FIRST COMMUNITY BANKSHARES INC /VA/, 10-K filed on 2/22/2023
Annual Report
v3.22.4
Document And Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2022
Feb. 14, 2023
Jun. 30, 2022
Document Information [Line Items]      
Entity Central Index Key 0000859070    
Entity Registrant Name FIRST COMMUNITY BANKSHARES INC /VA/    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2022    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
Document Transition Report false    
Entity File Number 000-19297    
Entity Incorporation, State or Country Code VA    
Entity Tax Identification Number 55-0694814    
Entity Address, Address Line One P.O. Box 989    
Entity Address, City or Town Bluefield    
Entity Address, State or Province VA    
Entity Address, Postal Zip Code 24605-0989    
City Area Code 276    
Local Phone Number 326-9000    
Title of 12(b) Security Common Stock, $1.00 par value    
Trading Symbol FCBC    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 350,440,000
Entity Common Stock, Shares Outstanding   16,228,262  
Auditor Name Elliott Davis, PLLC    
Auditor Firm ID 149    
Auditor Location Charlotte, North Carolina    
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Assets    
Cash and due from banks $ 63,044 $ 47,067 [1]
Federal funds sold 105,636 627,036 [1]
Interest-bearing deposits in banks 2,166 3,336 [1]
Total cash and cash equivalents 170,846 677,439 [1]
Debt securities available for sale 300,349 76,292 [1]
Loans held for investment, net of unearned income 2,400,197 2,165,569 [1]
Allowance for credit losses (30,556) (27,858) [1]
Loans held for investment, net 2,369,641 2,137,711 [1]
Premises and equipment, net 47,340 52,284 [1]
Other real estate owned 703 1,015 [1]
Interest receivable 9,279 7,900 [1]
Goodwill 129,565 129,565 [1]
Other intangible assets 4,176 5,622 [1]
Other assets 103,673 106,691 [1]
Total assets 3,135,572 3,194,519 [1]
Liabilities    
Noninterest-bearing deposits 872,168 842,783
Interest-bearing deposits 1,806,647 1,886,608
Total deposits 2,678,815 2,729,391 [1]
Securities sold under agreements to repurchase 1,874 1,536 [1]
Interest, taxes, and other liabilities 32,898 35,817 [1]
Total liabilities 2,713,587 2,766,744 [1]
Stockholders' equity    
Preferred stock, undesignated par value; 1,000,000 shares authorized; Series A Noncumulative Convertible Preferred Stock, $0.01 par value; 25,000 shares authorized; none outstanding 0 0 [1]
Common stock, $1 par value; 50,000,000 shares authorized; 23,371,822 issued and 16,225,399 outstanding at December 31, 2022; 23,971,347 shares issued and 16,878,220 shares outstanding at December 31, 2021 16,225 16,878
Additional paid-in capital 128,508 147,619 [1]
Retained earnings 292,971 264,824 [1]
Accumulated other comprehensive loss (15,719) (1,546) [1]
Total stockholders' equity 421,985 427,775 [1]
Total liabilities and stockholders' equity $ 3,135,572 $ 3,194,519 [1]
[1] Derived from audited financial statements
v3.22.4
Consolidated Balance Sheets (Parentheticals) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Common stock, par value (in dollars per share) $ 1 $ 1
Common stock, authorized (in shares) 50,000,000 50,000,000
Common stock, issued (in shares) 23,371,822 23,971,347
Common stock, outstanding (in shares) 16,225,399 16,878,220
Undesignated Par Value [Member]    
Preferred stock, no par value (in dollars per share) $ 0 $ 0 [1]
Preferred stock, authorized (in shares) 1,000,000 1,000,000 [1]
Designated Par Value [Member]    
Preferred stock, authorized (in shares) 25,000 25,000 [1]
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01 [1]
Preferred stock, outstanding (in shares) 0 0 [1]
[1] Derived from audited financial statements
v3.22.4
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Interest income:      
Interest and fees on loans $ 104,570 $ 102,832 $ 110,447
Interest on securities -- taxable 5,271 700 1,004
Interest on securities -- tax-exempt 715 1,037 1,785
Interest on deposits in banks 3,763 741 800
Total interest income 114,319 105,310 114,036
Interest expense:      
Interest on deposits 1,654 2,835 5,460
Interest on short-term borrowings 2 1 4
Total interest expense 1,656 2,836 5,464
Net interest income 112,663 102,474 108,572
Provision for (recovery of) credit/loan losses 6,572 (8,471) 12,668
Net interest income after provision for loan losses 106,091 110,945 95,904
Noninterest income:      
Net gain on sale of securities 0 0 385
Gain on divestitures 1,658 0 0
Other operating income 5,148 4,580 2,679
Total noninterest income 37,182 34,301 29,833
Noninterest expense:      
Salaries and employee benefits 47,183 44,239 44,005
Occupancy expense 4,818 4,913 5,043
Furniture and equipment expense 6,001 5,627 5,558
Service fees 7,606 6,324 5,665
Advertising and public relations 2,409 2,076 1,951
Professional fees 1,303 1,524 1,224
Amortization of intangibles 1,446 1,446 1,450
FDIC premiums and assessments 1,126 832 426
Merger expense 596 0 1,893
Divestiture expense 153 0 0
Other operating expense 10,475 11,737 12,410
Total noninterest expense 83,116 78,718 79,625
Income before income taxes 60,157 66,528 46,112
Income tax expense 13,495 15,360 10,186
Net income $ 46,662 $ 51,168 $ 35,926
Earnings per common share      
Basic (in dollars per share) $ 2.82 $ 2.95 $ 2.02
Diluted (in dollars per share) 2.82 2.94 2.02
Cash dividends per common share (in dollars per share) $ 1.12 $ 1.04 $ 1.00
Weighted average shares outstanding      
Basic (in shares) 16,519,848 17,335,615 17,781,748
Diluted (in shares) 16,562,257 17,402,936 17,815,380
Fiduciary and Trust [Member]      
Noninterest income:      
Noninterest income $ 3,855 $ 3,853 $ 3,417
Deposit Account [Member]      
Noninterest income:      
Noninterest income 14,213 13,446 13,019
Financial Service, Other [Member]      
Noninterest income:      
Noninterest income $ 12,308 $ 12,422 $ 10,333
v3.22.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net income $ 46,662 $ 51,168 $ 35,926
Other comprehensive income, before tax      
Change in net unrealized (losses) gains on securities without other-than-temporary impairment (19,793) (1,381) 689
Reclassification adjustment for net (gain) loss recognized in net income 0 0 (385)
Net unrealized gains on available-for-sale debt securities (19,793) (1,381) 304
Employee benefit plans:      
Net actuarial gain (loss) 1,718 1,472 (1,217)
Reclassification adjustment for amortization of prior service cost and net actuarial loss recognized in net income 135 386 386
Net unrealized gains (losses) on employee benefit plans 1,853 1,858 (831)
Other comprehensive (loss) income, before tax (17,940) 477 (527)
Income tax benefit (expense) 3,767 (100) 110
Other comprehensive (loss) income, net (14,173) 377 (417)
Total comprehensive income $ 32,489 $ 51,545 $ 35,509
v3.22.4
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Cumulative Effect, Period of Adoption, Adjustment [Member]
Preferred Stock [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock Outstanding [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Additional Paid-in Capital [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
AOCI Attributable to Parent [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Preferred Stock [Member]
Common Stock Outstanding [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Total
Balance (in shares) at Dec. 31, 2019             0 18,376,991        
Balance at Dec. 31, 2019             $ 0 $ 18,377 $ 192,413 $ 219,535 $ (1,506) $ 428,819
Net income             0 0 0 35,926 0 35,926
Other comprehensive loss             0 0 0 0 (417) (417)
Common dividends declared             $ 0 $ 0 0 (17,876) 0 (17,876)
Equity-based compensation expense (in shares)             0 57,476        
Equity-based compensation expense             $ 0 $ 58 1,585 0 0 $ 1,643
Issuance of stock to 401(k) plan, shares (in shares)             0 22,693       22,693
Issuance of stock to 401(k) plan             $ 0 $ 23 484 0 0 $ 507
Repurchase of common shares (in shares)             (734,653)       (734,653)
Repurchase of common shares             $ (735) (21,137) 0 0 $ (21,872)
Balance (in shares) at Dec. 31, 2020             0 17,722,507        
Balance at Dec. 31, 2020 $ 0 $ 0 $ 0 $ (5,870) $ 0 $ (5,870) $ 0 $ 17,723 173,345 237,585 (1,923) 426,730
Net income             0 0 0 51,168 0 51,168
Other comprehensive loss             0 0 0 0 377 377
Common dividends declared             $ 0 $ 0 0 (18,059) 0 (18,059)
Equity-based compensation expense (in shares)             0 48,388        
Equity-based compensation expense             $ 0 $ 48 1,233 0 0 $ 1,281
Issuance of stock to 401(k) plan, shares (in shares)             0 16,716       16,716
Issuance of stock to 401(k) plan             $ 0 $ 16 476 0 0 $ 492
Repurchase of common shares (in shares)             0 (949,386)       (949,386)
Repurchase of common shares             $ 0 $ (949) (27,933) 0 0 $ (28,882)
Common stock options exercised, shares (in shares)             0 39,995       39,995
Common stock options exercised             $ 0 $ 40 498 0 0 $ 538
Balance (in shares) at Dec. 31, 2021             0 16,878,220        
Balance at Dec. 31, 2021             $ 0 $ 16,878 147,619 264,824 (1,546) 427,775 [1]
Net income             0 0 0 46,662 0 46,662
Other comprehensive loss             0 0 0 0 (14,173) (14,173)
Common dividends declared             $ 0 $ 0 0 (18,515) 0 (18,515)
Equity-based compensation expense (in shares)             0 25,137        
Equity-based compensation expense             $ 0 $ 25 693 0 0 $ 718
Issuance of stock to 401(k) plan, shares (in shares)             0 20,584       20,584
Issuance of stock to 401(k) plan             $ 0 $ 20 637 0 0 $ 657
Repurchase of common shares (in shares)             0 (706,117)       (706,117)
Repurchase of common shares             $ 0 $ (706) (20,605) 0 0 $ (21,311)
Common stock options exercised, shares (in shares)             0 7,575       7,575
Common stock options exercised             $ 0 $ 8 164 0 0 $ 172
Balance (in shares) at Dec. 31, 2022             0 16,225,399        
Balance at Dec. 31, 2022             $ 0 $ 16,225 $ 128,508 $ 292,971 $ (15,719) $ 421,985
[1] Derived from audited financial statements
v3.22.4
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Common dividends declared, per share (in dollars per share) $ 1.12 $ 1.04 $ 1.00
Issuance of stock to 401(k) plan, shares (in shares) 20,584 16,716 22,693
Repurchase of common shares, shares (in shares) 706,117 949,386 734,653
Repurchase of common shares, per share (in dollars per share) $ 30.18 $ 30.42 $ 29.77
Common stock options exercised, shares (in shares) 7,575 39,995  
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating activities      
Net income $ 46,662 $ 51,168 $ 35,926
Adjustments to reconcile net income to net cash provided by operating activities      
Provision for (recovery of) credit/loan losses 6,572 (8,471) 12,668
Depreciation and amortization of premises and equipment 4,154 4,471 4,458
(Accretion)/amortization of discounts/premiums on investments, net (261) 454 1,468
Amortization of FDIC indemnification asset, net 0 0 1,690
Amortization of intangible assets 1,446 1,446 1,450
Accretion on acquired loans (2,618) (4,656) (7,991)
Gain on divestiture (1,658) 0 0
Equity-based compensation expense 718 1,281 1,643
Issuance of common stock to 401(k) plan 657 492 507
(Gain) loss on sale of premises and equipment, net (772) 499 (59)
Provision expense and loss on sale of other real estate owned 453 231 319
Gain on sale of securities 0 0 (385)
Writedowns of property, plant & equipment 0 0 812
Decrease (increase) in other operating activities 3,671 1,300 (6,662)
Net cash provided by operating activities 59,024 48,215 45,844
Investing activities      
Proceeds from sale of available for sale securities 0 370 51,027
Proceeds from maturities, prepayments, and calls of securities available for sale 25,748 27,256 44,676
Payments to acquire securities available for sale (269,337) (22,394) (10,267)
(Originations of) proceeds from repayments loans, net (236,620) 27,467 (69,259)
Proceeds from bank owned life insurance 1,763 0 0
(Payments for) redemption of FHLB stock, net (240) 1,012 (12)
Cash transferred in divestiture, net (59,039) 0 0
Payments to the FDIC 0 0 (30)
Proceeds from sale of premises and equipment 1,542 2,616 2,861
Payments to acquire premises and equipment (1,160) (3,038) (3,195)
Proceeds from sale of other real estate owned 564 2,061 1,997
Net cash (used in) provided by investing activities (536,779) 35,350 17,798
Financing activities      
Increase in noninterest-bearing deposits, net 47,769 69,988 144,927
(Decrease) increase in interest-bearing deposits, net (37,291) 113,156 71,408
Proceeds from (payments for) in securities sold under agreements to repurchase, net 0 572 (637)
Repayments of FHLB and other borrowings, net 338 0 (40)
Proceeds from stock options exercised 172 538 0
Payments for repurchase of common stock (21,311) (28,882) (21,872)
Payments of common stock dividends (18,515) (18,059) (17,876)
Net cash (used in) provided by financing activities (28,838) 137,313 175,910
Net (decrease) increase in cash and cash equivalents (506,593) 220,878 239,552
Cash and cash equivalents at beginning of period 677,439 456,561 217,009
Cash and cash equivalents at end of period 170,846 677,439 456,561
Supplemental disclosure -- cash flow information      
Cash paid for interest 2,114 3,141 5,500
Cash paid for income taxes 7,590 14,399 9,074
Supplemental transactions -- non-cash items      
Transfer of loans to other real estate 705 1,283 695
Loans originated to finance other real estate 0 59 266
Change in accumulated other comprehensive income/(loss) $ (14,173) $ 377 $ (417)
v3.22.4
Note 1 - Basis of Presentation and Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Basis of Presentation and Significant Accounting Policies [Text Block]

Note 1. Basis of Presentation and Significant Accounting Policies

 

Basis of Presentation

 

First Community Bankshares, Inc. (the “Company”) is a financial holding company incorporated under the laws of the Commonwealth of Virginia. The Company’s principal executive office is located in Bluefield, Virginia. The Company provides banking products and services to individual and commercial customers through its wholly owned subsidiary First Community Bank (the “Bank”), a Virginia-chartered banking institution founded in 1874. The Bank offers wealth management and investment advice through its Trust Division and wholly owned subsidiary First Community Wealth Management (“FCWM”). Unless the context suggests otherwise, the terms “First Community,” “Company,” “we,” “our,” and “us” refer to First Community Bankshares, Inc. and its subsidiaries as a consolidated entity.

 

Principles of Consolidation

 

The Company’s accounting and reporting policies conform with U.S. generally accepted accounting principles (“GAAP”) and prevailing practices in the banking industry. The consolidated financial statements include all accounts of the Company and its wholly owned subsidiaries and eliminate all intercompany balances and transactions. The Company operates in one business segment, Community Banking, which consists of all operations, including commercial and consumer banking, lending activities, and wealth management.

 

The Company maintains investments in variable interest entities (“VIEs”). VIEs are legal entities in which equity investors do not have sufficient equity at risk for the entity to independently finance its activities, or as a group, the holders of the equity investment at risk lack the power through voting or similar rights to direct the activities of the entity that most significantly impact its economic performance, or do not have the obligation to absorb the expected losses of the entity or the right to receive expected residual returns of the entity. Consolidation of a VIE is required if a reporting entity is the primary beneficiary of the VIE. The Company periodically reviews its VIEs and has determined that it is not the primary beneficiary of any VIE; therefore, the assets and liabilities of these entities are not consolidated into the financial statements.

 

Reclassification

 

Certain amounts reported in prior years have been reclassified to conform to the current year’s presentation. These reclassifications had no effect on the Company’s results of operations, financial position, or net cash flow.

 

Use of Estimates

 

Preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that require the most subjective or complex judgments relate to fair value measurements, the allowance for loan losses and goodwill and other intangible asset. For additional information, see “Critical Accounting Policies” in Part II, Item 7 of this report.

 

Summary of Significant Accounting Policies

 

Fair Value Measurements

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, able to transact, and willing to transact.

 

The fair value hierarchy ranks the inputs used in measuring fair value as follows:

 

 

●

Level 1 – Observable, unadjusted quoted prices in active markets

 

●

Level 2 – Inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability

 

●

Level 3 – Unobservable inputs with little or no market activity that require the Company to use reasonable inputs and assumptions

 

The Company uses fair value measurements to record adjustments to certain financial assets and liabilities on a recurring basis. The Company may be required to record certain assets at fair value on a nonrecurring basis in specific circumstances, such as evidence of impairment. Methodologies used to determine fair value might be highly subjective and judgmental in nature; therefore, valuations may not be precise. If the Company determines that a valuation technique change is necessary, the change is assumed to have occurred at the end of the respective reporting period.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash and due from banks, federal funds sold, and interest-bearing balances on deposit with the Federal Home Loan Bank (“FHLB”), the Federal Reserve Bank (“FRB”), and correspondent banks that are available for immediate withdrawal.

 

Investment Securities

 

Management classifies debt securities as held-to-maturity or available-for-sale based on the intent and ability to hold the securities to maturity. Debt securities that the Company has the intent and ability to hold to maturity are classified as held-to-maturity securities and carried at amortized cost. Debt securities not classified as held to maturity are classified as available-for-sale securities and carried at estimated fair value. Available-for-sale securities consist of securities the Company intends to hold for indefinite periods of time including securities to be used as part of the Company’s asset/liability management strategy and securities that may be sold for a variety of reasons. Unrealized gains and losses on available-for-sale securities are included in accumulated other comprehensive income (“AOCI”), net of income taxes, in stockholders’ equity. Gains or losses on calls, maturities, or sales of investment securities are recorded based on the specific identification method and included in noninterest income. Premiums are amortized to first call date and discounts are accreted over the life of a security into interest income.

 

Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the security.  The credit loss component would be recognized through the provision for credit losses and the creation of an allowance for credit losses. Consideration is given to (1) the financial condition and near-term prospects of the issuer including looking at default and delinquency rates, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) our intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that we will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third party guarantees, and (8) collateral values. The Company evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value.  The nature of the collateral is considered along with potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors.  Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security.  The credit loss component would be recognized through the provision for credit losses in the Statement of Income and establish an allowance for credit losses on the Balance Sheet.

 
The Company excludes the accrued interest receivable from the amortized cost basis in measuring expected credit losses on the investment securities.  Nor does the Company record an allowance for credit losses on accrued interest receivable.  As of   December 31, 2022, the accrued interest receivable for investment securities available for sale was $ 1.34  million.

 

Other Investments

 

As a condition of membership in the FHLB and the FRB, the Company is required to hold a minimum level of stock in the FHLB of Atlanta and the FRB of Richmond. These securities are carried at cost and periodically reviewed for impairment. The total investment in FHLB and FRB stock, which is included in other assets, was $10.02 million as of  December 31, 2022, and $9.78 million as of  December 31, 2021.

 

The Company owns certain long-term equity investments without readily determinable fair values, including certain tax credit limited partnerships and various limited liability companies that manage real estate investments, facilitate tax credits, and provide title insurance and other related financial services. These investments are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. The total carrying value in these investments, which is included other assets, totaled $3.78 million as of December 31, 2022, and $3.85 million as of December 31, 2021.

 

Business Combinations

 

The Company accounts for business combinations using the acquisition method of accounting as outlined in using Topic 805 of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. Any excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. In instances where the price of the acquired business is less than the net assets acquired, a gain on the purchase is recorded. Fair values are assigned based on quoted prices for similar assets, if readily available, or appraisals by qualified independent parties for relevant asset and liability categories. Certain financial assets and liabilities are valued using discount models that apply current discount rates to streams of cash flow. Valuation methods require assumptions, which can result in alternate valuations, varying levels of goodwill or bargain purchase gains, or amortization expense or accretion income. Management must make estimates for the useful or economic lives of certain acquired assets and liabilities that are used to establish the amortization or accretion of some intangible assets and liabilities, such as core deposits. Fair values are subject to refinement for up to one year after the closing date of the acquisition as additional information about the closing date fair values becomes available. Acquisition and divestiture activities are included in the Company’s consolidated results of operations from the closing date of the transaction. Acquisition and divestiture related costs are recognized in noninterest expense as incurred. For additional information, see “Purchased Deteriorated Loans” and “Intangible Assets” below.

 

Loans Held for Investment

 

Loans classified as held for investment are originated with the intent to hold indefinitely, until maturity, or until pay-off. Loans held for investment are carried at the principal amount outstanding, net of unearned income and any necessary write-downs to reduce individual loans to net realizable value. Interest income on performing loans is recognized as interest income at the contractual rate of interest. Loan origination fees, including loan commitment and underwriting fees, are reduced by direct costs associated with loan processing, including salaries, legal review, and appraisal fees. Net deferred loan fees are deferred and amortized over the life of the related loan or commitment period.

 

Purchased Performing Loans. Purchased loans that are deemed to be performing at the acquisition date are accounted for using the contractual cash flow method of accounting, which results in the loans being recorded at fair value with a credit discount. The fair value discount or premium is accreted or amortized, as the case may be, as an adjustment to yield over the estimated contractual lives of the loans.

 

Purchased Credit Deteriorated (“PCD”) Loans. Purchased credit-deteriorated, otherwise referred to herein as PCD, assets are defined as acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company records acquired PCD loans by adding the expected credit losses (i.e. allowance for credit losses) to the purchase price of the financial assets rather than recording through the provision for credit losses in the income statement. The expected credit loss, as of the acquisition date, of a PCD loan is added to the allowance for credit losses. The non-credit discount or premium is the difference between the fair value and the amortized cost basis as of the acquisition date. Subsequent to the acquisition date, the change in the ACL on PCD loans is recognized through the provision for credit losses. The non-credit discount or premium is accreted or amortized, respectively, into interest income over the remaining life of the PCD loan on a level-yield basis. In accordance with the transition requirements within the standard, the Company’s acquired purchased credit impaired loans were treated as PCD loans.

 

Individually Evaluated Loans and Nonperforming Assets.  The Company maintains an active and robust problem credit identification system through its ongoing credit review function.  When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company currently maintains a net book balance threshold of $500,000 for individually-evaluated loans. Generally, individually-evaluated loans other than Troubled Debt Restructurings, otherwise referred to herein as “TDRs,” are on nonaccrual status. Based on the threshold above, consumer loans will generally remain in pools unless they meet the dollar threshold and foreclosure is probable. The expected credit losses on individually-evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset.  The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Therefore, Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an allowance for credit losses on accrued interest receivable.  The accrual of interest, which is based on the daily amount of principal outstanding, on individually evaluated loans is generally continued unless the loan becomes delinquent 90 days or more.

 

Loans are considered past due when either principal or interest payments become contractually delinquent by 30 days or more. The Company’s policy is to discontinue the accrual of interest, if warranted, on loans based on the payment status, evaluation of the related collateral, and the financial strength of the borrower. Loans that are 90 days or more past due are placed on nonaccrual status. Management may elect to continue the accrual of interest when the loan is well secured and in process of collection. When interest accruals are discontinued, interest accrued and not collected in the current year is reversed from income, and interest accrued and not collected from prior years is charged to the allowance for loan losses. Nonaccrual loans may be returned to accrual status when all principal and interest amounts contractually due, including past due payments, are brought current; the ability of the borrower to repay the obligation is reasonably assured; and there is generally a period of at least six months of repayment performance by the borrower in accordance with the contractual terms.

 

Seriously delinquent loans are evaluated for loss mitigation options. Closed-end retail loans are generally charged off against the allowance for credit losses when the loans become 120 days past due. Open-end retail loans and residential real estate secured loans are generally charged off when the loans become 180 days past due. Unsecured loans are generally charged off when the loans become 90 days past due. All other loans are charged off against the allowance for loan losses after collection attempts have been exhausted, which generally is within 120 days. Recoveries of loans previously charged off are credited to the allowance for loan losses in the period received.

 

Loans are considered troubled debt restructurings when the Company grants concessions, for legal or economic reasons, to borrowers experiencing financial difficulty that would not otherwise be considered. The Company generally makes concessions in interest rates, loan terms, and/or amortization terms. All TDRs $500 thousand or greater are evaluated for a specific reserve based on either the collateral or net present value method, whichever is most applicable. TDRs under $500 thousand are subject to the reserve calculation for classified loans based primarily on the historical loss rate. At the date of modification, nonaccrual loans are classified as nonaccrual TDRs. TDRs classified as nonperforming at the date of modification are returned to performing status after six months of satisfactory payment performance; however, these loans remain identified as individually evaluated until full payment or other satisfaction of the obligation occurs.

 

Other real estate owned (“OREO”) acquired through foreclosure, or other settlement, is carried at the lower of cost or fair value less estimated selling costs. The fair value is generally based on current third-party appraisals. When a property is transferred into OREO, any excess of the loan balance over the net realizable fair value is charged against the allowance for loan losses. Operating expenses, gains, and losses on the sale of OREO are included in other noninterest expense in the Company’s consolidated statements of income after any fair value write-downs are recorded as valuation adjustments.

 

Allowance for Credit Losses (ACL)

 

The Company reviews our allowance for credit losses quarterly to determine if it is sufficient to absorb expected loan losses in the portfolio. This determination requires management to make significant estimates and assumptions. While the Company uses its best judgment and available information, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates, and the view of regulatory authorities towards loan classifications. These uncertainties may result in material changes to the allowance for credit losses in the near term; however, the amount of the change cannot reasonably be estimated. Prior to January 1, 2021, we followed the incurred loss accounting method for reserving for loan losses which required us to estimate losses that had been incurred as of the balance sheet date. For additional information, see this note, Note 1, “Basis of Presentation,” to the Consolidated Financial Statements in "Recent Accounting Standards".

 

The ACL is an estimate of losses that will result from the inability of borrowers to make required loan payments.  The Company established the incremental increase in the ACL at the adoption through retained earnings and subsequent adjustments will be made through a provision for credit losses charged to earnings.  Loans charged off are recorded against the ACL and subsequent recoveries increase the ACL when they are recognized.

 

A systematic methodology is used to determine ACL for loans held for investment and certain off-balance sheet credit exposures.  The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio.  The Company considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the loan portfolio.  The Company’s estimate of its ACL involves a high degree of judgement and reflects management’s best estimate within the range of expected credit losses.  The Company recognizes in net income the amount needed to adjust the ACL for management’s current estimate of expected credit losses.  The Company’s ACL is calculated using collectively evaluated and individually evaluated loans.

 

The Company collectively evaluates loans that share similar risk characteristics.  In general, loans are segmented by loan purpose.  The Company collectively evaluates loans within the following consumer and commercial segments:  Loans secured by 1-4 Family Properties, Home Equity Lines of Credit (“HELOC”), Owner Occupied Construction Loans, Consumer Loans, Commercial and Industrial, Multi-family, Non-farm/Non-residential Property, Commercial Construction/A&D/other Land Loans, Agricultural Loans, Credit Card Loans, Loans Secured by Farmland, and Other Consumer Loans (Overdrafts).

 

Risk characteristics of residential real estate loans which include loans secured by Single family properties, HELOC, and Owner occupied construction loans are dependent upon individual borrowers who are affected by changes in general economic conditions, real estate valuations, and the demand for housing.  Commercial and Industrial, Multi-family residential, Non-farm/non-residential, Agricultural, and Loans secured by Farmland are similar in that they are generally dependent upon the borrower's internal cash flow from operations to service the debt and changes in general economic conditions.  Commercial construction, Development, and other land loans, Consumer, and Other consumer loans (open pool) are similar in that they are dependent on changes in general economic conditions.

 

For collectively evaluated loans, the Company uses a combination of discounted cash flow and remaining life to estimate expected credit losses.  During 2022, the Company changed third party model providers which necessitated a change from remaining life to open pool for the portfolios noted above.  The change in method was not quantitatively significant.  In addition to its own loss experience, management also includes peer bank historical loss experience in its assessment of expected credit losses to determine the ACL.  The Company utilized call report data to measure its and its peers' historical credit losses experience with similar risk characteristics within the segments over an economic cycle.  The Company reviewed the historical loss information to appropriately adjust for differences in current asset specific risk characteristics.  Also considered were further adjustments to historical loss information for current conditions and reasonable and supportable forecasts that differ from the conditions that existed for the period over which historical information was evaluated.  For the majority of the segments of collectively evaluated loans, the Company incorporated at least one macroeconomic driver using a statistical regression modeling methodology.

 

The Company considers forward-looking information in estimated expected credit losses.  The Company subscribes to a third-party service which provides summary detail of dozens of economic forecasts.  Using that information and other publicly available economic forecasts, management determines the economic variables to use for the one-year reasonable and supportable forecast period.  Management has determined that the forecast period is consistent with how the Company has historically forecasted for its profitability planning and capital management.  Management has evaluated the appropriateness of the reasonable and supportable forecast for the current period along with the inputs used in the estimation of expected credit losses.  For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to historical loss information over eight quarters using a straight-line approach.  Management may apply different reversion techniques depending on the economic environment for the financial asset portfolio and as of the current period has utilized a linear reversion technique. 

 

Included in its systematic methodology to determine its ACL for loans held for investment and certain off-balance sheet credit exposures, The Company considers the need to qualitatively adjust expected credit losses for information not already captured in the loss estimation process.  These qualitative adjustments either increase or decrease the quantitative model estimation.  Each period the Company considers qualitative factors that are relevant within the qualitative framework that includes the following:  1) changes in lending policies and procedures, 2) changes in economic conditions, 3) changes in portfolio nature and volume, 4) changes in management, 5) changes in past due loans, 6) changes in the quality of the Company’s credit review system, 7) changes in the value of underlying collateral, 8) the effect of concentrations of credit, and 9) the effect of other external factors.

 

When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company currently maintains a net book balance threshold of $500,000 for individually-evaluated loans. Generally, individually-evaluated loans other than TDRs are on nonaccrual status. Based on the threshold above, consumer loans will generally remain in pools unless they meet the dollar threshold and foreclosure is probable. The expected credit losses on individually-evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset.

 

The Company measures expected credit losses over the contractual term of the loans. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals, or modifications, unless the Company reasonably expects it will execute a TDR with a borrower. In the event of a reasonably-expected TDR, the Company factors the reasonably-expected TDR into the current expected credit losses estimate. The effects of a TDR are recorded when an individual asset is specifically identified as a reasonably-expected TDR. For consumer loans, the point at which a TDR is reasonably expected is when the Company approves the borrower’s application for a modification (i.e. the borrower qualifies for the TDR) or when the Credit Administration department approves loan concessions on substandard loans. For commercial loans, the point at which a TDR is reasonably expected is when the Company approves the loan for modification or when the Credit Administration department approves loan concessions on substandard loans. The Company uses a discounted cash flow methodology to calculate the effect of the concession provided to the borrower in TDR within the ACL. 

 

The Company has a variety of assets that have a component that qualifies as an off-balance sheet exposure. These primarily include undrawn portions of revolving lines of credit and standby letters of credit. The expected losses associated with these exposures within the unfunded portion of the loans will be recorded as a liability on the balance sheet with an offsetting income statement expense. The Company has determined that a majority of the Company’s off-balance-sheet credit exposures are not unconditionally cancellable. As of  December 31, 2022, the liability recorded for expected credit losses on unfunded commitments in Other Liabilities was $1.20 million. The estimates are determined based on the likelihood of funding during the contractual term and an estimate of credit losses subsequent to funding. Estimated credit losses on subsequently funded balances are based on the same assumptions as used to estimate credit losses on existing funded loans. The current adjustment to the ACL for unfunded commitments would be recognized through other operating expense in the Statement of Income. For additional information, see Note 6, “Allowance for Loan Losses,” to the Consolidated Financial Statements in Item 8 of this report.  

 

 

Premises and Equipment

 

Premises, equipment, and leases are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets. Useful lives range from 5 to 10 years for furniture, fixtures, and equipment; 3 to 5 years for computer software, hardware, and data handling equipment; and 7 to 40 years for buildings and building improvements. Land improvements are amortized over a period of 20 years and leasehold improvements are amortized over the lesser of the term of the respective leases plus the first optional renewal period, when renewal is reasonably assured, or the estimated useful lives of the improvements. The Company leases various properties within its branch network. Leases generally have initial terms of up to 10 years and most contain options to renew with increases in rent. All leases are accounted for as operating leases. Maintenance and repairs are charged to current operations while improvements that extend the economic useful life of the underlying asset are capitalized. Disposition gains and losses are reflected in current operations.

 

Intangible Assets

 

Intangible assets consist of goodwill, core deposit intangible assets, and other identifiable intangible assets that result from business combinations. Goodwill represents the excess of the purchase price over the fair value of net assets acquired that is allocated to the appropriate reporting unit when acquired. Core deposit intangible assets represent the future earnings potential of acquired deposit relationships that are amortized over their estimated remaining useful lives. Other identifiable intangible assets primarily represent the rights arising from contractual arrangements that are amortized using the straight-line method.

 

An interim analysis of Goodwill is performed quarterly, and goodwill is tested for impairment annually, on October 31st, or more frequently if events or circumstances indicate there may be impairment. We have one reporting unit, Community Banking.  If we elect to perform a qualitative assessment, we evaluate factors such as macroeconomic conditions, industry and market considerations, overall financial performance, changes in stock price, and progress towards stated objectives in determining if it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, a quantitative test is performed; otherwise, no further testing is required. The quantitative test consists of comparing the fair value of our reporting unit to its carrying amount, including goodwill. If the fair value of our reporting unit is greater than its book value, no goodwill impairment exists. If the carrying amount of our reporting unit is greater than its calculated fair value, a goodwill impairment charge is recognized for the difference. 

 

Management has concluded that there was no goodwill impairment for 2022.  

 

Securities Sold Under Agreements to Repurchase

 

Securities sold under agreements to repurchase are generally accounted for as collateralized financing transactions and recognized as short-term borrowings in the Company’s consolidated balance sheets. Securities, generally U.S. government and federal agency securities, pledged as collateral under these arrangements can be sold or repledged only if replaced by the secured party. The fair value of the collateral provided to a third party is continually monitored and additional collateral is provided as appropriate.

 

Derivative Instruments

 

The Company primarily uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets and liabilities and on future cash flows. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another asset to the other party based on a notional amount and an underlying asset as specified in the contract such as interest rates, equity security prices, currencies, commodity prices, or credit spreads. These derivative instruments may consist of interest rate swaps, floors, caps, collars, futures, forward contracts, and written and purchased options. Derivative contracts often involve future commitments to exchange interest payment streams or currencies based on a notional or contractual amount, such as interest rate swaps or currency forwards, or to purchase or sell other financial instruments at specified terms on a specified date, such as options to buy or sell securities or currencies. Derivative instruments are subject to counterparty credit risk due to the possibility that the Company will incur a loss because a counterparty, which may be a bank, a broker-dealer or a customer, fails to meet its contractual obligations. This risk is measured as the expected positive replacement value of contracts. Derivative contracts may be executed only with exchanges or counterparties approved by the Company’s Asset/Liability Management Committee.

 

If certain conditions are met, a derivative may be designated as a hedge related to fair value, cash flow, or foreign exposure risk. The recognition of changes in the fair value of a derivative instrument varies depending on the intended use of the derivative and the resulting designation. The Company accounts for hedges of customer loans as fair value hedges. The change in fair value of the hedging derivative and the change in fair value of the hedged exposure are recorded in earnings. Any hedge ineffectiveness is also reflected in current earnings. Changes in the fair value of derivatives not designated as hedging instruments are recognized as a gain or loss in earnings. The Company formally documents any relationships between hedging instruments and hedged items and the risk management objective and strategy for undertaking each hedged transaction. All derivative instruments are reported at fair value in the consolidated balance sheets.

 

Equity-Based Compensation

 

The cost of employee services received in exchange for equity instruments, including stock options and restricted stock awards, is generally measured at fair value on the grant date. The Black-Scholes-Merton valuation model is used to estimate the fair value of stock options at the grant date while the fair value of restricted stock awards is based on the market price of the Company’s common stock on the grant date. The Black-Scholes-Merton model incorporates the following assumptions: the expected volatility is based on the weekly historical volatility of the Company’s common stock price over the expected term of the option; the expected term is generally calculated using the shortcut method; the risk-free interest rate is based on the U.S. Department of the Treasury’s (“Treasury”) yield curve on the grant date with a term comparable to the grant; and the dividend yield is based on the Company’s dividend yield using the most recent dividend rate paid per share and trading price of the Company’s common stock. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option awards and as the restriction period for restricted stock awards. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

 

Revenue Recognition

 

Wealth management. Wealth management income represents monthly fees due from wealth management customers in consideration for managing and administrating the customers' assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services and similar fiduciary activities. Revenue is recognized when the performance obligation is completed each month, which is generally the time that payment is received. Income also includes fees received from a third party broker-dealer as part of a revenue-sharing agreement for fees earned from customers that are referred to the third party. These fees are paid to the Company by the third party on a quarterly basis and recognized ratably throughout the quarter as the performance obligation is satisfied.

 

Service charges on deposits and other service charges and fees.

 

Service charges on deposits and other service charges and fees represent general service fees for account maintenance and activity and transaction-based fees that consist of transaction-based revenue, time-based revenue (service period), item-based revenue, or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations is generally received at the time the performance obligations are satisfied. Other service charges and fees include interchange income from debit and credit card transaction fees.

 

Advertising Expenses

 

Advertising costs are generally expensed as incurred. The Company may establish accruals for incurred advertising expenses in the course of a fiscal year.

 

Income Taxes

 

Income tax expense is comprised of the current and deferred tax consequences of events and transactions already recognized. The Company includes interest and penalties related to income tax liabilities in income tax expense. The effective tax rate, income tax expense as a percent of pre-tax income, may vary significantly from statutory rates due to tax credits and permanent differences. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are adjusted through the provision for income taxes as changes in tax laws or rates are enacted.

 

Per Share Results

 

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of potential common stock that could be issued by the Company. Under the treasury stock method of accounting, potential common stock may be issued for stock options, non-vested restricted stock awards, performance based stock awards, and convertible preferred stock. Diluted earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding for the period plus the number of dilutive potential common shares. The calculation of diluted earnings per common share excludes potential common shares that have an exercise price greater than the average market value of the Company’s common stock because the effect would be antidilutive.

 

Risks and Uncertainties

 

Recent COVID-19 Virus Developments –

 

During the last three years, government reaction to the novel coronavirus (“COVID-19”) pandemic significantly disrupted local, national, and global economies and adversely impacted a broad range of industries, including banking and other financial services.  As COVID-19 events unfolded, the Company implemented various plans, strategies and protocols to protect its employees, maintain services for customers, assure the functional continuity of its operating systems, controls and processes, and mitigate financial risks posed by changing market conditions.

 

While direct impacts of COVID-19 appear to be declining and conditions have improved as of  December 31, 2022, if there is a resurgence in the virus, the Company could experience adverse effects on its business, financial condition, results of operations and cash flows.  While it is not possible to know the full extent that the impact of COVID-19, and any potential resulting measures to curtail its spread, will have on the Company's future operations, the Company's management believes its financial position, including high levels of capital and liquidity, will allow it to successfully endure the negative economic impacts of the pandemic.

 

Recent Accounting Standards

 

Standards Adopted 

 

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU requires earlier recording of credit losses on loans and other financial assets held by financial institutions and other organizations. This ASU also requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.  It further requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, the ASU amends the accounting for credit losses in investments in debt securities and purchased financial assets with credit deterioration.  The Company adopted the new standard as of January 1, 2021.  The standard was applied using the modified retrospective method as a cumulative-effect adjustment to retained earnings as of January 1, 2021.  Under this method, comparative periods will not be required to be restated for financial statements related to Topic 326.  Comparative prior period disclosures will be presented using the guidance for the allowance for loan losses.  This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of and the reasons for the change, which is solely a result of the adoption of the required standard.  This standard did not have a material impact on our investment securities portfolio at implementation.  Related to the implementation of the standard, the Company recorded an additional ACL for loans of $13.11 million, deferred tax assets of $1.81 million, and additional reserve for unfunded commitments of $509 thousand and an adjustment to retained earnings, net of tax, of $5.87 million.  See the table below for the impact of ASU 2016-13 on the Company’s consolidated balance sheet.

 

  

January 1, 2021

  
  

As Reported

  

Pre-

  

Impact of

  
  

Under

  

ASU 2016-13

  

ASU 2016-13

  
  

ASU 2016-13

  

Adoption

  

Adoption

  
              
              

Assets:

             

Non-covered loans held for investment

             

Allowance for credit losses on debt securities

             

Investment securities - available for sale

 $83,358  $83,358  $- 

A

Loans

             

Non-acquired loans and acquired performing loans

  2,146,972   2,146,972   -  

Acquired purchased deteriorated loans

  45,535   39,660   5,875 

B

Allowance for credit losses on loans

  (39,289)  (26,182)  (13,107)

C

Deferred tax asset

  19,306   17,493   1,813 

D

Accrued interest receivable - loans

  9,109   9,052   57 

B

              

Liabilities

             

Allowance for credit losses on off-balance sheet

             

credit exposures

  575   66   509 

E

              

Equity:

             

Retained earnings

  231,714   237,585   (5,870)

F

 

A.Per our analysis no ACL was necessary for investment securities available for sale.
B.Accrued interest receivable from acquired credit impaired loans of $57 thousand was reclassed to other assets and was offset by the reclass of the grossed up credit discount on acquired credit imparied loans of $57 thousand that was moved to the ACL for the purchased credit deteriorated loans.
C.Calculated adjustment to the ACL related to the adoption of ASU 2016-13.  Includes additional reserve related to purchased deteriorated loans of $5.88 million.
D.Effect of deferred tax assets related to the adjustment to the ACL form the adoption of ASU 2016-13 using a 23.37% tax rate.
E.Adjustment to the reserve for unfunded commitments related to the adoption of ASU 2016-13.
F.Net adjustment to retained earnings related to the adoption of ASU 2016-13.

 

Standards Not Yet Adopted

 

In March 2022, the Financial Accounting Standards Board issuedASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.  This new accounting topic provides accounting guidance for troubled debt restructuring ("TDR"), and write-offs, effective January 1, 2023, with early adoption permitted.  The amendments eliminate TDR accounting guidance for issuers that have adopted ASU 2016-13, create a single loan modification accounting model, and clarify disclosure requirements for loan modifications and write-offs.  We are currently reviewing the impact of the updated guidance on our Consolidated Financial Statements, but do no anticipate a material impact.  The Company will adopt the standard, effective January 1, 2023.

 
v3.22.4
Note 2 - Acquisitions and Divestitures
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Business Combination Disclosure [Text Block]

Note 2. Acquisitions and Divestitures

 

On September 16, 2022, the Company completed the sale of its Emporia, Virginia branch to Benchmark Community Bank (the "Emporia Branch Sale").  The sale included the branch real estate, certain personal property, and all deposits associated with the branch.  There were no loans included in the transaction.  Benchmark paid a deposit premium of two percent for certain deposits.  In addition, Benchmark paid $1.50 million for branch real estate and certain personal property.  Total deposits acquired by Benchmark totaled $61.05 million.  The deposits were composed of $18.38 million in demand, $28.46 million in interest-bearing demand, $11.52 million in savings, and $2.69 million in time deposits.  The Company recognized a gain of $1.66 million from the Emporia Branch Sale.

 

On November 18, 2022, the Company and NC-based Surrey Bancorp (“Surrey”), parent company of Surrey Bank & Trust, jointly announced their entry into an agreement and plan of merger pursuant to which First Community will acquire Surrey and its wholly owned bank subsidiary, Surrey Bank & Trust.  Upon completion of the transaction which is expected to close in 2023, the Company is expected to have total consolidated assets in excess of $3.6 billion with branch locations in four states.

 
v3.22.4
Note 3 - Debt Securities
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3. Debt Securities

 

The following tables present the amortized cost and fair value of available-for-sale debt securities, including gross unrealized gains and losses, as of the dates indicated:

 

  

December 31, 2022

 
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

 

(Amounts in thousands)

                

U.S. Agency securities

 $1,500  $—  $(15) $1,485 

U.S. Treasury securities

  161,617   —   (4,353)  157,264 

Municipal securities

  23,480   21   (192)  23,309 

Corporate Notes

  37,046   —   (2,189)  34,857 

Mortgage-backed Agency securities

  96,480   3   (13,049)  83,434 

Total

 $320,123  $24  $(19,798) $300,349 

 

  

December 31, 2021

 
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

 

(Amounts in thousands)

                

U.S. Agency securities

 $469  $—  $(3) $466 

Municipal securities

  28,596   198   —   28,794 

Mortgage-backed Agency securities

  9,935   —   (16)  9,919 

Total

  37,273   513   (673)  37,113 
  $76,273  $711  $(692) $76,292 

 

The following table presents the amortized cost and fair value of available-for-sale debt securities, by contractual maturity, as of December 31, 2022. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.

 

(Amounts in thousands)

 

U.S. Agency Securities

  

U.S. Treasury Securities

  

Municipal Securities

  

Corporate Notes

  

Total

 

Amortized cost maturity:

                    

One year or less

 $1,500  $32,013  $3,070  $8,510  $45,093 

After one year through five years

  —   129,604   17,626   28,536   175,766 

After five years through ten years

  —   —   2,784   —   2,784 

After ten years

  —   —   —   —   — 

Amortized cost

 $1,500  $161,617  $23,480  $37,046   223,643 

Mortgage-backed securities

                  96,480 

Total amortized cost

                 $320,123 
                     

Fair value maturity:

                    

One year or less

 $1,485  $31,786  $3,068  $8,448  $44,787 

After one year through five years

  —   125,478   17,467   26,409   169,354 

After five years through ten years

  —   —   2,774   —   2,774 

After ten years

  —   —   —   —   — 

Fair value

 $1,485  $157,264  $23,309  $34,857   216,915 

Mortgage-backed securities

                  83,434 

Total fair value

                 $300,349 

 

The following tables present the fair values and unrealized losses for available-for-sale debt securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of the dates indicated:

 

  

December 31, 2022

 
  

Less than 12 Months

  

12 Months or Longer

  

Total

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 

(Amounts in thousands)

                        

U.S. Agency securities

 $1,485  $(15) $—  $—  $1,485  $(15)

U.S. Treasury securities

  157,264   (4,353)  —   —   157,264   (4,353)

Municipal securities

  12,347   (192)  —   —   12,347   (192)

Corporate Notes

  32,368   (2,172)  2,489   (17)  34,857   (2,189)

Mortgage-backed Agency securities

  64,993   (8,824)  18,305   (4,225)  83,298   (13,049)

Total

 $268,457  $(15,556) $20,794  $(4,242) $289,251  $(19,798)

 

  

December 31, 2021

 
  

Less than 12 Months

  

12 Months or Longer

  

Total

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 

(Amounts in thousands)

                        

U.S. Agency securities

 $—  $—  $459  $(3) $459  $(3)

Municipal securities

  —   —   —   —   —   — 

Corporate Notes

  9,919   (16)  —   —   9,919   (16)

Mortgage-backed Agency securities

  14,092   (253)  8,384   (420)  22,476   (673)

Total

 $24,011  $(269) $8,843  $(423) $32,854  $(692)

 

There were 113 individual debt securities in an unrealized loss position as of December 31, 2022, and their combined depreciation in value represented 6.59% of the debt securities portfolio. There were 23 individual debt securities in an unrealized loss position as of December 31, 2021, and their combined depreciation in value represented  0.91 % of the debt securities portfolio.

 

There were no sales of available for sale debt securities in 2022 or in 2021.  In 2020, gross realized gains and losses from the sale of available for sale debt securities were $419 thousand and $34 thousand, respectively.  The carrying amount of securities pledged for various purposes totaled $22.43 million as of December 31, 2022, and $22.15 million as of December 31, 2021.

 

In determining whether or not a security is impaired, we consider the severity of the loss as well as our intent to hold the securities to maturity or the recovery of the cost basis.

 

U. S. Agency securities

 

The Company has one U.S. Agency security as of   December 31, 2022, with an amortized cost of $1.5 million.  The security is issued by the Federal Home Loan Bank.  The security is guaranteed of full and timely payments by the issuing agency.  Based on management's analysis and judgement, there was no credit loss attributable to the U.S. Agency security at December 31, 2022.

 

U.S. Treasury securities

 

U.S. Treasury securities are backed by the full faith and credit of the United States government.  At  December 31, 2022, the total amortized cost of available for sale U. S. Treasury securities was $161.62 million.  Based on management's analysis and judgement, there were no credit losses attributable to U.S. Treasury securities at December 31, 2022.

 

Municipal securities

 

Municipal securities are securities issued by various municipalities in the United States.  At  December 31, 2022, the total amortized cost of available for sale Municipal securities was $23.48 million.  The majority of the portfolio was rated AA or higher, with no securities rated below investment grade at year-end.  Based on management's analysis and judgement, there were no credit losses attributable to Municipal securities at December 31, 2022.

 

Corporate Notes

 

Corporate notes are debt obligations issued by public or private corporations.  As of   December 31, 2022, the total amortized cost of available for sale Corporate notes was $37.05 million.  The majority of the portfolio was rated AA or higher, with no securities rated below investment grade at year-end.  Based on management's analysis and judgement, there were no credit losses attributable to Corporate note securities at December 31, 2022.

 

Mortgage-backed Agency securities

 

Mortgage-backed Agency securities within the Company's portfolio are issued by Ginnie Mae, Fannie Mae, and Freddie Mac.  As of   December 31, 2022, the total amortized cost of available for sale Mortgage-backed Agency securities was $96.48 million.  Each agency provides a guarantee of full and timely payments of principal and interest by the issuing agency.  Based on management's analysis and judgement, there were no credit losses attributable to Mortgage-backed Agency securities at December 31, 2022.

 

 
v3.22.4
Note 4 - Loans
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 4. Loans

 

The Company groups loans into three segments (commercial loans, consumer real estate loans, and consumer and other loans) with each segment divided into various classes.  Customer overdrafts reclassified as loans totaled $1.80 million as of December 31, 2022, and $1.65 million as of December 31, 2021. Deferred loan fees were $8.81 million as of December 31, 2022, and $5.06 million as of December 31, 2021. For information about off-balance sheet financing, see Note 19, “Litigation, Commitments, and Contingencies,” to the Consolidated Financial Statements of this report.

 

In accordance with the adoption of ASU 2016-13, the table below reflects the loan portfolio at the amortized cost basis for the periods indicated, to include net deferred loan fees of $8.81 million as of December 31, 2022, and $5.06 million as of December 31, 2021.  Additionally, included is, the unamortized discount total related to loans acquired of $3.80 million as of  December 31, 2022, and $5.41 million as of  December 31, 2021.  Accrued interest receivable (AIR) of $7.94 million as of December 31, 2022, and $7.54 million as of December 31, 2021 , is accounted for separately and reported in Interest Receivable on the Consolidated Balance Sheet.

 

The following table presents loans, net of unearned income by loan class, as of the dates indicated:

 

   

December 31,

  
   

2022

    

2021

  

(Amounts in thousands)

  

Amount

    

Percent

    

Amount

    

Percent

  

Commercial loans

                                

Construction, development, and other land

   $ 117,174       4.88 %   $ 65,806       3.04 %

Commercial and industrial

     150,428       6.27 %     133,630       6.17 %

Multi-family residential

     148,026       6.17 %     100,402       4.64 %

Single family non-owner occupied

     206,121       8.59 %     198,778       9.18 %

Non-farm, non-residential

     787,703       32.82 %     707,506       32.67 %

Agricultural

     12,032       0.50 %     9,341       0.43 %

Farmland

     11,779       0.49 %     15,013       0.69 %

Total commercial loans

     1,433,263       59.72 %     1,230,476       56.82 %

Consumer real estate loans

                                

Home equity lines

     75,642       3.15 %     79,857       3.69 %

Single family owner occupied

     734,540       30.61 %     703,864       32.50 %

Owner occupied construction

     10,366       0.43 %     16,910       0.78 %

Total consumer real estate loans

     820,548       34.19 %     800,631       36.97 %

Consumer and other loans

                                

Consumer loans

     144,582       6.02 %     129,794       5.99 %

Other

     1,804       0.07 %     4,668       0.22 %

Total consumer and other loans

     146,386       6.09 %     134,462       6.21 %

Total loans held for investment, net of unearned income

   $ 2,400,197       100.00 %   $ 2,165,569       100.00 %

 

The Company began participating as a Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) lender during the second quarter of 2020. At December 31, 2022, there was no remaining balance of PPP loans, compared to $20.64 million at December 31, 2021 which were included in commercial and industrial loan balances. There were no remaining net deferred loan origination fees related to the PPP loans, net of deferred loan origination costs at December 31, 2022.  At  December 31, 2021 , the amount of net deferred loan origination fees related to PPP loans was $733 thousand.  During 2022, the Company recorded amortization of net deferred loan origination fees of $733 thousand on PPP loans, compared with $2.74 million for 2021.

 

 

 
v3.22.4
Note 5 - Credit Quality
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Financing Receivables [Text Block]

Note 5. Credit Quality

 

The Company uses a risk grading matrix to assign a risk grade to each loan in its portfolio. Loan risk ratings may be upgraded or downgraded to reflect current information identified during the loan review process. The general characteristics of each risk grade are as follows:

 

 

●

Pass -- This grade is assigned to loans with acceptable credit quality and risk. The Company further segments this grade based on borrower characteristics that include capital strength, earnings stability, liquidity, leverage, and industry conditions.

 

●

Special Mention -- This grade is assigned to loans that require an above average degree of supervision and attention. These loans have the characteristics of an asset with acceptable credit quality and risk; however, adverse economic or financial conditions exist that create potential weaknesses deserving of management’s close attention. If potential weaknesses are not corrected, the prospect of repayment may worsen.

 

●

Substandard -- This grade is assigned to loans that have well defined weaknesses that may make payment default, or principal exposure, possible. These loans will likely be dependent on collateral liquidation, secondary repayment sources, or events outside the normal course of business to meet repayment terms.

 

●

Doubtful -- This grade is assigned to loans that have the weaknesses inherent in substandard loans; however, the weaknesses are so severe that collection or liquidation in full is unlikely based on current facts, conditions, and values. Due to certain specific pending factors, the amount of loss cannot yet be determined.

 

●

Loss -- This grade is assigned to loans that will be charged off or charged down when payments, including the timing and value of payments, are uncertain. This risk grade does not imply that the asset has no recovery or salvage value, but simply means that it is not practical or desirable to defer writing off, either all or a portion of, the loan balance even though partial recovery may be realized in the future.

 

The following tables present the recorded investment of the loan portfolio, by loan class and credit quality, as of the dates indicated. 

 

  

December 31, 2022

 
      

Special

                 

(Amounts in thousands)

 

Pass

  

Mention

  

Substandard

  

Doubtful

  

Loss

  

Total

 

Commercial loans

                        

Construction, development, and other land

 $115,972  $853  $349  $—  $—  $117,174 

Commercial and industrial

  147,543   920   1,965   —   —   150,428 

Multi-family residential

  143,859   3,946   221   —   —   148,026 

Single family non-owner occupied

  195,775   2,303   8,043   —   —   206,121 

Non-farm, non-residential

  761,154   14,903   11,646   —   —   787,703 

Agricultural

  11,722   47   263   —   —   12,032 

Farmland

  9,868   573   1,338   —   —   11,779 

Consumer real estate loans

                        

Home equity lines

  72,927   288   2,427   —   —   75,642 

Single family owner occupied

  706,952   1,958   25,630   —   —   734,540 

Owner occupied construction

  10,204   —   162   —   —   10,366 

Consumer and other loans

                        

Consumer loans

  141,551   11   3,020   —   —   144,582 

Other

  1,804   —   —   —   —   1,804 

Total loans

 $2,319,331  $25,802  $55,064  $—  $—  $2,400,197 

 

 

  

December 31, 2021

 
      

Special

                 

(Amounts in thousands)

 

Pass

  

Mention

  

Substandard

  

Doubtful

  

Loss

  

Total

 

Commercial loans

                        

Construction, development, and other land

 $64,498  $451  $857  $—  $—  $65,806 

Commercial and industrial

  128,770   1,005   3,855   —   —   133,630 

Multi-family residential

  98,457   1,090   855   —   —   100,402 

Single family non-owner occupied

  186,184   3,607   8,977   10   —   198,778 

Non-farm, non-residential

  665,559   25,624   16,323   —   —   707,506 

Agricultural

  8,758   70   513   —   —   9,341 

Farmland

  11,939   633   2,441   —   —   15,013 

Consumer real estate loans

                        

Home equity lines

  76,259   426   3,172   —   —   79,857 

Single family owner occupied

  671,459   2,420   29,985   —   —   703,864 

Owner occupied construction

  16,629   —   281   —   —   16,910 

Consumer and other loans

                        

Consumer loans

  127,514   16   2,264   —   —   129,794 

Other

  4,668   —   —   —   —   4,668 

Total loans

 $2,060,694  $35,342  $69,523  $10  $-  $2,165,569 

    

The following tables present the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of the dates indicated:

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2022

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Construction, development

                                

and other land

                                

Pass

 $58,770  $39,995  $4,602  $3,050  $2,485  $5,608  $1,462  $115,972 

Special Mention

  -   225   -   -   94   534   -   853 

Substandard

  -   -   267   71   11   -   -   349 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total construction, development, and other land

 $58,770  $40,220  $4,869  $3,121  $2,590  $6,142  $1,462  $117,174 

Commercial and industrial

                                

Pass

 $69,678  $23,746  $12,047  $7,729  $9,121  $8,890  $16,332  $147,543 

Special Mention

  227   20   21   367   185   1   99   920 

Substandard

  130   112   114   620   192   797   -   1,965 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total commercial and industrial

 $70,035  $23,878  $12,182  $8,716  $9,498  $9,688  $16,431  $150,428 

Multi-family residential

                                

Pass

 $45,261  $20,881  $31,087  $3,733  $1,328  $41,063  $506  $143,859 

Special Mention

  -   -   -   -   -   3,946   -   3,946 

Substandard

  -   -   -   -   -   221   -   221 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total multi-family residential

 $45,261  $20,881  $31,087  $3,733  $1,328  $45,230  $506  $148,026 

Non-farm, non-residential

                                

Pass

 $218,595  $145,675  $114,840  $52,575  $35,564  $185,448  $8,457  $761,154 

Special Mention

  -   1,927   852   1,193   2,708   8,076   147   14,903 

Substandard

  -   1,267   675   2,509   1,531   5,664   -   11,646 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total non-farm, non-residential

 $218,595  $148,869  $116,367  $56,277  $39,803  $199,188  $8,604  $787,703 

Agricultural

                                

Pass

 $6,244  $3,225  $1,003  $376  $154  $214  $506  $11,722 

Special Mention

  -   33   14   -   -   -   -   47 

Substandard

  124   37   1   66   24   11   -   263 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total agricultural

 $6,368  $3,295  $1,018  $442  $178  $225  $506  $12,032 

Farmland

                                

Pass

 $646  $713  $796  $77  $869  $6,150  $617  $9,868 

Special Mention

  -   109   -   -   222   242   -   573 

Substandard

  -   -   12   -   253   1,073   -   1,338 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total farmland

 $646  $822  $808  $77  $1,344  $7,465  $617  $11,779 

 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2022

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Home equity lines

                                

Pass

 $1,960  $198  $241  $-  $24  $7,429  $63,075  $72,927 

Special Mention

  -   -   -   -   -   117   171   288 

Substandard

  -   -   27   35   114   1,253   998   2,427 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total home equity lines

 $1,960  $198  $268  $35  $138  $8,799  $64,244  $75,642 

Single family Mortgage

                                

Pass

 $157,890  $237,363  $207,480  $48,795  $36,678  $214,148  $373  $902,727 

Special Mention

  -   376   90   363   262   3,170   -   4,261 

Substandard

  461   1,196   740   1,217   1,991   28,068   -   33,673 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total single family owner and non-owner occupied

 $158,351  $238,935  $208,310  $50,375  $38,931  $245,386  $373  $940,661 

Owner occupied construction

                                

Pass

 $6,357  $3,344  $-  $23  $11  $469  $-  $10,204 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   162   -   -   -   -   162 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total owner occupied construction

 $6,357  $3,344  $162  $23  $11  $469  $-  $10,366 

Consumer loans

                                

Pass

 $69,579  $37,603  $16,033  $7,640  $2,528  $2,040  $7,932  $143,355 

Special Mention

  -   5   -   6   -   -   -   11 

Substandard

  881   1,002   466   416   36   159   60   3,020 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total consumer loans

 $70,460  $38,610  $16,499  $8,062  $2,564  $2,199  $7,992  $146,386 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2022

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Total Loans

                                

Pass

 $634,980  $512,743  $388,129  $123,998  $88,762  $471,459  $99,260  $2,319,331 

Special Mention

  227   2,695   977   1,929   3,471   16,086   417   25,802 

Substandard

  1,596   3,614   2,464   4,934   4,152   37,246   1,058   55,064 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total loans

 $636,803  $519,052  $391,570  $130,861  $96,385  $524,791  $100,735  $2,400,197 

 

 

 

 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2021

 

2021

  

2020

  

2019

  

2018

  

2017

  

Prior

  

Revolving

  

Total

 

Construction, development

                                

and other land

                                

Pass

 $40,207  $10,127  $3,081  $3,704  $1,308  $5,717  $354  $64,498 

Special Mention

  -   266   -   128   -   21   36   451 

Substandard

  -   -   128   11   291   427   -   857 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total construction, development, and other land

 $40,207  $10,393  $3,209  $3,843  $1,599  $6,165  $390  $65,806 

Commercial and industrial

                                

Pass

 $34,539  $18,887  $13,679  $13,772  $4,817  $5,890  $16,544  $108,128 

Special Mention

  32   60   597   192   28   -   96   1,005 

Substandard

  184   355   706   384   842   866   518   3,855 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total commercial and industrial

 $34,755  $19,302  $14,982  $14,348  $5,687  $6,756  $17,158  $112,988 

Paycheck Protection Loans

                                

Pass

 $16,482  $4,160  $-  $-  $-  $-  $-  $20,642 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total Paycheck Protection Loans

 $16,482  $4,160  $-  $-  $-  $-  $-  $20,642 

Multi-family residential

                                

Pass

 $11,307  $24,299  $4,644  $1,897  $8,413  $46,962  $935  $98,457 

Special Mention

  -   -   -   -   -   1,090   -   1,090 

Substandard

  -   -   -   -   -   855   -   855 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total multi-family residential

 $11,307  $24,299  $4,644  $1,897  $8,413  $48,907  $935  $100,402 

Non-farm, non-residential

                                

Pass

 $147,978  $146,381  $62,651  $50,943  $43,776  $199,812  $14,018  $665,559 

Special Mention

  397   3,334   823   2,595   9,190   9,135   150   25,624 

Substandard

  1,161   711   2,508   2,531   3,232   5,953   227   16,323 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total non-farm, non-residential

 $149,536  $150,426  $65,982  $56,069  $56,198  $214,900  $14,395  $707,506 

Agricultural

                                

Pass

 $4,564  $1,548  $998  $534  $346  $335  $433  $8,758 

Special Mention

  43   27   -   -   -   -   -   70 

Substandard

  44   11   282   39   17   120   -   513 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total agricultural

 $4,651  $1,586  $1,280  $573  $363  $455  $433  $9,341 

Farmland

                                

Pass

 $428  $1,047  $82  $1,125  $887  $6,835  $1,535  $11,939 

Special Mention

  189   -   -   240   5   199   -   633 

Substandard

  -   14   519   249   264   1,395   -   2,441 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total farmland

 $617  $1,061  $601  $1,614  $1,156  $8,429  $1,535  $15,013 

 

 

 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2021

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Home equity lines

                                

Pass

 $115  $59  $-  $25  $2  $2,168  $73,890  $76,259 

Special Mention

  -   -   -   -   -   -   426   426 

Substandard

  -   -   28   249   128   1,316   1,451   3,172 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total home equity lines

 $115  $59  $28  $274  $130  $3,484  $75,767  $79,857 

Single family Mortgage

                                

Pass

 $239,917  $225,294  $61,925  $46,716  $41,757  $240,845  $1,189  $857,643 

Special Mention

  399   510   937   269   137   3,775   -   6,027 

Substandard

  1,213   799   1,475   1,668   1,878   31,929   -   38,962 

Doubtful

  -   -   -   -   -   10   -   10 

Loss

  -   -   -   -   -   -   -   - 

Total single family owner and non-owner occupied

 $241,529  $226,603  $64,337  $48,653  $43,772  $276,559  $1,189  $902,642 

Owner occupied construction

                                

Pass

 $9,689  $4,729  $178  $22  $428  $1,583  $-  $16,629 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   281   -   281 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total owner occupied construction

 $9,689  $4,729  $178  $22  $428  $1,864  $-  $16,910 

Consumer loans

                                

Pass

 $65,018  $31,065  $16,548  $4,980  $2,306  $10,040  $2,225  $132,182 

Special Mention

  -   -   16   -   -   -   -   16 

Substandard

  328   663   824   107   78   186   78   2,264 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total consumer loans

 $65,346  $31,728  $17,388  $5,087  $2,384  $10,226  $2,303  $134,462 

 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2021

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Total Loans

                                

Pass

 $570,244  $467,596  $163,786  $123,718  $104,040  $520,187  $111,123  $2,060,694 

Special Mention

  1,060   4,197   2,373   3,424   9,360   14,220   708   35,342 

Substandard

  2,930   2,553   6,470   5,238   6,730   43,328   2,274   69,523 

Doubtful

  -   -   -   -   -   10   -   10 

Loss

  -   -   -   -   -   -   -   - 

Total loans

 $574,234  $474,346  $172,629  $132,380  $120,130  $577,745  $114,105  $2,165,569 

 

The Company generally places a loan on nonaccrual status when it is 90 days or more past due.  The following table presents nonaccrual loans, by loan class, as of the dates indicated:

 

  

December 31, 2022

  

December 31, 2021

 

(Amounts in thousands)

 

No Allowance

  

With an Allowance

  

Total

  

No Allowance

  

With an Allowance

  

Total

 

Commercial loans

                        

Construction, development, and other land

 $31  $—  $31  $409  $—  $409 

Commercial and industrial

  438   —   438   1,734   —   1,734 

Multi-family residential

  220   —   220   208   —   208 

Single family non-owner occupied

  984   —   984   2,304   —   2,304 

Non-farm, non-residential

  1,771   —   1,771   3,439   1,100   4,539 

Agricultural

  9   —   9   136   —   136 

Farmland

  133   —   133   222   —   222 

Consumer real estate loans

                        

Home equity lines

  400   —   400   767   —   767 

Single family owner occupied

  8,228   589   8,817   8,957   —   8,957 

Owner occupied construction

  —   —   —   —   —   — 

Consumer and other loans

                        

Consumer loans

  2,405   —   2,405   1,492   —   1,492 

Total nonaccrual loans

 $14,619  $589  $15,208  $19,668  $1,100  $20,768 

 

During 2022, $5 thousand in nonaccrual loan interest was recognized compared to $72 thousand in 2021.

 

The following tables presents the aging of past due loans, by loan class, as of the date indicated.  Nonaccrual loans 30 days or more past due are included in the applicable delinquency category.

 

  

December 31, 2022

 
                          

Amortized Cost of

 
  

30 - 59 Days

  

60 - 89 Days

  

90+ Days

  

Total

  

Current

  

Total

  

>90 Days Accruing

 

(Amounts in thousands)

 

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Loans

  

Loans

  

No Allowance

 

Commercial loans

                            

Construction, development, and other land

 $393  $8  $23  $424  $116,750  $117,174  $— 

Commercial and industrial

  756   129   217   1,102   149,326   150,428   — 

Multi-family residential

  —   —   83   83   147,943   148,026   — 

Single family non-owner occupied

  990   122   299   1,411   204,710   206,121   — 

Non-farm, non-residential

  646   52   548   1,246   786,457   787,703   — 

Agricultural

  36   135   9   180   11,852   12,032   — 

Farmland

  —   —   133   133   11,646   11,779   — 

Consumer real estate loans

                            

Home equity lines

  519   115   262   896   74,746   75,642   — 

Single family owner occupied

  5,951   2,322   3,166   11,439   723,101   734,540   — 

Owner occupied construction

  —   —   —   —   10,366   10,366   — 

Consumer and other loans

                            

Consumer loans

  4,282   1,960   1,459   7,701   136,881   144,582   — 

Other

  —   —   —   —   1,804   1,804   — 

Total loans

 $13,573  $4,843  $6,199  $24,615  $2,375,582  $2,400,197  $— 

 

 

  

December 31, 2021

 
                          

Amortized Cost of

 
  

30 - 59 Days

  

60 - 89 Days

  

90+ Days

  

Total

  

Current

  

Total

  

>90 Days Accruing

 

(Amounts in thousands)

 

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Loans

  

Loans

  

No Allowance

 

Commercial loans

                            

Construction, development, and other land

 $52  $—  $120  $172  $65,634  $65,806  $— 

Commercial and industrial

  325   35   1,394   1,754   131,876   133,630   — 

Multi-family residential

  97   —   —   97   100,305   100,402   — 

Single family non-owner occupied

  1,210   583   795   2,588   196,190   198,778   — 

Non-farm, non-residential

  1,002   441   2,333   3,776   703,730   707,506   — 

Agricultural

  73   7   101   181   9,160   9,341   — 

Farmland

  52   —   222   274   14,739   15,013   — 

Consumer real estate loans

                            

Home equity lines

  275   388   333   996   78,861   79,857   — 

Single family owner occupied

  4,740   2,584   3,880   11,204   692,660   703,864   — 

Owner occupied construction

  139   —   —   139   16,771   16,910   — 

Consumer and other loans

                            

Consumer loans

  3,469   1,182   1,049   5,700   124,094   129,794   — 

Other

  —   —   —   —   4,668   4,668   — 

Total loans

 $11,434  $5,220  $10,227  $26,881  $2,138,688  $2,165,569  $— 

 

ASC 326 prescribes that when an entity determines foreclosure is probable, the expected credit loss is required to be measured based on the fair value of the collateral.  As a practical expedient, an entity may use the fair value as of the reporting date when recording the net carrying amount of the asset.  For the collateral dependent asset ("CDA") a credit loss expense is recorded for loan amounts in excess of fair value of the collateral.  The table below summarizes collateral dependent loans, where foreclosure is possible, by type of collateral, and the extent to which they are collateralized during the periods.   

 

 

  

December 31, 2022

  

December 31, 2021

 

(Amounts in thousands)

 

Balance

  

Collateral Coverage

  

Coverage Ratio

  

Balance

  

Collateral Coverage

  

Coverage Ratio

 

Commercial Real Estate

                        

Hotel

 $-  $-   -  $-  $-   - 

Office

  -   -   -   -   -   - 

Other

  -   -   -   2,216   2,312   104.33%

Retail

  -   -   -   -   -   - 

Multi-Family

                        

Industrial

  -   -   -   -   -   - 

Office

  -   -   -   -   -   - 

Other

  -   -   -   -   -   - 

Commercial and industrial

                        

Industrial

  -   -   -   -   -   - 

Other

  -   -   -   -   -   - 

Home equity loans

  -   -   -   -   -   - 

Consumer owner occupied

  589   574   97.45%  -   -   - 

Consumer

  -   -   -   -   -   - 

Total collateral dependent loans

 $589  $574   97.45% $2,216  $2,312   104.33%

 

 

The Company may make concessions in interest rates, loan terms and/or amortization terms when restructuring loans for borrowers experiencing financial difficulty. Certain TDRs are classified as nonperforming at the time of restructuring and are returned to performing status after six months of satisfactory payment performance; however, these loans remain identified as individually evaluated until full payment or other satisfaction of the obligation occurs.

 

The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated:

 

  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

 

Nonaccrual(1)

  

Accruing

  

Total

  

Nonaccrual(1)

  

Accruing

  

Total

 

Commercial loans

                        

Commercial and industrial

 $—  $374  $374  $396  $470  $866 

Single family non-owner occupied

  142   838   980   857   1,100   1,957 

Non-farm, non-residential

  —   747   747   —   2,021   2,021 

Consumer real estate loans

                        

Home equity lines

  —   55   55   —   67   67 

Single family owner occupied

  1,182   5,073   6,255   1,266   4,755   6,021 

Owner occupied construction

  —   —   —   —   212   212 

Consumer and other loans

                        

Consumer loans

  —   25   25   —   27   27 

Total TDRs

 $1,324  $7,112  $8,436  $2,519  $8,652  $11,171 
                         

Allowance for credit losses related to TDRs

         $—          $— 

 

(1)

Nonaccrual TDRs are included in total nonaccrual loans disclosed in the nonaccrual table above.

 

The following table presents interest income recognized on TDRs for the periods indicated:

 

  

Year Ended December 31,

 
  

2022

  

2021

  

2020

 

(Amounts in thousands)

            

Interest income recognized

 $383  $422  $473 

 

The following table presents loans modified as TDRs, by type of concession made and loan class, that were restructured during the periods indicated.

 

  

Year Ended December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

 

Total Contracts

  

Pre-modification Recorded Investment

  

Post modification Recorded Investment(1)

  

Total Contracts

  

Pre-modification Recorded Investment

  

Post modification Recorded Investment(1)

 

Below market interest rate

                        

Single family owner occupied

  1  $31  $32   —  $—  $— 

Below market interest rate and extended payment term

                        

Single family non-owner occupied

  —   —   —   1   165.00   165.00 

Single family owner occupied

  —   —   —   4   402   402 

Total below market interest rate and extended payment term

  —   —   —   5   567   567 

Principal deferral

                        

Single family non-owner occupied

  —   —   —   1   753   753 

Single family owner occupied

  5   494   481   1   41   41 

Total principal deferral

  5   494   481   2   794   794 

Total

  6  $525  $513   7  $1,361  $1,361 

 

(1)

Represents the loan balance immediately following modification

 

There were no payment defaults for loans restructured within the previous 12 months for  December 31, 2022 or 2021.

 

 

The following table provides information about OREO, which consists of properties acquired through foreclosure, as of the dates indicated:

 

  

December 31, 2022

  

December 31, 2021

 

(Amounts in thousands)

        

Total OREO

 $703  $1,015 
         

OREO secured by residential real estate

 $407  $337 

Residential real estate loans in the foreclosure process(1)

 $1,474  $2,210 

 

(1)

The recorded investment in consumer mortgage loans collateralized by residential real estate that are in the process of foreclosure according to local requirements of the applicable jurisdiction

 
v3.22.4
Note 6 - Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Allowance for Credit Losses [Text Block]

Note 6. Allowance for Credit Losses

 

The following tables present the changes in the allowance for credit/loan losses, by loan segment, during the periods indicated. 

 

  

Year Ended December 31, 2022

 

(Amounts in thousands)

 

Commercial

  

Consumer Real Estate

  

Consumer and Other

  Total Allowance 

Beginning balance

 $14,775  $9,972  $3,111  $27,858 

Provision for (recovery of) credit losses charged to operations

  431   (1,121)  7,262   6,572 

Charge-offs

  (633)  (427)  (6,743)  (7,803)

Recoveries

  2,640   507   782   3,929 

Net (charge-offs) recoveries

  2,007   80   (5,961)  (3,874)

Ending balance

 $17,213  $8,931  $4,412  $30,556 

 

  

Year Ended December 31, 2021

 

(Amounts in thousands)

 

Commercial

  

Consumer Real Estate

  

Consumer and Other

  Total Allowance 

Beginning balance

 $14,661  $8,951  $2,570  $26,182 

Cumulative effect of adoption of ASU 2016-13

  8,360   4,145   602   13,107 

(Recovery of) provision for credit losses charged to operations

  (6,949)  (3,653)  2,131   (8,471)

Charge-offs

  (3,431)  (318)  (3,025)  (6,774)

Recoveries

  2,134   847   833   3,814 

Net (charge-offs) recoveries

  (1,297)  529   (2,192)  (2,960)

Ending balance

 $14,775  $9,972  $3,111  $27,858 

 
v3.22.4
Note 7 - Premises, Equipment, and Leases
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]

Note 7. Premises, Equipment, and Leases

 

Premises and Equipment

 

The following table presents the components of premises and equipment as of the dates indicated:

 

  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Land

 $19,460  $20,402 

Buildings and leasehold improvements

  47,009   48,118 

Equipment

  40,552   40,501 

Total premises and equipment

  107,021   109,021 

Accumulated depreciation and amortization

  (59,681)  (56,737)

Total premises and equipment, net

 $47,340  $52,284 

 

There were no impairment charges related to certain long-term investments in land and buildings in 2022. Impairment charges of $781 thousand were recognized in 2021, and $812 thousand in 2020. Depreciation and amortization expense for premises and equipment was $4.15 million  in 2022, $4.47 million  in 2021, and $4.46 million  in 2020.

 

Leases

 

Effective January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)”; the standard was adopted prospectively. The Company currently has two operating leases that are recorded as a right of use (“ROU”) asset and operating lease liability. The right of use asset is recorded in other assets on the consolidated balance sheet, while the lease liability is recorded in other liabilities. The ROU asset represents the right to use an underlying asset during the lease term and the lease liability represents the obligation to make lease payments arising from the lease. The current ROU asset and lease liability were recognized at the adoption date of January 1, 2019, based on the present value of the remaining lease payments using a discount rate that represented our incremental borrowing rate at the time of adoption. The lease expense which is comprised of the amortization of the ROU asset and the implicit interest accreted on the lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy expense in the consolidated statements of income.

 

The Company’s current operating leases relate to one existing bank branch and one operating lease acquired in a prior bank acquisition. The acquired operating lease was for vacant land and will terminate in July of 2029.   The Company's ROU asset was $648 thousand as of   December 31, 2022 compared to $741 thousand as of December 31, 2021.  The operating lease liability as of  December 31, 2022  was $670 thousand compared to $770 thousand as of December 31, 2021.  The Company’s total operating leases have remaining terms of 2 years to 6.5 years compared with 4 months to 7.5 years as of December 31, 2021. The  December 31, 2022  weighted average discount was  3.28%, compared to 3.22% from December 31, 2021.

 

Future minimum lease payments as of the dates indicated are as follows:

 

Year

 

Amount

 

(Amounts in thousands)

    

2023

 $119 

2024

  117 

2025

  101 

2026

  101 

2027 and thereafter

  261 

Total lease payments

  699 

Less: Interest

  (29)

Present value of lease liabilities

 $670 

 

Lease expense which is included in occupancy expense on the Consolidated Statement of Income was $175 thousand  in 2022, $182 thousand in 2021, and $180 thousand  in 2020. The Company maintained no subleases as of December 31, 2022.

  
v3.22.4
Note 8 - Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 8. Goodwill and Other Intangible Assets

 

Goodwill

 

The Company has one reporting unit for goodwill impairment testing purposes, Community Banking. The Company performed its annual assessment of goodwill as of October 31, 2022, and concluded that the carrying value of goodwill was not impaired. No events have occurred after the analysis to indicate potential impairment.

 

As of December 31, 2022, the Company's goodwill totaled $129.57 million and was the same for both 2021 and 2020.

 

Other Intangible Assets

 

As of December 31, 2022, the remaining lives of core deposit intangibles ranged from 2.50 years to 7 years with a weighted average remaining life of 5.87 years.  The following table presents the components of other intangible assets as of the dates indicated:

 

  

December 31,

 
  

2022

  

2021

  

2020

 

(Amounts in thousands)

            

Core deposit intangibles

 $12,674  $12,674  $12,674 

Accumulated amortization

  (8,498)  (7,052)  (5,605)

Total other intangible assets, net

 $4,176  $5,622  $7,069 

 

Amortization expense for other intangible assets was $1.45 million in 2022,  2021, and in 2020.

 

The following schedule presents the estimated amortization expense for intangible assets, by year, as of December 31, 2022:

 

(Amounts in thousands)

    

2023

 $878 

2024

  856 

2025

  647 

2026

  449 

2027

  449 

2028 and thereafter

  897 

Total estimated amortization expense

 $4,176 

 
v3.22.4
Note 9 - Deposits
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Deposit Liabilities Disclosures [Text Block]

Note 9. Deposits

 

The following table presents the components of deposits as of the dates indicated:

 

  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Noninterest-bearing demand deposits

 $872,168  $842,783 

Interest-bearing deposits

        

Interest-bearing demand deposits

  679,609   676,254 

Money market accounts

  264,734   293,915 

Savings deposits

  578,974   561,576 

Certificates of deposit

  180,008   237,919 

Individual retirement accounts

  103,322   116,944 

Total interest-bearing deposits

  1,806,647   1,886,608 

Total deposits

 $2,678,815  $2,729,391 

 

The following schedule presents the contractual maturities of time deposits, by year, as of December 31, 2022:

 

(Amounts in thousands)

    

2023

 $161,250 

2024

  50,680 

2025

  30,246 

2026

  18,010 

2027

  18,191 

2028 and thereafter

  4,953 

Total contractual maturities

 $283,330 

 

Time deposits of $250 thousand or more totaled $15.21 million as of December 31, 2022, and $27.14 million as of December 31, 2021. The following schedule presents the contractual maturities of time deposits of $250 thousand or more as of December 31, 2022:

 

(Amounts in thousands)

    

Three months or less

 $2,406 

Over three through six months

  1,160 

Over six through twelve months

  3,754 

Over twelve months

  7,894 

Total contractual maturities

 $15,214 

 
v3.22.4
Note 10 - Borrowings
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 10. Borrowings

 

The following table presents the components of borrowings as of the dates indicated:

 

   

December 31,

  
   

2022

    

2021

  

(Amounts in thousands)

  

Balance

     Weighted Average Rate    

Balance

     Weighted Average Rate  
                                 

Retail repurchase agreements

   $ 1,874       0.07 %   $ 1,536       0.07 %

 

Repurchase agreements are secured by certain securities that remain under the Company’s control during the terms of the agreements. The counterparties may redeem callable repurchase agreements, which could substantially shorten the borrowings’ lives. The prepayment or early termination of a repurchase agreement may result in substantial penalties based on market conditions. The following schedule presents the contractual maturities of repurchase agreements, by type of collateral pledged, as of December 31, 2022:

 

   

Overnight and Continuous

    

Up to 30 Days

    

30 - 90 Days

     Greater than 90 Days    

Total

  
                                         

(Amounts in thousands)

                                        

Municipal securities

   $ 453     $ -     $ -     $ -     $ 453  

Mortgage-backed Agency securities

     1,421       —       —       —       1,421  

Total

   $ 1,874     $ —     $ —     $ —     $ 1,874  

 

As of December 31, 2022, unused borrowing capacity with the FHLB totaled $405.81 million, net of FHLB letters of credit of $116.28 million. The Company pledged $731.43 million in qualifying loans to secure the FHLB letters of credit, which provide an attractive alternative to pledging securities for public unit deposits.
v3.22.4
Note 11 - Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 11. Derivative Instruments and Hedging Activities

 

Generally, derivative instruments help the Company manage exposure to market risk and meet customer financing needs. Market risk represents the possibility that fluctuations in external factors such as interest rates, market-driven loan rates, prices, or other economic factors will adversely affect economic value or net interest income.

 

The Company uses interest rate swap contracts to modify its exposure to interest rate risk caused by changes in the LIBOR curve in relation to certain designated fixed rate loans. These instruments are used to convert these fixed rate loans to an effective floating rate. If the LIBOR rate falls below the loan’s stated fixed rate for a given period, the Company will owe the floating rate payer the notional amount times the difference between LIBOR and the stated fixed rate. If LIBOR is above the stated rate for a given period, the Company will receive payments based on the notional amount times the difference between LIBOR and the stated fixed rate.   In March 2020, the Company adopted ASU 2020-04, "Reference Rate Reform" which provided temporary guidance to ease the potential burden in accounting for reference rate reform.  With global capital markets moving away from LIBOR, the guidance provided optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships that reference LIBOR.  The migration from LIBOR is not expected to have any material effect on on the Company's financial statements when and as changes are made to migrate from the reference rate.

 

Certain of the Company’s interest rate swaps qualify as fair value hedging instruments; therefore, fair value changes in the derivative and hedged item attributable to the hedged risk are recognized in earnings in the same period. The fair value hedges were effective as of December 31, 2022. 

 

Through July 2022, the Company had certain interest rate swaps that did not qualify as fair value hedges and the fair value changes in the derivatives were recognized in earnings each period.  Only July 26, 2022, these swaps were terminated at a cost of $72 thousand.

 

The following table presents the notional, or contractual, amounts and fair values of derivative instruments as of the dates indicated:

 

  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

 

Notional or Contractual Amount

  Derivative Assets  

Derivative Liabilities

  

Notional or Contractual Amount

  Derivative Assets  

Derivative Liabilities

 

Derivatives designated as hedges

                        

Interest rate swaps

 $3,983  $199  $—  $4,388  $—  $229 

Derivatives not designated as hedges

                        

Interest rate swaps

  -   -   -   7,890   -   608 

Total derivatives

 $3,983  $199  $—  $12,278  $—  $837 

 

The following table presents the interest component of derivative and hedging activity, if applicable, on the consolidated statements of income for the periods indicated:

 

  

Year Ended December 31,

  

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Income Statement Location

Derivatives designated as hedges

             

Interest rate swaps

 $35  $111  $85 

Interest and fees on loans

Derivatives not designated as hedges

             

Interest rate swaps

  90   217   235 

Interest and fees on loans

Total derivative expense

 $125  $328  $320  

 
v3.22.4
Note 12 - Employee Benefit Plans
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Compensation and Employee Benefit Plans [Text Block]

Note 12. Employee Benefit Plans

 

Defined Benefit Plans

 

The Company maintains two nonqualified domestic, noncontributory defined benefit plans (the “Benefit Plans”) for key members of senior management and non-management directors. The Company’s unfunded Benefit Plans include the Supplemental Executive Retention Plan (“SERP”) and the Directors’ Supplemental Retirement Plan (“Directors’ Plan”). The SERP provides for a defined benefit, at normal retirement age, targeted at 35% of the participant’s projected final average compensation, subject to a defined maximum annual benefit. Benefits under the SERP generally become payable at age 62. The Directors’ Plan provides for a defined benefit, at normal retirement age, up to 100% of the participant’s highest consecutive three-year average compensation. Benefits under the Directors’ Plan generally become payable at age 70. The SERP was frozen near the end of 2021; the Directors' Plan was fundamentally frozen at that time as well.   The following table presents the changes in the aggregate actuarial benefit obligation for the two plans combined during the periods indicated:

 

  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Beginning balance

 $11,458  $12,579 

Effect of curtailment

  —   289 

Service cost

  —   352 

Interest cost

  332   315 

Actuarial gain

  (1,718)  (1,472)

Benefits paid

  (584)  (605)

Ending balance

 $9,488  $11,458 

 

The following table presents the components of net periodic pension cost, the effect on the consolidated statements of income, and the assumed discount rate for the periods indicated:

 

  

Year Ended December 31,

  
  

2022

  

2021

  

2020

 

Income Statement Location

(Amounts in thousands)

             

Service cost

 $—  $352  $310 

Salaries and employee benefits

Interest cost

  332   315   355 

Other expense

Effect of curtailment

  —   289   — 

Salaries and employee benefits

Amortization of prior service cost

  —   124   201 

Other expense

Amortization of losses

  135   264   186 

Other expense

Net periodic cost

 $467  $1,344  $1,052  
              

Assumed discount rate

  4.96%  2.88%  2.53% 

 

The following schedule presents the projected benefit payments to be paid under the Benefit Plans, by year, as of December 31, 2022:

 

(Amounts in thousands)

    

2023

 $697 

2024

  741 

2025

  736 

2026

  836 

2027

  816 

2028 through 2032

  3,496 

 

Deferred Compensation Plan

 

The Company maintains deferred compensation agreements with certain current and former officers that provide benefit payments, over various periods, commencing at retirement or death. There were no accrued benefits, which are based on the present values of expected payments and estimated life expectancies, as of December 31, 2022 or 2021. There was no deferred compensation plan expense in 2022,  2021, or 2020.

 

The Company maintains a deferred compensation plan, referred to as the WRAP, and is a voluntary, non-tax qualified deferred compensation plan available to certain employees, including executive officers. Under the plan, participants may defer a portion of their base and/or annual incentive compensation. The plan is intended to mirror the Corporation's qualified KSOP, and may include discretionary match that coincides with a match made to the KSOP to the extent participants cannot otherwise receive the full match in the KSOP. The balance as of December 31, 2022 and 2021 was $5.14 million  and $5.25 million, respectively.

 

Employee Welfare Plan

 

The Company provides various medical, dental, vision, life, accidental death and dismemberment, and long-term disability insurance benefits to all full-time employees who elect coverage under this program. A third-party administrator manages the health plan. Monthly employer and employee contributions are made to a tax-exempt employee benefits trust where the third-party administrator processes and pays claims. As of December 31, 2022, stop-loss insurance coverage generally limits the Company’s risk of loss to $200 thousand for individual claims and $5.14 million for aggregate claims. Health plan expenses were $4.04 million in  2022, $3.98 million  in 2021, and $4.17 million  in 2020.

 

Employee Stock Ownership and Savings Plan

 

The Company maintains the Employee Stock Ownership and Savings Plan (“KSOP”) that consists of a 401(k) savings feature that covers all employees that meet minimum eligibility requirements. The Company matches employee contributions at levels determined by the Board of Directors annually. These contributions are made in the first quarter following each plan year and employees must be employed on the last day of the plan year to be eligible. Matching contributions to qualified deferrals under the 401(k) savings component of the KSOP totaled $1.82 million in 2022, $1.71 million in 2021, and $1.51 million in 2020. The KSOP held 309,019  shares of the Company’s common stock as of December 31, 2022, 320,164 shares as of December 31, 2021, and 351,222 shares as of December 31, 2020.

 

Equity-Based Compensation Plans

 

The Company maintains equity-based compensation plans to promote the long-term success of the Company by encouraging officers, employees, directors, and other individuals performing services for the Company to focus on critical long-range objectives. The Company’s equity-based compensation plans include the 2012 Omnibus Equity Compensation Plan (“2012 Plan”), 2004 Omnibus Stock Option Plan, 2001 Director’s Option Plan, 1999 Stock Option Plan, and various other plans obtained through acquisitions. As of December 31, 2022, the 2012 Plan was the only plan available for the issuance of future grants. All plans issued or obtained before the 2012 Plan are frozen and no new grants may be issued; however, any options or awards unexercised and outstanding under those plans remain in effect per their respective terms. The 2012 Plan authorized 600,000 shares available for potential grants of incentive stock options, nonqualified stock options, performance awards, restricted stock, restricted stock units, stock appreciation rights, bonus stock, and stock awards. Grants issued under the 2012 Plan state the period of time the grant may be exercised, not to exceed more than ten years from the date granted. The Company’s Compensation and Retirement Committee determines the vesting period for each grant; however, if no vesting period is specified the vesting occurs in 25% increments on the first four anniversaries of the grant date.

 

The following table presents the pre-tax compensation expense and excess tax benefit recognized in earnings for all equity-based compensation plans for the periods indicated:

 

  

Year Ended December 31,

 
  

2022

  

2021

  

2020

 

(Amounts in thousands)

            

Pre-tax compensation expense

 $718  $1,282  $1,643 

Excess tax (benefit) expense

  —   (633)  202 

 

Stock Options

 

The following table presents stock option activity and related information for the year ended December 31, 2022:

 

(Amounts in thousands, except share and per share data)

 

Option Shares

  

Weighted Average Exercise Price Per Share

  

Weighted Average Remaining Contractual Term (Years)

  

Aggregate Intrinsic Value

 
                 

Outstanding, January 1, 2022

  204,878  $29.35         

Granted

  —   —         

Exercised

  (7,575)  22.63         

Canceled/Expired

  —   —         

Outstanding, December 31, 2022

  197,303  $29.61   6.69  $847 

Exercisable, December 31, 2022

  109,833  $26.90   5.48  $769 

 

There were no options granted in 2022.  There were 7,575 options exercised in 2022  and 39,995 were exercised in 2021.  The intrinsic value of options exercised was $83 thousand in 2022, and $628 thousand   in 2021. As of December 31, 2022, unrecognized compensation cost related to nonvested stock options totaled $427 thousand with an expected weighted average recognition period of  1.25 years.  The actual compensation cost recognized might differ from this estimate due to various items, including new grants and changes in estimated forfeitures.

 

Restricted Stock Awards

 

The following table presents restricted stock activity and related information for the year ended December 31, 2022:

 

  

Shares/Units

  

Weighted Average Grant-Date Fair Value

 
         

Nonvested, January 1, 2022

  45,656  $24.03 

Granted

  55,839   27.97 

Vested

  (27,414)  25.79 

Canceled

  (476)  22.89 

Nonvested, December 31, 2022

  73,605  $30.87 

 

As of December 31, 2022, unrecognized compensation cost related to nonvested restricted stock/unit awards totaled $1.41 million with an expected weighted average recognition period of  2.01 years. The actual compensation cost recognized might differ from this estimate due to various items, including new awards granted and changes in estimated forfeitures.

 
v3.22.4
Note 13 - Other Operating Income and Expense
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Other Income and Other Expense Disclosure [Text Block]

Note 13. Other Operating Income and Expense

 

The following table presents the components of other operating income and expense for the periods indicated:

 

  

Year Ended December 31,

 

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Other operating income

            

Bank owned life insurance

 $961  $1,183  $814 

Net FDIC indemnification asset amortization

  -   (1,226) $(1,690)

Other(1)

  4,187   4,623   3,555 

Total other operating income

 $5,148  $4,580  $2,679 
             

Other operating expense

            

OREO expense and net loss

  557   330   414 

Telephone and data communications

  1,658   1,720   2,188 

Office supplies

  494   553   660 

Other(1)

  7,766   9,134   9,148 

Total other operating expense

 $10,475  $11,737  $12,410 

 

(1)

Components of other operating income or expense that do not exceed 1% of total income

 
v3.22.4
Note 14 - Income Taxes
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 14. Income Taxes 

 

Income tax expense is comprised of current and deferred, federal and state income taxes on the Company’s pre-tax earnings. The following table presents the components of the income tax provision for the periods indicated:

 

  

Year Ended December 31,

 

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Current tax expense:

            

Federal

 $9,883  $8,546  $10,048 

State

  1,648   1,563   1,643 

Total current tax expense

  11,531   10,109   11,691 
             

Deferred tax expense (benefit):

            

Federal

  1,800   4,677   (1,266)

State

  164   574   (239)

Total deferred tax expense (benefit)

  1,964   5,251   (1,505)

Total income tax expense

 $13,495  $15,360  $10,186 

 

The Company’s effective tax rate, income tax as a percent of pre-tax income, may vary significantly from the statutory rate due to permanent differences and available tax credits. Permanent differences are income and expense items excluded by law in the calculation of taxable income. The Company’s most significant permanent differences generally include interest income on municipal securities and increases in the cash surrender value of life insurance policies. The following table reconciles the Company’s income tax expense to the amount computed by applying the federal statutory tax rate to pre-tax income for the periods indicated:

 

  

Year Ended December 31,

 
  

2022

  

2021

  

2020

 
  

Amount

  

Percent

  

Amount

  

Percent

  

Amount

  

Percent

 

(Amounts in thousands)

                        

Federal income tax at the statutory rate

 $12,633   21.00% $13,971   21.00% $9,683   21.00%

State income tax, net of federal benefit

  1,432   2.38%  2,076   3.12%  1,109   3.12%
   14,065   23.38%  16,047   24.12%  10,792   24.12%

Increase (decrease) resulting from:

                        

Tax-exempt interest income

  (347)  (0.58)%  (340)  (0.51)%  (500)  (1.08)%

Excess tax benefits

  (24)  (0.04)%  (133)  (0.20)%  42   0.09%

Bank owned life insurance

  (68)  (0.11)%  (225)  (0.34)%  (139)  (0.30)%

Other items, net

  (131)  (0.22)%  11   0.02%  (9)  (0.74)%

Income tax at the effective tax rate

 $13,495   22.43% $15,360   23.09% $10,186   22.09%

 

Deferred taxes derived from continuing operations reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for tax purposes. The following table presents the significant components of the net deferred tax asset as of the dates indicated:

 

  

December 31,

 

(Amounts in thousands)

 

2022

  

2021

 

Deferred tax assets

        

Allowance for loan losses

 $7,283  $6,647 

Unrealized losses on available-for-sale securities

  4,153   — 

Unrealized asset losses

  503   482 

Purchase accounting

  148   455 

FDIC assisted transactions

  588   810 

Deferred loan fees

  2,074   2,350 

Deferred compensation assets

  5,035   5,634 

Federal net operating loss carryforward

  1,223   2,179 

Lease liability

  160   184 

Other

  707   472 

Total deferred tax assets

  21,874   19,213 
         

Deferred tax liabilities

        

Fixed assets

  (755)  (1,046)

Intangible assets

  (857)  (318)

Odd days interest deferral

  (4,010)  (3,324)

Unrealized gains on available for sale securities

  —   (4)

Right of use asset

  (155)  (177)

Other

  (197)  (192)

Total deferred tax liabilities

  (5,974)  (5,061)

Net deferred tax asset

 $15,900  $14,152 

 

The Company had no unrecognized tax benefits or accrued interest or penalties as of December 31, 2022 or 2021. The Company had no deferred tax valuation allowance recorded as of December 31, 2022 or 2021, as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. The Company and its subsidiaries are subject to U.S. federal income tax of the various states.  The Company is no longer subject to examination by federal or state taxing authorities for years before 2019.

 
v3.22.4
Note 15 - Accumulated Other Comprehensive Income
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Comprehensive Income (Loss) Note [Text Block]

Note 15. Accumulated Other Comprehensive Income

 

The following table presents the changes in AOCI, net of tax and by component, during the periods indicated:

 

  

Unrealized Gains (Losses) on Available for-Sale Securities

  Employee Benefit Plans  

Total

 

(Amounts in thousands)

            

Balance January 1, 2020

 $866  $(2,372) $(1,506)

Other comprehensive (loss) income before reclassifications

  544   (961)  (417)

Reclassified from AOCI

  (304)  304   — 

Other comprehensive (loss) income, net

  240   (657)  (417)

Balance December 31, 2020

 $1,106  $(3,029) $(1,923)
             

Balance January 1, 2021

 $1,106  $(3,029) $(1,923)

Other comprehensive income (loss) before reclassifications

  (1,091)  1,160   69 

Reclassified from AOCI

  —   308   308 

Other comprehensive income (loss), net

  (1,091)  1,468   377 

Balance December 31, 2021

 $15  $(1,561) $(1,546)
             

Balance January 1, 2022

 $15  $(1,561) $(1,546)

Other comprehensive (loss) income before reclassifications

  (15,636)  1,357   (14,279)

Reclassified from AOCI

  —   106   106 

Other comprehensive (loss) income, net

  (15,636)  1,463   (14,173)

Balance December 31, 2022

 $(15,621) $(98) $(15,719)

 

The following table presents reclassifications out of AOCI, by component, during the periods indicated:

 

  

Year Ended December 31,

 

Income Statement

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Line Item Affected

Available-for-sale securities

             

(Losses) gains recognized

 $—  $—  $(385)

Net loss on sale of securities

Reclassified out of AOCI, before tax

  —   —   (385)

Income before income taxes

Income tax benefit

  —   —   81 

Income tax expense

Reclassified out of AOCI, net of tax

  —   —   (304)

Net income

Employee benefit plans

             

Amortization of prior service cost

  —   124   201 

Other operating expense

Amortization of net actuarial loss

  135   264   185 

Other operating expense

Reclassified out of AOCI, before tax

  135   388   386 

Income before income taxes

Income tax expense

  (29)  (80)  (82)

Income tax expense

Reclassified out of AOCI, net of tax

  106   308   304 

Net income

Total reclassified out of AOCI, net of tax

 $106  $308  $— 

Net income

 
v3.22.4
Note 16 - Fair Value
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

Note 16. Fair Value 

 

Financial Instruments Measured at Fair Value

 

The following discussion describes the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments under the valuation hierarchy.

 

Assets and Liabilities Reported at Fair Value on a Recurring Basis

 

Available-for-Sale Debt Securities. Debt securities available for sale are reported at fair value on a recurring basis. The fair value of Level 1 securities is based on quoted market prices in active markets, if available. If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are primarily derived from or corroborated by observable market data. Level 2 securities use fair value measurements from independent pricing services obtained by the Company. These fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and bond terms and conditions. The Company’s Level 2 securities include U.S. Agency and Treasury securities, municipal securities, and mortgage-backed securities. Securities are based on Level 3 inputs when there is limited activity or less transparency to the valuation inputs. In the absence of observable or corroborated market data, internally developed estimates that incorporate market-based assumptions are used when such information is available.

 

Fair value models may be required when trading activity has declined significantly or does not exist, prices are not current, or pricing variations are significant. For Level 3 securities, the Company obtains the cash flow of specific securities from third parties that use modeling software to determine cash flows based on market participant data and knowledge of the structures of each individual security. The fair values of Level 3 securities are determined by applying proper market observable discount rates to the cash flow derived from third-party models. Discount rates are developed by determining credit spreads above a benchmark rate, such as LIBOR, and adding premiums for illiquidity, which are based on a comparison of initial issuance spread to LIBOR versus a financial sector curve for recently issued debt to LIBOR. Securities with increased uncertainty about the receipt of cash flows are discounted at higher rates due to the addition of a deal specific credit premium based on assumptions about the performance of the underlying collateral. Finally, internal fair value model pricing and external pricing observations are combined by assigning weights to each pricing observation. Pricing is reviewed for reasonableness based on the direction of specific markets and the general economic indicators.

 

Equity Securities. Equity securities are recorded at fair value on a recurring basis and included in other assets in the consolidated balance sheets. The Company uses Level 1 inputs to value equity securities that are traded in active markets. Equity securities that are not actively traded are classified in Level 2.

 

Loans Held for Investment. Loans held for investment are reported at fair value using the exit price notion, which is derived from third-party models. Loans related to fair value hedges are recorded at fair value on a recurring basis.

 

Deferred Compensation Assets and Liabilities. Securities held for trading purposes are recorded at fair value on a recurring basis and included in other assets in the consolidated balance sheets. These securities include assets related to employee deferred compensation plans, which are generally invested in Level 1 equity securities. The liability associated with these deferred compensation plans is carried at the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets.

 

Derivative Assets and Liabilities. Derivatives are recorded at fair value on a recurring basis. The Company obtains dealer quotes, Level 2 inputs, based on observable data to value derivatives.

 

The following tables summarize financial assets and liabilities recorded at fair value on a recurring basis, by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:

 

  

December 31, 2022

 
  

Total

  

Fair Value Measurements Using

 

(Amounts in thousands)

 

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Available-for-sale debt securities

                

U.S. Agency securities

 $1,485  $—  $1,485  $— 

U.S. Treasury securities

  157,264   —   157,264   — 

Municipal securities

  23,309   —   23,309   — 

Corporate Notes

  34,857   —   34,857   — 

Mortgage-backed Agency securities

  83,434   —   83,434   — 

Total available-for-sale debt securities

  300,349   —   300,349   — 

Equity securities

  55   —   55   — 

Fair value loans

  3,784   —   —   3,784 

Derivative assets

  199   —   199   — 

Deferred compensation assets

  5,142   5,142   —   — 

Deferred compensation liabilities

  5,142   5,142   —   — 

 

 

  

December 31, 2021

 
  

Total

  

Fair Value Measurements Using

 

(Amounts in thousands)

 

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Available-for-sale debt securities

                

U.S. Agency securities

 $466  $—  $466  $— 

Municipal securities

  28,794   —   28,794   — 

Corporate Notes

  9,919   —   9,919   — 

Mortgage-backed Agency securities

  37,113   —   37,113   — 

Total available-for-sale debt securities

  76,292   —   76,292   — 

Equity securities

  55   —   55   — 

Fair value loans

  13,106   —   —   13,106 

Deferred compensation assets

  5,245   5,245   —   — 

Deferred compensation liabilities

  5,245   5,245   —   — 

Derivative liabilities

  837   —   837   — 

 

Changes in Level 3 Fair Value Measurements

 

The following table presents the changes in Level 3 assets recorded at fair value on a recurring basis during the period indicated:

 

  

Assets

 

(Amounts in thousands)

    

Balance January 1, 2021

 $17,831 

Changes in fair value

  (303)

Changes due to principal reduction

  (4,422)

Balance December 31, 2021

 $13,106 
     

Balance January 1, 2022

 $13,106 

Change due to termination of interest rate swaps not qualifying as fair value hedges

  (8,489)

Changes in fair value

  (428)

Changes due to principal reduction

  (405)

Balance December 31, 2022

 $3,784 

 

 No transfers into or out of Level 3 of the fair value hierarchy occurred during the year ended December 31, 2022 or 2021.

 

Assets Measured at Fair Value on a Nonrecurring Basis

 

The Company maintains an active and robust problem credit identification system. The review includes obtaining third-party collateral valuations to help management identify potential credit impairment and determine the amount of impairment to record. The Company’s Special Assets staff manages and monitors all impaired loans. Internal collateral valuations are generally performed within two to four weeks of identifying the initial potential impairment. The internal valuation compares the original appraisal to current local real estate market conditions and considers experience and expected liquidation costs. The Company typically receives a third-party valuation within thirty to forty-five days of completing the internal valuation. When a third-party valuation is received, it is reviewed for reasonableness. Once the valuation is reviewed and accepted, discounts are applied to fair market value, based on, but not limited to, our historical liquidation experience for like collateral, resulting in an estimated net realizable value. The estimated net realizable value is compared to the outstanding loan balance to determine the appropriate amount of specific impairment reserve.

 

OREO. OREO is recorded at fair value on a nonrecurring basis using Level 3 inputs. The Company calculates the fair value of OREO from current or prior appraisals that have been adjusted for valuation declines, estimated selling costs, and other proprietary qualitative adjustments that are deemed necessary.

 

The following tables present assets measured at fair value on a nonrecurring basis, by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:

 

  

December 31, 2022

 
  

Total

  

Fair Value Measurements Using

 
  

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

(Amounts in thousands)

                

Collateral dependent assets with specific reserves

 $574  $—  $—  $574 

OREO

  703   —   —   703 

 

  

December 31, 2021

 
  

Total

  

Fair Value Measurements Using

 
  

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

(Amounts in thousands)

                

Collateral dependent assets with specific reserves

 $2,312  $—  $—  $2,312 

OREO

  1,015   —   —   1,015 

 

Quantitative Information about Level 3 Fair Value Measurements

 

The following table provides quantitative information for assets measured at fair value on a nonrecurring basis using Level 3 valuation inputs as of the dates indicated:

 

   

Discount Range

 
 

Valuation

Unobservable

(Weighted Average)

 
 

Technique

Input

December 31, 2022

 
       

Collateral dependent assets with specific reserves

Discounted appraisals(1)

Appraisal adjustments(2)

 

3% to 3%

3%

OREO

Discounted appraisals(1)

Appraisal adjustments(2)

 

20% to 100%

69%

 

(1)

Fair value is generally based on appraisals of the underlying collateral.

(2)

Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments.

 

   

Discount Range

 
 

Valuation

Unobservable

(Weighted Average)

 
 

Technique

Input

December 31, 2021

 
       

Collateral dependent assets with specific reserves

Discounted appraisals(1)

Appraisal adjustments(2)

 0% to 11%6%

OREO

Discounted appraisals(1)

Appraisal adjustments(2)

 0% to 87%32%

 

(1)

Fair value is generally based on appraisals of the underlying collateral.

(2)

Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments.

 

The following tables present the carrying amounts and fair values of financial instruments, by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:

 

  

December 31, 2022

 
  

Carrying

      

Fair Value Measurements Using

 

(Amounts in thousands)

 

Amount

  

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Assets

                    

Cash and cash equivalents

 $170,846  $170,846  $170,846  $—  $— 

Debt securities available for sale

  300,349   300,349   —   300,349   — 

Equity securities

  55   55   —   55   — 

Loans held for investment, net of allowance

  2,369,641   2,215,243   —   —   2,215,243 

Interest receivable

  9,279   9,279   —   9,279   — 

Deferred compensation assets

  5,142   5,142   5,142   —   — 

Derivative assets

  199   199   —   199   — 
                     

Liabilities

                    

Time deposits

  283,330   281,744   —   281,744   — 

Securities sold under agreements to repurchase

  1,874   1,874   —   1,874   — 

Interest payable

  159   159   —   159   — 

Deferred compensation liabilities

  5,142   5,142   5,142   —   — 

 

  

December 31, 2021

 
  

Carrying

      

Fair Value Measurements Using

 

(Amounts in thousands)

 

Amount

  

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Assets

                    

Cash and cash equivalents

 $677,439  $677,439  $677,439  $—  $— 

Debt securities available for sale

  76,292   76,292   —   76,292   — 

Equity securities

  55   55   —   55   — 

Loans held for investment, net of allowance

  2,137,711   2,108,513   —   —   2,108,513 

Interest receivable

  7,900   7,900   —   7,900   — 

Deferred compensation assets

  5,245   5,245   5,245   —   — 
                     

Liabilities

                    

Time deposits

  354,863   352,000   —   352,000   — 

Securities sold under agreements to repurchase

  1,536   1,536   —   1,536   — 

Interest payable

  314   314   —   314   — 

Deferred compensation liabilities

  5,245   5,245   5,245   —   — 

Derivative liabilities

  837   837   —   837   — 

 
v3.22.4
Note 17 - Earnings Per Share
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Earnings Per Share [Text Block]

Note 17. Earnings per Share

 

The following table presents the calculation of basic and diluted earnings per common share for the periods indicated:

 

   

Year Ended December 31,

  
   

2022

    

2021

    

2020

  

(Amounts in thousands, except share and per share data)

                        

Net income

   $ 46,662     $ 51,168     $ 35,926  
                         

Weighted average common shares outstanding, basic

     16,519,848       17,335,615       17,781,748  

Dilutive effect of potential common shares

                        

Stock options

     18,784       30,854       22,495  

Restricted stock

     23,625       36,467       11,137  

Total dilutive effect of potential common shares

     42,409       67,321       33,632  

Weighted average common shares outstanding, diluted

     16,562,257       17,402,936       17,815,380  
                         

Basic earnings per common share

   $ 2.82     $ 2.95     $ 2.02  

Diluted earnings per common share

     2.82       2.94       2.02  
                         

Potential antidilutive common shares

                        

Stock options

     131,198       103,520       58,166  

Restricted stock

     —       630       26,900  

Total potential antidilutive shares

     131,198       104,150       85,066  

 
v3.22.4
Note 18 - Related Party Transactions
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

Note 18. Related Party Transactions

 

The Company engages in transactions with related parties in the normal course of business. Related parties include directors, executive officers, and principal shareholders and their immediate family members, business interests, and affiliates. All related party transactions are made on terms that are substantially the same as those prevailing at the time for similar transactions with unrelated parties, including interest rates and collateral. The following table presents the changes in loans with related parties during the periods indicated:

 

  

Year Ended December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Beginning balance

 $33,740  $20,166 

New loans and advances

  7,768   4,476 

Loan repayments

  (15,979)  (4,139)

Reclassifications(1)

  5,452   13,237 

Ending balance

 $30,981  $33,740 

 

(1)

Changes related to the composition of the Company's directors, executive officers, and related insiders

 

Deposits from related parties totaled $14.59 million  as of December 31, 2022, and $11.92 million  as of December 31, 2021. Legal fees paid to related parties totaled $41 thousand in 2022, $80 thousand in 2021, and $70 thousand  in 2020. There were no lease payments paid to related parties in 2022, 2021, or 2020. Other expense paid to related parties totaled $53 thousand in 2022, $104 thousand in 2021, and $68 thousand in 2020.

 
v3.22.4
Note 19 - Litigation, Commitments, and Contingencies
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

Note 19. Litigation, Commitments, and Contingencies

 

Litigation

 

In the normal course of business, the Company is a defendant in various legal actions and asserted claims. While the Company and its legal counsel are unable to assess the ultimate outcome of each of these matters with certainty, the Company believes the resolution of these actions, singly or in the aggregate, should not have a material adverse effect on its financial condition, results of operations, or cash flows.

 

Commitments and Contingencies

 

The Company is a party to financial instruments with off balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit, and financial guarantees. These instruments involve, to varying degrees, elements of credit and interest rate risk beyond the amount recognized in the consolidated balance sheets. The contractual amounts of these instruments reflect the extent of involvement the Company has in particular classes of financial instruments. If the other party to a financial instrument does not perform, the Company’s credit loss exposure is the same as the contractual amount of the instrument. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments.

 

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments are expected to expire without being drawn on, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of each customer on a case-by-case basis. Collateral may include accounts receivable, inventory, property, plant and equipment, and income producing commercial properties. The Company maintains a reserve for the risk inherent in unfunded lending commitments, which is included in other liabilities in the consolidated balance sheets.

 

Standby letters of credit and financial guarantees are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending credit to customers. The amount of collateral obtained, if deemed necessary, to secure the customer’s performance under certain letters of credit is based on management’s credit evaluation of the customer.

 

The following table presents the off-balance sheet financial instruments as of the dates indicated:

 

  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Commitments to extend credit

 $278,926  $272,447 

Standby letters of credit and financial guarantees(1)

  119,681   153,717 

Total off-balance sheet risk

  398,607   426,164 
         
         

 

(1)

Includes FHLB letters of credit
v3.22.4
Note 20 - Regulatory Requirements and Restrictions
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 20. Regulatory Requirements and Restrictions 

 

The Company and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, which applies only to the Bank, the Bank must meet specific capital guidelines that involve quantitative measures of the entity’s balance sheet assets and off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In addition, the Company and the Bank are subject to various regulatory restrictions related to the payment of dividends, including requirements to maintain capital at or above regulatory minimums.

 

The current risk-based capital requirements, based on the international capital standards known as Basel III, requires the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital, and total capital to risk-weighted assets, and of Tier 1 capital to average consolidated assets (“Tier 1 leverage ratio”), as defined in the regulations.  Basel III’s capital conservation buffer (“CCB”), which is intended to absorb losses during periods of economic stress, increased those minimum ratios by 2.5% on January 1, 2019).

 

The following tables present actual and required capital ratios, under Basel III capital rules, as of the dates indicated:

 

  

December 31, 2022

 
  

Actual

  Minimum Basel III Requirement  Minimum Basel III Requirement - with CCB  Well Capitalized Requirement(1) 

(Amounts in thousands)

 

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

The Company

                                

Common equity Tier 1 ratio

 $303,963   13.37% $102,332   4.50% $159,183   7.00%  N/A   N/A 

Tier 1 risk-based capital ratio

  303,963   13.37%  136,443   6.00%  193,294   8.50%  N/A   N/A 

Total risk-based capital ratio

  332,430   14.62%  181,924   8.00%  238,775   10.50%  N/A   N/A 

Tier 1 Leverage ratio

  303,963   10.17%  119,499   4.00%  N/A   N/A   N/A   N/A 
                                 

The Bank

                                

Common equity Tier 1 ratio

 $264,185   11.69% $101,712   4.50% $158,218   7.00% $146,917   6.50%

Tier 1 risk-based capital ratio

  264,185   11.69%  135,616   6.00%  192,122   8.50%  180,821   8.00%

Total risk-based capital ratio

  292,481   12.94%  180,821   8.00%  237,327   10.50%  226,026   10.00%

Tier 1 Leverage ratio

  264,185   8.79%  120,248   4.00%  N/A   N/A   150,310   5.00%

 

(1)

Based on prompt corrective action provisions

 

  

December 31, 2021

 
  

Actual

  Minimum Basel III Requirement  Minimum Basel III Requirement - with CCB  Well Capitalized Requirement(1) 

(Amounts in thousands)

 

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

The Company

                                

Common equity Tier 1 ratio

 $294,207   14.39% $91,983   4.50% $143,084   7.00%  N/A   N/A 

Tier 1 risk-based capital ratio

  294,207   14.39%  122,644   6.00%  173,745   8.50%  N/A   N/A 

Total risk-based capital ratio

  319,795   15.65%  163,525   8.00%  214,626   10.50%  N/A   N/A 

Tier 1 Leverage ratio

  294,207   9.65%  121,892   4.00%  N/A   N/A   N/A   N/A 
                                 

The Bank

                                

Common equity Tier 1 ratio

 $271,806   13.37% $91,499   4.50% $142,332   7.00% $132,166   6.50%

Tier 1 risk-based capital ratio

  271,806   13.37%  121,999   6.00%  172,832   8.50%  162,666   8.00%

Total risk-based capital ratio

  297,261   14.62%  162,666   8.00%  213,499   10.50%  203,332   10.00%

Tier 1 Leverage ratio

  271,806   8.94%  121,623   4.00%  N/A   N/A   152,028   5.00%

 

(1)

Based on prompt corrective action provisions

 
v3.22.4
Note 21 - Parent Company Financial Information
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Note 21. Parent Company Financial Information 

 

The following tables present condensed financial information for the parent company, First Community Bankshares, Inc., as of and for the dates indicated:

 

  

CONDENSED BALANCE SHEETS

 
  

December 31,

 

(Amounts in thousands)

 

2022

  

2021

 

Assets

        

Cash and due from banks

 $16,988  $7,728 

Securities available for sale

  17,313   9,919 

Investment in subsidiaries

  382,286   405,374 

Other assets

  5,910   5,522 

Total assets

 $422,497  $428,543 
         

Liabilities

        

Other liabilities

 $512  $768 

Total liabilities

  512   768 
         

Stockholders' equity

        

Common stock

  16,225   16,878 

Additional paid-in capital

  128,508   147,619 

Retained earnings

  292,971   264,824 

Accumulated other comprehensive loss

  (15,719)  (1,546)

Total stockholders' equity

  421,985   427,775 

Total liabilities and stockholders' equity

 $422,497  $428,543 

 

  

CONDENSED STATEMENTS OF INCOME

 
  

Year Ended December 31,

 
  

2022

  

2021

  

2020

 

(Amounts in thousands)

            

Cash dividends received from subsidiary bank

 $56,250  $53,200  $23,710 

Other income

  222   8   3 

Other operating expense

  1,052   1,086   1,446 

Income before income taxes and equity in undistributed net income of subsidiaries

  55,420   52,122   22,267 

Income tax benefit

  (224)  (351)  (375)

Income before equity in undistributed net income of subsidiaries

  55,644   52,473   22,642 

Equity in (dividends in excess) of undistributed net income of subsidiaries

  (8,982)  (1,305)  13,284 

Net income

 $46,662  $51,168  $35,926 

 

 

  

CONDENSED STATEMENTS OF CASH FLOWS

 
  

Year Ended December 31,

 

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Operating activities

            

Net income

 $46,662  $51,168  $35,926 

Adjustments to reconcile net income to net cash provided by operating activities

            

Net change in other operating activities

  8,442   253   1,047 

Net cash provided by operating activities

  55,104   51,421   36,973 

Investing activities

            

Purchase of investment securities

  (19,372)  —   — 

Proceeds from maturities, calls, sales of investment securities

  11,807   (9,919)  — 

Dividends in excess of undistributed net income of subsidiaries

  —   1,305   (13,284)

Net cash provided by investing activities

  (7,565)  (8,614)  (13,284)

Financing activities

            

Proceeds from issuance of common stock

  172   —   — 

Payments for repurchase of common stock

  (21,311)  (28,882)  (21,872)

Payments of common dividends

  (18,515)  (18,059)  (17,876)

Net change in other financing activities

  1,375   1,773   2,150 
   (38,279)  (45,168)  (37,598)

Cash and cash equivalents increase (decrease)

  9,260   (2,361)  (13,909)

Cash and cash equivalents at carrying value at beginning of period

  7,728   10,089   23,998 

Cash and cash equivalents at carrying value at end of period

 $16,988  $7,728  $10,089 

 
v3.22.4
Note 23 - Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Quarterly Financial Information [Text Block]

Note 22. Quarterly Financial Data (Unaudited)

 

The following tables present selected financial data for the periods indicated:

 

  

Year Ended December 31, 2022

 
  

First

  

Second

  

Third

  

Fourth

 
  

Quarter

  

Quarter

  

Quarter

  

Quarter

 

(Amounts in thousands, except share and per share data)

                

Interest income

 $25,639  $27,970  $29,722  $30,988 

Interest expense

  486   423   380   367 

Net interest income

  25,153   27,547   29,342   30,621 

Provision for credit losses

  1,961   510   685   3,416 

Net interest income after provision

  23,192   27,037   28,657   27,205 

Noninterest income, excluding net loss on sale of securities

  9,194   8,854   9,950   9,184 

Noninterest expense

  19,986   21,255   21,145   20,730 

Income before income taxes

  12,400   14,636   17,462   15,659 

Income tax expense

  2,885   3,423   4,111   3,076 

Net income

 $9,515  $11,213  $13,351  $12,583 
                 

Basic earnings per common share

 $0.57  $0.67  $0.82  $0.78 

Diluted earnings per common share

  0.56   0.67   0.81   0.77 

Dividends per common share

  0.27   0.27   0.29   0.29 
                 

Weighted average basic shares outstanding

  16,817,284   16,662,817   16,378,022   16,229,289 

Weighted average diluted shares outstanding

  16,864,515   16,682,615   16,413,202   16,281,922 

 

 

  

Year Ended December 31, 2021

 
  

First

  

Second

  

Third

  

Fourth

 
  

Quarter

  

Quarter

  

Quarter

  

Quarter

 

(Amounts in thousands, except share and per share data)

                

Interest income

 $27,151  $26,538  $25,789  $25,832 

Interest expense

  869   724   643   600 

Net interest income

  26,282   25,814   25,146   25,232 

Recovery of credit losses

  (4,001)  (2,230)  (1,394)  (846)

Net interest income after provision

  30,283   28,044   26,540   26,078 

Noninterest income, excluding net loss on sale of securities

  7,569   8,797   8,720   9,215 

Noninterest expense

  18,820   19,361   18,836   21,701 

Income before income taxes

  19,032   17,480   16,424   13,592 

Income tax expense

  4,430   4,077   3,816   3,037 

Net income

 $14,602  $13,403  $12,608  $10,555 
                 

Basic earnings per common share

 $0.83  $0.77  $0.73  $0.62 

Diluted earnings per common share

  0.82   0.76   0.73   0.62 

Dividends per common share

  0.25   0.25   0.27   0.27 
                 

Weighted average basic shares outstanding

  17,669,937   17,486,182   17,221,244   16,974,005 

Weighted average diluted shares outstanding

  17,729,185   17,536,144   17,279,576   17,038,980 

 
v3.22.4
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

 

First Community Bankshares, Inc. (the “Company”) is a financial holding company incorporated under the laws of the Commonwealth of Virginia. The Company’s principal executive office is located in Bluefield, Virginia. The Company provides banking products and services to individual and commercial customers through its wholly owned subsidiary First Community Bank (the “Bank”), a Virginia-chartered banking institution founded in 1874. The Bank offers wealth management and investment advice through its Trust Division and wholly owned subsidiary First Community Wealth Management (“FCWM”). Unless the context suggests otherwise, the terms “First Community,” “Company,” “we,” “our,” and “us” refer to First Community Bankshares, Inc. and its subsidiaries as a consolidated entity.

 
Consolidation, Policy [Policy Text Block]

Principles of Consolidation

 

The Company’s accounting and reporting policies conform with U.S. generally accepted accounting principles (“GAAP”) and prevailing practices in the banking industry. The consolidated financial statements include all accounts of the Company and its wholly owned subsidiaries and eliminate all intercompany balances and transactions. The Company operates in one business segment, Community Banking, which consists of all operations, including commercial and consumer banking, lending activities, and wealth management.

 

The Company maintains investments in variable interest entities (“VIEs”). VIEs are legal entities in which equity investors do not have sufficient equity at risk for the entity to independently finance its activities, or as a group, the holders of the equity investment at risk lack the power through voting or similar rights to direct the activities of the entity that most significantly impact its economic performance, or do not have the obligation to absorb the expected losses of the entity or the right to receive expected residual returns of the entity. Consolidation of a VIE is required if a reporting entity is the primary beneficiary of the VIE. The Company periodically reviews its VIEs and has determined that it is not the primary beneficiary of any VIE; therefore, the assets and liabilities of these entities are not consolidated into the financial statements.

 
Reclassification, Comparability Adjustment [Policy Text Block]

Reclassification

 

Certain amounts reported in prior years have been reclassified to conform to the current year’s presentation. These reclassifications had no effect on the Company’s results of operations, financial position, or net cash flow.

 
Use of Estimates, Policy [Policy Text Block]

Use of Estimates

 

Preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that require the most subjective or complex judgments relate to fair value measurements, the allowance for loan losses and goodwill and other intangible asset. For additional information, see “Critical Accounting Policies” in Part II, Item 7 of this report.

 
Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, able to transact, and willing to transact.

 

The fair value hierarchy ranks the inputs used in measuring fair value as follows:

 

 

●

Level 1 – Observable, unadjusted quoted prices in active markets

 

●

Level 2 – Inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability

 

●

Level 3 – Unobservable inputs with little or no market activity that require the Company to use reasonable inputs and assumptions

 

The Company uses fair value measurements to record adjustments to certain financial assets and liabilities on a recurring basis. The Company may be required to record certain assets at fair value on a nonrecurring basis in specific circumstances, such as evidence of impairment. Methodologies used to determine fair value might be highly subjective and judgmental in nature; therefore, valuations may not be precise. If the Company determines that a valuation technique change is necessary, the change is assumed to have occurred at the end of the respective reporting period.

 
Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

 

Cash and cash equivalents include cash and due from banks, federal funds sold, and interest-bearing balances on deposit with the Federal Home Loan Bank (“FHLB”), the Federal Reserve Bank (“FRB”), and correspondent banks that are available for immediate withdrawal.

 
Marketable Securities, Policy [Policy Text Block]

Investment Securities

 

Management classifies debt securities as held-to-maturity or available-for-sale based on the intent and ability to hold the securities to maturity. Debt securities that the Company has the intent and ability to hold to maturity are classified as held-to-maturity securities and carried at amortized cost. Debt securities not classified as held to maturity are classified as available-for-sale securities and carried at estimated fair value. Available-for-sale securities consist of securities the Company intends to hold for indefinite periods of time including securities to be used as part of the Company’s asset/liability management strategy and securities that may be sold for a variety of reasons. Unrealized gains and losses on available-for-sale securities are included in accumulated other comprehensive income (“AOCI”), net of income taxes, in stockholders’ equity. Gains or losses on calls, maturities, or sales of investment securities are recorded based on the specific identification method and included in noninterest income. Premiums are amortized to first call date and discounts are accreted over the life of a security into interest income.

 

Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the security.  The credit loss component would be recognized through the provision for credit losses and the creation of an allowance for credit losses. Consideration is given to (1) the financial condition and near-term prospects of the issuer including looking at default and delinquency rates, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) our intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that we will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third party guarantees, and (8) collateral values. The Company evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value.  The nature of the collateral is considered along with potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors.  Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security.  The credit loss component would be recognized through the provision for credit losses in the Statement of Income and establish an allowance for credit losses on the Balance Sheet.

 
The Company excludes the accrued interest receivable from the amortized cost basis in measuring expected credit losses on the investment securities.  Nor does the Company record an allowance for credit losses on accrued interest receivable.  As of   December 31, 2022, the accrued interest receivable for investment securities available for sale was $ 1.34  million.

 
Other Investments [Policy Text Block]

Other Investments

 

As a condition of membership in the FHLB and the FRB, the Company is required to hold a minimum level of stock in the FHLB of Atlanta and the FRB of Richmond. These securities are carried at cost and periodically reviewed for impairment. The total investment in FHLB and FRB stock, which is included in other assets, was $10.02 million as of  December 31, 2022, and $9.78 million as of  December 31, 2021.

 

The Company owns certain long-term equity investments without readily determinable fair values, including certain tax credit limited partnerships and various limited liability companies that manage real estate investments, facilitate tax credits, and provide title insurance and other related financial services. These investments are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. The total carrying value in these investments, which is included other assets, totaled $3.78 million as of December 31, 2022, and $3.85 million as of December 31, 2021.

 
Business Combinations Policy [Policy Text Block]

Business Combinations

 

The Company accounts for business combinations using the acquisition method of accounting as outlined in using Topic 805 of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. Any excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. In instances where the price of the acquired business is less than the net assets acquired, a gain on the purchase is recorded. Fair values are assigned based on quoted prices for similar assets, if readily available, or appraisals by qualified independent parties for relevant asset and liability categories. Certain financial assets and liabilities are valued using discount models that apply current discount rates to streams of cash flow. Valuation methods require assumptions, which can result in alternate valuations, varying levels of goodwill or bargain purchase gains, or amortization expense or accretion income. Management must make estimates for the useful or economic lives of certain acquired assets and liabilities that are used to establish the amortization or accretion of some intangible assets and liabilities, such as core deposits. Fair values are subject to refinement for up to one year after the closing date of the acquisition as additional information about the closing date fair values becomes available. Acquisition and divestiture activities are included in the Company’s consolidated results of operations from the closing date of the transaction. Acquisition and divestiture related costs are recognized in noninterest expense as incurred. For additional information, see “Purchased Deteriorated Loans” and “Intangible Assets” below.

 
Financing Receivable, Held-for-investment [Policy Text Block]

Loans Held for Investment

 

Loans classified as held for investment are originated with the intent to hold indefinitely, until maturity, or until pay-off. Loans held for investment are carried at the principal amount outstanding, net of unearned income and any necessary write-downs to reduce individual loans to net realizable value. Interest income on performing loans is recognized as interest income at the contractual rate of interest. Loan origination fees, including loan commitment and underwriting fees, are reduced by direct costs associated with loan processing, including salaries, legal review, and appraisal fees. Net deferred loan fees are deferred and amortized over the life of the related loan or commitment period.

 

Purchased Performing Loans. Purchased loans that are deemed to be performing at the acquisition date are accounted for using the contractual cash flow method of accounting, which results in the loans being recorded at fair value with a credit discount. The fair value discount or premium is accreted or amortized, as the case may be, as an adjustment to yield over the estimated contractual lives of the loans.

 

Purchased Credit Deteriorated (“PCD”) Loans. Purchased credit-deteriorated, otherwise referred to herein as PCD, assets are defined as acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company records acquired PCD loans by adding the expected credit losses (i.e. allowance for credit losses) to the purchase price of the financial assets rather than recording through the provision for credit losses in the income statement. The expected credit loss, as of the acquisition date, of a PCD loan is added to the allowance for credit losses. The non-credit discount or premium is the difference between the fair value and the amortized cost basis as of the acquisition date. Subsequent to the acquisition date, the change in the ACL on PCD loans is recognized through the provision for credit losses. The non-credit discount or premium is accreted or amortized, respectively, into interest income over the remaining life of the PCD loan on a level-yield basis. In accordance with the transition requirements within the standard, the Company’s acquired purchased credit impaired loans were treated as PCD loans.

 

Individually Evaluated Loans and Nonperforming Assets.  The Company maintains an active and robust problem credit identification system through its ongoing credit review function.  When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company currently maintains a net book balance threshold of $500,000 for individually-evaluated loans. Generally, individually-evaluated loans other than Troubled Debt Restructurings, otherwise referred to herein as “TDRs,” are on nonaccrual status. Based on the threshold above, consumer loans will generally remain in pools unless they meet the dollar threshold and foreclosure is probable. The expected credit losses on individually-evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset.  The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Therefore, Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an allowance for credit losses on accrued interest receivable.  The accrual of interest, which is based on the daily amount of principal outstanding, on individually evaluated loans is generally continued unless the loan becomes delinquent 90 days or more.

 

Loans are considered past due when either principal or interest payments become contractually delinquent by 30 days or more. The Company’s policy is to discontinue the accrual of interest, if warranted, on loans based on the payment status, evaluation of the related collateral, and the financial strength of the borrower. Loans that are 90 days or more past due are placed on nonaccrual status. Management may elect to continue the accrual of interest when the loan is well secured and in process of collection. When interest accruals are discontinued, interest accrued and not collected in the current year is reversed from income, and interest accrued and not collected from prior years is charged to the allowance for loan losses. Nonaccrual loans may be returned to accrual status when all principal and interest amounts contractually due, including past due payments, are brought current; the ability of the borrower to repay the obligation is reasonably assured; and there is generally a period of at least six months of repayment performance by the borrower in accordance with the contractual terms.

 

Seriously delinquent loans are evaluated for loss mitigation options. Closed-end retail loans are generally charged off against the allowance for credit losses when the loans become 120 days past due. Open-end retail loans and residential real estate secured loans are generally charged off when the loans become 180 days past due. Unsecured loans are generally charged off when the loans become 90 days past due. All other loans are charged off against the allowance for loan losses after collection attempts have been exhausted, which generally is within 120 days. Recoveries of loans previously charged off are credited to the allowance for loan losses in the period received.

 

Loans are considered troubled debt restructurings when the Company grants concessions, for legal or economic reasons, to borrowers experiencing financial difficulty that would not otherwise be considered. The Company generally makes concessions in interest rates, loan terms, and/or amortization terms. All TDRs $500 thousand or greater are evaluated for a specific reserve based on either the collateral or net present value method, whichever is most applicable. TDRs under $500 thousand are subject to the reserve calculation for classified loans based primarily on the historical loss rate. At the date of modification, nonaccrual loans are classified as nonaccrual TDRs. TDRs classified as nonperforming at the date of modification are returned to performing status after six months of satisfactory payment performance; however, these loans remain identified as individually evaluated until full payment or other satisfaction of the obligation occurs.

 

Other real estate owned (“OREO”) acquired through foreclosure, or other settlement, is carried at the lower of cost or fair value less estimated selling costs. The fair value is generally based on current third-party appraisals. When a property is transferred into OREO, any excess of the loan balance over the net realizable fair value is charged against the allowance for loan losses. Operating expenses, gains, and losses on the sale of OREO are included in other noninterest expense in the Company’s consolidated statements of income after any fair value write-downs are recorded as valuation adjustments.

 
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance for Credit Losses (ACL)

 

The Company reviews our allowance for credit losses quarterly to determine if it is sufficient to absorb expected loan losses in the portfolio. This determination requires management to make significant estimates and assumptions. While the Company uses its best judgment and available information, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates, and the view of regulatory authorities towards loan classifications. These uncertainties may result in material changes to the allowance for credit losses in the near term; however, the amount of the change cannot reasonably be estimated. Prior to January 1, 2021, we followed the incurred loss accounting method for reserving for loan losses which required us to estimate losses that had been incurred as of the balance sheet date. For additional information, see this note, Note 1, “Basis of Presentation,” to the Consolidated Financial Statements in "Recent Accounting Standards".

 

The ACL is an estimate of losses that will result from the inability of borrowers to make required loan payments.  The Company established the incremental increase in the ACL at the adoption through retained earnings and subsequent adjustments will be made through a provision for credit losses charged to earnings.  Loans charged off are recorded against the ACL and subsequent recoveries increase the ACL when they are recognized.

 

A systematic methodology is used to determine ACL for loans held for investment and certain off-balance sheet credit exposures.  The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio.  The Company considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the loan portfolio.  The Company’s estimate of its ACL involves a high degree of judgement and reflects management’s best estimate within the range of expected credit losses.  The Company recognizes in net income the amount needed to adjust the ACL for management’s current estimate of expected credit losses.  The Company’s ACL is calculated using collectively evaluated and individually evaluated loans.

 

The Company collectively evaluates loans that share similar risk characteristics.  In general, loans are segmented by loan purpose.  The Company collectively evaluates loans within the following consumer and commercial segments:  Loans secured by 1-4 Family Properties, Home Equity Lines of Credit (“HELOC”), Owner Occupied Construction Loans, Consumer Loans, Commercial and Industrial, Multi-family, Non-farm/Non-residential Property, Commercial Construction/A&D/other Land Loans, Agricultural Loans, Credit Card Loans, Loans Secured by Farmland, and Other Consumer Loans (Overdrafts).

 

Risk characteristics of residential real estate loans which include loans secured by Single family properties, HELOC, and Owner occupied construction loans are dependent upon individual borrowers who are affected by changes in general economic conditions, real estate valuations, and the demand for housing.  Commercial and Industrial, Multi-family residential, Non-farm/non-residential, Agricultural, and Loans secured by Farmland are similar in that they are generally dependent upon the borrower's internal cash flow from operations to service the debt and changes in general economic conditions.  Commercial construction, Development, and other land loans, Consumer, and Other consumer loans (open pool) are similar in that they are dependent on changes in general economic conditions.

 

For collectively evaluated loans, the Company uses a combination of discounted cash flow and remaining life to estimate expected credit losses.  During 2022, the Company changed third party model providers which necessitated a change from remaining life to open pool for the portfolios noted above.  The change in method was not quantitatively significant.  In addition to its own loss experience, management also includes peer bank historical loss experience in its assessment of expected credit losses to determine the ACL.  The Company utilized call report data to measure its and its peers' historical credit losses experience with similar risk characteristics within the segments over an economic cycle.  The Company reviewed the historical loss information to appropriately adjust for differences in current asset specific risk characteristics.  Also considered were further adjustments to historical loss information for current conditions and reasonable and supportable forecasts that differ from the conditions that existed for the period over which historical information was evaluated.  For the majority of the segments of collectively evaluated loans, the Company incorporated at least one macroeconomic driver using a statistical regression modeling methodology.

 

The Company considers forward-looking information in estimated expected credit losses.  The Company subscribes to a third-party service which provides summary detail of dozens of economic forecasts.  Using that information and other publicly available economic forecasts, management determines the economic variables to use for the one-year reasonable and supportable forecast period.  Management has determined that the forecast period is consistent with how the Company has historically forecasted for its profitability planning and capital management.  Management has evaluated the appropriateness of the reasonable and supportable forecast for the current period along with the inputs used in the estimation of expected credit losses.  For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to historical loss information over eight quarters using a straight-line approach.  Management may apply different reversion techniques depending on the economic environment for the financial asset portfolio and as of the current period has utilized a linear reversion technique. 

 

Included in its systematic methodology to determine its ACL for loans held for investment and certain off-balance sheet credit exposures, The Company considers the need to qualitatively adjust expected credit losses for information not already captured in the loss estimation process.  These qualitative adjustments either increase or decrease the quantitative model estimation.  Each period the Company considers qualitative factors that are relevant within the qualitative framework that includes the following:  1) changes in lending policies and procedures, 2) changes in economic conditions, 3) changes in portfolio nature and volume, 4) changes in management, 5) changes in past due loans, 6) changes in the quality of the Company’s credit review system, 7) changes in the value of underlying collateral, 8) the effect of concentrations of credit, and 9) the effect of other external factors.

 

When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company currently maintains a net book balance threshold of $500,000 for individually-evaluated loans. Generally, individually-evaluated loans other than TDRs are on nonaccrual status. Based on the threshold above, consumer loans will generally remain in pools unless they meet the dollar threshold and foreclosure is probable. The expected credit losses on individually-evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset.

 

The Company measures expected credit losses over the contractual term of the loans. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals, or modifications, unless the Company reasonably expects it will execute a TDR with a borrower. In the event of a reasonably-expected TDR, the Company factors the reasonably-expected TDR into the current expected credit losses estimate. The effects of a TDR are recorded when an individual asset is specifically identified as a reasonably-expected TDR. For consumer loans, the point at which a TDR is reasonably expected is when the Company approves the borrower’s application for a modification (i.e. the borrower qualifies for the TDR) or when the Credit Administration department approves loan concessions on substandard loans. For commercial loans, the point at which a TDR is reasonably expected is when the Company approves the loan for modification or when the Credit Administration department approves loan concessions on substandard loans. The Company uses a discounted cash flow methodology to calculate the effect of the concession provided to the borrower in TDR within the ACL. 

 

The Company has a variety of assets that have a component that qualifies as an off-balance sheet exposure. These primarily include undrawn portions of revolving lines of credit and standby letters of credit. The expected losses associated with these exposures within the unfunded portion of the loans will be recorded as a liability on the balance sheet with an offsetting income statement expense. The Company has determined that a majority of the Company’s off-balance-sheet credit exposures are not unconditionally cancellable. As of  December 31, 2022, the liability recorded for expected credit losses on unfunded commitments in Other Liabilities was $1.20 million. The estimates are determined based on the likelihood of funding during the contractual term and an estimate of credit losses subsequent to funding. Estimated credit losses on subsequently funded balances are based on the same assumptions as used to estimate credit losses on existing funded loans. The current adjustment to the ACL for unfunded commitments would be recognized through other operating expense in the Statement of Income. For additional information, see Note 6, “Allowance for Loan Losses,” to the Consolidated Financial Statements in Item 8 of this report.  

 

 
Property, Plant and Equipment, Policy [Policy Text Block]

Premises and Equipment

 

Premises, equipment, and leases are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets. Useful lives range from 5 to 10 years for furniture, fixtures, and equipment; 3 to 5 years for computer software, hardware, and data handling equipment; and 7 to 40 years for buildings and building improvements. Land improvements are amortized over a period of 20 years and leasehold improvements are amortized over the lesser of the term of the respective leases plus the first optional renewal period, when renewal is reasonably assured, or the estimated useful lives of the improvements. The Company leases various properties within its branch network. Leases generally have initial terms of up to 10 years and most contain options to renew with increases in rent. All leases are accounted for as operating leases. Maintenance and repairs are charged to current operations while improvements that extend the economic useful life of the underlying asset are capitalized. Disposition gains and losses are reflected in current operations.

 
Goodwill and Intangible Assets, Policy [Policy Text Block]

Intangible Assets

 

Intangible assets consist of goodwill, core deposit intangible assets, and other identifiable intangible assets that result from business combinations. Goodwill represents the excess of the purchase price over the fair value of net assets acquired that is allocated to the appropriate reporting unit when acquired. Core deposit intangible assets represent the future earnings potential of acquired deposit relationships that are amortized over their estimated remaining useful lives. Other identifiable intangible assets primarily represent the rights arising from contractual arrangements that are amortized using the straight-line method.

 

An interim analysis of Goodwill is performed quarterly, and goodwill is tested for impairment annually, on October 31st, or more frequently if events or circumstances indicate there may be impairment. We have one reporting unit, Community Banking.  If we elect to perform a qualitative assessment, we evaluate factors such as macroeconomic conditions, industry and market considerations, overall financial performance, changes in stock price, and progress towards stated objectives in determining if it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, a quantitative test is performed; otherwise, no further testing is required. The quantitative test consists of comparing the fair value of our reporting unit to its carrying amount, including goodwill. If the fair value of our reporting unit is greater than its book value, no goodwill impairment exists. If the carrying amount of our reporting unit is greater than its calculated fair value, a goodwill impairment charge is recognized for the difference. 

 

Management has concluded that there was no goodwill impairment for 2022.  

 
Repurchase Agreements, Collateral, Policy [Policy Text Block]

Securities Sold Under Agreements to Repurchase

 

Securities sold under agreements to repurchase are generally accounted for as collateralized financing transactions and recognized as short-term borrowings in the Company’s consolidated balance sheets. Securities, generally U.S. government and federal agency securities, pledged as collateral under these arrangements can be sold or repledged only if replaced by the secured party. The fair value of the collateral provided to a third party is continually monitored and additional collateral is provided as appropriate.

 
Derivatives, Policy [Policy Text Block]

Derivative Instruments

 

The Company primarily uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets and liabilities and on future cash flows. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another asset to the other party based on a notional amount and an underlying asset as specified in the contract such as interest rates, equity security prices, currencies, commodity prices, or credit spreads. These derivative instruments may consist of interest rate swaps, floors, caps, collars, futures, forward contracts, and written and purchased options. Derivative contracts often involve future commitments to exchange interest payment streams or currencies based on a notional or contractual amount, such as interest rate swaps or currency forwards, or to purchase or sell other financial instruments at specified terms on a specified date, such as options to buy or sell securities or currencies. Derivative instruments are subject to counterparty credit risk due to the possibility that the Company will incur a loss because a counterparty, which may be a bank, a broker-dealer or a customer, fails to meet its contractual obligations. This risk is measured as the expected positive replacement value of contracts. Derivative contracts may be executed only with exchanges or counterparties approved by the Company’s Asset/Liability Management Committee.

 

If certain conditions are met, a derivative may be designated as a hedge related to fair value, cash flow, or foreign exposure risk. The recognition of changes in the fair value of a derivative instrument varies depending on the intended use of the derivative and the resulting designation. The Company accounts for hedges of customer loans as fair value hedges. The change in fair value of the hedging derivative and the change in fair value of the hedged exposure are recorded in earnings. Any hedge ineffectiveness is also reflected in current earnings. Changes in the fair value of derivatives not designated as hedging instruments are recognized as a gain or loss in earnings. The Company formally documents any relationships between hedging instruments and hedged items and the risk management objective and strategy for undertaking each hedged transaction. All derivative instruments are reported at fair value in the consolidated balance sheets.

 
Share-Based Payment Arrangement [Policy Text Block]

Equity-Based Compensation

 

The cost of employee services received in exchange for equity instruments, including stock options and restricted stock awards, is generally measured at fair value on the grant date. The Black-Scholes-Merton valuation model is used to estimate the fair value of stock options at the grant date while the fair value of restricted stock awards is based on the market price of the Company’s common stock on the grant date. The Black-Scholes-Merton model incorporates the following assumptions: the expected volatility is based on the weekly historical volatility of the Company’s common stock price over the expected term of the option; the expected term is generally calculated using the shortcut method; the risk-free interest rate is based on the U.S. Department of the Treasury’s (“Treasury”) yield curve on the grant date with a term comparable to the grant; and the dividend yield is based on the Company’s dividend yield using the most recent dividend rate paid per share and trading price of the Company’s common stock. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option awards and as the restriction period for restricted stock awards. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

 
Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

 

Wealth management. Wealth management income represents monthly fees due from wealth management customers in consideration for managing and administrating the customers' assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services and similar fiduciary activities. Revenue is recognized when the performance obligation is completed each month, which is generally the time that payment is received. Income also includes fees received from a third party broker-dealer as part of a revenue-sharing agreement for fees earned from customers that are referred to the third party. These fees are paid to the Company by the third party on a quarterly basis and recognized ratably throughout the quarter as the performance obligation is satisfied.

 

Service charges on deposits and other service charges and fees.

 

Service charges on deposits and other service charges and fees represent general service fees for account maintenance and activity and transaction-based fees that consist of transaction-based revenue, time-based revenue (service period), item-based revenue, or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations is generally received at the time the performance obligations are satisfied. Other service charges and fees include interchange income from debit and credit card transaction fees.

 
Advertising Cost [Policy Text Block]

Advertising Expenses

 

Advertising costs are generally expensed as incurred. The Company may establish accruals for incurred advertising expenses in the course of a fiscal year.

 
Income Tax, Policy [Policy Text Block]

Income Taxes

 

Income tax expense is comprised of the current and deferred tax consequences of events and transactions already recognized. The Company includes interest and penalties related to income tax liabilities in income tax expense. The effective tax rate, income tax expense as a percent of pre-tax income, may vary significantly from statutory rates due to tax credits and permanent differences. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are adjusted through the provision for income taxes as changes in tax laws or rates are enacted.

 
Earnings Per Share, Policy [Policy Text Block]

Per Share Results

 

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of potential common stock that could be issued by the Company. Under the treasury stock method of accounting, potential common stock may be issued for stock options, non-vested restricted stock awards, performance based stock awards, and convertible preferred stock. Diluted earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding for the period plus the number of dilutive potential common shares. The calculation of diluted earnings per common share excludes potential common shares that have an exercise price greater than the average market value of the Company’s common stock because the effect would be antidilutive.

 
Risks and Uncertainties Policy [Policy Text Block]

Risks and Uncertainties

 

Recent COVID-19 Virus Developments –

 

During the last three years, government reaction to the novel coronavirus (“COVID-19”) pandemic significantly disrupted local, national, and global economies and adversely impacted a broad range of industries, including banking and other financial services.  As COVID-19 events unfolded, the Company implemented various plans, strategies and protocols to protect its employees, maintain services for customers, assure the functional continuity of its operating systems, controls and processes, and mitigate financial risks posed by changing market conditions.

 

While direct impacts of COVID-19 appear to be declining and conditions have improved as of  December 31, 2022, if there is a resurgence in the virus, the Company could experience adverse effects on its business, financial condition, results of operations and cash flows.  While it is not possible to know the full extent that the impact of COVID-19, and any potential resulting measures to curtail its spread, will have on the Company's future operations, the Company's management believes its financial position, including high levels of capital and liquidity, will allow it to successfully endure the negative economic impacts of the pandemic.

 
New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Standards

 

Standards Adopted 

 

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU requires earlier recording of credit losses on loans and other financial assets held by financial institutions and other organizations. This ASU also requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.  It further requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, the ASU amends the accounting for credit losses in investments in debt securities and purchased financial assets with credit deterioration.  The Company adopted the new standard as of January 1, 2021.  The standard was applied using the modified retrospective method as a cumulative-effect adjustment to retained earnings as of January 1, 2021.  Under this method, comparative periods will not be required to be restated for financial statements related to Topic 326.  Comparative prior period disclosures will be presented using the guidance for the allowance for loan losses.  This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of and the reasons for the change, which is solely a result of the adoption of the required standard.  This standard did not have a material impact on our investment securities portfolio at implementation.  Related to the implementation of the standard, the Company recorded an additional ACL for loans of $13.11 million, deferred tax assets of $1.81 million, and additional reserve for unfunded commitments of $509 thousand and an adjustment to retained earnings, net of tax, of $5.87 million.  See the table below for the impact of ASU 2016-13 on the Company’s consolidated balance sheet.

 

  

January 1, 2021

  
  

As Reported

  

Pre-

  

Impact of

  
  

Under

  

ASU 2016-13

  

ASU 2016-13

  
  

ASU 2016-13

  

Adoption

  

Adoption

  
              
              

Assets:

             

Non-covered loans held for investment

             

Allowance for credit losses on debt securities

             

Investment securities - available for sale

 $83,358  $83,358  $- 

A

Loans

             

Non-acquired loans and acquired performing loans

  2,146,972   2,146,972   -  

Acquired purchased deteriorated loans

  45,535   39,660   5,875 

B

Allowance for credit losses on loans

  (39,289)  (26,182)  (13,107)

C

Deferred tax asset

  19,306   17,493   1,813 

D

Accrued interest receivable - loans

  9,109   9,052   57 

B

              

Liabilities

             

Allowance for credit losses on off-balance sheet

             

credit exposures

  575   66   509 

E

              

Equity:

             

Retained earnings

  231,714   237,585   (5,870)

F

 

A.Per our analysis no ACL was necessary for investment securities available for sale.
B.Accrued interest receivable from acquired credit impaired loans of $57 thousand was reclassed to other assets and was offset by the reclass of the grossed up credit discount on acquired credit imparied loans of $57 thousand that was moved to the ACL for the purchased credit deteriorated loans.
C.Calculated adjustment to the ACL related to the adoption of ASU 2016-13.  Includes additional reserve related to purchased deteriorated loans of $5.88 million.
D.Effect of deferred tax assets related to the adjustment to the ACL form the adoption of ASU 2016-13 using a 23.37% tax rate.
E.Adjustment to the reserve for unfunded commitments related to the adoption of ASU 2016-13.
F.Net adjustment to retained earnings related to the adoption of ASU 2016-13.

 

Standards Not Yet Adopted

 

In March 2022, the Financial Accounting Standards Board issuedASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.  This new accounting topic provides accounting guidance for troubled debt restructuring ("TDR"), and write-offs, effective January 1, 2023, with early adoption permitted.  The amendments eliminate TDR accounting guidance for issuers that have adopted ASU 2016-13, create a single loan modification accounting model, and clarify disclosure requirements for loan modifications and write-offs.  We are currently reviewing the impact of the updated guidance on our Consolidated Financial Statements, but do no anticipate a material impact.  The Company will adopt the standard, effective January 1, 2023.

 
v3.22.4
Note 1 - Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Standards Update 2016-13 [Member]  
Notes Tables  
Accounting Standards Update and Change in Accounting Principle [Table Text Block]
  

January 1, 2021

  
  

As Reported

  

Pre-

  

Impact of

  
  

Under

  

ASU 2016-13

  

ASU 2016-13

  
  

ASU 2016-13

  

Adoption

  

Adoption

  
              
              

Assets:

             

Non-covered loans held for investment

             

Allowance for credit losses on debt securities

             

Investment securities - available for sale

 $83,358  $83,358  $- 

A

Loans

             

Non-acquired loans and acquired performing loans

  2,146,972   2,146,972   -  

Acquired purchased deteriorated loans

  45,535   39,660   5,875 

B

Allowance for credit losses on loans

  (39,289)  (26,182)  (13,107)

C

Deferred tax asset

  19,306   17,493   1,813 

D

Accrued interest receivable - loans

  9,109   9,052   57 

B

              

Liabilities

             

Allowance for credit losses on off-balance sheet

             

credit exposures

  575   66   509 

E

              

Equity:

             

Retained earnings

  231,714   237,585   (5,870)

F
v3.22.4
Note 3 - Debt Securities (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block]
  

December 31, 2022

 
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

 

(Amounts in thousands)

                

U.S. Agency securities

 $1,500  $—  $(15) $1,485 

U.S. Treasury securities

  161,617   —   (4,353)  157,264 

Municipal securities

  23,480   21   (192)  23,309 

Corporate Notes

  37,046   —   (2,189)  34,857 

Mortgage-backed Agency securities

  96,480   3   (13,049)  83,434 

Total

 $320,123  $24  $(19,798) $300,349 
  

December 31, 2021

 
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

 

(Amounts in thousands)

                

U.S. Agency securities

 $469  $—  $(3) $466 

Municipal securities

  28,596   198   —   28,794 

Mortgage-backed Agency securities

  9,935   —   (16)  9,919 

Total

  37,273   513   (673)  37,113 
  $76,273  $711  $(692) $76,292 
Investments Classified by Contractual Maturity Date [Table Text Block]

(Amounts in thousands)

 

U.S. Agency Securities

  

U.S. Treasury Securities

  

Municipal Securities

  

Corporate Notes

  

Total

 

Amortized cost maturity:

                    

One year or less

 $1,500  $32,013  $3,070  $8,510  $45,093 

After one year through five years

  —   129,604   17,626   28,536   175,766 

After five years through ten years

  —   —   2,784   —   2,784 

After ten years

  —   —   —   —   — 

Amortized cost

 $1,500  $161,617  $23,480  $37,046   223,643 

Mortgage-backed securities

                  96,480 

Total amortized cost

                 $320,123 
                     

Fair value maturity:

                    

One year or less

 $1,485  $31,786  $3,068  $8,448  $44,787 

After one year through five years

  —   125,478   17,467   26,409   169,354 

After five years through ten years

  —   —   2,774   —   2,774 

After ten years

  —   —   —   —   — 

Fair value

 $1,485  $157,264  $23,309  $34,857   216,915 

Mortgage-backed securities

                  83,434 

Total fair value

                 $300,349 
Schedule of Unrealized Loss on Investments [Table Text Block]
  

December 31, 2022

 
  

Less than 12 Months

  

12 Months or Longer

  

Total

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 

(Amounts in thousands)

                        

U.S. Agency securities

 $1,485  $(15) $—  $—  $1,485  $(15)

U.S. Treasury securities

  157,264   (4,353)  —   —   157,264   (4,353)

Municipal securities

  12,347   (192)  —   —   12,347   (192)

Corporate Notes

  32,368   (2,172)  2,489   (17)  34,857   (2,189)

Mortgage-backed Agency securities

  64,993   (8,824)  18,305   (4,225)  83,298   (13,049)

Total

 $268,457  $(15,556) $20,794  $(4,242) $289,251  $(19,798)
  

December 31, 2021

 
  

Less than 12 Months

  

12 Months or Longer

  

Total

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 

(Amounts in thousands)

                        

U.S. Agency securities

 $—  $—  $459  $(3) $459  $(3)

Municipal securities

  —   —   —   —   —   — 

Corporate Notes

  9,919   (16)  —   —   9,919   (16)

Mortgage-backed Agency securities

  14,092   (253)  8,384   (420)  22,476   (673)

Total

 $24,011  $(269) $8,843  $(423) $32,854  $(692)
v3.22.4
Note 4 - Loans (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
   

December 31,

  
   

2022

    

2021

  

(Amounts in thousands)

  

Amount

    

Percent

    

Amount

    

Percent

  

Commercial loans

                                

Construction, development, and other land

   $ 117,174       4.88 %   $ 65,806       3.04 %

Commercial and industrial

     150,428       6.27 %     133,630       6.17 %

Multi-family residential

     148,026       6.17 %     100,402       4.64 %

Single family non-owner occupied

     206,121       8.59 %     198,778       9.18 %

Non-farm, non-residential

     787,703       32.82 %     707,506       32.67 %

Agricultural

     12,032       0.50 %     9,341       0.43 %

Farmland

     11,779       0.49 %     15,013       0.69 %

Total commercial loans

     1,433,263       59.72 %     1,230,476       56.82 %

Consumer real estate loans

                                

Home equity lines

     75,642       3.15 %     79,857       3.69 %

Single family owner occupied

     734,540       30.61 %     703,864       32.50 %

Owner occupied construction

     10,366       0.43 %     16,910       0.78 %

Total consumer real estate loans

     820,548       34.19 %     800,631       36.97 %

Consumer and other loans

                                

Consumer loans

     144,582       6.02 %     129,794       5.99 %

Other

     1,804       0.07 %     4,668       0.22 %

Total consumer and other loans

     146,386       6.09 %     134,462       6.21 %

Total loans held for investment, net of unearned income

   $ 2,400,197       100.00 %   $ 2,165,569       100.00 %
v3.22.4
Note 5 - Credit Quality (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Financing Receivable Credit Quality Indicators [Table Text Block]
  

December 31, 2022

 
      

Special

                 

(Amounts in thousands)

 

Pass

  

Mention

  

Substandard

  

Doubtful

  

Loss

  

Total

 

Commercial loans

                        

Construction, development, and other land

 $115,972  $853  $349  $—  $—  $117,174 

Commercial and industrial

  147,543   920   1,965   —   —   150,428 

Multi-family residential

  143,859   3,946   221   —   —   148,026 

Single family non-owner occupied

  195,775   2,303   8,043   —   —   206,121 

Non-farm, non-residential

  761,154   14,903   11,646   —   —   787,703 

Agricultural

  11,722   47   263   —   —   12,032 

Farmland

  9,868   573   1,338   —   —   11,779 

Consumer real estate loans

                        

Home equity lines

  72,927   288   2,427   —   —   75,642 

Single family owner occupied

  706,952   1,958   25,630   —   —   734,540 

Owner occupied construction

  10,204   —   162   —   —   10,366 

Consumer and other loans

                        

Consumer loans

  141,551   11   3,020   —   —   144,582 

Other

  1,804   —   —   —   —   1,804 

Total loans

 $2,319,331  $25,802  $55,064  $—  $—  $2,400,197 
  

December 31, 2021

 
      

Special

                 

(Amounts in thousands)

 

Pass

  

Mention

  

Substandard

  

Doubtful

  

Loss

  

Total

 

Commercial loans

                        

Construction, development, and other land

 $64,498  $451  $857  $—  $—  $65,806 

Commercial and industrial

  128,770   1,005   3,855   —   —   133,630 

Multi-family residential

  98,457   1,090   855   —   —   100,402 

Single family non-owner occupied

  186,184   3,607   8,977   10   —   198,778 

Non-farm, non-residential

  665,559   25,624   16,323   —   —   707,506 

Agricultural

  8,758   70   513   —   —   9,341 

Farmland

  11,939   633   2,441   —   —   15,013 

Consumer real estate loans

                        

Home equity lines

  76,259   426   3,172   —   —   79,857 

Single family owner occupied

  671,459   2,420   29,985   —   —   703,864 

Owner occupied construction

  16,629   —   281   —   —   16,910 

Consumer and other loans

                        

Consumer loans

  127,514   16   2,264   —   —   129,794 

Other

  4,668   —   —   —   —   4,668 

Total loans

 $2,060,694  $35,342  $69,523  $10  $-  $2,165,569 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2022

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Construction, development

                                

and other land

                                

Pass

 $58,770  $39,995  $4,602  $3,050  $2,485  $5,608  $1,462  $115,972 

Special Mention

  -   225   -   -   94   534   -   853 

Substandard

  -   -   267   71   11   -   -   349 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total construction, development, and other land

 $58,770  $40,220  $4,869  $3,121  $2,590  $6,142  $1,462  $117,174 

Commercial and industrial

                                

Pass

 $69,678  $23,746  $12,047  $7,729  $9,121  $8,890  $16,332  $147,543 

Special Mention

  227   20   21   367   185   1   99   920 

Substandard

  130   112   114   620   192   797   -   1,965 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total commercial and industrial

 $70,035  $23,878  $12,182  $8,716  $9,498  $9,688  $16,431  $150,428 

Multi-family residential

                                

Pass

 $45,261  $20,881  $31,087  $3,733  $1,328  $41,063  $506  $143,859 

Special Mention

  -   -   -   -   -   3,946   -   3,946 

Substandard

  -   -   -   -   -   221   -   221 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total multi-family residential

 $45,261  $20,881  $31,087  $3,733  $1,328  $45,230  $506  $148,026 

Non-farm, non-residential

                                

Pass

 $218,595  $145,675  $114,840  $52,575  $35,564  $185,448  $8,457  $761,154 

Special Mention

  -   1,927   852   1,193   2,708   8,076   147   14,903 

Substandard

  -   1,267   675   2,509   1,531   5,664   -   11,646 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total non-farm, non-residential

 $218,595  $148,869  $116,367  $56,277  $39,803  $199,188  $8,604  $787,703 

Agricultural

                                

Pass

 $6,244  $3,225  $1,003  $376  $154  $214  $506  $11,722 

Special Mention

  -   33   14   -   -   -   -   47 

Substandard

  124   37   1   66   24   11   -   263 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total agricultural

 $6,368  $3,295  $1,018  $442  $178  $225  $506  $12,032 

Farmland

                                

Pass

 $646  $713  $796  $77  $869  $6,150  $617  $9,868 

Special Mention

  -   109   -   -   222   242   -   573 

Substandard

  -   -   12   -   253   1,073   -   1,338 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total farmland

 $646  $822  $808  $77  $1,344  $7,465  $617  $11,779 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2022

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Home equity lines

                                

Pass

 $1,960  $198  $241  $-  $24  $7,429  $63,075  $72,927 

Special Mention

  -   -   -   -   -   117   171   288 

Substandard

  -   -   27   35   114   1,253   998   2,427 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total home equity lines

 $1,960  $198  $268  $35  $138  $8,799  $64,244  $75,642 

Single family Mortgage

                                

Pass

 $157,890  $237,363  $207,480  $48,795  $36,678  $214,148  $373  $902,727 

Special Mention

  -   376   90   363   262   3,170   -   4,261 

Substandard

  461   1,196   740   1,217   1,991   28,068   -   33,673 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total single family owner and non-owner occupied

 $158,351  $238,935  $208,310  $50,375  $38,931  $245,386  $373  $940,661 

Owner occupied construction

                                

Pass

 $6,357  $3,344  $-  $23  $11  $469  $-  $10,204 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   162   -   -   -   -   162 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total owner occupied construction

 $6,357  $3,344  $162  $23  $11  $469  $-  $10,366 

Consumer loans

                                

Pass

 $69,579  $37,603  $16,033  $7,640  $2,528  $2,040  $7,932  $143,355 

Special Mention

  -   5   -   6   -   -   -   11 

Substandard

  881   1,002   466   416   36   159   60   3,020 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total consumer loans

 $70,460  $38,610  $16,499  $8,062  $2,564  $2,199  $7,992  $146,386 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2022

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Total Loans

                                

Pass

 $634,980  $512,743  $388,129  $123,998  $88,762  $471,459  $99,260  $2,319,331 

Special Mention

  227   2,695   977   1,929   3,471   16,086   417   25,802 

Substandard

  1,596   3,614   2,464   4,934   4,152   37,246   1,058   55,064 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total loans

 $636,803  $519,052  $391,570  $130,861  $96,385  $524,791  $100,735  $2,400,197 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2021

 

2021

  

2020

  

2019

  

2018

  

2017

  

Prior

  

Revolving

  

Total

 

Construction, development

                                

and other land

                                

Pass

 $40,207  $10,127  $3,081  $3,704  $1,308  $5,717  $354  $64,498 

Special Mention

  -   266   -   128   -   21   36   451 

Substandard

  -   -   128   11   291   427   -   857 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total construction, development, and other land

 $40,207  $10,393  $3,209  $3,843  $1,599  $6,165  $390  $65,806 

Commercial and industrial

                                

Pass

 $34,539  $18,887  $13,679  $13,772  $4,817  $5,890  $16,544  $108,128 

Special Mention

  32   60   597   192   28   -   96   1,005 

Substandard

  184   355   706   384   842   866   518   3,855 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total commercial and industrial

 $34,755  $19,302  $14,982  $14,348  $5,687  $6,756  $17,158  $112,988 

Paycheck Protection Loans

                                

Pass

 $16,482  $4,160  $-  $-  $-  $-  $-  $20,642 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total Paycheck Protection Loans

 $16,482  $4,160  $-  $-  $-  $-  $-  $20,642 

Multi-family residential

                                

Pass

 $11,307  $24,299  $4,644  $1,897  $8,413  $46,962  $935  $98,457 

Special Mention

  -   -   -   -   -   1,090   -   1,090 

Substandard

  -   -   -   -   -   855   -   855 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total multi-family residential

 $11,307  $24,299  $4,644  $1,897  $8,413  $48,907  $935  $100,402 

Non-farm, non-residential

                                

Pass

 $147,978  $146,381  $62,651  $50,943  $43,776  $199,812  $14,018  $665,559 

Special Mention

  397   3,334   823   2,595   9,190   9,135   150   25,624 

Substandard

  1,161   711   2,508   2,531   3,232   5,953   227   16,323 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total non-farm, non-residential

 $149,536  $150,426  $65,982  $56,069  $56,198  $214,900  $14,395  $707,506 

Agricultural

                                

Pass

 $4,564  $1,548  $998  $534  $346  $335  $433  $8,758 

Special Mention

  43   27   -   -   -   -   -   70 

Substandard

  44   11   282   39   17   120   -   513 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total agricultural

 $4,651  $1,586  $1,280  $573  $363  $455  $433  $9,341 

Farmland

                                

Pass

 $428  $1,047  $82  $1,125  $887  $6,835  $1,535  $11,939 

Special Mention

  189   -   -   240   5   199   -   633 

Substandard

  -   14   519   249   264   1,395   -   2,441 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total farmland

 $617  $1,061  $601  $1,614  $1,156  $8,429  $1,535  $15,013 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2021

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Home equity lines

                                

Pass

 $115  $59  $-  $25  $2  $2,168  $73,890  $76,259 

Special Mention

  -   -   -   -   -   -   426   426 

Substandard

  -   -   28   249   128   1,316   1,451   3,172 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total home equity lines

 $115  $59  $28  $274  $130  $3,484  $75,767  $79,857 

Single family Mortgage

                                

Pass

 $239,917  $225,294  $61,925  $46,716  $41,757  $240,845  $1,189  $857,643 

Special Mention

  399   510   937   269   137   3,775   -   6,027 

Substandard

  1,213   799   1,475   1,668   1,878   31,929   -   38,962 

Doubtful

  -   -   -   -   -   10   -   10 

Loss

  -   -   -   -   -   -   -   - 

Total single family owner and non-owner occupied

 $241,529  $226,603  $64,337  $48,653  $43,772  $276,559  $1,189  $902,642 

Owner occupied construction

                                

Pass

 $9,689  $4,729  $178  $22  $428  $1,583  $-  $16,629 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   281   -   281 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total owner occupied construction

 $9,689  $4,729  $178  $22  $428  $1,864  $-  $16,910 

Consumer loans

                                

Pass

 $65,018  $31,065  $16,548  $4,980  $2,306  $10,040  $2,225  $132,182 

Special Mention

  -   -   16   -   -   -   -   16 

Substandard

  328   663   824   107   78   186   78   2,264 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total consumer loans

 $65,346  $31,728  $17,388  $5,087  $2,384  $10,226  $2,303  $134,462 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2021

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Total Loans

                                

Pass

 $570,244  $467,596  $163,786  $123,718  $104,040  $520,187  $111,123  $2,060,694 

Special Mention

  1,060   4,197   2,373   3,424   9,360   14,220   708   35,342 

Substandard

  2,930   2,553   6,470   5,238   6,730   43,328   2,274   69,523 

Doubtful

  -   -   -   -   -   10   -   10 

Loss

  -   -   -   -   -   -   -   - 

Total loans

 $574,234  $474,346  $172,629  $132,380  $120,130  $577,745  $114,105  $2,165,569 
Financing Receivable, Nonaccrual [Table Text Block]
  

December 31, 2022

  

December 31, 2021

 

(Amounts in thousands)

 

No Allowance

  

With an Allowance

  

Total

  

No Allowance

  

With an Allowance

  

Total

 

Commercial loans

                        

Construction, development, and other land

 $31  $—  $31  $409  $—  $409 

Commercial and industrial

  438   —   438   1,734   —   1,734 

Multi-family residential

  220   —   220   208   —   208 

Single family non-owner occupied

  984   —   984   2,304   —   2,304 

Non-farm, non-residential

  1,771   —   1,771   3,439   1,100   4,539 

Agricultural

  9   —   9   136   —   136 

Farmland

  133   —   133   222   —   222 

Consumer real estate loans

                        

Home equity lines

  400   —   400   767   —   767 

Single family owner occupied

  8,228   589   8,817   8,957   —   8,957 

Owner occupied construction

  —   —   —   —   —   — 

Consumer and other loans

                        

Consumer loans

  2,405   —   2,405   1,492   —   1,492 

Total nonaccrual loans

 $14,619  $589  $15,208  $19,668  $1,100  $20,768 
Financing Receivable, Past Due [Table Text Block]
  

December 31, 2022

 
                          

Amortized Cost of

 
  

30 - 59 Days

  

60 - 89 Days

  

90+ Days

  

Total

  

Current

  

Total

  

>90 Days Accruing

 

(Amounts in thousands)

 

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Loans

  

Loans

  

No Allowance

 

Commercial loans

                            

Construction, development, and other land

 $393  $8  $23  $424  $116,750  $117,174  $— 

Commercial and industrial

  756   129   217   1,102   149,326   150,428   — 

Multi-family residential

  —   —   83   83   147,943   148,026   — 

Single family non-owner occupied

  990   122   299   1,411   204,710   206,121   — 

Non-farm, non-residential

  646   52   548   1,246   786,457   787,703   — 

Agricultural

  36   135   9   180   11,852   12,032   — 

Farmland

  —   —   133   133   11,646   11,779   — 

Consumer real estate loans

                            

Home equity lines

  519   115   262   896   74,746   75,642   — 

Single family owner occupied

  5,951   2,322   3,166   11,439   723,101   734,540   — 

Owner occupied construction

  —   —   —   —   10,366   10,366   — 

Consumer and other loans

                            

Consumer loans

  4,282   1,960   1,459   7,701   136,881   144,582   — 

Other

  —   —   —   —   1,804   1,804   — 

Total loans

 $13,573  $4,843  $6,199  $24,615  $2,375,582  $2,400,197  $— 
  

December 31, 2021

 
                          

Amortized Cost of

 
  

30 - 59 Days

  

60 - 89 Days

  

90+ Days

  

Total

  

Current

  

Total

  

>90 Days Accruing

 

(Amounts in thousands)

 

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Loans

  

Loans

  

No Allowance

 

Commercial loans

                            

Construction, development, and other land

 $52  $—  $120  $172  $65,634  $65,806  $— 

Commercial and industrial

  325   35   1,394   1,754   131,876   133,630   — 

Multi-family residential

  97   —   —   97   100,305   100,402   — 

Single family non-owner occupied

  1,210   583   795   2,588   196,190   198,778   — 

Non-farm, non-residential

  1,002   441   2,333   3,776   703,730   707,506   — 

Agricultural

  73   7   101   181   9,160   9,341   — 

Farmland

  52   —   222   274   14,739   15,013   — 

Consumer real estate loans

                            

Home equity lines

  275   388   333   996   78,861   79,857   — 

Single family owner occupied

  4,740   2,584   3,880   11,204   692,660   703,864   — 

Owner occupied construction

  139   —   —   139   16,771   16,910   — 

Consumer and other loans

                            

Consumer loans

  3,469   1,182   1,049   5,700   124,094   129,794   — 

Other

  —   —   —   —   4,668   4,668   — 

Total loans

 $11,434  $5,220  $10,227  $26,881  $2,138,688  $2,165,569  $— 
Collateral Dependent Loans [Table Text Block]
  

December 31, 2022

  

December 31, 2021

 

(Amounts in thousands)

 

Balance

  

Collateral Coverage

  

Coverage Ratio

  

Balance

  

Collateral Coverage

  

Coverage Ratio

 

Commercial Real Estate

                        

Hotel

 $-  $-   -  $-  $-   - 

Office

  -   -   -   -   -   - 

Other

  -   -   -   2,216   2,312   104.33%

Retail

  -   -   -   -   -   - 

Multi-Family

                        

Industrial

  -   -   -   -   -   - 

Office

  -   -   -   -   -   - 

Other

  -   -   -   -   -   - 

Commercial and industrial

                        

Industrial

  -   -   -   -   -   - 

Other

  -   -   -   -   -   - 

Home equity loans

  -   -   -   -   -   - 

Consumer owner occupied

  589   574   97.45%  -   -   - 

Consumer

  -   -   -   -   -   - 

Total collateral dependent loans

 $589  $574   97.45% $2,216  $2,312   104.33%
Trouble Debt Restructuring Accrual Status [Table Text Block]
  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

 

Nonaccrual(1)

  

Accruing

  

Total

  

Nonaccrual(1)

  

Accruing

  

Total

 

Commercial loans

                        

Commercial and industrial

 $—  $374  $374  $396  $470  $866 

Single family non-owner occupied

  142   838   980   857   1,100   1,957 

Non-farm, non-residential

  —   747   747   —   2,021   2,021 

Consumer real estate loans

                        

Home equity lines

  —   55   55   —   67   67 

Single family owner occupied

  1,182   5,073   6,255   1,266   4,755   6,021 

Owner occupied construction

  —   —   —   —   212   212 

Consumer and other loans

                        

Consumer loans

  —   25   25   —   27   27 

Total TDRs

 $1,324  $7,112  $8,436  $2,519  $8,652  $11,171 
                         

Allowance for credit losses related to TDRs

         $—          $— 
Interest Income Related to Troubled Debt Restructurings [Table Text Block]
  

Year Ended December 31,

 
  

2022

  

2021

  

2020

 

(Amounts in thousands)

            

Interest income recognized

 $383  $422  $473 
Financing Receivable, Troubled Debt Restructuring [Table Text Block]
  

Year Ended December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

 

Total Contracts

  

Pre-modification Recorded Investment

  

Post modification Recorded Investment(1)

  

Total Contracts

  

Pre-modification Recorded Investment

  

Post modification Recorded Investment(1)

 

Below market interest rate

                        

Single family owner occupied

  1  $31  $32   —  $—  $— 

Below market interest rate and extended payment term

                        

Single family non-owner occupied

  —   —   —   1   165.00   165.00 

Single family owner occupied

  —   —   —   4   402   402 

Total below market interest rate and extended payment term

  —   —   —   5   567   567 

Principal deferral

                        

Single family non-owner occupied

  —   —   —   1   753   753 

Single family owner occupied

  5   494   481   1   41   41 

Total principal deferral

  5   494   481   2   794   794 

Total

  6  $525  $513   7  $1,361  $1,361 
Other Real Estate Owned [Table Text Block]
  

December 31, 2022

  

December 31, 2021

 

(Amounts in thousands)

        

Total OREO

 $703  $1,015 
         

OREO secured by residential real estate

 $407  $337 

Residential real estate loans in the foreclosure process(1)

 $1,474  $2,210 
v3.22.4
Note 6 - Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Financing Receivable, Allowance for Credit Loss [Table Text Block]
  

Year Ended December 31, 2022

 

(Amounts in thousands)

 

Commercial

  

Consumer Real Estate

  

Consumer and Other

  Total Allowance 

Beginning balance

 $14,775  $9,972  $3,111  $27,858 

Provision for (recovery of) credit losses charged to operations

  431   (1,121)  7,262   6,572 

Charge-offs

  (633)  (427)  (6,743)  (7,803)

Recoveries

  2,640   507   782   3,929 

Net (charge-offs) recoveries

  2,007   80   (5,961)  (3,874)

Ending balance

 $17,213  $8,931  $4,412  $30,556 
  

Year Ended December 31, 2021

 

(Amounts in thousands)

 

Commercial

  

Consumer Real Estate

  

Consumer and Other

  Total Allowance 

Beginning balance

 $14,661  $8,951  $2,570  $26,182 

Cumulative effect of adoption of ASU 2016-13

  8,360   4,145   602   13,107 

(Recovery of) provision for credit losses charged to operations

  (6,949)  (3,653)  2,131   (8,471)

Charge-offs

  (3,431)  (318)  (3,025)  (6,774)

Recoveries

  2,134   847   833   3,814 

Net (charge-offs) recoveries

  (1,297)  529   (2,192)  (2,960)

Ending balance

 $14,775  $9,972  $3,111  $27,858 
v3.22.4
Note 7 - Premises, Equipment, and Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Property, Plant and Equipment [Table Text Block]
  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Land

 $19,460  $20,402 

Buildings and leasehold improvements

  47,009   48,118 

Equipment

  40,552   40,501 

Total premises and equipment

  107,021   109,021 

Accumulated depreciation and amortization

  (59,681)  (56,737)

Total premises and equipment, net

 $47,340  $52,284 
Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Year

 

Amount

 

(Amounts in thousands)

    

2023

 $119 

2024

  117 

2025

  101 

2026

  101 

2027 and thereafter

  261 

Total lease payments

  699 

Less: Interest

  (29)

Present value of lease liabilities

 $670 
v3.22.4
Note 8 - Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Finite-Lived Intangible Assets [Table Text Block]
  

December 31,

 
  

2022

  

2021

  

2020

 

(Amounts in thousands)

            

Core deposit intangibles

 $12,674  $12,674  $12,674 

Accumulated amortization

  (8,498)  (7,052)  (5,605)

Total other intangible assets, net

 $4,176  $5,622  $7,069 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

(Amounts in thousands)

    

2023

 $878 

2024

  856 

2025

  647 

2026

  449 

2027

  449 

2028 and thereafter

  897 

Total estimated amortization expense

 $4,176 
v3.22.4
Note 9 - Deposits (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Deposit Liabilities, Type [Table Text Block]
  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Noninterest-bearing demand deposits

 $872,168  $842,783 

Interest-bearing deposits

        

Interest-bearing demand deposits

  679,609   676,254 

Money market accounts

  264,734   293,915 

Savings deposits

  578,974   561,576 

Certificates of deposit

  180,008   237,919 

Individual retirement accounts

  103,322   116,944 

Total interest-bearing deposits

  1,806,647   1,886,608 

Total deposits

 $2,678,815  $2,729,391 
Time Deposit Maturities [Table Text Block]

(Amounts in thousands)

    

2023

 $161,250 

2024

  50,680 

2025

  30,246 

2026

  18,010 

2027

  18,191 

2028 and thereafter

  4,953 

Total contractual maturities

 $283,330 
Scheduled Maturities of Certificates of Deposits, Greater than 250,000 [Table Text Block]

(Amounts in thousands)

    

Three months or less

 $2,406 

Over three through six months

  1,160 

Over six through twelve months

  3,754 

Over twelve months

  7,894 

Total contractual maturities

 $15,214 
v3.22.4
Note 10 - Borrowings (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Debt [Table Text Block]
   

December 31,

  
   

2022

    

2021

  

(Amounts in thousands)

  

Balance

     Weighted Average Rate    

Balance

     Weighted Average Rate  
                                 

Retail repurchase agreements

   $ 1,874       0.07 %   $ 1,536       0.07 %
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets [Table Text Block]
   

Overnight and Continuous

    

Up to 30 Days

    

30 - 90 Days

     Greater than 90 Days    

Total

  
                                         

(Amounts in thousands)

                                        

Municipal securities

   $ 453     $ -     $ -     $ -     $ 453  

Mortgage-backed Agency securities

     1,421       —       —       —       1,421  

Total

   $ 1,874     $ —     $ —     $ —     $ 1,874  
v3.22.4
Note 11 - Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Derivative Instruments [Table Text Block]
  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

 

Notional or Contractual Amount

  Derivative Assets  

Derivative Liabilities

  

Notional or Contractual Amount

  Derivative Assets  

Derivative Liabilities

 

Derivatives designated as hedges

                        

Interest rate swaps

 $3,983  $199  $—  $4,388  $—  $229 

Derivatives not designated as hedges

                        

Interest rate swaps

  -   -   -   7,890   -   608 

Total derivatives

 $3,983  $199  $—  $12,278  $—  $837 
Derivative Instruments, Gain (Loss) [Table Text Block]
  

Year Ended December 31,

  

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Income Statement Location

Derivatives designated as hedges

             

Interest rate swaps

 $35  $111  $85 

Interest and fees on loans

Derivatives not designated as hedges

             

Interest rate swaps

  90   217   235 

Interest and fees on loans

Total derivative expense

 $125  $328  $320  
v3.22.4
Note 12 - Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Net Funded Status [Table Text Block]
  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Beginning balance

 $11,458  $12,579 

Effect of curtailment

  —   289 

Service cost

  —   352 

Interest cost

  332   315 

Actuarial gain

  (1,718)  (1,472)

Benefits paid

  (584)  (605)

Ending balance

 $9,488  $11,458 
Schedule of Net Benefit Costs [Table Text Block]
  

Year Ended December 31,

  
  

2022

  

2021

  

2020

 

Income Statement Location

(Amounts in thousands)

             

Service cost

 $—  $352  $310 

Salaries and employee benefits

Interest cost

  332   315   355 

Other expense

Effect of curtailment

  —   289   — 

Salaries and employee benefits

Amortization of prior service cost

  —   124   201 

Other expense

Amortization of losses

  135   264   186 

Other expense

Net periodic cost

 $467  $1,344  $1,052  
              

Assumed discount rate

  4.96%  2.88%  2.53% 
Schedule of Expected Benefit Payments [Table Text Block]

(Amounts in thousands)

    

2023

 $697 

2024

  741 

2025

  736 

2026

  836 

2027

  816 

2028 through 2032

  3,496 
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]
  

Year Ended December 31,

 
  

2022

  

2021

  

2020

 

(Amounts in thousands)

            

Pre-tax compensation expense

 $718  $1,282  $1,643 

Excess tax (benefit) expense

  —   (633)  202 
Share-Based Payment Arrangement, Option, Activity [Table Text Block]

(Amounts in thousands, except share and per share data)

 

Option Shares

  

Weighted Average Exercise Price Per Share

  

Weighted Average Remaining Contractual Term (Years)

  

Aggregate Intrinsic Value

 
                 

Outstanding, January 1, 2022

  204,878  $29.35         

Granted

  —   —         

Exercised

  (7,575)  22.63         

Canceled/Expired

  —   —         

Outstanding, December 31, 2022

  197,303  $29.61   6.69  $847 

Exercisable, December 31, 2022

  109,833  $26.90   5.48  $769 
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]
  

Shares/Units

  

Weighted Average Grant-Date Fair Value

 
         

Nonvested, January 1, 2022

  45,656  $24.03 

Granted

  55,839   27.97 

Vested

  (27,414)  25.79 

Canceled

  (476)  22.89 

Nonvested, December 31, 2022

  73,605  $30.87 
v3.22.4
Note 13 - Other Operating Income and Expense (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Other Operating Cost and Expense, by Component [Table Text Block]
  

Year Ended December 31,

 

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Other operating income

            

Bank owned life insurance

 $961  $1,183  $814 

Net FDIC indemnification asset amortization

  -   (1,226) $(1,690)

Other(1)

  4,187   4,623   3,555 

Total other operating income

 $5,148  $4,580  $2,679 
             

Other operating expense

            

OREO expense and net loss

  557   330   414 

Telephone and data communications

  1,658   1,720   2,188 

Office supplies

  494   553   660 

Other(1)

  7,766   9,134   9,148 

Total other operating expense

 $10,475  $11,737  $12,410 
v3.22.4
Note 14 - Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
  

Year Ended December 31,

 

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Current tax expense:

            

Federal

 $9,883  $8,546  $10,048 

State

  1,648   1,563   1,643 

Total current tax expense

  11,531   10,109   11,691 
             

Deferred tax expense (benefit):

            

Federal

  1,800   4,677   (1,266)

State

  164   574   (239)

Total deferred tax expense (benefit)

  1,964   5,251   (1,505)

Total income tax expense

 $13,495  $15,360  $10,186 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
  

Year Ended December 31,

 
  

2022

  

2021

  

2020

 
  

Amount

  

Percent

  

Amount

  

Percent

  

Amount

  

Percent

 

(Amounts in thousands)

                        

Federal income tax at the statutory rate

 $12,633   21.00% $13,971   21.00% $9,683   21.00%

State income tax, net of federal benefit

  1,432   2.38%  2,076   3.12%  1,109   3.12%
   14,065   23.38%  16,047   24.12%  10,792   24.12%

Increase (decrease) resulting from:

                        

Tax-exempt interest income

  (347)  (0.58)%  (340)  (0.51)%  (500)  (1.08)%

Excess tax benefits

  (24)  (0.04)%  (133)  (0.20)%  42   0.09%

Bank owned life insurance

  (68)  (0.11)%  (225)  (0.34)%  (139)  (0.30)%

Other items, net

  (131)  (0.22)%  11   0.02%  (9)  (0.74)%

Income tax at the effective tax rate

 $13,495   22.43% $15,360   23.09% $10,186   22.09%
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
  

December 31,

 

(Amounts in thousands)

 

2022

  

2021

 

Deferred tax assets

        

Allowance for loan losses

 $7,283  $6,647 

Unrealized losses on available-for-sale securities

  4,153   — 

Unrealized asset losses

  503   482 

Purchase accounting

  148   455 

FDIC assisted transactions

  588   810 

Deferred loan fees

  2,074   2,350 

Deferred compensation assets

  5,035   5,634 

Federal net operating loss carryforward

  1,223   2,179 

Lease liability

  160   184 

Other

  707   472 

Total deferred tax assets

  21,874   19,213 
         

Deferred tax liabilities

        

Fixed assets

  (755)  (1,046)

Intangible assets

  (857)  (318)

Odd days interest deferral

  (4,010)  (3,324)

Unrealized gains on available for sale securities

  —   (4)

Right of use asset

  (155)  (177)

Other

  (197)  (192)

Total deferred tax liabilities

  (5,974)  (5,061)

Net deferred tax asset

 $15,900  $14,152 
v3.22.4
Note 15 - Accumulated Other Comprehensive Income (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
  

Unrealized Gains (Losses) on Available for-Sale Securities

  Employee Benefit Plans  

Total

 

(Amounts in thousands)

            

Balance January 1, 2020

 $866  $(2,372) $(1,506)

Other comprehensive (loss) income before reclassifications

  544   (961)  (417)

Reclassified from AOCI

  (304)  304   — 

Other comprehensive (loss) income, net

  240   (657)  (417)

Balance December 31, 2020

 $1,106  $(3,029) $(1,923)
             

Balance January 1, 2021

 $1,106  $(3,029) $(1,923)

Other comprehensive income (loss) before reclassifications

  (1,091)  1,160   69 

Reclassified from AOCI

  —   308   308 

Other comprehensive income (loss), net

  (1,091)  1,468   377 

Balance December 31, 2021

 $15  $(1,561) $(1,546)
             

Balance January 1, 2022

 $15  $(1,561) $(1,546)

Other comprehensive (loss) income before reclassifications

  (15,636)  1,357   (14,279)

Reclassified from AOCI

  —   106   106 

Other comprehensive (loss) income, net

  (15,636)  1,463   (14,173)

Balance December 31, 2022

 $(15,621) $(98) $(15,719)
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]
  

Year Ended December 31,

 

Income Statement

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Line Item Affected

Available-for-sale securities

             

(Losses) gains recognized

 $—  $—  $(385)

Net loss on sale of securities

Reclassified out of AOCI, before tax

  —   —   (385)

Income before income taxes

Income tax benefit

  —   —   81 

Income tax expense

Reclassified out of AOCI, net of tax

  —   —   (304)

Net income

Employee benefit plans

             

Amortization of prior service cost

  —   124   201 

Other operating expense

Amortization of net actuarial loss

  135   264   185 

Other operating expense

Reclassified out of AOCI, before tax

  135   388   386 

Income before income taxes

Income tax expense

  (29)  (80)  (82)

Income tax expense

Reclassified out of AOCI, net of tax

  106   308   304 

Net income

Total reclassified out of AOCI, net of tax

 $106  $308  $— 

Net income
v3.22.4
Note 16 - Fair Value (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
  

December 31, 2022

 
  

Total

  

Fair Value Measurements Using

 

(Amounts in thousands)

 

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Available-for-sale debt securities

                

U.S. Agency securities

 $1,485  $—  $1,485  $— 

U.S. Treasury securities

  157,264   —   157,264   — 

Municipal securities

  23,309   —   23,309   — 

Corporate Notes

  34,857   —   34,857   — 

Mortgage-backed Agency securities

  83,434   —   83,434   — 

Total available-for-sale debt securities

  300,349   —   300,349   — 

Equity securities

  55   —   55   — 

Fair value loans

  3,784   —   —   3,784 

Derivative assets

  199   —   199   — 

Deferred compensation assets

  5,142   5,142   —   — 

Deferred compensation liabilities

  5,142   5,142   —   — 

 

  

December 31, 2021

 
  

Total

  

Fair Value Measurements Using

 

(Amounts in thousands)

 

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Available-for-sale debt securities

                

U.S. Agency securities

 $466  $—  $466  $— 

Municipal securities

  28,794   —   28,794   — 

Corporate Notes

  9,919   —   9,919   — 

Mortgage-backed Agency securities

  37,113   —   37,113   — 

Total available-for-sale debt securities

  76,292   —   76,292   — 

Equity securities

  55   —   55   — 

Fair value loans

  13,106   —   —   13,106 

Deferred compensation assets

  5,245   5,245   —   — 

Deferred compensation liabilities

  5,245   5,245   —   — 

Derivative liabilities

  837   —   837   — 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
  

Assets

 

(Amounts in thousands)

    

Balance January 1, 2021

 $17,831 

Changes in fair value

  (303)

Changes due to principal reduction

  (4,422)

Balance December 31, 2021

 $13,106 
     

Balance January 1, 2022

 $13,106 

Change due to termination of interest rate swaps not qualifying as fair value hedges

  (8,489)

Changes in fair value

  (428)

Changes due to principal reduction

  (405)

Balance December 31, 2022

 $3,784 
Fair Value Measurements, Nonrecurring [Table Text Block]
  

December 31, 2022

 
  

Total

  

Fair Value Measurements Using

 
  

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

(Amounts in thousands)

                

Collateral dependent assets with specific reserves

 $574  $—  $—  $574 

OREO

  703   —   —   703 
  

December 31, 2021

 
  

Total

  

Fair Value Measurements Using

 
  

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

(Amounts in thousands)

                

Collateral dependent assets with specific reserves

 $2,312  $—  $—  $2,312 

OREO

  1,015   —   —   1,015 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
   

Discount Range

 
 

Valuation

Unobservable

(Weighted Average)

 
 

Technique

Input

December 31, 2022

 
       

Collateral dependent assets with specific reserves

Discounted appraisals(1)

Appraisal adjustments(2)

 

3% to 3%

3%

OREO

Discounted appraisals(1)

Appraisal adjustments(2)

 

20% to 100%

69%
   

Discount Range

 
 

Valuation

Unobservable

(Weighted Average)

 
 

Technique

Input

December 31, 2021

 
       

Collateral dependent assets with specific reserves

Discounted appraisals(1)

Appraisal adjustments(2)

 0% to 11%6%

OREO

Discounted appraisals(1)

Appraisal adjustments(2)

 0% to 87%32%
Fair Value, by Balance Sheet Grouping [Table Text Block]
  

December 31, 2022

 
  

Carrying

      

Fair Value Measurements Using

 

(Amounts in thousands)

 

Amount

  

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Assets

                    

Cash and cash equivalents

 $170,846  $170,846  $170,846  $—  $— 

Debt securities available for sale

  300,349   300,349   —   300,349   — 

Equity securities

  55   55   —   55   — 

Loans held for investment, net of allowance

  2,369,641   2,215,243   —   —   2,215,243 

Interest receivable

  9,279   9,279   —   9,279   — 

Deferred compensation assets

  5,142   5,142   5,142   —   — 

Derivative assets

  199   199   —   199   — 
                     

Liabilities

                    

Time deposits

  283,330   281,744   —   281,744   — 

Securities sold under agreements to repurchase

  1,874   1,874   —   1,874   — 

Interest payable

  159   159   —   159   — 

Deferred compensation liabilities

  5,142   5,142   5,142   —   — 
  

December 31, 2021

 
  

Carrying

      

Fair Value Measurements Using

 

(Amounts in thousands)

 

Amount

  

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

Assets

                    

Cash and cash equivalents

 $677,439  $677,439  $677,439  $—  $— 

Debt securities available for sale

  76,292   76,292   —   76,292   — 

Equity securities

  55   55   —   55   — 

Loans held for investment, net of allowance

  2,137,711   2,108,513   —   —   2,108,513 

Interest receivable

  7,900   7,900   —   7,900   — 

Deferred compensation assets

  5,245   5,245   5,245   —   — 
                     

Liabilities

                    

Time deposits

  354,863   352,000   —   352,000   — 

Securities sold under agreements to repurchase

  1,536   1,536   —   1,536   — 

Interest payable

  314   314   —   314   — 

Deferred compensation liabilities

  5,245   5,245   5,245   —   — 

Derivative liabilities

  837   837   —   837   — 
v3.22.4
Note 17 - Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
   

Year Ended December 31,

  
   

2022

    

2021

    

2020

  

(Amounts in thousands, except share and per share data)

                        

Net income

   $ 46,662     $ 51,168     $ 35,926  
                         

Weighted average common shares outstanding, basic

     16,519,848       17,335,615       17,781,748  

Dilutive effect of potential common shares

                        

Stock options

     18,784       30,854       22,495  

Restricted stock

     23,625       36,467       11,137  

Total dilutive effect of potential common shares

     42,409       67,321       33,632  

Weighted average common shares outstanding, diluted

     16,562,257       17,402,936       17,815,380  
                         

Basic earnings per common share

   $ 2.82     $ 2.95     $ 2.02  

Diluted earnings per common share

     2.82       2.94       2.02  
                         

Potential antidilutive common shares

                        

Stock options

     131,198       103,520       58,166  

Restricted stock

     —       630       26,900  

Total potential antidilutive shares

     131,198       104,150       85,066  
v3.22.4
Note 18 - Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Related Party Transactions [Table Text Block]
  

Year Ended December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Beginning balance

 $33,740  $20,166 

New loans and advances

  7,768   4,476 

Loan repayments

  (15,979)  (4,139)

Reclassifications(1)

  5,452   13,237 

Ending balance

 $30,981  $33,740 
v3.22.4
Note 19 - Litigation, Commitments, and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Fair Value, off-Balance-Sheet Risks [Table Text Block]
  

December 31,

 
  

2022

  

2021

 

(Amounts in thousands)

        

Commitments to extend credit

 $278,926  $272,447 

Standby letters of credit and financial guarantees(1)

  119,681   153,717 

Total off-balance sheet risk

  398,607   426,164 
         
         
v3.22.4
Note 20 - Regulatory Requirements and Restrictions (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]
  

December 31, 2022

 
  

Actual

  Minimum Basel III Requirement  Minimum Basel III Requirement - with CCB  Well Capitalized Requirement(1) 

(Amounts in thousands)

 

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

The Company

                                

Common equity Tier 1 ratio

 $303,963   13.37% $102,332   4.50% $159,183   7.00%  N/A   N/A 

Tier 1 risk-based capital ratio

  303,963   13.37%  136,443   6.00%  193,294   8.50%  N/A   N/A 

Total risk-based capital ratio

  332,430   14.62%  181,924   8.00%  238,775   10.50%  N/A   N/A 

Tier 1 Leverage ratio

  303,963   10.17%  119,499   4.00%  N/A   N/A   N/A   N/A 
                                 

The Bank

                                

Common equity Tier 1 ratio

 $264,185   11.69% $101,712   4.50% $158,218   7.00% $146,917   6.50%

Tier 1 risk-based capital ratio

  264,185   11.69%  135,616   6.00%  192,122   8.50%  180,821   8.00%

Total risk-based capital ratio

  292,481   12.94%  180,821   8.00%  237,327   10.50%  226,026   10.00%

Tier 1 Leverage ratio

  264,185   8.79%  120,248   4.00%  N/A   N/A   150,310   5.00%
  

December 31, 2021

 
  

Actual

  Minimum Basel III Requirement  Minimum Basel III Requirement - with CCB  Well Capitalized Requirement(1) 

(Amounts in thousands)

 

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

The Company

                                

Common equity Tier 1 ratio

 $294,207   14.39% $91,983   4.50% $143,084   7.00%  N/A   N/A 

Tier 1 risk-based capital ratio

  294,207   14.39%  122,644   6.00%  173,745   8.50%  N/A   N/A 

Total risk-based capital ratio

  319,795   15.65%  163,525   8.00%  214,626   10.50%  N/A   N/A 

Tier 1 Leverage ratio

  294,207   9.65%  121,892   4.00%  N/A   N/A   N/A   N/A 
                                 

The Bank

                                

Common equity Tier 1 ratio

 $271,806   13.37% $91,499   4.50% $142,332   7.00% $132,166   6.50%

Tier 1 risk-based capital ratio

  271,806   13.37%  121,999   6.00%  172,832   8.50%  162,666   8.00%

Total risk-based capital ratio

  297,261   14.62%  162,666   8.00%  213,499   10.50%  203,332   10.00%

Tier 1 Leverage ratio

  271,806   8.94%  121,623   4.00%  N/A   N/A   152,028   5.00%
v3.22.4
Note 21 - Parent Company Financial Information (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Condensed Balance Sheet [Table Text Block]
  

CONDENSED BALANCE SHEETS

 
  

December 31,

 

(Amounts in thousands)

 

2022

  

2021

 

Assets

        

Cash and due from banks

 $16,988  $7,728 

Securities available for sale

  17,313   9,919 

Investment in subsidiaries

  382,286   405,374 

Other assets

  5,910   5,522 

Total assets

 $422,497  $428,543 
         

Liabilities

        

Other liabilities

 $512  $768 

Total liabilities

  512   768 
         

Stockholders' equity

        

Common stock

  16,225   16,878 

Additional paid-in capital

  128,508   147,619 

Retained earnings

  292,971   264,824 

Accumulated other comprehensive loss

  (15,719)  (1,546)

Total stockholders' equity

  421,985   427,775 

Total liabilities and stockholders' equity

 $422,497  $428,543 
Condensed Income Statement [Table Text Block]
  

CONDENSED STATEMENTS OF INCOME

 
  

Year Ended December 31,

 
  

2022

  

2021

  

2020

 

(Amounts in thousands)

            

Cash dividends received from subsidiary bank

 $56,250  $53,200  $23,710 

Other income

  222   8   3 

Other operating expense

  1,052   1,086   1,446 

Income before income taxes and equity in undistributed net income of subsidiaries

  55,420   52,122   22,267 

Income tax benefit

  (224)  (351)  (375)

Income before equity in undistributed net income of subsidiaries

  55,644   52,473   22,642 

Equity in (dividends in excess) of undistributed net income of subsidiaries

  (8,982)  (1,305)  13,284 

Net income

 $46,662  $51,168  $35,926 
Condensed Cash Flow Statement [Table Text Block]
  

CONDENSED STATEMENTS OF CASH FLOWS

 
  

Year Ended December 31,

 

(Amounts in thousands)

 

2022

  

2021

  

2020

 

Operating activities

            

Net income

 $46,662  $51,168  $35,926 

Adjustments to reconcile net income to net cash provided by operating activities

            

Net change in other operating activities

  8,442   253   1,047 

Net cash provided by operating activities

  55,104   51,421   36,973 

Investing activities

            

Purchase of investment securities

  (19,372)  —   — 

Proceeds from maturities, calls, sales of investment securities

  11,807   (9,919)  — 

Dividends in excess of undistributed net income of subsidiaries

  —   1,305   (13,284)

Net cash provided by investing activities

  (7,565)  (8,614)  (13,284)

Financing activities

            

Proceeds from issuance of common stock

  172   —   — 

Payments for repurchase of common stock

  (21,311)  (28,882)  (21,872)

Payments of common dividends

  (18,515)  (18,059)  (17,876)

Net change in other financing activities

  1,375   1,773   2,150 
   (38,279)  (45,168)  (37,598)

Cash and cash equivalents increase (decrease)

  9,260   (2,361)  (13,909)

Cash and cash equivalents at carrying value at beginning of period

  7,728   10,089   23,998 

Cash and cash equivalents at carrying value at end of period

 $16,988  $7,728  $10,089 
v3.22.4
Note 23 - Quarterly Financial Data (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Quarterly Financial Information [Table Text Block]
  

Year Ended December 31, 2022

 
  

First

  

Second

  

Third

  

Fourth

 
  

Quarter

  

Quarter

  

Quarter

  

Quarter

 

(Amounts in thousands, except share and per share data)

                

Interest income

 $25,639  $27,970  $29,722  $30,988 

Interest expense

  486   423   380   367 

Net interest income

  25,153   27,547   29,342   30,621 

Provision for credit losses

  1,961   510   685   3,416 

Net interest income after provision

  23,192   27,037   28,657   27,205 

Noninterest income, excluding net loss on sale of securities

  9,194   8,854   9,950   9,184 

Noninterest expense

  19,986   21,255   21,145   20,730 

Income before income taxes

  12,400   14,636   17,462   15,659 

Income tax expense

  2,885   3,423   4,111   3,076 

Net income

 $9,515  $11,213  $13,351  $12,583 
                 

Basic earnings per common share

 $0.57  $0.67  $0.82  $0.78 

Diluted earnings per common share

  0.56   0.67   0.81   0.77 

Dividends per common share

  0.27   0.27   0.29   0.29 
                 

Weighted average basic shares outstanding

  16,817,284   16,662,817   16,378,022   16,229,289 

Weighted average diluted shares outstanding

  16,864,515   16,682,615   16,413,202   16,281,922 
  

Year Ended December 31, 2021

 
  

First

  

Second

  

Third

  

Fourth

 
  

Quarter

  

Quarter

  

Quarter

  

Quarter

 

(Amounts in thousands, except share and per share data)

                

Interest income

 $27,151  $26,538  $25,789  $25,832 

Interest expense

  869   724   643   600 

Net interest income

  26,282   25,814   25,146   25,232 

Recovery of credit losses

  (4,001)  (2,230)  (1,394)  (846)

Net interest income after provision

  30,283   28,044   26,540   26,078 

Noninterest income, excluding net loss on sale of securities

  7,569   8,797   8,720   9,215 

Noninterest expense

  18,820   19,361   18,836   21,701 

Income before income taxes

  19,032   17,480   16,424   13,592 

Income tax expense

  4,430   4,077   3,816   3,037 

Net income

 $14,602  $13,403  $12,608  $10,555 
                 

Basic earnings per common share

 $0.83  $0.77  $0.73  $0.62 

Diluted earnings per common share

  0.82   0.76   0.73   0.62 

Dividends per common share

  0.25   0.25   0.27   0.27 
                 

Weighted average basic shares outstanding

  17,669,937   17,486,182   17,221,244   16,974,005 

Weighted average diluted shares outstanding

  17,729,185   17,536,144   17,279,576   17,038,980 
v3.22.4
Note 1 - Basis of Presentation and Significant Accounting Policies (Details Textual)
 12 Months Ended
Jan. 01, 2021
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Number of Operating Segments   1    
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Total   $ 1,340,000    
Minimum Principal Balance of Loans for Quarterly Rating Review   500,000    
Restructured Loans, Reserves   $ 500,000    
Off-Balance-Sheet, Credit Loss, Liability, Ending Balance [1] $ 66,000      
Lessee, Operating Lease, Term of Contract (Year)   10 years    
Number of Reportable Segments   1    
Goodwill, Impairment Loss   $ 0    
Financing Receivable, Allowance for Credit Loss, Ending Balance 26,182,000 [2] 30,556,000 $ 27,858,000 [3] $ 26,182,000
Deferred Tax Assets, Net of Valuation Allowance, Total 17,493,000 [4] 21,874,000 19,213,000  
Retained Earnings (Accumulated Deficit), Ending Balance 237,585,000 [5] 292,971,000 264,824,000 [3]  
Other Assets, Total   $ 103,673,000 $ 106,691,000 [3]  
Effective Income Tax Rate Reconciliation, Percent, Total   22.43% 23.09% 22.09%
Financial Asset Acquired with Credit Deterioration [Member]        
Financing Receivable, Allowance for Credit Loss, Ending Balance $ 5,880,000      
Cumulative Effect, Period of Adoption, Adjustment [Member]        
Effective Income Tax Rate Reconciliation, Percent, Total 23.37%      
Accounting Standards Update 2016-13 [Member]        
Other Assets, Total $ 57,000      
Accounting Standards Update 2016-13 [Member] | Financial Asset Acquired with Credit Deterioration [Member]        
Financing Receivable, Allowance for Credit Loss, Ending Balance 57,000      
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]        
Off-Balance-Sheet, Credit Loss, Liability, Ending Balance [1] 509,000      
Financing Receivable, Allowance for Credit Loss, Ending Balance 13,107,000 [2]     $ 13,107,000
Deferred Tax Assets, Net of Valuation Allowance, Total [4] 1,813,000      
Retained Earnings (Accumulated Deficit), Ending Balance [5] $ (5,870,000)      
Furniture and Fixtures [Member] | Minimum [Member]        
Property, Plant and Equipment, Useful Life (Year)   5 years    
Furniture and Fixtures [Member] | Maximum [Member]        
Property, Plant and Equipment, Useful Life (Year)   10 years    
Equipment, Computer Hardware and Software [Member] | Minimum [Member]        
Property, Plant and Equipment, Useful Life (Year)   3 years    
Equipment, Computer Hardware and Software [Member] | Maximum [Member]        
Property, Plant and Equipment, Useful Life (Year)   5 years    
Building and Building Improvements [Member] | Minimum [Member]        
Property, Plant and Equipment, Useful Life (Year)   7 years    
Building and Building Improvements [Member] | Maximum [Member]        
Property, Plant and Equipment, Useful Life (Year)   40 years    
Land and Land Improvements [Member]        
Property, Plant and Equipment, Useful Life (Year)   20 years    
Other Assets [Member]        
Equity Securities without Readily Determinable Fair Value, Amount   $ 3,780,000 $ 3,850,000  
Other Liabilities [Member]        
Off-Balance-Sheet, Credit Loss, Liability, Ending Balance   1,200,000    
Investment in Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock [Member] | Other Assets [Member]        
Investment Owned, at Cost   $ 10,020,000.00 $ 9,780,000  
[1] Adjustment to the reserve for unfunded commitments related to the adoption of ASU 2016-13.
[2] Calculated adjustment to the ACL related to the adoption of ASU 2016-13. Includes additional reserve related to purchased deteriorated loans of $5.88 million.
[3] Derived from audited financial statements
[4] Effect of deferred tax assets related to the adjustment to the ACL form the adoption of ASU 2016-13 using a 23.37% tax rate.
[5] Net adjustment to retained earnings related to the adoption of ASU 2016-13.
v3.22.4
Note 1 - Basis of Presentation and Significant Accounting Policies - Impact of ASU 2016-13 (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2021
Dec. 31, 2020
Securities available for sale, fair value $ 300,349 $ 76,292 [1] $ 83,358 [2]  
Loans 2,400,197 2,165,569    
Allowance for credit losses on loans (30,556) (27,858) [1] (26,182) [3] $ (26,182)
Deferred Tax Assets, Net of Valuation Allowance, Total 21,874 19,213 17,493 [4]  
Accrued interest receivable - loans 9,279 7,900 [1] 9,052 [5]  
Allowance for credit losses on off-balance sheet credit exposures [6]     66  
Retained Earnings (Accumulated Deficit), Ending Balance $ 292,971 $ 264,824 [1] 237,585 [7]  
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member]        
Loans     2,146,972  
Financial Asset Acquired with Credit Deterioration [Member]        
Loans [5]     39,660  
Allowance for credit losses on loans     (5,880)  
Accounting Standards Update 2016-13 [Member] | Financial Asset Acquired with Credit Deterioration [Member]        
Allowance for credit losses on loans     (57)  
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]        
Securities available for sale, fair value [2]     83,358  
Allowance for credit losses on loans [3]     (39,289)  
Deferred Tax Assets, Net of Valuation Allowance, Total [4]     19,306  
Accrued interest receivable - loans [5]     9,109  
Allowance for credit losses on off-balance sheet credit exposures [6]     575  
Retained Earnings (Accumulated Deficit), Ending Balance [7]     231,714  
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member]        
Loans     2,146,972  
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Financial Asset Acquired with Credit Deterioration [Member]        
Loans [5]     45,535  
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]        
Securities available for sale, fair value [2]     0  
Allowance for credit losses on loans     (13,107) [3] $ (13,107)
Deferred Tax Assets, Net of Valuation Allowance, Total [4]     1,813  
Accrued interest receivable - loans [5]     57  
Allowance for credit losses on off-balance sheet credit exposures [6]     509  
Retained Earnings (Accumulated Deficit), Ending Balance [7]     (5,870)  
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member]        
Loans     0  
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Financial Asset Acquired with Credit Deterioration [Member]        
Loans [5]     $ 5,875  
[1] Derived from audited financial statements
[2] Per our analysis no ACL was necessary for investment securities available for sale.
[3] Calculated adjustment to the ACL related to the adoption of ASU 2016-13. Includes additional reserve related to purchased deteriorated loans of $5.88 million.
[4] Effect of deferred tax assets related to the adjustment to the ACL form the adoption of ASU 2016-13 using a 23.37% tax rate.
[5] Accrued interest receivable from acquired credit impaired loans of $57 thousand was reclassed to other assets and was offset by the reclass of the grossed up credit discount on acquired credit impaired loans of $57 thousand that was moved to the ACL for the purchased credit deteriorated loans.
[6] Adjustment to the reserve for unfunded commitments related to the adoption of ASU 2016-13.
[7] Net adjustment to retained earnings related to the adoption of ASU 2016-13.
v3.22.4
Note 2 - Acquisitions and Divestitures (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 16, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2023
Deposits, Total   $ 2,678,815 $ 2,729,391 [1]    
Interest-Bearing Domestic Deposit, Demand   679,609 676,254    
Interest-Bearing Domestic Deposit, Savings   578,974 561,576    
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal   1,658 0 $ 0  
Assets, Total   $ 3,135,572 $ 3,194,519 [1]    
Forecast [Member] | Minimum [Member]          
Assets, Total         $ 3,600,000
Disposal Group, Not Discontinued Operations [Member] | Emporia, Virginia Branch [Member] | Benchmark Community Bank [Member]          
Disposal Group, Proceeds From Real Estate and Property $ 1,500        
Deposits, Total 61,050        
Noninterest-Bearing Domestic Deposit, Demand 18,380        
Interest-Bearing Domestic Deposit, Demand 28,460        
Interest-Bearing Domestic Deposit, Savings 11,520        
Interest-Bearing Domestic Deposit, Time Deposits, Total 2,690        
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal $ 1,660        
[1] Derived from audited financial statements
v3.22.4
Note 3 - Debt Securities (Details Textual)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Number of Securities in Unrealized Loss Position   113 23
Percentage of Combined Depreciation of Combined Reported Value of Aggregate Securities Portfolio   6.59% 0.91%
Debt Securities, Available-for-Sale, Realized Gain $ 419    
Debt Securities, Available-for-Sale, Realized Loss $ 34    
Debt Securities, Available-for-Sale, Amortized Cost, Total   $ 320,123 $ 76,273
US Government Agencies Debt Securities [Member]      
Debt Securities, Available-for-Sale, Amortized Cost, Total   1,500 469
US Treasury Securities [Member]      
Debt Securities, Available-for-Sale, Amortized Cost, Total   161,617  
US States and Political Subdivisions Debt Securities [Member]      
Debt Securities, Available-for-Sale, Amortized Cost, Total   23,480 28,596
Corporate Debt Securities [Member]      
Debt Securities, Available-for-Sale, Amortized Cost, Total   37,046 9,935
Mortgage-backed Agency Securities [Member]      
Debt Securities, Available-for-Sale, Amortized Cost, Total   96,480 37,273
Asset Pledged as Collateral [Member]      
Debt Securities, Available-for-Sale, Amortized Cost, Total   $ 22,430 $ 22,150
v3.22.4
Note 3 - Debt Securities - Securities Available-for-sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2021
 [2]
Securities available for sale, amortized cost $ 320,123 $ 76,273  
Securities available for sale, unrealized gains 24 711  
Securities available for sale, unrealized losses (19,798) (692)  
Securities available for sale, fair value 300,349 76,292 [1] $ 83,358
US Government Agencies Debt Securities [Member]      
Securities available for sale, amortized cost 1,500 469  
Securities available for sale, unrealized gains 0 0  
Securities available for sale, unrealized losses (15) (3)  
Securities available for sale, fair value 1,485 466  
US Treasury Securities [Member]      
Securities available for sale, amortized cost 161,617    
Securities available for sale, unrealized gains 0    
Securities available for sale, unrealized losses (4,353)    
Securities available for sale, fair value 157,264    
US States and Political Subdivisions Debt Securities [Member]      
Securities available for sale, amortized cost 23,480 28,596  
Securities available for sale, unrealized gains 21 198  
Securities available for sale, unrealized losses (192) 0  
Securities available for sale, fair value 23,309 28,794  
Corporate Debt Securities [Member]      
Securities available for sale, amortized cost 37,046 9,935  
Securities available for sale, unrealized gains 0 0  
Securities available for sale, unrealized losses (2,189) (16)  
Securities available for sale, fair value 34,857 9,919  
Mortgage-backed Agency Securities [Member]      
Securities available for sale, amortized cost 96,480 37,273  
Securities available for sale, unrealized gains 3 513  
Securities available for sale, unrealized losses (13,049) (673)  
Securities available for sale, fair value $ 83,434 $ 37,113  
[1] Derived from audited financial statements
[2] Per our analysis no ACL was necessary for investment securities available for sale.
v3.22.4
Note 3 - Debt Securities - Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2021
 [2]
Securities available for sale, due within one year, amortized cost $ 45,093    
Securities available for sale, due after one year but within five years, amortized cost 175,766    
Securities available for sale, due after five years but within ten years, amortized cost 2,784    
Securities available for sale, due after ten years, amortized cost 0    
Securities available for sale, single maturity date, amortized cost 223,643    
Securities available for sale, no single maturity date, amortized cost 96,480    
Securities available for sale, amortized cost 320,123 $ 76,273  
Securities available for sale, due within one year, fair value 44,787    
Securities available for sale, due after one year but within five years, fair value 169,354    
Securities available for sale, due after five years but within ten years, fair value 2,774    
Securities available for sale, due after ten years, fair value 0    
Securities available for sale, single maturity date, fair value 216,915    
Securities available for sale, no single maturity date, fair value 83,434    
Securities available for sale 300,349 76,292 [1] $ 83,358
US Government Agencies Debt Securities [Member]      
Securities available for sale, due within one year, amortized cost 1,500    
Securities available for sale, due after one year but within five years, amortized cost 0    
Securities available for sale, due after five years but within ten years, amortized cost 0    
Securities available for sale, due after ten years, amortized cost 0    
Securities available for sale, single maturity date, amortized cost 1,500    
Securities available for sale, amortized cost 1,500 469  
Securities available for sale, due within one year, fair value 1,485    
Securities available for sale, due after one year but within five years, fair value 0    
Securities available for sale, due after five years but within ten years, fair value 0    
Securities available for sale, due after ten years, fair value 0    
Securities available for sale, single maturity date, fair value 1,485    
Securities available for sale 1,485 466  
US Treasury Securities [Member]      
Securities available for sale, due within one year, amortized cost 32,013    
Securities available for sale, due after one year but within five years, amortized cost 129,604    
Securities available for sale, due after five years but within ten years, amortized cost 0    
Securities available for sale, due after ten years, amortized cost 0    
Securities available for sale, single maturity date, amortized cost 161,617    
Securities available for sale, amortized cost 161,617    
Securities available for sale, due within one year, fair value 31,786    
Securities available for sale, due after one year but within five years, fair value 125,478    
Securities available for sale, due after five years but within ten years, fair value 0    
Securities available for sale, due after ten years, fair value 0    
Securities available for sale, single maturity date, fair value 157,264    
Securities available for sale 157,264    
US States and Political Subdivisions Debt Securities [Member]      
Securities available for sale, due within one year, amortized cost 3,070    
Securities available for sale, due after one year but within five years, amortized cost 17,626    
Securities available for sale, due after five years but within ten years, amortized cost 2,784    
Securities available for sale, due after ten years, amortized cost 0    
Securities available for sale, single maturity date, amortized cost 23,480    
Securities available for sale, amortized cost 23,480 28,596  
Securities available for sale, due within one year, fair value 3,068    
Securities available for sale, due after one year but within five years, fair value 17,467    
Securities available for sale, due after five years but within ten years, fair value 2,774    
Securities available for sale, due after ten years, fair value 0    
Securities available for sale, single maturity date, fair value 23,309    
Securities available for sale 23,309 28,794  
Corporate Debt Securities [Member]      
Securities available for sale, due within one year, amortized cost 8,510    
Securities available for sale, due after one year but within five years, amortized cost 28,536    
Securities available for sale, due after five years but within ten years, amortized cost 0    
Securities available for sale, due after ten years, amortized cost 0    
Securities available for sale, single maturity date, amortized cost 37,046    
Securities available for sale, amortized cost 37,046 9,935  
Securities available for sale, due within one year, fair value 8,448    
Securities available for sale, due after one year but within five years, fair value 26,409    
Securities available for sale, due after five years but within ten years, fair value 0    
Securities available for sale, due after ten years, fair value 0    
Securities available for sale, single maturity date, fair value 34,857    
Securities available for sale $ 34,857 $ 9,919  
[1] Derived from audited financial statements
[2] Per our analysis no ACL was necessary for investment securities available for sale.
v3.22.4
Note 3 - Debt Securities - Available For Sale Securities in Continuous Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Securities available for sale, less than 12 months, fair value $ 268,457 $ 24,011
Securities available for sale, less than 12 months, unrealized losses (15,556) (269)
Securities available for sale, 12 months or longer, fair value 20,794 8,843
Securities available for sale, 12 months or longer, unrealized losses (4,242) (423)
Securities available for sale, total fair value 289,251 32,854
Securities available for sale, total unrealized losses (19,798) (692)
US Government Agencies Debt Securities [Member]    
Securities available for sale, less than 12 months, fair value 1,485 0
Securities available for sale, less than 12 months, unrealized losses (15) 0
Securities available for sale, 12 months or longer, fair value 0 459
Securities available for sale, 12 months or longer, unrealized losses 0 (3)
Securities available for sale, total fair value 1,485 459
Securities available for sale, total unrealized losses (15) (3)
US Treasury Securities [Member]    
Securities available for sale, less than 12 months, fair value 157,264  
Securities available for sale, less than 12 months, unrealized losses (4,353)  
Securities available for sale, 12 months or longer, fair value 0  
Securities available for sale, 12 months or longer, unrealized losses 0  
Securities available for sale, total fair value 157,264  
Securities available for sale, total unrealized losses (4,353)  
US States and Political Subdivisions Debt Securities [Member]    
Securities available for sale, less than 12 months, fair value 12,347 0
Securities available for sale, less than 12 months, unrealized losses (192) 0
Securities available for sale, 12 months or longer, fair value 0 0
Securities available for sale, 12 months or longer, unrealized losses 0 0
Securities available for sale, total fair value 12,347 0
Securities available for sale, total unrealized losses (192) 0
Corporate Debt Securities [Member]    
Securities available for sale, less than 12 months, fair value 32,368 9,919
Securities available for sale, less than 12 months, unrealized losses (2,172) (16)
Securities available for sale, 12 months or longer, fair value 2,489 0
Securities available for sale, 12 months or longer, unrealized losses (17) 0
Securities available for sale, total fair value 34,857 9,919
Securities available for sale, total unrealized losses (2,189) (16)
Mortgage-backed Agency Securities [Member]    
Securities available for sale, less than 12 months, fair value 64,993 14,092
Securities available for sale, less than 12 months, unrealized losses (8,824) (253)
Securities available for sale, 12 months or longer, fair value 18,305 8,384
Securities available for sale, 12 months or longer, unrealized losses (4,225) (420)
Securities available for sale, total fair value 83,298 22,476
Securities available for sale, total unrealized losses $ (13,049) $ (673)
v3.22.4
Note 4 - Loans (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Bank Overdrafts $ 1,800 $ 1,650
Deferred Loan Fees 8,810 5,060
Financing Receivable, Unamortized Purchase Premium (Discount) (3,800) (5,410)
Financing Receivable, Accrued Interest, after Allowance for Credit Loss 7,940 7,540
Financing Receivable, before Allowance for Credit Loss, Total   2,165,569
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 150,428 112,988
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | SBA CARES Act Paycheck Protection Program [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 0 20,642
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount), Total 0 733
Amortization of Deferred Loan Origination Fees, Net $ 733 $ 2,740
v3.22.4
Note 4 - Loans - Loans by Class (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Non-covered loans $ 2,400,197 $ 2,165,569
Non-covered loans, percent 100.00% 100.00%
Commercial Portfolio Segment [Member]    
Non-covered loans $ 1,433,263 $ 1,230,476
Non-covered loans, percent 59.72% 56.82%
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member]    
Non-covered loans $ 117,174 $ 65,806
Non-covered loans, percent 4.88% 3.04%
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Non-covered loans $ 150,428 $ 133,630
Non-covered loans, percent 6.27% 6.17%
Commercial Portfolio Segment [Member] | Multi-family Residential [Member]    
Non-covered loans $ 148,026 $ 100,402
Non-covered loans, percent 6.17% 4.64%
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member]    
Non-covered loans $ 206,121 $ 198,778
Non-covered loans, percent 8.59% 9.18%
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member]    
Non-covered loans $ 787,703 $ 707,506
Non-covered loans, percent 32.82% 32.67%
Commercial Portfolio Segment [Member] | Agricultural [Member]    
Non-covered loans $ 12,032 $ 9,341
Non-covered loans, percent 0.50% 0.43%
Commercial Portfolio Segment [Member] | Farmland [Member]    
Non-covered loans $ 11,779 $ 15,013
Non-covered loans, percent 0.49% 0.69%
Consumer Real Estate Portfolio Segment [Member]    
Non-covered loans $ 820,548 $ 800,631
Non-covered loans, percent 34.19% 36.97%
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member]    
Non-covered loans $ 75,642 $ 79,857
Non-covered loans, percent 3.15% 3.69%
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member]    
Non-covered loans $ 734,540 $ 703,864
Non-covered loans, percent 30.61% 32.50%
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member]    
Non-covered loans $ 10,366 $ 16,910
Non-covered loans, percent 0.43% 0.78%
Consumer and Other Portfolio Segment [Member]    
Non-covered loans $ 146,386 $ 134,462
Non-covered loans, percent 6.09% 6.21%
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member]    
Non-covered loans $ 144,582 $ 129,794
Non-covered loans, percent 6.02% 5.99%
Consumer and Other Portfolio Segment [Member] | Other Loan [Member]    
Non-covered loans $ 1,804 $ 4,668
Non-covered loans, percent 0.07% 0.22%
v3.22.4
Note 5 - Credit Quality (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Nonaccrual, Interest Income $ 5 $ 72
Performing Status Returned Period (Month) 6 months  
Financing Receivable, Troubled Debt Restructuring, Subsequent Default $ 0 $ 0
v3.22.4
Note 5 - Credit Quality - Loans by Credit Quality (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Non-covered loans $ 2,400,197 $ 2,165,569
Originated in current year 636,803 574,234
Originated in one year prior 519,052 474,346
Originated in two years prior 391,570 172,629
Originated in three years prior 130,861 132,380
Originated in four years prior 96,385 120,130
Prior 524,791 577,745
Revolving 100,735 114,105
Total loan   2,165,569
Total loans held for investment, net of unearned income 2,400,197  
Pass [Member]    
Non-covered loans 2,319,331 2,060,694
Originated in current year 634,980 570,244
Originated in one year prior 512,743 467,596
Originated in two years prior 388,129 163,786
Originated in three years prior 123,998 123,718
Originated in four years prior 88,762 104,040
Prior 471,459 520,187
Revolving 99,260 111,123
Total loan   2,060,694
Total loans held for investment, net of unearned income 2,319,331  
Special Mention [Member]    
Non-covered loans 25,802 35,342
Originated in current year 227 1,060
Originated in one year prior 2,695 4,197
Originated in two years prior 977 2,373
Originated in three years prior 1,929 3,424
Originated in four years prior 3,471 9,360
Prior 16,086 14,220
Revolving 417 708
Total loan   35,342
Total loans held for investment, net of unearned income 25,802  
Substandard [Member]    
Non-covered loans 55,064 69,523
Originated in current year 1,596 2,930
Originated in one year prior 3,614 2,553
Originated in two years prior 2,464 6,470
Originated in three years prior 4,934 5,238
Originated in four years prior 4,152 6,730
Prior 37,246 43,328
Revolving 1,058 2,274
Total loan   69,523
Total loans held for investment, net of unearned income 55,064  
Doubtful [Member]    
Non-covered loans 0 10
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 10
Revolving 0 0
Total loan   10
Total loans held for investment, net of unearned income 0  
Unlikely to be Collected Financing Receivable [Member]    
Non-covered loans 0 0
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   0
Total loans held for investment, net of unearned income 0  
Commercial Portfolio Segment [Member]    
Non-covered loans 1,433,263 1,230,476
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member]    
Non-covered loans 117,174 65,806
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Non-covered loans 150,428 133,630
Commercial Portfolio Segment [Member] | Multi-family Residential [Member]    
Non-covered loans 148,026 100,402
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member]    
Non-covered loans 206,121 198,778
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member]    
Non-covered loans 787,703 707,506
Commercial Portfolio Segment [Member] | Agricultural [Member]    
Non-covered loans 12,032 9,341
Commercial Portfolio Segment [Member] | Farmland [Member]    
Non-covered loans 11,779 15,013
Commercial Portfolio Segment [Member] | Pass [Member] | Construction, Development and Other Land [Member]    
Non-covered loans 115,972 64,498
Commercial Portfolio Segment [Member] | Pass [Member] | Commercial and Industrial [Member]    
Non-covered loans 147,543 128,770
Commercial Portfolio Segment [Member] | Pass [Member] | Multi-family Residential [Member]    
Non-covered loans 143,859 98,457
Commercial Portfolio Segment [Member] | Pass [Member] | Single Family Non-owner Occupied [Member]    
Non-covered loans 195,775 186,184
Commercial Portfolio Segment [Member] | Pass [Member] | Non-farm, Non-residential [Member]    
Non-covered loans 761,154 665,559
Commercial Portfolio Segment [Member] | Pass [Member] | Agricultural [Member]    
Non-covered loans 11,722 8,758
Commercial Portfolio Segment [Member] | Pass [Member] | Farmland [Member]    
Non-covered loans 9,868 11,939
Commercial Portfolio Segment [Member] | Special Mention [Member] | Construction, Development and Other Land [Member]    
Non-covered loans 853 451
Commercial Portfolio Segment [Member] | Special Mention [Member] | Commercial and Industrial [Member]    
Non-covered loans 920 1,005
Commercial Portfolio Segment [Member] | Special Mention [Member] | Multi-family Residential [Member]    
Non-covered loans 3,946 1,090
Commercial Portfolio Segment [Member] | Special Mention [Member] | Single Family Non-owner Occupied [Member]    
Non-covered loans 2,303 3,607
Commercial Portfolio Segment [Member] | Special Mention [Member] | Non-farm, Non-residential [Member]    
Non-covered loans 14,903 25,624
Commercial Portfolio Segment [Member] | Special Mention [Member] | Agricultural [Member]    
Non-covered loans 47 70
Commercial Portfolio Segment [Member] | Special Mention [Member] | Farmland [Member]    
Non-covered loans 573 633
Commercial Portfolio Segment [Member] | Substandard [Member] | Construction, Development and Other Land [Member]    
Non-covered loans 349 857
Commercial Portfolio Segment [Member] | Substandard [Member] | Commercial and Industrial [Member]    
Non-covered loans 1,965 3,855
Commercial Portfolio Segment [Member] | Substandard [Member] | Multi-family Residential [Member]    
Non-covered loans 221 855
Commercial Portfolio Segment [Member] | Substandard [Member] | Single Family Non-owner Occupied [Member]    
Non-covered loans 8,043 8,977
Commercial Portfolio Segment [Member] | Substandard [Member] | Non-farm, Non-residential [Member]    
Non-covered loans 11,646 16,323
Commercial Portfolio Segment [Member] | Substandard [Member] | Agricultural [Member]    
Non-covered loans 263 513
Commercial Portfolio Segment [Member] | Substandard [Member] | Farmland [Member]    
Non-covered loans 1,338 2,441
Commercial Portfolio Segment [Member] | Doubtful [Member] | Construction, Development and Other Land [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Commercial and Industrial [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Multi-family Residential [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Single Family Non-owner Occupied [Member]    
Non-covered loans 0 10
Commercial Portfolio Segment [Member] | Doubtful [Member] | Non-farm, Non-residential [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Agricultural [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Farmland [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Construction, Development and Other Land [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Commercial and Industrial [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Multi-family Residential [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Single Family Non-owner Occupied [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Non-farm, Non-residential [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Agricultural [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Farmland [Member]    
Non-covered loans 0 0
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member]    
Non-covered loans 117,174 65,806
Originated in current year 58,770 40,207
Originated in one year prior 40,220 10,393
Originated in two years prior 4,869 3,209
Originated in three years prior 3,121 3,843
Originated in four years prior 2,590 1,599
Prior 6,142 6,165
Revolving 1,462 390
Total loan 117,174 65,806
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Pass [Member]    
Originated in current year 58,770 40,207
Originated in one year prior 39,995 10,127
Originated in two years prior 4,602 3,081
Originated in three years prior 3,050 3,704
Originated in four years prior 2,485 1,308
Prior 5,608 5,717
Revolving 1,462 354
Total loan 115,972 64,498
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Special Mention [Member]    
Originated in current year 0 0
Originated in one year prior 225 266
Originated in two years prior 0 0
Originated in three years prior 0 128
Originated in four years prior 94 0
Prior 534 21
Revolving 0 36
Total loan 853 451
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Substandard [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 267 128
Originated in three years prior 71 11
Originated in four years prior 11 291
Prior 0 427
Revolving 0 0
Total loan 349 857
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Doubtful [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Non-covered loans 150,428 133,630
Originated in current year 70,035 34,755
Originated in one year prior 23,878 19,302
Originated in two years prior 12,182 14,982
Originated in three years prior 8,716 14,348
Originated in four years prior 9,498 5,687
Prior 9,688 6,756
Revolving 16,431 17,158
Total loan 150,428 112,988
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | SBA CARES Act Paycheck Protection Program [Member]    
Originated in current year   16,482
Originated in one year prior   4,160
Originated in two years prior   0
Originated in three years prior   0
Originated in four years prior   0
Prior   0
Revolving   0
Total loan 0 20,642
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Pass [Member]    
Originated in current year 69,678 34,539
Originated in one year prior 23,746 18,887
Originated in two years prior 12,047 13,679
Originated in three years prior 7,729 13,772
Originated in four years prior 9,121 4,817
Prior 8,890 5,890
Revolving 16,332 16,544
Total loan 147,543 108,128
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Pass [Member] | SBA CARES Act Paycheck Protection Program [Member]    
Originated in current year 45,261 16,482
Originated in one year prior 20,881 4,160
Originated in two years prior 31,087 0
Originated in three years prior 3,733 0
Originated in four years prior 1,328 0
Prior 41,063 0
Revolving 506 0
Total loan 143,859 20,642
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Special Mention [Member]    
Originated in current year 227 32
Originated in one year prior 20 60
Originated in two years prior 21 597
Originated in three years prior 367 192
Originated in four years prior 185 28
Prior 1 0
Revolving 99 96
Total loan 920 1,005
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Special Mention [Member] | SBA CARES Act Paycheck Protection Program [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 3,946 0
Revolving 0 0
Total loan 3,946 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Substandard [Member]    
Originated in current year 130 184
Originated in one year prior 112 355
Originated in two years prior 114 706
Originated in three years prior 620 384
Originated in four years prior 192 842
Prior 797 866
Revolving 0 518
Total loan 1,965 3,855
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Substandard [Member] | SBA CARES Act Paycheck Protection Program [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 221 0
Revolving 0 0
Total loan 221 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Doubtful [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Doubtful [Member] | SBA CARES Act Paycheck Protection Program [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Unlikely to be Collected Financing Receivable [Member] | SBA CARES Act Paycheck Protection Program [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Multi-family Residential [Member]    
Non-covered loans 148,026 100,402
Originated in current year 45,261 11,307
Originated in one year prior 20,881 24,299
Originated in two years prior 31,087 4,644
Originated in three years prior 3,733 1,897
Originated in four years prior 1,328 8,413
Prior 45,230 48,907
Revolving 506 935
Total loan 148,026 100,402
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Pass [Member]    
Originated in current year 218,595 11,307
Originated in one year prior 145,675 24,299
Originated in two years prior 114,840 4,644
Originated in three years prior 52,575 1,897
Originated in four years prior 35,564 8,413
Prior 185,448 46,962
Revolving 8,457 935
Total loan 761,154 98,457
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Special Mention [Member]    
Originated in current year 0 0
Originated in one year prior 1,927 0
Originated in two years prior 852 0
Originated in three years prior 1,193 0
Originated in four years prior 2,708 0
Prior 8,076 1,090
Revolving 147 0
Total loan 14,903 1,090
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Substandard [Member]    
Originated in current year 0 0
Originated in one year prior 1,267 0
Originated in two years prior 675 0
Originated in three years prior 2,509 0
Originated in four years prior 1,531 0
Prior 5,664 855
Revolving 0 0
Total loan 11,646 855
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Doubtful [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member]    
Non-covered loans 787,703 707,506
Originated in current year 218,595 149,536
Originated in one year prior 148,869 150,426
Originated in two years prior 116,367 65,982
Originated in three years prior 56,277 56,069
Originated in four years prior 39,803 56,198
Prior 199,188 214,900
Revolving 8,604 14,395
Total loan 787,703 707,506
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Pass [Member]    
Originated in current year 6,244 147,978
Originated in one year prior 3,225 146,381
Originated in two years prior 1,003 62,651
Originated in three years prior 376 50,943
Originated in four years prior 154 43,776
Prior 214 199,812
Revolving 506 14,018
Total loan 11,722 665,559
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Special Mention [Member]    
Originated in current year 0 397
Originated in one year prior 33 3,334
Originated in two years prior 14 823
Originated in three years prior 0 2,595
Originated in four years prior 0 9,190
Prior 0 9,135
Revolving 0 150
Total loan 47 25,624
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Substandard [Member]    
Originated in current year 124 1,161
Originated in one year prior 37 711
Originated in two years prior 1 2,508
Originated in three years prior 66 2,531
Originated in four years prior 24 3,232
Prior 11 5,953
Revolving 0 227
Total loan 263 16,323
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Doubtful [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Agricultural [Member]    
Non-covered loans 12,032 9,341
Originated in current year 6,368 4,651
Originated in one year prior 3,295 1,586
Originated in two years prior 1,018 1,280
Originated in three years prior 442 573
Originated in four years prior 178 363
Prior 225 455
Revolving 506 433
Total loan 12,032 9,341
Commercial Portfolio Segment [Member] | Agricultural [Member] | Pass [Member]    
Originated in current year 646 4,564
Originated in one year prior 713 1,548
Originated in two years prior 796 998
Originated in three years prior 77 534
Originated in four years prior 869 346
Prior 6,150 335
Revolving 617 433
Total loan 9,868 8,758
Commercial Portfolio Segment [Member] | Agricultural [Member] | Special Mention [Member]    
Originated in current year 0 43
Originated in one year prior 109 27
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 222 0
Prior 242 0
Revolving 0 0
Total loan 573 70
Commercial Portfolio Segment [Member] | Agricultural [Member] | Substandard [Member]    
Originated in current year 0 44
Originated in one year prior 0 11
Originated in two years prior 12 282
Originated in three years prior 0 39
Originated in four years prior 253 17
Prior 1,073 120
Revolving 0 0
Total loan 1,338 513
Commercial Portfolio Segment [Member] | Agricultural [Member] | Doubtful [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Agricultural [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan 0 0
Commercial Portfolio Segment [Member] | Farmland [Member]    
Non-covered loans 11,779 15,013
Originated in current year 646 617
Originated in one year prior 822 1,061
Originated in two years prior 808 601
Originated in three years prior 77 1,614
Originated in four years prior 1,344 1,156
Prior 7,465 8,429
Revolving 617 1,535
Total loan 11,779 15,013
Commercial Portfolio Segment [Member] | Farmland [Member] | Pass [Member]    
Originated in current year   428
Originated in one year prior   1,047
Originated in two years prior   82
Originated in three years prior   1,125
Originated in four years prior   887
Prior   6,835
Revolving   1,535
Total loan   11,939
Commercial Portfolio Segment [Member] | Farmland [Member] | Special Mention [Member]    
Originated in current year   189
Originated in one year prior   0
Originated in two years prior   0
Originated in three years prior   240
Originated in four years prior   5
Prior   199
Revolving   0
Total loan   633
Commercial Portfolio Segment [Member] | Farmland [Member] | Substandard [Member]    
Originated in current year   0
Originated in one year prior   14
Originated in two years prior   519
Originated in three years prior   249
Originated in four years prior   264
Prior   1,395
Revolving   0
Total loan   2,441
Commercial Portfolio Segment [Member] | Farmland [Member] | Doubtful [Member]    
Originated in current year   0
Originated in one year prior   0
Originated in two years prior   0
Originated in three years prior   0
Originated in four years prior   0
Prior   0
Revolving   0
Total loan   0
Commercial Portfolio Segment [Member] | Farmland [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year   0
Originated in one year prior   0
Originated in two years prior   0
Originated in three years prior   0
Originated in four years prior   0
Prior   0
Revolving   0
Total loan   0
Consumer Real Estate Portfolio Segment [Member]    
Non-covered loans 820,548 800,631
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member]    
Non-covered loans 75,642 79,857
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member]    
Non-covered loans 734,540 703,864
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member]    
Non-covered loans 10,366 16,910
Consumer Real Estate Portfolio Segment [Member] | Pass [Member] | Home Equity Lines [Member]    
Non-covered loans 72,927 76,259
Consumer Real Estate Portfolio Segment [Member] | Pass [Member] | Single Family Owner Occupied [Member]    
Non-covered loans 706,952 671,459
Consumer Real Estate Portfolio Segment [Member] | Pass [Member] | Owner Occupied Construction [Member]    
Non-covered loans 10,204 16,629
Consumer Real Estate Portfolio Segment [Member] | Special Mention [Member] | Home Equity Lines [Member]    
Non-covered loans 288 426
Consumer Real Estate Portfolio Segment [Member] | Special Mention [Member] | Single Family Owner Occupied [Member]    
Non-covered loans 1,958 2,420
Consumer Real Estate Portfolio Segment [Member] | Special Mention [Member] | Owner Occupied Construction [Member]    
Non-covered loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Substandard [Member] | Home Equity Lines [Member]    
Non-covered loans 2,427 3,172
Consumer Real Estate Portfolio Segment [Member] | Substandard [Member] | Single Family Owner Occupied [Member]    
Non-covered loans 25,630 29,985
Consumer Real Estate Portfolio Segment [Member] | Substandard [Member] | Owner Occupied Construction [Member]    
Non-covered loans 162 281
Consumer Real Estate Portfolio Segment [Member] | Doubtful [Member] | Home Equity Lines [Member]    
Non-covered loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Doubtful [Member] | Single Family Owner Occupied [Member]    
Non-covered loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Doubtful [Member] | Owner Occupied Construction [Member]    
Non-covered loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Home Equity Lines [Member]    
Non-covered loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Single Family Owner Occupied [Member]    
Non-covered loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Owner Occupied Construction [Member]    
Non-covered loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member]    
Non-covered loans 75,642 79,857
Originated in current year 1,960 115
Originated in one year prior 198 59
Originated in two years prior 268 28
Originated in three years prior 35 274
Originated in four years prior 138 130
Prior 8,799 3,484
Revolving 64,244 75,767
Total loan   79,857
Total loans held for investment, net of unearned income 75,642  
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Pass [Member]    
Originated in current year 1,960 115
Originated in one year prior 198 59
Originated in two years prior 241 0
Originated in three years prior 0 25
Originated in four years prior 24 2
Prior 7,429 2,168
Revolving 63,075 73,890
Total loan   76,259
Total loans held for investment, net of unearned income 72,927  
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Special Mention [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 117 0
Revolving 171 426
Total loan   426
Total loans held for investment, net of unearned income 288  
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Substandard [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 27 28
Originated in three years prior 35 249
Originated in four years prior 114 128
Prior 1,253 1,316
Revolving 998 1,451
Total loan   3,172
Total loans held for investment, net of unearned income 2,427  
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Doubtful [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   0
Total loans held for investment, net of unearned income 0  
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   0
Total loans held for investment, net of unearned income 0  
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member]    
Non-covered loans 734,540 703,864
Originated in current year 158,351 241,529
Originated in one year prior 238,935 226,603
Originated in two years prior 208,310 64,337
Originated in three years prior 50,375 48,653
Originated in four years prior 38,931 43,772
Prior 245,386 276,559
Revolving 373 1,189
Total loan   902,642
Total loans held for investment, net of unearned income 940,661  
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Pass [Member]    
Originated in current year 157,890 239,917
Originated in one year prior 237,363 225,294
Originated in two years prior 207,480 61,925
Originated in three years prior 48,795 46,716
Originated in four years prior 36,678 41,757
Prior 214,148 240,845
Revolving 373 1,189
Total loan   857,643
Total loans held for investment, net of unearned income 902,727  
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Special Mention [Member]    
Originated in current year 0 399
Originated in one year prior 376 510
Originated in two years prior 90 937
Originated in three years prior 363 269
Originated in four years prior 262 137
Prior 3,170 3,775
Revolving 0 0
Total loan   6,027
Total loans held for investment, net of unearned income 4,261  
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Substandard [Member]    
Originated in current year 461 1,213
Originated in one year prior 1,196 799
Originated in two years prior 740 1,475
Originated in three years prior 1,217 1,668
Originated in four years prior 1,991 1,878
Prior 28,068 31,929
Revolving 0 0
Total loan   38,962
Total loans held for investment, net of unearned income 33,673  
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Doubtful [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 10
Revolving 0 0
Total loan   10
Total loans held for investment, net of unearned income 0  
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   0
Total loans held for investment, net of unearned income 0  
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member]    
Non-covered loans 10,366 16,910
Originated in current year 6,357 9,689
Originated in one year prior 3,344 4,729
Originated in two years prior 162 178
Originated in three years prior 23 22
Originated in four years prior 11 428
Prior 469 1,864
Revolving 0 0
Total loan   16,910
Total loans held for investment, net of unearned income 10,366  
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Pass [Member]    
Originated in current year 6,357 9,689
Originated in one year prior 3,344 4,729
Originated in two years prior 0 178
Originated in three years prior 23 22
Originated in four years prior 11 428
Prior 469 1,583
Revolving 0 0
Total loan   16,629
Total loans held for investment, net of unearned income 10,204  
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Special Mention [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   0
Total loans held for investment, net of unearned income 0  
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Substandard [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 162 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 281
Revolving 0 0
Total loan   281
Total loans held for investment, net of unearned income 162  
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Doubtful [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   0
Total loans held for investment, net of unearned income 0  
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   0
Total loans held for investment, net of unearned income 0  
Consumer and Other Portfolio Segment [Member]    
Non-covered loans 146,386 134,462
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member]    
Non-covered loans 144,582 129,794
Consumer and Other Portfolio Segment [Member] | Other Loan [Member]    
Non-covered loans 1,804 4,668
Consumer and Other Portfolio Segment [Member] | Pass [Member] | Consumer Loans [Member]    
Non-covered loans 141,551 127,514
Consumer and Other Portfolio Segment [Member] | Pass [Member] | Other Loan [Member]    
Non-covered loans 1,804 4,668
Consumer and Other Portfolio Segment [Member] | Special Mention [Member] | Consumer Loans [Member]    
Non-covered loans 11 16
Consumer and Other Portfolio Segment [Member] | Special Mention [Member] | Other Loan [Member]    
Non-covered loans 0 0
Consumer and Other Portfolio Segment [Member] | Substandard [Member] | Consumer Loans [Member]    
Non-covered loans 3,020 2,264
Consumer and Other Portfolio Segment [Member] | Substandard [Member] | Other Loan [Member]    
Non-covered loans 0 0
Consumer and Other Portfolio Segment [Member] | Doubtful [Member] | Consumer Loans [Member]    
Non-covered loans 0 0
Consumer and Other Portfolio Segment [Member] | Doubtful [Member] | Other Loan [Member]    
Non-covered loans 0 0
Consumer and Other Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Consumer Loans [Member]    
Non-covered loans 0 0
Consumer and Other Portfolio Segment [Member] | Unlikely to be Collected Financing Receivable [Member] | Other Loan [Member]    
Non-covered loans 0 0
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member]    
Non-covered loans 144,582 129,794
Originated in current year 70,460 65,346
Originated in one year prior 38,610 31,728
Originated in two years prior 16,499 17,388
Originated in three years prior 8,062 5,087
Originated in four years prior 2,564 2,384
Prior 2,199 10,226
Revolving 7,992 2,303
Total loan   134,462
Total loans held for investment, net of unearned income 146,386  
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Pass [Member]    
Originated in current year 69,579 65,018
Originated in one year prior 37,603 31,065
Originated in two years prior 16,033 16,548
Originated in three years prior 7,640 4,980
Originated in four years prior 2,528 2,306
Prior 2,040 10,040
Revolving 7,932 2,225
Total loan   132,182
Total loans held for investment, net of unearned income 143,355  
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Special Mention [Member]    
Originated in current year 0 0
Originated in one year prior 5 0
Originated in two years prior 0 16
Originated in three years prior 6 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   16
Total loans held for investment, net of unearned income 11  
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Substandard [Member]    
Originated in current year 881 328
Originated in one year prior 1,002 663
Originated in two years prior 466 824
Originated in three years prior 416 107
Originated in four years prior 36 78
Prior 159 186
Revolving 60 78
Total loan   2,264
Total loans held for investment, net of unearned income 3,020  
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Doubtful [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   0
Total loans held for investment, net of unearned income 0  
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Unlikely to be Collected Financing Receivable [Member]    
Originated in current year 0 0
Originated in one year prior 0 0
Originated in two years prior 0 0
Originated in three years prior 0 0
Originated in four years prior 0 0
Prior 0 0
Revolving 0 0
Total loan   $ 0
Total loans held for investment, net of unearned income $ 0  
v3.22.4
Note 5 - Credit Quality - Nonaccrual Loans by Loan Class (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Total nonaccrual loans $ 15,208 $ 20,768
Loans With No Allowance [Member]    
Total nonaccrual loans 14,619 19,668
Loans With an Allowance [Member]    
Total nonaccrual loans 589 1,100
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member]    
Total nonaccrual loans 31 409
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 31 409
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 0 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Total nonaccrual loans 438 1,734
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 438 1,734
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 0 0
Commercial Portfolio Segment [Member] | Multi-family Residential [Member]    
Total nonaccrual loans 220 208
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 220 208
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 0 0
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member]    
Total nonaccrual loans 984 2,304
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 984 2,304
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 0 0
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member]    
Total nonaccrual loans 1,771 4,539
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 1,771 3,439
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 0 1,100
Commercial Portfolio Segment [Member] | Agricultural [Member]    
Total nonaccrual loans 9 136
Commercial Portfolio Segment [Member] | Agricultural [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 9 136
Commercial Portfolio Segment [Member] | Agricultural [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 0 0
Commercial Portfolio Segment [Member] | Farmland [Member]    
Total nonaccrual loans 133 222
Commercial Portfolio Segment [Member] | Farmland [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 133 222
Commercial Portfolio Segment [Member] | Farmland [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member]    
Total nonaccrual loans 400 767
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 400 767
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member]    
Total nonaccrual loans 8,817 8,957
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 8,228 8,957
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 589 0
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member]    
Total nonaccrual loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 0 0
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans 0 0
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member]    
Total nonaccrual loans 2,405 1,492
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Loans With No Allowance [Member]    
Total nonaccrual loans 2,405 1,492
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Loans With an Allowance [Member]    
Total nonaccrual loans $ 0 $ 0
v3.22.4
Note 5 - Credit Quality - Aging of Past Due Loans by Loan Class (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Non-covered $ 2,400,197 $ 2,165,569
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered   0
Amortized Cost of > 90 Days Accruing No Allowance, Total 0  
Financial Asset, 30 to 59 Days Past Due [Member]    
Non-covered 13,573 11,434
Financial Asset, 60 to 89 Days Past Due [Member]    
Non-covered 4,843 5,220
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Non-covered 6,199 10,227
Financial Asset, Past Due [Member]    
Non-covered 24,615 26,881
Financial Asset, Not Past Due [Member]    
Non-covered 2,375,582 2,138,688
Commercial Portfolio Segment [Member]    
Non-covered 1,433,263 1,230,476
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member]    
Non-covered 117,174 65,806
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 393 52
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 8 0
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 23 120
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 424 172
Commercial Portfolio Segment [Member] | Construction, Development and Other Land [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 116,750 65,634
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Non-covered 150,428 133,630
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 756 325
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 129 35
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 217 1,394
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 1,102 1,754
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 149,326 131,876
Commercial Portfolio Segment [Member] | Multi-family Residential [Member]    
Non-covered 148,026 100,402
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 97
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 0
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 83 0
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 83 97
Commercial Portfolio Segment [Member] | Multi-family Residential [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 147,943 100,305
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member]    
Non-covered 206,121 198,778
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 990 1,210
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 122 583
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 299 795
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 1,411 2,588
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 204,710 196,190
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member]    
Non-covered 787,703 707,506
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 646 1,002
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 52 441
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 548 2,333
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 1,246 3,776
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 786,457 703,730
Commercial Portfolio Segment [Member] | Agricultural [Member]    
Non-covered 12,032 9,341
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Commercial Portfolio Segment [Member] | Agricultural [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 36 73
Commercial Portfolio Segment [Member] | Agricultural [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 135 7
Commercial Portfolio Segment [Member] | Agricultural [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 9 101
Commercial Portfolio Segment [Member] | Agricultural [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 180 181
Commercial Portfolio Segment [Member] | Agricultural [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 11,852 9,160
Commercial Portfolio Segment [Member] | Farmland [Member]    
Non-covered 11,779 15,013
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Commercial Portfolio Segment [Member] | Farmland [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 52
Commercial Portfolio Segment [Member] | Farmland [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 0
Commercial Portfolio Segment [Member] | Farmland [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 133 222
Commercial Portfolio Segment [Member] | Farmland [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 133 274
Commercial Portfolio Segment [Member] | Farmland [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 11,646 14,739
Consumer Real Estate Portfolio Segment [Member]    
Non-covered 820,548 800,631
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member]    
Non-covered 75,642 79,857
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 519 275
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 115 388
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 262 333
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 896 996
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 74,746 78,861
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member]    
Non-covered 734,540 703,864
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 5,951 4,740
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 2,322 2,584
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 3,166 3,880
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 11,439 11,204
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 723,101 692,660
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member]    
Non-covered 10,366 16,910
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 139
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 0
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 0
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 139
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 10,366 16,771
Consumer and Other Portfolio Segment [Member]    
Non-covered 146,386 134,462
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member]    
Non-covered 144,582 129,794
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 4,282 3,469
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 1,960 1,182
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 1,459 1,049
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 7,701 5,700
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered 136,881 124,094
Consumer and Other Portfolio Segment [Member] | Other Loan [Member]    
Non-covered 1,804 4,668
Amortized Cost of > 90 Days Accruing No Allowance, Non-covered 0 0
Consumer and Other Portfolio Segment [Member] | Other Loan [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 0
Consumer and Other Portfolio Segment [Member] | Other Loan [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 0
Consumer and Other Portfolio Segment [Member] | Other Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 0
Consumer and Other Portfolio Segment [Member] | Other Loan [Member] | Financial Asset, Past Due [Member] | Non-covered Loans [Member]    
Non-covered 0 0
Consumer and Other Portfolio Segment [Member] | Other Loan [Member] | Financial Asset, Not Past Due [Member] | Non-covered Loans [Member]    
Non-covered $ 1,804 $ 4,668
v3.22.4
Note 5 - Credit Quality - Collateral Dependent Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Collateral dependent loans $ 589 $ 2,216
Collateral coverage $ 574 $ 2,312
Collateral coverage percentage 97.45% 104.33%
Commercial Real Estate, Hotel 1 [Member]    
Collateral dependent loans $ 0 $ 0
Collateral coverage $ 0 $ 0
Collateral coverage percentage 0.00% 0.00%
Commercial Real Estate, Office [Member]    
Collateral dependent loans $ 0 $ 0
Collateral coverage $ 0 $ 0
Collateral coverage percentage 0.00% 0.00%
Commercial Real Estate, Other [Member]    
Collateral dependent loans $ 0 $ 2,216
Collateral coverage $ 0 $ 2,312
Collateral coverage percentage 0.00% 104.33%
Commercial Real Estate, Retail [Member]    
Collateral dependent loans $ 0 $ 0
Collateral coverage $ 0 $ 0
Collateral coverage percentage 0.00% 0.00%
Multi-family, Industrial [Member]    
Collateral dependent loans $ 0 $ 0
Collateral coverage $ 0 $ 0
Collateral coverage percentage 0.00% 0.00%
Multi-family, Office [Member]    
Collateral dependent loans $ 0 $ 0
Collateral coverage $ 0 $ 0
Collateral coverage percentage 0.00% 0.00%
Multi-family, Other [Member]    
Collateral dependent loans $ 0 $ 0
Collateral coverage $ 0 $ 0
Collateral coverage percentage 0.00% 0.00%
Commercial and Industrial, Industrial [Member]    
Collateral dependent loans $ 0 $ 0
Collateral coverage $ 0 $ 0
Collateral coverage percentage 0.00% 0.00%
Commercial and Industrial, Other [Member]    
Collateral dependent loans $ 0 $ 0
Collateral coverage $ 0 $ 0
Collateral coverage percentage 0.00% 0.00%
Consumer Owner Occupied, Other [Member]    
Collateral dependent loans $ 0 $ 0
Collateral coverage $ 0 $ 0
Collateral coverage percentage 0.00% 0.00%
Consumer, Other [Member]    
Collateral dependent loans $ 589 $ 0
Collateral coverage $ 574 $ 0
Collateral coverage percentage 97.45% 0.00%
v3.22.4
Note 5 - Credit Quality - Loans Modified as Troubled Debt Restructurings by Loan Class and Accrual Status (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Nonaccrual [1] $ 1,324 $ 2,519
Accrual 7,112 8,652
TDRs 8,436 11,171
Allowance for credit losses related to TDRs 0 0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]    
Nonaccrual [1] 0 396
Accrual 374 470
TDRs 374 866
Commercial Portfolio Segment [Member] | Single Family Non-owner Occupied [Member]    
Nonaccrual [1] 142 857
Accrual 838 1,100
TDRs 980 1,957
Commercial Portfolio Segment [Member] | Non-farm, Non-residential [Member]    
Nonaccrual [1] 0 0
Accrual 747 2,021
TDRs 747 2,021
Consumer Real Estate Portfolio Segment [Member] | Home Equity Lines [Member]    
Nonaccrual [1] 0 0
Accrual 55 67
TDRs 55 67
Consumer Real Estate Portfolio Segment [Member] | Single Family Owner Occupied [Member]    
Nonaccrual [1] 1,182 1,266
Accrual 5,073 4,755
TDRs 6,255 6,021
Consumer Real Estate Portfolio Segment [Member] | Owner Occupied Construction [Member]    
Nonaccrual [1] 0 0
Accrual 0 212
TDRs 0 212
Consumer and Other Portfolio Segment [Member]    
TDRs   27
Consumer and Other Portfolio Segment [Member] | Consumer Loans [Member]    
Nonaccrual [1] 0 0
Accrual 25 $ 27
TDRs $ 25  
[1] Nonaccrual TDRs are included in total nonaccrual loans disclosed in the nonaccrual table above.
v3.22.4
Note 5 - Credit Quality - Balance and Interest Income Related to Impaired Loan Pools (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Troubled Debt Restructurings [Member] | Purchased Credit Impaired Loans [Member]      
Interest income recognized $ 383 $ 422 $ 473
v3.22.4
Note 5 - Credit Quality - Loans Modified as Troubled Debt Restructurings (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Total contracts 6 7
Pre-modification recorded investment $ 525 $ 1,361
Post-modification recorded investment [1] $ 513 $ 1,361
Below Market Interest Rate [Member] | Single Family Owner Occupied [Member]    
Total contracts 1 0
Pre-modification recorded investment $ 31 $ 0
Post-modification recorded investment [1] $ 32 $ 0
Below Market Interest Rate and Extended Payment Term [Member]    
Total contracts 0 5
Pre-modification recorded investment $ 0 $ 567
Post-modification recorded investment [1] $ 0 $ 567
Below Market Interest Rate and Extended Payment Term [Member] | Single Family Owner Occupied [Member]    
Total contracts 0 4
Pre-modification recorded investment $ 0 $ 402
Post-modification recorded investment [1] $ 0 $ 402
Below Market Interest Rate and Extended Payment Term [Member] | Single Family Non-owner Occupied [Member]    
Total contracts 0 1
Pre-modification recorded investment $ 0 $ 165
Post-modification recorded investment [1] $ 0 $ 165
Payment Deferral [Member]    
Total contracts 5 2
Pre-modification recorded investment $ 494 $ 794
Post-modification recorded investment [1] $ 481 $ 794
Payment Deferral [Member] | Single Family Owner Occupied [Member]    
Total contracts 5 1
Pre-modification recorded investment $ 494 $ 41
Post-modification recorded investment $ 481 $ 41
Payment Deferral [Member] | Single Family Non-owner Occupied [Member]    
Total contracts 0 1
Pre-modification recorded investment $ 0 $ 753
Post-modification recorded investment [1] $ 0 $ 753
[1] Represents the loan balance immediately following modification
v3.22.4
Note 5 - Credit Quality - Other Real Estate Owned (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Total OREO $ 703 $ 1,015
OREO secured by residential real estate 407 337
Residential real estate loans in the foreclosure process(1) [1] $ 1,474 $ 2,210
[1] The recorded investment in consumer mortgage loans collateralized by residential real estate that are in the process of foreclosure according to local requirements of the applicable jurisdiction
v3.22.4
Note 6 - Allowance for Credit Losses - Changes in Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Balance       $ 27,858 [1]       $ 26,182 $ 27,858 [1] $ 26,182  
Provision for (recovery of) credit losses charged to operations $ 3,416 $ 685 $ 510 1,961 $ (846) $ (1,394) $ (2,230) (4,001) 6,572 (8,471) $ 12,668
Charge-offs                 (7,803) (6,774)  
Recoveries                 3,929 3,814  
Net (charge-offs) recoveries                 (3,874) (2,960)  
Balance 30,556       27,858 [1]       30,556 27,858 [1] 26,182
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]                      
Balance               13,107   13,107  
Balance                     13,107
Commercial Portfolio Segment [Member]                      
Balance       14,775       14,661 14,775 14,661  
Provision for (recovery of) credit losses charged to operations                 431 (6,949)  
Charge-offs                 (633) (3,431)  
Recoveries                 2,640 2,134  
Net (charge-offs) recoveries                 2,007 (1,297)  
Balance 17,213       14,775       17,213 14,775 14,661
Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]                      
Balance               8,360   8,360  
Balance                     8,360
Consumer Real Estate Portfolio Segment [Member]                      
Balance       9,972       8,951 9,972 8,951  
Provision for (recovery of) credit losses charged to operations                 (1,121) (3,653)  
Charge-offs                 (427) (318)  
Recoveries                 507 847  
Net (charge-offs) recoveries                 80 529  
Balance 8,931       9,972       8,931 9,972 8,951
Consumer Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]                      
Balance               4,145   4,145  
Balance                     4,145
Consumer and Other Portfolio Segment [Member]                      
Balance       $ 3,111       2,570 3,111 2,570  
Provision for (recovery of) credit losses charged to operations                 7,262 2,131  
Charge-offs                 (6,743) (3,025)  
Recoveries                 782 833  
Net (charge-offs) recoveries                 (5,961) (2,192)  
Balance $ 4,412       $ 3,111       $ 4,412 3,111 2,570
Consumer and Other Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member]                      
Balance               $ 602   $ 602  
Balance                     $ 602
[1] Derived from audited financial statements
v3.22.4
Note 7 - Premises, Equipment, and Leases (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Impairment of Long-Lived Assets to be Disposed of $ 0 $ 781 $ 812
Depreciation, Depletion and Amortization, Total $ 4,150 $ 4,470 4,460
Operating Lease, Weighted Average Discount Rate, Percent 3.28% 3.22%  
Operating Lease, Expense $ 175 $ 182 $ 180
Minimum [Member]      
Lessee, Operating Lease, Remaining Lease Term (Year) 2 years 4 months  
Maximum [Member]      
Lessee, Operating Lease, Remaining Lease Term (Year) 6 years 6 months 7 years 6 months  
Other Assets [Member]      
Operating Lease, Right-of-Use Asset $ 648 $ 741  
Other Liabilities [Member]      
Operating Lease, Liability, Total $ 670 $ 770  
v3.22.4
Note 7 - Premises, Equipment, and Leases - Components of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Land $ 19,460 $ 20,402
Buildings and leasehold improvements 47,009 48,118
Equipment 40,552 40,501
Total premises and equipment 107,021 109,021
Accumulated depreciation and amortization (59,681) (56,737)
Total premises and equipment, net $ 47,340 $ 52,284 [1]
[1] Derived from audited financial statements
v3.22.4
Note 7 - Premises, Equipment, and Leases - Minimum Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
2023 $ 119  
2024 117  
2025 101  
2026 101  
2027 and thereafter 261  
Total lease payments 699  
Less: Interest (29)  
Other Liabilities [Member]    
Operating Lease, Liability, Total $ 670 $ 770
v3.22.4
Note 8 - Goodwill and Other Intangible Assets (Details Textual)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Number of Reportable Segments 1    
Goodwill, Ending Balance $ 129,565 $ 129,565 [1] $ 129,570
Amortization of Intangible Assets $ 1,446 $ 1,446 $ 1,450
Core Deposits [Member]      
Finite-Lived Intangible Assets, Remaining Amortization Period (Year) 5 years 10 months 13 days    
Core Deposits [Member] | Minimum [Member]      
Finite-Lived Intangible Asset, Useful Life (Year) 2 years 6 months    
Core Deposits [Member] | Maximum [Member]      
Finite-Lived Intangible Asset, Useful Life (Year) 7 years    
[1] Derived from audited financial statements
v3.22.4
Note 8 - Goodwill and Other Intangible Assets - Components of Other Intangible Assets, by Reporting Unit (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Other intangible assets $ 4,176 $ 5,622 [1]  
Community Banking [Member]      
Other intangible assets   5,622 $ 7,069
Core Deposits [Member]      
Finite-lived intangible assets, gross 12,674    
Accumulated amortization $ (8,498)    
Core Deposits [Member] | Community Banking [Member]      
Finite-lived intangible assets, gross   12,674 12,674
Accumulated amortization   $ (7,052) $ (5,605)
[1] Derived from audited financial statements
v3.22.4
Note 8 - Goodwill and Other Intangible Assets - Estimated Amortization Expense for Intangible Assets, by Year (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
2023 $ 878
2024 856
2025 647
2026 449
2027 449
2028 and thereafter 897
Total estimated amortization expense $ 4,176
v3.22.4
Note 9 - Deposits (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Time Deposits, at or Above FDIC Insurance Limit $ 15,214 $ 27,140
v3.22.4
Note 9 - Deposits - Components of Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Noninterest-bearing demand deposits $ 872,168 $ 842,783
Interest-bearing demand deposits 679,609 676,254
Money market accounts 264,734 293,915
Savings deposits 578,974 561,576
Certificates of deposit 180,008 237,919
Individual retirement accounts 103,322 116,944
Total interest-bearing deposits 1,806,647 1,886,608
Total deposits $ 2,678,815 $ 2,729,391 [1]
[1] Derived from audited financial statements
v3.22.4
Note 9 - Deposits - Scheduled Maturities of Time Deposits (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
2023 $ 161,250
2024 50,680
2025 30,246
2026 18,010
2027 18,191
2028 and thereafter 4,953
Total contractual maturities $ 283,330
v3.22.4
Note 9 - Deposits - Scheduled Maturities of Certificates of Deposit of $250 Thousand or More (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Three months or less $ 2,406  
Over three through six months 1,160  
Over six through twelve months 3,754  
Over twelve months 7,894  
Total contractual maturities $ 15,214 $ 27,140
v3.22.4
Note 10 - Borrowings (Details Textual)
$ in Thousands
Dec. 31, 2022
USD ($)
Debt Instrument, Unused Borrowing Capacity, Amount $ 405,810
Deposit Liabilities, Collateral Issued, Financial Instruments 116,280
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged $ 731,430
v3.22.4
Note 10 - Borrowings - Components of Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Securities sold under agreements to repurchase $ 1,874 $ 1,536 [1]
Retail Repurchase Agreements [Member]    
Securities sold under agreements to repurchase $ 1,874 $ 1,536
Retail repurchase agreements 0.07% 0.07%
[1] Derived from audited financial statements
v3.22.4
Note 10 - Borrowings - Contractual Maturities of Repurchase Agreements (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
 [1]
Repurchase agreements $ 1,874 $ 1,536
Maturity Overnight and Continuous [Member]    
Repurchase agreements 1,874  
Maturity Less than 30 Days [Member]    
Repurchase agreements 0  
Maturity 30 to 90 Days [Member]    
Repurchase agreements 0  
Maturity Greater than 90 Days [Member]    
Repurchase agreements 0  
US States and Political Subdivisions Debt Securities [Member]    
Repurchase agreements 453  
US States and Political Subdivisions Debt Securities [Member] | Maturity Overnight and Continuous [Member]    
Repurchase agreements 453  
US States and Political Subdivisions Debt Securities [Member] | Maturity Less than 30 Days [Member]    
Repurchase agreements 0  
US States and Political Subdivisions Debt Securities [Member] | Maturity 30 to 90 Days [Member]    
Repurchase agreements 0  
US States and Political Subdivisions Debt Securities [Member] | Maturity Greater than 90 Days [Member]    
Repurchase agreements 0  
Mortgage-backed Agency Securities [Member]    
Repurchase agreements 1,421  
Mortgage-backed Agency Securities [Member] | Maturity Overnight and Continuous [Member]    
Repurchase agreements 1,421  
Mortgage-backed Agency Securities [Member] | Maturity Less than 30 Days [Member]    
Repurchase agreements 0  
Mortgage-backed Agency Securities [Member] | Maturity 30 to 90 Days [Member]    
Repurchase agreements 0  
Mortgage-backed Agency Securities [Member] | Maturity Greater than 90 Days [Member]    
Repurchase agreements $ 0  
[1] Derived from audited financial statements
v3.22.4
Note 11 - Derivative Instruments and Hedging Activities (Details Textual)
$ in Millions
Jul. 26, 2022
USD ($)
Interest Rate Swap [Member]  
Derivative, Gain (Loss) on Derivative, Net, Total $ (72)
v3.22.4
Note 11 - Derivative Instruments and Hedging Activities - Notional or Contractual Amounts and Fair Values of Derivative Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Notional or contractual amount $ 3,983 $ 12,278
Derivative assets 199 0
Derivative liabilities 0 837
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]    
Notional or contractual amount 3,983 4,388
Derivative assets 199 0
Derivative liabilities 0 229
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member]    
Notional or contractual amount 0 7,890
Derivative assets 0 0
Derivative liabilities $ 0 $ 608
v3.22.4
Note 11 - Derivative Instruments and Hedging Activities - Effect of Derivative and Hedging Activity, on Consolidated Statements of Income (Details) - Interest Rate Swap [Member] - USD ($)
$ in Thousands
 12 Months Ended
Jul. 26, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Derivative expense $ (72,000)      
Interest and Fees on Loans [Member]        
Derivative expense   $ 125 $ 328 $ 320
Designated as Hedging Instrument [Member] | Interest and Fees on Loans [Member]        
Derivative expense   35 111 85
Not Designated as Hedging Instrument [Member] | Interest and Fees on Loans [Member]        
Derivative expense   $ 90 $ 217 $ 235
v3.22.4
Note 12 - Employee Benefit Plans (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Deferred Compensation Arrangement with Individual, Recorded Liability $ 0 $ 0  
Deferred Compensation Arrangement with Individual, Compensation Expense 0 0 $ 0
Deferred Compensation Plan Assets 5,140 5,250  
Stop-loss Insurance Liability for Individual Claims 200    
Stop-loss Insurance Liability for Aggregate Claims 5,140    
Other Postretirement Benefits Cost (Reversal of Cost) $ 4,040 $ 3,980 $ 4,170
Common Stock, Shares Held in Employee Trust, Shares (in shares) 309,019 320,164 351,222
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) 0    
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) 7,575 39,995  
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value $ 83 $ 628  
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount $ 427    
Share-Based Payment Arrangement, Option [Member]      
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) 1 year 3 months    
Restricted Stock [Member]      
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) 2 years 3 days    
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount $ 1,410    
2012 Omnibus Incentive Compensation Plan [Member] | Share-Based Payment Arrangement, Option [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) 600,000    
Share-based Compensation Arrangement By Share-based Payment Award, Maximum Exercise Period (Year) 10 years    
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) 4 years    
2012 Omnibus Incentive Compensation Plan [Member] | Share-Based Payment Arrangement, Option [Member] | Share-Based Payment Arrangement, Tranche One [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage 25.00%    
Supplemental Employee Retirement Plan [Member]      
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent 35.00%    
Defined Benefit Plan, Employee Contribution, Age 62    
Directors' Plan [Member]      
Defined Benefit Plan, Employee Contribution, Age 70    
Defined Contribution Plan, Maximum Employee Contribution as Percentage of Base Salary 100.00%    
401 (k) Savings Plan [Member]      
Defined Benefit Plan, Employer Matching Contributions $ 1,820 $ 1,710 $ 1,510
v3.22.4
Note 12 - Employee Benefit Plans - Schedule of Changes in Aggregate Actuarial Benefit Obligation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Beginning balance $ 11,458 $ 12,579  
Effect of curtailment 0 289  
Service cost 0 352 $ 310
Interest cost 332 315 355
Actuarial gain (1,718) (1,472)  
Benefits paid (584) (605)  
Ending balance $ 9,488 $ 11,458 $ 12,579
v3.22.4
Note 12 - Employee Benefit Plans - Components of Net Periodic Pension Cost and Assumed Discount Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Service cost $ 0 $ 352 $ 310
Interest cost 332 315 355
Effect of curtailment 0 289 0
Amortization of prior service cost 0 124 201
Amortization of losses 135 264 186
Net periodic cost $ 467 $ 1,344 $ 1,052
Assumed discount rate 4.96% 2.88% 2.53%
v3.22.4
Note 12 - Employee Benefit Plans - Projected Benefit Payments (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
2025 $ 736
2026 836
2027 816
Supplemental Employee Retirement Plan [Member]  
2023 697
2024 741
2028 through 2032 $ 3,496
v3.22.4
Note 12 - Employee Benefit Plans - Pre-tax Compensation Expense and Excess Tax Benefit Recognized in Earnings (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Pre-tax compensation expense $ 718 $ 1,282 $ 1,643
Excess tax (benefit) expense $ 0 $ (633) $ 202
v3.22.4
Note 12 - Employee Benefit Plans - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Options outstanding at beginning of period (in shares) 204,878  
Options outstanding at beginning of period (in dollars per share) $ 29.35  
Granted (in shares) 0  
Granted (in dollars per share) $ 0  
Exercised (in shares) (7,575) (39,995)
Exercised (in dollars per share) $ 22.63  
Canceled/Expired (in shares) 0  
Canceled/Expired (in dollars per share) $ 0  
Options outstanding at end of period (in shares) 197,303 204,878
Options outstanding at end of period (in dollars per share) $ 29.61 $ 29.35
Options outstanding at end of period (Year) 6 years 8 months 8 days  
Options outstanding at end of period $ 847  
Options exercisable at end of period (in shares) 109,833  
Options exercisable at end of period (in dollars per share) $ 26.90  
Options exercisable at end of period (Year) 5 years 5 months 23 days  
Options exercisable at end of period $ 769  
v3.22.4
Note 12 - Employee Benefit Plans - Restricted Stock Activity (Details) - Restricted Stock [Member]
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Nonvested shares at beginning of period (in shares) | shares 45,656
Nonvested shares at beginning of period (in dollars per share) | $ / shares $ 24.03
Granted (in shares) | shares 55,839
Granted (in dollars per share) | $ / shares $ 27.97
Vested (in shares) | shares (27,414)
Vested (in dollars per share) | $ / shares $ 25.79
Canceled (in shares) | shares (476)
Canceled (in dollars per share) | $ / shares $ 22.89
Nonvested shares at end of period (in shares) | shares 73,605
Nonvested shares at end of period (in dollars per share) | $ / shares $ 30.87
v3.22.4
Note 13 - Other Operating Income and Expense (Details Textual)
 12 Months Ended
Dec. 31, 2022
Percentage of Operating Income 1.00%
v3.22.4
Note 13 - Other Operating Income and Expense - Components of Other Operating Income and Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Bank owned life insurance $ 961 $ 1,183 $ 814
Net FDIC indemnification asset amortization 0 (1,226) (1,690)
Other(1) [1] 4,187 4,623 3,555
Total other operating income 5,148 4,580 2,679
OREO expense and net loss 557 330 414
Telephone and data communications 1,658 1,720 2,188
Office supplies 494 553 660
Other(1) [1] 7,766 9,134 9,148
Total other operating expense $ 10,475 $ 11,737 $ 12,410
[1] Components of other operating income or expense that do not exceed 1% of total income
v3.22.4
Note 14 - Income Taxes (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total $ 0 $ 0
Deferred Tax Assets, Valuation Allowance $ 0 $ 0
v3.22.4
Note 14 - Income Taxes - Components of Income Tax Provision (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Federal                 $ 9,883 $ 8,546 $ 10,048
State                 1,648 1,563 1,643
Total current tax expense                 11,531 10,109 11,691
Federal                 1,800 4,677 (1,266)
State                 164 574 (239)
Total deferred tax expense (benefit)                 1,964 5,251 (1,505)
Total income tax expense $ 3,076 $ 4,111 $ 3,423 $ 2,885 $ 3,037 $ 3,816 $ 4,077 $ 4,430 $ 13,495 $ 15,360 $ 10,186
v3.22.4
Note 14 - Income Taxes - Reconciliation of Statutory Federal Tax Rate and Effective Tax Rate From Continuing Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Federal income tax at the statutory rate, amount                 $ 12,633 $ 13,971 $ 9,683
Federal income tax at the statutory rate                 21.00% 21.00% 21.00%
State income tax, net of federal benefit, amount                 $ 1,432 $ 2,076 $ 1,109
State income tax, net of federal benefit                 2.38% 3.12% 3.12%
Total effective income tax rate reconciliation, amount                 $ 14,065 $ 16,047 $ 10,792
Total effective income tax rate reconciliation                 23.38% 24.12% 24.12%
Tax-exempt interest income, amount                 $ (347) $ (340) $ (500)
Tax-exempt interest income                 (0.58%) (0.51%) (1.08%)
Excess tax benefits                 $ (24) $ (133) $ 42
Excess tax benefits                 (0.04%) (0.20%) 0.09%
Bank owned life insurance, amount                 $ (68) $ (225) $ (139)
Bank owned life insurance                 (0.11%) (0.34%) (0.30%)
Other items, net, amount                 $ (131) $ 11 $ (9)
Other items, net                 (0.22%) 0.02% (0.74%)
Total income tax expense $ 3,076 $ 4,111 $ 3,423 $ 2,885 $ 3,037 $ 3,816 $ 4,077 $ 4,430 $ 13,495 $ 15,360 $ 10,186
Income tax at the effective tax rate                 22.43% 23.09% 22.09%
v3.22.4
Note 14 - Income Taxes - Significant Components of Net Deferred Tax Asset (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2021
 [1]
Allowance for loan losses $ 7,283 $ 6,647  
Unrealized losses on available-for-sale securities 4,153 0  
Unrealized asset losses 503 482  
Purchase accounting 148 455  
FDIC assisted transactions 588 810  
Deferred loan fees 2,074 2,350  
Deferred compensation assets 5,035 5,634  
Federal net operating loss carryforward 1,223 2,179  
Lease liability 160 184  
Other 707 472  
Total deferred tax assets 21,874 19,213 $ 17,493
Fixed assets (755) (1,046)  
Intangible assets (857) (318)  
Odd days interest deferral (4,010) (3,324)  
Unrealized gains on available for sale securities 0 (4)  
Right of use asset (155) (177)  
Other (197) (192)  
Total deferred tax liabilities (5,974) (5,061)  
Net deferred tax asset $ 15,900 $ 14,152  
[1] Effect of deferred tax assets related to the adjustment to the ACL form the adoption of ASU 2016-13 using a 23.37% tax rate.
v3.22.4
Note 15 - Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Balance $ 427,775 [1] $ 426,730 $ 428,819
Other comprehensive (loss) income, net (14,173) 377 (417)
Balance 421,985 427,775 [1] 426,730
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member]      
Balance 15 1,106 866
Other comprehensive (loss) income before reclassifications (15,636) (1,091) 544
Reclassified from AOCI 0 0 (304)
Other comprehensive (loss) income, net (15,636) (1,091) 240
Balance (15,621) 15 1,106
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]      
Balance (1,561) (3,029) (2,372)
Other comprehensive (loss) income before reclassifications 1,357 1,160 (961)
Reclassified from AOCI 106 308 304
Other comprehensive (loss) income, net 1,463 1,468 (657)
Balance (98) (1,561) (3,029)
AOCI Attributable to Parent [Member]      
Balance (1,546) (1,923) (1,506)
Other comprehensive (loss) income before reclassifications (14,279) 69 (417)
Reclassified from AOCI 106 308 0
Other comprehensive (loss) income, net (14,173) 377 (417)
Balance $ (15,719) $ (1,546) $ (1,923)
[1] Derived from audited financial statements
v3.22.4
Note 15 - Accumulated Other Comprehensive Income - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
(Losses) gains recognized                 $ 0 $ 0 $ 385
Income before income taxes $ 15,659 $ 17,462 $ 14,636 $ 12,400 $ 13,592 $ 16,424 $ 17,480 $ 19,032 60,157 66,528 46,112
Income tax benefit 3,076 4,111 3,423 2,885 3,037 3,816 4,077 4,430 13,495 15,360 10,186
Net income $ 12,583 $ 13,351 $ 11,213 $ 9,515 $ 10,555 $ 12,608 $ 13,403 $ 14,602 46,662 51,168 35,926
Reclassification out of Accumulated Other Comprehensive Income [Member]                      
(Losses) gains recognized                 0 0 (385)
Income tax benefit                 0 0 81
Net income                 106 308 0
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member]                      
Income before income taxes                 0 0 (385)
Income tax benefit                 (29) (80) (82)
Net income                 0 0 (304)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member]                      
Other operating expense                 0 124 201
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]                      
Other operating expense                 135 264 185
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]                      
Income before income taxes                 135 388 386
Net income                 $ 106 $ 308 $ 304
v3.22.4
Note 16 - Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2021
 [2]
Securities available for sale $ 300,349 $ 76,292 [1] $ 83,358
Derivative assets 199 0  
Derivative liabilities 0 837  
Fair Value, Recurring [Member]      
Securities available for sale 300,349 76,292  
Equity securities 55 55  
Fair value loans 3,784 13,106  
Derivative assets 199    
Deferred compensation assets 5,142 5,245  
Deferred compensation liabilities 5,142 5,245  
Derivative liabilities   837  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]      
Securities available for sale 0 0  
Equity securities 0 0  
Fair value loans 0 0  
Derivative assets 0    
Deferred compensation assets 5,142 5,245  
Deferred compensation liabilities 5,142 5,245  
Derivative liabilities   0  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]      
Securities available for sale 300,349 76,292  
Equity securities 55 55  
Fair value loans 0 0  
Derivative assets 199    
Deferred compensation assets 0 0  
Deferred compensation liabilities 0 0  
Derivative liabilities   837  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]      
Securities available for sale 0 0  
Equity securities 0 0  
Fair value loans 3,784 13,106  
Derivative assets 0    
Deferred compensation assets 0 0  
Deferred compensation liabilities 0 0  
Derivative liabilities   0  
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member]      
Securities available for sale 1,485 466  
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]      
Securities available for sale 0 0  
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]      
Securities available for sale 1,485 466  
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]      
Securities available for sale 0 0  
Fair Value, Recurring [Member] | US Treasury Securities [Member]      
Securities available for sale 157,264    
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member]      
Securities available for sale 0    
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member]      
Securities available for sale 157,264    
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member]      
Securities available for sale 0    
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member]      
Securities available for sale 23,309 28,794  
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]      
Securities available for sale 0 0  
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]      
Securities available for sale 23,309 28,794  
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]      
Securities available for sale 0 0  
Fair Value, Recurring [Member] | Corporate Debt Securities [Member]      
Securities available for sale 34,857 9,919  
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]      
Securities available for sale 0 0  
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]      
Securities available for sale 34,857 9,919  
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]      
Securities available for sale 0 0  
Fair Value, Recurring [Member] | Mortgage-backed Agency Securities [Member]      
Securities available for sale 83,434 37,113  
Fair Value, Recurring [Member] | Mortgage-backed Agency Securities [Member] | Fair Value, Inputs, Level 1 [Member]      
Securities available for sale 0 0  
Fair Value, Recurring [Member] | Mortgage-backed Agency Securities [Member] | Fair Value, Inputs, Level 2 [Member]      
Securities available for sale 83,434 37,113  
Fair Value, Recurring [Member] | Mortgage-backed Agency Securities [Member] | Fair Value, Inputs, Level 3 [Member]      
Securities available for sale $ 0 $ 0  
[1] Derived from audited financial statements
[2] Per our analysis no ACL was necessary for investment securities available for sale.
v3.22.4
Note 16 - Fair Value - Changes in Level 3 Fair Value Measurements (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Balance $ 13,106 $ 17,831
Changes in fair value (428) (303)
Changes due to principal reduction (405) (4,422)
Change due to termination of interest rate swaps not qualifying as fair value hedges (8,489)  
Balance $ 3,784 $ 13,106
v3.22.4
Note 16 - Fair Value - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member] - Non-covered Loans [Member] - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Collateral Dependent Assets With Specific Reserves [Member]    
Total Fair Value $ 574 $ 2,312
Collateral Dependent Assets With Specific Reserves [Member] | Fair Value, Inputs, Level 1 [Member]    
Total Fair Value 0 0
Collateral Dependent Assets With Specific Reserves [Member] | Fair Value, Inputs, Level 2 [Member]    
Total Fair Value 0 0
Collateral Dependent Assets With Specific Reserves [Member] | Fair Value, Inputs, Level 3 [Member]    
Total Fair Value 574 2,312
OREO [Member]    
Total Fair Value 703 1,015
OREO [Member] | Fair Value, Inputs, Level 1 [Member]    
Total Fair Value 0 0
OREO [Member] | Fair Value, Inputs, Level 2 [Member]    
Total Fair Value 0 0
OREO [Member] | Fair Value, Inputs, Level 3 [Member]    
Total Fair Value $ 703 $ 1,015
v3.22.4
Note 16 - Fair Value - Quantitative Information for Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member] - Measurement Input, Discount Rate [Member] - Valuation, Market Approach [Member]
Dec. 31, 2022
Dec. 31, 2021
Minimum [Member]    
Collateral dependent assets with specific reserves [1],[2] 0.03 0
OREO [1],[2] 0.20 0
Maximum [Member]    
Collateral dependent assets with specific reserves [1],[2] 0.03 0.11
OREO [1],[2] 1 0.87
Weighted Average [Member]    
Collateral dependent assets with specific reserves [1],[2] 0.03 0.06
OREO [1],[2] 0.69 0.32
[1] Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments.
[2] Fair value is generally based on appraisals of the underlying collateral.
v3.22.4
Note 16 - Fair Value - Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2021
Debt securities available for sale $ 300,349 $ 76,292 [1] $ 83,358 [2]
Interest receivable 9,279 7,900 [1] $ 9,052 [3]
Derivative assets 199 0  
Derivative liabilities 0 837  
Reported Value Measurement [Member]      
Cash and cash equivalents 170,846 677,439  
Debt securities available for sale 300,349 76,292  
Equity securities 55 55  
Loans held for investment, net of allowance 2,369,641 2,137,711  
Interest receivable 9,279 7,900  
Deferred compensation assets 5,142 5,245  
Derivative assets 199    
Securities sold under agreements to repurchase 1,874 1,536  
Interest payable 159 314  
Deferred compensation liabilities 5,142 5,245  
Derivative liabilities   837  
Reported Value Measurement [Member] | Bank Time Deposits [Member]      
Deposits fair value 283,330 354,863  
Estimate of Fair Value Measurement [Member]      
Cash and cash equivalents 170,846 677,439  
Debt securities available for sale 300,349 76,292  
Equity securities 55 55  
Loans held for investment, net of allowance 2,215,243 2,108,513  
Interest receivable 9,279 7,900  
Deferred compensation assets 5,142 5,245  
Derivative assets 199    
Securities sold under agreements to repurchase 1,874 1,536  
Interest payable 159 314  
Deferred compensation liabilities 5,142 5,245  
Derivative liabilities   837  
Estimate of Fair Value Measurement [Member] | Bank Time Deposits [Member]      
Deposits fair value 281,744 352,000  
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]      
Cash and cash equivalents 170,846 677,439  
Debt securities available for sale 0 0  
Equity securities 0 0  
Loans held for investment, net of allowance 0 0  
Interest receivable 0 0  
Deferred compensation assets 5,142 5,245  
Derivative assets 0    
Securities sold under agreements to repurchase 0 0  
Interest payable 0 0  
Deferred compensation liabilities 5,142 5,245  
Derivative liabilities   0  
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Bank Time Deposits [Member]      
Deposits fair value 0 0  
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]      
Cash and cash equivalents 0 0  
Debt securities available for sale 300,349 76,292  
Equity securities 55 55  
Loans held for investment, net of allowance 0 0  
Interest receivable 9,279 7,900  
Deferred compensation assets 0 0  
Derivative assets 199    
Securities sold under agreements to repurchase 1,874 1,536  
Interest payable 159 314  
Deferred compensation liabilities 0 0  
Derivative liabilities   837  
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Bank Time Deposits [Member]      
Deposits fair value 281,744 352,000  
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]      
Cash and cash equivalents 0 0  
Debt securities available for sale 0 0  
Equity securities 0 0  
Loans held for investment, net of allowance 2,215,243 2,108,513  
Interest receivable 0 0  
Deferred compensation assets 0 0  
Derivative assets 0    
Securities sold under agreements to repurchase 0 0  
Interest payable 0 0  
Deferred compensation liabilities 0 0  
Derivative liabilities   0  
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Bank Time Deposits [Member]      
Deposits fair value $ 0 $ 0  
[1] Derived from audited financial statements
[2] Per our analysis no ACL was necessary for investment securities available for sale.
[3] Accrued interest receivable from acquired credit impaired loans of $57 thousand was reclassed to other assets and was offset by the reclass of the grossed up credit discount on acquired credit impaired loans of $57 thousand that was moved to the ACL for the purchased credit deteriorated loans.
v3.22.4
Note 17 - Earnings Per Share - Basic and Diluted Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net income $ 12,583 $ 13,351 $ 11,213 $ 9,515 $ 10,555 $ 12,608 $ 13,403 $ 14,602 $ 46,662 $ 51,168 $ 35,926
Weighted average common shares outstanding, basic (in shares) 16,229,289 16,378,022 16,662,817 16,817,284 16,974,005 17,221,244 17,486,182 17,669,937 16,519,848 17,335,615 17,781,748
Total dilutive effect of potential common shares (in shares)                 42,409 67,321 33,632
Weighted average common shares outstanding, diluted (in shares) 16,281,922 16,413,202 16,682,615 16,864,515 17,038,980 17,279,576 17,536,144 17,729,185 16,562,257 17,402,936 17,815,380
Basic earnings per common share (in dollars per share) $ 0.78 $ 0.82 $ 0.67 $ 0.57 $ 0.62 $ 0.73 $ 0.77 $ 0.83 $ 2.82 $ 2.95 $ 2.02
Diluted earnings per common share (in dollars per share) $ 0.77 $ 0.81 $ 0.67 $ 0.56 $ 0.62 $ 0.73 $ 0.76 $ 0.82 $ 2.82 $ 2.94 $ 2.02
Antidilutive potential common shares (in shares)                 131,198 104,150 85,066
Share-Based Payment Arrangement, Option [Member]                      
Dilutive effect of potential common shares (in shares)                 18,784 30,854 22,495
Antidilutive potential common shares (in shares)                 131,198 103,520 58,166
Restricted Stock [Member]                      
Dilutive effect of potential common shares (in shares)                 23,625 36,467 11,137
Antidilutive potential common shares (in shares)                 0 630 26,900
v3.22.4
Note 18 - Related Party Transactions (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Related Party Deposit Liabilities $ 14,590 $ 11,920  
Related Party Transaction, Expenses from Transactions with Related Party 41 80 $ 70
Operating Lease, Expense 175 182 180
Due to Other Related Parties 53 104 68
Related Parties [Member]      
Operating Lease, Expense $ 0 $ 0 $ 0
v3.22.4
Note 18 - Related Party Transactions - Changes in Loans With Related Parties (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Beginning balance $ 33,740 $ 20,166
New loans and advances 7,768 4,476
Loan repayments (15,979) (4,139)
Reclassifications [1] 5,452 13,237
Ending balance $ 30,981 $ 33,740
[1] Changes related to the composition of the Company's directors, executive officers, and related insiders
v3.22.4
Note 19 - Litigation, Commitments, and Contingencies - Off-balance Sheet Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Commitments to extend credit $ 278,926 $ 272,447
Standby letters of credit and financial guarantees(1) [1] 119,681 153,717
Total off-balance sheet risk $ 398,607 $ 426,164
[1] Includes FHLB letters of credit
v3.22.4
Note 20 - Regulatory Requirements and Restrictions (Details Textual)
Jan. 01, 2019
Capital Conservation Buffer 2.50%
v3.22.4
Note 20 - Regulatory Requirements and Restrictions - Company's and Bank's Capital Ratios (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Common equity Tier 1 ratio, actual amount $ 303,963 $ 294,207
Common equity Tier 1, actual ratio 0.1337 0.1439
Common equity Tier 1 ratio, required amount $ 102,332 $ 91,983
Common equity Tier 1, required ratio 4.50% 4.50%
Tier 1 risk-based capital ratio, actual amount $ 303,963 $ 294,207
Tier 1 risk-based capital, actual ratio 0.1337 0.1439
Tier 1 risk-based capital ratio, required amount $ 136,443 $ 122,644
Tier 1 risk-based capital, required ratio 0.0600 0.0600
Total risk-based capital ratio, actual amount $ 332,430 $ 319,795
Total risk-based capital, actual ratio 0.1462 0.1565
Total risk-based capital ratio, required amount $ 181,924 $ 163,525
Total risk-based capital, required ratio 0.0800 0.0800
Tier 1 Leverage ratio, actual amount $ 303,963 $ 294,207
Tier 1 Leverage, actual ratio 0.1017 0.0965
Tier 1 Leverage ratio, required amount $ 119,499 $ 121,892
Tier 1 Leverage, required ratio 0.0400 0.0400
First Community Bank [Member]    
Common equity Tier 1 ratio, actual amount $ 264,185 $ 271,806
Common equity Tier 1, actual ratio 0.1169 0.1337
Common equity Tier 1 ratio, required amount $ 101,712 $ 91,499
Common equity Tier 1, required ratio 4.50% 4.50%
Tier 1 risk-based capital ratio, actual amount $ 264,185 $ 271,806
Tier 1 risk-based capital, actual ratio 0.1169 0.1337
Tier 1 risk-based capital ratio, required amount $ 135,616 $ 121,999
Tier 1 risk-based capital, required ratio 0.0600 0.0600
Total risk-based capital ratio, actual amount $ 292,481 $ 297,261
Total risk-based capital, actual ratio 0.1294 0.1462
Total risk-based capital ratio, required amount $ 180,821 $ 162,666
Total risk-based capital, required ratio 0.0800 0.0800
Tier 1 Leverage ratio, actual amount $ 264,185 $ 271,806
Tier 1 Leverage, actual ratio 0.0879 0.0894
Tier 1 Leverage ratio, required amount $ 120,248 $ 121,623
Tier 1 Leverage, required ratio 0.0400 0.0400
Common equity Tier 1 to be well capitalized, amount [1] $ 146,917 $ 132,166
Common equity Tier 1, to be well capitalized ratio [1] 6.50% 6.50%
Tier 1 risk-based capital to be well capitalized, amount [1] $ 180,821 $ 162,666
Tier 1 risk-based capital, to be well capitalized ratio [1] 0.0800 0.0800
Total risk-based capital to be well capitalized, amount [1] $ 226,026 $ 203,332
Total risk-based capital, to be well capitalized ratio [1] 0.1000 0.1000
Tier 1 Leverage to be well capitalized, amount [1] $ 150,310 $ 152,028
Tier 1 Leverage, to be well capitalized ratio [1] 0.0500 0.0500
Fully Phased-In [Member]    
Common equity Tier 1 ratio, required amount $ 159,183 $ 143,084
Common equity Tier 1, required ratio 7.00% 7.00%
Tier 1 risk-based capital, actual ratio 0.0850 0.0850
Tier 1 risk-based capital ratio, required amount $ 193,294 $ 173,745
Total risk-based capital ratio, required amount $ 238,775 $ 214,626
Total risk-based capital, required ratio 0.1050 0.1050
Fully Phased-In [Member] | First Community Bank [Member]    
Common equity Tier 1 ratio, required amount $ 158,218 $ 142,332
Common equity Tier 1, required ratio 7.00% 7.00%
Tier 1 risk-based capital, actual ratio 0.0850 0.0850
Tier 1 risk-based capital ratio, required amount $ 192,122 $ 172,832
Total risk-based capital ratio, required amount $ 237,327 $ 213,499
Total risk-based capital, required ratio 0.1050 0.1050
[1] Based on prompt corrective action provisions
v3.22.4
Note 21 - Parent Company Financial Information - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash and due from banks $ 63,044 $ 47,067 [1]      
Debt securities available for sale 300,349 76,292 [1] $ 83,358 [2]    
Other assets 103,673 106,691 [1]      
Total assets 3,135,572 3,194,519 [1]      
Total liabilities 2,713,587 2,766,744 [1]      
Common stock 16,225 16,878      
Additional paid-in capital 128,508 147,619 [1]      
Retained earnings 292,971 264,824 [1] $ 237,585 [3]    
Accumulated other comprehensive loss (15,719) (1,546) [1]      
Total stockholders' equity 421,985 427,775 [1]   $ 426,730 $ 428,819
Total liabilities and stockholders' equity 3,135,572 3,194,519 [1]      
Parent Company [Member]          
Cash and due from banks 16,988 7,728      
Debt securities available for sale 17,313 9,919      
Investment in subsidiaries 382,286 405,374      
Other assets 5,910 5,522      
Total assets 422,497 428,543      
Other liabilities 512 768      
Total liabilities 512 768      
Common stock 16,225 16,878      
Additional paid-in capital 128,508 147,619      
Retained earnings 292,971 264,824      
Accumulated other comprehensive loss (15,719) (1,546)      
Total stockholders' equity 421,985 427,775      
Total liabilities and stockholders' equity $ 422,497 $ 428,543      
[1] Derived from audited financial statements
[2] Per our analysis no ACL was necessary for investment securities available for sale.
[3] Net adjustment to retained earnings related to the adoption of ASU 2016-13.
v3.22.4
Note 21 - Parent Company Financial Information - Condensed Statements of Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Other operating expense                 $ 10,475 $ 11,737 $ 12,410
Income tax expense $ 3,076 $ 4,111 $ 3,423 $ 2,885 $ 3,037 $ 3,816 $ 4,077 $ 4,430 13,495 15,360 10,186
Net income $ 12,583 $ 13,351 $ 11,213 $ 9,515 $ 10,555 $ 12,608 $ 13,403 $ 14,602 46,662 51,168 35,926
Parent Company [Member]                      
Cash dividends received from subsidiary bank                 56,250 53,200 23,710
Other income                 222 8 3
Other operating expense                 1,052 1,086 1,446
Income before income taxes and equity in undistributed net income of subsidiaries                 55,420 52,122 22,267
Income tax expense                 (224) (351) (375)
Income before equity in undistributed net income of subsidiaries                 55,644 52,473 22,642
Equity in (dividends in excess) of undistributed net income of subsidiaries                 (8,982) (1,305) 13,284
Net income                 $ 46,662 $ 51,168 $ 35,926
v3.22.4
Note 21 - Parent Company Financial Information - Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net income $ 12,583 $ 13,351 $ 11,213 $ 9,515 $ 10,555 $ 12,608 $ 13,403 $ 14,602 $ 46,662 $ 51,168 $ 35,926
Decrease (increase) in other operating activities                 3,671 1,300 (6,662)
Net cash provided by operating activities                 59,024 48,215 45,844
Investing activities                      
Payments to acquire securities available for sale                 (269,337) (22,394) (10,267)
Net cash provided by investing activities                 (536,779) 35,350 17,798
Financing activities                      
Payments for repurchase of common stock                 21,311 28,882 21,872
Payments of common stock dividends                 (18,515) (18,059) (17,876)
Net Cash Provided by (Used in) Financing Activities, Total                 (28,838) 137,313 175,910
Cash and cash equivalents increase (decrease)                 (506,593) 220,878 239,552
Cash and cash equivalents at beginning of period       677,439       456,561 677,439 456,561 217,009
Cash and cash equivalents at end of period 170,846       677,439       170,846 677,439 456,561
Parent Company [Member]                      
Net income                 46,662 51,168 35,926
Decrease (increase) in other operating activities                 8,442 253 1,047
Net cash provided by operating activities                 55,104 51,421 36,973
Investing activities                      
Payments to acquire securities available for sale                 (19,372) 0 0
Proceeds from maturities, calls, sales of investment securities                 11,807 (9,919) 0
Dividends in excess of undistributed net income of subsidiaries                 0 1,305 (13,284)
Net cash provided by investing activities                 (7,565) (8,614) (13,284)
Financing activities                      
Proceeds from issuance of common stock                 172 0 0
Payments for repurchase of common stock                 (21,311) (28,882) (21,872)
Payments of common stock dividends                 (18,515) (18,059) (17,876)
Net change in other financing activities                 1,375 1,773 2,150
Net Cash Provided by (Used in) Financing Activities, Total                 (38,279) (45,168) (37,598)
Cash and cash equivalents increase (decrease)                 9,260 (2,361) (13,909)
Cash and cash equivalents at beginning of period       $ 7,728       $ 10,089 7,728 10,089 23,998
Cash and cash equivalents at end of period $ 16,988       $ 7,728       $ 16,988 $ 7,728 $ 10,089
v3.22.4
Note 23 - Quarterly Financial Data (Unaudited) - Summary of Quarterly Earnings (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Interest income $ 30,988 $ 29,722 $ 27,970 $ 25,639 $ 25,832 $ 25,789 $ 26,538 $ 27,151 $ 114,319 $ 105,310 $ 114,036
Interest expense 367 380 423 486 600 643 724 869 1,656 2,836 5,464
Net interest income 30,621 29,342 27,547 25,153 25,232 25,146 25,814 26,282 112,663 102,474 108,572
Provision for (recovery of) credit/loan losses 3,416 685 510 1,961 (846) (1,394) (2,230) (4,001) 6,572 (8,471) 12,668
Net interest income after provision 27,205 28,657 27,037 23,192 26,078 26,540 28,044 30,283 106,091 110,945 95,904
Noninterest income, excluding net gain (loss) on sale of securities 9,184 9,950 8,854 9,194 9,215 8,720 8,797 7,569      
Noninterest expense 20,730 21,145 21,255 19,986 21,701 18,836 19,361 18,820 83,116 78,718 79,625
Income before income taxes 15,659 17,462 14,636 12,400 13,592 16,424 17,480 19,032 60,157 66,528 46,112
Income tax expense 3,076 4,111 3,423 2,885 3,037 3,816 4,077 4,430 13,495 15,360 10,186
Net income $ 12,583 $ 13,351 $ 11,213 $ 9,515 $ 10,555 $ 12,608 $ 13,403 $ 14,602 $ 46,662 $ 51,168 $ 35,926
Basic (in dollars per share) $ 0.78 $ 0.82 $ 0.67 $ 0.57 $ 0.62 $ 0.73 $ 0.77 $ 0.83 $ 2.82 $ 2.95 $ 2.02
Diluted (in dollars per share) 0.77 0.81 0.67 0.56 0.62 0.73 0.76 0.82 2.82 2.94 2.02
Dividends per common share (in dollars per share) $ 0.29 $ 0.29 $ 0.27 $ 0.27 $ 0.27 $ 0.27 $ 0.25 $ 0.25 $ 1.12 $ 1.04 $ 1.00
Weighted average common shares outstanding, basic (in shares) 16,229,289 16,378,022 16,662,817 16,817,284 16,974,005 17,221,244 17,486,182 17,669,937 16,519,848 17,335,615 17,781,748
Weighted average diluted shares outstanding (in shares) 16,281,922 16,413,202 16,682,615 16,864,515 17,038,980 17,279,576 17,536,144 17,729,185 16,562,257 17,402,936 17,815,380