LANDMARK BANCORP INC, 10-K filed on 3/27/2024
Annual Report
v3.24.1
Cover - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Mar. 27, 2024
Jun. 30, 2023
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Dec. 31, 2023    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2023    
Current Fiscal Year End Date --12-31    
Entity File Number 0-33203    
Entity Registrant Name LANDMARK BANCORP, INC.    
Entity Central Index Key 0001141688    
Entity Tax Identification Number 43-1930755    
Entity Incorporation, State or Country Code DE    
Entity Address, Address Line One 701 Poyntz Avenue    
Entity Address, City or Town Manhattan    
Entity Address, State or Province KS    
Entity Address, Postal Zip Code 66502    
City Area Code (785)    
Local Phone Number 565-2000    
Title of 12(b) Security Common Stock, par value $0.01 per share    
Trading Symbol LARK    
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 Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 81.3
Entity Common Stock, Shares Outstanding   5,468,867  
Documents Incorporated by Reference Portions of the Proxy Statement for the Annual Meeting of Stockholders of the registrant to be held on May 22, 2024, are incorporated by reference in Part III hereof, to the extent indicated herein.    
ICFR Auditor Attestation Flag false    
Document Financial Statement Error Correction [Flag] false    
Auditor Name Crowe LLP    
Auditor Location Dallas, Texas    
Auditor Firm ID 173    
v3.24.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Assets    
Cash and cash equivalents $ 27,101 $ 23,156
Interest-bearing deposits at other banks 4,918 9,084
Investment securities available-for-sale, at fair value 452,769 489,306
Investment securities, held-to-maturity, net of allowance for credit losses of $91 and $0, fair value of $3,049 and $3,452 3,555 3,524
Bank stocks, at cost 8,123 5,470
Loans, net of allowance for credit losses of $10,608 and $8,791 937,619 841,149
Loans held for sale, at fair value 853 2,488
Bank owned life insurance 38,333 37,323
Premises and equipment, net 19,709 24,327
Goodwill 32,377 32,199
Other intangible assets, net 3,241 4,006
Mortgage servicing rights 3,158 3,813
Real estate owned, net 928 934
Accrued interest and other assets 28,988 26,088
Total assets 1,561,672 1,502,867
Deposits:    
Non-interest-bearing demand 367,103 410,142
Money market and checking 613,613 626,659
Savings 152,381 170,570
Certificates of deposit 183,154 93,278
Total deposits 1,316,251 1,300,649
Federal Home Loan Bank and other borrowings 64,662 17,200
Subordinated debentures 21,651 21,651
Repurchase agreements 12,714 29,402
Accrued interest and other liabilities 19,480 22,532
Total liabilities 1,434,758 1,391,434
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.01 par value per share, 200,000 shares authorized; none issued
Common stock, $0.01 par value per share, 7,500,000 shares authorized; 5,481,407 and 5,473,894 shares issued at December 31, 2023 and 2022, respectively 55 52
Additional paid-in capital 89,208 84,273
Retained earnings 54,282 52,174
Treasury stock, at cost; 3,812 and 0 shares at December 31, 2023 and 2022, respectively (75)
Accumulated other comprehensive loss (16,556) (25,066)
Total stockholders’ equity 126,914 111,433
Total liabilities and stockholders’ equity $ 1,561,672 $ 1,502,867
v3.24.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 91
Held-to-Maturity, Fair Value 3,049 3,452
Allowance for loans losses $ 10,608 $ 8,791
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 200,000 200,000
Preferred stock, shares issued 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 7,500,000 7,500,000
Common stock, shares issued 5,481,407 5,473,894
Treasury stock, shares 3,812 0
v3.24.1
Consolidated Statements of Earnings - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Interest income:      
Loans $ 51,753 $ 33,473 $ 33,612
Investment securities:      
Taxable 9,594 6,414 3,005
Tax-exempt 3,094 3,018 3,022
Interest-bearing deposits at banks 242 321 187
Total interest income 64,683 43,226 39,826
Interest expense:      
Deposits 15,254 2,776 1,023
FHLB and other borrowings 4,048 584
Subordinated debentures 1,590 840 472
Repurchase agreements 499 146 11
Total interest expense 21,391 4,346 1,506
Net interest income 43,292 38,880 38,320
Provision for credit losses 349 500
Net interest income after provision for credit losses 42,943 38,880 37,820
Non-interest income:      
Fees and service charges 10,220 9,651 8,857
Gains on sales of loans, net [1] 2,269 3,444 10,487
Increase in cash surrender value of bank owned life insurance [1] 913 780 686
(Losses) gains on sales of investment securities, net (1,246) (1,103) 1,138
Other 1,074 928 1,093
Total non-interest income 13,230 13,700 22,261
Non-interest expense:      
Compensation and benefits 22,681 20,405 20,157
Occupancy and equipment 5,565 5,118 4,482
Data processing 1,940 1,580 2,016
Amortization of mortgage servicing rights and other intangibles 1,844 1,446 1,601
Professional fees 2,452 1,892 1,831
Acquisition costs 3,398
Other 7,501 7,431 7,169
Total non-interest expense 41,983 41,270 37,256
Earnings before income taxes 14,190 11,310 22,825
Income tax expense 1,954 1,432 4,814
Net earnings $ 12,236 $ 9,878 $ 18,011
Earnings per share (1):      
Basic [2] $ 2.23 $ 1.80 $ 3.27
Diluted [2] $ 2.23 $ 1.79 $ 3.26
[1] Not within the scope of ASC 606.
[2] All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2023, 2022 and 2021.
v3.24.1
Consolidated Statements of Earnings (Parenthetical)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Consolidated Statements Of Earnings      
Stock dividend percentage 5.00% 5.00% 5.00%
v3.24.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Net earnings $ 12,236 $ 9,878 $ 18,011
Net unrealized holding gains (losses) on available-for-sale securities 10,025 (39,440) (6,236)
Less reclassification adjustment on losses (gains) included in earnings 1,246 1,103 (1,138)
Net unrealized gains (losses) 11,271 (38,337) (7,374)
Income tax effect on net (losses) gains included in earnings (305) (271) 279
Income tax effect on net unrealized holding (gains) losses (2,456) 9,662 1,528
Other comprehensive income (loss) 8,510 (28,946) (5,567)
Total comprehensive income (loss) $ 20,746 $ (19,068) $ 12,444
v3.24.1
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock, Common [Member]
AOCI Attributable to Parent [Member]
Total
Beginning balance, value at Dec. 31, 2020 $ 48 $ 72,230 $ 44,947 $ 9,447 $ 126,672
Net earnings 18,011 18,011
Other comprehensive income (loss) (5,567) (5,567)
Dividends paid [1] (3,818) (3,818)
Issuance of restricted common stock
Stock-based compensation 323 323
Exercise of stock options [2] 22 22
5% stock dividend 2 6,545 (6,547)
Ending balance, value at Dec. 31, 2021 50 79,120 52,593 3,880 135,643
Net earnings 9,878 9,878
Other comprehensive income (loss) (28,946) (28,946)
Dividends paid [1] (4,198) (4,198)
Issuance of restricted common stock
Stock-based compensation 295 295
Exercise of stock options [2]
5% stock dividend 2 4,858 (6,099) 1,239
Purchase of treasury shares (1,239) (1,239)
Ending balance, value at Dec. 31, 2022 52 84,273 52,174 (25,066) 111,433
Cumulative effect of change in accounting principle from implementation of ASU 2016-13 (1,204) (1,204)
Beginning balance, value at Jan. 1, 2023 52 84,273 50,970 (25,066) 110,229
Net earnings 12,236 12,236
Other comprehensive income (loss) 8,510 8,510
Dividends paid [1] (4,390) (4,390)
Issuance of restricted common stock
Stock-based compensation 352 352
Exercise of stock options [2] 52 52
5% stock dividend 3 4,531 (4,534)
Purchase of treasury shares (75)   (75)
Ending balance, value at Dec. 31, 2023 $ 55 $ 89,208 $ 54,282 $ (75) $ (16,556) $ 126,914
[1] Dividends per share have been adjusted to give effect to the 5% stock dividends paid during December 2023, 2022 and 2021.
[2] Shares from the exercise of stock options are shown net of forfeitures related to cashless exercises.
v3.24.1
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]      
Dividends paid per share $ 0.80 $ 0.76 $ 0.69
Issue of restricted common stock, shares 5,192 17,551 2,880
Exercise of stock options, shares 2,693 112 6,172
Percentage of stocks dividend 5.00% 5.00% 5.00%
Stock dividends, shares 260,640 247,831 237,569
Purchase of treasury shares 3,812 49,721  
Percentage of stocks dividend 5.00% 5.00% 5.00%
v3.24.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:      
Net earnings $ 12,236,000 $ 9,878,000 $ 18,011,000
Adjustments to reconcile net earnings to net cash provided by operating activities:      
Provision for credit losses 349,000 500,000
Valuation allowance on real estate owned 6,000 354,000 48,000
Amortization of investment security premiums, net 240,000 1,481,000 2,078,000
Accretion of purchase accounting adjustments (993,000) (460,000) (55,000)
Amortization of mortgage servicing rights and intangibles 1,844,000 1,446,000 1,601,000
Depreciation 1,270,000 1,134,000 997,000
Increase in cash surrender value of bank owned life insurance [1] (913,000) (780,000) (686,000)
Stock-based compensation 352,000 295,000 323,000
Deferred income taxes 404,000 (1,190,000) 808,000
Net loss (gain) on investment securities 1,246,000 1,103,000 (1,138,000)
Net (gain) loss on sales of premises and equipment and foreclosed assets (1,000) (114,000) 5,000
Net gains on sales of loans [1] (2,269,000) (3,444,000) (10,487,000)
Proceeds from sale of loans 80,475,000 145,923,000 344,187,000
Origination of loans held for sale (76,995,000) (140,990,000) (324,908,000)
Changes in assets and liabilities:      
Accrued interest and other assets (1,276,000) 5,146,000 611,000
Accrued interest, expenses and other liabilities (3,371,000) 4,998,000 (736,000)
Net cash provided by operating activities 12,604,000 24,780,000 31,159,000
Cash flows from investing activities:      
Net (increase) decrease in loans (97,361,000) (73,571,000) 47,840,000
Net change in interest-bearing deposits at banks 4,150,000 (1,728,000) (1,918,000)
Maturities and prepayments of investment securities 54,537,000 53,877,000 60,904,000
Purchases of investment securities (29,112,000) (226,336,000) (174,748,000)
Proceeds from sale of available-for-sale securities 20,913,000 52,597,000 16,623,000
Redemption of bank stocks 11,192,000 4,208,000 2,418,000
Purchase of bank stocks (13,845,000) (6,074,000) (850,000)
Net cash paid in bank acquisition (572,000)
Proceeds from sales of premises and equipment and foreclosed assets 7,000 1,379,000 601,000
Purchase of bank owned life insurance (6,000,000)
Premiums paid on bank owned life insurance (97,000) (63,000)
Purchases of premises and equipment, net (995,000) (876,000) (1,324,000)
Net cash used in investing activities (50,611,000) (197,159,000) (56,454,000)
Cash flows from financing activities:      
Net increase in deposits 15,591,000 1,758,000 132,454,000
Federal Home Loan Bank advance borrowings 727,629,000 327,360,000
Federal Home Loan Bank advance repayments (677,815,000) (326,160,000)
Proceeds from other borrowings 10,065,000
Repayments on other borrowings (2,352,000) (1,065,000)
Change in repurchase agreements (16,688,000) (199,000) 1,032,000
Proceeds from exercise of stock options 52,000 22,000
Payment of dividends (4,390,000) (4,198,000) (3,818,000)
Purchase of treasury stock (75,000) (1,239,000)
Net cash provided by financing activities 41,952,000 6,322,000 129,690,000
Net increase (decrease) in cash and cash equivalents 3,945,000 (166,057,000) 104,395,000
Cash and cash equivalents at beginning of year 23,156,000 189,213,000 84,818,000
Cash and cash equivalents at end of year 27,101,000 23,156,000 189,213,000
Supplemental disclosure of cash flow information:      
Cash payments paid during the year for income taxes 55,000 1,104,000 4,458,000
Cash paid during the year for interest 19,851,000 4,032,000 1,549,000
Cash paid during the year for operating leases 156,000 175,000 141,000
Supplemental schedule of noncash investing and financing activities:      
Transfer of loans to real estate owned 1,264,000
Transfer of premises and equipment to real estate held for sale 4,343,000
Operating lease asset and related liability recorded 61,000 219,000
Bank acquisition:      
Fair value of liabilities assumed 181,350,000
Fair value of assets acquired $ 200,033,000
[1] Not within the scope of ASC 606.
v3.24.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(1) Summary of Significant Accounting Policies

 

Principles of Consolidation. The accompanying consolidated financial statements include the accounts of Landmark Bancorp, Inc. and its wholly owned subsidiaries, Landmark National Bank and Landmark Risk Management, Inc. All intercompany balances and transactions have been eliminated in consolidation. The Bank, considered a single operating segment, is principally engaged in the business of attracting deposits from the general public and using such deposits, together with borrowings and other funds, to originate one-to-four family residential real estate, construction and land, commercial real estate, commercial, agriculture, municipal and consumer loans. Landmark Risk Management, Inc. provides property and casualty insurance coverage to the Company and the Bank for which insurance may not be currently available or economically feasible in today’s insurance marketplace.

 

Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Business Combinations. At the date of acquisition, the Company records the net assets acquired and liabilities assumed on the consolidated balance sheets at their estimated fair values, and goodwill is recognized for the excess purchase price over the estimated fair value of acquired net assets. The results of operations for acquired companies are included in the Company’s consolidated statements of earnings beginning at the acquisition date. Expenses arising from the acquisition activities are recorded in the consolidated statements of earnings during the period incurred.

 

Reserve Requirements. Regulations of the Federal Reserve require reserves to be maintained by all banking institutions according to the types and amounts of certain deposit liabilities. These requirements restrict a portion of the amounts shown as consolidated cash and due from banks from everyday usage in the operation of banks. As of December 31, 2023 and 2022, the Bank did not have a minimum reserve requirement.

 

Cash Flows. Cash and cash equivalents include cash on hand and amounts due from banks with original maturities of fewer than 90 days, and are carried at cost. Net cash flows are reported for customer loan and deposit transactions.

 

Interest-Bearing Deposits in Banks. Interest-bearing deposits in other banks include investments in certificates of deposits with original maturities greater than 90 days, and are carried at cost.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), commonly referred to as “CECL.” The provisions of the update eliminated the probable initial recognition threshold under previous GAAP which requires reserves to be based on an incurred loss methodology. Under CECL, reserves required for financial assets measured at amortized cost reflect an organization’s estimate of all expected credit losses over the expected term of the financial asset and thereby require the use of reasonable and supportable forecasts to estimate future credit losses. Because CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held-to-maturity debt securities. Under the provisions of the update, credit losses recognized on available-for-sale debt securities are presented as an allowance as opposed to a write-down. In addition, CECL modified the accounting for purchased loans. Under prior GAAP, a purchased loan’s contractual balance was adjusted to fair value through a credit discount, and no reserve was recorded on the purchased loan upon acquisition. Under CECL loans determined to be purchased credit deteriorated have an allowance for credit losses established through purchase accounting. Finally, increased disclosure requirements under CECL oblige organizations to present credit quality disclosures disaggregated by the year of origination or vintage. FASB expects that the evaluation of underwriting standards and credit quality trends by financial statement users will be enhanced with the additional vintage disclosures. In October 2019, the FASB approved a change in the effective dates for CECL which delayed the effective date to fiscal years beginning after December 15, 2022 for smaller reporting companies.

 

On January 1, 2023, the Company adopted CECL. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity investment securities. It also applies to off-balance credit exposures not accounted for as insurance (loan commitments and standby letters of credit). In addition, ASC 326 made changes to the accounting for available-for-sale investment securities management does not intend to sell or believes that it is more likely than not they will be required to sell.

 

 

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP requirements. The adoption of CECL resulted in an increase in the allowance for credit losses on loans of $1.5 million, an initial allowance for credit losses on held-to-maturity investment securities of $72,000, an increase in deferred tax assets of $391,000 and a decrease in retained earnings of $1.2 million. The increases in allowance for credit losses is primarily due to moving to a weighted average remaining maturity allowance methodology and the transition of purchase accounting discounts on loans from an adjustment to amortized cost in the allowance calculation.

 

The following table illustrates the impact of ASC 326:

(Dollars in thousands)  As reported under ASC 326   Pre-ASC 326 adoption   Impact of ASC 326 adoption 
   January 1, 2023 
(Dollars in thousands)  As reported under ASC 326   Pre-ASC 326 adoption   Impact of ASC 326 adoption 
             
Allowance for credit losses:               
Held-to-maturity investment securities  $72   $-   $72 
                
One-to-four family residential real estate loans  $1,677   $655   $1,022 
Construction and land loans   166    117    49 
Commercial real estate loans   4,221    3,158    1,063 
Commercial loans   2,898    2,753    145 
Paycheck protection program loans   -    -    - 
Agriculture loans   1,142    1,966    (824)
Municipal loans   16    5    11 
Consumer loans   194    137    57 
Total allowance for credit losses for loans  $10,314   $8,791   $1,523 
                
Unfunded loan commitments  $170   $170   $- 

 

Investment Securities. Investment securities are classified as held-to-maturity when management has the positive intent and ability to hold them to maturity. Securities are classified as available-for-sale when they might be sold before maturity. Held-to-maturity securities are carried at amortized cost while available-for-sale securities are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

 

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Realized gains and losses on sales of available-for-sale securities are recorded on a trade date basis and are calculated using the specific identification method.

 

Allowance for Credit Losses – Held-to-Maturity Investment Securities. Management measures expected credit losses on held-to-maturity investment securities on a collective basis by major security type. Accrued interest is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical loss information adjusted for current conditions and reasonable and supportable forecasts.

 

 

Allowance for Credit Losses – Available-for-Sale Investment Securities. For available-for-sale investment securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, the current interest rate environment, changes to rating of the security or security issuer, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected was less than the amortized cost basis, a credit loss exists and an allowance for credit losses would be recorded for the credit loss, which is limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for or reversal of credit loss expense. Losses are charged against the allowance for credit losses when the Company determines the available-for-sale security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. The Company does not estimate credit losses on available-for-sale security accrued interest receivable.

 

Bank Stocks. Bank stocks are investments acquired for regulatory purposes and borrowing availability and are accounted for at cost. The cost of such investments represents their redemption value as such investments do not have a readily determinable fair value. The Company evaluates bank stocks for other-than-temporary impairment by analyzing the ultimate recoverability based on a credit analysis of the issuer.

 

Acquired Loans. Acquired loans are recorded at estimated fair value at the time of acquisition. The Company’s acquired loans were not acquired with deteriorated credit quality. Estimated fair values of acquired loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, the expected timing of cash flows, classification status, fixed or variable interest rate, term of loan and whether or not the loan is amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Discounts or premiums created when acquired loans are recorded at their estimated fair values are accreted or amortized over the remaining term of the loan as an adjustment to the related loan’s yield. Similar to originated loans described below, the accrual of interest income on acquired loans is discontinued when the collection of principal or interest, in whole or in part, is doubtful.

 

Loans. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. The amortized cost is the principal balance outstanding net of previous charge-offs, and for purchased loans, net of unamortized purchase premiums and discounts. Interest income is accrued on the unpaid principal balance. Origination fees received on loans held in portfolio and the estimated direct costs of origination are deferred and amortized to interest income using the level yield method without anticipating prepayments.

 

The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of the principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual. Loans are evaluated individually and are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

 

Allowance for Credit Losses - Loans. The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans. The analysis is updated on a quarterly basis based on historical loss information adjusted for current conditions and reasonable and supportable forecasts. Additionally, the Company considers asset quality trends, composition and trends in the loan portfolio, underlying collateral values, industry trends and other pertinent factors, including regulatory recommendations. The level of the allowance for credit losses maintained by management is believed adequate to absorb all expected future losses expected in the loan portfolio at the balance sheet date. The allowance is adjusted through provision for credit losses and charge-offs, net of recoveries of amounts previously charged off.

 

The allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses.

 

 

One-to-Four Family Residential Real Estate. One-to-four family residential real estate loans consists primarily of loans secured by 1-4 family residential properties. Repayment is primarily dependent on the personal cash flow of the borrower.

 

Construction and Land. Construction and land loans consist primarily of loans to facilitate the development of both residential and commercial real estate. Repayment is primarily dependent on the completion of the development and refinancing to longer term financing.

 

Commercial Real Estate. Commercial real estate loans consist primarily of loans secured by office buildings, industrial buildings, warehouses, retail buildings and multi-family housing and are primarily owner-occupied. For such loans, repayment is largely dependent upon the operation of the borrower’s business.

 

Commercial. Commercial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. These loans are generally secured by equipment, inventory and accounts receivable of the borrower and repayment is primarily dependent on business cash flows.

 

Agriculture. Agriculture loans include operating and real estate loans to agriculture enterprises. Generally, the borrower’s ability to repay is based on the cash flows from farming operations.

 

Municipal. Municipal loans are generally related to equipment leasing or general fund loans. Repayment is primarily dependent on the tax revenue of the municipal entity.

 

Consumer. Consumer loans include automobile, boat, home improvement and home equity loans. Repayment is primarily dependent on the personal cash flow of the borrower.

 

The Company utilizes a weighted average remaining maturity allowance methodology to calculate the quantitative component of the allowance for credit losses. Historical loss rates are adjusted for current conditions and reasonable and supportable forecasts. Following the economic forecast period loss rates revert back to historical loss rates over a reasonable period of time. Additional adjustments for qualitative factors are included to quantify the risks within each of the loan categories that are not included in the historical loss rates or economic projections. These adjustments include but are not limited to: changes in economic and business conditions, changes in policies, procedures and underwriting, changes in management or staff and their related experience, changes in nature and volume of the portfolio, changes in loan review, changes in collateral values, changes in past due and nonaccrual loans, changes in competition, legal and regulatory issues, changes in concentrations and other qualitative factors that could affect credit losses. The data for the allowance calculation may be obtained from internal or external sources.

 

Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated loan pools. Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral.

 

The Company estimates expected credit losses over the contractual term of obligations to extend credit, unless the obligation is unconditionally cancellable. The allowance for off-balance-sheet exposures is adjusted through the provision for credit losses. 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 used to estimated credit losses on loans.

 

In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures which eliminated the recognition and measurement guidance for troubled debt restructurings (“TDRs”) by creditors in ASC 310-40. The update also enhanced disclosure required for loan restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity will apply the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Additionally, the amendments to this ASU require a public business entity to disclose current period gross charge-offs by year of origination for loans in the vintage disclosures.

 

 

On January 1, 2023, the Company adopted ASU 2022-02, electing the prospective approach. The adoption did not have a material effect on the Company’s operating results or financial condition. The disclosures in this document have been updated to reflect the new guidance.

 

Loans Modifications. Loan modifications, including modifications to borrowers experiencing financial difficulty, are treated as a new loan if two conditions are met. The terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks and modifications to the terms of the original loan are more than minor.

 

Loans Held for Sale. Mortgage loans originated and intended for sale in the secondary market are carried at fair value. The fair value includes the servicing value of the loans as well as any accrued interest.

 

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

 

Mortgage Servicing Rights. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be recorded in amortization of intangibles in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

 

Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are included in amortization expense on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds, default rates and losses.

 

Transfers of Financial Assets. Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

 

Mortgage Loan Repurchase Reserve. The Company routinely sells one-to-four family residential mortgage loans to secondary mortgage market investors. Under standard representations and warranties clauses in the Company’s mortgage sale agreements, the Company may be required to repurchase mortgage loans sold or reimburse the investors for credit losses incurred on those loans if a breach of the contractual representations and warranties occurred. The Company establishes a mortgage repurchase liability in an amount equal to management’s estimate of losses on loans for which the Company could have a repurchase obligation or loss reimbursement. The estimated liability incorporates the volume of loans sold in previous periods, default expectations, historical investor repurchase demand and actual loss severity. Provisions to the mortgage repurchase reserve reduce gains on sales of loans.

 

Premises and Equipment. Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in earnings as incurred.

 

Bank Owned Life Insurance. The Company has purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

 

 

Goodwill and Intangible Assets. Goodwill is not amortized; however, it is tested for impairment at each calendar year end or more frequently when events or circumstances dictate. The Company performed a qualitative assessment of factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount as of December 31, 2023. This assessment included a review of macroeconomic conditions, industry and market specific considerations and other relevant factors including the Company’s market capitalization, with control premiums and valuation multiples, compared to recent financial industry acquisition multiples for similar institutions to estimate the fair value of the Company’s single reporting unit. A goodwill impairment would be recorded for the amount that the carrying value exceeds the implied fair value.

 

Intangible assets include core deposit intangibles. Core deposit intangible assets are amortized over their estimated useful life of ten years on an accelerated basis. When facts and circumstances indicate potential impairment, the Company will evaluate the recoverability of the intangible asset’s carrying value, using estimates of undiscounted future cash flows over the remaining asset life. Any impairment loss is measured by the excess of carrying value over fair value.

 

Income Taxes. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. Judgment is required in assessing the future tax consequences of events that have been recognized in financial statements or tax returns. Uncertain income tax positions will be recognized only if it is more likely than not that they will be sustained upon examination by taxing authorities, based upon their technical merits. Once that standard is met, the amount recorded will be the largest amount of benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense in the consolidated statements of earnings. The Company assesses deferred tax assets to determine if the items are more likely than not to be realized, and a valuation allowance is established for any amounts that are not more likely than not to be realized.

 

Loan Commitments and Related Financial Instruments. Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

 

Loss Contingencies. Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

 

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of tax which are also recognized as separate components of equity.

 

Real Estate Owned. Assets acquired through, or in lieu of, foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

 

Stock-Based Compensation. The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options, which is recognized as compensation expense over the option vesting period, on a straight-line basis, which is typically four years. The fair value of restricted common stock is equal to the Company’s stock price on the grant date, which is recognized as compensation expense on a straight-line basis over the vesting period. The Company accounts for forfeitures as they occur.

 

Earnings per Share. Basic earnings per share represent net earnings divided by the weighted average number of common shares outstanding during the year. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. The diluted earnings per share computation for 2023, 2022 and 2021 excluded 166,561, 51,718 and 56,324, respectively, of unexercised stock options because their inclusion would have been anti-dilutive.

 

 

The shares used in the calculation of basic and diluted earnings per share, which have been adjusted to give effect to the 5% common stock dividends paid by the Company in December 2023, 2022 and 2021, are shown below:

 

   2023   2022   2021 
(Dollars in thousands, except per share amounts)  Years ended December 31, 
   2023   2022   2021 
Net earnings available to common shareholders  $12,236   $9,878   $18,011 
                
Weighted average common shares outstanding - basic   5,477,700    5,492,286    5,506,487 
Assumed exercise of stock options   3,100    15,767    13,303 
Weighted average common shares outstanding - diluted   5,480,800    5,508,053    5,519,790 
Earnings per share:               
Basic  $2.23   $1.80   $3.27 
Diluted  $2.23   $1.79   $3.26 

 

Derivative Financial Instruments. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. In order to hedge the change in interest rates resulting from its commitments to fund the loans, the Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gains on sales of loans.

 

Dividend Restriction. Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders.

 

Fair Value of Financial Instruments. Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

 

Reclassifications. Some items in the prior year financial statements were reclassified to the current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.

 

 
v3.24.1
Impact of Recent Accounting Pronouncements
 12 Months Ended
Dec. 31, 2023
Accounting Changes and Error Corrections [Abstract]  
Impact of Recent Accounting Pronouncements

(2) Impact of Recent Accounting Pronouncements

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), commonly referred to as “CECL.” The Company adopted CECL effective January 1, 2023. The impact of the adoption and additional details are included in Note 1.

 

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this update simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. In October 2019, the FASB approved a change in the effective dates for ASU 2017-04 which delayed the effective date to fiscal years beginning after December 15, 2022 for smaller reporting companies. The Company adopted ASU 2017-04 effective January 1, 2023. The adoption of ASU 2017-04 did not have a material effect on the Company’s operating results or financial condition.

 

 

In May 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. Reference rate reform relates to the effects undertaken to eliminate certain reference rates such as the London Interbank Offered Rate (“LIBOR”) and introduce new reference rates that may be based on larger or more liquid observations and transactions. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other contracts. Generally, ASU 2020-04 would allow entities to consider contract modifications due to reference rate reform to be a continuation of an existing contract; thus, the Company would not have to determine if the modification is considered insignificant. The standard was effective upon issuance and the amendments may be applied prospectively through December 31, 2022 such that changes made to contracts beginning on or after January 1, 2023 would not apply. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date, which extended the sunset date from December 31, 2022 to December 31, 2024. As of December 31, 2023, the Company does not have any instruments tied to LIBOR. The adoption of ASU 2020-04 did not have a material effect on the Company’s operating results or financial condition.

 
v3.24.1
Acquisition
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisition

(3) Acquisition

 

On October 1, 2022, the Company acquired 100% of the outstanding common shares of Freedom Bancshares, Inc., in exchange for $33.4 million of cash. Freedom Bancshares, Inc. was the holding company of Freedom Bank. Freedom Bank was founded in 2006 and operated out of a single location in Overland Park, Kansas. The acquisition was effected through the merger of Freedom Bancshares, Inc. with and into the Bank. The purchase price was financed with $10.0 million of debt issued by Company and through cash received from a dividend from the Bank.

 

The transaction was accounted for using the acquisition method of accounting, and as such, assets acquired and liabilities assumed were recorded at their estimated fair value on the acquisition date. Acquired loans were recorded at fair value at the acquisition date and no separate valuation allowance was established. No purchased credit impaired loans were acquired. Market value adjustments are accreted or amortized on a level yield basis over the expected term of the asset or liability. Additionally, the Company recorded a core deposit intangible of $4.2 million. The core deposit intangible is amortized on an accelerated basis over the estimated useful life of the deposits. Goodwill of $14.7 million from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the banks. The goodwill is not deductible for income tax purposes. During 2023, goodwill was increased by $178,000 due to adjustments related to filing final tax returns for Freedom Bancshares, Inc and Freedom Bank, which are reflected in the table below. The Company incurred $3.4 million of acquisition related costs relating to the acquisition during 2022, of which $3.1 million was deductible for income tax purposes.

 

Results of the operations of the acquired business are included in the income statement from the effective date of the acquisition.

 

 

The following table summarizes the consideration paid for Freedom Bancshares, Inc. and the amounts of the assets acquired and liabilities assumed at the acquisition date:

 

   As of 
(Dollars in thousands)  October 1, 2022 
     
Cash paid in acquisition  $33,350 
      
Assets acquired:     
Cash and cash equivalents   32,778 
Investment securities   33,126 
Bank stocks   699 
Loans   113,910 
Bank owned life insurance   4,374 
Premises and equipment   3,782 
Core deposit intangibles   4,170 
Other   7,016 
Total assets acquired   199,855 
      
Liabilities assumed:     
Deposits   150,410 
FHLB advances   7,000 
Other borrowings   22,198 
Other liabilities   1,742 
Total liabilities assumed   181,350 
      
Net assets acquired   18,505 
      
Goodwill  $14,845 

 

The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables, which have shown evidence of credit deterioration since origination were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans. Receivables acquired that were not subject to these requirements include non-impaired loans with a fair value and gross contractual amounts receivable of $113.9 million and $118.1 million on the date of acquisition.

 

Unaudited pro forma consolidated operating results for the years ended December 31, 2022 and December 31, 2021, as if the acquisition was consummated on January 1 of that year are as follows:

 

         
(Dollars in thousands, except per share amounts)  Years ended December 31, 
   2022   2021 
         
Net interest income  $44,750   $45,942 
Net earnings   9,098    19,922 
Earnings per share (1):          
Basic (1)   1.66    3.62 
Diluted (1)   1.65    3.61 

 

(1)All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2022 and 2021.

 

 
v3.24.1
Investment Securities
 12 Months Ended
Dec. 31, 2023
Schedule of Investments [Abstract]  
Investment Securities

(4) Investment Securities

 

A summary of investment securities available-for-sale and securities held-to-maturity is as follows:

  

(Dollars in thousands)  As of December 31, 2023 
       Gross   Gross     
   Amortized   unrealized   unrealized   Estimated 
   cost   gains   losses   fair value 
                 
Available-for-sale:                    
U. S. treasury securities  $99,340   $-   $(3,673)  $95,667 
Municipal obligations, tax exempt   122,775    186    (2,338)   120,623 
Municipal obligations, taxable   82,926    225    (4,068)   79,083 
Agency mortgage-backed securities   169,656    247    (12,507)   157,396 
Total available-for-sale  $474,697   $658   $(22,586)  $452,769 
                     
Held-to-maturity:                    
Other  $3,555   $-   $(506)  $3,049 
Total held-to-maturity  $3,555   $-   $(506)  $3,049 

 

(Dollars in thousands)  As of December 31, 2022 
       Gross   Gross     
   Amortized   unrealized   unrealized   Estimated 
   cost   gains   losses   fair value 
                 
Available-for-sale:                    
U. S. treasury securities  $130,684   $-   $(7,573)  $123,111 
U. S. federal agency obligations   2,002    -    (14)   1,988 
Municipal obligations, tax exempt   130,848    59    (3,645)   127,262 
Municipal obligations, taxable   73,520    14    (6,290)   67,244 
Agency mortgage-backed securities   185,451    172    (15,922)   169,701 
Total available-for-sale  $522,505   $245   $(33,444)  $489,306 
                     
Held-to-maturity:                    
Other  $3,524   $5   $(77)  $3,452 
Total held-to-maturity  $3,524   $5   $(77)  $3,452 

 

The tables above show that some of the securities in the available-for-sale and held-to-maturity investment portfolio had unrealized losses, or were temporarily impaired, as of December 31, 2023 and 2022. This temporary impairment represents the estimated amount of loss that would be realized if the securities were sold on the valuation date.

 

 

The following table summarizes securities available-for-sale in an unrealized loss positions for which an allowance for credit losses has not been recorded at December 31, 2023 along with length of time in a continuous unrealized loss position.

 

(Dollars in thousands)      As of December 31, 2023 
       Less than 12 months   12 months or longer   Total 
   No. of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
Available-for-sale  securities   value   losses   value   losses   value   losses 
U. S. treasury securities   47   $1,129   $(7)  $93,833   $(3,666)  $94,962   $(3,673)
Municipal obligations, tax exempt   229    31,468    (337)   64,962    (2,001)   96,430    (2,338)
Municipal obligations, taxable   110    17,278    (151)   52,212    (3,917)   69,490    (4,068)
Agency mortgage-backed securities   100    6,480    (68)   128,512    (12,439)   134,992    (12,507)
Total available-for-sale   486   $56,355   $(563)  $339,519   $(22,023)  $395,874   $(22,586)

 

Securities which were temporarily impaired are shown below, along with the length of time in a continuous unrealized loss position.

 

(Dollars in thousands)      As of December 31, 2022 
       Less than 12 months   12 months or longer   Total 
   No. of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
Available-for-sale  securities   value   losses   value   losses   value   losses 
U. S. treasury securities   67   $85,988   $(4,591)  $37,123   $(2,982)  $123,111   $(7,573)
U. S. federal agency obligations   1    1,988    (14)   -    -    1,988    (14)
Municipal obligations, tax exempt   274    107,262    (3,020)   8,495    (625)   115,757    (3,645)
Municipal obligations, taxable   108    54,746    (5,006)   7,571    (1,284)   62,317    (6,290)
Agency mortgage-backed securities   100    78,971    (4,550)   79,882    (11,372)   158,853    (15,922)
Total available-for-sale   550   $328,955   $(17,181)  $133,071   $(16,263)  $462,026   $(33,444)
                                    
Other   6   $3,009   $(77)  $-   $-   $3,009   $(77)
Total   6   $3,009   $(77)  $-   $-   $3,009   $(77)

 

The Company’s U.S. treasury portfolio consists of securities issued by the United States Department of the Treasury. The receipt of principal and interest on U.S. treasury securities is guaranteed by the full faith and credit of the U.S. government. Based on these factors, along with the Company’s intent to not sell the security and its belief that it was more likely than not that the Company will not be required to sell the security before recovery of its cost basis, the Company believed that the U.S. treasury securities identified in the tables above were temporarily impaired.

 

The Company’s portfolio of municipal obligations consists of both tax-exempt and taxable general obligations securities issued by various municipalities. As of December 31, 2023, the Company did not intend to sell and it is more likely than not that the Company will not be required to sell its municipal obligations in an unrealized loss position until the recovery of its cost basis. Due to the issuers’ continued satisfaction of the securities’ obligations in accordance with their contractual terms and the expectation that they will continue to do so, the evaluation of the fundamentals of the issuers’ financial condition and other objective evidence, the Company believed that the municipal obligations identified in the tables above were temporarily impaired.

 

The Company’s agency mortgage-backed securities portfolio consists of securities underwritten to the standards of and guaranteed by the government-sponsored agencies of FHLMC, FNMA and the GNMA. The receipt of principal, at par, and interest on agency mortgage-backed securities is guaranteed by the respective government-sponsored agency guarantor, such that the Company believed that its agency mortgage-backed securities did not expose the Company to credit-related losses. Based on these factors, along with the Company’s intent to not sell the securities and the Company’s belief that it was more likely than not that the Company will not be required to sell the securities before recovery of their cost basis, the Company believed that the agency mortgage-backed securities identified in the tables above were temporarily impaired.

 

 

The Company’s other investment securities portfolio consists of seven subordinated debentures issued by financial institutions. These investment securities were acquired in the Freedom Bank acquisition and classified as held-to-maturity. The securities were issued in 2021 and 2022 with a 10 year maturity and a fixed rate for five years. The securities are callable after the end of the fixed rate term. Due to the issuers’ continued satisfaction of the securities’ obligations in accordance with their contractual terms and the expectation that they will continue to do so, the evaluation of the fundamentals of the issuers’ financial condition and other objective evidence, the Company believed that the other securities identified in the tables above were temporarily impaired.

 

The following table provides information on the Company’s allowance for credit losses related to held-to-maturity investment securities.

 

(Dollars in thousands)    
Balance at January 1, 2023  $- 
Impact of adopting ASC 326   72 
Provision for credit losses   19 
Balance at December 31, 2023  $91 

 

The table below includes scheduled principal payments and estimated prepayments, based on observable market inputs, for agency mortgage-backed securities. Actual maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. The amortized cost and fair value of investment securities at December 31, 2023 are as follows:

 

   Amortized   Estimated 
(Dollars in thousands)  cost   fair value 
Available-for-sale:          
Due in less than one year  $37,665   $37,145 
Due after one year but within five years   244,383    232,810 
Due after five years but within ten years   142,669    134,262 
Due after ten years   49,980    48,552 
Total available-for-sale  $474,697   $452,769 
           
Held-to-maturity:          
Due after five years but within ten years  $3,555   $3,049 
Total held-to-maturity  $3,555   $3,049 

 

The Company has not sold any investment securities subsequent to December 31, 2023 and the date of this filing. Sales proceeds and gross realized gains and losses on sales of available-for-sale securities are as follows:

 

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
             
Sales proceeds  $20,913   $52,597   $16,623 
                
Realized gains  $-   $-   $1,138 
Realized losses   (1,246)   (1,103)   - 
Net realized (losses) gains  $(1,246)  $(1,103)  $1,138 

 

Securities with carrying values of $380.4 million and $420.8 million were pledged to secure public funds on deposit, repurchase agreements and as collateral for borrowings at December 31, 2023 and 2022, respectively. As of December 31, 2023, all of the Company’s investment securities were performing and there were no securities on non-accrual status. Except for U.S. treasuries and federal agency obligations, no investment in a single issuer exceeded 10% of consolidated stockholders’ equity.

 

 
v3.24.1
Bank Stocks
 12 Months Ended
Dec. 31, 2023
Bank Stocks  
Bank Stocks

(5) Bank Stocks

 

Bank stocks primarily consist of restricted investments in FHLB and Federal Reserve Bank (“FRB”) stock. The carrying value of the FHLB stock at December 31, 2023 was $5.0 million compared to $2.4 million at December 31, 2022. The carrying value of the FRB stock at December 31, 2023 and December 31, 2022 was $3.0 million. These securities are not readily marketable and are required for regulatory purposes and borrowing availability. Since there are no available market values, these securities are carried at cost. Redemption of these investments at par value is at the option of the FHLB or FRB, as applicable. Also included in Bank stocks are other miscellaneous investments in the common stock of various correspondent banks which are held for borrowing purposes and totaled $111,000 at December 31, 2023 and 2022.

 
v3.24.1
Loans and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Loans and Allowance for Credit Losses

(6) Loans and Allowance for Credit Losses

 

Loans consisted of the following:

  

(Dollars in thousands)  2023   2022 
   As of December 31, 
(Dollars in thousands)  2023   2022 
         
One-to-four family residential real estate loans  $302,544   $236,982 
Construction and land loans   21,090    22,725 
Commercial real estate loans   320,962    304,074 
Commercial loans   180,942    173,415 
Paycheck protection program loans   -    21 
Agriculture loans   89,680    84,283 
Municipal loans   4,507    2,026 
Consumer loans   28,931    26,664 
Total gross loans   948,656    850,190 
Net deferred loan (fees) costs and loans in process   (429)   (250)
Allowance for credit losses   (10,608)   (8,791)
Loans, net  $937,619   $841,149 

 

 

The following tables provide information on the Company’s allowance for credit losses by loan class and allowance methodology:

  

   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans    Agriculture loans   Municipal loans   Consumer loans   Total 
(Dollars in thousands) 
   Year ended December 31, 2023 
   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans    Agriculture loans   Municipal loans   Consumer loans   Total 
                                  
Allowance for credit losses:                                         
Balance at January 1, 2023  $655   $117   $3,158   $2,753    $1,966   $5   $137   $8,791 
Impact of adopting ASC 326   1,022    49    1,063    145     (824)   11    57    1,523 
Charge-offs   -    -    -    (479)    -    -    (371)   (850)
Recoveries   -    675    -    35     74    -    110    894 
Provision for credit losses   358    (691)   297    32     (26)   (1)   281    250 
Balance at December 31, 2023  $2,035   $150   $4,518   $2,486    $1,190   $15   $214   $10,608 

 

   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Paycheck protection loans   Agriculture loans   Municipal loans   Consumer loans   Total 
(Dollars in thousands)
   Year ended December 31, 2022 
   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Paycheck protection loans   Agriculture loans   Municipal loans   Consumer loans   Total 
                                     
Allowance for credit losses:                                             
Balance at January 1, 2022  $623   $138   $3,051   $2,613   $-   $2,221   $6   $123   $8,775 
Charge-offs   -    -    -    -    -    -    -    (336)   (336)
Recoveries   -    165    -    38    -    59    6    84    352 
Provision for credit losses   32    (186)   107    102    -    (314)   (7)   266    - 
Balance at December 31, 2022  $655   $117   $3,158   $2,753   $-   $1,966   $5   $137   $8,791 
                                              
Allowance for credit losses:                                             
Individually evaluated for loss  $-   $-   $-   $636   $-   $18   $-   $-   $654 
Collectively evaluated for loss   655    117    3,158    2,117    -    1,948    5    137    8,137 
Total  $655   $117   $3,158   $2,753   $-   $1,966   $5   $137   $8,791 
                                              
Loan balances:                                             
Individually evaluated for loss  $326   $412   $1,224   $812   $-   $1,319   $36   $-   $4,129 
Collectively evaluated for loss   236,656    22,313    302,850    172,603    21    82,964    1,990    26,664    846,061 
Total  $236,982   $22,725   $304,074   $173,415   $21   $84,283   $2,026   $26,664   $850,190 

 

(Dollars in thousands) 
   Year ended December 31, 2021 
   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Paycheck protection loans   Agriculture loans   Municipal loans   Consumer loans   Total 
                                     
Allowance for credit losses:                                             
Balance at January 1, 2021  $859   $181   $2,482   $2,388   $-   $2,690   $6   $169   $8,775 
Charge-offs   (81)   -    (540)   (72)   -    (50)   -    (235)   (978)
Recoveries   11    263    -    14    -    66    6    118    478 
Provision for credit losses   (166)   (306)   1,109    283    -    (485)   (6)   71    500 
Balance at December 31, 2021  $623   $138   $3,051   $2,613   $-   $2,221   $6   $123   $8,775 
                                              
Allowance for credit losses:                                             
Individually evaluated for loss  $-   $-   $-   $504   $-   $-   $-   $-   $504 
Collectively evaluated for loss   623    138    3,051    2,109    -    2,221    6    123    8,271 
Total  $623   $138   $3,051   $2,613   $-   $2,221   $6   $123   $8,775 
                                              
Loan balances:                                             
Individually evaluated for loss  $578   $794   $2,214   $1,029   $-   $2,067   $36   $-   $6,718 
Collectively evaluated for loss   165,503    26,850    196,258    131,125    17,179    92,200    2,014    24,541    655,670 
Total  $166,081   $27,644   $198,472   $132,154   $17,179   $94,267   $2,050   $24,541   $662,388 

 

 

The Company recorded net loan recoveries of $44,000 during 2023 compared to net loan charge recoveries of $16,000 during 2022 and net loan charge-offs of $500,000 during 2021.

 

The following table presents information on non-accrual status and loans past due over 89 days and still accruing:

  

   Non-accrual with no allowance for credit loss   Non-accrual with allowance for credit losses   Loans past due over 89 days still accruing 
(Dollars in thousands)  As of December 31, 2023 
   Non-accrual with no allowance for credit loss   Non-accrual with allowance for credit losses   Loans past due over 89 days still accruing 
             
One-to-four family residential real estate loans  $161   $31   $- 
Commercial loans   363    1,517    - 
Agriculture loans   295    -    - 
Consumer loans   24    -    - 
Total loans  $843   $1,548   $- 

 

The Company has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following table presents information on the amortized cost basis and collateral type of collateral-dependent loans:

 

Schedule of Amortized Cost Basis and Collateral Type 

(Dollars in thousands)  As of December 31, 2023
   Loan balance   Collateral Type
        
One-to-four family residential real estate loans  $192   First mortgage on residential real estate
Construction and land loans   192   First mortgage on residential or commercial real estate
Commercial real estate loans   1,205   First mortgage on commercial real estate
Commercial loans   2,054   Accounts receivable, equipment and real estate
Agriculture loans   682   Crops, livestock, machinery and real estate
Consumer loans   24   Personal property or second mortgages on real estate
Total loans  $4,349    

 

 

The following tables present information on impaired loans:

 

   Unpaid contractual principal   Impaired loan balance   Impaired loans without an allowance   Impaired loans with an allowance   Related allowance recorded   Year-to-date average loan balance   Year-to-date interest income recognized 
(Dollars in thousands) 
   As of December 31, 2022 
   Unpaid contractual principal   Impaired loan balance   Impaired loans without an allowance   Impaired loans with an allowance   Related allowance recorded   Year-to-date average loan balance   Year-to-date interest income recognized 
                             
One-to-four family residential real estate loans  $326   $326   $326   $-   $-   $357   $9 
Construction and land loans   843    412    412    -    -    243    10 
Commercial real estate loans   1,224    1,224    1,224    -    -    1,224    47 
Commercial loans   1,063    812    75    737    636    865    5 
Agriculture loans   1,402    1,319    1,301    18    18    1,433    64 
Municipal loans   36    36    36    -    -    36    1 
Total impaired loans  $4,894   $4,129   $3,374   $755   $654   $4,158   $136 

 

   As of December 31, 2021 
   Unpaid contractual principal   Impaired loan balance   Impaired loans without an allowance   Impaired loans with an allowance   Related allowance recorded   Year-to-date average loan balance   Year-to-date interest income recognized 
                             
One-to-four family residential real estate loans  $578   $578   $578   $-   $-   $590   $8 
Construction and land loans   2,401    794    794    -    -    895    16 
Commercial real estate loans   2,214    2,214    2,214    -    -    2,388    37 
Commercial loans   1,380    1,029    520    509    504    1,096    38 
Agriculture loans   2,235    2,067    2,067    -    -    2,420    67 
Municipal loans   36    36    36    -    -    36    1 
Total impaired loans  $8,844   $6,718   $6,209   $509   $504   $7,425   $167 

 

The Company’s key credit quality indicator is a loan’s performance status, defined as accruing or non-accruing. Performing loans are considered to have a lower risk of loss. Non-accrual loans are those which the Company believes have a higher risk of loss. The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of principal or interest is considered doubtful. There were no loans ninety days delinquent and accruing interest at December 31, 2023 or December 31, 2022.

 

 

The following tables present information on the Company’s past due and non-accrual loans by loan class:

  

   30-59 days delinquent and accruing   60-89 days delinquent and accruing   90 days or more delinquent and accruing   Total past due loans accruing   Non-accrual loans   Total past due and non-accrual loans   Total loans not past due 
(Dollars in thousands)  As of December 31, 2023 
   30-59 days delinquent and accruing   60-89 days delinquent and accruing   90 days or more delinquent and accruing   Total past due loans accruing   Non-accrual loans   Total past due and non-accrual loans   Total loans not past due 
                             
One-to-four family residential real estate loans  $85   $247   $-   $332   $192   $524   $302,020 
Construction and land loans   -    -    -    -    -    -    21,090 
Commercial real estate loans   153    -    -    153    -    153    320,809 
Commercial loans   399    332    -    731    1,880    2,611    178,331 
Paycheck protection program loans   -    -    -    -    -    -    - 
Agriculture loans   256    -    -    256    295    551    89,129 
Municipal loans   -    -    -    -    -    -    4,507 
Consumer loans   110    -    -    110    24    134    28,797 
Total  $1,003   $579   $-   $1,582   $2,391   $3,973   $944,683 
                                    
Percent of gross loans   0.11%   0.06%   0.00%   0.17%   0.25%   0.42%   99.58%

 

   As of December 31, 2022 
   30-59 days delinquent and accruing   60-89 days delinquent and accruing   90 days or more delinquent and accruing   Total past due loans accruing   Non-accrual loans   Total past due and non-accrual loans   Total loans not past due 
                             
One-to-four family residential real estate loans  $8   $72   $-   $80   $170   $250   $236,732 
Construction and land loans   -    -    -    -    195    195    22,530 
Commercial real estate loans   -    -    -    -    1,224    1,224    302,850 
Commercial loans   -    411    -    411    812    1,223    172,192 
Paycheck protection program loans   -    -    -    -    -    -    21 
Agriculture loans   -    180    -    180    925    1,105    83,178 
Municipal loans   -    -    -    -    -    -    2,026 
Consumer loans   67    -    -    67    -    67    26,597 
Total  $75   $663   $-   $738   $3,326   $4,064   $846,126 
                                    
Percent of gross loans   0.01%   0.08%   0.00%   0.09%   0.39%   0.48%   99.52%

 

Under the original terms of the Company’s non-accrual loans, interest earned on such loans for the years 2023, 2022 and 2021, would have increased interest income by $96,000, $137,000 and $309,000, respectively. No interest income related to non-accrual loans was included in interest income for the years ended December 31, 2023, 2022 and 2021.

 

 

The Company also categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Non-classified loans generally include those loans that are expected to be repaid in accordance with contractual loan terms. Classified loans are those that are assigned a special mention, substandard or doubtful risk rating using the following definitions:

 

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

 

Substandard: Loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged. Loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

 

Doubtful: Loans classified doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

 

 

The following table provides information on the Company’s risk category of loans by type and year of origination:

  

   2023   2022   2021   2020   2019   Prior   Revolving loans amortized cost   Revolving loans converted to term   Total 
(Dollars in thousands)  As of December 31, 2023 
   2023   2022   2021   2020   2019   Prior   Revolving loans amortized cost   Revolving loans converted to term   Total 
                                     
One-to-four family residential real estate loans                                             
Nonclassified  $95,290   $84,718   $42,533   $32,081   $12,776   $29,694   $5,097   $163   $302,352 
Classified   -    -    -    -    -    192    -    -    192 
Total  $95,290   $84,718   $42,533   $32,081   $12,776   $29,886   $5,097   $163   $302,544 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Construction and land loans                                             
Nonclassified  $6,283   $5,267   $5,367   $2,665   $916   $492   $100   $-   $21,090 
Classified   -    -    -    -    -    -    -    -    - 
Total  $6,283   $5,267   $5,367   $2,665   $916   $492   $100   $-   $21,090 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Commercial real estate loans                                             
Nonclassified  $41,644   $77,427   $58,327   $50,744   $30,551   $57,502   $3,017   $92   $319,304 
Classified   -    -    481    22    180    975    -    -    1,658 
Total  $41,644   $77,427   $58,808   $50,766   $30,731   $58,477   $3,017   $92   $320,962 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Commercial loans                                             
Nonclassified  $38,818   $32,764   $16,747   $15,511   $2,514   $4,386   $61,046   $4,121   $175,907 
Classified   226    2,000    158    460    57    -    1,952    182    5,035 
Total  $39,044   $34,764   $16,905   $15,971   $2,571   $4,386   $62,998   $4,303   $180,942 
Charge-offs  $-   $(28)  $(407)  $(44)  $-   $-   $-   $-   $(479)
Agriculture loans                                             
Nonclassified  $7,862   $11,718   $4,864   $4,092   $3,902   $12,114   $44,352   $214   $89,118 
Classified   -    16    171    -    131    113    131    -    562 
Total  $7,862   $11,734   $5,035   $4,092   $4,033   $12,227   $44,483   $214   $89,680 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Municipal loans                                             
Nonclassified  $2,774   $128   $-   $-   $-   $1,605   $-   $-   $4,507 
Classified   -    -    -    -    -    -    -    -    - 
Total  $2,774   $128   $-   $-   $-   $1,605   $-   $-   $4,507 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Consumer loans                                             
Nonclassified  $4,705   $1,332   $1,340   $1,380   $1   $4,906   $15,221   $21   $28,906 
Classified   -    -    -    -    -    -    25    -    25 
Total  $4,705   $1,332   $1,340   $1,380   $1   $4,906   $15,246   $21   $28,931 
Charge-offs  $-   $-   $(3)  $-   $-   $-   $(368)  $-   $(371)
Total loans                                             
Nonclassified  $197,376   $213,354   $129,178   $106,473   $50,660   $110,699   $128,833   $4,611   $941,184 
Classified   226    2,016    810    482    368    1,280    2,108    182    7,472 
Total  $197,602   $215,370   $129,988   $106,955   $51,028   $111,979   $130,941   $4,793   $948,656 
Charge-offs  $-   $(28)  $(410)  $(44)  $-   $-   $(368)  $-   $(850)

 

The following table provides information on the Company’s risk categories by loan class:

  

(Dollars in thousands)  Nonclassified   Classified 
   As of December 31, 2022 
(Dollars in thousands)  Nonclassified   Classified 
         
One-to-four family residential real estate loans  $236,663   $319 
Construction and land loans   22,530    195 
Commercial real estate loans   300,216    3,858 
Commercial loans   165,709    7,706 
Paycheck protection program loans   21    - 
Agriculture loans   83,358    925 
Municipal loans   2,026    - 
Consumer loans   26,664    - 
Total  $837,187   $13,003 

 

 

The following table provides information on the Company’s allowance for credit losses related to unfunded loan commitments.

  

(dollars in thousands)    
Balance at January 1, 2023  $170 
Impact of adopting ASC 326   - 
Provision for credit losses   80 
Balance at December 31, 2023  $250 

 

The following table presents the amortized cost basis of loans at December 31, 2023 that were both experiencing financial difficulty and modified by class, type of modification and includes the financial effect of the modification.

  

(Dollars in thousands)  As of December 31, 2023
   Amortized cost basis   % of loan class total   Financial effect
            
Term extension:             
Commercial  $141    0.1%  90 day payment deferral

 

As of December 31, 2023, all loans experiencing both financial difficulty and modified during the twelve months ended December 31, 2023 were current under the terms of the agreements. There were no commitments to lend additional funds to the borrowers and there were no charge-offs recorded against the loans. The Company had a $1,000 allowance for credit losses recorded against these loans as of December 31, 2023. The Company did not have any loan modifications that had a payment default during the twelve months ended December 31, 2023.

 

The Company had loans and unfunded commitments to directors and officers, and to affiliated parties, at December 31, 2023 and 2022. A summary of such loans is as follows:

  

     
(Dollars in thousands)    
     
Balance at December 31, 2022  $14,573 
New loans   3,250 
Repayments   (4,767)
Balance at December 31, 2023  $13,056 

 
v3.24.1
Loan Commitments
 12 Months Ended
Dec. 31, 2023
Loan Commitments  
Loan Commitments

(7) Loan Commitments

 

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet customers’ financing needs. These financial instruments consist principally of commitments to extend credit. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party is represented by the contractual amount of those instruments. In the normal course of business, there are various commitments and contingent liabilities, such as commitments to extend credit, letters of credit, and lines of credit, the balance of which are not recorded in the accompanying consolidated financial statements. The Company generally requires collateral or other security on unfunded loan commitments and irrevocable letters of credit. Unfunded commitments to extend credit, excluding standby letters of credit, aggregated to $211.8 million and $183.5 million at December 31, 2023 and 2022, respectively, and are generally at variable interest rates. Standby letters of credit totaled $1.6 million at December 31, 2023 and $2.7 million at December 31, 2022.

 

 
v3.24.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

(8) Goodwill and Intangible Assets

 

The changes in goodwill is as follows:

  

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Balance at January 1  $32,199   $17,532   $17,532 
Acquired goodwill   -    14,667    - 
Acquisition period adjustments   178    -    - 
Balance at December 31  $32,377   $32,199   $17,532 

 

The Company performed its annual impairment test as of December 31, 2023. Based on the results of the qualitative analysis, the Company concluded it was more likely than not that its goodwill was not impaired.

 

A summary of the other intangible assets that continue to be subject to amortization is as follows:

 

   2023   2022 
(Dollars in thousands)  As of December 31, 
   2023   2022 
Gross carrying amount  $4,170   $5,880 
Accumulated amortization   (929)   (1,874)
Net carrying amount  $3,241   $4,006 

 

Amortization expense for the years ended December 31, 2023 and 2022 was $765,000 and $248,000. The following sets forth estimated amortization expense for core deposit intangible assets for the years ending December 31:

 

(Dollars in thousands)  Amortization 
   expense 
2024   663 
2025   588 
2026   512 
2027   436 
2028   360 
Thereafter   682 
Total  $3,241 

 

 
v3.24.1
Mortgage Loan Servicing
 12 Months Ended
Dec. 31, 2023
Mortgage Loan Servicing  
Mortgage Loan Servicing

(9) Mortgage Loan Servicing

 

Mortgage loans serviced for others are not reported as assets. The following table provides information on the principal balances of mortgage loans serviced for others:

 

   2023   2022 
(Dollars in thousands)  As of December 31, 
   2023   2022 
FHLMC  $659,488   $685,859 
FHLB   28,621    27,285 
Total  $688,109   $713,144 

 

Custodial escrow balances maintained in connection with serviced loans were $5.0 million at December 31, 2023 and $5.3 million at December 31 2022. Gross service fee income related to such loans was $1.8 million for the years ended December 31, 2023 and 2022 and 2021, and is included in fees and service charges in the consolidated statements of earnings.

 

 

Activity for mortgage servicing rights and the related valuation allowance follows:

 

   2023   2022 
(Dollars in thousands)  As of December 31, 
   2023   2022 
Mortgage servicing rights:          
Balance at beginning of year  $3,813   $4,193 
Additions   424    818 
Amortization   (1,079)   (1,198)
Balance at end of year  $3,158   $3,813 

 

At December 31, 2023 and 2022, there was no valuation allowance related to mortgage servicing rights.

 

The fair value of mortgage servicing rights was $9.5 million and $10.3 million at December 31, 2023 and 2022, respectively. Fair value at December 31, 2023 was determined using discount rate at 10.0%, prepayment speeds ranging from 6.00% to 26.87%, depending on the stratification of the specific mortgage servicing right, and a weighted average default rate of 1.65%. Fair value at December 31, 2022 was determined using discount rate at 9.50%,, prepayment speeds ranging from 6.00% to 21.34%, depending on the stratification of the specific mortgage servicing right, and a weighted average default rate of 1.47%.

 

The Company had a mortgage repurchase reserve of $159,000 at December 31, 2023 and $225,000 at December 31, 2022, which represents the Company’s best estimate of probable losses that the Company will incur related to the repurchase of one-to-four family residential real estate loans previously sold or to reimburse investors for credit losses incurred on loans previously sold where a breach of the contractual representations and warranties occurred. The Company made a $50,000 provision to the reserve during 2023 compared to no reserve during 2022 and 2021. The Company charged losses of $116,000, $1,000 and $9,000 against the reserve during 2023, 2022 and 2021, respectively. As of December 31, 2023, the Company had no outstanding mortgage repurchase requests.

 
v3.24.1
Premises and Equipment
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Premises and Equipment

(10) Premises and Equipment

 

Premises and equipment consisted of the following:

 

            
(Dollars in thousands)  Estimated  As of December 31, 
   useful lives  2023   2022 
Land  Indefinite  $5,444   $7,234 
Office buildings and improvements  10 - 50 years   20,868    23,839 
Furniture and equipment  3 - 15 years   9,729    9,326 
Automobiles  2 - 5 years   555    555 
Total premises and equipment      36,596    40,954 
Accumulated depreciation      (16,887)   (16,627)
Total premises and equipment, net     $19,709   $24,327 

 

Depreciation expense totaled $1.3 million for the year ended December 31, 2023, $1.1 million for the year ended December 31, 2022, and $997,000 during the year ended 2021 and was included in occupancy and equipment expense on the consolidated statements of earnings.

 

 
v3.24.1
Deposits
 12 Months Ended
Dec. 31, 2023
Deposits

(11) Deposits

 

The following table presents the maturities of certificates of deposit at December 31, 2023:

 

     
(Dollars in thousands)    
Year  Amount 
2024   163,439 
2025   12,307 
2026   2,893 
2027   2,385 
2028   2,128 
Thereafter   2 
Total  $183,154 

 

The aggregate amount of certificate of deposit in denominations of $250,000 or more at December 31, 2023 and 2022 was $50.2 million and $25.6 million, respectively. As of December 31, 2023, the Company had $83.2 million in brokered deposits compared to $10.3 million at December 31, 2022.

 

The components of interest expense associated with deposits are as follows:

 

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Certificates of deposit  $4,310   $412   $476 
Money market and checking   10,818    2,318    500 
Savings   126    46    47 
Total  $15,254   $2,776   $1,023 

 
v3.24.1
Federal Home Loan Bank Borrowings
 12 Months Ended
Dec. 31, 2023
Federal Home Loan Bank Borrowings

(12) Federal Home Loan Bank Borrowings

 

The Bank has a line of credit, renewable annually each September, with the FHLB under which there were $58.0 million of borrowings at December 31, 2023 compared to $8.2 million of borrowings at December 2022. Interest on any outstanding balance on the line of credit accrues at the federal funds rate plus 0.15% (5.55% at December 31, 2023). The Company had $20.0 million letters of credit issued through the FHLB at December 31, 2023 compared to none at December 31, 2022 to secure municipal deposits. The Company did not have any term advances from FHLB at December 31, 2023 and 2022.

 

Although no loans are specifically pledged, the FHLB requires the Bank to maintain eligible collateral (qualifying loans and investment securities) that has a lending value at least equal to its required collateral. At December 31, 2023 and 2022, there was a blanket pledge of loans totaling $328.7 million and $139.0 million, respectively. At December 31, 2023 and 2022, the Bank’s total borrowing capacity with the FHLB was approximately $232.3 million and $111.0 million, respectively. At December 31, 2023 and 2022, the Bank’s available borrowing capacity was $153.1 million and $101.8 million, respectively. The difference between the Bank’s total borrowing capacity and available borrowing capacity is related to the amount of borrowings outstanding and letters of credit issued to collateralized public fund deposits. The available borrowing capacity with the FHLB is collateral based, and the Bank’s ability to borrow is subject to maintaining collateral that meets the eligibility requirements. The borrowing capacity is not committed and is subject to FHLB credit requirements and policies. In addition, the Bank must maintain a restricted investment in FHLB stock to maintain access to borrowings.

 
v3.24.1
Subordinated Debentures
 12 Months Ended
Dec. 31, 2023
Broker-Dealer [Abstract]  
Subordinated Debentures

(13) Subordinated Debentures

 

In 2003, the Company issued $8.2 million of subordinated debentures. These debentures, which are due in 2034 and are currently redeemable, were issued to a wholly owned grantor trust (the “Trust”) formed to issue preferred securities representing undivided beneficial interests in the assets of the Trust. The Trust then invested the gross proceeds of such preferred securities in the debentures. The Trust’s preferred securities and the subordinated debentures require quarterly interest payments and have variable rates, adjustable quarterly. Interest accrues at three month CME term SOFR plus a spread adjustment of 0.26% and a margin of 2.85%. The interest rate at December 31, 2023 and 2022 was 8.50% and 7.26%, respectively.

 

 

In 2005, the Company issued an additional $8.2 million of subordinated debentures. These debentures, which are due in 2036 and are currently redeemable, were issued to a wholly owned grantor trust (“Trust II”) formed to issue preferred securities representing undivided beneficial interests in the assets of Trust II. Trust II then invested the gross proceeds of such preferred securities in the debentures. Trust II’s preferred securities and the subordinated debentures require quarterly interest payments and have variable rates, adjustable quarterly. Interest accrues at three month CME term SOFR plus a spread adjustment of 0.26% and a margin of 1.34%. The interest rate at December 31, 2023 and 2022 was 6.99% and 6.11%, respectively.

 

In 2013, the Company assumed an additional $5.2 million of subordinated debentures as part of the Bank’s acquisition of Citizens Bank. These debentures, which are due in 2036 and are currently redeemable, were issued by Citizens Bank’s former holding company to a wholly owned grantor trust, First Capital (KS) Statutory Trust (“Trust III”) formed to issue preferred securities representing undivided beneficial interests in the assets of Trust III. Trust III’s preferred securities and the subordinated debentures require quarterly interest payments and have variable rates, adjustable quarterly. Interest accrues at three month CME term SOFR plus a spread adjustment of 0.26% and a margin of 1.62%. The interest rate at December 31, 2023 and 2022 was 7.24% and 6.35% respectively.

 

While these trusts are accounted for as unconsolidated equity investments, a portion of the trust preferred securities issued by the trusts qualifies as Tier 1 Capital for regulatory purposes.

 
v3.24.1
Other Borrowings
 12 Months Ended
Dec. 31, 2023
Other Borrowings  
Other Borrowings

(14) Other Borrowings

 

The Company has a $5.0 million line of credit from an unrelated financial institution maturing on November 1, 2024, with an interest rate that adjusts daily based on the prime rate less 0.50%. This line of credit has covenants specific to capital and other financial ratios, which the Company was in compliance with at December 31, 2023. As of December 31, 2023 and 2022, the Company did not have an outstanding balance on the line of credit.

 

The Company borrowed $10.0 million from an unrelated financial institution at a fixed rate of 6.15% maturing on September 1, 2027, which requires quarterly principal and interest payments. This borrowing has covenants specific to capital and other financial ratios, which the Company was in compliance with at December 31, 2023. The principal balance was $6.6 million and $9.0 million at December 31, 2023 and 2022, respectively.

 

At December 31, 2023 and 2022, the Bank had no borrowings through the Federal Reserve discount window, while the borrowing capacity was $60.7 million and $65.4 million, respectively. The Bank also has various other federal funds agreements, both secured and unsecured, with correspondent banks totaling approximately $30.0 million at December 31, 2023 and 2022. As of December 31, 2023 and 2022, there were no borrowings through these correspondent bank federal funds agreements.

 
v3.24.1
Repurchase Agreements
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Repurchase Agreements

(15) Repurchase Agreements

 

The Company has overnight repurchase agreements with certain deposit customers whereby the Company uses investment securities as collateral for non-insured funds. These balances are accounted for as collateralized financing and included in other borrowings on the balance sheet.

 

Repurchase agreements are comprised of non-insured customer funds, totaling $12.7 million at December 31, 2023, and $29.4 million at December 31, 2022, which were secured by $23.7 million and $38.4 million of the Bank’s investment portfolio at the same dates, respectively.

 

 

The following is a summary of the balances and collateral of the Company’s repurchase agreements:

 

(Dollars in thousands)  Years ended December 31, 
   2023   2022 
Average daily balance during the year  $18,361   $13,239 
Average interest rate during the year   2.72%   1.11%
Maximum month-end balance during the year  $20,083   $33,930 
Weighted average interest rate at year-end   2.84%   1.70%

 

                     
   As of December 31, 2023 
   Overnight and   Up to 30       Greater than     
   Continuous   days   30-90 days   90 days   Total 
Repurchase agreements:                         
U.S. federal treasury obligations  $12,714   $-   $-   $-   $12,714 
Total  $12,714   $-   $-   $-   $12,714 

 

                     
   As of December 31, 2022 
   Overnight and   Up to 30       Greater than     
   Continuous   days   30-90 days   90 days   Total 
Repurchase agreements:                         
U.S. federal treasury obligations  $25,973   $-   $-   $-   $25,973 
U.S. federal agency obligations   1,236    -    -    -    1,236 
Agency mortgage-backed securities   2,193    -    -    -    2,193 
Total  $29,402   $-   $-   $-   $29,402 

 

The investment securities are held by a third party financial institution in the customer’s custodial account. The Company is required to maintain adequate collateral for each repurchase agreement. Changes in the fair value of the investment securities impact the amount of collateral required. If the Company were to default, the investment securities would be used to settle the repurchase agreement with the deposit customer.

 
v3.24.1
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers

(16) Revenue from Contracts with Customers

 

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. Items outside the scope of ASC 606 are noted as such.

 

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Non-interest income:               
Service charges on deposits               
Overdraft fees  $3,845   $3,747   $2,987 
Other   1,080    787    679 
Interchange income   3,206    3,098    3,261 
Loan servicing fees (1)   1,788    1,819    1,780 
Office lease income (1)   509    123    574 
Gains on sales of loans (1)   2,269    3,444    10,487 
Bank owned life insurance income (1)   913    780    686 
(Losses) gains on sales of investment securities (1)   (1,246)   (1,103)   1,138 
Gains (losses) on sales of premises and equipment and foreclosed assets   1    114    (4)
Other   865    891    673 
Total non-interest income  $13,230   $13,700   $22,261 

 

(1)Not within the scope of ASC 606.

 

 

A description of the Company’s revenue streams within the scope of ASC 606 follows:

 

Service Charges on Deposit Accounts

 

The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM usage fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period during which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

 

Interchange Income

 

The Company earns interchange fees from debit cardholder transactions conducted through the interchange payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

 

Gains (Losses) on Sales of Real Estate Owned

 

The Company records a gain or loss from the sale of real estate owned when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of real estate owned to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the real estate owned asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. There were no sales of real estate owned that were financed by the Company during the years 2023, 2022 or 2021.

 

 
v3.24.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

(17) Income Taxes

 

Income tax expense (benefit) attributable to income from operations consisted of the following:

 

 Schedule of Components of Income Tax Expense (Benefit)

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Current:               
Federal  $1,711   $559   $3,039 
State   (161)   (317)   967 
Total current   1,550    242    4,006 
Deferred:               
Federal   295    994    662 
State   56    238    196 
Total deferred   351    1,232    858 
Deferred tax valuation allowance   53    (42)   (50)
Income tax expense  $1,954   $1,432   $4,814 

 

The reasons for the difference between actual income tax expense (benefit) and expected income tax expense attributable to income from operations at the statutory federal income tax rate were as follows:

 

 Schedule of Effective Income Tax Rate Reconciliation

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Computed “expected” tax expense  $2,980   $2,375   $4,793 
(Reduction) increase in income taxes resulting from:               
Tax-exempt interest income, net   (592)   (633)   (645)
Excess tax expense (benefit) from stock option exercise   2    (4)   (29)
Bank owned life insurance   (208)   (180)   (156)
Reversal of unrecognized tax benefits, net   (517)   (465)   162 
State income taxes, net of federal benefit   476    369    718 
Investment tax credits   (47)   (23)   (19)
Other, net   (140)   (7)   (10)
Income tax (benefit) expense  $1,954   $1,432   $4,814 

 

 

The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows:

 

Schedule of Deferred Tax Assets and Liabilities 

   2023   2022 
(Dollars in thousands)  As of December 31, 
   2023   2022 
Deferred tax assets:          
Unrealized loss on investment securities available-for-sale  $5,371   $8,132 
Loans, including allowance for credit losses   2,949    2,879 
State taxes   536    562 
Other, net   244    210 
Investments   -    184 
Net operating loss carry forwards   332    181 
Acquisition costs   99    120 
Net deferred loan fees   144    78 
Valuation allowance on other real estate   75    74 
Deferred compensation arrangements   62    62 
Total deferred tax assets   9,812    12,482 
Less valuation allowance   (234)   (181)
Total deferred tax assets, net of valuation allowance   9,578    12,301 
           
Deferred tax liabilities:          
Intangible assets   1,277    1,324 
Mortgage servicing rights   681    801 
Prepaid expenses   586    554 
Premises and equipment, net of depreciation   618    241 
Investments   158    - 
FHLB stock dividends   59    17 
Unrealized gain on investment securities available-for-sale   -    - 
Total deferred tax liabilities   3,379    2,937 
           
Net deferred tax asset  $6,199   $9,364 

 

The Company has Kansas corporate and privilege tax net operating loss carry forwards totaling $4.6 million and $3.1 million as of December 31, 2023 and 2022, respectively, which expire between 2024 and 2032. The Company has recorded a valuation allowance against the Kansas net operating loss carry forwards. The Company has federal net operating loss carry forwards totaling $465,000 and $1.3 million as of December 31, 2023 and 2022, respectively, which does not have a valuation allowance recorded against it. A valuation allowance related to the remaining deferred tax assets has not been provided because management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets at December 31, 2023.

 

Retained earnings at December 31, 2023 and 2022 include approximately $6.3 million for which no provision for federal income tax had been made. This amount represents allocations of income to bad debt deductions in years prior to 1988 for tax purposes only. Reduction of amounts allocated for purposes other than tax bad debt losses will create income for tax purposes only, which will be subject to the then current corporate income tax rate.

 

 

The Company has unrecognized tax benefits representing tax positions for which a liability has been established. A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows:

 

 Schedule of Unrecognized Tax Benefits

         
(Dollars in thousands)  Years ended December 31, 
   2023   2022 
Unrecognized tax benefits at beginning of year  $2,157   $2,290 
Gross increases to current year tax positions   472    390 
Gross decreases to prior year’s tax positions   (61)   (61)
Lapse of statute of limitations   (528)   (462)
Unrecognized tax benefits at end of year  $2,040   $2,157 

 

Tax years that remain open and subject to audit include the years 2020 through 2023 for both federal and state tax purposes. The Company recognized $528,000 and $462,000 of previously unrecognized tax benefits during 2023 and 2022, respectively. The gross unrecognized tax benefits of $2.0 million and $2.2 million at December 31, 2023 and December 31, 2022, respectively, would favorably impact the effective tax rate by $1.6 million and $1.7 million, respectively, if recognized. During 2023 and 2022, the Company recorded an income tax benefit of $51,000 and $52,000, respectively associated with interest and penalties. During 2021, the Company recorded $298,000 of income tax expense associated with interest and penalties. As of December 31, 2023 and 2022, the Company had accrued interest and penalties related to the unrecognized tax benefits of $520,000 and $571,000, respectively, which are not included in the table above. The Company believes that it is reasonably possible that a reduction in gross unrecognized tax benefits of up to $975,000 is possible during the next 12 months as a result of the lapse of the statute of limitations.

 
v3.24.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans

(18) Employee Benefit Plans

 

Employee Retirement Plan. Substantially all employees are covered under a 401(k) defined contribution savings plan. Eligible employees receive 100% matching contributions from the Company of up to 6% of their compensation. Matching contributions by the Company were $857,000, $768,000 and $800,000 for the years ended December 31, 2023, 2022 and 2021, respectively.

 

Split Dollar Life Insurance Agreement. The Company has recognized a liability for future benefits payable under an agreement that splits the benefits of a bank owned life insurance policy between the Company and a former employee. The liability totaled $44,000 at December 31, 2023 and $43,000 at December 31, 2022.

 

Deferred Compensation Agreements. The Company has entered into deferred compensation and other retirement agreements with certain key employees that provide for cash payments to be made after their respective retirements. The obligations under these arrangements have been recorded at the present value of the accrued benefits. The Company has also entered into agreements with certain directors to defer portions of their compensation. The balance of accrued benefits under these arrangements was $798,000 and $663,000 at December 31, 2023 and 2022, respectively, and was included as a component of other liabilities in the accompanying consolidated balance sheets. The Company recorded expense associated with the deferred compensation agreements of $2,000 for the year ended December 31, 2023 and recorded income associated with the deferred compensation agreements of $1,000 for the year ended December 31, 2022 and recorded expense associated with the deferred compensation agreements of $3,000 for the year ended December 31, 2021. The liability balance is also impacted by changes in the value of the underlying assets supporting the agreements for directors who have not retired.

 
v3.24.1
Stock Compensation Plan
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock Compensation Plan

(19) Stock Compensation Plan

 

The Company has a stock-based employee compensation plan which allows for the issuance of stock options and restricted common stock, the purpose of which is to provide additional incentive to certain officers, directors, and key employees by facilitating their purchase of a stock interest in the Company. Compensation expense related to prior awards is recognized on a straight line basis over the vesting period, which is typically four years. The stock-based compensation cost related to these awards was $352,000, $295,000 and $323,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The Company recognized tax benefits of $84,000, $77,000, and $113,000 for the years ended December 31, 2023, 2022 and 2021, respectively.

 

 

For stock options, the exercise price may not be less than 100% of the fair market value of the shares on the date of the grant, and no option shall be exercisable after the expiration of ten years from the grant date. In determining compensation cost, the Black-Scholes option-pricing model is used to estimate the fair value of options on date of grant. The Black-Scholes model is a closed-end model that uses the assumptions outlined below. Expected volatility is based on historical volatility of the Company’s stock. The Company uses historical exercise behavior and other qualitative factors to estimate the expected term of the options, which represents the period of time that the options granted are expected to be outstanding. The risk-free rate for the expected term is based on U.S. Treasury rates in effect at the time of grant.

 

On May 20, 2015, our stockholders approved the 2015 Stock Incentive Plan which authorized the issuance of equity awards covering 387,832 shares of common stock, as adjusted for subsequent stock dividends. On August 1, 2021, the Compensation Committee awarded 3,334 shares of restricted common stock, as adjusted for subsequent stock dividends and options to acquire 56,328 shares of common stock, as adjusted for subsequent stock dividends. The restricted stock awards vest ratably over one year and the value was based on a stock price of $23.97 per share on the date such shares were granted, as adjusted for subsequent stock dividends. The options vest ratably over four years. On August 1, 2022, the Compensation Committee awarded 19,350 shares of restricted common stock, as adjusted for subsequent stock dividends. The restricted stock awards vest ratably over one or four years and the value was based on a stock price of $23.12 per share on the date such shares were granted, as adjusted for subsequent stock dividends. On August 1, 2023, the Compensation Committee awarded 5,452 shares of restricted common stock, as adjusted for subsequent stock dividends and options to acquire 85,167 shares of common stock, as adjusted for subsequent stock dividends. The restricted stock awards vest ratably over one year and the value was based on a stock price of $20.16 per share on the date such shares were granted, as adjusted for subsequent stock dividends. The options vest ratably over four years.

 

The fair value of the options granted were determined using the following weighted-average assumptions as of the grant date:

 

 

   2023   2022   2021 
   Years ended December 31, 
   2023   2022   2021 
Risk-free interest rate   4.15%   n/a    1.00%
Expected term   7 years    n/a    7 years 
Expected stock price volatility   26.31%   n/a    28.51%
Dividend yield   3.97%   n/a    2.88%

 

A summary of option activity during 2023 is presented below:

 

 

(Dollars in thousands, except per share amounts) 
   Weighted   Weighted 
       average   average     
       exercise   remaining   Aggregate 
       price   contractual   intrinsic 
   Shares   per share   term   value 
Outstanding at January 1, 2023   144,572   $21.87     6.8 years    $502 
Granted   81,111   $20.16           
Effect of 5% stock dividend   10,888                
Forfeited/expired   (5,470)  $22.90           
Exercised   (2,693)  $19.29           
Outstanding at December 31, 2023   228,408   $20.58     7.2 years    $88 
Exercisable at December 31, 2023   114,561   $20.05     5.4 years    $88 
Fully vested options at December 31, 2023   114,561   $20.05     5.4 years    $88 

 

 

Additional information about stock options exercised is presented below:

 

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Intrinsic value of options exercised (on exercise date)  $4   $3   $141 
Cash received from options exercised   52    -    22 
Excess tax benefit realized from options exercised  $1   $-   $21 

 

As of December 31, 2023, there was $418,000 of total unrecognized compensation cost related to the 113,847 outstanding unvested options that will be recognized over the following periods:

 

     
(Dollars in thousands)    
Year  Amount 
2024   150 
2025   125 
2026   90 
2027   53 
Total  $418 

 

The fair value of restricted stock on the vesting date was $187,000, $223,000 and $229,000 during the years ended December 31, 2023, 2022 and 2021 respectively. A summary of nonvested restricted common stock activity during 2023 is presented below:

 

 

   Shares   Weighted average grant date price per share 
Nonvested restricted common stock at January 1, 2023   26,057   $23.50 
Granted   5,192   $21.17 
Vested   (8,975)  $22.40 
Forfeited   (350)  $17.80 
Effect of 5% stock dividend   1,077      
Nonvested restricted common stock at December 31, 2023   23,001   $22.40 

 

As of December 31, 2023, there was $326,000 of total unrecognized compensation cost related to the 23,001 outstanding nonvested restricted shares that will be recognized over the following periods:

 

Schedule of Share-based Compensation Arrangements by Share-based Payment Award 

(Dollars in thousands)    
Year  Amount 
2024   181 
2025   92 
2026   53 
Total  $326 

 
v3.24.1
Fair Value of Financial Instruments and Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments and Fair Value Measurements

(20) Fair Value of Financial Instruments and Fair Value Measurements

 

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

 

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

 

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

 

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

 

 

Fair value estimates of the Company’s financial instruments as of December 31, 2023 and 2022, including methods and assumptions utilized, are set forth below:

 

                          
(Dollars in thousands)  As of December 31, 2023 
   Carrying                 
   amount   Level 1   Level 2   Level 3   Total 
Financial assets:                         
Cash and cash equivalents  $27,101   $27,101   $-   $-   $27,101 
Interest-bearing deposits at other banks   4,918    -    4,918    -    4,918 
Investment securities available-for-sale   452,769    95,667    357,102    -    452,769 
Investment securities held-to-maturity   3,555    -    3,049    -    3,049 
Bank stocks, at cost   8,123     n/a      n/a      n/a      n/a  
Loans, net   937,619    -    -    920,984    920,984 
Loans held for sale   853    -    853    -    853 
Mortgage servicing rights   3,158    -    9,498    -    9,498 
Accrued interest receivable   7,341    327    2,280    4,734    7,341 
Derivative financial instruments   114    -    114    -    114 
                          
Financial liabilities:                         
Non-maturity deposits  $(1,133,097)  $(1,133,097)  $-   $-   $(1,133,097)
Certificates of deposit   (183,154)   -    (181,655)   -    (181,655)
FHLB and other borrowings   (64,662)   -    (65,478)   -    (65,478)
Subordinated debentures   (21,651)   -    (18,906)   -    (18,906)
Repurchase agreements   (12,714)   -    (12,714)   -    (12,714)
Accrued interest payable   (1,979)   -    (1,979)   -    (1,979)
Derivative financial instruments   (14)   -    (14)   -    (14)

 

                          
(Dollars in thousands)  As of December 31, 2022 
   Carrying                 
   amount   Level 1   Level 2   Level 3   Total 
Financial assets:                         
Cash and cash equivalents  $23,156   $23,156   $-   $-   $23,156 
Interest-bearing deposits at other banks   9,084    -    9,084    -    9,084 
Investment securities available-for-sale   489,306    123,111    366,195    -    489,306 
Investment securities held-to-maturity   3,524    -    3,452    -    3,452 
Bank stocks, at cost   5,470     n/a      n/a      n/a      n/a  
Loans, net   841,149    -    -    828,726    828,726 
Loans held for sale   2,488    -    2,488    -    2,488 
Mortgage servicing rights   3,813    -    10,282    -    10,282 
Accrued interest receivable   5,879    426    2,150    3,303    5,879 
Derivative financial instruments   126    -    126    -    126 
                          
Financial liabilities:                         
Non-maturity deposits  $(1,207,371)  $(1,207,371)  $-   $-   $(1,207,371)
Certificates of deposit   (93,278)   -    (90,760)   -    (90,760)
FHLB and other borrowings   (17,200)   -    (14,981)   -    (14,981)
Subordinated debentures   (21,651)   -    (18,189)   -    (18,189)
Repurchase agreements   (29,402)   -    (29,402)   -    (29,402)
Accrued interest payable   (439)   -    (439)   -    (439)

 

 

Transfers

 

The Company did not transfer any assets or liabilities among levels during the year ended December 31, 2023 or 2022.

 

Valuation Methods for Instruments Measured at Fair Value on a Recurring Basis

 

The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at December 31, 2023 and 2022, allocated to the appropriate fair value hierarchy:

 

                     
(Dollars in thousands)      As of December 31, 2023 
       Fair value hierarchy 
   Total   Level 1   Level 2   Level 3 
Assets:                
Available-for-sale securities                    
U. S. treasury securities  $95,667   $95,667   $-   $- 
Municipal obligations, tax exempt   120,623    -    120,623    - 
Municipal obligations, taxable   79,083    -    79,083    - 
Agency mortgage-backed securities   157,396    -    157,396    - 
Loans held for sale   853    -    853    - 
Derivative financial instruments   114    -    114    - 
Liabilities:                    
Derivative financial instruments   (14)   -    (14)   - 

 

                     
(Dollars in thousands)      As of December 31, 2022 
       Fair value hierarchy 
   Total   Level 1   Level 2   Level 3 
Assets:                
Available-for-sale securities                    
U. S. treasury securities  $123,111   $123,111   $-   $- 
U. S. federal agency obligations   1,988    -    1,988    - 
Municipal obligations, tax exempt   127,262    -    127,262    - 
Municipal obligations, taxable   67,244    -    67,244    - 
Agency mortgage-backed securities   169,701    -    169,701    - 
Loans held for sale   2,488    -    2,488    - 
Derivative financial instruments   126    -    126    - 

 

The Company’s investment securities classified as available-for-sale include U.S. treasury securities, U.S. federal agency securities, municipal obligations and agency mortgage-backed securities. Quoted exchange prices are available for the Company’s U.S treasury securities which are classified as Level 1. U.S. federal agency securities and agency mortgage-backed obligations are priced utilizing industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. These measurements are classified as Level 2. Municipal securities are valued using a type of matrix, or grid, pricing in which securities are benchmarked against U.S. treasury rates based on credit rating. These model and matrix measurements are classified as Level 2 in the fair value hierarchy.

 

Changes in the fair value of available-for-sale securities are included in other comprehensive income to the extent the changes are not considered credit-related.

 

Mortgage loans originated and intended for sale in the secondary market are carried at estimated fair value. The mortgage loan valuations are based on quoted secondary market prices for similar loans and are classified as Level 2. Changes in the fair value of mortgage loans originated and intended for sale in the secondary market and derivative financial instruments are included in gains on sales of loans.

 

 

The aggregate fair value, contractual balance (including accrued interest), and gain or loss on loans held for sale were as follows:

 

           
   As of December 31, 
(Dollars in thousands)  2023   2022 
Aggregate fair value  $853   $2,488 
Contractual balance   848    2,468 
Gain  $5   $20 

 

The Company’s derivative financial instruments consist of interest rate lock commitments and forward commitments for the future delivery of these mortgage loans. The fair values of these derivatives are based on quoted prices for similar loans in the secondary market. The market prices are adjusted by a factor, based on the Company’s historical data and its judgment about future economic trends, which considers the likelihood that a commitment will ultimately result in a closed loan. These instruments are classified as Level 2. The amounts are included in other assets or other liabilities on the consolidated balance sheets and gains on sale of loans, net in the consolidated statements of earnings. The total amount of gains and losses from changes in fair value of derivative financial instruments included in earnings were as follows:

 

                
   As of December 31, 
(Dollars in thousands)  2023   2022   2021 
Total change in fair value  $(26)  $(368)  $(836)

 

Valuation Methods for Instruments Measured at Fair Value on a Nonrecurring Basis

 

The Company does not record its loan portfolio at fair value. Collateral-dependent loans are generally carried at the lower of cost or fair value of the collateral, less estimated selling costs. Collateral values are determined based on appraisals performed by qualified licensed appraisers hired by the Company and then further adjusted if warranted based on relevant facts and circumstances. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Individually evaluated loans are reviewed at least quarterly for additional impairment and adjusted accordingly, based on the same factors identified above. The carrying value of the Company’s individually evaluated loans was $4.3 million at December 31, 2023 and $4.1 million at December 31, 2022, respectively. The Company’s individually evaluated loans with an allowance for credit losses was $1.7 million and $755,000, with an allocated allowance of $311,000 and $654,000, at December 31, 2023 and December 31, 2022, respectively.

 

Real estate owned includes assets acquired through, or in lieu of, foreclosure and land previously acquired for expansion. Real estate owned is initially recorded at the fair value of the collateral less estimated selling costs. Subsequent valuations are updated periodically and are based upon independent appraisals, third party price opinions or internal pricing models. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Real estate owned is reviewed and evaluated at least annually for additional impairment and adjusted accordingly, based on the same factors identified above.

 

 

The following table presents quantitative information about Level 3 fair value measurements for individually evaluated loans measure at fair value on a non-recurring basis as of December 31, 2023 and 2022.

 

(Dollars in thousands) 
   Fair value   Valuation technique  Unobservable inputs  Range 
As of December 31, 2023                
Individual evaluated loans:                
One-to-four family residential real estate  $31   Sales comparison  Adjustment to appraised value   7%
Commercial loans   1,386   Sales comparison  Adjustment to comparable sales   0%-50%
Real estate owned:                
One-to-four family residential real estate   266   Sales comparison  Adjustment to appraised value   10%
                 
As of December 31, 2022                
Impaired loans:                
Commercial loans  $101   Sales comparison  Adjustment to comparable sales   0%-25%
Real estate owned:                
One-to-four family residential real estate   272   Sales comparison  Adjustment to appraised value   15%
Commercial real estate   234   Sales comparison  Adjustment to appraised value   15%

 
v3.24.1
Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2023
Regulatory Capital Requirements

(21) Regulatory Capital Requirements

 

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believed that as of December 31, 2023, the Company and the Bank met all capital adequacy requirements to which they were subject at that time.

 

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The Company and the Bank are subject to the Basel III Rule, which is applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally, non-public bank holding companies with consolidated assets of less than $3.0 billion).

 

The Basel III Rule includes a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and a minimum Tier 1 leverage ratio of 4.0%. A capital conservation buffer, equal to 2.5% of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. The capital conservation buffer increases the common equity Tier 1 capital ratio, and Tier 1 capital and total risk based capital ratios.

 

As of December 31, 2023 and December 31, 2022, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action then in effect. There are no conditions or events since that notification that management believes have changed the institution’s category.

 

 

The following is a comparison of the Company’s regulatory capital to minimum capital requirements in effect at December 31, 2023 and 2022:

 

(Dollars in thousands) 
           For capital 
   Actual   adequacy purposes 
   Amount   Ratio   Amount   Ratio (1) 
                 
As of December 31, 2023                    
Leverage  $130,625    8.41%  $62,116    4.0%
Common Equity Tier 1 Capital   109,625    10.39%   73,854    7.0%
Tier 1 Capital   130,625    12.38%   89,680    8.5%
Total Risk Based Capital   140,671    13.33%   110,781    10.5%
                     
As of December 31, 2022                    
Leverage  $122,275    8.14%  $60,100    4.0%
Common Equity Tier 1 Capital   101,275    10.37%   68,352    7.0%
Tier 1 Capital   122,275    12.52%   82,999    8.5%
Total Risk Based Capital   131,236    13.44%   102,528    10.5%

 

(1)The required percent for capital adequacy purposes includes a capital conservation buffer of 2.5%.

 

The following is a comparison of the Bank’s regulatory capital to minimum capital requirements in effect at December 31, 2023 and 2022:

 

(Dollars in thousands)                  To be well-capitalized 
       For capital   under regulatory 
   Actual   adequacy purposes   guidelines 
   Amount   Ratio   Amount   Ratio (1)   Amount   Ratio 
As of December 31, 2023                        
Leverage  $134,422    8.68%  $61,951    4.0%  $77,439    5.0%
Common Equity Tier 1 Capital   134,422    12.74%   73,833    7.0%   68,560    6.5%
Tier 1 Capital   134,422    12.74%   89,655    8.5%   84,381    8.0%
Total Risk Based Capital   144,468    13.70%   110,750    10.5%   105,476    10.0%
                               
As of December 31, 2022                              
Leverage  $128,643    8.59%  $59,933    4.0%  $74,917    5.0%
Common Equity Tier 1 Capital   128,643    13.18%   68,309    7.0%   63,430    6.5%
Tier 1 Capital   128,643    13.18%   82,947    8.5%   78,068    8.0%
Total Risk Based Capital   137,604    14.10%   102,464    10.5%   97,585    10.0%

 

(1)The required percent for capital adequacy purposes includes a capital conservation buffer of 2.5%.

 

 

 
v3.24.1
Parent Company Condensed Financial Statements
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Parent Company Condensed Financial Statements

(22) Parent Company Condensed Financial Statements

 

The following is condensed financial information of the parent company as of December 31, 2023 and 2022

and for the years ended December 31, 2023, 2022 and 2021:

 

Condensed Balance Sheets

 

           
(Dollars in thousands)  As of December 31, 
   2023   2022 
Assets:        
Cash and cash equivalents  $286   $166 
Interest-bearing deposits at other banks   215    214 
Investment in subsidiaries   153,813    140,802 
Other   990    959 
Total assets  $155,304   $142,141 
Liabilities and stockholders’ equity:          
Subordinated debentures  $21,651   $21,651 
Other borrowings   6,649    9,000 
Other   90    57 
Stockholders’ equity   126,914    111,433 
Total liabilities and stockholders’ equity  $155,304   $142,141 

 

Condensed Statements of Earnings

 

                
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Dividends from Bank  $8,000   $29,350   $4,600 
Dividends from nonbank subsidiary   1,000    490    1,000 
Interest income   51    26    16 
Other non-interest income   8    8    7 
Interest expense   (2,113)   (998)   (472)
Other expense, net   (620)   (412)   (532)
Earnings before equity in undistributed earnings   6,326    28,464    4,619 
Increase (decrease) in undistributed equity of Bank   5,252    (19,030)   13,599 
Increase (decrease) in undistributed equity of nonbank subsidiary   102    155    (272)
Earnings before income taxes   11,680    9,589    17,946 
Income tax benefit   (556)   (289)   (65)
Net earnings   12,236    9,878    18,011 
Other comprehensive income (loss)   8,510    (28,946)   (5,567)
Total comprehensive income  $20,746   $(19,068)  $12,444 

 

 

Condensed Statements of Cash Flows

 

                
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Cash flows from operating activities:               
Net earnings  $12,236   $9,878   $18,011 
Decrease (increase) in undistributed equity of subsidiaries   (5,354)   18,875    (13,327)
Other   1    79    130 
Net cash provided by operating activities   6,883    28,832    4,814 
                
Cash flows from investing activities:               
Net change in interest-bearing deposits at banks   1    -    (2)
Acquisition of Freedom Bancshares, Inc.   -    (33,350)   - 
Net cash (used in) provided by investing activities   1    (33,350)   (2)
                
Cash flows from financing activities:               
Proceeds from exercise of stock options   52    -    22 
Payment of dividends   (4,390)   (4,198)   (3,818)
Purchase of treasury stock   (75)   (1,239)   - 
Issuances of outstanding debt   -    10,065    - 
Payment on outstanding debt   (2,351)   (1,065)   - 
Net cash (used in) provided by financing activities   (6,764)   3,563    (3,796)
Net increase (decrease) in cash   120    (955)   1,016 
Cash at beginning of year   166    1,121    105 
Cash at end of year  $286   $166   $1,121 

 

Dividends paid by the Company are provided through dividends from the Bank and dividends from nonbank subsidiaries. At December 31, 2023, the Bank could distribute dividends of up to $12.9 million without regulatory approvals. The primary source of funds for the Company is dividends from the Bank. Under the National Bank Act, a national bank may pay dividends out of its undivided profits in such amounts and at such times as the bank’s board of directors deems prudent. Without prior OCC approval, however, a national bank may not pay dividends in any calendar year that, in the aggregate, exceed the bank’s year-to-date net income plus the bank’s retained net income for the two preceding years. The payment of dividends by any financial institution is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized.

 
v3.24.1
Commitments, Contingencies and Guarantees
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Contingencies and Guarantees

(23) Commitments, Contingencies and Guarantees

 

Commitments to extend credit are legally binding agreements to lend to a borrower provided there are no violations of any conditions established in the contract. The Company, as a provider of financial services, routinely issues financial guarantees in the form of financial and performance commercial and standby letters of credit. As many of the commitments are expected to expire without being drawn upon, the total commitment does not necessarily represent future cash requirements (see Note 7).

 

There are no pending legal proceedings to which the Company or the Bank is a party other than ordinary routine litigation incidental to the Bank’s business. While the ultimate outcome of current legal proceedings cannot be predicted with certainty, it is the opinion of management that the resolution of these legal actions should not have a material effect on the Company’s consolidated financial position or results of operations.
v3.24.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Principles of Consolidation

Principles of Consolidation. The accompanying consolidated financial statements include the accounts of Landmark Bancorp, Inc. and its wholly owned subsidiaries, Landmark National Bank and Landmark Risk Management, Inc. All intercompany balances and transactions have been eliminated in consolidation. The Bank, considered a single operating segment, is principally engaged in the business of attracting deposits from the general public and using such deposits, together with borrowings and other funds, to originate one-to-four family residential real estate, construction and land, commercial real estate, commercial, agriculture, municipal and consumer loans. Landmark Risk Management, Inc. provides property and casualty insurance coverage to the Company and the Bank for which insurance may not be currently available or economically feasible in today’s insurance marketplace.

 
Use of Estimates

Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 
Business Combinations

Business Combinations. At the date of acquisition, the Company records the net assets acquired and liabilities assumed on the consolidated balance sheets at their estimated fair values, and goodwill is recognized for the excess purchase price over the estimated fair value of acquired net assets. The results of operations for acquired companies are included in the Company’s consolidated statements of earnings beginning at the acquisition date. Expenses arising from the acquisition activities are recorded in the consolidated statements of earnings during the period incurred.

 
Reserve Requirements

Reserve Requirements. Regulations of the Federal Reserve require reserves to be maintained by all banking institutions according to the types and amounts of certain deposit liabilities. These requirements restrict a portion of the amounts shown as consolidated cash and due from banks from everyday usage in the operation of banks. As of December 31, 2023 and 2022, the Bank did not have a minimum reserve requirement.

 
Cash Flows

Cash Flows. Cash and cash equivalents include cash on hand and amounts due from banks with original maturities of fewer than 90 days, and are carried at cost. Net cash flows are reported for customer loan and deposit transactions.

 
Interest-Bearing Deposits in Banks

Interest-Bearing Deposits in Banks. Interest-bearing deposits in other banks include investments in certificates of deposits with original maturities greater than 90 days, and are carried at cost.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), commonly referred to as “CECL.” The provisions of the update eliminated the probable initial recognition threshold under previous GAAP which requires reserves to be based on an incurred loss methodology. Under CECL, reserves required for financial assets measured at amortized cost reflect an organization’s estimate of all expected credit losses over the expected term of the financial asset and thereby require the use of reasonable and supportable forecasts to estimate future credit losses. Because CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held-to-maturity debt securities. Under the provisions of the update, credit losses recognized on available-for-sale debt securities are presented as an allowance as opposed to a write-down. In addition, CECL modified the accounting for purchased loans. Under prior GAAP, a purchased loan’s contractual balance was adjusted to fair value through a credit discount, and no reserve was recorded on the purchased loan upon acquisition. Under CECL loans determined to be purchased credit deteriorated have an allowance for credit losses established through purchase accounting. Finally, increased disclosure requirements under CECL oblige organizations to present credit quality disclosures disaggregated by the year of origination or vintage. FASB expects that the evaluation of underwriting standards and credit quality trends by financial statement users will be enhanced with the additional vintage disclosures. In October 2019, the FASB approved a change in the effective dates for CECL which delayed the effective date to fiscal years beginning after December 15, 2022 for smaller reporting companies.

 

On January 1, 2023, the Company adopted CECL. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity investment securities. It also applies to off-balance credit exposures not accounted for as insurance (loan commitments and standby letters of credit). In addition, ASC 326 made changes to the accounting for available-for-sale investment securities management does not intend to sell or believes that it is more likely than not they will be required to sell.

 

 

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP requirements. The adoption of CECL resulted in an increase in the allowance for credit losses on loans of $1.5 million, an initial allowance for credit losses on held-to-maturity investment securities of $72,000, an increase in deferred tax assets of $391,000 and a decrease in retained earnings of $1.2 million. The increases in allowance for credit losses is primarily due to moving to a weighted average remaining maturity allowance methodology and the transition of purchase accounting discounts on loans from an adjustment to amortized cost in the allowance calculation.

 

The following table illustrates the impact of ASC 326:

(Dollars in thousands)  As reported under ASC 326   Pre-ASC 326 adoption   Impact of ASC 326 adoption 
   January 1, 2023 
(Dollars in thousands)  As reported under ASC 326   Pre-ASC 326 adoption   Impact of ASC 326 adoption 
             
Allowance for credit losses:               
Held-to-maturity investment securities  $72   $-   $72 
                
One-to-four family residential real estate loans  $1,677   $655   $1,022 
Construction and land loans   166    117    49 
Commercial real estate loans   4,221    3,158    1,063 
Commercial loans   2,898    2,753    145 
Paycheck protection program loans   -    -    - 
Agriculture loans   1,142    1,966    (824)
Municipal loans   16    5    11 
Consumer loans   194    137    57 
Total allowance for credit losses for loans  $10,314   $8,791   $1,523 
                
Unfunded loan commitments  $170   $170   $- 

 
Investment Securities

Investment Securities. Investment securities are classified as held-to-maturity when management has the positive intent and ability to hold them to maturity. Securities are classified as available-for-sale when they might be sold before maturity. Held-to-maturity securities are carried at amortized cost while available-for-sale securities are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

 

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Realized gains and losses on sales of available-for-sale securities are recorded on a trade date basis and are calculated using the specific identification method.

 
Allowance for Credit Losses – Held-to-Maturity Investment Securities

Allowance for Credit Losses – Held-to-Maturity Investment Securities. Management measures expected credit losses on held-to-maturity investment securities on a collective basis by major security type. Accrued interest is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical loss information adjusted for current conditions and reasonable and supportable forecasts.

 

 
Allowance for Credit Losses – Available-for-Sale Investment Securities

Allowance for Credit Losses – Available-for-Sale Investment Securities. For available-for-sale investment securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, the current interest rate environment, changes to rating of the security or security issuer, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected was less than the amortized cost basis, a credit loss exists and an allowance for credit losses would be recorded for the credit loss, which is limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for or reversal of credit loss expense. Losses are charged against the allowance for credit losses when the Company determines the available-for-sale security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. The Company does not estimate credit losses on available-for-sale security accrued interest receivable.

 
Bank Stocks

Bank Stocks. Bank stocks are investments acquired for regulatory purposes and borrowing availability and are accounted for at cost. The cost of such investments represents their redemption value as such investments do not have a readily determinable fair value. The Company evaluates bank stocks for other-than-temporary impairment by analyzing the ultimate recoverability based on a credit analysis of the issuer.

 
Acquired Loans

Acquired Loans. Acquired loans are recorded at estimated fair value at the time of acquisition. The Company’s acquired loans were not acquired with deteriorated credit quality. Estimated fair values of acquired loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, the expected timing of cash flows, classification status, fixed or variable interest rate, term of loan and whether or not the loan is amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Discounts or premiums created when acquired loans are recorded at their estimated fair values are accreted or amortized over the remaining term of the loan as an adjustment to the related loan’s yield. Similar to originated loans described below, the accrual of interest income on acquired loans is discontinued when the collection of principal or interest, in whole or in part, is doubtful.

 
Loans

Loans. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. The amortized cost is the principal balance outstanding net of previous charge-offs, and for purchased loans, net of unamortized purchase premiums and discounts. Interest income is accrued on the unpaid principal balance. Origination fees received on loans held in portfolio and the estimated direct costs of origination are deferred and amortized to interest income using the level yield method without anticipating prepayments.

 

The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of the principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual. Loans are evaluated individually and are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

 
Allowance for Credit Losses - Loans

Allowance for Credit Losses - Loans. The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans. The analysis is updated on a quarterly basis based on historical loss information adjusted for current conditions and reasonable and supportable forecasts. Additionally, the Company considers asset quality trends, composition and trends in the loan portfolio, underlying collateral values, industry trends and other pertinent factors, including regulatory recommendations. The level of the allowance for credit losses maintained by management is believed adequate to absorb all expected future losses expected in the loan portfolio at the balance sheet date. The allowance is adjusted through provision for credit losses and charge-offs, net of recoveries of amounts previously charged off.

 

The allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses.

 

 

One-to-Four Family Residential Real Estate. One-to-four family residential real estate loans consists primarily of loans secured by 1-4 family residential properties. Repayment is primarily dependent on the personal cash flow of the borrower.

 

Construction and Land. Construction and land loans consist primarily of loans to facilitate the development of both residential and commercial real estate. Repayment is primarily dependent on the completion of the development and refinancing to longer term financing.

 

Commercial Real Estate. Commercial real estate loans consist primarily of loans secured by office buildings, industrial buildings, warehouses, retail buildings and multi-family housing and are primarily owner-occupied. For such loans, repayment is largely dependent upon the operation of the borrower’s business.

 

Commercial. Commercial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. These loans are generally secured by equipment, inventory and accounts receivable of the borrower and repayment is primarily dependent on business cash flows.

 

Agriculture. Agriculture loans include operating and real estate loans to agriculture enterprises. Generally, the borrower’s ability to repay is based on the cash flows from farming operations.

 

Municipal. Municipal loans are generally related to equipment leasing or general fund loans. Repayment is primarily dependent on the tax revenue of the municipal entity.

 

Consumer. Consumer loans include automobile, boat, home improvement and home equity loans. Repayment is primarily dependent on the personal cash flow of the borrower.

 

The Company utilizes a weighted average remaining maturity allowance methodology to calculate the quantitative component of the allowance for credit losses. Historical loss rates are adjusted for current conditions and reasonable and supportable forecasts. Following the economic forecast period loss rates revert back to historical loss rates over a reasonable period of time. Additional adjustments for qualitative factors are included to quantify the risks within each of the loan categories that are not included in the historical loss rates or economic projections. These adjustments include but are not limited to: changes in economic and business conditions, changes in policies, procedures and underwriting, changes in management or staff and their related experience, changes in nature and volume of the portfolio, changes in loan review, changes in collateral values, changes in past due and nonaccrual loans, changes in competition, legal and regulatory issues, changes in concentrations and other qualitative factors that could affect credit losses. The data for the allowance calculation may be obtained from internal or external sources.

 

Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated loan pools. Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral.

 

The Company estimates expected credit losses over the contractual term of obligations to extend credit, unless the obligation is unconditionally cancellable. The allowance for off-balance-sheet exposures is adjusted through the provision for credit losses. 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 used to estimated credit losses on loans.

 

In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures which eliminated the recognition and measurement guidance for troubled debt restructurings (“TDRs”) by creditors in ASC 310-40. The update also enhanced disclosure required for loan restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity will apply the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Additionally, the amendments to this ASU require a public business entity to disclose current period gross charge-offs by year of origination for loans in the vintage disclosures.

 

 

On January 1, 2023, the Company adopted ASU 2022-02, electing the prospective approach. The adoption did not have a material effect on the Company’s operating results or financial condition. The disclosures in this document have been updated to reflect the new guidance.

 
Loans Modifications

Loans Modifications. Loan modifications, including modifications to borrowers experiencing financial difficulty, are treated as a new loan if two conditions are met. The terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks and modifications to the terms of the original loan are more than minor.

 
Loans Held for Sale

Loans Held for Sale. Mortgage loans originated and intended for sale in the secondary market are carried at fair value. The fair value includes the servicing value of the loans as well as any accrued interest.

 

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

 
Mortgage Servicing Rights

Mortgage Servicing Rights. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be recorded in amortization of intangibles in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

 

Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are included in amortization expense on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds, default rates and losses.

 
Transfers of Financial Assets

Transfers of Financial Assets. Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

 
Mortgage Loan Repurchase Reserve

Mortgage Loan Repurchase Reserve. The Company routinely sells one-to-four family residential mortgage loans to secondary mortgage market investors. Under standard representations and warranties clauses in the Company’s mortgage sale agreements, the Company may be required to repurchase mortgage loans sold or reimburse the investors for credit losses incurred on those loans if a breach of the contractual representations and warranties occurred. The Company establishes a mortgage repurchase liability in an amount equal to management’s estimate of losses on loans for which the Company could have a repurchase obligation or loss reimbursement. The estimated liability incorporates the volume of loans sold in previous periods, default expectations, historical investor repurchase demand and actual loss severity. Provisions to the mortgage repurchase reserve reduce gains on sales of loans.

 
Premises and Equipment

Premises and Equipment. Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in earnings as incurred.

 
Bank Owned Life Insurance

Bank Owned Life Insurance. The Company has purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

 

 
Goodwill and Intangible Assets

Goodwill and Intangible Assets. Goodwill is not amortized; however, it is tested for impairment at each calendar year end or more frequently when events or circumstances dictate. The Company performed a qualitative assessment of factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount as of December 31, 2023. This assessment included a review of macroeconomic conditions, industry and market specific considerations and other relevant factors including the Company’s market capitalization, with control premiums and valuation multiples, compared to recent financial industry acquisition multiples for similar institutions to estimate the fair value of the Company’s single reporting unit. A goodwill impairment would be recorded for the amount that the carrying value exceeds the implied fair value.

 

Intangible assets include core deposit intangibles. Core deposit intangible assets are amortized over their estimated useful life of ten years on an accelerated basis. When facts and circumstances indicate potential impairment, the Company will evaluate the recoverability of the intangible asset’s carrying value, using estimates of undiscounted future cash flows over the remaining asset life. Any impairment loss is measured by the excess of carrying value over fair value.

 
Income Taxes

Income Taxes. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. Judgment is required in assessing the future tax consequences of events that have been recognized in financial statements or tax returns. Uncertain income tax positions will be recognized only if it is more likely than not that they will be sustained upon examination by taxing authorities, based upon their technical merits. Once that standard is met, the amount recorded will be the largest amount of benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense in the consolidated statements of earnings. The Company assesses deferred tax assets to determine if the items are more likely than not to be realized, and a valuation allowance is established for any amounts that are not more likely than not to be realized.

 
Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial Instruments. Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

 
Loss Contingencies

Loss Contingencies. Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

 
Comprehensive Income

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of tax which are also recognized as separate components of equity.

 
Real Estate Owned

Real Estate Owned. Assets acquired through, or in lieu of, foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

 
Stock-Based Compensation

Stock-Based Compensation. The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options, which is recognized as compensation expense over the option vesting period, on a straight-line basis, which is typically four years. The fair value of restricted common stock is equal to the Company’s stock price on the grant date, which is recognized as compensation expense on a straight-line basis over the vesting period. The Company accounts for forfeitures as they occur.

 
Earnings per Share

Earnings per Share. Basic earnings per share represent net earnings divided by the weighted average number of common shares outstanding during the year. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. The diluted earnings per share computation for 2023, 2022 and 2021 excluded 166,561, 51,718 and 56,324, respectively, of unexercised stock options because their inclusion would have been anti-dilutive.

 

 

The shares used in the calculation of basic and diluted earnings per share, which have been adjusted to give effect to the 5% common stock dividends paid by the Company in December 2023, 2022 and 2021, are shown below:

 

   2023   2022   2021 
(Dollars in thousands, except per share amounts)  Years ended December 31, 
   2023   2022   2021 
Net earnings available to common shareholders  $12,236   $9,878   $18,011 
                
Weighted average common shares outstanding - basic   5,477,700    5,492,286    5,506,487 
Assumed exercise of stock options   3,100    15,767    13,303 
Weighted average common shares outstanding - diluted   5,480,800    5,508,053    5,519,790 
Earnings per share:               
Basic  $2.23   $1.80   $3.27 
Diluted  $2.23   $1.79   $3.26 

 
Derivative Financial Instruments

Derivative Financial Instruments. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. In order to hedge the change in interest rates resulting from its commitments to fund the loans, the Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gains on sales of loans.

 
Dividend Restriction

Dividend Restriction. Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders.

 
Fair Value of Financial Instruments

Fair Value of Financial Instruments. Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

 
Reclassifications

Reclassifications. Some items in the prior year financial statements were reclassified to the current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.
v3.24.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Impact of Adoption of ASC 326 (CECL)

The following table illustrates the impact of ASC 326:

(Dollars in thousands)  As reported under ASC 326   Pre-ASC 326 adoption   Impact of ASC 326 adoption 
   January 1, 2023 
(Dollars in thousands)  As reported under ASC 326   Pre-ASC 326 adoption   Impact of ASC 326 adoption 
             
Allowance for credit losses:               
Held-to-maturity investment securities  $72   $-   $72 
                
One-to-four family residential real estate loans  $1,677   $655   $1,022 
Construction and land loans   166    117    49 
Commercial real estate loans   4,221    3,158    1,063 
Commercial loans   2,898    2,753    145 
Paycheck protection program loans   -    -    - 
Agriculture loans   1,142    1,966    (824)
Municipal loans   16    5    11 
Consumer loans   194    137    57 
Total allowance for credit losses for loans  $10,314   $8,791   $1,523 
                
Unfunded loan commitments  $170   $170   $- 
Schedule of Earnings Per Share, Basic and Diluted

The shares used in the calculation of basic and diluted earnings per share, which have been adjusted to give effect to the 5% common stock dividends paid by the Company in December 2023, 2022 and 2021, are shown below:

 

   2023   2022   2021 
(Dollars in thousands, except per share amounts)  Years ended December 31, 
   2023   2022   2021 
Net earnings available to common shareholders  $12,236   $9,878   $18,011 
                
Weighted average common shares outstanding - basic   5,477,700    5,492,286    5,506,487 
Assumed exercise of stock options   3,100    15,767    13,303 
Weighted average common shares outstanding - diluted   5,480,800    5,508,053    5,519,790 
Earnings per share:               
Basic  $2.23   $1.80   $3.27 
Diluted  $2.23   $1.79   $3.26 
v3.24.1
Acquisition (Tables)
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Assets and Liabilities Acquisition

The following table summarizes the consideration paid for Freedom Bancshares, Inc. and the amounts of the assets acquired and liabilities assumed at the acquisition date:

 

   As of 
(Dollars in thousands)  October 1, 2022 
     
Cash paid in acquisition  $33,350 
      
Assets acquired:     
Cash and cash equivalents   32,778 
Investment securities   33,126 
Bank stocks   699 
Loans   113,910 
Bank owned life insurance   4,374 
Premises and equipment   3,782 
Core deposit intangibles   4,170 
Other   7,016 
Total assets acquired   199,855 
      
Liabilities assumed:     
Deposits   150,410 
FHLB advances   7,000 
Other borrowings   22,198 
Other liabilities   1,742 
Total liabilities assumed   181,350 
      
Net assets acquired   18,505 
      
Goodwill  $14,845 
Schedule of Unaudited Pro Forma Consolidated Operating Acquisition

 

         
(Dollars in thousands, except per share amounts)  Years ended December 31, 
   2022   2021 
         
Net interest income  $44,750   $45,942 
Net earnings   9,098    19,922 
Earnings per share (1):          
Basic (1)   1.66    3.62 
Diluted (1)   1.65    3.61 

 

(1)All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2022 and 2021.
v3.24.1
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Investments [Abstract]  
Schedule of Available-for-sale Securities

A summary of investment securities available-for-sale and securities held-to-maturity is as follows:

  

(Dollars in thousands)  As of December 31, 2023 
       Gross   Gross     
   Amortized   unrealized   unrealized   Estimated 
   cost   gains   losses   fair value 
                 
Available-for-sale:                    
U. S. treasury securities  $99,340   $-   $(3,673)  $95,667 
Municipal obligations, tax exempt   122,775    186    (2,338)   120,623 
Municipal obligations, taxable   82,926    225    (4,068)   79,083 
Agency mortgage-backed securities   169,656    247    (12,507)   157,396 
Total available-for-sale  $474,697   $658   $(22,586)  $452,769 
                     
Held-to-maturity:                    
Other  $3,555   $-   $(506)  $3,049 
Total held-to-maturity  $3,555   $-   $(506)  $3,049 

 

(Dollars in thousands)  As of December 31, 2022 
       Gross   Gross     
   Amortized   unrealized   unrealized   Estimated 
   cost   gains   losses   fair value 
                 
Available-for-sale:                    
U. S. treasury securities  $130,684   $-   $(7,573)  $123,111 
U. S. federal agency obligations   2,002    -    (14)   1,988 
Municipal obligations, tax exempt   130,848    59    (3,645)   127,262 
Municipal obligations, taxable   73,520    14    (6,290)   67,244 
Agency mortgage-backed securities   185,451    172    (15,922)   169,701 
Total available-for-sale  $522,505   $245   $(33,444)  $489,306 
                     
Held-to-maturity:                    
Other  $3,524   $5   $(77)  $3,452 
Total held-to-maturity  $3,524   $5   $(77)  $3,452 
Schedule of Available for Sale Securities Continuous Unrealized Loss Position Fair Value

The following table summarizes securities available-for-sale in an unrealized loss positions for which an allowance for credit losses has not been recorded at December 31, 2023 along with length of time in a continuous unrealized loss position.

 

(Dollars in thousands)      As of December 31, 2023 
       Less than 12 months   12 months or longer   Total 
   No. of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
Available-for-sale  securities   value   losses   value   losses   value   losses 
U. S. treasury securities   47   $1,129   $(7)  $93,833   $(3,666)  $94,962   $(3,673)
Municipal obligations, tax exempt   229    31,468    (337)   64,962    (2,001)   96,430    (2,338)
Municipal obligations, taxable   110    17,278    (151)   52,212    (3,917)   69,490    (4,068)
Agency mortgage-backed securities   100    6,480    (68)   128,512    (12,439)   134,992    (12,507)
Total available-for-sale   486   $56,355   $(563)  $339,519   $(22,023)  $395,874   $(22,586)

 

Securities which were temporarily impaired are shown below, along with the length of time in a continuous unrealized loss position.

 

(Dollars in thousands)      As of December 31, 2022 
       Less than 12 months   12 months or longer   Total 
   No. of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
Available-for-sale  securities   value   losses   value   losses   value   losses 
U. S. treasury securities   67   $85,988   $(4,591)  $37,123   $(2,982)  $123,111   $(7,573)
U. S. federal agency obligations   1    1,988    (14)   -    -    1,988    (14)
Municipal obligations, tax exempt   274    107,262    (3,020)   8,495    (625)   115,757    (3,645)
Municipal obligations, taxable   108    54,746    (5,006)   7,571    (1,284)   62,317    (6,290)
Agency mortgage-backed securities   100    78,971    (4,550)   79,882    (11,372)   158,853    (15,922)
Total available-for-sale   550   $328,955   $(17,181)  $133,071   $(16,263)  $462,026   $(33,444)
                                    
Other   6   $3,009   $(77)  $-   $-   $3,009   $(77)
Total   6   $3,009   $(77)  $-   $-   $3,009   $(77)
Schedule of Allowance for Credit Losses Related to Held-to-maturity Investment Securities

The following table provides information on the Company’s allowance for credit losses related to held-to-maturity investment securities.

 

(Dollars in thousands)    
Balance at January 1, 2023  $- 
Impact of adopting ASC 326   72 
Provision for credit losses   19 
Balance at December 31, 2023  $91 
Schedule of Investments Classified by Contractual Maturity Date

 

   Amortized   Estimated 
(Dollars in thousands)  cost   fair value 
Available-for-sale:          
Due in less than one year  $37,665   $37,145 
Due after one year but within five years   244,383    232,810 
Due after five years but within ten years   142,669    134,262 
Due after ten years   49,980    48,552 
Total available-for-sale  $474,697   $452,769 
           
Held-to-maturity:          
Due after five years but within ten years  $3,555   $3,049 
Total held-to-maturity  $3,555   $3,049 
Schedule of Realized Gain (loss)

The Company has not sold any investment securities subsequent to December 31, 2023 and the date of this filing. Sales proceeds and gross realized gains and losses on sales of available-for-sale securities are as follows:

 

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
             
Sales proceeds  $20,913   $52,597   $16,623 
                
Realized gains  $-   $-   $1,138 
Realized losses   (1,246)   (1,103)   - 
Net realized (losses) gains  $(1,246)  $(1,103)  $1,138 
v3.24.1
Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Loans

Loans consisted of the following:

  

(Dollars in thousands)  2023   2022 
   As of December 31, 
(Dollars in thousands)  2023   2022 
         
One-to-four family residential real estate loans  $302,544   $236,982 
Construction and land loans   21,090    22,725 
Commercial real estate loans   320,962    304,074 
Commercial loans   180,942    173,415 
Paycheck protection program loans   -    21 
Agriculture loans   89,680    84,283 
Municipal loans   4,507    2,026 
Consumer loans   28,931    26,664 
Total gross loans   948,656    850,190 
Net deferred loan (fees) costs and loans in process   (429)   (250)
Allowance for credit losses   (10,608)   (8,791)
Loans, net  $937,619   $841,149 
Schedule of Allowance for Credit Losses on Financing Receivables

The following tables provide information on the Company’s allowance for credit losses by loan class and allowance methodology:

  

   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans    Agriculture loans   Municipal loans   Consumer loans   Total 
(Dollars in thousands) 
   Year ended December 31, 2023 
   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans    Agriculture loans   Municipal loans   Consumer loans   Total 
                                  
Allowance for credit losses:                                         
Balance at January 1, 2023  $655   $117   $3,158   $2,753    $1,966   $5   $137   $8,791 
Impact of adopting ASC 326   1,022    49    1,063    145     (824)   11    57    1,523 
Charge-offs   -    -    -    (479)    -    -    (371)   (850)
Recoveries   -    675    -    35     74    -    110    894 
Provision for credit losses   358    (691)   297    32     (26)   (1)   281    250 
Balance at December 31, 2023  $2,035   $150   $4,518   $2,486    $1,190   $15   $214   $10,608 

 

   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Paycheck protection loans   Agriculture loans   Municipal loans   Consumer loans   Total 
(Dollars in thousands)
   Year ended December 31, 2022 
   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Paycheck protection loans   Agriculture loans   Municipal loans   Consumer loans   Total 
                                     
Allowance for credit losses:                                             
Balance at January 1, 2022  $623   $138   $3,051   $2,613   $-   $2,221   $6   $123   $8,775 
Charge-offs   -    -    -    -    -    -    -    (336)   (336)
Recoveries   -    165    -    38    -    59    6    84    352 
Provision for credit losses   32    (186)   107    102    -    (314)   (7)   266    - 
Balance at December 31, 2022  $655   $117   $3,158   $2,753   $-   $1,966   $5   $137   $8,791 
                                              
Allowance for credit losses:                                             
Individually evaluated for loss  $-   $-   $-   $636   $-   $18   $-   $-   $654 
Collectively evaluated for loss   655    117    3,158    2,117    -    1,948    5    137    8,137 
Total  $655   $117   $3,158   $2,753   $-   $1,966   $5   $137   $8,791 
                                              
Loan balances:                                             
Individually evaluated for loss  $326   $412   $1,224   $812   $-   $1,319   $36   $-   $4,129 
Collectively evaluated for loss   236,656    22,313    302,850    172,603    21    82,964    1,990    26,664    846,061 
Total  $236,982   $22,725   $304,074   $173,415   $21   $84,283   $2,026   $26,664   $850,190 

 

(Dollars in thousands) 
   Year ended December 31, 2021 
   One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Paycheck protection loans   Agriculture loans   Municipal loans   Consumer loans   Total 
                                     
Allowance for credit losses:                                             
Balance at January 1, 2021  $859   $181   $2,482   $2,388   $-   $2,690   $6   $169   $8,775 
Charge-offs   (81)   -    (540)   (72)   -    (50)   -    (235)   (978)
Recoveries   11    263    -    14    -    66    6    118    478 
Provision for credit losses   (166)   (306)   1,109    283    -    (485)   (6)   71    500 
Balance at December 31, 2021  $623   $138   $3,051   $2,613   $-   $2,221   $6   $123   $8,775 
                                              
Allowance for credit losses:                                             
Individually evaluated for loss  $-   $-   $-   $504   $-   $-   $-   $-   $504 
Collectively evaluated for loss   623    138    3,051    2,109    -    2,221    6    123    8,271 
Total  $623   $138   $3,051   $2,613   $-   $2,221   $6   $123   $8,775 
                                              
Loan balances:                                             
Individually evaluated for loss  $578   $794   $2,214   $1,029   $-   $2,067   $36   $-   $6,718 
Collectively evaluated for loss   165,503    26,850    196,258    131,125    17,179    92,200    2,014    24,541    655,670 
Total  $166,081   $27,644   $198,472   $132,154   $17,179   $94,267   $2,050   $24,541   $662,388 
Schedule of Non-accrual and Loans Past Due Over 89 Days Still Accruing

The following table presents information on non-accrual status and loans past due over 89 days and still accruing:

  

   Non-accrual with no allowance for credit loss   Non-accrual with allowance for credit losses   Loans past due over 89 days still accruing 
(Dollars in thousands)  As of December 31, 2023 
   Non-accrual with no allowance for credit loss   Non-accrual with allowance for credit losses   Loans past due over 89 days still accruing 
             
One-to-four family residential real estate loans  $161   $31   $- 
Commercial loans   363    1,517    - 
Agriculture loans   295    -    - 
Consumer loans   24    -    - 
Total loans  $843   $1,548   $- 
Schedule of Amortized Cost Basis and Collateral Type

Schedule of Amortized Cost Basis and Collateral Type 

(Dollars in thousands)  As of December 31, 2023
   Loan balance   Collateral Type
        
One-to-four family residential real estate loans  $192   First mortgage on residential real estate
Construction and land loans   192   First mortgage on residential or commercial real estate
Commercial real estate loans   1,205   First mortgage on commercial real estate
Commercial loans   2,054   Accounts receivable, equipment and real estate
Agriculture loans   682   Crops, livestock, machinery and real estate
Consumer loans   24   Personal property or second mortgages on real estate
Total loans  $4,349    
Schedule of Impaired Financing Receivables

The following tables present information on impaired loans:

 

   Unpaid contractual principal   Impaired loan balance   Impaired loans without an allowance   Impaired loans with an allowance   Related allowance recorded   Year-to-date average loan balance   Year-to-date interest income recognized 
(Dollars in thousands) 
   As of December 31, 2022 
   Unpaid contractual principal   Impaired loan balance   Impaired loans without an allowance   Impaired loans with an allowance   Related allowance recorded   Year-to-date average loan balance   Year-to-date interest income recognized 
                             
One-to-four family residential real estate loans  $326   $326   $326   $-   $-   $357   $9 
Construction and land loans   843    412    412    -    -    243    10 
Commercial real estate loans   1,224    1,224    1,224    -    -    1,224    47 
Commercial loans   1,063    812    75    737    636    865    5 
Agriculture loans   1,402    1,319    1,301    18    18    1,433    64 
Municipal loans   36    36    36    -    -    36    1 
Total impaired loans  $4,894   $4,129   $3,374   $755   $654   $4,158   $136 

 

   As of December 31, 2021 
   Unpaid contractual principal   Impaired loan balance   Impaired loans without an allowance   Impaired loans with an allowance   Related allowance recorded   Year-to-date average loan balance   Year-to-date interest income recognized 
                             
One-to-four family residential real estate loans  $578   $578   $578   $-   $-   $590   $8 
Construction and land loans   2,401    794    794    -    -    895    16 
Commercial real estate loans   2,214    2,214    2,214    -    -    2,388    37 
Commercial loans   1,380    1,029    520    509    504    1,096    38 
Agriculture loans   2,235    2,067    2,067    -    -    2,420    67 
Municipal loans   36    36    36    -    -    36    1 
Total impaired loans  $8,844   $6,718   $6,209   $509   $504   $7,425   $167 
Schedule of Past Due Financing Receivables

The following tables present information on the Company’s past due and non-accrual loans by loan class:

  

   30-59 days delinquent and accruing   60-89 days delinquent and accruing   90 days or more delinquent and accruing   Total past due loans accruing   Non-accrual loans   Total past due and non-accrual loans   Total loans not past due 
(Dollars in thousands)  As of December 31, 2023 
   30-59 days delinquent and accruing   60-89 days delinquent and accruing   90 days or more delinquent and accruing   Total past due loans accruing   Non-accrual loans   Total past due and non-accrual loans   Total loans not past due 
                             
One-to-four family residential real estate loans  $85   $247   $-   $332   $192   $524   $302,020 
Construction and land loans   -    -    -    -    -    -    21,090 
Commercial real estate loans   153    -    -    153    -    153    320,809 
Commercial loans   399    332    -    731    1,880    2,611    178,331 
Paycheck protection program loans   -    -    -    -    -    -    - 
Agriculture loans   256    -    -    256    295    551    89,129 
Municipal loans   -    -    -    -    -    -    4,507 
Consumer loans   110    -    -    110    24    134    28,797 
Total  $1,003   $579   $-   $1,582   $2,391   $3,973   $944,683 
                                    
Percent of gross loans   0.11%   0.06%   0.00%   0.17%   0.25%   0.42%   99.58%

 

   As of December 31, 2022 
   30-59 days delinquent and accruing   60-89 days delinquent and accruing   90 days or more delinquent and accruing   Total past due loans accruing   Non-accrual loans   Total past due and non-accrual loans   Total loans not past due 
                             
One-to-four family residential real estate loans  $8   $72   $-   $80   $170   $250   $236,732 
Construction and land loans   -    -    -    -    195    195    22,530 
Commercial real estate loans   -    -    -    -    1,224    1,224    302,850 
Commercial loans   -    411    -    411    812    1,223    172,192 
Paycheck protection program loans   -    -    -    -    -    -    21 
Agriculture loans   -    180    -    180    925    1,105    83,178 
Municipal loans   -    -    -    -    -    -    2,026 
Consumer loans   67    -    -    67    -    67    26,597 
Total  $75   $663   $-   $738   $3,326   $4,064   $846,126 
                                    
Percent of gross loans   0.01%   0.08%   0.00%   0.09%   0.39%   0.48%   99.52%
Schedule of Troubled Debt Restructurings on Financings Receivables and Year of Origination

The following table provides information on the Company’s risk category of loans by type and year of origination:

  

   2023   2022   2021   2020   2019   Prior   Revolving loans amortized cost   Revolving loans converted to term   Total 
(Dollars in thousands)  As of December 31, 2023 
   2023   2022   2021   2020   2019   Prior   Revolving loans amortized cost   Revolving loans converted to term   Total 
                                     
One-to-four family residential real estate loans                                             
Nonclassified  $95,290   $84,718   $42,533   $32,081   $12,776   $29,694   $5,097   $163   $302,352 
Classified   -    -    -    -    -    192    -    -    192 
Total  $95,290   $84,718   $42,533   $32,081   $12,776   $29,886   $5,097   $163   $302,544 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Construction and land loans                                             
Nonclassified  $6,283   $5,267   $5,367   $2,665   $916   $492   $100   $-   $21,090 
Classified   -    -    -    -    -    -    -    -    - 
Total  $6,283   $5,267   $5,367   $2,665   $916   $492   $100   $-   $21,090 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Commercial real estate loans                                             
Nonclassified  $41,644   $77,427   $58,327   $50,744   $30,551   $57,502   $3,017   $92   $319,304 
Classified   -    -    481    22    180    975    -    -    1,658 
Total  $41,644   $77,427   $58,808   $50,766   $30,731   $58,477   $3,017   $92   $320,962 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Commercial loans                                             
Nonclassified  $38,818   $32,764   $16,747   $15,511   $2,514   $4,386   $61,046   $4,121   $175,907 
Classified   226    2,000    158    460    57    -    1,952    182    5,035 
Total  $39,044   $34,764   $16,905   $15,971   $2,571   $4,386   $62,998   $4,303   $180,942 
Charge-offs  $-   $(28)  $(407)  $(44)  $-   $-   $-   $-   $(479)
Agriculture loans                                             
Nonclassified  $7,862   $11,718   $4,864   $4,092   $3,902   $12,114   $44,352   $214   $89,118 
Classified   -    16    171    -    131    113    131    -    562 
Total  $7,862   $11,734   $5,035   $4,092   $4,033   $12,227   $44,483   $214   $89,680 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Municipal loans                                             
Nonclassified  $2,774   $128   $-   $-   $-   $1,605   $-   $-   $4,507 
Classified   -    -    -    -    -    -    -    -    - 
Total  $2,774   $128   $-   $-   $-   $1,605   $-   $-   $4,507 
Charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Consumer loans                                             
Nonclassified  $4,705   $1,332   $1,340   $1,380   $1   $4,906   $15,221   $21   $28,906 
Classified   -    -    -    -    -    -    25    -    25 
Total  $4,705   $1,332   $1,340   $1,380   $1   $4,906   $15,246   $21   $28,931 
Charge-offs  $-   $-   $(3)  $-   $-   $-   $(368)  $-   $(371)
Total loans                                             
Nonclassified  $197,376   $213,354   $129,178   $106,473   $50,660   $110,699   $128,833   $4,611   $941,184 
Classified   226    2,016    810    482    368    1,280    2,108    182    7,472 
Total  $197,602   $215,370   $129,988   $106,955   $51,028   $111,979   $130,941   $4,793   $948,656 
Charge-offs  $-   $(28)  $(410)  $(44)  $-   $-   $(368)  $-   $(850)
Schedule of Troubled Debt Restructurings on Financing Receivables

The following table provides information on the Company’s risk categories by loan class:

  

(Dollars in thousands)  Nonclassified   Classified 
   As of December 31, 2022 
(Dollars in thousands)  Nonclassified   Classified 
         
One-to-four family residential real estate loans  $236,663   $319 
Construction and land loans   22,530    195 
Commercial real estate loans   300,216    3,858 
Commercial loans   165,709    7,706 
Paycheck protection program loans   21    - 
Agriculture loans   83,358    925 
Municipal loans   2,026    - 
Consumer loans   26,664    - 
Total  $837,187   $13,003 
Schedule of Allowance for Credit Losses Related to Unfunded Loan Commitments

The following table provides information on the Company’s allowance for credit losses related to unfunded loan commitments.

  

(dollars in thousands)    
Balance at January 1, 2023  $170 
Impact of adopting ASC 326   - 
Provision for credit losses   80 
Balance at December 31, 2023  $250 
Schedule of Amortization cost

The following table presents the amortized cost basis of loans at December 31, 2023 that were both experiencing financial difficulty and modified by class, type of modification and includes the financial effect of the modification.

  

(Dollars in thousands)  As of December 31, 2023
   Amortized cost basis   % of loan class total   Financial effect
            
Term extension:             
Commercial  $141    0.1%  90 day payment deferral
Schedule of Loan to Directors Officers and Affiliated Parties

The Company had loans and unfunded commitments to directors and officers, and to affiliated parties, at December 31, 2023 and 2022. A summary of such loans is as follows:

  

     
(Dollars in thousands)    
     
Balance at December 31, 2022  $14,573 
New loans   3,250 
Repayments   (4,767)
Balance at December 31, 2023  $13,056 
v3.24.1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill

The changes in goodwill is as follows:

  

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Balance at January 1  $32,199   $17,532   $17,532 
Acquired goodwill   -    14,667    - 
Acquisition period adjustments   178    -    - 
Balance at December 31  $32,377   $32,199   $17,532 
Schedule of Other Intangible Assets and Goodwill

A summary of the other intangible assets that continue to be subject to amortization is as follows:

 

   2023   2022 
(Dollars in thousands)  As of December 31, 
   2023   2022 
Gross carrying amount  $4,170   $5,880 
Accumulated amortization   (929)   (1,874)
Net carrying amount  $3,241   $4,006 
Schedule of Finite-lived Intangible Assets, Future Amortization Expense

 

(Dollars in thousands)  Amortization 
   expense 
2024   663 
2025   588 
2026   512 
2027   436 
2028   360 
Thereafter   682 
Total  $3,241 
v3.24.1
Mortgage Loan Servicing (Tables)
 12 Months Ended
Dec. 31, 2023
Mortgage Loan Servicing  
Schedule of Participating Mortgage Loans

Mortgage loans serviced for others are not reported as assets. The following table provides information on the principal balances of mortgage loans serviced for others:

 

   2023   2022 
(Dollars in thousands)  As of December 31, 
   2023   2022 
FHLMC  $659,488   $685,859 
FHLB   28,621    27,285 
Total  $688,109   $713,144 
Schedule of Servicing Asset at Amortized Cost

Activity for mortgage servicing rights and the related valuation allowance follows:

 

   2023   2022 
(Dollars in thousands)  As of December 31, 
   2023   2022 
Mortgage servicing rights:          
Balance at beginning of year  $3,813   $4,193 
Additions   424    818 
Amortization   (1,079)   (1,198)
Balance at end of year  $3,158   $3,813 
v3.24.1
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Premises and Equipment

Premises and equipment consisted of the following:

 

            
(Dollars in thousands)  Estimated  As of December 31, 
   useful lives  2023   2022 
Land  Indefinite  $5,444   $7,234 
Office buildings and improvements  10 - 50 years   20,868    23,839 
Furniture and equipment  3 - 15 years   9,729    9,326 
Automobiles  2 - 5 years   555    555 
Total premises and equipment      36,596    40,954 
Accumulated depreciation      (16,887)   (16,627)
Total premises and equipment, net     $19,709   $24,327 

 

Depreciation expense totaled $1.3 million for the year ended December 31, 2023, $1.1 million for the year ended December 31, 2022, and $997,000 during the year ended 2021 and was included in occupancy and equipment expense on the consolidated statements of earnings.

 

 
v3.24.1
Deposits (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Maturities of Time Deposit

The following table presents the maturities of certificates of deposit at December 31, 2023:

 

     
(Dollars in thousands)    
Year  Amount 
2024   163,439 
2025   12,307 
2026   2,893 
2027   2,385 
2028   2,128 
Thereafter   2 
Total  $183,154 
Schedule of Interest Expense Associated with Deposits

The components of interest expense associated with deposits are as follows:

 

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Certificates of deposit  $4,310   $412   $476 
Money market and checking   10,818    2,318    500 
Savings   126    46    47 
Total  $15,254   $2,776   $1,023 
v3.24.1
Repurchase Agreements (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Repurchase Agreements

The following is a summary of the balances and collateral of the Company’s repurchase agreements:

 

(Dollars in thousands)  Years ended December 31, 
   2023   2022 
Average daily balance during the year  $18,361   $13,239 
Average interest rate during the year   2.72%   1.11%
Maximum month-end balance during the year  $20,083   $33,930 
Weighted average interest rate at year-end   2.84%   1.70%

 

                     
   As of December 31, 2023 
   Overnight and   Up to 30       Greater than     
   Continuous   days   30-90 days   90 days   Total 
Repurchase agreements:                         
U.S. federal treasury obligations  $12,714   $-   $-   $-   $12,714 
Total  $12,714   $-   $-   $-   $12,714 

 

                     
   As of December 31, 2022 
   Overnight and   Up to 30       Greater than     
   Continuous   days   30-90 days   90 days   Total 
Repurchase agreements:                         
U.S. federal treasury obligations  $25,973   $-   $-   $-   $25,973 
U.S. federal agency obligations   1,236    -    -    -    1,236 
Agency mortgage-backed securities   2,193    -    -    -    2,193 
Total  $29,402   $-   $-   $-   $29,402 
v3.24.1
Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue from Contracts with Customers Within Non-interest Income

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. Items outside the scope of ASC 606 are noted as such.

 

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Non-interest income:               
Service charges on deposits               
Overdraft fees  $3,845   $3,747   $2,987 
Other   1,080    787    679 
Interchange income   3,206    3,098    3,261 
Loan servicing fees (1)   1,788    1,819    1,780 
Office lease income (1)   509    123    574 
Gains on sales of loans (1)   2,269    3,444    10,487 
Bank owned life insurance income (1)   913    780    686 
(Losses) gains on sales of investment securities (1)   (1,246)   (1,103)   1,138 
Gains (losses) on sales of premises and equipment and foreclosed assets   1    114    (4)
Other   865    891    673 
Total non-interest income  $13,230   $13,700   $22,261 

 

(1)Not within the scope of ASC 606.
v3.24.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) attributable to income from operations consisted of the following:

 

 Schedule of Components of Income Tax Expense (Benefit)

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Current:               
Federal  $1,711   $559   $3,039 
State   (161)   (317)   967 
Total current   1,550    242    4,006 
Deferred:               
Federal   295    994    662 
State   56    238    196 
Total deferred   351    1,232    858 
Deferred tax valuation allowance   53    (42)   (50)
Income tax expense  $1,954   $1,432   $4,814 
Schedule of Effective Income Tax Rate Reconciliation

The reasons for the difference between actual income tax expense (benefit) and expected income tax expense attributable to income from operations at the statutory federal income tax rate were as follows:

 

 Schedule of Effective Income Tax Rate Reconciliation

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Computed “expected” tax expense  $2,980   $2,375   $4,793 
(Reduction) increase in income taxes resulting from:               
Tax-exempt interest income, net   (592)   (633)   (645)
Excess tax expense (benefit) from stock option exercise   2    (4)   (29)
Bank owned life insurance   (208)   (180)   (156)
Reversal of unrecognized tax benefits, net   (517)   (465)   162 
State income taxes, net of federal benefit   476    369    718 
Investment tax credits   (47)   (23)   (19)
Other, net   (140)   (7)   (10)
Income tax (benefit) expense  $1,954   $1,432   $4,814 
Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows:

 

Schedule of Deferred Tax Assets and Liabilities 

   2023   2022 
(Dollars in thousands)  As of December 31, 
   2023   2022 
Deferred tax assets:          
Unrealized loss on investment securities available-for-sale  $5,371   $8,132 
Loans, including allowance for credit losses   2,949    2,879 
State taxes   536    562 
Other, net   244    210 
Investments   -    184 
Net operating loss carry forwards   332    181 
Acquisition costs   99    120 
Net deferred loan fees   144    78 
Valuation allowance on other real estate   75    74 
Deferred compensation arrangements   62    62 
Total deferred tax assets   9,812    12,482 
Less valuation allowance   (234)   (181)
Total deferred tax assets, net of valuation allowance   9,578    12,301 
           
Deferred tax liabilities:          
Intangible assets   1,277    1,324 
Mortgage servicing rights   681    801 
Prepaid expenses   586    554 
Premises and equipment, net of depreciation   618    241 
Investments   158    - 
FHLB stock dividends   59    17 
Unrealized gain on investment securities available-for-sale   -    - 
Total deferred tax liabilities   3,379    2,937 
           
Net deferred tax asset  $6,199   $9,364 
Schedule of Unrecognized Tax Benefits

The Company has unrecognized tax benefits representing tax positions for which a liability has been established. A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows:

 

 Schedule of Unrecognized Tax Benefits

         
(Dollars in thousands)  Years ended December 31, 
   2023   2022 
Unrecognized tax benefits at beginning of year  $2,157   $2,290 
Gross increases to current year tax positions   472    390 
Gross decreases to prior year’s tax positions   (61)   (61)
Lapse of statute of limitations   (528)   (462)
Unrecognized tax benefits at end of year  $2,040   $2,157 
v3.24.1
Stock Compensation Plan (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Schedule of Fair Value of Options Assumed

The fair value of the options granted were determined using the following weighted-average assumptions as of the grant date:

 

 

   2023   2022   2021 
   Years ended December 31, 
   2023   2022   2021 
Risk-free interest rate   4.15%   n/a    1.00%
Expected term   7 years    n/a    7 years 
Expected stock price volatility   26.31%   n/a    28.51%
Dividend yield   3.97%   n/a    2.88%
Schedule of Share-based Compensation, Stock Options, Activity

A summary of option activity during 2023 is presented below:

 

 

(Dollars in thousands, except per share amounts) 
   Weighted   Weighted 
       average   average     
       exercise   remaining   Aggregate 
       price   contractual   intrinsic 
   Shares   per share   term   value 
Outstanding at January 1, 2023   144,572   $21.87     6.8 years    $502 
Granted   81,111   $20.16           
Effect of 5% stock dividend   10,888                
Forfeited/expired   (5,470)  $22.90           
Exercised   (2,693)  $19.29           
Outstanding at December 31, 2023   228,408   $20.58     7.2 years    $88 
Exercisable at December 31, 2023   114,561   $20.05     5.4 years    $88 
Fully vested options at December 31, 2023   114,561   $20.05     5.4 years    $88 
Schedule of Stock Option Exercised Additional Information

Additional information about stock options exercised is presented below:

 

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Intrinsic value of options exercised (on exercise date)  $4   $3   $141 
Cash received from options exercised   52    -    22 
Excess tax benefit realized from options exercised  $1   $-   $21 
Schedule of Share-based Compensation Arrangements by Share-based Payment Award

     
(Dollars in thousands)    
Year  Amount 
2024   150 
2025   125 
2026   90 
2027   53 
Total  $418 
Restricted Stock [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Schedule of Share-based Compensation Arrangements by Share-based Payment Award

Schedule of Share-based Compensation Arrangements by Share-based Payment Award 

(Dollars in thousands)    
Year  Amount 
2024   181 
2025   92 
2026   53 
Total  $326 
Schedule of Nonvested Share Activity

 

   Shares   Weighted average grant date price per share 
Nonvested restricted common stock at January 1, 2023   26,057   $23.50 
Granted   5,192   $21.17 
Vested   (8,975)  $22.40 
Forfeited   (350)  $17.80 
Effect of 5% stock dividend   1,077      
Nonvested restricted common stock at December 31, 2023   23,001   $22.40 
v3.24.1
Fair Value of Financial Instruments and Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, by Balance Sheet Grouping

Fair value estimates of the Company’s financial instruments as of December 31, 2023 and 2022, including methods and assumptions utilized, are set forth below:

 

                          
(Dollars in thousands)  As of December 31, 2023 
   Carrying                 
   amount   Level 1   Level 2   Level 3   Total 
Financial assets:                         
Cash and cash equivalents  $27,101   $27,101   $-   $-   $27,101 
Interest-bearing deposits at other banks   4,918    -    4,918    -    4,918 
Investment securities available-for-sale   452,769    95,667    357,102    -    452,769 
Investment securities held-to-maturity   3,555    -    3,049    -    3,049 
Bank stocks, at cost   8,123     n/a      n/a      n/a      n/a  
Loans, net   937,619    -    -    920,984    920,984 
Loans held for sale   853    -    853    -    853 
Mortgage servicing rights   3,158    -    9,498    -    9,498 
Accrued interest receivable   7,341    327    2,280    4,734    7,341 
Derivative financial instruments   114    -    114    -    114 
                          
Financial liabilities:                         
Non-maturity deposits  $(1,133,097)  $(1,133,097)  $-   $-   $(1,133,097)
Certificates of deposit   (183,154)   -    (181,655)   -    (181,655)
FHLB and other borrowings   (64,662)   -    (65,478)   -    (65,478)
Subordinated debentures   (21,651)   -    (18,906)   -    (18,906)
Repurchase agreements   (12,714)   -    (12,714)   -    (12,714)
Accrued interest payable   (1,979)   -    (1,979)   -    (1,979)
Derivative financial instruments   (14)   -    (14)   -    (14)

 

                          
(Dollars in thousands)  As of December 31, 2022 
   Carrying                 
   amount   Level 1   Level 2   Level 3   Total 
Financial assets:                         
Cash and cash equivalents  $23,156   $23,156   $-   $-   $23,156 
Interest-bearing deposits at other banks   9,084    -    9,084    -    9,084 
Investment securities available-for-sale   489,306    123,111    366,195    -    489,306 
Investment securities held-to-maturity   3,524    -    3,452    -    3,452 
Bank stocks, at cost   5,470     n/a      n/a      n/a      n/a  
Loans, net   841,149    -    -    828,726    828,726 
Loans held for sale   2,488    -    2,488    -    2,488 
Mortgage servicing rights   3,813    -    10,282    -    10,282 
Accrued interest receivable   5,879    426    2,150    3,303    5,879 
Derivative financial instruments   126    -    126    -    126 
                          
Financial liabilities:                         
Non-maturity deposits  $(1,207,371)  $(1,207,371)  $-   $-   $(1,207,371)
Certificates of deposit   (93,278)   -    (90,760)   -    (90,760)
FHLB and other borrowings   (17,200)   -    (14,981)   -    (14,981)
Subordinated debentures   (21,651)   -    (18,189)   -    (18,189)
Repurchase agreements   (29,402)   -    (29,402)   -    (29,402)
Accrued interest payable   (439)   -    (439)   -    (439)
Schedule of Fair Value, Assets Measured On Recurring Basis

The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at December 31, 2023 and 2022, allocated to the appropriate fair value hierarchy:

 

                     
(Dollars in thousands)      As of December 31, 2023 
       Fair value hierarchy 
   Total   Level 1   Level 2   Level 3 
Assets:                
Available-for-sale securities                    
U. S. treasury securities  $95,667   $95,667   $-   $- 
Municipal obligations, tax exempt   120,623    -    120,623    - 
Municipal obligations, taxable   79,083    -    79,083    - 
Agency mortgage-backed securities   157,396    -    157,396    - 
Loans held for sale   853    -    853    - 
Derivative financial instruments   114    -    114    - 
Liabilities:                    
Derivative financial instruments   (14)   -    (14)   - 

 

                     
(Dollars in thousands)      As of December 31, 2022 
       Fair value hierarchy 
   Total   Level 1   Level 2   Level 3 
Assets:                
Available-for-sale securities                    
U. S. treasury securities  $123,111   $123,111   $-   $- 
U. S. federal agency obligations   1,988    -    1,988    - 
Municipal obligations, tax exempt   127,262    -    127,262    - 
Municipal obligations, taxable   67,244    -    67,244    - 
Agency mortgage-backed securities   169,701    -    169,701    - 
Loans held for sale   2,488    -    2,488    - 
Derivative financial instruments   126    -    126    - 
Schedule of Fair Value Contractual Balance and Gain Loss On Loans Held for Sale

The aggregate fair value, contractual balance (including accrued interest), and gain or loss on loans held for sale were as follows:

 

           
   As of December 31, 
(Dollars in thousands)  2023   2022 
Aggregate fair value  $853   $2,488 
Contractual balance   848    2,468 
Gain  $5   $20 
Schedule of Gains and Losses from Changes in Fair Value of Loans Held for Sale

 

                
   As of December 31, 
(Dollars in thousands)  2023   2022   2021 
Total change in fair value  $(26)  $(368)  $(836)
Schedule of Fair Value Measurements On Nonrecurring, Valuation Techniques

The following table presents quantitative information about Level 3 fair value measurements for individually evaluated loans measure at fair value on a non-recurring basis as of December 31, 2023 and 2022.

 

(Dollars in thousands) 
   Fair value   Valuation technique  Unobservable inputs  Range 
As of December 31, 2023                
Individual evaluated loans:                
One-to-four family residential real estate  $31   Sales comparison  Adjustment to appraised value   7%
Commercial loans   1,386   Sales comparison  Adjustment to comparable sales   0%-50%
Real estate owned:                
One-to-four family residential real estate   266   Sales comparison  Adjustment to appraised value   10%
                 
As of December 31, 2022                
Impaired loans:                
Commercial loans  $101   Sales comparison  Adjustment to comparable sales   0%-25%
Real estate owned:                
One-to-four family residential real estate   272   Sales comparison  Adjustment to appraised value   15%
Commercial real estate   234   Sales comparison  Adjustment to appraised value   15%
v3.24.1
Regulatory Capital Requirements (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies

The following is a comparison of the Company’s regulatory capital to minimum capital requirements in effect at December 31, 2023 and 2022:

 

(Dollars in thousands) 
           For capital 
   Actual   adequacy purposes 
   Amount   Ratio   Amount   Ratio (1) 
                 
As of December 31, 2023                    
Leverage  $130,625    8.41%  $62,116    4.0%
Common Equity Tier 1 Capital   109,625    10.39%   73,854    7.0%
Tier 1 Capital   130,625    12.38%   89,680    8.5%
Total Risk Based Capital   140,671    13.33%   110,781    10.5%
                     
As of December 31, 2022                    
Leverage  $122,275    8.14%  $60,100    4.0%
Common Equity Tier 1 Capital   101,275    10.37%   68,352    7.0%
Tier 1 Capital   122,275    12.52%   82,999    8.5%
Total Risk Based Capital   131,236    13.44%   102,528    10.5%

 

(1)The required percent for capital adequacy purposes includes a capital conservation buffer of 2.5%.
Schedule of Compliance with Regulatory Capital Requirements Under Banking Regulations

The following is a comparison of the Bank’s regulatory capital to minimum capital requirements in effect at December 31, 2023 and 2022:

 

(Dollars in thousands)                  To be well-capitalized 
       For capital   under regulatory 
   Actual   adequacy purposes   guidelines 
   Amount   Ratio   Amount   Ratio (1)   Amount   Ratio 
As of December 31, 2023                        
Leverage  $134,422    8.68%  $61,951    4.0%  $77,439    5.0%
Common Equity Tier 1 Capital   134,422    12.74%   73,833    7.0%   68,560    6.5%
Tier 1 Capital   134,422    12.74%   89,655    8.5%   84,381    8.0%
Total Risk Based Capital   144,468    13.70%   110,750    10.5%   105,476    10.0%
                               
As of December 31, 2022                              
Leverage  $128,643    8.59%  $59,933    4.0%  $74,917    5.0%
Common Equity Tier 1 Capital   128,643    13.18%   68,309    7.0%   63,430    6.5%
Tier 1 Capital   128,643    13.18%   82,947    8.5%   78,068    8.0%
Total Risk Based Capital   137,604    14.10%   102,464    10.5%   97,585    10.0%

 

(1)The required percent for capital adequacy purposes includes a capital conservation buffer of 2.5%.
v3.24.1
Parent Company Condensed Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Schedule of Condensed Financial Statements

The following is condensed financial information of the parent company as of December 31, 2023 and 2022

and for the years ended December 31, 2023, 2022 and 2021:

 

Condensed Balance Sheets

 

           
(Dollars in thousands)  As of December 31, 
   2023   2022 
Assets:        
Cash and cash equivalents  $286   $166 
Interest-bearing deposits at other banks   215    214 
Investment in subsidiaries   153,813    140,802 
Other   990    959 
Total assets  $155,304   $142,141 
Liabilities and stockholders’ equity:          
Subordinated debentures  $21,651   $21,651 
Other borrowings   6,649    9,000 
Other   90    57 
Stockholders’ equity   126,914    111,433 
Total liabilities and stockholders’ equity  $155,304   $142,141 

 

Condensed Statements of Earnings

 

                
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Dividends from Bank  $8,000   $29,350   $4,600 
Dividends from nonbank subsidiary   1,000    490    1,000 
Interest income   51    26    16 
Other non-interest income   8    8    7 
Interest expense   (2,113)   (998)   (472)
Other expense, net   (620)   (412)   (532)
Earnings before equity in undistributed earnings   6,326    28,464    4,619 
Increase (decrease) in undistributed equity of Bank   5,252    (19,030)   13,599 
Increase (decrease) in undistributed equity of nonbank subsidiary   102    155    (272)
Earnings before income taxes   11,680    9,589    17,946 
Income tax benefit   (556)   (289)   (65)
Net earnings   12,236    9,878    18,011 
Other comprehensive income (loss)   8,510    (28,946)   (5,567)
Total comprehensive income  $20,746   $(19,068)  $12,444 

 

 

Condensed Statements of Cash Flows

 

                
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Cash flows from operating activities:               
Net earnings  $12,236   $9,878   $18,011 
Decrease (increase) in undistributed equity of subsidiaries   (5,354)   18,875    (13,327)
Other   1    79    130 
Net cash provided by operating activities   6,883    28,832    4,814 
                
Cash flows from investing activities:               
Net change in interest-bearing deposits at banks   1    -    (2)
Acquisition of Freedom Bancshares, Inc.   -    (33,350)   - 
Net cash (used in) provided by investing activities   1    (33,350)   (2)
                
Cash flows from financing activities:               
Proceeds from exercise of stock options   52    -    22 
Payment of dividends   (4,390)   (4,198)   (3,818)
Purchase of treasury stock   (75)   (1,239)   - 
Issuances of outstanding debt   -    10,065    - 
Payment on outstanding debt   (2,351)   (1,065)   - 
Net cash (used in) provided by financing activities   (6,764)   3,563    (3,796)
Net increase (decrease) in cash   120    (955)   1,016 
Cash at beginning of year   166    1,121    105 
Cash at end of year  $286   $166   $1,121 
v3.24.1
Impact of Adoption of ASC 326 (CECL) (Details)
$ in Thousands
Jan. 01, 2023
USD ($)
Financing Receivable, Past Due [Line Items]  
Held-to-maturity investment securities
Total allowance for credit losses for loans 8,791
Unfunded loan commitments 170
Real Estate Portfolio Segment [Member] | One to Four Family Residential Real Estate Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 655
Real Estate Portfolio Segment [Member] | Construction and Land Loan [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 117
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 3,158
Real Estate Portfolio Segment [Member] | Commercial Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 2,753
Real Estate Portfolio Segment [Member] | Paycheck Protection Program Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans
Real Estate Portfolio Segment [Member] | Agriculture Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 1,966
Real Estate Portfolio Segment [Member] | Municipal Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 5
Real Estate Portfolio Segment [Member] | Consumer Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 137
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]  
Financing Receivable, Past Due [Line Items]  
Held-to-maturity investment securities 72
Total allowance for credit losses for loans 10,314
Unfunded loan commitments 170
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Real Estate Portfolio Segment [Member] | One to Four Family Residential Real Estate Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 1,677
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Real Estate Portfolio Segment [Member] | Construction and Land Loan [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 166
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 4,221
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Real Estate Portfolio Segment [Member] | Commercial Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 2,898
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Real Estate Portfolio Segment [Member] | Paycheck Protection Program Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Real Estate Portfolio Segment [Member] | Agriculture Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 1,142
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Real Estate Portfolio Segment [Member] | Municipal Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 16
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Real Estate Portfolio Segment [Member] | Consumer Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 194
Cumulative Effect, Period of Adoption, Adjustment [Member]  
Financing Receivable, Past Due [Line Items]  
Held-to-maturity investment securities 72
Total allowance for credit losses for loans 1,523
Unfunded loan commitments
Cumulative Effect, Period of Adoption, Adjustment [Member] | Real Estate Portfolio Segment [Member] | One to Four Family Residential Real Estate Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 1,022
Cumulative Effect, Period of Adoption, Adjustment [Member] | Real Estate Portfolio Segment [Member] | Construction and Land Loan [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 49
Cumulative Effect, Period of Adoption, Adjustment [Member] | Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 1,063
Cumulative Effect, Period of Adoption, Adjustment [Member] | Real Estate Portfolio Segment [Member] | Commercial Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 145
Cumulative Effect, Period of Adoption, Adjustment [Member] | Real Estate Portfolio Segment [Member] | Paycheck Protection Program Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans
Cumulative Effect, Period of Adoption, Adjustment [Member] | Real Estate Portfolio Segment [Member] | Agriculture Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans (824)
Cumulative Effect, Period of Adoption, Adjustment [Member] | Real Estate Portfolio Segment [Member] | Municipal Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans 11
Cumulative Effect, Period of Adoption, Adjustment [Member] | Real Estate Portfolio Segment [Member] | Consumer Loans [Member]  
Financing Receivable, Past Due [Line Items]  
Total allowance for credit losses for loans $ 57
v3.24.1
Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]      
Stock dividend percentage 5.00% 5.00% 5.00%
Net earnings available to common shareholders $ 12,236 $ 9,878 $ 18,011
Weighted average common shares outstanding - basic 5,477,700 5,492,286 5,506,487
Assumed exercise of stock options 3,100 15,767 13,303
Weighted average common shares outstanding - diluted 5,480,800 5,508,053 5,519,790
Basic [1] $ 2.23 $ 1.80 $ 3.27
Diluted [1] $ 2.23 $ 1.79 $ 3.26
[1] All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2023, 2022 and 2021.
v3.24.1
Summary of Significant Accounting Policies (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Allowance for credit losses, increase $ 1,500,000    
Credit losses on held-to-maturity, investment securities 91,000  
Deferred tax assets, decrease 391,000    
Retained earnings, decrease $ 1,200,000    
Income tax examination, likelihood of unfavorable settlement greater than 50 percent likelihood of being realized upon ultimate settlement.    
Diluted earning per shares excluded unexercised stock option 166,561 51,718 56,324
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]      
Credit losses on held-to-maturity, investment securities $ 72,000    
v3.24.1
Schedule of Assets and Liabilities Acquisition (Details) - USD ($)
$ in Thousands
Oct. 01, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]          
Goodwill   $ 32,377 $ 32,199 $ 17,532 $ 17,532
Freedom Bank [Member]          
Business Acquisition [Line Items]          
Cash paid in aqcuisition $ 33,350        
Cash and cash equivalents 32,778        
Investment securities 33,126        
Bank stocks 699        
Loans 113,910        
Bank owned life insurance 4,374        
Premises and equipment 3,782        
Core deposit intangibles 4,170        
Other 7,016        
Total assets acquired 199,855        
Deposits 150,410        
FHLB advances 7,000        
Other borrowings 22,198        
Other liabilities 1,742        
Total liabilities assumed 181,350        
Net assets acquired 18,505        
Goodwill $ 14,845 $ 14,700      
v3.24.1
Schedule of Unaudited Pro Forma Consolidated Operating Acquisition (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]    
Net interest income $ 44,750 $ 45,942
Net earnings $ 9,098 $ 19,922
Basic [1] $ 1.66 $ 3.62
Diluted [1] $ 1.65 $ 3.61
[1] All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2022 and 2021.
v3.24.1
Acquisition (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Oct. 01, 2022
Dec. 31, 2020
Business Acquisition [Line Items]          
Intangible assets $ 3,241,000 $ 4,006,000      
Goodwill 32,377,000 32,199,000 $ 17,532,000   $ 17,532,000
Income Tax expense benefit 1,954,000 1,432,000 $ 4,814,000    
Business combination acquired fair value receivables       $ 113,900,000  
Business combination acquired gross contractual amount receivables       118,100,000  
Freedom Bank [Member]          
Business Acquisition [Line Items]          
Cash       33,400,000  
Debt issued       10,000,000.0  
Intangible assets 4,200,000        
Goodwill 14,700,000     $ 14,845,000  
Increase in goodwill $ 178,000        
Acquisition costs   3,400,000      
Income Tax expense benefit   $ 3,100,000      
v3.24.1
Schedule of Available-for-sale Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]    
Amortized cost $ 474,697 $ 522,505
Gross unrealized gains 658 245
Gross unrealized losses (22,586) (33,444)
Estimated fair value 452,769 489,306
Amortized cost 3,555 3,524
Gross unrealized gains 5
Gross unrealized losses (506) (77)
Estimated fair value 3,049 3,452
US Treasury Securities [Member]    
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]    
Amortized cost 99,340 130,684
Gross unrealized gains
Gross unrealized losses (3,673) (7,573)
Estimated fair value 95,667 123,111
Municipal Obligations, Tax Exempt [Member]    
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]    
Amortized cost 122,775 130,848
Gross unrealized gains 186 59
Gross unrealized losses (2,338) (3,645)
Estimated fair value 120,623 127,262
Municipal Obligations, Taxable [Member]    
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]    
Amortized cost 82,926 73,520
Gross unrealized gains 225 14
Gross unrealized losses (4,068) (6,290)
Estimated fair value 79,083 67,244
Agency Mortgage-backed Securities [Member]    
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]    
Amortized cost 169,656 185,451
Gross unrealized gains 247 172
Gross unrealized losses (12,507) (15,922)
Estimated fair value 157,396 169,701
Other [Member]    
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]    
Amortized cost 3,555 3,524
Gross unrealized gains 5
Gross unrealized losses (506) (77)
Estimated fair value $ 3,049 3,452
US Federal Agency Obligations [Member]    
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]    
Amortized cost   2,002
Gross unrealized gains  
Gross unrealized losses   (14)
Estimated fair value   $ 1,988
v3.24.1
Schedule of Available for Sale Securities Continuous Unrealized Loss Position Fair Value (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Number
Dec. 31, 2022
USD ($)
Number
Schedule of Investments [Line Items]    
No. of securities | Number 486 550
Less than 12 months, Fair value $ 56,355 $ 328,955
Less than 12 months, Unrealized losses (563) (17,181)
12 months or longer, Fair value 339,519 133,071
12 months or longer, Unrealized losses (22,023) (16,263)
Total, Fair value 395,874 462,026
Total, Unrealized losses $ (22,586) $ (33,444)
No. of securities | Number   6
Less than 12 months, Fair value   $ 3,009
Less than 12 months, Unrealized losses   (77)
12 months or longer, Fair value  
12 months or longer, Unrealized losses  
Total, Fair value   3,009
Total, Unrealized losses   $ (77)
US Treasury Securities [Member]    
Schedule of Investments [Line Items]    
No. of securities | Number 47 67
Less than 12 months, Fair value $ 1,129 $ 85,988
Less than 12 months, Unrealized losses (7) (4,591)
12 months or longer, Fair value 93,833 37,123
12 months or longer, Unrealized losses (3,666) (2,982)
Total, Fair value 94,962 123,111
Total, Unrealized losses $ (3,673) $ (7,573)
Municipal Obligations, Tax Exempt [Member]    
Schedule of Investments [Line Items]    
No. of securities | Number 229 274
Less than 12 months, Fair value $ 31,468 $ 107,262
Less than 12 months, Unrealized losses (337) (3,020)
12 months or longer, Fair value 64,962 8,495
12 months or longer, Unrealized losses (2,001) (625)
Total, Fair value 96,430 115,757
Total, Unrealized losses $ (2,338) $ (3,645)
Municipal Obligations, Taxable [Member]    
Schedule of Investments [Line Items]    
No. of securities | Number 110 108
Less than 12 months, Fair value $ 17,278 $ 54,746
Less than 12 months, Unrealized losses (151) (5,006)
12 months or longer, Fair value 52,212 7,571
12 months or longer, Unrealized losses (3,917) (1,284)
Total, Fair value 69,490 62,317
Total, Unrealized losses $ (4,068) $ (6,290)
Agency Mortgage-backed Securities [Member]    
Schedule of Investments [Line Items]    
No. of securities | Number 100 100
Less than 12 months, Fair value $ 6,480 $ 78,971
Less than 12 months, Unrealized losses (68) (4,550)
12 months or longer, Fair value 128,512 79,882
12 months or longer, Unrealized losses (12,439) (11,372)
Total, Fair value 134,992 158,853
Total, Unrealized losses $ (12,507) $ (15,922)
US Federal Agency Obligations [Member]    
Schedule of Investments [Line Items]    
No. of securities | Number   1
Less than 12 months, Fair value   $ 1,988
Less than 12 months, Unrealized losses   (14)
12 months or longer, Fair value  
12 months or longer, Unrealized losses  
Total, Fair value   1,988
Total, Unrealized losses   $ (14)
Other [Member]    
Schedule of Investments [Line Items]    
No. of securities | Number   6
Less than 12 months, Fair value   $ 3,009
Less than 12 months, Unrealized losses   (77)
12 months or longer, Fair value  
12 months or longer, Unrealized losses  
Total, Fair value   3,009
Total, Unrealized losses   $ (77)
v3.24.1
Schedule of Allowance for Credit Losses Related to Held-to-maturity Investment Securities (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Schedule of Investments [Abstract]  
Balance at January 1, 2023
Impact of adopting ASC 326 72
Provision for credit losses 19
Balance at December 31, 2023 $ 91
v3.24.1
Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Schedule of Investments [Abstract]    
Amortized cost, due in less than one year $ 37,665  
Estimated fair value, due in less than one year 37,145  
Amortized cost, due after one year but within five years 244,383  
Estimated fair value, due after one year but within five years 232,810  
Amortized cost, due after five years but within ten years 142,669  
Estimated fair value, due after five years but within ten years 134,262  
Amortized cost, due after ten years 49,980  
Estimated fair value, due after ten years 48,552  
Amortized cost, Total available-for-sale 474,697 $ 522,505
Estimated fair value, Total available-for-sale 452,769 489,306
Amortized cost, due after five years but within ten years 3,555  
Estimated fair value, due after five years but within ten years 3,049  
Amortized cost, Total held-to-maturity 3,555 3,524
Estimated fair value, Total held-to-maturity $ 3,049 $ 3,452
v3.24.1
Schedule of Realized Gain (loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Schedule of Investments [Abstract]      
Sales proceeds $ 20,913 $ 52,597 $ 16,623
Realized gains 1,138
Realized losses (1,246) (1,103)
Net realized (losses) gains $ (1,246) $ (1,103) $ 1,138
v3.24.1
Investment Securities (Details Narrative) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Security owned and pledged as collateral, fair value $ 380.4 $ 420.8
Investment [Member]    
Equity method investment, ownership percentage 10.00%  
v3.24.1
Bank Stocks (Details Narrative) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Bank Stocks    
Federal home loan bank stock $ 5,000,000.0 $ 2,400,000
Federal reserve bank stock 3,000,000.0 3,000,000.0
Other assets, miscellaneous $ 111,000 $ 111,000
v3.24.1
Schedule of Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Total gross loans $ 948,656 $ 850,190 $ 662,388
Net deferred loan (fees) costs and loans in process (429) (250)  
Allowance for credit losses (10,608) (8,791)  
Loans, net 937,619 841,149  
One to Four Family Residential Real Estate [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Total gross loans 302,544 236,982  
Construction And Land Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Total gross loans 21,090 22,725 27,644
Commercial Real Estate Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Total gross loans 320,962 304,074 198,472
Commercial Loan [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Total gross loans 180,942 173,415 132,154
Paycheck Protection Program Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Total gross loans 21 17,179
Agriculture Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Total gross loans 89,680 84,283 94,267
Municipal Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Total gross loans 4,507 2,026 $ 2,050
Consumer Loan [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Total gross loans $ 28,931 $ 26,664  
v3.24.1
Schedule of Allowance for Credit Losses on Financing Receivables (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Balance $ 8,791,000 $ 8,775,000 $ 8,775,000
Impact of adopting ASC 326 1,523,000    
Charge-offs (850,000) (336,000) (978,000)
Recoveries 894,000 352,000 478,000
Provision for credit losses 250,000 500,000
Balance 10,608,000 8,791,000 8,775,000
Individually evaluated for loss   654,000 504,000
Collectively evaluated for loss   8,137,000 8,271,000
Total 1,000 8,791,000 8,775,000
Individually evaluated for loss   4,129,000 6,718,000
Collectively evaluated for loss   846,061,000 655,670,000
Total 948,656,000 850,190,000 662,388,000
One to Four Family Residential Real Estate Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Balance 655,000 623,000 859,000
Impact of adopting ASC 326 1,022,000    
Charge-offs (81,000)
Recoveries 11,000
Provision for credit losses 358,000 32,000 (166,000)
Balance 2,035,000 655,000 623,000
Individually evaluated for loss  
Collectively evaluated for loss   655,000 623,000
Total   655,000 623,000
Individually evaluated for loss   326,000 578,000
Collectively evaluated for loss   236,656,000 165,503,000
Total   236,982,000 166,081,000
Construction And Land Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Balance 117,000 138,000 181,000
Impact of adopting ASC 326 49,000    
Charge-offs
Recoveries 675,000 165,000 263,000
Provision for credit losses (691,000) (186,000) (306,000)
Balance 150,000 117,000 138,000
Individually evaluated for loss  
Collectively evaluated for loss   117,000 138,000
Total   117,000 138,000
Individually evaluated for loss   412,000 794,000
Collectively evaluated for loss   22,313,000 26,850,000
Total 21,090,000 22,725,000 27,644,000
Commercial Real Estate Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Balance 3,158,000 3,051,000 2,482,000
Impact of adopting ASC 326 1,063,000    
Charge-offs (540,000)
Recoveries
Provision for credit losses 297,000 107,000 1,109,000
Balance 4,518,000 3,158,000 3,051,000
Individually evaluated for loss  
Collectively evaluated for loss   3,158,000 3,051,000
Total   3,158,000 3,051,000
Individually evaluated for loss   1,224,000 2,214,000
Collectively evaluated for loss   302,850,000 196,258,000
Total 320,962,000 304,074,000 198,472,000
Commercial Loan [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Balance 2,753,000 2,613,000 2,388,000
Impact of adopting ASC 326 145,000    
Charge-offs (479,000) (72,000)
Recoveries 35,000 38,000 14,000
Provision for credit losses 32,000 102,000 283,000
Balance 2,486,000 2,753,000 2,613,000
Individually evaluated for loss   636,000 504,000
Collectively evaluated for loss   2,117,000 2,109,000
Total   2,753,000 2,613,000
Individually evaluated for loss   812,000 1,029,000
Collectively evaluated for loss   172,603,000 131,125,000
Total 180,942,000 173,415,000 132,154,000
Agriculture Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Balance 1,966,000 2,221,000 2,690,000
Impact of adopting ASC 326 (824,000)    
Charge-offs (50,000)
Recoveries 74,000 59,000 66,000
Provision for credit losses (26,000) (314,000) (485,000)
Balance 1,190,000 1,966,000 2,221,000
Individually evaluated for loss   18,000
Collectively evaluated for loss   1,948,000 2,221,000
Total   1,966,000 2,221,000
Individually evaluated for loss   1,319,000 2,067,000
Collectively evaluated for loss   82,964,000 92,200,000
Total 89,680,000 84,283,000 94,267,000
Municipal Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Balance 5,000 6,000 6,000
Impact of adopting ASC 326 11,000    
Charge-offs
Recoveries 6,000 6,000
Provision for credit losses (1,000) (7,000) (6,000)
Balance 15,000 5,000 6,000
Individually evaluated for loss  
Collectively evaluated for loss   5,000 6,000
Total   5,000 6,000
Individually evaluated for loss   36,000 36,000
Collectively evaluated for loss   1,990,000 2,014,000
Total 4,507,000 2,026,000 2,050,000
Consumer Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Balance 137,000 123,000 169,000
Impact of adopting ASC 326 57,000    
Charge-offs (371,000) (336,000) (235,000)
Recoveries 110,000 84,000 118,000
Provision for credit losses 281,000 266,000 71,000
Balance 214,000 137,000 123,000
Individually evaluated for loss  
Collectively evaluated for loss   137,000 123,000
Total   137,000 123,000
Individually evaluated for loss  
Collectively evaluated for loss   26,664,000 24,541,000
Total   26,664,000 24,541,000
Paycheck Protection Program Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Balance
Charge-offs  
Recoveries  
Provision for credit losses  
Balance  
Individually evaluated for loss  
Collectively evaluated for loss  
Total  
Individually evaluated for loss  
Collectively evaluated for loss   21,000 17,179,000
Total $ 21,000 $ 17,179,000
v3.24.1
Schedule of Non-accrual and Loans Past Due Over 89 Days Still Accruing (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Past Due [Line Items]    
Non-accrual with allowance for credit losses $ 2,391 $ 3,326
Loans past due over 89 days still accruing 3,973 $ 4,064
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Non-accrual with no allowance for credit loss 843  
Non-accrual with allowance for credit losses 1,548  
Loans past due over 89 days still accruing  
One to Four Family Residential Real Estate Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Non-accrual with no allowance for credit loss 161  
Non-accrual with allowance for credit losses 31  
Loans past due over 89 days still accruing  
Commercial Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Non-accrual with no allowance for credit loss 363  
Non-accrual with allowance for credit losses 1,517  
Loans past due over 89 days still accruing  
Agriculture Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Non-accrual with no allowance for credit loss 295  
Non-accrual with allowance for credit losses  
Loans past due over 89 days still accruing  
Consumer Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Non-accrual with no allowance for credit loss 24  
Non-accrual with allowance for credit losses  
Loans past due over 89 days still accruing  
v3.24.1
Schedule of Amortized Cost Basis and Collateral Type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Past Due [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 937,619 $ 841,149
Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, after Allowance for Credit Loss 4,349  
One to Four Family Residential Real Estate Loans [Member] | Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 192  
Collateral Type First mortgage on residential real estate  
Construction And Land Loans [Member] | Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 192  
Collateral Type First mortgage on residential or commercial real estate  
Commercial Real Estate Loans [Member] | Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 1,205  
Collateral Type First mortgage on commercial real estate  
Commercial Loan [Member] | Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 2,054  
Collateral Type Accounts receivable, equipment and real estate  
Agriculture Loans [Member] | Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 682  
Collateral Type Crops, livestock, machinery and real estate  
Consumer Loans [Member] | Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 24  
Collateral Type Personal property or second mortgages on real estate  
v3.24.1
Schedule of Impaired Financing Receivables (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Unpaid contractual principal   $ 4,894,000 $ 8,844,000
Impaired loan balance $ 4,300,000 4,129,000 6,718,000
Impaired loans without an allowance   3,374,000 6,209,000
Impaired loans with an allowance   755,000 509,000
Related allowance recorded $ 311,000 654,000 504,000
Year-to-date average loan balance   4,158,000 7,425,000
Year-to-date interest income recognized   136,000 167,000
One to Four Family Residential Real Estate Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Unpaid contractual principal   326,000 578,000
Impaired loan balance   326,000 578,000
Impaired loans without an allowance   326,000 578,000
Impaired loans with an allowance  
Related allowance recorded  
Year-to-date average loan balance   357,000 590,000
Year-to-date interest income recognized   9,000 8,000
Construction And Land Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Unpaid contractual principal   843,000 2,401,000
Impaired loan balance   412,000 794,000
Impaired loans without an allowance   412,000 794,000
Impaired loans with an allowance  
Related allowance recorded  
Year-to-date average loan balance   243,000 895,000
Year-to-date interest income recognized   10,000 16,000
Commercial Real Estate Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Unpaid contractual principal   1,224,000 2,214,000
Impaired loan balance   1,224,000 2,214,000
Impaired loans without an allowance   1,224,000 2,214,000
Impaired loans with an allowance  
Related allowance recorded  
Year-to-date average loan balance   1,224,000 2,388,000
Year-to-date interest income recognized   47,000 37,000
Commercial Loan [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Unpaid contractual principal   1,063,000 1,380,000
Impaired loan balance   812,000 1,029,000
Impaired loans without an allowance   75,000 520,000
Impaired loans with an allowance   737,000 509,000
Related allowance recorded   636,000 504,000
Year-to-date average loan balance   865,000 1,096,000
Year-to-date interest income recognized   5,000 38,000
Agriculture Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Unpaid contractual principal   1,402,000 2,235,000
Impaired loan balance   1,319,000 2,067,000
Impaired loans without an allowance   1,301,000 2,067,000
Impaired loans with an allowance   18,000
Related allowance recorded   18,000
Year-to-date average loan balance   1,433,000 2,420,000
Year-to-date interest income recognized   64,000 67,000
Municipal Loans [Member]      
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]      
Unpaid contractual principal   36,000 36,000
Impaired loan balance   36,000 36,000
Impaired loans without an allowance   36,000 36,000
Impaired loans with an allowance  
Related allowance recorded  
Year-to-date average loan balance   36,000 36,000
Year-to-date interest income recognized   $ 1,000 $ 1,000
v3.24.1
Schedule of Past Due Financing Receivables (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss $ 1,582 $ 738
Financing Receivable, Nonaccrual 2,391 3,326
Financing Receivable, 90 Days or More Past Due, Still Accruing $ 3,973 $ 4,064
Percentage of gross loans, Total past due loans accruing 0.17% 0.09%
Percentage of gross loans, Total past due loans accruing 0.25% 0.39%
Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss $ 1,003 $ 75
Percentage of gross loans, Total past due loans accruing 0.11% 0.01%
Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss $ 579 $ 663
Percentage of gross loans, Total past due loans accruing 0.06% 0.08%
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Financing Receivable, Nonaccrual 1,548  
Financing Receivable, 90 Days or More Past Due, Still Accruing  
Percentage of gross loans, Total past due loans accruing 0.00% 0.00%
Financial Asset, Not Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss $ 944,683 $ 846,126
Percentage of gross loans, Total past due loans accruing 99.58% 99.52%
Financial Asset, Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Percentage of gross loans, Total past due loans accruing 0.42% 0.48%
One to Four Family Residential Real Estate Loans [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss $ 332 $ 80
Financing Receivable, Nonaccrual 192 170
Financing Receivable, 90 Days or More Past Due, Still Accruing 524 250
One to Four Family Residential Real Estate Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 85 8
One to Four Family Residential Real Estate Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 247 72
One to Four Family Residential Real Estate Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
One to Four Family Residential Real Estate Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 302,020 236,732
Construction And Land Loans [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Financing Receivable, Nonaccrual 195
Financing Receivable, 90 Days or More Past Due, Still Accruing 195
Construction And Land Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Construction And Land Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Construction And Land Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Construction And Land Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 21,090 22,530
Commercial Real Estate Loans [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 153
Financing Receivable, Nonaccrual 1,224
Financing Receivable, 90 Days or More Past Due, Still Accruing 153 1,224
Commercial Real Estate Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 153
Commercial Real Estate Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Commercial Real Estate Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Commercial Real Estate Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 320,809 302,850
Commercial Loan [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 731 411
Financing Receivable, Nonaccrual 1,880 812
Financing Receivable, 90 Days or More Past Due, Still Accruing 2,611 1,223
Commercial Loan [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 399
Commercial Loan [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 332 411
Commercial Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Commercial Loan [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 178,331 172,192
Paycheck Protection Loans [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Financing Receivable, Nonaccrual
Financing Receivable, 90 Days or More Past Due, Still Accruing
Paycheck Protection Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Paycheck Protection Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Paycheck Protection Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Paycheck Protection Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 21
Agriculture Loans [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 256 180
Financing Receivable, Nonaccrual 295 925
Financing Receivable, 90 Days or More Past Due, Still Accruing 551 1,105
Agriculture Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 256
Agriculture Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 180
Agriculture Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Agriculture Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 89,129 83,178
Municipal Loans [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Financing Receivable, Nonaccrual
Financing Receivable, 90 Days or More Past Due, Still Accruing
Municipal Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Municipal Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Municipal Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Municipal Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 4,507 2,026
Consumer Loans [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 110 67
Financing Receivable, Nonaccrual 24
Financing Receivable, 90 Days or More Past Due, Still Accruing 134 67
Consumer Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss 110 67
Consumer Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Consumer Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss
Consumer Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Financing Receivable, before Allowance for Credit Loss $ 28,797 $ 26,597
v3.24.1
Schedule of Troubled Debt Restructurings on Financings Receivables and Year of Origination (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Short-Term Debt [Line Items]  
Nonclassified $ 941,184
Classified 7,472
Total 948,656
Charge-offs (850)
One to Four Family Residential Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 302,352
Classified 192
Total 302,544
Charge-offs
Construction And Land Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 21,090
Classified
Total 21,090
Charge-offs
Commercial Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 319,304
Classified 1,658
Total 320,962
Charge-offs
Commercial Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 175,907
Classified 5,035
Total 180,942
Charge-offs (479)
Agriculture Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 89,118
Classified 562
Total 89,680
Charge-offs
Municipal Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 4,507
Classified
Total 4,507
Charge-offs
Consumer Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 28,906
Classified 25
Total 28,931
Charge-offs (371)
2023 [Member]  
Short-Term Debt [Line Items]  
Nonclassified 197,376
Classified 226
Total 197,602
Charge-offs
2023 [Member] | One to Four Family Residential Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 95,290
Classified
Total 95,290
Charge-offs
2023 [Member] | Construction And Land Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 6,283
Classified
Total 6,283
Charge-offs
2023 [Member] | Commercial Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 41,644
Classified
Total 41,644
Charge-offs
2023 [Member] | Commercial Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 38,818
Classified 226
Total 39,044
Charge-offs
2023 [Member] | Agriculture Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 7,862
Classified
Total 7,862
Charge-offs
2023 [Member] | Municipal Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 2,774
Classified
Total 2,774
Charge-offs
2023 [Member] | Consumer Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 4,705
Classified
Total 4,705
Charge-offs
2022 [Member]  
Short-Term Debt [Line Items]  
Nonclassified 213,354
Classified 2,016
Total 215,370
Charge-offs (28)
2022 [Member] | One to Four Family Residential Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 84,718
Classified
Total 84,718
Charge-offs
2022 [Member] | Construction And Land Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 5,267
Classified
Total 5,267
Charge-offs
2022 [Member] | Commercial Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 77,427
Classified
Total 77,427
Charge-offs
2022 [Member] | Commercial Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 32,764
Classified 2,000
Total 34,764
Charge-offs (28)
2022 [Member] | Agriculture Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 11,718
Classified 16
Total 11,734
Charge-offs
2022 [Member] | Municipal Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 128
Classified
Total 128
Charge-offs
2022 [Member] | Consumer Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 1,332
Classified
Total 1,332
Charge-offs
2021 [Member]  
Short-Term Debt [Line Items]  
Nonclassified 129,178
Classified 810
Total 129,988
Charge-offs (410)
2021 [Member] | One to Four Family Residential Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 42,533
Classified
Total 42,533
Charge-offs
2021 [Member] | Construction And Land Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 5,367
Classified
Total 5,367
Charge-offs
2021 [Member] | Commercial Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 58,327
Classified 481
Total 58,808
Charge-offs
2021 [Member] | Commercial Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 16,747
Classified 158
Total 16,905
Charge-offs (407)
2021 [Member] | Agriculture Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 4,864
Classified 171
Total 5,035
Charge-offs
2021 [Member] | Municipal Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified
Classified
Total
Charge-offs
2021 [Member] | Consumer Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 1,340
Classified
Total 1,340
Charge-offs (3)
2020 [Member]  
Short-Term Debt [Line Items]  
Nonclassified 106,473
Classified 482
Total 106,955
Charge-offs (44)
2020 [Member] | One to Four Family Residential Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 32,081
Classified
Total 32,081
Charge-offs
2020 [Member] | Construction And Land Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 2,665
Classified
Total 2,665
Charge-offs
2020 [Member] | Commercial Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 50,744
Classified 22
Total 50,766
Charge-offs
2020 [Member] | Commercial Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 15,511
Classified 460
Total 15,971
Charge-offs (44)
2020 [Member] | Agriculture Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 4,092
Classified
Total 4,092
Charge-offs
2020 [Member] | Municipal Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified
Classified
Total
Charge-offs
2020 [Member] | Consumer Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 1,380
Classified
Total 1,380
Charge-offs
2019 [Member]  
Short-Term Debt [Line Items]  
Nonclassified 50,660
Classified 368
Total 51,028
Charge-offs
2019 [Member] | One to Four Family Residential Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 12,776
Classified
Total 12,776
Charge-offs
2019 [Member] | Construction And Land Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 916
Classified
Total 916
Charge-offs
2019 [Member] | Commercial Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 30,551
Classified 180
Total 30,731
Charge-offs
2019 [Member] | Commercial Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 2,514
Classified 57
Total 2,571
Charge-offs
2019 [Member] | Agriculture Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 3,902
Classified 131
Total 4,033
Charge-offs
2019 [Member] | Municipal Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified
Classified
Total
Charge-offs
2019 [Member] | Consumer Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 1
Classified
Total 1
Charge-offs
Prior [Member]  
Short-Term Debt [Line Items]  
Nonclassified 110,699
Classified 1,280
Total 111,979
Charge-offs
Prior [Member] | One to Four Family Residential Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 29,694
Classified 192
Total 29,886
Charge-offs
Prior [Member] | Construction And Land Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 492
Classified
Total 492
Charge-offs
Prior [Member] | Commercial Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 57,502
Classified 975
Total 58,477
Charge-offs
Prior [Member] | Commercial Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 4,386
Classified
Total 4,386
Charge-offs
Prior [Member] | Agriculture Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 12,114
Classified 113
Total 12,227
Charge-offs
Prior [Member] | Municipal Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 1,605
Classified
Total 1,605
Charge-offs
Prior [Member] | Consumer Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 4,906
Classified
Total 4,906
Charge-offs
Revolving Loans Amortized Cost [Member]  
Short-Term Debt [Line Items]  
Nonclassified 128,833
Classified 2,108
Total 130,941
Charge-offs (368)
Revolving Loans Amortized Cost [Member] | One to Four Family Residential Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 5,097
Classified
Total 5,097
Charge-offs
Revolving Loans Amortized Cost [Member] | Construction And Land Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 100
Classified
Total 100
Charge-offs
Revolving Loans Amortized Cost [Member] | Commercial Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 3,017
Classified
Total 3,017
Charge-offs
Revolving Loans Amortized Cost [Member] | Commercial Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 61,046
Classified 1,952
Total 62,998
Charge-offs
Revolving Loans Amortized Cost [Member] | Agriculture Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 44,352
Classified 131
Total 44,483
Charge-offs
Revolving Loans Amortized Cost [Member] | Municipal Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified
Classified
Total
Charge-offs
Revolving Loans Amortized Cost [Member] | Consumer Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 15,221
Classified 25
Total 15,246
Charge-offs (368)
Revolving Loans Converted To Term [Member]  
Short-Term Debt [Line Items]  
Nonclassified 4,611
Classified 182
Total 4,793
Charge-offs
Revolving Loans Converted To Term [Member] | One to Four Family Residential Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 163
Classified
Total 163
Charge-offs
Revolving Loans Converted To Term [Member] | Construction And Land Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified
Classified
Total
Charge-offs
Revolving Loans Converted To Term [Member] | Commercial Real Estate [Member]  
Short-Term Debt [Line Items]  
Nonclassified 92
Classified
Total 92
Charge-offs
Revolving Loans Converted To Term [Member] | Commercial Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 4,121
Classified 182
Total 4,303
Charge-offs
Revolving Loans Converted To Term [Member] | Agriculture Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 214
Classified
Total 214
Charge-offs
Revolving Loans Converted To Term [Member] | Municipal Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified
Classified
Total
Charge-offs
Revolving Loans Converted To Term [Member] | Consumer Loans [Member]  
Short-Term Debt [Line Items]  
Nonclassified 21
Classified
Total 21
Charge-offs
v3.24.1
Schedule of Troubled Debt Restructurings on Financing Receivables (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total $ 948,656 $ 850,190 $ 662,388
One to Four Family Residential Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total 302,544 236,982  
Construction And Land Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total 21,090 22,725 27,644
Agriculture Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total 89,680 84,283 94,267
Municipal Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total $ 4,507 2,026 2,050
Consumer Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   26,664 $ 24,541
Loans Receivables Non Classified [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   837,187  
Loans Receivables Non Classified [Member] | One to Four Family Residential Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   236,663  
Loans Receivables Non Classified [Member] | Construction And Land Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   22,530  
Loans Receivables Non Classified [Member] | Commercial Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   300,216  
Loans Receivables Non Classified [Member] | Commercial Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   165,709  
Loans Receivables Non Classified [Member] | Paycheck Protection Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   21  
Loans Receivables Non Classified [Member] | Agriculture Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   83,358  
Loans Receivables Non Classified [Member] | Municipal Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   2,026  
Loans Receivables Non Classified [Member] | Consumer Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   26,664  
Loans Receivables Classified [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   13,003  
Loans Receivables Classified [Member] | One to Four Family Residential Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   319  
Loans Receivables Classified [Member] | Construction And Land Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   195  
Loans Receivables Classified [Member] | Commercial Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   3,858  
Loans Receivables Classified [Member] | Commercial Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   7,706  
Loans Receivables Classified [Member] | Paycheck Protection Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total    
Loans Receivables Classified [Member] | Agriculture Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total   925  
Loans Receivables Classified [Member] | Municipal Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total    
Loans Receivables Classified [Member] | Consumer Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total    
v3.24.1
Schedule of Allowance for Credit Losses Related to Unfunded Loan Commitments (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Financing Receivable, Past Due [Line Items]  
Impact of adopting ASC 326 $ 72
Provision for credit losses 19
Unfunded Loan Commitment [Member]  
Financing Receivable, Past Due [Line Items]  
Balance at January 1, 2023 170
Impact of adopting ASC 326
Provision for credit losses 80
Balance at December 31, 2023 $ 250
v3.24.1
Schedule of Amortization cost (Details) - Commercial Loans [Member]
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Amortizated cost basis $ 141
Percentage of loan class 0.10%
Financial effect 90 day payment deferral
v3.24.1
Schedule of Loan to Directors Officers and Affiliated Parties (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Receivables [Abstract]  
Balance at December 31, 2022 $ 14,573
New loans 3,250
Repayments (4,767)
Balance at December 31, 2023 $ 13,056
v3.24.1
Loans and Allowance for Credit Losses (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Receivables [Abstract]      
Allowance for credit loss, Writeoff $ 44,000 $ 16,000 $ 500,000
Loans and leases receivable, impaired, interest lost on nonaccrual loans 96,000 137,000 309,000
Allowance for credit losses, loans $ 1,000 $ 8,791,000 $ 8,775,000
v3.24.1
Loan Commitments (Details Narrative) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Loan Commitments    
Letters of credit outstanding, amount $ 211.8 $ 183.5
Standby letters of credit $ 1.6 $ 2.7
v3.24.1
Schedule of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]      
Balance at January 1 $ 32,199 $ 17,532 $ 17,532
Acquired goodwill 14,667
Acquisition period adjustments 178
Balance at December 31 $ 32,377 $ 32,199 $ 17,532
v3.24.1
Schedule of Other Intangible Assets and Goodwill (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Gross carrying amount $ 4,170 $ 5,880
Accumulated amortization (929) (1,874)
Net carrying amount $ 3,241 $ 4,006
v3.24.1
Schedule of Finite-lived Intangible Assets, Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
2024 $ 663  
2025 588  
2026 512  
2027 436  
2028 360  
Thereafter 682  
Total $ 3,241 $ 4,006
v3.24.1
Goodwill and Intangible Assets (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization expense $ 765,000 $ 248,000
v3.24.1
Schedule of Participating Mortgage Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Schedule of Investments [Line Items]    
Total $ 688,109 $ 713,144
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member]    
Schedule of Investments [Line Items]    
Total 659,488 685,859
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member]    
Schedule of Investments [Line Items]    
Total $ 28,621 $ 27,285
v3.24.1
Schedule of Servicing Asset at Amortized Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Mortgage Loan Servicing    
Balance at beginning of year $ 3,813 $ 4,193
Additions 424 818
Amortization (1,079) (1,198)
Balance at end of year $ 3,158 $ 3,813
v3.24.1
Mortgage Loan Servicing (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]      
Provision to the reserve $ 50,000    
Loss on reserve for mortgage loan 116,000 $ 1,000 $ 9,000
Mortgage loans on real estate repurchase reserve $ 0    
Weighted Average [Member]      
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]      
Assumption for fair value of interests continued to be held by transferor servicing assets or liabilities weighted average default rate 1.65% 1.47%  
Repurchase reserve $ 159,000 $ 225,000  
Mortgage Loans Serviced [Member]      
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]      
Escrow deposit 5,000,000.0 5,300,000  
Interest and Fee Income, Other Loans 1,800,000 1,800,000 $ 1,800,000
Servicing asset at fair value, amount $ 9,500,000 $ 10,300,000  
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, discount rate 10.00% 9.50%  
Mortgage Loans Serviced [Member] | Minimum [Member]      
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]      
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, prepayment speed 6.00% 6.00%  
Mortgage Loans Serviced [Member] | Maximum [Member]      
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]      
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, prepayment speed 26.87% 21.34%  
v3.24.1
Schedule of Premises and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Land $ 5,444 $ 7,234
Office buildings and improvements 20,868 23,839
Furniture and equipment 9,729 9,326
Automobiles 555 555
Total premises and equipment 36,596 40,954
Accumulated depreciation (16,887) (16,627)
Total premises and equipment, net $ 19,709 $ 24,327
Land [Member]    
Property, Plant and Equipment [Line Items]    
Premises and equipment, estimated useful lives description Indefinite  
Building and Building Improvements [Member] | Minimum [Member]    
Property, Plant and Equipment [Line Items]    
Premises and equipment, estimated useful lives 10 years  
Building and Building Improvements [Member] | Maximum [Member]    
Property, Plant and Equipment [Line Items]    
Premises and equipment, estimated useful lives 50 years  
Furniture and Fixtures [Member] | Minimum [Member]    
Property, Plant and Equipment [Line Items]    
Premises and equipment, estimated useful lives 3 years  
Furniture and Fixtures [Member] | Maximum [Member]    
Property, Plant and Equipment [Line Items]    
Premises and equipment, estimated useful lives 15 years  
Automobiles [Member] | Minimum [Member]    
Property, Plant and Equipment [Line Items]    
Premises and equipment, estimated useful lives 2 years  
Automobiles [Member] | Maximum [Member]    
Property, Plant and Equipment [Line Items]    
Premises and equipment, estimated useful lives 5 years  
v3.24.1
Premises and Equipment (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 1,270,000 $ 1,134,000 $ 997,000
v3.24.1
Schedule of Maturities of Time Deposit (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
2024 $ 163,439  
2025 12,307  
2026 2,893  
2027 2,385  
2028 2,128  
Thereafter 2  
Total $ 183,154 $ 93,278
v3.24.1
Schedule of Interest Expense Associated with Deposits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Certificates of deposit $ 4,310 $ 412 $ 476
Money market and checking 10,818 2,318 500
Savings 126 46 47
Total $ 15,254 $ 2,776 $ 1,023
v3.24.1
Deposits (Details Narrative) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Time deposit liabilities, description The aggregate amount of certificate of deposit in denominations of $250,000  
Time deposits, at or above FDIC insurance limit $ 50.2 $ 25.6
Brokered time deposits $ 83.2 $ 10.3
v3.24.1
Federal Home Loan Bank Borrowings (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Transfer of Financial Assets Accounted for as Sales [Line Items]    
Debt instrument, collateral amount $ 23,700,000 $ 38,400,000
Federal Home Loan Bank Advances [Member]    
Transfer of Financial Assets Accounted for as Sales [Line Items]    
Long-term line of credit $ 58,000,000.0 8,200,000
Debt variable rate 5.55%  
Line of credit facility, current borrowing capacity $ 20,000,000.0 0
Debt instrument, collateral amount 328,700,000 139,000,000.0
Debt instrument maximum borrowing capacity amount 232,300,000 111,000,000.0
Debt instrument, unused borrowing capacity, amount $ 153,100,000 $ 101,800,000
Federal Home Loan Bank Advances [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member]    
Transfer of Financial Assets Accounted for as Sales [Line Items]    
Debt variable rate 0.15%  
v3.24.1
Subordinated Debentures (Details Narrative) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2013
Dec. 31, 2005
Dec. 31, 2003
Subordinated Debentures 2003 [Member]          
Subordinated Borrowing [Line Items]          
Proceeds from issuance of debt         $ 8.2
Debt conversion, original debt, due date, year         2034
Debt instrument, description of variable rate basis         Interest accrues at three month CME term SOFR plus a spread adjustment of 0.26%
Subordinated borrowing, interest rate 8.50% 7.26%      
Subordinated Debentures 2003 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]          
Subordinated Borrowing [Line Items]          
Debt instrument, basis spread on variable rate         2.85%
Subordinated Debentures 2005 [Member]          
Subordinated Borrowing [Line Items]          
Proceeds from issuance of debt       $ 8.2  
Debt conversion, original debt, due date, year       2036  
Debt instrument, description of variable rate basis       Interest accrues at three month CME term SOFR plus a spread adjustment of 0.26%  
Subordinated borrowing, interest rate 6.99% 6.11%      
Subordinated Debentures 2005 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]          
Subordinated Borrowing [Line Items]          
Subordinated borrowing, interest rate       1.34%  
Subordinated Debentures 2013 [Member]          
Subordinated Borrowing [Line Items]          
Proceeds from issuance of debt     $ 5.2    
Debt conversion, original debt, due date, year     2036    
Debt instrument, description of variable rate basis     Interest accrues at three month CME term SOFR plus a spread adjustment of 0.26%    
Subordinated borrowing, interest rate 7.24% 6.35%      
Subordinated Debentures 2013 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]          
Subordinated Borrowing [Line Items]          
Subordinated borrowing, interest rate     1.62%    
v3.24.1
Other Borrowings (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Unrelated Financial Institution [Member]    
Line of credit facility, current borrowing capacity $ 5,000,000.0  
Line of credit facility, expiration date Nov. 01, 2024  
Line of credit facility, interest rate description prime rate less 0.50  
Line of credit facility, maximum borrowing capacity $ 60,700,000 $ 65,400,000
Federal funds purchased 30,000,000.0 30,000,000.0
Unrelated Financial Institution [Member] | Federal Funds Agreements [Member]    
Line of credit facility, maximum borrowing capacity 0 0
Unrelated Financial Institution One [Member]    
Line of credit facility, current borrowing capacity $ 10,000,000.0  
Line of credit facility, expiration date Sep. 01, 2027  
Line of credit facility, fixed interest rate 6.15%  
Principal payments $ 6,600,000 $ 9,000,000.0
v3.24.1
Schedule of Repurchase Agreements (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Average daily balance during the year $ 18,361 $ 13,239
Average interest rate during the year 2.72% 1.11%
Maximum month-end balance during the year $ 20,083 $ 33,930
Weighted average interest rate at year-end 2.84% 1.70%
Total $ 12,714 $ 29,402
US Federal Treasury Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total 12,714 25,973
US Federal Agency Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total   1,236
Agency Mortgage Backed [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total   2,193
Overnight And Continuous [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total 12,714 29,402
Overnight And Continuous [Member] | US Federal Treasury Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total 12,714 25,973
Overnight And Continuous [Member] | US Federal Agency Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total   1,236
Overnight And Continuous [Member] | Agency Mortgage Backed [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total   2,193
Upto 30 Days [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total
Upto 30 Days [Member] | US Federal Treasury Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total
Upto 30 Days [Member] | US Federal Agency Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total  
Upto 30 Days [Member] | Agency Mortgage Backed [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total  
30 - 90 Days [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total
30 - 90 Days [Member] | US Federal Treasury Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total
30 - 90 Days [Member] | US Federal Agency Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total  
30 - 90 Days [Member] | Agency Mortgage Backed [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total  
Greater Than 90 Days [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total
Greater Than 90 Days [Member] | US Federal Treasury Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total
Greater Than 90 Days [Member] | US Federal Agency Obligations [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total  
Greater Than 90 Days [Member] | Agency Mortgage Backed [Member]    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total  
v3.24.1
Repurchase Agreements (Details Narrative) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Debt Disclosure [Abstract]    
Customer funds $ 12.7 $ 29.4
Debt instrument, collateral amount $ 23.7 $ 38.4
v3.24.1
Schedule of Revenue from Contracts with Customers Within Non-interest Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]      
Overdraft fees $ 3,845 $ 3,747 $ 2,987
Other 1,080 787 679
Interchange income 3,206 3,098 3,261
Loan servicing fees () [1] 1,788 1,819 1,780
Office lease income () [1] 509 123 574
Gains on sales of loans () [1] 2,269 3,444 10,487
Bank owned life insurance income () [1] 913 780 686
(Losses) gains on sales of investment securities () [1] (1,246) (1,103) 1,138
Gains (losses) on sales of premises and equipment and foreclosed assets 1 114 (4)
Other 865 891 673
Total non-interest income $ 13,230 $ 13,700 $ 22,261
[1] Not within the scope of ASC 606.
v3.24.1
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Federal $ 1,711 $ 559 $ 3,039
State (161) (317) 967
Total current 1,550 242 4,006
Federal 295 994 662
State 56 238 196
Total deferred 351 1,232 858
Deferred tax valuation allowance 53 (42) (50)
Income tax expense $ 1,954 $ 1,432 $ 4,814
v3.24.1
Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Computed “expected” tax expense $ 2,980 $ 2,375 $ 4,793
Tax-exempt interest income, net (592) (633) (645)
Excess tax expense (benefit) from stock option exercise 2 (4) (29)
Bank owned life insurance (208) (180) (156)
Reversal of unrecognized tax benefits, net (517) (465) 162
State income taxes, net of federal benefit 476 369 718
Investment tax credits (47) (23) (19)
Other, net (140) (7) (10)
Income tax expense $ 1,954 $ 1,432 $ 4,814
v3.24.1
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Unrealized loss on investment securities available-for-sale $ 5,371 $ 8,132
Loans, including allowance for credit losses 2,949 2,879
State taxes 536 562
Other, net 244 210
Investments 184
Net operating loss carry forwards 332 181
Acquisition costs 99 120
Net deferred loan fees 144 78
Valuation allowance on other real estate 75 74
Deferred compensation arrangements 62 62
Total deferred tax assets 9,812 12,482
Less valuation allowance (234) (181)
Total deferred tax assets, net of valuation allowance 9,578 12,301
Intangible assets 1,277 1,324
Mortgage servicing rights 681 801
Prepaid expenses 586 554
Premises and equipment, net of depreciation 618 241
Investments 158
FHLB stock dividends 59 17
Unrealized gain on investment securities available-for-sale
Total deferred tax liabilities 3,379 2,937
Net deferred tax asset $ 6,199 $ 9,364
v3.24.1
Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Unrecognized tax benefits at beginning of year $ 2,157 $ 2,290
Gross increases to current year tax positions 472 390
Gross decreases to prior year’s tax positions (61) (61)
Lapse of statute of limitations (528) (462)
Unrecognized tax benefits at end of year $ 2,040 $ 2,157
v3.24.1
Income Taxes (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Operating loss carryforwards $ 4,600,000 $ 3,100,000  
Federal operating loss carryforwards 465,000 1,300,000  
Cumulative effect on retained earnings tax 6,300,000 6,300,000  
Unrecognized tax benefits, income tax penalties expense 528,000 462,000  
Unrecognized tax benefits 2,040,000 2,157,000 $ 2,290,000
Unrecognized tax benefits that would impact effective tax rate 1,600,000 1,700,000  
Income tax examination, penalties and interest expense 51,000 52,000 $ 298,000
Unrecognized tax benefits, income tax penalties and interest accrued 520,000 $ 571,000  
Maximum [Member]      
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Decrease in unrecognized tax benefits is reasonably possible $ 975,000    
v3.24.1
Employee Benefit Plans (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items]      
Eligible employees receive 100.00%    
Employer matching contribution, percent of match 6.00%    
Defined benefit plan, contributions by employer $ 857,000 $ 768,000 $ 800,000
Split Dollar Life Insurance Agreement [Member]      
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items]      
Deferred compensation liability 44,000 43,000  
Deferred Compensation Agreements [Member]      
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items]      
Deferred compensation arrangements accrued benefits 798,000 663,000  
Deferred compensation arrangement with individual, compensation expense $ 2,000 $ 1,000 $ 3,000
v3.24.1
Schedule of Fair Value of Options Assumed (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]    
Risk-free interest rate 4.15% 1.00%
Expected term 7 years 7 years
Expected stock price volatility 26.31% 28.51%
Dividend yield 397.00% 288.00%
v3.24.1
Schedule of Share-based Compensation, Stock Options, Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]      
Shares, outstanding beginning 144,572    
Weighted average exercise price per share, outstanding beginning $ 21.87    
Weighted average remaining contractual term beginning 6 years 9 months 18 days    
Aggregate intrinsic value outstanding beginning $ 502    
Shares, granted 81,111    
Weighted average exercise price per share, granted $ 20.16    
Shares, effect of 5% stock dividend 10,888    
Shares, forfeited/expired (5,470)    
Weighted average exercise price per share, forfeited/expired $ 22.90    
Shares, exercised (2,693) (112) (6,172)
Weighted average exercise price per share, Forfeited/expired $ 19.29    
Shares, outstanding ending 228,408 144,572  
Weighted average exercise price per share, outstanding ending $ 20.58 $ 21.87  
Weighted average remaining contractual term ending 7 years 2 months 12 days    
Aggregate intrinsic value outstanding ending $ 88 $ 502  
Shares, exercisable 114,561    
Weighted average exercise price per share, exercisable $ 20.05    
Weighted average remaining contractual term, exercisable 5 years 4 months 24 days    
Aggregate intrinsic value, exercisable $ 88    
Shares, fully vested options 114,561    
Weighted average exercise price per share $ 20.05    
Weighted average remaining contractual term 5 years 4 months 24 days    
Aggregate intrinsic value, Fully vested options $ 88    
v3.24.1
Schedule of Share-based Compensation, Stock Options, Activity (Details) (Parenthetical)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share based compensation effect of dividend percentage 5.00%
v3.24.1
Schedule of Stock Option Exercised Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]      
Intrinsic value of options exercised (on exercise date) $ 4 $ 3 $ 141
Cash received from options exercised 52 22
Excess tax benefit realized from options exercised $ 1 $ 21
v3.24.1
Schedule of Share-based Compensation Arrangements by Share-based Payment Award (Details)
Dec. 31, 2023
USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
2024 $ 150,000
2025 125,000
2026 90,000
2027 53,000
Total 418,000
Restricted Stock [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
2024 181,000
2025 92,000
2026 53,000
Total $ 326,000
v3.24.1
Schedule of Nonvested Share Activity (Details) - Restricted Stock [Member]
 12 Months Ended
Dec. 31, 2023
$ / shares
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Nonvested restricted common stock, beginning balance 26,057
Weighted average grant date price per share, beginning balance | $ / shares $ 23.50
Nonvested restricted common stock, granted 5,192
Weighted average grant date price per share, granted | $ / shares $ 21.17
Nonvested restricted common stock, vested (8,975)
Weighted average grant date price per share, vested | $ / shares $ 22.40
Nonvested restricted common stock, forfeited (350)
Weighted average grant date price per share, forfeited | $ / shares $ 17.80
Nonvested restricted common stock, effect of 5% stock dividend 1,077
Nonvested restricted common stock, ending balance 23,001
Weighted average grant date price per share, ending balance | $ / shares $ 22.40
v3.24.1
Schedule of Nonvested Share Activity (Details) (Parenthetical)
 12 Months Ended
Dec. 31, 2023
Restricted Stock [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Unrecognized restricted stock expense and number of nonvested restricted stock outstanding percent 5.00%
v3.24.1
Stock Compensation Plan (Details Narrative) - USD ($)
 12 Months Ended
Aug. 01, 2023
Aug. 01, 2022
Aug. 01, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
May 20, 2015
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Share-based compensation award vesting rights       four years      
Share-based payment arrangement, noncash expense       $ 352,000 $ 295,000 $ 323,000  
Share-based payment arrangement, expense, tax benefit       $ 84,000 77,000 113,000  
Share-based compensation arrangement , purchase price of common stock, percent       100.00%      
Unrecognized compensation       $ 418,000      
Vested in period, fair value       187,000 $ 223,000 $ 229,000  
Share-Based Payment Arrangement, Option [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Unrecognized compensation       $ 418,000      
Outstanding nonvested restricted shares       113,847      
Restricted Stock [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Unrecognized compensation       $ 326,000      
Outstanding nonvested restricted shares       23,001      
2015 Stock Incentive Plan [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Common stock, capital shares reserved for future issuance             387,832
Stock issued during period, shares,committee awarded 5,452 19,350 3,334        
Options to acquire shares 85,167   56,328        
Share price $ 20.16 $ 23.12 $ 23.97        
v3.24.1
Schedule of Fair Value, by Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment securities available-for-sale $ 452,769 $ 489,306
Investment securities held-to-maturity 3,555 3,524
Loans held for sale 853 2,488
Mortgage servicing rights 3,158 3,813
Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans held for sale 853 2,488
Derivative financial instruments $ 114 $ 126
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Loans held for sale, at fair value Loans held for sale, at fair value
Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents $ 27,101 $ 23,156
Interest-bearing deposits at other banks
Investment securities available-for-sale 95,667 123,111
Investment securities held-to-maturity
Loans, net
Loans held for sale
Mortgage servicing rights
Accrued interest receivable 327 426
Derivative financial instruments
Non-maturity deposits (1,133,097) (1,207,371)
Certificates of deposit
FHLB and other borrowings
Subordinated debentures
Repurchase agreements
Accrued interest payable
Derivative financial instruments  
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans held for sale
Derivative financial instruments
Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents
Interest-bearing deposits at other banks 4,918 9,084
Investment securities available-for-sale 357,102 366,195
Investment securities held-to-maturity 3,049 3,452
Loans, net
Loans held for sale 853 2,488
Mortgage servicing rights 9,498 10,282
Accrued interest receivable 2,280 2,150
Derivative financial instruments $ 114 126
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Loans held for sale, at fair value  
Non-maturity deposits
Certificates of deposit (181,655) (90,760)
FHLB and other borrowings (65,478) (14,981)
Subordinated debentures (18,906) (18,189)
Repurchase agreements (12,714) (29,402)
Accrued interest payable (1,979) (439)
Derivative financial instruments (14)  
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans held for sale 853 2,488
Derivative financial instruments $ 114 $ 126
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Loans held for sale, at fair value Loans held for sale, at fair value
Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents
Interest-bearing deposits at other banks
Investment securities available-for-sale
Investment securities held-to-maturity
Loans, net 920,984 828,726
Loans held for sale
Mortgage servicing rights
Accrued interest receivable 4,734 3,303
Derivative financial instruments
Non-maturity deposits
Certificates of deposit
FHLB and other borrowings
Subordinated debentures
Repurchase agreements
Accrued interest payable
Derivative financial instruments  
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans held for sale
Derivative financial instruments
Fair Value Measured at Net Asset Value Per Share [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 27,101 23,156
Interest-bearing deposits at other banks 4,918 9,084
Investment securities available-for-sale 452,769 489,306
Investment securities held-to-maturity 3,049 3,452
Loans, net 920,984 828,726
Loans held for sale 853 2,488
Mortgage servicing rights 9,498 10,282
Accrued interest receivable 7,341 5,879
Derivative financial instruments $ 114 $ 126
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Loans held for sale, at fair value Loans held for sale, at fair value
Non-maturity deposits $ (1,133,097) $ (1,207,371)
Certificates of deposit (181,655) (90,760)
FHLB and other borrowings (65,478) (14,981)
Subordinated debentures (18,906) (18,189)
Repurchase agreements (12,714) (29,402)
Accrued interest payable (1,979) (439)
Derivative financial instruments (14)  
Reported Value Measurement [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 27,101 23,156
Interest-bearing deposits at other banks 4,918 9,084
Investment securities available-for-sale 452,769 489,306
Investment securities held-to-maturity 3,555 3,524
Investment in federal home loan bank stock fair value 8,123 5,470
Loans, net 937,619 841,149
Loans held for sale 853 2,488
Mortgage servicing rights 3,158 3,813
Accrued interest receivable 7,341 5,879
Derivative financial instruments $ 114 $ 126
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Loans held for sale, at fair value Loans held for sale, at fair value
Non-maturity deposits $ (1,133,097) $ (1,207,371)
Certificates of deposit (183,154) (93,278)
FHLB and other borrowings (64,662) (17,200)
Subordinated debentures (21,651) (21,651)
Repurchase agreements (12,714) (29,402)
Accrued interest payable (1,979) $ (439)
Derivative financial instruments $ (14)  
v3.24.1
Schedule of Fair Value, Assets Measured On Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Available-for-sale securities    
Investment securities available-for-sale, at fair value $ 452,769 $ 489,306
Loans held for sale 853 2,488
Fair Value, Inputs, Level 1 [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 95,667 123,111
Loans held for sale
Derivative financial instruments
Fair Value, Inputs, Level 2 [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 357,102 366,195
Loans held for sale 853 2,488
Derivative financial instruments $ 114 126
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Loans held for sale, at fair value  
Fair Value, Inputs, Level 3 [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value
Loans held for sale
Derivative financial instruments
Fair Value, Recurring [Member]    
Available-for-sale securities    
Loans held for sale 853 2,488
Derivative financial instruments $ 114 $ 126
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Loans held for sale, at fair value Loans held for sale, at fair value
Liabilities:    
Derivative financial instruments $ (14)  
Fair Value, Recurring [Member] | US Treasury Securities [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 95,667 $ 123,111
Fair Value, Recurring [Member] | Municipal Obligations, Tax Exempt [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 120,623 127,262
Fair Value, Recurring [Member] | Municipal Obligations, Taxable [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 79,083 67,244
Fair Value, Recurring [Member] | Agency Mortgage-backed Securities [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 157,396 169,701
Fair Value, Recurring [Member] | US Federal Agency Obligations [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value   1,988
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale securities    
Loans held for sale
Derivative financial instruments
Liabilities:    
Derivative financial instruments  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 95,667 123,111
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal Obligations, Tax Exempt [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal Obligations, Taxable [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Agency Mortgage-backed Securities [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Federal Agency Obligations [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale securities    
Loans held for sale 853 2,488
Derivative financial instruments $ 114 $ 126
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Loans held for sale, at fair value Loans held for sale, at fair value
Liabilities:    
Derivative financial instruments $ (14)  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Obligations, Tax Exempt [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 120,623 127,262
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Obligations, Taxable [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 79,083 67,244
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Agency Mortgage-backed Securities [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value 157,396 169,701
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Federal Agency Obligations [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value   1,988
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale securities    
Loans held for sale
Derivative financial instruments
Liabilities:    
Derivative financial instruments  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal Obligations, Tax Exempt [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal Obligations, Taxable [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Agency Mortgage-backed Securities [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Federal Agency Obligations [Member]    
Available-for-sale securities    
Investment securities available-for-sale, at fair value  
v3.24.1
Schedule of Fair Value Contractual Balance and Gain Loss On Loans Held for Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Fair Value Disclosures [Abstract]    
Aggregate fair value $ 853 $ 2,488
Contractual balance 848 2,468
Gain $ 5 $ 20
v3.24.1
Schedule of Gains and Losses from Changes in Fair Value of Loans Held for Sale (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]      
Total change in fair value $ (26) $ (368) $ (836)
v3.24.1
Schedule of Fair Value Measurements On Nonrecurring, Valuation Techniques (Details) - Fair Value, Nonrecurring [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
One to Four Family Residential Real Estate [Member] | Individual Evaluated Loans [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans Fair Value Disclosure $ 31  
Fair Value Measurements, Valuation Techniques Sales comparison  
Fair Value Measurements, Unobservable inputs Adjustment to appraised value  
Fair Value Measurements Range 7.00%  
One to Four Family Residential Real Estate [Member] | Real Estate Owned [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans Fair Value Disclosure $ 266 $ 272
Fair Value Measurements, Valuation Techniques Sales comparison Sales comparison
Fair Value Measurements, Unobservable inputs Adjustment to appraised value Adjustment to appraised value
Fair Value Measurements Range 10.00% 15.00%
Commercial Loan [Member] | Individual Evaluated Loans [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans Fair Value Disclosure $ 1,386  
Fair Value Measurements, Valuation Techniques Sales comparison  
Fair Value Measurements, Unobservable inputs Adjustment to comparable sales  
Commercial Loan [Member] | Individual Evaluated Loans [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value Measurements Range 0.00%  
Commercial Loan [Member] | Individual Evaluated Loans [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value Measurements Range 50.00%  
Commercial Loan [Member] | Impaired Loans [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans Fair Value Disclosure   $ 101
Fair Value Measurements, Valuation Techniques   Sales comparison
Fair Value Measurements, Unobservable inputs   Adjustment to comparable sales
Commercial Loan [Member] | Impaired Loans [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value Measurements Range   0.00%
Commercial Loan [Member] | Impaired Loans [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value Measurements Range   25.00%
Commercial Real Estate Loans [Member] | Real Estate Owned [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans Fair Value Disclosure   $ 234
Fair Value Measurements, Valuation Techniques   Sales comparison
Fair Value Measurements, Unobservable inputs   Adjustment to appraised value
Fair Value Measurements Range   15.00%
v3.24.1
Fair Value of Financial Instruments and Fair Value Measurements (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]      
Impaired loan balance $ 4,300,000 $ 4,129,000 $ 6,718,000
Impaired loss 1,700,000 755,000  
Related allowance recorded $ 311,000 $ 654,000 $ 504,000
v3.24.1
Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Actual Ratio, Leverage 0.040  
For capital adequacy purposes Ratio, Tier 1 Capital 0.045  
Companys Regulatory Capital Requirements [Member]    
Actual Amount, Leverage $ 130,625 $ 122,275
Actual Ratio, Leverage 0.0841 0.0814
For capital adequacy purposes Amount, Leverage $ 62,116 $ 60,100
For capital adequacy purposes Ratio, Leverage [1] 4.00% 4.00%
Actual Amount, Common Equity Tier 1 Capital $ 109,625 $ 101,275
Actual Ratio, Common Equity Tier 1 Capital 10.39% 10.37%
For capital adequacy purposes Amount, Common Equity Tier 1 Capital $ 73,854 $ 68,352
For capital adequacy purposes Ratio, Common Equity Tier 1 Capital [1] 7.00% 7.00%
Actual Amount, Tier 1 Capital $ 130,625 $ 122,275
Actual Ratio, Tier 1 Capital 0.1238 0.1252
For capital adequacy purposes Amount, Tier 1 Capital $ 89,680 $ 82,999
For capital adequacy purposes Ratio, Tier 1 Capital [1] 0.085 0.085
Actual Amount, Total Risk Based Capital $ 140,671 $ 131,236
Actual Ratio, Total Risk Based Capital 0.1333 0.1344
For capital adequacy purposes Amount, Total Risk Based Capital $ 110,781 $ 102,528
For capital adequacy purposes Ratio, Total Risk Based Capital [1] 0.105 0.105
[1] The required percent for capital adequacy purposes includes a capital conservation buffer of 2.5%.
v3.24.1
Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies (Details) (Parenthetical)
 12 Months Ended
Dec. 31, 2023
Companys Regulatory Capital Requirements [Member]  
Tier one capital conversation buffer 2.50%
v3.24.1
Schedule of Compliance with Regulatory Capital Requirements Under Banking Regulations (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Actual Ratio, Leverage 0.040  
To be well-capitalized under prompt corrective action provisions, Ratio, Tier 1 Capital 0.060  
To be well-capitalized under prompt corrective action provisions, Ratio, Total Risk Based Capital 0.080  
Banks Regulatory Capital Requirements [Member]    
Actual Amount, Leverage $ 134,422 $ 128,643
Actual Ratio, Leverage 0.0868 0.0859
For capital adequacy purposes Amount, Leverage $ 61,951 $ 59,933
For capital adequacy purposes Ratio, Leverage [1] 0.040 0.040
To be well-capitalized under prompt corrective action provisions, Amount, Leverage $ 77,439 $ 74,917
To be well-capitalized under prompt corrective action provisions, Ratio, Leverage 0.050 0.050
Actual Amount, Common Equity Tier 1 Capital $ 134,422 $ 128,643
Actual Ratio, Common Equity Tier 1 Capital 12.74% 13.18%
For capital adequacy purposes Amount, Common Equity Tier 1 Capital $ 73,833 $ 68,309
For capital adequacy purposes Ratio, Common Equity Tier 1 Capital [1] 7.00% 7.00%
To be well-capitalized under prompt corrective action provisions, Amount, Common Equity Tier 1 Capital $ 68,560 $ 63,430
To be well-capitalized under prompt corrective action provisions, Ratio, Common Equity Tier 1 Capital 0.065 0.065
Actual Amount, Tier 1 Capital $ 134,422 $ 128,643
Actual Ratio, Tier 1 Capital 0.1274 0.1318
For capital adequacy purposes Amount, Tier 1 Capital $ 89,655 $ 82,947
For capital adequacy purposes Ratio, Tier 1 Capital [1] 0.085 0.085
To be well-capitalized under prompt corrective action provisions, Amount, Tier 1 Capital $ 84,381 $ 78,068
To be well-capitalized under prompt corrective action provisions, Ratio, Tier 1 Capital 0.080 0.080
Actual Amount, Total Risk Based Capital $ 144,468 $ 137,604
Actual Ratio, Total Risk Based Capital 0.1370 0.1410
For capital adequacy purposes Amount, Total Risk Based Capital $ 110,750 $ 102,464
For capital adequacy purposes Ratio, Total Risk Based Capital [1] 0.105 0.105
To be well-capitalized under prompt corrective action provisions, Amount, Total Risk Based Capital $ 105,476 $ 97,585
To be well-capitalized under prompt corrective action provisions, Ratio, Total Risk Based Capital 0.100 0.100
[1] The required percent for capital adequacy purposes includes a capital conservation buffer of 2.5%.
v3.24.1
Schedule of Compliance with Regulatory Capital Requirements Under Banking Regulations (Details) (Parenthetical)
 12 Months Ended
Dec. 31, 2023
Banks Regulatory Capital Requirements [Member]  
Tier one capital conversation buffer 2.50%
v3.24.1
Regulatory Capital Requirements (Details Narrative)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Line of Credit Facility [Line Items]    
Assets, total $ 1,561,672 $ 1,502,867
Common equity tier one risk based capital required for capital adequacy to risk weighted assets 0.045  
Tier one risk based capital required for capital adequacy to risk weighted assets 0.060  
Capital required for capital adequacy to risk weighted assets 0.080  
Tier one leverage capital required for capital adequacy to average assets 0.040  
Capital Conservation Buffer [Member]    
Line of Credit Facility [Line Items]    
Tier one capital conversation buffer 2.50%  
Small Bank Holding Companies [Member]    
Line of Credit Facility [Line Items]    
Assets, total $ 3,000,000  
v3.24.1
Schedule of Condensed Financial Statements (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Condensed Financial Statements, Captions [Line Items]        
Cash and cash equivalents $ 27,101 $ 23,156    
Interest-bearing deposits at other banks 4,918 9,084    
Total assets 1,561,672 1,502,867    
Subordinated debentures 21,651 21,651    
Other borrowings 12,714 29,402    
Stockholders’ equity 126,914 111,433 $ 135,643 $ 126,672
Total liabilities and stockholders’ equity 1,561,672 1,502,867    
Other non-interest income 1,074 928 1,093  
Interest expense (21,391) (4,346) (1,506)  
Income tax benefit 1,954 1,432 4,814  
Net earnings 12,236 9,878 18,011  
Other comprehensive income (loss) 8,510 (28,946) (5,567)  
Total comprehensive income 20,746 (19,068) 12,444  
Net cash provided by operating activities 12,604 24,780 31,159  
Net change in interest-bearing deposits at banks 4,150 (1,728) (1,918)  
Net cash (used in) provided by investing activities (50,611) (197,159) (56,454)  
Proceeds from exercise of stock options 52 22  
Payment of dividends (4,390) (4,198) (3,818)  
Net cash (used in) provided by financing activities 41,952 6,322 129,690  
Net increase (decrease) in cash 3,945 (166,057) 104,395  
Cash and cash equivalents at beginning of year 23,156 189,213 84,818  
Cash and cash equivalents at end of year 27,101 23,156 189,213  
Parent Company [Member]        
Condensed Financial Statements, Captions [Line Items]        
Cash and cash equivalents 286 166    
Interest-bearing deposits at other banks 215 214    
Investment in subsidiaries 153,813 140,802    
Other 990 959    
Total assets 155,304 142,141    
Subordinated debentures 21,651 21,651    
Other borrowings 6,649 9,000    
Other 90 57    
Stockholders’ equity 126,914 111,433    
Total liabilities and stockholders’ equity 155,304 142,141    
Dividends from Bank 8,000 29,350 4,600  
Dividends from nonbank subsidiary 1,000 490 1,000  
Interest income 51 26 16  
Other non-interest income 8 8 7  
Interest expense (2,113) (998) (472)  
Other expense, net (620) (412) (532)  
Earnings before equity in undistributed earnings 6,326 28,464 4,619  
Increase (decrease) in undistributed equity of Bank 5,252 (19,030) 13,599  
Increase (decrease) in undistributed equity of nonbank subsidiary 102 155 (272)  
Earnings before income taxes 11,680 9,589 17,946  
Income tax benefit (556) (289) (65)  
Net earnings 12,236 9,878 18,011  
Other comprehensive income (loss) 8,510 (28,946) (5,567)  
Total comprehensive income 20,746 (19,068) 12,444  
Decrease (increase) in undistributed equity of subsidiaries (5,354) 18,875 (13,327)  
Other 1 79 130  
Net cash provided by operating activities 6,883 28,832 4,814  
Net change in interest-bearing deposits at banks 1 (2)  
Acquisition of Freedom Bancshares, Inc. (33,350)  
Net cash (used in) provided by investing activities 1 (33,350) (2)  
Proceeds from exercise of stock options 52 22  
Payment of dividends (4,390) (4,198) (3,818)  
Purchase of treasury stock (75) (1,239)  
Issuances of outstanding debt 10,065  
Payment on outstanding debt (2,351) (1,065)  
Net cash (used in) provided by financing activities (6,764) 3,563 (3,796)  
Net increase (decrease) in cash 120 (955) 1,016  
Cash and cash equivalents at beginning of year 166 1,121 105  
Cash and cash equivalents at end of year $ 286 $ 166 $ 1,121  
v3.24.1
Parent Company Condensed Financial Statements (Details Narrative)
$ in Millions
Dec. 31, 2023
USD ($)
Condensed Financial Information Disclosure [Abstract]  
Distribution of dividends $ 12.9