|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
None
|
Not Applicable
|
Not Applicable
|
Large accelerated filer ☐
|
|
Non-accelerated filer ☐
|
Smaller reporting company |
Emerging growth company |
PART I. - FINANCIAL INFORMATION
|
Page
|
||
|
|
|
|
|
Item 1 - Financial Statements
|
|
|
|
|
3
|
|
|
|
4
|
|
|
|
5
|
|
|
|
6
|
|
|
|
7
|
|
|
|
8
|
|
|
|
|
|
|
30
|
||
|
|
|
|
|
50 | ||
|
|
|
|
|
Item 4 - Controls and Procedures
|
52
|
|
|
|
|
|
PART II. - OTHER INFORMATION
|
|
||
|
|
|
|
|
Item 1 – Legal Proceedings
|
53
|
|
|
Item 1A – Risk Factors
|
53
|
|
|
53
|
||
|
Item 3 – Defaults upon Senior Securities
|
53
|
|
|
Item 4 – Mine Safety Disclosures
|
53
|
|
|
Item 5 – Other Information
|
54
|
|
|
Item 6 – Exhibits
|
54
|
|
|
55
|
Item 1.
|
Financial Statements
|
(Dollars in thousands, except share and per share amounts)
|
March 31,
2024
|
December 31,
2023
|
||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest bearing deposits with banks
|
|
|
||||||
Total cash and cash equivalents
|
|
|
||||||
Securities available-for-sale, amortized cost $
|
|
|
||||||
Securities held-to-maturity, fair
value $
|
|
|
||||||
Allowance for credit losses - securities held-to-maturity
|
( |
) | ( |
) | ||||
Total investment securities
|
|
|
||||||
Non-marketable securities
|
|
|
||||||
Loans and leases held-for-investment, net of unearned income
|
|
|
||||||
Allowance for credit losses - loans and leases
|
(
|
)
|
(
|
)
|
||||
Loans and leases held for investment, net
|
|
|
||||||
Bank-owned life insurance
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Deferred income tax assets
|
|
|
||||||
Accrued interest receivable
|
|
|
||||||
Goodwill
|
|
|
||||||
Other intangibles
|
|
|
||||||
Other real estate owned
|
|
|
||||||
Other assets
|
|
|
||||||
Total Assets
|
$
|
|
$
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Deposits:
|
||||||||
Non-interest bearing
|
$
|
|
$
|
|
||||
Interest bearing:
|
||||||||
Demand
|
|
|
||||||
Savings and money market
|
|
|
||||||
Certificates of deposit
|
|
|
||||||
Total interest bearing
|
|
|
||||||
Total deposits
|
|
|
||||||
Federal Home Loan Bank advances |
||||||||
Subordinated debentures
|
|
|
||||||
Interest payable and other liabilities
|
|
|
||||||
Total Liabilities
|
|
|
||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Preferred shares,
|
|
|
||||||
Common shares, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss, net of taxes
|
(
|
)
|
(
|
)
|
||||
TOTAL SHAREHOLDERS’ EQUITY
|
|
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
|
$
|
|
|
Three Months Ended
March 31,
|
|||||||
(Dollars in thousands, except share and per share amounts)
|
2024
|
2023
|
||||||
Interest income
|
||||||||
Interest and fees on loans and leases
|
$
|
|
$
|
|
||||
Interest and dividends on investment securities
|
|
|
||||||
Interest on deposits with others
|
|
|
||||||
Total interest income
|
|
|
||||||
|
||||||||
Interest expense
|
||||||||
Deposits
|
|
|
||||||
Borrowed funds
|
|
|
||||||
Subordinated debentures
|
|
|
||||||
Total interest expense
|
|
|
||||||
Net interest income
|
|
|
||||||
Provision for credit losses
|
|
|
||||||
Net interest income after provision for credit losses
|
|
|
||||||
Non-interest income
|
||||||||
Card processing
|
|
|
||||||
Gain on BOLI death benefit
|
|
|
||||||
Net gain on deferred compensation benefits
|
|
|
||||||
Service charges on deposit accounts
|
|
|
||||||
Increase in cash surrender value of BOLI
|
|
|
||||||
Net loss on sale of securities available-for-sale
|
|
(
|
)
|
|||||
Other
|
|
|
||||||
Total non-interest income
|
|
|
||||||
Non-interest expense
|
||||||||
Salaries and employee benefits
|
|
|
||||||
Data processing
|
|
|
||||||
Occupancy
|
|
|
||||||
Net gain on deferred compensation benefits
|
|
|
||||||
Deposit insurance
|
|
|
||||||
Professional services
|
|
|
||||||
Marketing
|
|
|
||||||
Other
|
|
|
||||||
Total non-interest expense
|
|
|
||||||
INCOME BEFORE INCOME TAXES
|
|
|
||||||
Income tax expense
|
|
|
||||||
NET INCOME
|
$
|
|
$
|
|
||||
|
||||||||
Earnings per common share:
|
||||||||
Basic
|
$
|
|
$
|
|
||||
Diluted
|
$
|
|
$
|
|
||||
|
||||||||
Weighted average number of common shares
|
||||||||
Basic
|
|
|
||||||
Diluted
|
|
|
Three Months Ended
March 31,
|
||||||||
(Dollars in thousands)
|
2024
|
2023
|
||||||
Net income
|
$
|
|
$
|
|
||||
Other comprehensive income | ||||||||
Unrealized (losses)/gains on available-for-sale securities
|
(
|
)
|
|
|||||
Reclassification adjustment for losses on available-for-sale securities
|
|
|
||||||
Amortization of unrealized loss on securities transferred to held-to-maturity
|
(
|
)
|
(
|
)
|
||||
Net unrealized (losses)/gains on
available-for-sale securities
|
(
|
)
|
|
|||||
Income tax benefit/(expense)
|
|
(
|
)
|
|||||
Other comprehensive (loss)/income, net of
tax
|
(
|
)
|
|
|||||
Total comprehensive income
|
$
|
|
$
|
|
For the three months ended March 31, 2024 and 2023
|
||||||||||||||||||||||||
(Dollars in thousands, except share amounts)
|
Common
Shares
|
Amount
|
Additional
Paid-In
Capital
|
Retained Earnings
|
Accumulated
Other
Comprehensive
(Loss)/Income
|
Total
|
||||||||||||||||||
Balance as of December 31, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income, net of tax
|
-
|
|
|
|
|
|
||||||||||||||||||
Repurchase of common stock
|
(
|
)
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||
Balance as of March 31, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
|
||||||||||||||||||||||||
Balance as of December 31, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
|
|
|
||||||||||||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
-
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Repurchase of common stock
|
(
|
)
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||
Balance as of March 31, 2024
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Three Months Ended
March 31,
|
||||||||
(Dollars in thousands)
|
2024
|
2023
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for credit losses
|
|
|
||||||
Depreciation and amortization
|
|
|
||||||
Net amortization of securities premiums and discounts
|
(
|
)
|
|
|||||
Increase in cash surrender value of BOLI
|
(
|
)
|
(
|
)
|
||||
Gain on BOLI death benefit
|
( |
) | ||||||
Decrease in deferred income taxes, net
|
|
|
||||||
Loss on sale of securities available-for-sale
|
|
|
||||||
Net changes in:
|
||||||||
Other assets
|
|
|
||||||
Other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Net change in loans and leases held-for-investment
|
(
|
)
|
|
|||||
Purchase of available-for-sale securities
|
(
|
)
|
(
|
)
|
||||
Purchase of held-to-maturity securities
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales, maturities, calls and pay downs of available-for-sale securities
|
|
|
||||||
Proceeds from maturities, calls and pay downs of held-to-maturity securities
|
|
|
||||||
Purchase of premises and equipment
|
(
|
)
|
(
|
)
|
||||
Purchase of other investments
|
(
|
)
|
(
|
)
|
||||
Proceeds from bank-owned life insurance | ||||||||
Net cash (used in)/ provided by investing activities
|
(
|
)
|
|
|||||
Cash flows from financing activities:
|
||||||||
Net increase/(decrease) in deposits
|
|
(
|
)
|
|||||
Federal Home Loan Bank advances |
||||||||
Net cash used in share repurchases of common stock
|
(
|
)
|
(
|
)
|
||||
Net
cash provided by (used in) financing activities
|
|
(
|
)
|
|||||
Net change in cash and cash equivalents
|
|
(
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
|
|
||||||
Cash and cash equivalents, end of period
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
|
$
|
|
||||
Income taxes paid |
$ | $ | ||||||
Supplemental disclosures of non-cash transactions:
|
||||||||
Net change in unrealized gain/(losses) on securities
available-for-sale
|
$ | $ | ( |
) |
|
Amortized | Gross Unrealized | |
|||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
As of March 31, 2024 | ||||||||||||||||
U.S. Government-sponsored securities
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Mortgage-backed securities (1)
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations (1)
|
||||||||||||||||
Corporate securities
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
|
$
|
|
Amortized
|
Gross Unrealized
|
|
||||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
As of December 31, 2023
|
||||||||||||||||
U.S. Government-sponsored securities
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Mortgage-backed securities (1)
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations (1)
|
||||||||||||||||
Corporate securities | ||||||||||||||||
Other
|
|
|
|
|
||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
|
$
|
|
Allowance |
||||||||||||||||||||
Amortized
|
Gross Unrealized
|
|
for Credit | |||||||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||
As of March 31, 2024 | ||||||||||||||||||||
Mortgage-backed securities (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | |||||||||||
Collateralized mortgage obligations (1)
|
||||||||||||||||||||
Municipal securities
|
||||||||||||||||||||
Total held-to-maturity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
Allowance |
||||||||||||||||||||
|
Amortized |
Gross Unrealized
|
for Credit
|
|||||||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||
As of December 31, 2023
|
||||||||||||||||||||
Mortgage-backed securities(1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Collateralized mortgage obligations(1)
|
|
|
|
|
|
|||||||||||||||
Municipal securities
|
||||||||||||||||||||
Total held-to-maturity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
March 31, 2024
|
|||||||||||||||||||||||
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
||||||||||||||||||
Available-for-Sale Securities
|
||||||||||||||||||||||||
U.S. Government-sponsored securities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Mortgage-backed securities(1)
|
|
|
|
|
|
|
||||||||||||||||||
Collateralized mortgage obligations(1)
|
|
|
|
|
|
|
||||||||||||||||||
Corporate securities
|
|
|
|
|
|
|
||||||||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
December 31, 2023
|
|||||||||||||||||||||||
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
||||||||||||||||||
Available-for-Sale Securities
|
||||||||||||||||||||||||
U.S. Government-sponsored securities
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||
Mortgage-backed securities(1)
|
|
|
|
|
|
|
||||||||||||||||||
Collateralized Mortgage Obligations(1) | ||||||||||||||||||||||||
Corporate securities | ||||||||||||||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
March 31, 2024
|
|||||||||||||||
(Dollars in thousands)
|
Municipal
securities
|
Mortgage-backed
securities
|
Collateralized
mortgage
obligations
|
Total
|
||||||||||||
Allowance for credit losses - securities
|
||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Provision for credit losses
|
|
|
|
|
||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
||||||||||||||||
(Dollars in thousands)
|
Municipal
securities
|
Mortgage-backed
securities
|
Collateralized
mortgage
obligations
|
Total
|
||||||||||||
Allowance for credit losses - securities
|
||||||||||||||||
Beginning Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Provision for credit losses
|
|
|
|
|
||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Available-for-Sale
|
Held-to-Maturity
|
||||||||||||||
(Dollars in
thousands)
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
||||||||||||
Securities maturing in:
|
||||||||||||||||
One year or less
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
After one year through five years
|
|
|
|
|
||||||||||||
After five years through ten years
|
|
|
|
|
||||||||||||
After ten years
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Held-to-Maturity
|
||||||||||||||||
Amortized Cost
|
||||||||||||||||
(Dollars in thousands)
|
AAA/AA/A
|
BBB/BB/B
|
Not Rated
|
Total
|
||||||||||||
March 31, 2024
|
||||||||||||||||
Municipal securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Held-to-Maturity
|
|||||||||||||||
Amortized Cost
|
|||||||||||||||
(Dollars in thousands)
|
AAA/AA/A
|
BBB/BB/B
|
Not Rated
|
Total
|
|||||||||||
December 31, 2023
|
|||||||||||||||
Municipal securities
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands)
|
Gross Proceeds
|
Gross Gains
|
Gross Losses
|
|||||||||
Three months ended March 31, 2024
|
$
|
|
$
|
|
$
|
|
||||||
Three months ended March 31, 2023
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands)
|
March 31,
2024
|
December 31,
2023
|
||||||
Loans
and leases held-for-investment, net
|
||||||||
Real estate:
|
||||||||
Commercial
|
$
|
|
$
|
|
||||
Agricultural
|
|
|
||||||
Residential and home equity
|
|
|
||||||
Construction
|
|
|
||||||
Total real estate
|
|
|
||||||
Commercial & industrial
|
|
|
||||||
Agricultural
|
|
|
||||||
Commercial leases
|
|
|
||||||
Consumer and other
|
|
|
||||||
Total gross loans and leases
|
|
|
||||||
Unearned income
|
(
|
)
|
(
|
)
|
||||
Total net loans and leases
|
|
|
||||||
Allowance for credit losses
|
(
|
)
|
(
|
)
|
||||
Total loans and leases held-for-investment, net
|
$
|
|
$
|
|
March 31, 2024
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Current
|
30-89 Days
Past Due
|
90+ Days
Past Due
|
Non-accrual
|
Total
Past Due
|
Total
|
||||||||||||||||||
Loans and leases held-for-investment, net
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Agricultural
|
|
|
|
|
|
|||||||||||||||||||
Residential and home equity
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Total real estate
|
|
|
|
|
|
|
||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Commercial leases
|
|
|
|
|
|
|
||||||||||||||||||
Consumer and other
|
|
|
|
|
|
|
||||||||||||||||||
Total loans and leases, net
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
December 31, 2023
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Current
|
30-89 Days
Past Due
|
90+ Days
Past Due
|
Non-accrual
|
Total
Past Due
|
Total
|
||||||||||||||||||
Loans and leases held-for-investment, net
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Residential and home equity
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Total real estate
|
|
|
|
|
|
|
||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Commercial leases
|
|
|
|
|
|
|
||||||||||||||||||
Consumer and other
|
|
|
|
|
|
|
||||||||||||||||||
Total loans and leases, net
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2024
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Pass
|
Special
Mention
|
Sub-
standard
|
Doubtful
|
Total Loans
& Leases
|
Total
Allowance
for Credit
Losses
|
||||||||||||||||||
Loans and leases held-for-investment, net
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Residential and home equity
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Total real estate
|
|
|
|
|
|
|
||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Commercial leases
|
|
|
|
|
|
|
||||||||||||||||||
Consumer and other
|
|
|
|
|
|
|
||||||||||||||||||
Total loans and leases, net
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Pass
|
Special Mention
|
Sub-
standard
|
Doubtful
|
Total Loans
& Leases
|
Total
Allowance
for Credit
Losses
|
||||||||||||||||||
Loans and leases held-for-investment, net
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Residential and home equity
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Total real estate
|
|
|
|
|
|
|
||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Commercial leases
|
|
|
|
|
|
|
||||||||||||||||||
Consumer and other
|
|
|
|
|
|
|
||||||||||||||||||
Total loans and leases, net
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2024
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
2024
|
2023
|
2022
|
2021
|
2020
|
Prior
|
Revolving
Loans
Amortized
Cost
|
Total
|
||||||||||||||||||||||||
Net loans and leases held-for-investment
|
||||||||||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Commercial
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Agricultural
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Residential and home equity
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
||||||||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Residential and home equity
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Residential and home equity
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Construction
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
||||||||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total construction
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Construction
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total Real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Commercial & industrial
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Commercial & industrial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Commercial & industrial
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||
Pass
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Special mention
|
||||||||||||||||||||||||||||||||
Substandard
|
||||||||||||||||||||||||||||||||
Doubtful
|
||||||||||||||||||||||||||||||||
Total Agricultural
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior |
Revolving
Loans
Amortized
Cost
|
Total | ||||||||||||||||||||||||
Net loans and leases held for investment | ||||||||||||||||||||||||||||||||
Commercial leases
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Commercial leases
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Commercial leases
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Consumer and other
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Consumer and other
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Consumer and other
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total net loans and leases
|
||||||||||||||||||||||||||||||||
Pass
|
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Special mention
|
||||||||||||||||||||||||||||||||
Substandard
|
||||||||||||||||||||||||||||||||
Doubtful
|
||||||||||||||||||||||||||||||||
Total net loans and leases
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Total current-period gross charge-offs
|
$ | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023
|
||||||||||||||||||||||||||||||||
|
Term Loans Amortized Cost Basis by Origination Year
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Revolving
Loans
Amortized
Cost
|
Total
|
||||||||||||||||||||||||
Net loans and leases held for investment
|
||||||||||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Commercial
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Agricultural
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Residential and home equity
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Residential and home equity
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Residential and home equity
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Construction
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total construction
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Construction
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total Real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial & industrial
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Commercial & industrial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Commercial & industrial
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Agricultural
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
December
31, 2023 |
|||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
2023
|
2022
|
2021
|
2020 |
2019
|
Prior
|
Revolving
Loans
Amortized
Cost
|
Total | ||||||||||||||||||||||||
Net loans and leases held for investment
|
||||||||||||||||||||||||||||||||
Commercial leases
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Commercial leases
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Commercial leases
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Consumer and other
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Consumer and other
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Consumer and other
|
||||||||||||||||||||||||||||||||
Current-period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Total net loans and leases
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total net loans and leases
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Total current-period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31,
|
December 31,
|
|||||||
(Dollars in thousands)
|
2024
|
2023
|
||||||
Balance at beginning of the period
|
$
|
|
$
|
|
||||
New loans or advances during year
|
|
|
||||||
Repayments
|
(
|
)
|
(
|
)
|
||||
Balance at end of period
|
$
|
|
$
|
|
March 31, 2024
|
||||||||||||
(Dollars in thousands)
|
Real Estate
|
Vehicles and
Equipment
|
Total
|
|||||||||
Collateral dependent loans and leases
|
||||||||||||
Real estate:
|
||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
||||||
Agricultural
|
|
|
|
|||||||||
Residential and home equity
|
|
|
|
|||||||||
Construction
|
|
|
|
|||||||||
Total real estate
|
|
|
|
|||||||||
Commercial & industrial
|
|
|
|
|||||||||
Agricultural
|
|
|
|
|||||||||
Commercial leases
|
|
|
|
|||||||||
Consumer and other
|
|
|
|
|||||||||
Total gross loans and leases
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
||||||||||||
(Dollars in thousands)
|
Real Estate
|
Vehicles and
Equipment
|
Total
|
|||||||||
Collateral dependent loans and leases
|
||||||||||||
Real estate:
|
||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
||||||
Agricultural
|
|
|
|
|||||||||
Residential and home equity
|
|
|
|
|||||||||
Construction
|
|
|
|
|||||||||
Total real estate
|
|
|
|
|||||||||
Commercial & industrial
|
|
|
|
|||||||||
Agricultural
|
|
|
|
|||||||||
Commercial leases
|
|
|
|
|||||||||
Consumer and other
|
|
|
|
|||||||||
Total gross loans and leases
|
$
|
|
$
|
|
$
|
|
For the Three Months Ended March 31,
2024
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial &
Agricultural
R/E |
Construction
|
Residential &
Home Equity
|
Commercial
&
Agricultural
|
Commercial
Leases
|
Consumer
& Other |
Total
|
|||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Provision for/(recapture of) for credit losses
|
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Charge-offs
|
( |
) | ( |
) | ||||||||||||||||||||||||
Recoveries
|
||||||||||||||||||||||||||||
Net (charge-offs) / recoveries
|
||||||||||||||||||||||||||||
Balance at end of period
|
$ | $ | $ | $ | $ | $ | $ |
Year Ended December 31, 2023
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial &
Agricultural
R/E |
Construction
|
Residential &
Home Equity
|
Commercial
&
Agricultural
|
Commercial
Leases
|
Consumer
& Other |
Total
|
|||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||
Balance at beginning of year
|
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Provision for/(recapture of) credit losses
|
( |
) | ||||||||||||||||||||||||||
Charge-offs
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Recoveries
|
||||||||||||||||||||||||||||
Net (charge-offs) / recoveries
|
( |
) | ||||||||||||||||||||||||||
Balance at end of year
|
$ | $ | $ | $ | $ | $ | $ |
(Dollars in thousands)
|
March 31,
2024
|
December 31,
2023
|
||||||
Certificates of deposit:
|
||||||||
Certificates of deposit less than or equal to $250,000
|
$
|
|
$
|
|
||||
Certificates of deposit greater than $250,000
|
|
|
||||||
Total certificates of deposit
|
$
|
|
$
|
|
(Dollars in thousands)
|
Amount
|
|||
2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
Thereafter |
||||
Total certificates of deposit
|
$
|
|
•
|
Level 1 – inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
|
•
|
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are
not active, and inputs that are observable for the assets or liabilities, either directly or indirectly (such as interest rates, yield curves, and prepayment speeds).
|
•
|
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value. These may be internally developed, using the Company’s best information and assumptions that a market
participant would consider.
|
March 31, 2024
|
Fair Value Measurements
|
|||||||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
Fair valued on a recurring basis:
|
||||||||||||||||||||
Available-for-sale securities
|
||||||||||||||||||||
U.S. Government-sponsored securities
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|||||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
|
|||||||||||||||
Corporate securities
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Fair valued on a non-recurring basis:
|
||||||||||||||||||||
Collateral dependent loans | $ |
$ |
$ |
$ |
$ |
|||||||||||||||
Other real estate owned
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
Fair valued on a recurring basis:
|
||||||||||||||||||||
Available-for-sale securities
|
||||||||||||||||||||
U.S. Government-sponsored securities
|
$ |
|
$ |
|
$ |
$ |
|
$ |
|
|||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|||||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
|
|||||||||||||||
Corporate securities | ||||||||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Fair valued on a non-recurring basis:
|
||||||||||||||||||||
Collateral dependent loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Other real estate owned
|
|
|
|
|
|
March 31, 2024
|
Fair Value Measurements
|
|||||||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Held-to-maturity securities
|
|
|
|
|
|
|||||||||||||||
Non-marketable securities, at cost
|
|
|
|
|
|
|||||||||||||||
Loans and leases, net
|
|
|
|
|
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Total deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Federal Home Loan Bank advances |
||||||||||||||||||||
Subordinated debentures
|
|
|
|
|
|
December 31, 2023
|
Fair Value Measurements
|
|||||||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Held-to-maturity securities
|
|
|
|
|
|
|||||||||||||||
Non-marketable securities, at cost
|
|
|
|
|
|
|||||||||||||||
Loans and leases, net
|
|
|
|
|
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Total deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Subordinated debentures
|
|
|
|
|
|
(Dollars in thousands)
|
March 31,
2024
|
December 31,
2023
|
||||||
Commitments to extend credit, including unsecured commitments of $
|
$
|
|
$
|
|
||||
Stand-by letters of credit, including unsecured commitments of $
|
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
◾ |
changes in general economic conditions, either nationally, in California, or in our local markets;
|
◾ |
inflation, changes in interest rates, securities market volatility and monetary fluctuations;
|
◾ |
increases in competitive pressures among financial institutions and businesses offering similar products and services;
|
◾ |
risks associated with negative events in the banking industry in the past year, and any legislative and/or bank regulatory actions, that could potentially impact earnings, liquidity and/or the availability of capital or which could
increase the cost of our deposit insurance by the FDIC;
|
◾ |
higher defaults in our loan and lease portfolio than we expect;
|
◾ |
changes in management’s estimate of the adequacy of the allowance for credit losses;
|
◾ |
risks associated with our growth and expansion strategy and related costs;
|
◾ |
increased lending risks associated with our high concentration of real estate loans;
|
◾ |
legislative or regulatory changes or changes in accounting principles, policies or guidelines;
|
◾ |
technological changes;
|
◾ |
operational risks, including processing, information systems, cybersecurity, vendor problems, business interruption, and fraud;
|
◾ |
regulatory or judicial proceedings; and
|
◾ |
other factors and risks including those described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report and the Company’s Annual Report on Form 10-K for the year
ended December 31, 2023.
|
• |
Tangible common equity ratio and tangible book value per common share: Given that the use of these measures is prevalent among banking regulators, investors, and analysts, we disclose them in
addition to the related GAAP measures of return on average equity and book value per common share. The reconciliations of these non-GAAP measurements to the GAAP measurements are presented in the following tables for and as of the periods
presented.
|
Tangible Common Equity Ratio and
Tangible Book Value Per Common Share
|
March 31,
2024
|
December 31,
2023
|
March 31,
2023
|
||||||||||
(Dollars in thousands, except per share data)
|
|||||||||||||
Shareholders' equity
|
$
|
565,217
|
$
|
549,755
|
$
|
508,902
|
|||||||
Less: Intangible assets
|
13,282
|
13,419
|
13,849
|
||||||||||
Tangible common equity
|
$
|
551,935
|
$
|
536,336
|
$
|
495,053
|
|||||||
Total Assets
|
$
|
5,714,573
|
$
|
5,308,928
|
$
|
5,133,771
|
|||||||
Less: Intangible assets
|
13,282
|
13,419
|
13,849
|
||||||||||
Tangible assets
|
$
|
5,701,291
|
$
|
5,295,509
|
$
|
5,119,922
|
|||||||
Tangible common equity ratio(1)
|
9.68
|
%
|
10.13
|
%
|
9.67
|
%
|
|||||||
Book value per common share(2)
|
$
|
760.96
|
$
|
735.00
|
$
|
667.04
|
|||||||
Tangible book value per common share(3)
|
$
|
743.08
|
$
|
717.05
|
$
|
648.88
|
|||||||
Common shares outstanding
|
742,770
|
747,971
|
762,931
|
Three Months Ended
|
||||||||||||
(dollars in thousands, except per share amounts)
|
March 31,
2024
|
December 31,
2023
|
March 31,
2023
|
|||||||||
Earnings Summary:
|
||||||||||||
Interest income
|
$
|
66,641
|
$
|
67,392
|
$
|
59,632
|
||||||
Interest expense
|
14,928
|
13,592
|
3,910
|
|||||||||
Net interest income
|
51,713
|
53,800
|
55,722
|
|||||||||
Provision for credit losses
|
-
|
2,350
|
1,500
|
|||||||||
Non-interest income
|
5,075
|
2,401
|
3,460
|
|||||||||
Non-interest expense
|
25,521
|
24,866
|
28,183
|
|||||||||
Income before taxes
|
31,267
|
28,985
|
29,499
|
|||||||||
Income tax expense
|
8,544
|
7,560
|
5,952
|
|||||||||
Net Income
|
$
|
22,723
|
$
|
21,425
|
$
|
23,547
|
||||||
Per Common Share Data:
|
||||||||||||
Diluted earnings per common share
|
$
|
30.56
|
$
|
28.55
|
$
|
30.80
|
||||||
Book value per common share
|
$
|
760.96
|
$
|
735.00
|
$
|
667.04
|
||||||
Tangible book value per common share(1)
|
$
|
743.08
|
$
|
717.05
|
$
|
648.88
|
||||||
Performance Ratios:
|
||||||||||||
Return on average assets
|
1.71
|
%
|
1.63
|
%
|
1.80
|
%
|
||||||
Return on average equity
|
16.33
|
%
|
16.54
|
%
|
18.93
|
%
|
||||||
Net interest margin (tax equivalent)
|
4.14
|
%
|
4.24
|
%
|
4.55
|
%
|
||||||
Yield on average loans and leases (tax equivalent)
|
6.09
|
%
|
6.10
|
%
|
5.69
|
%
|
||||||
Cost of average total deposits
|
1.27
|
%
|
1.14
|
%
|
0.32
|
%
|
||||||
Efficiency ratio
|
44.94
|
%
|
44.24
|
%
|
47.62
|
%
|
||||||
Loan-to-deposit ratio
|
74.73
|
%
|
78.52
|
%
|
75.73
|
%
|
||||||
Percentage of checking deposits to total deposits
|
49.39
|
%
|
51.76
|
%
|
55.89
|
%
|
||||||
Capital Ratios Bancorp:
|
||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
12.73
|
%
|
12.30
|
%
|
12.19
|
%
|
||||||
Tier 1 capital to risk-weighted assets
|
12.95
|
%
|
12.53
|
%
|
12.43
|
%
|
||||||
Risk-based capital to risk-weighted assets
|
14.21
|
%
|
13.78
|
%
|
13.68
|
%
|
||||||
Tier 1 leverage capital ratio
|
10.83
|
%
|
10.38
|
%
|
9.94
|
%
|
||||||
Tangible common equity ratio(1)
|
9.68
|
%
|
10.13
|
%
|
9.67
|
%
|
Three Months Ended March 31,
|
||||||||||||||||||||||||
2024
|
2023
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Average Balance
|
Interest Income / Expense
|
Average Yield / Rate
|
Average Balance
|
Interest Income / Expense
|
Average Yield / Rate
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold
|
$
|
332,575
|
$
|
4,530
|
5.48
|
%
|
$
|
521,147
|
$
|
5,961
|
4.64
|
%
|
||||||||||||
Investment Securities:(1)
|
||||||||||||||||||||||||
Taxable securities
|
969,234
|
5,708
|
2.37
|
%
|
967,699
|
4,805
|
2.01
|
%
|
||||||||||||||||
Non-taxable securities(2)
|
63,079
|
762
|
4.83
|
%
|
57,513
|
704
|
4.90
|
%
|
||||||||||||||||
Total investment securities
|
1,032,313
|
6,470
|
2.52
|
%
|
1,025,212
|
5,509
|
2.18
|
%
|
||||||||||||||||
Loans:(3)
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
1,322,337
|
17,622
|
5.36
|
%
|
1,280,959
|
16,649
|
5.27
|
%
|
||||||||||||||||
Agricultural
|
725,078
|
10,322
|
5.73
|
%
|
715,756
|
9,614
|
5.45
|
%
|
||||||||||||||||
Residential and home equity
|
401,578
|
4,792
|
4.80
|
%
|
387,369
|
4,095
|
4.29
|
%
|
||||||||||||||||
Construction
|
225,430
|
3,898
|
6.95
|
%
|
169,913
|
2,937
|
7.01
|
%
|
||||||||||||||||
Total real estate
|
2,674,423
|
36,634
|
5.51
|
%
|
2,553,997
|
33,295
|
5.29
|
%
|
||||||||||||||||
Commercial & industrial
|
499,071
|
9,261
|
7.46
|
%
|
465,383
|
7,624
|
6.64
|
%
|
||||||||||||||||
Agricultural
|
313,653
|
6,479
|
8.31
|
%
|
280,467
|
5,204
|
7.52
|
%
|
||||||||||||||||
Commercial leases
|
168,526
|
2,946
|
7.03
|
%
|
116,948
|
1,805
|
6.26
|
%
|
||||||||||||||||
Consumer and other
|
5,619
|
88
|
6.30
|
%
|
5,580
|
80
|
5.81
|
%
|
||||||||||||||||
Total loans and leases
|
3,661,292
|
55,408
|
6.09
|
%
|
3,422,375
|
48,008
|
5.69
|
%
|
||||||||||||||||
Non-marketable securities
|
15,549
|
388
|
10.04
|
%
|
15,549
|
301
|
7.85
|
%
|
||||||||||||||||
Total interest earning assets
|
5,041,729
|
66,796
|
5.33
|
%
|
4,984,283
|
59,779
|
4.86
|
%
|
||||||||||||||||
Allowance for credit losses
|
(75,448
|
)
|
(67,691
|
)
|
||||||||||||||||||||
Non-interest earning assets
|
339,939
|
311,140
|
||||||||||||||||||||||
Total average assets
|
$
|
5,306,220
|
$
|
5,227,732
|
||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
Interest bearing deposits:
|
||||||||||||||||||||||||
Demand
|
$
|
914,618
|
888
|
0.39
|
%
|
$
|
1,068,504
|
444
|
0.17
|
%
|
||||||||||||||
Savings and money market accounts
|
1,618,678
|
7,186
|
1.79
|
%
|
1,561,684
|
2,503
|
0.65
|
%
|
||||||||||||||||
Certificates of deposit greater than $250,000
|
378,714
|
3,094
|
3.29
|
%
|
147,704
|
487
|
1.34
|
%
|
||||||||||||||||
Certificates of deposit less than $250,000
|
338,031
|
3,477
|
4.14
|
%
|
206,214
|
280
|
0.55
|
%
|
||||||||||||||||
Total interest bearing deposits
|
3,250,041
|
14,645
|
1.81
|
%
|
2,984,106
|
3,714
|
0.50
|
%
|
||||||||||||||||
Short-term borrowings
|
5,497
|
62
|
4.54
|
%
|
3
|
-
|
0.00
|
%
|
||||||||||||||||
Subordinated debentures
|
10,310
|
221
|
8.62
|
%
|
10,310
|
196
|
7.71
|
%
|
||||||||||||||||
Total interest bearing liabilities
|
3,265,848
|
14,928
|
1.84
|
%
|
2,994,419
|
3,910
|
0.53
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
1,403,384
|
1,663,152
|
||||||||||||||||||||||
Total funding
|
4,669,232
|
14,928
|
1.29
|
%
|
4,657,571
|
3,910
|
0.34
|
%
|
||||||||||||||||
Other non-interest bearing liabilities
|
80,276
|
72,710
|
||||||||||||||||||||||
Shareholders' equity
|
556,712
|
497,451
|
||||||||||||||||||||||
Total average liabilities and shareholders' equity
|
$
|
5,306,220
|
$
|
5,227,732
|
||||||||||||||||||||
Net interest income and margin(4)
|
$
|
51,868
|
4.14
|
%
|
$
|
55,869
|
4.55
|
%
|
||||||||||||||||
Interest rate spread
|
3.49
|
%
|
4.33
|
%
|
||||||||||||||||||||
Tax equivalent adjustment
|
(155
|
)
|
(147
|
)
|
||||||||||||||||||||
Net interest income
|
$
|
51,713
|
4.13
|
%
|
$
|
55,722
|
4.53
|
%
|
Three Months Ended March 31, 2024 compared with 2023
|
||||||||||||
Increase (Decrease) Due to:
|
||||||||||||
(Dollars in thousands)
|
Volume
|
Rate
|
Net
|
|||||||||
Interest income:
|
||||||||||||
Interest earnings deposits in other banks and federal funds sold
|
$
|
(6,787
|
)
|
$
|
5,356
|
$
|
(1,431
|
)
|
||||
Investment securities:
|
||||||||||||
Taxable securities
|
8
|
895
|
903
|
|||||||||
Non-taxable securities
|
118
|
(60
|
)
|
58
|
||||||||
Total investment securities
|
126
|
835
|
961
|
|||||||||
Loans:
|
||||||||||||
Real estate:
|
||||||||||||
Commercial
|
640
|
333
|
973
|
|||||||||
Agricultural
|
144
|
564
|
708
|
|||||||||
Residential and home equity
|
164
|
534
|
698
|
|||||||||
Construction
|
1,123
|
(162
|
)
|
961
|
||||||||
Total real estate
|
2,071
|
1,269
|
3,340
|
|||||||||
Commercial & industrial
|
605
|
1,032
|
1,637
|
|||||||||
Agricultural
|
678
|
597
|
1,275
|
|||||||||
Commercial leases
|
892
|
249
|
1,141
|
|||||||||
Consumer and other
|
1
|
7
|
8
|
|||||||||
Total loans and leases
|
4,247
|
3,154
|
7,401
|
|||||||||
Non-marketable securities
|
-
|
87
|
87
|
|||||||||
Total interest income
|
(2,414
|
)
|
9,432
|
7,018
|
||||||||
Interest expense:
|
||||||||||||
Interest bearing deposits:
|
||||||||||||
Demand
|
(424
|
)
|
868
|
444
|
||||||||
Savings and money market accounts
|
96
|
4,587
|
4,683
|
|||||||||
Certificates of deposit greater than $250,000
|
1,350
|
1,257
|
2,607
|
|||||||||
Certificates of deposit less than $250,000
|
286
|
2,911
|
3,197
|
|||||||||
Total interest bearing deposits
|
1,308
|
9,623
|
10,931
|
|||||||||
Short-term borrowings
|
-
|
62
|
62
|
|||||||||
Subordinated debentures
|
-
|
25
|
25
|
|||||||||
Total interest expense
|
1,308
|
9,710
|
11,018
|
|||||||||
Net interest income
|
$
|
(3,722
|
)
|
$
|
(278
|
)
|
$
|
(4,000
|
)
|
Three Months Ended
March 31,
|
$ Better /
(Worse)
|
$ Better /
(Worse)
|
||||||||||||||
(Dollars in thousands)
|
2024
|
2023
|
||||||||||||||
Selected Income Statement Information:
|
||||||||||||||||
Interest income
|
$
|
66,641
|
$
|
59,632
|
$
|
7,009
|
11.75
|
%
|
||||||||
Interest expense
|
14,928
|
3,910
|
(11,018
|
)
|
(281.79
|
%)
|
||||||||||
Net interest income
|
51,713
|
55,722
|
(4,009
|
)
|
(7.19
|
%)
|
||||||||||
Provision for credit losses
|
-
|
1,500
|
1,500
|
N/A
|
||||||||||||
Net interest income after provision for credit losses
|
51,713
|
54,222
|
(2,509
|
)
|
(4.63
|
%)
|
||||||||||
Non-interest income
|
5,075
|
3,460
|
1,615
|
46.68
|
%
|
|||||||||||
Non-interest expense
|
25,521
|
28,183
|
2,662
|
9.45
|
%
|
|||||||||||
Income before income tax expense
|
31,267
|
29,499
|
1,768
|
5.99
|
%
|
|||||||||||
Income tax expense
|
8,544
|
5,952
|
(2,592
|
)
|
(43.55
|
%)
|
||||||||||
Net income
|
$
|
22,723
|
$
|
23,547
|
$
|
(824
|
)
|
(3.50
|
%)
|
Three Months Ended
March 31, |
||||||||||||||||
(Dollars in thousands)
|
2024
|
2023
|
$ Better / (Worse)
|
% Better / (Worse)
|
||||||||||||
Non-interest Income:
|
||||||||||||||||
Card processing
|
1,629
|
1,591
|
$
|
38
|
2.39
|
%
|
||||||||||
Gain on BOLI death benefit
|
-
|
4,346
|
(4,346
|
)
|
-
|
|||||||||||
Net gain on deferred compensation benefits
|
1,158
|
896
|
262
|
29.24
|
%
|
|||||||||||
Service charges on deposit accounts
|
748
|
634
|
114
|
17.98
|
%
|
|||||||||||
Increase in cash surrender value of BOLI
|
595
|
444
|
151
|
34.01
|
%
|
|||||||||||
Net loss on sale of securities available-for-sale
|
-
|
(5,686
|
)
|
5,686
|
-
|
|||||||||||
Other
|
945
|
1,235
|
(290
|
)
|
(23.48
|
%)
|
||||||||||
Total non-interest income
|
$
|
5,075
|
$
|
3,460
|
$
|
1,615
|
46.68
|
%
|
Three Months Ended
March 31, |
||||||||||||||||
(Dollars in thousands)
|
2024
|
2023
|
$ Better / (Worse)
|
% Better / (Worse)
|
||||||||||||
Non-interest Expense:
|
||||||||||||||||
Salaries and employee benefits
|
17,503
|
19,584
|
$
|
2,081
|
10.63
|
%
|
||||||||||
Data processing
|
1,455
|
1,260
|
(195
|
)
|
(15.48
|
%)
|
||||||||||
Occupancy
|
1,232
|
1,180
|
(52
|
)
|
(4.41
|
%)
|
||||||||||
Net gain on deferred compensation benefits
|
1,158
|
896
|
262
|
29.24
|
%
|
|||||||||||
Deposit insurance
|
712
|
692
|
(20
|
)
|
(2.89
|
%)
|
||||||||||
Professional services
|
541
|
682
|
141
|
20.67
|
%
|
|||||||||||
Marketing
|
480
|
470
|
(10
|
)
|
(2.13
|
%)
|
||||||||||
Other
|
2,440
|
3,419
|
979
|
28.63
|
%
|
|||||||||||
Total non-interest expense
|
$
|
25,521
|
$
|
28,183
|
$
|
2,662
|
9.45
|
%
|
(Dollars in thousands)
|
March 31,
2024
|
December 31, 2023
|
||||||
Available-for-Sale Securities
|
||||||||
U.S. Government-sponsored securities
|
$
|
3,048
|
$
|
3,224
|
||||
Mortgage-backed securities(1)
|
216,093
|
163,838
|
||||||
Collateralized mortgage obligations(1)
|
5,654
|
535
|
||||||
Corporate securities
|
14,751
|
14,605
|
||||||
Other
|
310
|
310
|
||||||
Total available-for-sale securities
|
$
|
239,856
|
$
|
182,512
|
(Dollars in thousands)
|
March 31,
2024
|
December 31, 2023
|
||||||
Held-to-Maturity Securities
|
||||||||
Mortgage-backed securities(1)
|
$
|
656,028
|
$
|
664,728
|
||||
Collateralized mortgage obligations(1)
|
72,950
|
74,170
|
||||||
Municipal securities
|
77,993
|
78,790
|
||||||
Total held-to-maturity securities
|
$
|
806,971
|
$
|
817,688
|
As of March 31, 2024
|
||||||||||||||||||||||||||||||||||||||||
Within One Year
|
After One but Within
Five Years
|
After Five but
Within Ten Years
|
After Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||||||||||||||||||||||
U.S. Government-sponsored securities
|
$
|
1
|
6.87
|
%
|
$
|
88
|
6.40
|
%
|
$
|
242
|
6.63
|
%
|
$
|
2,717
|
6.43
|
%
|
$ |
3,048
|
6.44
|
%
|
||||||||||||||||||||
Mortgage-backed securities(1)
|
112
|
1.90
|
%
|
5,404
|
2.56
|
%
|
4,986
|
3.76
|
%
|
205,592
|
4.09
|
%
|
216,093
|
4.04
|
%
|
|||||||||||||||||||||||||
Collateralized mortgage obligations(1)
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
5,654
|
6.27
|
%
|
5,654
|
6.27
|
%
|
|||||||||||||||||||||||||
Corporate securities
|
-
|
0.00
|
%
|
14,750
|
5.80
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
14,751
|
5.80
|
%
|
|||||||||||||||||||||||||
Other
|
310
|
8.44
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
310
|
8.44
|
%
|
|||||||||||||||||||||||||
Total securities available-for-sale
|
$
|
423
|
6.70
|
%
|
$
|
20,242
|
4.94
|
%
|
$
|
5,228
|
3.89
|
%
|
$
|
213,963
|
4.18
|
%
|
$
|
239,856
|
4.24
|
%
|
(1)
|
All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government.
|
|
As of March 31, 2024
|
|||||||||||||||||||||||||||||||||||||||
Within One Year
|
After One but Within
Five Years
|
After Five but
Within Ten Years
|
After Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||||||||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1)
|
$
|
-
|
0.00
|
%
|
$
|
1,887
|
0.87
|
%
|
$
|
11,758
|
1.44
|
%
|
$
|
642,382
|
1.89
|
%
|
$
|
656,028
|
1.88
|
%
|
||||||||||||||||||||
Collateralized mortgage obligations(1)
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
72,950
|
1.75
|
%
|
72,950
|
1.75
|
%
|
|||||||||||||||||||||||||
Municipal securities
|
2,230
|
6.41
|
%
|
16,200
|
3.60
|
%
|
9,251
|
3.04
|
%
|
50,313
|
4.00
|
%
|
77,993
|
3.87
|
%
|
|||||||||||||||||||||||||
Total securities held-to-maturity
|
$
|
2,230
|
6.41
|
%
|
$
|
18,087
|
3.32
|
%
|
$
|
21,009
|
2.14
|
%
|
$
|
765,645
|
2.02
|
%
|
$
|
806,971
|
2.06
|
%
|
(1)
|
All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government.
|
As of December 31, 2023
|
||||||||||||||||||||||||||||||||||||||||
Within One Year
|
After One but Within Five Years
|
After Five but Within Ten Years
|
After Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||||||||||||||||||||||
U.S. Government-sponsored securities
|
$
|
1
|
5.91
|
%
|
$
|
99
|
6.47
|
%
|
$
|
269
|
6.65
|
%
|
$
|
2,855
|
6.44
|
%
|
$ |
3,224
|
6.46
|
%
|
||||||||||||||||||||
Mortgage-backed securities(1)
|
169
|
1.79
|
%
|
6,138
|
2.57
|
%
|
4,916
|
3.78
|
%
|
152,615
|
3.52
|
%
|
163,838
|
3.44
|
%
|
|||||||||||||||||||||||||
Collateralized mortgage obligations(1)
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
535
|
2.27
|
%
|
535
|
2.27
|
%
|
|||||||||||||||||||||||||
Corporate securities
|
-
|
0.00
|
%
|
14,605
|
5.71
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
14,605
|
5.71
|
%
|
|||||||||||||||||||||||||
Other
|
310
|
8.20
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
310
|
8.20
|
%
|
|||||||||||||||||||||||||
Total securities available-for-sale
|
$
|
480
|
5.94
|
%
|
$
|
20,842
|
4.79
|
%
|
$
|
5,185
|
3.93
|
%
|
$
|
156,005
|
3.57
|
%
|
$
|
182,512
|
3.68
|
%
|
As of December 31, 2023
|
||||||||||||||||||||||||||||||||||||||||
Within One Year
|
After One but Within Five Years
|
After Five but Within Ten Years
|
After Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||||||||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1)
|
$
|
-
|
0.00
|
%
|
$
|
2,058
|
0.78
|
%
|
$
|
12,418
|
1.41
|
%
|
$
|
650,252
|
1.90
|
%
|
$
|
664,728
|
1.88
|
%
|
||||||||||||||||||||
Collateralized mortgage obligations(1)
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
74,170
|
1.75
|
%
|
74,170
|
1.75
|
%
|
|||||||||||||||||||||||||
Municipal securities
|
875
|
4.01
|
%
|
15,962
|
4.23
|
%
|
10,703
|
3.76
|
%
|
51,250
|
3.88
|
%
|
78,790
|
3.93
|
%
|
|||||||||||||||||||||||||
Total securities held-to-maturity
|
$
|
875
|
4.01
|
%
|
$
|
18,020
|
3.84
|
%
|
$
|
23,121
|
2.50
|
%
|
$
|
775,672
|
2.02
|
%
|
$
|
817,688
|
2.07
|
%
|
March 31, 2024
|
December 31, 2023
|
|||||||||||||||
(Dollars in thousands)
|
Dollars
|
Percent of
Total |
Dollars
|
Percent of
Total
|
||||||||||||
Gross loans and leases
|
||||||||||||||||
Real estate:
|
||||||||||||||||
Commercial
|
$
|
1,352,014
|
36.48
|
%
|
$
|
1,323,038
|
36.10
|
%
|
||||||||
Agricultural
|
726,041
|
19.59
|
%
|
742,009
|
20.24
|
%
|
||||||||||
Residential and home equity
|
405,526
|
10.94
|
%
|
399,982
|
10.91
|
%
|
||||||||||
Construction
|
227,415
|
6.13
|
%
|
212,362
|
5.80
|
%
|
||||||||||
Total real estate
|
2,710,996
|
73.14
|
%
|
2,677,391
|
73.05
|
%
|
||||||||||
Commercial & industrial
|
497,028
|
13.41
|
%
|
499,373
|
13.62
|
%
|
||||||||||
Agricultural
|
317,955
|
8.58
|
%
|
313,737
|
8.56
|
%
|
||||||||||
Commercial leases
|
174,657
|
4.71
|
%
|
169,684
|
4.63
|
%
|
||||||||||
Consumer and other
|
5,801
|
0.16
|
%
|
5,212
|
0.14
|
%
|
||||||||||
Total gross loans and leases
|
$
|
3,706,437
|
100.00
|
%
|
$
|
3,665,397
|
100.00
|
%
|
Loan Contractual Maturity
|
||||||||||||||||||||
(Dollars in thousands)
|
One Year or Less
|
After One But
Within Five
Years
|
After Five
Years But
Within Fifteen
Years
|
After Fifteen Years
|
Total
|
|||||||||||||||
Gross loan and leases:
|
||||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
$
|
85,828
|
$
|
388,701
|
$
|
842,417
|
$
|
35,068
|
$
|
1,352,014
|
||||||||||
Agricultural
|
51,740
|
174,911
|
438,218
|
61,172
|
726,041
|
|||||||||||||||
Residential and home equity
|
111
|
4,315
|
111,926
|
289,174
|
405,526
|
|||||||||||||||
Construction
|
183,815
|
42,741
|
859
|
-
|
227,415
|
|||||||||||||||
Total real estate
|
321,494
|
610,668
|
1,393,420
|
385,414
|
2,710,996
|
|||||||||||||||
Commercial & industrial
|
216,756
|
179,670
|
98,271
|
2,331
|
497,028
|
|||||||||||||||
Agricultural
|
194,378
|
102,542
|
21,035
|
0
|
317,955
|
|||||||||||||||
Commercial leases
|
4,939
|
50,174
|
119,544
|
-
|
174,657
|
|||||||||||||||
Consumer and other
|
731
|
3,677
|
922
|
471.00
|
5,801
|
|||||||||||||||
Total gross loans and leases
|
$
|
738,298
|
$
|
946,731
|
$
|
1,633,192
|
$
|
388,216
|
$
|
3,706,437
|
||||||||||
Rate structure for loans and leases
|
||||||||||||||||||||
Fixed rate
|
$
|
200,541
|
$
|
589,620
|
$
|
1,138,467
|
$
|
223,302
|
$
|
2,151,930
|
||||||||||
Adjustable rate
|
537,757
|
357,111
|
494,725
|
164,914
|
1,554,507
|
|||||||||||||||
Total gross loans and leases
|
$
|
738,298
|
$
|
946,731
|
$
|
1,633,192
|
$
|
388,216
|
$
|
3,706,437
|
(Dollars in thousands)
|
March 31, 2024
|
December 31, 2023
|
||||||
Non-performing assets:
|
||||||||
Non-accrual loans and leases
|
||||||||
Real estate:
|
||||||||
Commercial
|
$
|
-
|
$
|
-
|
||||
Agricultural
|
-
|
-
|
||||||
Residential and home equity
|
-
|
-
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
-
|
-
|
||||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
-
|
-
|
||||||
Subtotal
|
-
|
-
|
||||||
Accruing loans and leases
|
||||||||
Real estate:
|
||||||||
Commercial
|
$
|
-
|
$
|
-
|
||||
Agricultural
|
3,550
|
-
|
||||||
Residential and home equity
|
-
|
-
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
3,550
|
-
|
||||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
-
|
-
|
||||||
Subtotal
|
3,550
|
-
|
||||||
Total non-performing loans and leases
|
$
|
3,550
|
$
|
-
|
||||
Other real estate owned ("OREO")
|
$
|
873
|
$
|
873
|
||||
Total non-performing assets
|
$
|
4,423
|
$
|
873
|
||||
Selected ratios:
|
||||||||
Non-performing loans to total loans and leases
|
0.10
|
%
|
0.00
|
%
|
||||
Non-performing assets to total assets
|
0.08
|
%
|
0.02
|
%
|
Three Months Ended
March 31,
|
||||||||
(Dollars in thousands)
|
2024
|
2023
|
||||||
Allowance for credit losses:
|
||||||||
Balance at beginning of year
|
$
|
74,965
|
$
|
66,885
|
||||
Provision for credit losses
|
-
|
1,500
|
||||||
Charge-offs:
|
||||||||
Real estate:
|
||||||||
Commercial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Residential and home equity
|
-
|
(14
|
)
|
|||||
Construction
|
-
|
-
|
||||||
Total real estate
|
-
|
(14
|
)
|
|||||
Commercial & industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
(10
|
)
|
(10
|
)
|
||||
Total charge-offs
|
(10
|
)
|
(24
|
)
|
||||
Recoveries:
|
||||||||
Real estate:
|
||||||||
Commercial
|
-
|
170
|
||||||
Agricultural
|
-
|
-
|
||||||
Residential and home equity
|
8
|
10
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
8
|
180
|
||||||
Commercial & industrial
|
18
|
19
|
||||||
Agricultural
|
-
|
1
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
37
|
12
|
||||||
Total recoveries
|
63
|
212
|
||||||
Net recoveries / (charge-offs)
|
53
|
188
|
||||||
Balance at end of year
|
$
|
75,018
|
$
|
68,573
|
||||
Selected financial information:
|
||||||||
Net loans and leases held-for-investment
|
$
|
3,696,295
|
$
|
3,427,133
|
||||
Average loans and leases
|
3,661,292
|
3,422,375
|
||||||
Non-performing loans and leases
|
3,550
|
387
|
||||||
Allowance for credit losses to non-performing loans and leases
|
2113.18
|
%
|
17719.12
|
%
|
||||
Net (recoveries)/charge-offs to average loans and leases
|
(0.00
|
%)
|
(0.01
|
%)
|
||||
Provision for credit losses to average loans and leases
|
0.00
|
%
|
0.04
|
%
|
||||
Allowance for credit losses to gross loans and leases held-for-investment
|
2.02
|
%
|
1.99
|
%
|
(Dollars in thousands)
|
March 31,
2024
|
December 31,
2023
|
||||||
ACL - Loans and leases
|
$
|
75,018
|
$
|
74,965
|
||||
ACL - Unfunded commitments
|
3,690
|
3,690
|
||||||
Total ACL
|
78,708
|
78,655
|
March 31, 2024
|
December 31, 2023
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Dollars
|
Percent of Each Loan Type to Total Loans
|
Percent of ACL to Each Loan Type
|
Dollars
|
Percent of Each Loan Type to Total Loans
|
Percent of ACL to Each Loan Type
|
||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
$
|
22,414
|
36.48
|
%
|
1.66
|
%
|
$
|
26,093
|
36.10
|
%
|
1.97
|
%
|
||||||||||||
Agricultural
|
11,377
|
19.59
|
%
|
1.57
|
%
|
7,744
|
20.24
|
%
|
1.04
|
%
|
||||||||||||||
Residential and home equity
|
7,721
|
10.94
|
%
|
1.90
|
%
|
7,770
|
10.91
|
%
|
1.94
|
%
|
||||||||||||||
Construction
|
4,616
|
6.13
|
%
|
2.03
|
%
|
4,432
|
5.80
|
%
|
2.09
|
%
|
||||||||||||||
Total real estate
|
46,128
|
73.14
|
%
|
1.70
|
%
|
46,039
|
73.05
|
%
|
1.72
|
%
|
||||||||||||||
Commercial & industrial
|
11,559
|
13.41
|
%
|
2.33
|
%
|
13,380
|
13.62
|
%
|
2.68
|
%
|
||||||||||||||
Agricultural
|
10,292
|
8.58
|
%
|
3.24
|
%
|
8,872
|
8.56
|
%
|
2.83
|
%
|
||||||||||||||
Commercial leases
|
6,923
|
4.71
|
%
|
3.96
|
%
|
6,537
|
4.63
|
%
|
3.85
|
%
|
||||||||||||||
Consumer and other
|
116
|
0.16
|
%
|
2.00
|
%
|
137
|
0.14
|
%
|
2.63
|
%
|
||||||||||||||
Total allowance for credit losses
|
$
|
75,018
|
100.00
|
%
|
2.02
|
%
|
$
|
74,965
|
100.00
|
%
|
2.05
|
%
|
Three Months Ended March 31,
|
||||||||||||||||||||||||
2024
|
2023
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
Interest
Expense
|
Average
Rate
|
Average
Balance
|
Interest
Expense
|
Average
Rate
|
||||||||||||||||||
Total deposits:
|
||||||||||||||||||||||||
Interest bearing deposits:
|
||||||||||||||||||||||||
Demand
|
$
|
914,618
|
$
|
888
|
0.39
|
%
|
$
|
1,068,504
|
$
|
444
|
0.17
|
%
|
||||||||||||
Savings and money market
|
1,618,678
|
7,186
|
1.79
|
%
|
1,561,684
|
2,503
|
0.65
|
%
|
||||||||||||||||
Certificates of deposit greater than $250,000
|
378,714
|
3,094
|
3.29
|
%
|
147,704
|
487
|
1.34
|
%
|
||||||||||||||||
Certificates of deposit less than $250,000
|
338,031
|
3,477
|
4.14
|
%
|
206,214
|
280
|
0.55
|
%
|
||||||||||||||||
Total interest bearing deposits
|
3,250,041
|
14,645
|
1.81
|
%
|
2,984,106
|
3,714
|
0.50
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
1,403,384
|
1,663,152
|
0.00
|
%
|
||||||||||||||||||||
Total deposits
|
$
|
4,653,425
|
$
|
14,645
|
1.27
|
%
|
$
|
4,647,258
|
$
|
3,714
|
0.32
|
%
|
March 31,
|
December 31,
|
|||||||
(Dollars in thousands)
|
2024
|
2023
|
||||||
Non-maturity deposits greater than $250,000
|
$
|
2,401,894
|
$
|
2,496,749
|
||||
Certificates of deposit greater than $250,000, by maturity:
|
||||||||
Less than 3 months
|
215,377
|
84,460
|
||||||
3 months to 6 months
|
109,740
|
111,866
|
||||||
6 months to 12 months
|
148,784
|
107,080
|
||||||
More than 12 months
|
3,985
|
15,423
|
||||||
Total certificates of deposit greater than $250,000
|
$
|
477,886
|
$
|
318,829
|
||||
Total deposits greater than $250,000
|
$
|
2,879,780
|
$
|
2,815,578
|
March 31, 2024
|
||||||||||||||||||||||||
Actual
|
Required for Capital Adequacy Purposes
|
Minimum to be Categorized as "Well Capitalized" Under Prompt Corrective Action Regulation
|
||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Bancorp:
|
||||||||||||||||||||||||
CET1 capital to risk-weighted assets
|
$
|
565,238
|
12.73
|
%
|
$
|
199,884
|
4.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier 1 capital to risk-weighted assets
|
575,238
|
12.95
|
%
|
266,511
|
6.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Risk-based capital to risk-weighted assets
|
631,053
|
14.21
|
%
|
355,349
|
8.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Tier 1 leverage capital ratio
|
575,238
|
10.83
|
%
|
212,410
|
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank:
|
||||||||||||||||||||||||
CET1 capital to risk-weighted assets
|
$
|
575,347
|
12.95
|
%
|
$
|
199,872
|
4.50
|
%
|
$
|
288,704
|
6.50
|
%
|
||||||||||||
Tier 1 capital to risk-weighted assets
|
575,347
|
12.95
|
%
|
266,496
|
6.00
|
%
|
355,328
|
8.00
|
%
|
|||||||||||||||
Risk-based capital to risk-weighted assets
|
631,159
|
14.21
|
%
|
355,328
|
8.00
|
%
|
444,159
|
10.00
|
%
|
|||||||||||||||
Tier 1 leverage capital ratio
|
575,347
|
10.84
|
%
|
212,322
|
4.00
|
%
|
265,403
|
5.00
|
%
|
December 31, 2023
|
||||||||||||||||||||||||
Actual
|
Required for Capital Adequacy Purposes
|
Minimum to be Categorized as "Well Capitalized" Under Prompt Corrective Action Regulation
|
||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Bancorp:
|
||||||||||||||||||||||||
CET1 capital to risk-weighted assets
|
$
|
546,045
|
12.30
|
%
|
$
|
199,724
|
4.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier 1 capital to risk-weighted assets
|
556,045
|
12.53
|
%
|
266,298
|
6.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Risk-based capital to risk-weighted assets
|
611,815
|
13.78
|
%
|
355,064
|
8.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Tier 1 leverage capital ratio
|
556,045
|
10.38
|
%
|
214,267
|
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank:
|
||||||||||||||||||||||||
CET1 capital to risk-weighted assets
|
$
|
557,500
|
12.56
|
%
|
$
|
199,722
|
4.50
|
%
|
$
|
288,487
|
6.50
|
%
|
||||||||||||
Tier 1 capital to risk-weighted assets
|
557,500
|
12.56
|
%
|
266,295
|
6.00
|
%
|
355,061
|
8.00
|
%
|
|||||||||||||||
Risk-based capital to risk-weighted assets
|
613,270
|
13.82
|
%
|
355,061
|
8.00
|
%
|
443,826
|
10.00
|
%
|
|||||||||||||||
Tier 1 leverage capital ratio
|
557,500
|
10.42
|
%
|
214,078
|
4.00
|
%
|
267,597
|
5.00
|
%
|
Amount of Commitment Expiration per Period
|
||||||||||||||||||||
(Dollars in thousands)
|
Total Committed Amount
|
Less than One Year
|
One to
Three
Years
|
Three to
Five Years
|
After Five Years
|
|||||||||||||||
Off-balance sheet commitments
|
||||||||||||||||||||
Commitments to extend credit
|
$
|
1,074,963
|
$
|
508,786
|
$
|
311,172
|
$
|
75,258
|
$
|
179,747
|
||||||||||
Standby letters of credit
|
14,889
|
12,629
|
1,760
|
500
|
-
|
|||||||||||||||
Total off-balance sheet commitments
|
$
|
1,089,852
|
$
|
521,415
|
$
|
312,932
|
$
|
75,758
|
$
|
179,747
|
March 31, 2024
|
||||||||||||||||
(Dollars in thousands)
|
Total Credit Line Limit
|
Outstanding Amount
|
Remaining Credit Line Available
|
Value of Collateral Pledged
|
||||||||||||
Additional liquidity sources:
|
||||||||||||||||
Federal Reserve Bank
|
$
|
1,239,186
|
$
|
-
|
$
|
1,239,186
|
$
|
1,583,638
|
||||||||
Federal Home Loan Bank
|
769,429
|
200,000
|
569,429
|
1,263,816
|
||||||||||||
US Bank Fed Funds
|
50,000
|
-
|
50,000
|
-
|
||||||||||||
PCBB Fed Funds
|
50,000
|
-
|
50,000
|
-
|
||||||||||||
FHLB Fed Funds
|
18,000
|
-
|
18,000
|
-
|
||||||||||||
Total additional liquidity sources
|
$
|
2,126,615
|
$
|
200,000
|
$
|
1,926,615
|
$
|
2,847,454
|
Estimated Change in
Net Interest Income (NII) (as a % of NII) |
Estimated Change in
Economic Value of Equity
(EVE)
(as a % of EVE)
|
|||||||
March 31, 2024
|
||||||||
+300 bps
|
(0.2
|
%)
|
(10.1
|
%)
|
||||
+200 bps
|
(0.4
|
%)
|
(7.3
|
%)
|
||||
+100 bps
|
0.0
|
%
|
(2.9
|
%)
|
||||
0 bps
|
-
|
-
|
||||||
-100 bps
|
(1.5
|
%)
|
(0.6
|
%)
|
||||
-200 bps
|
(3.2
|
%)
|
(3.6
|
%)
|
||||
-300 bps
|
(5.3
|
%)
|
(9.2
|
%)
|
Item 4. |
Controls and Procedures
|
Period
|
Total number of shares purchased
|
Average price
paid per share(2)
|
Total number of shares
purchased as part of
publicly announced
plans or programs
|
Maximum number (or
approximate dollar
value) of shares that
may yet purchased
under the plans or
programs (In
thousands) (1)
|
||||||||||||
January 1, 2024 to January 31, 2024
|
4,853
|
$
|
1,042.00
|
4,853
|
$
|
19,479
|
||||||||||
February 1, 2024 to February 29, 2024
|
87
|
971.00
|
87
|
19,394
|
||||||||||||
March 1, 2024 to March 31, 2024
|
261
|
974.00
|
261
|
19,140
|
||||||||||||
Total 1st Quarter 2024
|
5,201
|
$
|
1,038.00
|
5,201
|
$
|
19,140
|
Item 3. |
Defaults upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
Exhibit
Number
|
Description
|
|
Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and Kent A. Steinwert, filed on Registrant’s Form 10-Q for the quarter ended
March 31, 2024.
|
||
Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and Deborah E. Skinner, filed on Registrant’s Form 10-Q for the quarter ended
March 31, 2024.
|
||
Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and Bart R. Olson, filed on Registrant’s Form 10-Q for the quarter ended March
31, 2024.
|
||
Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and Ryan J. Misasi, filed on Registrant’s Form 10-Q for the quarter ended March
31, 2024.
|
||
Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and David M. Zitterow, filed on Registrant’s Form 10-Q for the quarter ended
March 31, 2024.
|
||
Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and John W. Weubbe, filed on Registrant’s Form 10-Q for the quarter ended March
31, 2024.
|
||
Employment Agreement effective April 22, 2024, between Farmers & Merchants Bank of Central California and Thomas Bennett, filed on Registrant’s Form 10-Q for the quarter ended March 31, 2024.
|
||
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
|
||
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
|
||
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
|
||
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
FARMERS & MERCHANTS BANCORP
|
|
Date: May 9, 2024
|
/s/ Kent A. Steinwert
|
Kent A. Steinwert
|
|
Director, Chairman, President and Chief Executive Officer
(Principal Executive Officer)
|
Date: May 9, 2024
|
/s/ Bart R. Olson
|
Bart R. Olson
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|