |||||||||||
Construction and development | |||||||||||
Residential mortgage | |||||||||||
Total impaired loans and leases | $ | $ |
Average Investment in Impaired Loans and Leases | Interest Income Recognized | ||||||||||
Nine Months Ended September 30, 2021: | |||||||||||
Total impaired loans | |||||||||||
Commercial mortgage | $ | $ | |||||||||
Commercial and industrial | |||||||||||
Construction and development | |||||||||||
Residential mortgage | |||||||||||
Total impaired loans and leases | $ | $ |
Average Investment in Impaired Loans and Leases | Interest Income Recognized | ||||||||||
Three Months Ended September 30, 2020: | |||||||||||
Total impaired loans | |||||||||||
Commercial mortgage | $ | $ | |||||||||
Commercial and industrial | |||||||||||
Residential mortgage | |||||||||||
Total impaired loans and leases | $ | $ |
Average Investment in Impaired Loans and Leases | Interest Income Recognized | ||||||||||
Nine Months Ended September 30, 2020: | |||||||||||
Total impaired loans | |||||||||||
Commercial mortgage | $ | $ | |||||||||
Commercial and industrial | |||||||||||
Residential mortgage | |||||||||||
Total impaired loans and leases | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
Commercial mortgage | $ | $ | |||||||||
Commercial and industrial | |||||||||||
Construction | |||||||||||
Residential mortgage | |||||||||||
Leases | |||||||||||
$ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
Total minimum lease payments to be received | $ | $ | |||||||||
Initial direct costs | |||||||||||
Less: Unearned income | ( | ( | |||||||||
Net investment in direct finance leases | $ | $ |
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
$ |
Fair Value Measurements Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
SBA Pools | $ | $ | $ | $ | |||||||||||||||||||
Federal agencies | |||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||
Mortgage-backed securities - GSE residential | |||||||||||||||||||||||
Corporate obligations | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
$ | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
SBA Pools | $ | $ | $ | $ | |||||||||||||||||||
Federal agencies | |||||||||||||||||||||||
State and municipal obligations | |||||||||||||||||||||||
Mortgage-backed securities - GSE residential | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
$ | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||
Impaired loans, collateral dependent | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-servicing rights | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Impaired loans, collateral dependent | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-servicing rights |
Fair Value at September 30, 2021 | Valuation Technique | Unobservable Inputs | Range | ||||||||||||||||||||
Collateral-dependent impaired loans | $ | Appraisal | Marketability discount | ||||||||||||||||||||
Mortgage-servicing rights | $ | Discounted cash flow | Discount rate |
Fair Value at December 31, 2020 | Valuation Technique | Unobservable Inputs | Range | ||||||||||||||||||||
Collateral-dependent impaired loans | $ | Appraisal | Marketability discount | ||||||||||||||||||||
Mortgage-servicing rights | $ | Discounted cash flow | Discount rate |
Fair Value Measurements Using | |||||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Loans and leases receivable, net | |||||||||||||||||||||||
Federal Reserve and FHLB stock | |||||||||||||||||||||||
Interest receivable | |||||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
FHLB advances | |||||||||||||||||||||||
Interest payable |
Fair Value Measurements Using | |||||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Loans and leases receivable, net | |||||||||||||||||||||||
Federal Reserve and FHLB stock | |||||||||||||||||||||||
Interest receivable | |||||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
FHLB advances | |||||||||||||||||||||||
Interest payable |
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | ||||||||||
Net income | $ | $ | |||||||||
Shares outstanding for Basic EPS: | |||||||||||
Average shares outstanding | |||||||||||
Less: average restricted stock award shares not vested | |||||||||||
Less: average unearned ESOP Shares | |||||||||||
Shares outstanding for Basic EPS | |||||||||||
Additional Dilutive Shares | |||||||||||
Shares outstanding for Diluted EPS | |||||||||||
Basic Earnings Per Share | $ | $ | |||||||||
Diluted Earnings Per Share | $ | $ |
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | ||||||||||
Net income | $ | $ | |||||||||
Shares outstanding for Basic EPS: | |||||||||||
Average shares outstanding | |||||||||||
Less: average restricted stock award shares not vested | |||||||||||
Less: average unearned ESOP Shares | |||||||||||
Shares outstanding for Basic EPS | |||||||||||
Additional Dilutive Shares | |||||||||||
Shares outstanding for Diluted EPS | |||||||||||
Basic Earnings Per Share | $ | $ | |||||||||
Diluted Earnings Per Share | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
Earned ESOP shares | |||||||||||
Unearned ESOP shares | |||||||||||
Total ESOP shares | |||||||||||
Quoted per share price | $ | $ | |||||||||
Fair value of earned shares | $ | $ | |||||||||
Fair value of unearned shares | $ | $ |
Nine Months Ended September 30, 2021 | |||||||||||
Number of Restricted Shares | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested, beginning of period | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | |||||||||||
Non-vested, September 30 |
Nine Months Ended September 30, 2021 | |||||||||||
Number of Shares | Weighted-Average Exercise Price | ||||||||||
Balance at beginning of period | $ | ||||||||||
Granted | |||||||||||
Exercised | ( | ||||||||||
Forfeited/expired | |||||||||||
Balance, September 30 | |||||||||||
Exercisable at end of period | $ |
April 1, 2021 | |||||
Dividend yields | % | ||||
Volatility factors of expected market price of common stock | % | ||||
Risk-free interest rates | % | ||||
Expected life of options |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested, beginning of year | $ | ||||||||||
Vested | ( | ||||||||||
Granted | |||||||||||
Forfeited | |||||||||||
Non-vested, September 30 | $ |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Average Balance Outstanding | Interest Earned/ Paid | Yield/ Rate | Average Balance Outstanding | Interest Earned/ Paid | Yield/ Rate | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans and leases receivable | $ | 784,531 | $ | 10,437 | 5.32 | % | $ | 756,307 | $ | 9,720 | 5.14 | % | |||||||||||||||||||||||
Securities | 354,211 | 1,387 | 1.57 | % | 247,113 | 891 | 1.44 | % | |||||||||||||||||||||||||||
FHLB stock | 9,081 | 69 | 3.04 | % | 9,083 | 126 | 5.55 | % | |||||||||||||||||||||||||||
Cash and cash equivalents and other | 17,515 | 7 | 0.16 | % | 28,096 | 9 | 0.13 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 1,165,338 | 11,900 | 4.08 | % | 1,040,599 | 10,746 | 4.13 | % | |||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Savings and money market accounts | 250,799 | 325 | 0.52 | % | 189,848 | 243 | 0.51 | % | |||||||||||||||||||||||||||
Interest-bearing checking accounts | 166,138 | 98 | 0.24 | % | 123,271 | 68 | 0.22 | % | |||||||||||||||||||||||||||
Certificate accounts | 296,954 | 830 | 1.12 | % | 282,306 | 1,234 | 1.75 | % | |||||||||||||||||||||||||||
Borrowings | 179,413 | 689 | 1.54 | % | 180,913 | 763 | 1.69 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 893,304 | 1,942 | 0.87 | % | 776,338 | 2,308 | 1.19 | % | |||||||||||||||||||||||||||
Net interest income | $ | 9,958 | $ | 8,438 | |||||||||||||||||||||||||||||||
Net earning assets | $ | 272,034 | $ | 264,261 | |||||||||||||||||||||||||||||||
Net interest rate spread(1) | 3.21 | % | 2.94 | % | |||||||||||||||||||||||||||||||
Net interest margin(2) | 3.42 | % | 3.24 | % | |||||||||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 130.45 | % | 134.04 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Average Balance Outstanding | Interest Earned/ Paid | Yield/ Rate | Average Balance Outstanding | Interest Earned/ Paid | Yield/ Rate | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans and leases receivable | $ | 775,647 | $ | 30,162 | 5.18 | % | $ | 691,890 | $ | 28,264 | 5.45 | % | |||||||||||||||||||||||
Securities | 309,776 | 3,512 | 1.51 | % | 239,696 | 3,252 | 1.81 | % | |||||||||||||||||||||||||||
FHLB stock | 9,060 | 202 | 2.97 | % | 8,681 | 207 | 3.18 | % | |||||||||||||||||||||||||||
Cash and cash equivalents and other | 23,932 | 20 | 0.11 | % | 38,355 | 146 | 0.51 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 1,118,415 | 33,896 | 4.04 | % | 978,622 | 31,869 | 4.34 | % | |||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Savings and money market accounts | 242,257 | 921 | 0.51 | % | 178,699 | 787 | 0.59 | % | |||||||||||||||||||||||||||
Interest-bearing checking accounts | 153,817 | 267 | 0.23 | % | 114,205 | 216 | 0.25 | % | |||||||||||||||||||||||||||
Certificate accounts | 272,440 | 2,475 | 1.21 | % | 288,571 | 4,071 | 1.88 | % | |||||||||||||||||||||||||||
Borrowings | 174,198 | 2,083 | 1.59 | % | 175,620 | 2,273 | 1.73 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 842,712 | 5,746 | 0.91 | % | 757,095 | 7,347 | 1.29 | % | |||||||||||||||||||||||||||
Net interest income | $ | 28,150 | $ | 24,522 | |||||||||||||||||||||||||||||||
Net earning assets | $ | 275,703 | $ | 221,527 | |||||||||||||||||||||||||||||||
Net interest rate spread(1) | 3.13 | % | 3.05 | % | |||||||||||||||||||||||||||||||
Net interest margin(2) | 3.36 | % | 3.34 | % | |||||||||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 132.72 | % | 129.26 | % |
Actual | Required for Adequate Capital | To Be Well Capitalized | |||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
As of September 30, 2021 | |||||||||||||||||||||||||||||||||||
Total risk-based capital (to risk weighted assets) | $ | 165,046 | 17.6 | % | $ | 74,911 | 8.0 | % | $ | 93,639 | 10.0 | % | |||||||||||||||||||||||
Tier 1 risk-based capital (to risk weighted assets) | 153,340 | 16.4 | 56,183 | 6.0 | 74,911 | 8.0 | |||||||||||||||||||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 153,340 | 16.4 | 42,138 | 4.5 | 60,865 | 6.5 | |||||||||||||||||||||||||||||
Tier 1 leverage (core) capital (to adjusted tangible assets) | 153,340 | 12.8 | 48,077 | 4.0 | 60,096 | 5.0 | |||||||||||||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||||||||||||||
Total risk-based capital (to risk weighted assets) | $ | 162,624 | 21.9 | % | $ | 59,416 | 8.0 | % | $ | 74,270 | 10.0 | % | |||||||||||||||||||||||
Tier 1 risk-based capital (to risk weighted assets) | 153,325 | 20.6 | 44,562 | 6.0 | 59,416 | 8.0 | |||||||||||||||||||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 153,325 | 20.6 | 33,422 | 4.5 | 48,276 | 6.5 | |||||||||||||||||||||||||||||
Tier 1 leverage (core) capital (to adjusted tangible assets) | 153,325 | 14.3 | 42,939 | 4.0 | 53,673 | 5.0 |
Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs | ||||||||||||||||||||
July 1, 2021 - July 31, 2021 | 188,611 | $ | 14.96 | 188,611 | 1,121,796 | ||||||||||||||||||
August 1, 2021 - August 31, 2021 | 49,024 | 15.59 | 49,024 | 1,072,772 | |||||||||||||||||||
September 1, 2021 - September 30, 2021 | 27,274 | 15.41 | 27,274 | 1,045,498 | |||||||||||||||||||
264,909 | $ | 15.12 | 264,909 | 1,045,498 |
101.0 | The following materials for the quarter ended September 30, 2021, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders’ Equity (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
RICHMOND MUTUAL BANCORPORATION, INC. | ||||||||
Date: November 12, 2021 | By: | /s/ Garry D. Kleer | ||||||
Garry D. Kleer | ||||||||
Chairman, President and CEO | ||||||||
(Duly Authorized Officer) | ||||||||
Date: November 12, 2021 | By: | /s/ Donald A. Benziger | ||||||
Donald A. Benziger | ||||||||
Executive Vice President and CFO | ||||||||
(Principal Financial and Accounting Officer) |
Date: November 12, 2021 | By: | /s/ Garry D. Kleer | ||||||
Garry D. Kleer | ||||||||
President and Chief Executive Officer |
Date: November 12, 2021 | By: | /s/ Donald A. Benziger | ||||||
Donald A. Benziger | ||||||||
Executive Vice President and Chief Financial Officer |
Date: November 12, 2021 | /s/ Garry D. Kleer | ||||
Garry D. Kleer | |||||
President and Chief Executive Officer | |||||
Date: November 12, 2021 | /s/ Donald A. Benziger | ||||
Donald A. Benziger | |||||
Executive Vice President and Chief Financial Officer |
Condensed Consolidated Balance Sheets - Parenthetical - USD ($) |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for loan and lease losses | $ 11,849,000 | $ 10,586,000 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 12,432,184 | 13,193,760 |
Common stock, shares outstanding (in shares) | 12,432,184 | 13,193,760 |
Condensed Consolidated Statements of Income - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Interest Income | ||||
Loans and leases | $ 10,437,783 | $ 9,719,323 | $ 30,161,755 | $ 28,264,455 |
Investment securities | 1,456,124 | 1,017,201 | 3,714,207 | 3,458,621 |
Other | 6,581 | 9,376 | 19,559 | 145,853 |
Total interest income | 11,900,488 | 10,745,900 | 33,895,521 | 31,868,929 |
Interest Expense | ||||
Deposits | 1,253,901 | 1,545,183 | 3,662,562 | 5,074,191 |
Borrowings | 688,533 | 763,055 | 2,083,095 | 2,272,700 |
Total interest expense | 1,942,434 | 2,308,238 | 5,745,657 | 7,346,891 |
Net Interest Income | 9,958,054 | 8,437,662 | 28,149,864 | 24,522,038 |
Provision for losses on loans and leases | 500,000 | 1,300,000 | 1,430,000 | 2,830,000 |
Net Interest Income After Provision for Losses on Loans and Leases | 9,458,054 | 7,137,662 | 26,719,864 | 21,692,038 |
Noninterest Income | ||||
Service charges on deposit accounts | 236,204 | 150,653 | 629,425 | 510,922 |
Card fee income | 266,497 | 218,482 | 783,700 | 599,837 |
Loan and lease servicing fees | (181,498) | (41,657) | (38,210) | 193,881 |
Net gains on securities (includes $17,887, $117,304, $55,799, and $196,317, respectively, related to accumulated other comprehensive income reclassifications) | 17,887 | 117,304 | 55,799 | 196,317 |
Net gains on loan and lease sales | 556,664 | 1,327,639 | 2,090,892 | 2,586,515 |
Other income | 249,184 | 220,180 | 791,648 | 767,764 |
Total noninterest income | 1,144,938 | 1,992,601 | 4,313,254 | 4,855,236 |
Noninterest Expenses | ||||
Salaries and employee benefits | 4,217,780 | 3,647,479 | 12,977,382 | 10,281,475 |
Net occupancy expenses | 321,473 | 307,925 | 945,806 | 882,915 |
Equipment expenses | 334,187 | 308,146 | 985,951 | 844,849 |
Data processing fees | 512,917 | 446,543 | 1,601,704 | 1,395,417 |
Deposit insurance expense | 76,000 | 80,000 | 211,000 | 196,000 |
Printing and office supplies | 44,705 | 32,440 | 122,516 | 91,080 |
Legal and professional fees | 302,528 | 271,137 | 937,569 | 839,318 |
Advertising expense | 103,118 | 71,090 | 268,988 | 260,903 |
Bank service charges | 39,327 | 40,278 | 99,074 | 106,098 |
Real estate owned expense | 4,329 | 350 | 15,031 | 3,516 |
Loss on sale of real estate owned | 0 | 0 | 1,278 | 0 |
Other expenses | 887,939 | 779,791 | 2,535,140 | 2,254,922 |
Total noninterest expenses | 6,844,303 | 5,985,179 | 20,701,439 | 17,156,493 |
Income Before Income Tax Expense | 3,758,689 | 3,145,084 | 10,331,679 | 9,390,781 |
Provision for income taxes (includes $3,756, $24,634, $11,718, and $41,226, respectively, related to income tax expense from reclassification of items) | 676,414 | 613,531 | 1,905,571 | 1,900,905 |
Net Income | $ 3,082,275 | $ 2,531,553 | $ 8,426,108 | $ 7,489,876 |
Earnings Per Share | ||||
Basic (in USD per share) | $ 0.28 | $ 0.21 | $ 0.74 | $ 0.60 |
Diluted (in USD per share) | $ 0.27 | $ 0.21 | $ 0.72 | $ 0.60 |
Condensed Consolidated Statements of Income - Parenthetical - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Statement [Abstract] | ||||
Accumulated other comprehensive loss reclassifications | $ 17,887 | $ 117,304 | $ 55,799 | $ 196,317 |
Provision for income tax expense from reclassification of items | $ 3,756 | $ 24,634 | $ 11,718 | $ 41,226 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 3,082,275 | $ 2,531,553 | $ 8,426,108 | $ 7,489,876 |
Other Comprehensive Income (Loss) | ||||
Unrealized (loss) gain on available-for-sale securities, net of tax (benefit) expense of $(774,714), $45,101, $(1,310,569), and $1,040,994, respectively. | (2,914,399) | 169,667 | (4,930,236) | 3,916,120 |
Less: reclassification adjustment for realized gains included in net income, net of tax expense of $3,756, $24,634, $11,718, and $41,226, respectively. | 14,131 | 92,670 | 44,081 | 155,090 |
Other comprehensive income, net of tax | (2,928,530) | 76,997 | (4,974,317) | 3,761,030 |
Comprehensive Income | $ 153,745 | $ 2,608,550 | $ 3,451,791 | $ 11,250,906 |
Condensed Consolidated Statements of Comprehensive Income - Parenthetical - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Available for sale securities income tax expense (benefit) | $ (774,714) | $ 45,101 | $ (1,310,569) | $ 1,040,994 |
Reclassification adjustment income tax expense (benefit) | $ 3,756 | $ 24,634 | $ 11,718 | $ 41,226 |
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Unearned ESOP Shares |
Accumulated Other Comprehensive Income |
---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2019 | 13,526,625 | |||||
Beginning balance at Dec. 31, 2019 | $ 187,787,446 | $ 135,266 | $ 132,601,876 | $ 70,111,434 | $ (14,400,386) | $ (660,744) |
Net income | 7,489,876 | 7,489,876 | ||||
Other comprehensive income (loss) | 3,761,030 | 3,761,030 | ||||
ESOP shares earned | 480,999 | (70,487) | 551,486 | |||
Common stock dividends | (1,228,433) | (1,228,433) | ||||
Repurchase of common stock (in shares) | (582,079) | |||||
Repurchase of common stock | (6,616,493) | $ (5,821) | (6,610,672) | |||
Ending balance (in shares) at Sep. 30, 2020 | 12,944,546 | |||||
Ending balance at Sep. 30, 2020 | 191,674,425 | $ 129,445 | 125,920,717 | 76,372,877 | (13,848,900) | 3,100,286 |
Beginning balance (in shares) at Jun. 30, 2020 | 13,526,625 | |||||
Beginning balance at Jun. 30, 2020 | 196,135,902 | $ 135,266 | 132,563,670 | 74,446,405 | (14,032,728) | 3,023,289 |
Net income | 2,531,553 | 2,531,553 | ||||
Other comprehensive income (loss) | 76,997 | 76,997 | ||||
ESOP shares earned | 151,547 | (32,281) | 183,828 | |||
Common stock dividends | (605,081) | (605,081) | ||||
Repurchase of common stock (in shares) | (582,079) | |||||
Repurchase of common stock | (6,616,493) | $ (5,821) | (6,610,672) | |||
Ending balance (in shares) at Sep. 30, 2020 | 12,944,546 | |||||
Ending balance at Sep. 30, 2020 | 191,674,425 | $ 129,445 | 125,920,717 | 76,372,877 | (13,848,900) | 3,100,286 |
Beginning balance (in shares) at Dec. 31, 2020 | 13,193,760 | |||||
Beginning balance at Dec. 31, 2020 | 192,712,708 | $ 131,938 | 124,246,425 | 78,290,113 | (13,664,373) | 3,708,605 |
Net income | 8,426,108 | 8,426,108 | ||||
Other comprehensive income (loss) | (4,974,317) | (4,974,317) | ||||
ESOP shares earned | 580,576 | 28,391 | 552,185 | |||
Granting of restricted stock awards (in shares) | 4,000 | |||||
Granting of restricted stock awards | 0 | $ 40 | (40) | |||
Stock based compensation | $ 1,423,236 | 1,423,236 | ||||
Exercise of stock options (in shares) | 12,116 | 12,116 | ||||
Exercise of stock options | $ 127,581 | $ 121 | 127,460 | |||
Common stock dividends | (2,476,945) | (2,476,945) | ||||
Special common stock dividends | (6,001,447) | (6,001,447) | ||||
Repurchase of common stock (in shares) | (777,692) | |||||
Repurchase of common stock | (11,179,801) | $ (7,777) | (11,172,024) | |||
Ending balance (in shares) at Sep. 30, 2021 | 12,432,184 | |||||
Ending balance at Sep. 30, 2021 | 178,637,699 | $ 124,322 | 114,653,448 | 78,237,829 | (13,112,188) | (1,265,712) |
Beginning balance (in shares) at Jun. 30, 2021 | 12,684,977 | |||||
Beginning balance at Jun. 30, 2021 | 182,569,310 | $ 126,850 | 118,118,524 | 75,957,135 | (13,296,017) | 1,662,818 |
Net income | 3,082,275 | 3,082,275 | ||||
Other comprehensive income (loss) | (2,928,530) | (2,928,530) | ||||
ESOP shares earned | 207,062 | 23,233 | 183,829 | |||
Stock based compensation | 387,853 | 387,853 | ||||
Exercise of stock options (in shares) | 12,116 | |||||
Exercise of stock options | 127,581 | $ 121 | 127,460 | |||
Common stock dividends | (801,581) | (801,581) | ||||
Repurchase of common stock (in shares) | (264,909) | |||||
Repurchase of common stock | (4,006,271) | $ (2,649) | (4,003,622) | |||
Ending balance (in shares) at Sep. 30, 2021 | 12,432,184 | |||||
Ending balance at Sep. 30, 2021 | $ 178,637,699 | $ 124,322 | $ 114,653,448 | $ 78,237,829 | $ (13,112,188) | $ (1,265,712) |
Condensed Consolidated Statements of Changes in Stockholders' Equity - (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividend (in USD per share) | $ 0.07 | $ 0.05 | $ 0.21 | $ 0.10 |
Special common stock dividend (in USD per share) | $ 0.50 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation On July 1, 2019, Richmond Mutual Bancorporation, Inc., a Delaware corporation (“RMB-Delaware”), completed its reorganization from a mutual holding company form of organization to a stock form of organization (“corporate reorganization”). RMB-Delaware, which owned 100% of First Bank Richmond (the “Bank”), was succeeded by Richmond Mutual Bancorporation, Inc., a new Maryland corporation (“RMB-Maryland”). As part of the corporate reorganization, First Mutual of Richmond, Inc.’s (“MHC”) ownership interest in RMB-Delaware was sold in a public offering. Gross proceeds from the offering were $130.3 million. In conjunction with the corporate reorganization, RMB-Maryland contributed 500,000 shares and $1.25 million of cash to a newly formed charitable foundation, First Bank Richmond, Inc. Community Foundation (the “Foundation”). Additionally, a “liquidation account” was established for the benefit of certain depositors of the Bank in an amount equal to MHC’s ownership interest in the retained earnings of RMB-Delaware as of December 31, 2017 and March 31, 2019. In certain circumstances, where appropriate, the terms “Company”, “we”, “us” and “our” refer collectively to (i) RMB-Delaware and First Bank Richmond with respect to discussions in this document involving matters occurring prior to completion of the corporate reorganization and (ii) RMB-Maryland and First Bank Richmond with respect to discussions in this document involving matters occurring post-corporate reorganization, in each case unless the context indicates another meaning. The costs of the corporate reorganization and the issuance of the common stock have been deducted from the sales proceeds of the offering. The accompanying unaudited condensed consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include information or note disclosures necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. Accordingly, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021 (SEC File No. 001-38956). However, in the opinion of management, all adjustments which are necessary for a fair presentation of the consolidated financial statements have been included. Those adjustments consist only of normal recurring adjustments. The results of operations for the period are not necessarily indicative of the results to be expected for the full year. Loans For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The Company charges off residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance, which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value, less costs to sell when the loan is 120 days past due, charge-off of unsecured open-end loans when the loan is 90 days past due, and charge down to the net realizable value when other secured loans are 90 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months. Certain reclassifications have been made to the 2020 financial statements to conform to the 2021 financial statement presentation. These reclassifications had no effect on net income.
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Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements In March 2020, the novel coronavirus disease of 2019 ("COVID-19") was identified as a global pandemic and began affecting the health of large populations around the world. As a result of the spread of COVID-19, economic uncertainties arose which can ultimately affect the financial position, results of operations and cash flows of the Company, as well as the Company's customers. In response to economic concerns over COVID-19, in March 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was passed into law by the United States Congress ("Congress"). The CARES Act included relief for individual Americans, health care workers, small businesses and certain industries hit hard by the COVID-19 pandemic. The 2021 Consolidated Appropriations Act, passed by Congress in December 2020, extended certain provisions of the CARES Act affecting the Company into 2021. The CARES Act included several provisions designed to help financial institutions like the Company in working with their customers. Section 4013 of the CARES Act, as extended, allows a financial institution to elect to suspend generally accepted accounting principles and regulatory determinations with respect to qualifying loan modifications related to COVID-19 that would otherwise be categorized as a troubled debt restructuring ("TDR") until January 1, 2022. The Company has taken advantage of this provision to extend certain payment modifications to loan customers in need. As of September 30, 2021, the Company had no loans outstanding that were modified under the CARES Act guidance. The CARES Act also approved the Paycheck Protection Program ("PPP"), administered by the Small Business Administration ("SBA") with funding provided by financial institutions. The 2021 Consolidated Appropriations Act approved a new round of PPP loans in 2021. The PPP provides loans to eligible businesses through financial institutions like the Company, with loans being eligible for forgiveness of some or all of the principal amount by the SBA if the borrower meets certain requirements. The SBA guarantees repayment of the loans to the Company if the borrower's loan is not forgiven and is then not repaid by the borrower. The Company earns a 1% interest rate on PPP loans, plus a processing fee from the SBA for processing and originating a loan. The Company had originated approximately $103.1 million in PPP loans as of September 30, 2021, of which approximately $16.3 million were outstanding at September 30, 2021. The Jumpstart Our Business Startups Act (the "JOBS Act"), enacted in April 2012, made numerous changes to the federal securities laws to facilitate access to capital markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as and has elected to be an emerging growth company under the JOBS Act. An emerging growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company, but must make such election when the company is first required to file a registration statement. Such an election is irrevocable during the period a company is an emerging growth company. The Company has elected to comply with new or amended accounting pronouncements in the same manner as a private company. In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments-Credit Losses (Topic 326). The ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief” (ASU 2019-05). This ASU provides transition relief for entities adopting the FASB’s credit losses standard, ASU 2016-13 and allows companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for certain financial instruments. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (ASU 2019-04). This ASU clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. In October 2019, the FASB voted to extend the implementation of ASU No. 2016-13 for certain financial institutions including smaller reporting companies. As a result, ASU 2016-13 will be effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company is evaluating its current expected loss methodology on the loan and investment portfolios to identify the necessary modifications in accordance with this standard. The Company has not quantified the impact of these ASUs. The Company is evaluating its historical data available for use in adoption of the new credit loss standards. Additionally, we have formed an implementation team that meets on a regular basis to coordinate efforts of our accounting, credit and operations areas. We will continue to evaluate methodologies available to us under the new standard. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU applies to contracts, hedging relationships and other transactions that reference LIBOR or other rate references expected to be discontinued because of reference rate reform. The ASU permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract remeasurement or reassessment of a previous accounting determination. This ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not have a material impact on the Company's consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, “Receivables – Nonrefundable Fees and Other Costs” (“ASU 2020-08”). ASU 2020-08 clarifies that the Company should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of ASU 2020-08 did not have a material impact on the Company's consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 provides that state franchise or similar taxes that are based, at least in part on an entity’s income, be included in an entity’s income tax recognized as income-based taxes. The ASU further clarifies that the effect of any change in tax laws or rates used in the computation of the annual effective tax rate are required to be reflected in the first interim period that includes the enactment date of the legislation. Technical changes to eliminate exceptions to Topic 740 related to intra-period tax allocations for entities with losses from continuing operations, deferred tax liabilities related to change in ownership of foreign entities, and interim-period tax allocations for businesses with losses where the losses are expected to be realized. The amendments in ASU 2019-12 are effective for public business entities with fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases, with the exception of short-term leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. For the Company, the amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2021. Based on leases outstanding as of December 31, 2020, the new standard will not have a material impact on the Company’s balance sheet or income statement. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which provide entities with an additional (and optional) transition method to adopt the new lease standard. Under this new transition method, an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new lease standard will continue to be in accordance with current GAAP (Topic 842, Leases). The amendments in ASU 2018-11 also provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and certain criteria are met.
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:
The amortized cost and fair value of securities at September 30, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
Securities with a carrying value of $148,262,000 and $88,370,000 were pledged at September 30, 2021 and December 31, 2020, respectively, to secure certain deposits and for other purposes as permitted or required by law. Proceeds from sales of securities available for sale for the three and nine months ended September 30, 2021 were $1,316,000 and $5,297,000, respectively. For the three and nine months ended September 30, 2020, proceeds from the sales of securities available for sale were $12,560,000 and $34,738,000, respectively. Gross gains were recognized on the sale of securities available-for-sale for the three and nine months ended September 30, 2021 and 2020 of $18,000, $56,000, $120,000, and $255,000, respectively. There were no gross losses recognized on the sale of securities available for sale for the three and nine months ended September 30, 2021. Gross losses of $3,000 and $59,000 were recognized on the sale of securities available-for-sale for the three and nine months ended September 30, 2020, respectively. Certain investments in debt securities, as reflected in the table below, are reported in the condensed consolidated financial statements and notes at an amount less than their historical cost. Total fair value of these investments at September 30, 2021 and December 31, 2020 was $211,218,000 and $45,299,000, respectively, which is approximately 57% and 18% of the Company’s aggregated available-for-sale and held-to-maturity investment portfolio at those dates, respectively. These declines primarily resulted from changes in market interest rates since their purchase. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any other securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following tables show the Company’s investments by gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2021 and December 31, 2020:
Federal Agencies. The unrealized losses on the Company’s investments in direct obligations of U.S. federal agencies were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2021. Mortgage-Backed Securities – GSE Residential and SBA Pools. The unrealized losses on the Company’s investment in mortgage-backed securities and SBA pools were caused by interest rate changes and illiquidity. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2021. State and Municipal Obligations. The unrealized losses on the Company’s investments in securities of state and municipal obligations were caused by interest rate changes and illiquidity. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2021.
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Loans, Leases and Allowance |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Leases and Allowance | Loans, Leases and Allowance The following table shows the composition of the loan and lease portfolio at September 30, 2021 and December 31, 2020:
The following tables present the activity in the allowance for loan and lease losses for the three and nine months ended September 30, 2021 and 2020:
The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases based on portfolio segment and impairment method as of September 30, 2021 and December 31, 2020:
The Company rates all loans and leases by credit quality using the following designations: Grade 1 – Exceptional Exceptional loans and leases are top-quality loans to individuals whose financial credentials are well known to the Company. These loans and leases have excellent sources of repayment, are well documented and/or virtually free of risk (i.e., CD secured loans). Grade 2 – Quality Loans and Leases These loans and leases have excellent sources of repayment with no identifiable risk of collection, and they conform in all respects to Company policy and Indiana Department of Financial Institutions (“IDFI”) and Federal Deposit Insurance Corporation (“FDIC”) regulations. Documentation exceptions are minimal or are in the process of being corrected and are not of a type that could subsequently expose the Company to risk of loss. Grade 3 – Acceptable Loans This category is for “average” quality loans and leases. These loans and leases have adequate sources of repayment with little identifiable risk of collection and they conform to Company policy and IDFI/FDIC regulations. Grade 4 – Acceptable but Monitored Loans and leases in this category may have a greater than average risk due to financial weakness or uncertainty but do not appear to require classification as special mention or substandard loans. Loans and leases rated “4” need to be monitored on a regular basis to ascertain that the reasons for placing them in this category do not advance or worsen. Grade 5 – Special Mention Loans and leases in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company’s credit position at some future date. Special Mention loans and leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. This special mention rating is designed to identify a specific level of risk and concern about an asset’s quality. Although a special mention loan or leases has a higher probability of default than a pass rated loan or lease, its default is not imminent. Grade 6 – Substandard Loans and leases in this category are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Substandard loans and leases have a high probability of payment default, or they have other well-defined weaknesses. Such loans and leases have a distinct potential for loss; however, an individual loan’s or lease’s potential for loss does not have to be distinct for the loan or lease to be rated substandard. The following are examples of situations that might cause a loan or lease to be graded a “6”: •Cash flow deficiencies (losses) jeopardize future loan or lease payments. •Sale of non-collateral assets has become a primary source of loan or lease repayment. •The relationship has deteriorated to the point that sale of collateral is now the Company’s primary source of repayment, unless this was the original source of loan or lease repayment. •The borrower is bankrupt or for any other reason future repayment is dependent on court action. Grade 7 – Doubtful A loan or lease classified as doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable. A doubtful loan or lease has a high probability of total or substantial loss. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Because of high probability of loss, nonaccrual accounting treatment will be required for doubtful loans and leases. Grade 8 – Loss Loans and leases classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan or lease has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan or lease even though partial recovery may be effected in the future. No material changes have been made to the risk characteristics pertaining to the loan and lease portfolio contained in the Company's 2020 Form 10-K. The following tables present the credit risk profile of the Company’s loan and lease portfolio based on rating category and payment activity as of September 30, 2021 and December 31, 2020:
The following tables present the Company’s loan and lease portfolio aging analysis of the recorded investment in loans and leases as of September 30, 2021 and December 31, 2020:
The following tables present the Company’s impaired loans and specific valuation allowance at September 30, 2021 and December 31, 2020:
The following tables present the Company’s average investment in impaired loans and leases, and interest income recognized for the three and nine months ended September 30, 2021 and 2020:
The following table presents the Company’s nonaccrual loans and leases at September 30, 2021 and December 31, 2020:
During the three and nine months ended September 30, 2021 and 2020, there were no newly classified TDRs. For the three and nine months ended September 30, 2021 and 2020, the Company recorded no charge-offs related to TDRs. As of September 30, 2021 and December 31, 2020, TDRs had a related allowance of $51,000 and $52,000, respectively. During the three and nine months ended September 30, 2021, there were no TDRs for which there was a payment default within the first 12 months of the modification. The CARES Act provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined under the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers are considered current under the CARES Act if they are less than 30 days past due on their contractual payments at the time a modification program is implemented. In March 2020, the Company began offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. As of September 30, 2021, the Company had no loan and lease modifications outstanding related to the COVID-19 pandemic in accordance with the CARES Act. Accordingly, the Company does not account for such loan modifications as TDRs. Loan modifications in accordance with the CARES Act and related regulatory guidance are still subject to an evaluation in regard to determining whether or not a loan is deemed to be impaired. At September 30, 2021 and December 31, 2020, the balance of real estate owned included $0 and $32,000, respectively, of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At September 30, 2021 and December 31, 2020, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceeds were in process was $326,000 and $283,000, respectively. The following lists the components of the net investment in direct financing leases:
Leases serviced by First Bank Richmond for the benefit of others totaled approximately $0 and $86,000 at September 30, 2021 and December 31, 2020, respectively. Additionally, certain leases have been sold with partial recourse. First Bank Richmond estimates and records its obligation based upon historical loss percentages. At both September 30, 2021 and December 31, 2020, First Bank Richmond recorded a recourse obligation on leases sold of $0, and had a maximum exposure of $0 and $86,000, respectively, for these leases. The following table summarizes the future minimum lease payments receivable subsequent to September 30, 2021:
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Fair Values of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: 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 that are significant to the fair value of the assets or liabilities Recurring Measurements The following tables present the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2021 and December 31, 2020:
Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the nine months ended September 30, 2021. Available-for-Sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy, which includes equity securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include agency securities, obligations of state and political subdivisions, and mortgage-backed securities. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Nonrecurring Measurements The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2021 and December 31, 2020:
Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral-Dependent Impaired Loans, Net of ALLL The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by management by comparison to historical results. Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. Mortgage-Servicing Rights Mortgage-servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed and default rate. Due to the nature of the valuation inputs, mortgage-servicing rights are classified within Level 3 of the hierarchy. Mortgage-servicing rights are tested for impairment on a quarterly basis based on an independent valuation. The valuation is reviewed by management for accuracy and for potential impairment. Unobservable (Level 3) Inputs The following tables present the fair value measurement of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2021 and December 31, 2020:
Fair Value of Financial Instruments The following tables present estimated fair values of the Company’s financial instruments at September 30, 2021 and December 31, 2020:
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Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per ShareBasic EPS is computed by dividing net income allocated to common stock by the weighted average number of common shares outstanding during the period which excludes the participating securities. Diluted EPS includes the dilutive effect of additional potential common shares from stock compensation awards, but excludes awards considered participating securities. ESOP shares are not considered outstanding for EPS until they are earned. The following table presents the computation of basic and diluted EPS for the periods indicated:
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Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans 401(k) The Company has a retirement savings 401(k) plan, in which substantially all employees may participate. The Company matches employees' contributions at the rate of 50 percent for the first six percent of base salary contributed by participants. The Company’s expense for the plan was $49,000, $165,000, $50,000, and $156,000 for the three and nine months ended September 30, 2021 and 2020, respectively. Pension Plan The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (the “DB Plan”), an industry-wide, tax-qualified defined-benefit pension plan. The Company is in the process of terminating its participation in the Pentegra Defined Benefits Plan, which will require a payment of an amount based on the underfunded status of the plan, referred to as a withdrawal liability. In 2019, the Company estimated and accrued approximately $17.5 million for this withdrawal liability. This estimated withdrawal liability was calculated by plan administrators based on an interest rate of 2.35%, Pri-2012 mortality tables with white collar adjustments, and an assumed December 31, 2019 withdrawal date. The Company’s actual termination expense will be based on the cost of purchasing annuities through an insurance company, and may be higher or lower depending on a number of factors, including the interest rate environment and the valuation of plan assets. Due to the current low interest rate environment, terminating the DB Plan at this time would require the Company to incur a substantial additional expense over and above the amount presently accrued, as interest rates are even lower now than they were in 2019. As a result, the Company’s Board of Directors will continue to monitor and evaluate the timing of, and costs associated with, termination of the DB Plan, and it is currently uncertain when the termination of the DB Plan will be completed or what the actual costs of such termination will be. Any additional expenses associated with the termination of the DB Plan will negatively impact our results of operations in the future. We recorded ongoing expenses of $179,000 for the quarter ended September 30, 2021, in connection with the freezing of the DB Plan. Employee Stock Ownership Plan As part of the reorganization and related stock offering, the Company established an Employee Stock Ownership Plan, or ESOP, covering substantially all employees. The ESOP acquired 1,082,130 shares of Company common stock at an average price of $13.59 per share on the open market with funds provided by a loan from the Company. Dividends on unallocated shares used to repay the loan for the Company are recorded as a reduction of the loan or accrued interest, as applicable. Dividends on allocated shares paid to participants are reported as compensation expense. Unearned ESOP shares which have not yet been allocated to ESOP participants are excluded from the computation of average shares outstanding for earnings per share calculation. Accordingly, $13,112,188 and $13,664,373 of common stock acquired by the ESOP was shown as a reduction of stockholders’ equity at September 30, 2021 and December 31, 2020, respectively. Shares are released to participants proportionately as the loan is repaid. ESOP expense for the three and nine months ended September 30, 2021 and 2020 was $207,000, $581,000, $152,000, and $481,000, respectively.
Richmond Mutual Bancorporation, Inc. 2020 Equity Incentive Plan On September 15, 2020, the Company's stockholders approved the Richmond Mutual Bancorporation, Inc. 2020 Equity Incentive Plan ("2020 EIP") which provides for the grant to eligible participants of up to (i) 1,352,662 shares of Company common stock to be issued upon the exercise of stock options and stock appreciation rights and (ii) 541,065 shares of Company common stock to participants as restricted stock awards (which may be in the form of shares of common stock or share units giving the participant the right to receive shares of common stock at a specified future date). Restricted Stock Awards. On October 1, 2020, the Company awarded 449,086 shares of common stock under the 2020 EIP with a grant date fair value of $10.53 per share (total fair value of $4.7 million at issuance) to eligible participants. On April 1, 2021, the Company awarded an additional 4,000 shares of common stock under the 2020 EIP with a grant date fair value of $13.86 (total fair value of $55,000 at issuance) to eligible participants. These awards vest in equal annual installments with the first vesting occurring on June 30, 2021. Forfeited shares may be awarded to other eligible recipients in future grants until the 2020 EIP terminates in September 2030. The following table summarizes the restricted stock awards activity in the 2020 EIP during the nine months ended September 30, 2021.
Total compensation cost recognized in the income statement for restricted stock awards during the three and nine months ended September 30, 2021 was $232,000 and $851,000, respectively, and the related tax benefit recognized was $49,000 and $179,000, respectively. As of September 30, 2021, unrecognized compensation expense related to restricted stock awards was $3.4 million. Stock Option Plan. On October 1, 2020, the Company awarded options to purchase 1,095,657 of common stock under the 2020 EIP with an exercise price of $10.53 per share, the fair value of a share of the Company's common stock on the date of grant, to eligible participants. On April 1, 2021, the Company awarded options to purchase 8,000 shares of common stock under the 2020 EIP with an exercise price of $13.86 per share, the fair value of a share of the Company's common stock on the date of the grant, to eligible participants. These options awarded vest in equal annual installments with the first vesting occurring on June 30, 2021. Forfeited options may be awarded to other eligible recipients in future grants until the 2020 EIP terminates in September 2030. The following table summarizes the stock option activity in the 2020 EIP during the nine months ended September 30, 2021.
The fair value of options granted is estimated on the date of the grant using a Black Scholes model with the following assumptions:
A summary of the status of the Company stock option shares as of September 30, 2021 is presented below.
Total compensation cost recognized in the income statement for option-based payment arrangements for the three and nine months ended September 30, 2021 was $156,000 and $572,000, respectively, and the related tax benefit recognized was $17,000 and $63,000, respectively. As of September 30, 2021, unrecognized compensation expense related to the stock option awards was $2.3 million.
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Subsequent Event |
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Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventSubsequent to September 30, 2021 through November 12, 2021 the Company purchased 21,651 shares of the Company's common stock pursuant to the existing stock repurchase program, leaving 1,023,847 shares available for future repurchase. |
Basis of Presentation (Policies) |
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Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Loans | Loans For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The Company charges off residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance, which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value, less costs to sell when the loan is 120 days past due, charge-off of unsecured open-end loans when the loan is 90 days past due, and charge down to the net realizable value when other secured loans are 90 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months.
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Accounting Pronouncements | Accounting Pronouncements In March 2020, the novel coronavirus disease of 2019 ("COVID-19") was identified as a global pandemic and began affecting the health of large populations around the world. As a result of the spread of COVID-19, economic uncertainties arose which can ultimately affect the financial position, results of operations and cash flows of the Company, as well as the Company's customers. In response to economic concerns over COVID-19, in March 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was passed into law by the United States Congress ("Congress"). The CARES Act included relief for individual Americans, health care workers, small businesses and certain industries hit hard by the COVID-19 pandemic. The 2021 Consolidated Appropriations Act, passed by Congress in December 2020, extended certain provisions of the CARES Act affecting the Company into 2021. The CARES Act included several provisions designed to help financial institutions like the Company in working with their customers. Section 4013 of the CARES Act, as extended, allows a financial institution to elect to suspend generally accepted accounting principles and regulatory determinations with respect to qualifying loan modifications related to COVID-19 that would otherwise be categorized as a troubled debt restructuring ("TDR") until January 1, 2022. The Company has taken advantage of this provision to extend certain payment modifications to loan customers in need. As of September 30, 2021, the Company had no loans outstanding that were modified under the CARES Act guidance. The CARES Act also approved the Paycheck Protection Program ("PPP"), administered by the Small Business Administration ("SBA") with funding provided by financial institutions. The 2021 Consolidated Appropriations Act approved a new round of PPP loans in 2021. The PPP provides loans to eligible businesses through financial institutions like the Company, with loans being eligible for forgiveness of some or all of the principal amount by the SBA if the borrower meets certain requirements. The SBA guarantees repayment of the loans to the Company if the borrower's loan is not forgiven and is then not repaid by the borrower. The Company earns a 1% interest rate on PPP loans, plus a processing fee from the SBA for processing and originating a loan. The Company had originated approximately $103.1 million in PPP loans as of September 30, 2021, of which approximately $16.3 million were outstanding at September 30, 2021. The Jumpstart Our Business Startups Act (the "JOBS Act"), enacted in April 2012, made numerous changes to the federal securities laws to facilitate access to capital markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as and has elected to be an emerging growth company under the JOBS Act. An emerging growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company, but must make such election when the company is first required to file a registration statement. Such an election is irrevocable during the period a company is an emerging growth company. The Company has elected to comply with new or amended accounting pronouncements in the same manner as a private company. In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments-Credit Losses (Topic 326). The ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief” (ASU 2019-05). This ASU provides transition relief for entities adopting the FASB’s credit losses standard, ASU 2016-13 and allows companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for certain financial instruments. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (ASU 2019-04). This ASU clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. In October 2019, the FASB voted to extend the implementation of ASU No. 2016-13 for certain financial institutions including smaller reporting companies. As a result, ASU 2016-13 will be effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company is evaluating its current expected loss methodology on the loan and investment portfolios to identify the necessary modifications in accordance with this standard. The Company has not quantified the impact of these ASUs. The Company is evaluating its historical data available for use in adoption of the new credit loss standards. Additionally, we have formed an implementation team that meets on a regular basis to coordinate efforts of our accounting, credit and operations areas. We will continue to evaluate methodologies available to us under the new standard. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU applies to contracts, hedging relationships and other transactions that reference LIBOR or other rate references expected to be discontinued because of reference rate reform. The ASU permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract remeasurement or reassessment of a previous accounting determination. This ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not have a material impact on the Company's consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, “Receivables – Nonrefundable Fees and Other Costs” (“ASU 2020-08”). ASU 2020-08 clarifies that the Company should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of ASU 2020-08 did not have a material impact on the Company's consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 provides that state franchise or similar taxes that are based, at least in part on an entity’s income, be included in an entity’s income tax recognized as income-based taxes. The ASU further clarifies that the effect of any change in tax laws or rates used in the computation of the annual effective tax rate are required to be reflected in the first interim period that includes the enactment date of the legislation. Technical changes to eliminate exceptions to Topic 740 related to intra-period tax allocations for entities with losses from continuing operations, deferred tax liabilities related to change in ownership of foreign entities, and interim-period tax allocations for businesses with losses where the losses are expected to be realized. The amendments in ASU 2019-12 are effective for public business entities with fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases, with the exception of short-term leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. For the Company, the amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2021. Based on leases outstanding as of December 31, 2020, the new standard will not have a material impact on the Company’s balance sheet or income statement. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which provide entities with an additional (and optional) transition method to adopt the new lease standard. Under this new transition method, an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new lease standard will continue to be in accordance with current GAAP (Topic 842, Leases). The amendments in ASU 2018-11 also provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and certain criteria are met.
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Federal Agencies | Federal Agencies. The unrealized losses on the Company’s investments in direct obligations of U.S. federal agencies were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2021. |
Mortgage-Backed Securities - GSE Residential and SBA Pools | Mortgage-Backed Securities – GSE Residential and SBA Pools. The unrealized losses on the Company’s investment in mortgage-backed securities and SBA pools were caused by interest rate changes and illiquidity. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2021. |
State and Municipal Obligations | State and Municipal Obligations. The unrealized losses on the Company’s investments in securities of state and municipal obligations were caused by interest rate changes and illiquidity. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2021. |
Credit Quality Indicators and Characteristics | The Company rates all loans and leases by credit quality using the following designations: Grade 1 – Exceptional Exceptional loans and leases are top-quality loans to individuals whose financial credentials are well known to the Company. These loans and leases have excellent sources of repayment, are well documented and/or virtually free of risk (i.e., CD secured loans). Grade 2 – Quality Loans and Leases These loans and leases have excellent sources of repayment with no identifiable risk of collection, and they conform in all respects to Company policy and Indiana Department of Financial Institutions (“IDFI”) and Federal Deposit Insurance Corporation (“FDIC”) regulations. Documentation exceptions are minimal or are in the process of being corrected and are not of a type that could subsequently expose the Company to risk of loss. Grade 3 – Acceptable Loans This category is for “average” quality loans and leases. These loans and leases have adequate sources of repayment with little identifiable risk of collection and they conform to Company policy and IDFI/FDIC regulations. Grade 4 – Acceptable but Monitored Loans and leases in this category may have a greater than average risk due to financial weakness or uncertainty but do not appear to require classification as special mention or substandard loans. Loans and leases rated “4” need to be monitored on a regular basis to ascertain that the reasons for placing them in this category do not advance or worsen. Grade 5 – Special Mention Loans and leases in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company’s credit position at some future date. Special Mention loans and leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. This special mention rating is designed to identify a specific level of risk and concern about an asset’s quality. Although a special mention loan or leases has a higher probability of default than a pass rated loan or lease, its default is not imminent. Grade 6 – Substandard Loans and leases in this category are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Substandard loans and leases have a high probability of payment default, or they have other well-defined weaknesses. Such loans and leases have a distinct potential for loss; however, an individual loan’s or lease’s potential for loss does not have to be distinct for the loan or lease to be rated substandard. The following are examples of situations that might cause a loan or lease to be graded a “6”: •Cash flow deficiencies (losses) jeopardize future loan or lease payments. •Sale of non-collateral assets has become a primary source of loan or lease repayment. •The relationship has deteriorated to the point that sale of collateral is now the Company’s primary source of repayment, unless this was the original source of loan or lease repayment. •The borrower is bankrupt or for any other reason future repayment is dependent on court action. Grade 7 – Doubtful A loan or lease classified as doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable. A doubtful loan or lease has a high probability of total or substantial loss. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Because of high probability of loss, nonaccrual accounting treatment will be required for doubtful loans and leases. Grade 8 – Loss Loans and leases classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan or lease has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan or lease even though partial recovery may be effected in the future. No material changes have been made to the risk characteristics pertaining to the loan and lease portfolio contained in the Company's 2020 Form 10-K.
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Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: 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 that are significant to the fair value of the assets or liabilities
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:
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Investments Classified by Contractual Maturity Date | The amortized cost and fair value of securities at September 30, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Unrealized Gain (Loss) on Investments | The following tables show the Company’s investments by gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2021 and December 31, 2020:
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Loans, Leases and Allowance (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table shows the composition of the loan and lease portfolio at September 30, 2021 and December 31, 2020:
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Financing Receivable, Allowance for Credit Loss | The following tables present the activity in the allowance for loan and lease losses for the three and nine months ended September 30, 2021 and 2020:
The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases based on portfolio segment and impairment method as of September 30, 2021 and December 31, 2020:
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Financing Receivable Credit Quality Indicators | The following tables present the credit risk profile of the Company’s loan and lease portfolio based on rating category and payment activity as of September 30, 2021 and December 31, 2020:
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Schedule of Loans Classified by Aging Analysis | The following tables present the Company’s loan and lease portfolio aging analysis of the recorded investment in loans and leases as of September 30, 2021 and December 31, 2020:
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Impaired Financing Receivables | The following tables present the Company’s impaired loans and specific valuation allowance at September 30, 2021 and December 31, 2020:
The following tables present the Company’s average investment in impaired loans and leases, and interest income recognized for the three and nine months ended September 30, 2021 and 2020:
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Financing Receivable, Nonaccrual | The following table presents the Company’s nonaccrual loans and leases at September 30, 2021 and December 31, 2020:
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Direct Financing Lease, Lease Income | The following lists the components of the net investment in direct financing leases:
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Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | The following table summarizes the future minimum lease payments receivable subsequent to September 30, 2021:
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Fair Value of Financial Instruments (Tables) |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The following tables present the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2021 and December 31, 2020:
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Fair Value Measurements, Nonrecurring | The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2021 and December 31, 2020:
|
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present the fair value measurement of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2021 and December 31, 2020:
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Schedule of Fair Value of Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments at September 30, 2021 and December 31, 2020:
|
Earnings per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted EPS for the periods indicated:
|
Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan (ESOP) Disclosures | ESOP expense for the three and nine months ended September 30, 2021 and 2020 was $207,000, $581,000, $152,000, and $481,000, respectively.
|
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Schedule of Restricted Stock Awards | The following table summarizes the restricted stock awards activity in the 2020 EIP during the nine months ended September 30, 2021.
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Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes the stock option activity in the 2020 EIP during the nine months ended September 30, 2021.
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Fair Value Measurement Inputs and Valuation Techniques | The fair value of options granted is estimated on the date of the grant using a Black Scholes model with the following assumptions:
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Schedule of Nonvested Share Activity | A summary of the status of the Company stock option shares as of September 30, 2021 is presented below.
|
Basis of Presentation (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jul. 01, 2019 |
Sep. 30, 2021 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Proceeds from issuance initial public offering | $ 130,300 | |
Shares contributed to charitable foundation (in shares) | 500,000 | |
RMB-Maryland contribution to charitable foundation | $ 1,250 | |
Past due interest accrual period (in days) | 90 days | |
Minimum satisfaction performance period of nonaccrual loans (in months) | 6 months |
Accounting Pronouncements (Details) |
3 Months Ended | 9 Months Ended | 18 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2021
USD ($)
contract
|
Sep. 30, 2020
contract
|
Sep. 30, 2021
USD ($)
loan
contract
|
Sep. 30, 2020
contract
|
Sep. 30, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Financing Receivable, Impaired [Line Items] | ||||||
Number of loan and leases modified | contract | 0 | 0 | 0 | 0 | ||
PPP Loans Outstanding | $ 795,407,222 | $ 795,407,222 | $ 795,407,222 | $ 734,413,448 | ||
CARES Act | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Number of loan and leases modified | loan | 0 | |||||
Paycheck Protection Program | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
PPP Loans issued | 103,100,000 | |||||
PPP Loans Outstanding | $ 16,300,000 | $ 16,300,000 | $ 16,300,000 |
Investment Securities: Marketable Securities (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Investments, Debt and Equity Securities [Abstract] | |||||
Securities pledged as security, carrying value | $ 148,262,000 | $ 148,262,000 | $ 88,370,000 | ||
Proceeds from sales of securities available for sale | 1,316,000 | $ 12,560,000 | 5,296,929 | $ 34,737,656 | |
Available-for-sale securities, gross realized gains | 18,000 | 120,000 | 56,000 | 255,000 | |
Available-for-sale securities, gross realized losses | 0 | $ 3,000 | 0 | $ 59,000 | |
Investments reported at less than historical cost, fair value | $ 211,218,000 | $ 211,218,000 | $ 45,299,000 | ||
Investments reported at less than historical cost as percentage of total securities | 57.00% | 18.00% |
Loans, Leases and Allowance: Financing Receivable, Nonaccrual (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonaccrual | $ 6,226 | $ 803 |
Commercial mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonaccrual | 141 | 76 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonaccrual | 1,016 | 493 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonaccrual | 4,900 | 0 |
Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonaccrual | 121 | 214 |
Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonaccrual | $ 48 | $ 20 |
Loans, Leases and Allowance: Troubled Debt Restructuring (Details) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021
USD ($)
contract
|
Sep. 30, 2020
USD ($)
contract
|
Sep. 30, 2021
USD ($)
loan
contract
|
Sep. 30, 2020
USD ($)
contract
|
Dec. 31, 2020
USD ($)
|
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of loan and leases modified | contract | 0 | 0 | 0 | 0 | |
Troubled debt restructuring, write-down | $ 0 | $ 0 | $ 0 | $ 0 | |
Troubled debt restructurings related allowance | 51,000 | 51,000 | $ 52,000 | ||
Troubled debt restructuring, subsequent default payments | $ 0 | $ 0 | |||
CARES Act | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of loan and leases modified | loan | 0 |
Loans, Leases and Allowance: Real Estate Owned and Foreclosed Real Estate Policy (Details) - USD ($) |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Receivables [Abstract] | ||
Foreclosed residential real estate with physical possession | $ 0 | $ 32,000 |
Consumer mortgage loans secured by residential real estate properties in process of foreclosure | $ 326,000 | $ 283,000 |
Loans, Leases and Allowance: Direct Financing Lease, Lease Income (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Receivables [Abstract] | ||
Total minimum lease payments to be received | $ 135,495 | $ 129,114 |
Initial direct costs | 7,197 | 6,353 |
Direct financing lease revenue | 142,692 | 135,467 |
Less: Unearned income | (19,667) | (18,296) |
Net investment in direct finance leases | $ 123,025 | $ 117,171 |
Loans, Leases and Allowance: Leases Serviced for the Benefit of Others (Details) - USD ($) |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Receivables [Abstract] | ||
Leases serviced for the benefit of others | $ 0 | $ 86,000 |
Recorded recourse obligation on leases sold with recourse | 0 | 0 |
Maximum exposure of recorded recourse obligation on leases sold with recourse | $ 0 | $ 86,000 |
Loans, Leases and Allowance: Schedule of Future Minimum Lease Payments (Details) $ in Thousands |
Sep. 30, 2021
USD ($)
|
---|---|
Receivables [Abstract] | |
2021 | $ 14,225 |
2022 | 47,802 |
2023 | 34,852 |
2024 | 23,235 |
2025 | 12,277 |
Thereafter | 3,104 |
Payments to be received | $ 135,495 |
Earnings per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 3,082 | $ 2,532 | $ 8,426 | $ 7,490 |
Average shares outstanding (in shares) | 12,499,455 | 13,313,399 | 12,837,793 | 13,455,031 |
Less: average restricted stock award shares not vested (in shares) | 348,395 | 0 | 404,509 | 0 |
Less: average unearned ESOP Shares (in shares) | 978,260 | 1,032,367 | 991,686 | 1,045,788 |
Shares outstanding for Basic EPS (in shares) | 11,172,800 | 12,281,032 | 11,441,598 | 12,409,243 |
Additional dilutive shares (in shares) | 300,652 | 0 | 244,137 | 0 |
Shares outstanding for diluted EPS (in shares) | 11,473,452 | 12,281,032 | 11,685,735 | 12,409,243 |
Basic earnings per share (in USD per share) | $ 0.28 | $ 0.21 | $ 0.74 | $ 0.60 |
Diluted earnings per share (in USD per share) | $ 0.27 | $ 0.21 | $ 0.72 | $ 0.60 |
Benefit Plans: Employee Stock Ownership Plan (ESOP) Disclosures (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jul. 01, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Retirement Benefits [Abstract] | ||||||
ESOP shares expense | $ 207,000 | $ 152,000 | $ 580,576 | $ 480,999 | ||
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | ||||||
Earned ESOP shares (in shares) | 117,249 | 76,669 | 117,249 | 76,669 | ||
Unearned ESOP shares (in shares) | 964,881 | 1,005,461 | 964,881 | 1,005,461 | ||
Total ESOP shares (in shares) | 1,082,130 | 1,082,130 | 1,082,130 | 1,082,130 | 1,082,130 | |
Quoted per share price (in USD per share) | $ 13.59 | $ 15.76 | $ 13.66 | |||
Fair value of earned shares | $ 1,848,000 | $ 1,047,000 | $ 1,848,000 | $ 1,047,000 | ||
Fair value of unearned shares | $ 15,207,000 | $ 13,735,000 | $ 15,207,000 | $ 13,735,000 |
Benefit Plans: Restricted Stock Activity (Details) - Restricted Stock |
9 Months Ended |
---|---|
Sep. 30, 2021
$ / shares
shares
| |
Number of Restricted Shares | |
Nonvested, beginning balance (in shares) | shares | 431,501 |
Granted (in shares) | shares | 4,000 |
Vested (in shares) | shares | (87,106) |
Forfeited (in shares) | shares | 0 |
Nonvested, ending balance (in shares) | shares | 348,395 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in UDS per share) | $ / shares | $ 10.53 |
Granted (in USD per share) | $ / shares | 13.86 |
Vested (in USD per share) | $ / shares | 10.56 |
Forfeited (in USD per share) | $ / shares | 0 |
Nonvested, ending balance (in UDS per share) | $ / shares | $ 10.56 |
Benefit Plans: Stock Option Activity (Details) - $ / shares |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Number of Shares | |
Beginning balance (in shares) | 1,095,657 |
Granted (in shares) | 8,000 |
Exercised (in shares) | (12,116) |
Forfeited/expired (in shares) | 0 |
Ending balance (in shares) | 1,091,541 |
Exercisable at end of year (in shares) | 241,083 |
Weighted-Average Exercise Price | |
Balance at beginning of year (in USD per share) | $ 10.53 |
Grant date fair value (in USD per share) | 13.86 |
Exercised (in USD per share) | 10.53 |
Forfeited/expired (in USD per share) | 0 |
Balance at end of year (in USD per share) | 10.55 |
Exercisable at end of year (in USD per share) | $ 10.55 |
Benefit Plans: Fair Value Measurement of Stock Options (Details) |
Apr. 01, 2021 |
---|---|
Retirement Benefits [Abstract] | |
Dividend yields | 1.90% |
Volatility factors of expected market price of common stock | 26.98% |
Risk-free interest rates | 1.16% |
Expected life of options (in years) | 6 years 1 month 6 days |
Benefit Plans: Stock Option Status (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021
$ / shares
shares
| |
Shares | |
Non-vested, beginning of year (in shares) | shares | 1,055,077 |
Vested (in shares) | shares | (212,619) |
Granted (in shares) | shares | 8,000 |
Forfeited (in shares) | shares | 0 |
Non-vested, end of year (in shares) | shares | 850,458 |
Weighted Average Grant Date Fair Value | |
Non-vested, beginning of year (in USD per share) | $ / shares | $ 2.91 |
Vested (in USD per share) | $ / shares | 2.91 |
Granted (in USD per share) | $ / shares | 3.02 |
Forfeited (in USD per share) | $ / shares | 0 |
Non-vested, end of year (in USD per share) | $ / shares | $ 2.91 |
Subsequent Event (Details) - Subsequent Event |
1 Months Ended |
---|---|
Nov. 12, 2021
shares
| |
Subsequent Event [Line Items] | |
Shares repurchased (in shares) | 21,651 |
Remaining number of shares authorized to be repurchased (in shares) | 1,023,847 |
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