THIRD COAST BANCSHARES, INC., 10-K filed on 3/7/2024
Annual Report
v3.24.0.1
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Mar. 06, 2024
Jun. 30, 2023
Document Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2023    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Entity Registrant Name THIRD COAST BANCSHARES, INC.    
Entity Central Index Key 0001781730    
Current Fiscal Year End Date --12-31    
Entity Voluntary Filers No    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company true    
Entity Ex Transition Period false    
ICFR Auditor Attestation Flag false    
Entity Shell Company false    
Title of 12(b) Security Common Stock, par value $1.00 per share    
Trading Symbol TCBX    
Security Exchange Name NASDAQ    
Entity Current Reporting Status Yes    
Entity Well-known Seasoned Issuer No    
Entity Interactive Data Current Yes    
Entity Incorporation, State or Country Code TX    
Entity File Number 001-41028    
Entity Tax Identification Number 46-2135597    
Entity Address, Address Line One 20202 Highway 59 North    
Entity Address, Address Line Two Suite 190    
Entity Address, City or Town Humble    
Entity Address, State or Province TX    
Entity Address, Postal Zip Code 77338    
City Area Code 281    
Local Phone Number 446-7000    
Document Annual Report true    
Document Transition Report false    
Entity Public Float     $ 201.7
Documents Incorporated by Reference

Documents Incorporated by Reference

Portions of the registrant's Definitive Proxy Statement relating to the 2024 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K.

    
Auditor Name Whitley Penn LLP    
Auditor Location Dallas, Texas    
Auditor Firm ID 726    
Document Financial Statement Error Correction [Flag] false    
Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   13,607,107  
Non-Voting Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   0  
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Cash and cash equivalents:    
Cash and due from banks $ 296,926 $ 329,864
Federal funds sold 114,919 2,150
Total cash and cash equivalents 411,845 332,014
Investment securities available for sale 178,087 176,067
Loans, net of allowance for credit losses of $37,022 and $30,351 at December 31, 2023 and 2022, respectively 3,601,766 3,077,200
Accrued interest receivable 23,120 18,340
Premises and equipment, net 28,554 28,662
Bank-owned life insurance 65,861 60,761
Non-marketable equity securities, at cost 16,041 14,618
Deferred tax asset, net 9,227 6,303
Derivative assets 8,828 9,213
Right-of-use asset - operating leases 21,439 17,872
Core Deposit Intangible, net 969 1,131
Goodwill 18,034 18,034
Other assets 12,303 12,933
Total assets 4,396,074 3,773,148
Deposits:    
Noninterest bearing 459,553 486,114
Interest bearing 3,343,595 2,750,032
Total deposits 3,803,148 3,236,146
Accrued interest payable 4,794 2,545
Derivative liabilities 10,687 9,221
Lease liability - operating leases 22,280 18,209
Other liabilities 23,763 14,024
Line of credit - Senior Debt 38,875 30,875
Note payable - Subordinated Debt, net 80,553 80,348
Total liabilities 3,984,100 3,391,368
Shareholders' equity:    
Series A Convertible Non-Cumulative Preferred Stock, $1 par value; 69,400 shares authorized and outstanding at December 31, 2023 and 2022, respectively 69 69
Common stock, $1 par value; 50,000,000 shares authorized; 13,683,127 and 13,610,198 issued; and 13,604,665 and 13,531,736 outstanding at December 31, 2023 and 2022, respectively 13,683 13,610
Additional paid-in capital 319,613 318,033
Retained earnings 78,775 53,270
Accumulated other comprehensive income (loss) 933 (2,103)
Treasury stock: at cost; 78,462 shares at December 31, 2023 and 2022, respectively (1,099) (1,099)
Total shareholders' equity 411,974 381,780
Total liabilities & shareholders' equity $ 4,396,074 $ 3,773,148
v3.24.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Loans, net of allowance for loan loss $ 37,022 $ 30,351
Preferred stock, par value $ 1 $ 1
Preferred stock, shares authorized 1,000,000 1,000,000
Common stock, par value $ 1 $ 1
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 13,683,127 13,610,198
Common stock, shares outstanding 13,604,665 13,531,736
Treasury stock, shares 78,462 78,462
Series A Convertible Non-cumulative Preferred Stock    
Preferred stock, par value $ 1 $ 1
Preferred stock, shares authorized 69,400 69,400
Preferred stock, shares outstanding 69,400 69,400
Series B Convertible Perpetual Preferred Stock    
Preferred stock, par value $ 1 $ 1
Preferred stock, shares authorized 69,400 69,400
Non-Voting Common Stock    
Common stock, par value $ 1 $ 1
Common stock, shares authorized 3,500,000 0
v3.24.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Interest income:      
Loans, including fees $ 248,911 $ 146,425 $ 98,886
Investment securities available-for-sale 8,313 3,925 1,043
Federal funds sold and other 9,320 3,596 686
Total interest income 266,544 153,946 100,615
Interest expense:      
Deposit accounts 115,044 30,696 8,526
FHLB advances and other borrowings 11,975 6,796 1,536
Total interest expense 127,019 37,492 10,062
Net interest income 139,525 116,454 90,553
Provision for credit losses 6,320 12,200 9,923
Net interest income after provision for credit losses 133,205 104,254 80,630
Noninterest income:      
Services charges and fees 3,233 2,714 2,367
Gain on sale of investment securities available-for-sale (482)    
Gain on sales of SBA loans 440 950 586
Earnings on bank-owned life insurance 2,101 1,312 567
Derivative fees 763 1,259 820
Other 1,186 988 538
Total noninterest income 8,205 7,223 4,878
Noninterest expense:      
Salaries and employee benefits 62,217 56,510 48,642
Data processing and network expense 4,735 3,947 3,060
Occupancy and equipment expense 11,285 8,526 5,367
Legal and professional 7,783 6,987 5,293
Loan operations 673 988 1,963
Advertising and marketing 2,627 1,912 1,889
Telephone and communications 510 496 595
Software purchases and maintenance 2,375 1,012 852
Regulatory assessments 2,598 3,464 1,101
Loss on sale of other real estate owned   350 344
Other 4,995 4,117 1,919
Total noninterest expense 99,798 88,309 71,025
Net income before income tax expense 41,612 23,168 14,483
Income tax expense 8,211 4,509 3,059
Net income 33,401 18,659 11,424
Preferred stock dividends declared (4,736) (1,418)  
Net income available to common shareholders $ 28,665 $ 17,241 $ 11,424
Earnings per common share:      
Basic earnings per share $ 2.11 $ 1.28 $ 1.45
Diluted earnings per share $ 1.98 $ 1.25 $ 1.40
v3.24.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Other Comprehensive Income [Abstract]      
Net Income (Loss) $ 33,401 $ 18,659 $ 11,424
Other comprehensive income (loss):      
Unrealized holding gain (loss) arising during the period 2,529 (7,049) 861
Reclassification for net gains realized through the sale of securities (482)    
Income tax benefit (expense) (430) 1,480 (181)
Other comprehensive income (loss) on securities 1,617 (5,569) 680
Unrealized gain (loss) on derivatives:      
Unrealized holding loss arising during the period (1,541)   (216)
Gain on termination of derivative instruments 5,007 3,025 945
Reclassification adjustment for accretion of gain on terminated cash flow hedges recorded in interest expense during the period (1,670) (401) (180)
Income tax expense (377) (551) (115)
Other comprehensive income on derivatives 1,419 2,073 434
Total other comprehensive income (loss) 3,036 (3,496) 1,114
Total comprehensive income $ 36,437 $ 15,163 $ 12,538
v3.24.0.1
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Additional Paid in Capital
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Less: ESOP-Owned Shares
Initial Public Offering
Initial Public Offering
Additional Paid in Capital
Private Placement Offering
Private Placement Offering
Additional Paid in Capital
Series A Preferred Stock
Series A Preferred Stock
Retained Earnings
Series A Preferred Stock
Preferred Stock
Series A Preferred Stock
Private Placement Offering
Preferred Stock
Voting
Common Stock
Voting
Initial Public Offering
Common Stock
Voting
Private Placement Offering
Common Stock
Balance at Dec. 31, 2020 $ 120,416   $ 91,462 $ 24,605   $ 279 $ (978) $ (1,302)                 $ 6,350    
Net Income (Loss) 11,424     11,424                              
Share-based compensation 659   659                                
Warrants exercised 19   17                           2    
Stock options exercised 995   912                           83    
Stock issued from initial public offering and private placement offering                 $ 92,043 $ 88,018 $ 70,509 $ 67,571           $ 4,025 $ 2,938
Issuance of common stock to ESOP     613         (647)                 34    
Terminated ESOP put option 2,266             2,266                      
Restricted stock grants     (50)                           50    
Net change in fair value of ESOP shares (317)             $ (317)                      
Net redemption of treasury stock (121)           (121)                        
Other comprehensive income (loss), net of tax 1,114         1,114                          
Balance at Dec. 31, 2021 299,007   249,202 36,029   1,393 (1,099)                   13,482    
Net Income (Loss) 18,659     18,659                              
Share-based compensation 1,275   1,275                                
Stock options exercised 672   625                           47    
Stock issued from initial public offering and private placement offering                     $ 66,225 $ 66,156       $ 69      
Issuance of common stock to ESOP 856   820                           36    
Restricted stock grants     (45)                           45    
Other comprehensive income (loss), net of tax (3,496)         (3,496)                          
Preferred dividends declared - Series A                         $ (1,418) $ (1,418)          
Balance at Dec. 31, 2022 381,780   318,033 53,270   (2,103) (1,099)               $ 69   13,610    
Net Income (Loss) 33,401     33,401                              
Share-based compensation 1,628   1,628                                
Warrants exercised 47   43                           4    
Stock options exercised     1                           1    
Restricted stock grants     (81)                           81    
Restricted stock forfeited or withheld to satisfy tax obligations (22)   (9)                           (13)    
Other comprehensive income (loss), net of tax 3,036         3,036                          
Preferred dividends declared - Series A (4,736)     (4,736)                              
Balance at Dec. 31, 2023 $ 411,974   $ 319,613 $ 78,775   $ 933 $ (1,099)               $ 69   $ 13,683    
Balance (ASU 2016-13) at Dec. 31, 2023   $ (3,160)     $ (3,160)                            
v3.24.0.1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]    
Preferred dividends declared per share - Series A $ 68.25 $ 20.44
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:      
Net income $ 33,401 $ 18,659 $ 11,424
Adjustments to reconcile net income to net cash provided by operating activities:      
Provision for credit losses 6,320 12,200 9,923
Changes in deferred tax, net (2,891) (1,250) (380)
Share based compensation expense 1,628 1,275 659
Gain on sale of investment securities available-for-sale (482)    
Gain on sale of SBA loans (440) (950) (586)
Loss on sale of other real estate owned   350 344
(Accretion) Amortization of premium on securities, net (409) 392 34
Accretion of gain on terminated cash flow hedges (1,670) (401) (180)
Accretion of SBA Paycheck Protection Program fees (23) (2,039) (19,249)
Amortization of subordinated debt origination costs 205 154  
Depreciation, amortization and accretion (465) (479) (270)
Earnings on bank-owned life insurance (2,101) (1,312) (567)
Proceeds from sale of loans held for sale     2,346
Net change in operating leases 504 337  
Net change in derivative assets and liabilities 310 8  
Changes in operating assets and liabilities:      
Accrued interest receivable and other assets (4,388) (12,707) 749
Accrued interest payable and other liabilities 9,576 7,554 337
Net cash provided by operating activities 39,075 21,791 4,584
Cash flows from investing activities:      
Net decrease (increase) in interest bearing deposits in other banks   131 (2)
Net purchase of non-marketable equity securities (1,423) (7,878) (3,120)
Investment securities available-for-sale activity:      
Purchases (3,116,566) (2,159,237) (1,997,000)
Sales 13,939    
Maturities, calls and principal paydowns 3,103,545 2,002,160 1,996,989
Proceeds from termination of derivative instruments 5,007 3,025 945
Net originations on loans held for investment (527,600) (1,033,947) (493,601)
Net additions to bank premises and equipment (3,437) (12,189) (5,620)
Proceeds from disposal of fixed assets   1,326  
Proceeds from sales of foreclosed assets     1,347
Purchase of bank owned life insurance (3,000) (32,921)  
Net cash used in investing activities (529,535) (1,239,530) (500,062)
Cash flows from financing activities:      
Net increase in deposits 567,002 1,095,127 507,726
Net repayment of FHLB Advances   (50,000) (20,000)
Net proceeds from subordinated debt issuance   80,194  
Net repayment of subordinated notes payable - related party     (13,000)
Proceeds from (repayment of) line of credit - senior debt 8,000 29,875 (19,875)
Proceeds from stock warrants exercised 47   19
Forfeiture of restricted stock grants withheld to satisfy tax obligations (22)    
Proceeds from stock options exercised   672 995
Dividends paid on Series A preferred stock (4,736) (221)  
Net redemption of treasury stock     (121)
Net cash provided by financing activities 570,291 1,222,728 618,943
Change in cash and cash equivalents 79,831 4,989 123,465
Cash and cash equivalents at beginning of period 332,014 327,025 203,560
Cash and cash equivalents at end of period 411,845 332,014 327,025
Supplemental Disclosures of Cash Flow Information:      
Cash paid for interest 124,770 35,384 10,840
Cash paid for income taxes 8,567 7,065 6,225
Supplemental Disclosure of Noncash Investing and Financing Activities:      
Right of use lease assets obtained in exchange for operating lease liabilities $ 5,702 19,211  
Net increase in fair value of ESOP-owned shares     (317)
Terminated ESOP put option     2,266
2021 Private Placement Offering      
Cash flows from financing activities:      
Net proceeds from issuance of common stock     70,509
2022 Private Placement Offering      
Cash flows from financing activities:      
Net proceeds from issuance of preferred stock   66,225  
Initial Public Offering      
Cash flows from financing activities:      
Net proceeds from issuance of common stock     92,043
ESOP Contributions      
Cash flows from financing activities:      
Net proceeds from issuance of common stock   $ 856 $ 647
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure                      
Net Income (Loss) $ 9,689 $ 5,578 $ 8,891 $ 9,243 $ 7,525 $ 6,770 $ 2,277 $ 2,087 $ 33,401 $ 18,659 $ 11,424
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.0.1
Nature of Operations and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Third Coast Bancshares, Inc. (“Bancshares”), through its subsidiary, Third Coast Bank, SSB, a Texas state savings bank (the “Bank”), and the Bank’s subsidiary, Third Coast Commercial Capital, Inc. (“TCCC”), (collectively known as the “Company,” “we,” “us” or “our”), provide general consumer and commercial banking services through 16 branch offices located in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets. Branch locations include: Humble, Kingwood, Beaumont, Port Arthur, Houston-Galleria, Conroe, Pearland, Lake Jackson, Dallas, Fort Worth, Plano, Detroit, La Vernia, Nixon, Georgetown and San Antonio. The Bank is engaged in traditional community banking activities, which include commercial and retail lending, deposit gathering, and investment and liquidity management activities. The Bank’s primary deposit products are demand deposits, money market accounts and certificates of deposit; its primary lending products are commercial business and real estate, residential construction, real estate mortgage and consumer loans. TCCC engages in accounts receivable factoring activities. The Company is subject to the regulations of certain government agencies and undergoes periodic examinations by those regulatory authorities.

Basis of Presentation

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), reporting practices prescribed by the financial services industry, and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments that were recurring in nature and considered necessary have been included for fair presentation of the Company’s financial position and results of operations.

The accompanying consolidated financial statements include the accounts of Bancshares, the Bank, and TCCC. All significant intercompany transactions and balances have been eliminated in consolidation.

The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the consolidated financial statements were issued.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and of the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Material estimates that are included in the financial statements include the allowance for credit losses, the valuation of goodwill and other intangible assets and the fair value of financial instruments.

Cash and Cash Equivalents

Cash and cash equivalents include cash, deposits with other financial institutions that have initial maturities of less than 90 days when acquired by the Company and federal funds sold.

Investment Securities Available-For-Sale

Investment securities available-for-sale consist of bonds, notes, and debentures that are not classified as trading securities or held-to-maturity securities. Investment securities available-for-sale are held for indefinite periods of time and carried at fair value, with the unrealized holding gains and losses reported as a component of other comprehensive income (loss), net of tax. Management determines the appropriate classification of investment securities at the time of purchase.

Loans

Loans are stated at the amount of unpaid principal, reduced by unearned income and an allowance for credit losses (“ACL”). Interest on loans is recognized using the effective interest method and includes amortization of deferred loan origination fees and costs over the life of the loans.

The accrual of interest on loans is discontinued when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. A loan is placed back on accrual status when both principal and interest are current and it is probable that the Company will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement.

From time to time, the Company modifies its loan agreement with a borrower. The loan refinancing and restructuring guidance is considered for each loan modified to determine whether a modification results in a new loan or a continuation of an existing loan. In

some cases, the loan may be considered restructured if the borrower is experiencing financial difficulties and the loan has been modified. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension or a combination thereof, among other things.

The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, non-performing, and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees.

Real estate loans are also subject to underwriting standards and processes similar to commercial and agricultural loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location primarily throughout the Greater Houston, Dallas, and Austin-San Antonio metropolitan areas. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. Generally, real estate loans are owner occupied which further reduces the Company’s risk.

Agricultural loans are subject to underwriting standards and processes similar to commercial loans. Agricultural loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most agricultural loans are secured by the agriculture related assets being financed, such as farmland, cattle, or equipment, and include personal guarantees.

The Company utilizes methodical credit standards and analysis to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk.

Allowance for Credit Losses

As further discussed below, we adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” on January 1, 2023. Accounting Standards Codification (“ASC”) Topic 326 (“ASC 326”) replaced the previous “incurred loss” model for measuring credit losses, which encompassed allowances for current known and inherent losses within the portfolio, with an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. The new current expected credit loss (“CECL”) model requires the measurement of all expected credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures based on historical experience, current conditions, and reasonable and supportable forecasts. In connection with the adoption of ASC 326, we revised certain accounting policies and implemented certain accounting policy elections. The revised accounting policies are described below.

Allowance For Credit Losses - Available-for-Sale Securities: For available-for-sale securities in an unrealized loss position, we first assess whether (i) we intend to sell or (ii) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either case is affirmative, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither case is affirmative, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any 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 is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, 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. Adjustments to the allowance are reported in our income statement as a component of provision for credit loss expense. Management has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance,

written down through income when deemed uncollectible by management or when either of the aforementioned criteria regarding intent or requirement to sell is met. Further information regarding our policies and methodology used to estimate the allowance for credit losses on available-for-sale securities is presented in Note 2 – Investment Securities Available-for-Sale.

Prior to the adoption of ASU 2016-13, declines in the fair value of available-for-sale securities below their cost that were deemed to be other than temporary were reflected in earnings as realized losses. In estimating other-than-temporary impairment losses prior to January 1, 2023, management considered, among other things, (i) the length of time and the extent to which the fair value had been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Allowance for Credit Losses - Loans: The allowance for credit losses on loans is a contra-asset valuation account, calculated in accordance with ASC 326, that is deducted from the amortized cost basis of loans to present management's best estimate of the net amount expected to be collected. Loans are charged-off against the allowance when deemed uncollectible by management. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Adjustments to the allowance are reported in our income statement as a component of provision for credit loss expense. Management has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. Further information regarding our policies and methodology used to estimate the allowance for credit losses on loans is presented in Note 3 – Loans and Allowance for Credit Losses.

Allowance For Credit Losses - Off-Balance Sheet Credit Exposures: The allowance for credit losses on off-balance sheet credit exposures is a liability account, calculated in accordance with ASC 326, representing expected credit losses over the contractual period for which we are exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if we have the unconditional right to cancel the obligation. The allowance is reported as a component of other liabilities in our consolidated balance sheets. Adjustments to the allowance are reported in our income statement as a component of provision for credit loss expense. Further information regarding our policies and methodology used to estimate the allowance for credit losses on off-balance sheet credit exposures is presented in Note 10 – Financial Instruments with Off-Balance Sheet Risk.

Servicing Assets

Certain Small Business Administration (“SBA”) loans are originated and intended for sale in the secondary market. They are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains or losses recognized upon the sale of loans are determined on a specific identification basis and are included in non-interest income. SBA loan transfers are accounted for as sales when control over the loan has been surrendered. Control over such loans is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) 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 (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

The Company applies guidance issued by the FASB that clarifies the accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities, in which, after a transfer of financial assets, an entity recognizes the financial and servicing assets it controls and liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. To calculate the gain or loss on sale of loans, the Company’s investment in the loan is allocated among the retained portion of the loan, the servicing retained, the interest-only strip and the sold portion of the loan, based on the relative fair value of each portion. The gain or loss on the sold portion of the loan is recognized based on the difference between the sale proceeds and the allocated investment. As a result of the relative fair value allocation, the carrying value of the retained portion is discounted, with the discount accreted to interest income over the life of the loan.

Servicing assets are amortized over an estimated life using a method that is in proportion to the estimated future servicing income. In the event future prepayments exceed management’s estimates and future cash flows are inadequate to cover the servicing asset, additional amortization would be recognized. The portion of servicing fees in excess of the contracted servicing fees is reflected as interest-only strips receivable, which are classified as available for sale and are carried at fair value. At December 31, 2023 and 2022, the Company was servicing loans previously sold of approximately $4.8 million and $8.3 million, respectively. The related servicing assets receivable were not material to the consolidated financial statements at December 31, 2023 and 2022.

Premises and Equipment

Buildings, leasehold improvements, furniture and fixtures, and equipment are carried at cost, less accumulated depreciation, computed principally by the straight-line method based on the estimated useful lives of the related asset. Land is not depreciated. Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in income as incurred. A small portion of building floor space is currently leased out to tenants and recognized in income when earned.

Operating Leases

The Company leases certain office space and stand-alone buildings and equipment which are recognized as operating lease right-of-use assets and operating lease liabilities in the consolidated balance sheets. Lease liabilities represent the Company's liability to make lease payments under these leases on a discounted basis and are amortized on a straight-line basis over the lease term for each related lease agreement. Right-of-use assets represent the Company's right to use, or control the use of, leased assets for their lease term and are amortized over the lease term of the related lease agreement. See further discussion of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) below. The Company does not recognize short-term operating leases on the consolidated balance sheets. A short-term lease has a term of 12 months or less and does not have a purchase option that is likely to be exercised.

Other Real Estate Owned

Other real estate owned represents properties acquired through or in lieu of loan foreclosure and are initially recorded at fair value less estimated costs to sell. Any write-down to fair value at the time of transfer to other real estate owned is charged to the allowance for credit losses. Costs of improvements are capitalized, whereas costs relating to holding other real estate owned and subsequent adjustments to the value are expensed. Operating and holding expenses of such properties, net of related income, are included in loan operations and other real estate owned expense on the accompanying consolidated statements of income. Gains or losses on dispositions are reflected in income as incurred. At December 31, 2023 and 2022, the Company had no other real estate owned.

Bank-Owned Life Insurance

The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (“BOLI”) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are reported in the accompanying consolidated statements of income.

Non-Marketable Securities

The Company has restricted non-marketable securities which represent investment in Federal Home Loan Bank (“FHLB”) stock, Federal Reserve Bank (“FRB”) stock and Texas Independent Bank (“TIB”) stock. These investments are not readily marketable and are carried at cost, which approximates fair value. As a member of the FHLB, FRB and TIB systems, the Company is required to maintain minimum level of investments in stock, based on the level of borrowings and other factors. Both cash and stock dividends are reported as income.

Goodwill and Core Deposit Intangibles

Goodwill represents the excess of cost over fair value of net assets acquired in a business combination. Goodwill is not amortized and is evaluated for impairment at least annually and on an interim basis if an event triggering impairment may have occurred.

Core deposit intangibles are acquired customer relationships arising from bank acquisitions and are amortized on a straight-line basis over their estimated useful life of ten years. Core deposit intangibles are tested for impairment whenever events or changes in circumstances indicate the carrying amount of assets may not be recoverable from future undiscounted cash flows.

Derivative Financial Instruments

Derivatives are recorded on our consolidated balance sheets as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of the derivatives and whether the derivatives qualify for hedge accounting. At inception of the derivative, we designate the derivative as one of two types based on our intention and belief as to the likely effectiveness as a hedge. These two types are (1) a hedge of the fair value of a recognized asset or liability (“Fair Value Hedge”), and (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“Cash Flow Hedge”).

For certain Fair Value Hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in noninterest income or expense in our consolidated statements of income. Fair Value Hedge instruments offered by the Company which are included in noninterest income or expense include pass-through interest rate swap products to qualified commercial banking customers. Under this type of contract, the Company enters into an interest rate swap contract with a customer, while at the same time entering into an offsetting interest rate swap contract with a financial institution counterparty. Changes in the fair value of the underlying derivatives are designed to offset each other so they would not significantly impact the Company's operating results.

The Company also enters into Risk Participation Agreements (“RPAs”) with other banks, primarily to share a portion of the risk of borrower default related to the interest rate swap on certain participated loans. Gains or losses on these types of derivatives are also included in noninterest income in our consolidated statements of income.

A one-way interest rate swap is another type of Fair Value Hedge instrument offered to our customers. Under this type of arrangement, the Company extends a conventional fixed-rate loan to the borrower and then subsequently hedges the interest rate risk of that loan by entering into a swap for its own balance sheet to convert the fixed-rate loan to a synthetic floating rate asset. These types of swaps lock

in the Company's spread over its cost of funds for the life of the loan. The gain or loss on this type of derivative is included in interest income in our consolidated statements of income.

For a Cash Flow Hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Cash Flow Hedge instruments include pay-fixed interest rate swap agreements with a financial institution counterparty.

Net cash settlements on cash flow hedges are recorded in interest expense in the consolidated statements of income. Net cash settlements on one-way swap derivatives are recorded in interest income in the consolidated statements of income. Net cash settlements on pass-through interest rate swaps and RPAs are reported in noninterest income in the consolidated statements of income. Cash flows on hedges are classified in the cash flow statement the same as the items being hedged.

When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains and/or losses accumulated in other comprehensive income are amortized into earnings over the same period which the hedged transaction will affect earnings.

We formally document the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking Cash Flow Hedges to specific assets and liabilities on the Consolidated Statements of Financial Condition or to forecasted transactions. See Note 17 – Derivative Financial Instruments.

Business Combinations

The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Adjustments identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. Acquisition related costs are expensed as incurred.

Comprehensive Income

Comprehensive income includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Other than net income, comprehensive income includes the net effect of changes in the fair value of securities available-for-sale and certain derivative instruments designated as cash flow hedges.

Revenues from Contracts with Customers

The Company’s revenues from services such as deposit related fees, wire transfer fees, interchange fees on debit cards, ATM fees, and merchant fee income are presented within the service charges and fees category in the accompanying consolidated statements of income and are recognized as revenue as the Company satisfies its obligation to the customer.

Advertising and Marketing Expenses

Advertising and marketing expenses consist of the Company’s advertising in its local market area and are expensed as incurred. For the years ended December 31, 2023, 2022 and 2021, advertising and marketing expenses were $2.6 million, $1.9 million and $1.9 million, respectively, and are included within noninterest expense in the accompanying consolidated statements of income.

Income Taxes

The Company files a consolidated income tax return with its subsidiary. Federal income tax expense or benefit is allocated on a separate return basis.

Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

Share-Based Compensation

Compensation expense for stock options is based on the fair value of the award on the measurement date, which, for the Company, is the date of the grant and is recognized ratably over the service period of the award. The fair value of stock options is estimated using the Black-Scholes option-pricing model.

Basic and Diluted Earnings Per Common Share

Earnings per common share is computed in accordance with ASC Topic 260, “Earnings Per Share.” Basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per common share is computed by using the net earnings allocated to common stock plus dividends on dilutive convertible preferred stock, divided by the sum of 1) the weighted-average number of shares determined for the basic earnings per common share computation, 2) the dilutive effect of stock compensation using the treasury stock method, and 3) the dilutive effect of convertible preferred stock using the if-converted method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 16 – Earnings Per Common Share.

Reclassification

Certain amounts in prior period consolidated financial statements may have been reclassified to conform to current period presentation. These reclassifications are immaterial and have no effect on net income, total assets or shareholders’ equity.

Recently Adopted Accounting Standards: ASU 2016-02 - Leases

The Company adopted ASU 2016-02 - “Leases” (Topic 842) on January 1, 2022 using the effective date as the date of initial adoption. The Company elected to apply certain practical expedients for transition, and under those expedients the Company did not reassess prior accounting decisions regarding the identification, classification and initial direct costs of leases existing at the effective date. The Company also elected to use hindsight in determining the lease term when considering options to extend the lease and excluded short-term leases (defined as lease terms of 12 months or less). The Company elected to separate non-lease components from lease components in its application of ASU 2016-02. At adoption, the Company recorded right-of-use assets totaling $11.0 million, which represented the Company's right to use, or control the use of, specified assets for their lease terms, and the Company recorded lease liabilities totaling $10.9 million, which represented the Company's liability to make lease payments under these leases. The ASU 2016-02 standard applied to all leases existing at the date of initial adoption. The Company's financial statements and related footnotes were not updated for ASU 2016-02 for dates and periods before the date of adoption. See Note 9 – Leases.

Recently Adopted Accounting Standards: ASU 2016-13 - Current Expected Credit Losses

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 is effective for fiscal years beginning after December 15, 2022. ASU 2016-13 is intended to replace the incurred loss model for loans and other financial assets with an expected loss model, which is known as the current expected credit loss, or CECL, model. The change is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. 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 debt securities. It also applies to off-balance sheet credit exposures such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments. ASC 326 also made changes to the accounting for available-for-sale debt securities, specifically requiring credit losses for available-for-sale debt securities to be presented as an allowance rather than a write-down on available-for-sale debt securities.

The Company adopted ASC 326 using the modified retrospective method for financial instruments measured at amortized cost and off-balance sheet credit exposure which requires reporting periods beginning after January 1, 2023 to be presented under ASC 326 guidance while prior period amounts continue to be reported in accordance with previously applicable inherent risk methodology. Effective January 1, 2023, the Company adopted the standard and recorded an increase in the allowance for credit losses of $4.0 million and a net after-tax adjustment to retained earnings of $3.2 million for the cumulative effect of adopting ASC 326 for its loan portfolio.

The following table illustrates the impact of ASC 326 on the allowance for credit losses by loan category at the January 1, 2023 adoption date:

 

 

January 1, 2023

 

(Dollars in thousands)

 

Post-ASC 326 Adoption

 

 

Pre-ASC 326 Adoption

 

 

Impact of ASC 326 Adoption

 

Real estate loans:

 

 

 

 

 

 

 

 

 

   Non-farm non-residential owner occupied

 

$

5,097

 

 

$

3,773

 

 

$

1,324

 

   Non-farm non-residential non-owner occupied

 

 

8,351

 

 

 

5,741

 

 

 

2,610

 

   Residential

 

 

2,060

 

 

 

1,064

 

 

 

996

 

   Construction, development & other

 

 

4,661

 

 

 

3,053

 

 

 

1,608

 

   Farmland

 

 

94

 

 

 

82

 

 

 

12

 

Commercial & industrial

 

 

13,366

 

 

 

16,269

 

 

 

(2,903

)

Consumer

 

 

10

 

 

 

6

 

 

 

4

 

Municipal and other

 

 

712

 

 

 

363

 

 

 

349

 

 

 

$

34,351

 

 

$

30,351

 

 

$

4,000

 

Recently Adopted Accounting Standards: ASU 2022-02 - Troubled Debt Restructurings and Vintage Disclosures

The Company adopted ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” on January 1, 2023. The amendments in this update eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors in Subtopic 310-40, “Receivables-Troubled Debt Restructurings by Creditors,” while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan.

The amendments of this update also require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments-Credit Losses-Measured at Amortized Cost.” Gross write-off information must be included in the vintage disclosures and include the amortized cost basis of the financing receivable by credit-quality indicator and the class of the financing receivable by year or origination. See Note 3 - Loans and Allowance for Credit Losses for the vintage disclosures.

Recently Issued Accounting Standards - Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 720), Improvements to Income Tax Disclosures." ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions.
v3.24.0.1
Investment Securities Available for Sale
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Available for Sale
2.
Investment Securities Available for Sale

Investment securities have been classified in the consolidated balance sheets according to management’s intent. Management assesses securities in its investment portfolio for impairment on a quarterly basis or when events or circumstances suggest that the carrying amount of an investment may be impaired. In accordance with ASC 326, available-for-sale securities are evaluated as of each reporting date when the fair value is less than amortized cost, and credit losses are to be calculated individually using a discounted cash flow method through which management compares the present value of the expected cash flows with the amortized costs. An allowance for credit losses is established to reflect the credit loss component of the decline in fair value.

Factors management considers in assessing whether a discounted cash flow method evaluation is needed for a security whose fair value is less than amortized costs include: (1) management will assess whether it intends to sell, or if it is more likely than not it will be required to sell, the security before recovery of the amortized cost basis; (2) the length of time (duration) and the extent (severity) to which the market value has been less than costs; (3) the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer, such as changes in technology that impair the earnings potential of the investment or the discontinuance of a segment of the business that may affect the future earnings potential; and (4) changes in the rating of the security by a rating agency.

The carrying amount of securities and their approximate fair values as of December 31, 2023 and 2022 are as follows:

 

 

December 31, 2023

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
 Losses

 

 

Estimated
Fair Value

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

4,017

 

 

$

—

 

 

$

26

 

 

$

3,991

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

77,703

 

 

 

1,599

 

 

 

769

 

 

 

78,533

 

Corporate bonds

 

 

100,371

 

 

 

861

 

 

 

5,669

 

 

 

95,563

 

 

$

182,091

 

 

$

2,460

 

 

$

6,464

 

 

$

178,087

 

 

 

 

December 31, 2022

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
 Losses

 

 

Estimated
Fair Value

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal securities

 

$

422

 

 

$

—

 

 

$

5

 

 

$

417

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

23,522

 

 

 

238

 

 

 

879

 

 

 

22,881

 

U.S. Treasury bonds

 

 

100,567

 

 

 

—

 

 

 

2,049

 

 

 

98,518

 

Corporate bonds

 

 

57,607

 

 

 

59

 

 

 

3,415

 

 

 

54,251

 

 

$

182,118

 

 

$

297

 

 

$

6,348

 

 

$

176,067

 

Mortgage-backed securities are typically issued with stated principal amounts and are backed by pools of mortgages that have loans with varying maturities. The characteristics of the underlying pool of mortgages, such as prepayment risk, are passed on to the certificate holder. Accordingly, the term of mortgage-backed securities approximates the term of the underlying mortgages and can vary significantly due to prepayments. Therefore, schedules of maturities for mortgage-backed securities have been excluded from the below disclosure.

The amortized cost and estimated fair value of securities available for sale at December 31, 2023, by contractual maturity, are shown below.

 

 

December 31, 2023

 

 

 

Investment Securities
Available-for-Sale

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Estimated
Fair Value

 

Due in one year or less

 

$

2,905

 

 

$

2,937

 

Due from one year to five years

 

 

9,340

 

 

 

9,547

 

Due from five to ten years

 

 

83,068

 

 

 

77,960

 

Over ten years

 

 

9,075

 

 

 

9,110

 

 

 

104,388

 

 

 

99,554

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

77,703

 

 

 

78,533

 

 

$

182,091

 

 

$

178,087

 

 

The following table summarizes securities with unrealized losses at December 31, 2023 and 2022, aggregated by major security type and length of time in a continuous unrealized loss position:

 

 

December 31, 2023

 

(Dollars in thousands)

 

Less Than 12
Months in a
Loss Position

 

 

Greater Than 12
Months in a
 Loss Position

 

 

Total
Unrealized
Loss

 

 

Estimated
Fair Value

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

26

 

 

$

—

 

 

$

26

 

 

$

3,991

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

—

 

 

 

769

 

 

 

769

 

 

 

16,001

 

Corporate bonds

 

 

128

 

 

 

5,541

 

 

 

5,669

 

 

 

64,143

 

 

$

154

 

 

$

6,310

 

 

$

6,464

 

 

$

84,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

(Dollars in thousands)

 

Less Than 12
Months in a
Loss Position

 

 

Greater Than 12
Months in a
 Loss Position

 

 

Total
Unrealized
Loss

 

 

Estimated
Fair Value

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal securities

 

$

5

 

 

$

—

 

 

$

5

 

 

$

417

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

879

 

 

 

—

 

 

 

879

 

 

 

18,376

 

U.S. Treasury bonds

 

 

2,049

 

 

 

—

 

 

 

2,049

 

 

 

98,518

 

Corporate bonds

 

 

3,415

 

 

 

—

 

 

 

3,415

 

 

 

50,413

 

 

$

6,348

 

 

$

—

 

 

$

6,348

 

 

$

167,724

 

There were 37 investments in an unrealized loss position at December 31, 2023, and 35 investments in an unrealized loss position at December 31, 2022. As of December 31, 2023, no allowance for credit losses has been recognized on available-for-sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to reasons of credit quality. This is based upon our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our available-for-sale securities and in consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. Furthermore, management does not have the intent to sell any of the securities classified as available-for-sale in the table above and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline.

There were no securities pledged as collateral as of December 31, 2023 and 2022.

Proceeds from the sales of securities and their gross gains for the year ended December 31, 2023 were $13.9 million and $482,000, respectively. No losses were recorded on the sales of securities for the year ended December 31, 2023. The Company did not sell any securities during the years ended December 31, 2022 or 2021.

v3.24.0.1
Loans and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Loans and Allowance for Loan Losses
3.
Loans and Allowance for Credit Losses

Loans in the accompanying consolidated balance sheets consisted of the following:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

Real estate loans:

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

520,822

 

 

$

493,791

 

Non-farm non-residential non-owner occupied

 

 

586,626

 

 

 

506,012

 

Residential

 

 

342,589

 

 

 

308,775

 

Construction, development & other

 

 

693,553

 

 

 

567,851

 

Farmland

 

 

30,396

 

 

 

22,820

 

Commercial & industrial

 

 

1,263,077

 

 

 

1,058,910

 

Consumer

 

 

2,555

 

 

 

3,872

 

Municipal and other

 

 

199,170

 

 

 

145,520

 

 

 

3,638,788

 

 

 

3,107,551

 

Allowance for credit losses

 

 

(37,022

)

 

 

(30,351

)

Loans, net

 

$

3,601,766

 

 

$

3,077,200

 

Total loans are presented net of unaccreted discounts and deferred fees net of deferred costs totaling $11.8 million and $7.8 million at December 31, 2023 and 2022, respectively.

Non-accrual and Past Due Loans

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. As mentioned in Note 1, the accrual of interest on loans is discontinued when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due.

Non-accrual loans and accruing loans past due more than 90 days segregated by class of loans were as follows:

 

 

December 31,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Non-accrual

 

 

Accruing loans
past due more
than 90 days

 

 

Non-accrual

 

 

Accruing loans
past due more
than 90 days

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,211

 

 

$

—

 

 

$

1,699

 

 

$

157

 

Non-farm non-residential non-owner occupied

 

 

1,235

 

 

 

—

 

 

 

296

 

 

 

—

 

Residential

 

 

2,938

 

 

 

—

 

 

 

513

 

 

 

—

 

Construction, development & other

 

 

247

 

 

 

—

 

 

 

45

 

 

 

—

 

Commercial & industrial

 

 

11,018

 

 

 

670

 

 

 

8,390

 

 

 

361

 

Consumer

 

 

—

 

 

 

—

 

 

 

20

 

 

 

—

 

 

$

16,649

 

 

$

670

 

 

$

10,963

 

 

$

518

 

Of the non-accrual loans disclosed above, $8.8 million did not have an allowance for credit loss at December 31,2023.

As of December 31, 2023, 2022, and 2021, the amount of income that would have been accrued for loans on non-accrual was approximately $1.1 million, $0.6 million, and $0.5 million, respectively.

An age analysis of past due loans, segregated by class of loans, were as follows:

 

 

December 31, 2023

 

(Dollars in thousands)

 

30-59
days

 

 

60-89
days

 

 

Over 90
days

 

 

Total
past due

 

 

Total
current

 

 

Total
loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

—

 

 

$

—

 

 

$

1,211

 

 

$

1,211

 

 

$

519,611

 

 

$

520,822

 

Non-farm non-residential
   non-owner occupied

 

 

—

 

 

 

212

 

 

 

1,235

 

 

 

1,447

 

 

 

585,179

 

 

 

586,626

 

Residential

 

 

312

 

 

 

495

 

 

 

2,938

 

 

 

3,745

 

 

 

338,844

 

 

 

342,589

 

Construction,
   development & other

 

 

428

 

 

 

177

 

 

 

247

 

 

 

852

 

 

 

692,701

 

 

 

693,553

 

Farmland

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

30,396

 

 

 

30,396

 

Commercial & industrial

 

 

4,467

 

 

 

659

 

 

 

11,688

 

 

 

16,814

 

 

 

1,246,263

 

 

 

1,263,077

 

Consumer

 

 

2

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

2,553

 

 

 

2,555

 

Municipal and other

 

 

88

 

 

 

—

 

 

 

—

 

 

 

88

 

 

 

199,082

 

 

 

199,170

 

 

$

5,297

 

 

$

1,543

 

 

$

17,319

 

 

$

24,159

 

 

$

3,614,629

 

 

$

3,638,788

 

 

 

 

December 31, 2022

 

(Dollars in thousands)

 

30-59
days

 

 

60-89
days

 

 

Over 90
days

 

 

Total
past due

 

 

Total
current

 

 

Total
loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

2,996

 

 

$

—

 

 

$

1,856

 

 

$

4,852

 

 

$

488,939

 

 

$

493,791

 

Non-farm non-residential
   non-owner occupied

 

 

132

 

 

 

—

 

 

 

296

 

 

 

428

 

 

 

505,584

 

 

 

506,012

 

Residential

 

 

2,356

 

 

 

—

 

 

 

513

 

 

 

2,869

 

 

 

305,906

 

 

 

308,775

 

Construction,
   development & other

 

 

130

 

 

 

—

 

 

 

45

 

 

 

175

 

 

 

567,676

 

 

 

567,851

 

Farmland

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,820

 

 

 

22,820

 

Commercial & industrial

 

 

791

 

 

 

613

 

 

 

8,751

 

 

 

10,155

 

 

 

1,048,755

 

 

 

1,058,910

 

Consumer

 

 

—

 

 

 

—

 

 

 

20

 

 

 

20

 

 

 

3,852

 

 

 

3,872

 

Municipal and other

 

 

162

 

 

 

—

 

 

 

—

 

 

 

162

 

 

 

145,358

 

 

 

145,520

 

 

$

6,567

 

 

$

613

 

 

$

11,481

 

 

$

18,661

 

 

$

3,088,890

 

 

$

3,107,551

 

Restructured Loans and Loan Modifications

Pursuant to the adoption of ASU 2022-02 effective January 1, 2023, the Company prospectively discontinued the recognition and measurement of TDRs. This guidance eliminated TDR accounting for loans in which the borrower was experiencing financial difficulty and the creditor was granted a concession. A loan is now considered modified under ASU 2022-02 if the borrower is experiencing financial difficulties and the loan has been modified. Modifications may include interest rate reductions or below market interest rates, restructuring amortization schedules and other actions intended to minimize potential losses.

The table below presents the amortized cost basis of loans at period end that were both experiencing financial difficulty and modified during the year ended December 31, 2023, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented.

 

 

December 31, 2023

 

 

 

Loan modifications

 

(Dollars in thousands)

 

Number
 of
 loans

 

 

Post-
restructured
recorded
investment

 

 

Principal forgiveness

 

 

Adjusted
interest
rate

 

 

Payment
deferral

 

 

Combined
rate and
payment
deferral

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

 

3

 

 

$

6,970

 

 

 

—

 

 

 

—

 

 

$

63

 

 

$

63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On an ongoing basis, the performance of modified loans for borrowers experiencing financial difficulty is monitored for subsequent payment default. Payment default is recognized when the borrower is 90 days or more past due. As of December 31, 2023, there were no modified loans in the previous twelve-month periods that were in default.

Impaired Loans

Prior to the adoption of ASC Topic 326 on January 1, 2023, loans were reported as impaired when, based on then current information and events, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan was impaired, a specific valuation allowance was allocated, if necessary, so that the loan was reported net, at the fair value of collateral if repayment was expected solely from the collateral. The following tables present impaired loans by class of loans as of December 31, 2022 as determined under ASC 310 prior to adoption of ASC 326:

 

 

December 31, 2022

 

(Dollars in thousands)

 

Unpaid
contractual
principal
balance

 

 

Recorded
investment
with no
allowance

 

 

Recorded
investment
with
allowance

 

 

Total
recorded
investment

 

 

Related
allowance

 

 

Average
recorded
investment
during year

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

1,694

 

 

$

1,699

 

 

$

—

 

 

$

1,699

 

 

$

—

 

 

$

1,751

 

Non-farm non-residential
   non-owner occupied

 

 

5,497

 

 

 

5,496

 

 

 

—

 

 

 

5,496

 

 

 

—

 

 

 

5,563

 

Residential

 

 

516

 

 

 

513

 

 

 

—

 

 

 

513

 

 

 

—

 

 

 

524

 

Construction,
   development & other

 

 

40

 

 

 

40

 

 

 

—

 

 

 

40

 

 

 

—

 

 

 

51

 

Commercial & industrial

 

 

11,942

 

 

 

7,734

 

 

 

4,213

 

 

 

11,947

 

 

 

1,600

 

 

 

10,749

 

Consumer

 

 

19

 

 

 

20

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

21

 

 

$

19,708

 

 

$

15,502

 

 

$

4,213

 

 

$

19,715

 

 

$

1,600

 

 

$

18,659

 

Interest payments received on impaired loans are recorded as interest income unless collections of the remaining recorded investment are doubtful, at which time payments received are recorded as reductions of principal. Interest income collected on impaired loans was approximately $368,000 and $248,000 for the years ended December 31, 2022 and 2021, respectively.

Credit Quality Indicators

Credit Quality Indicators. From a credit risk standpoint, the Company classifies its loans in one of six categories: (i) pass, (ii) special mention, (iii) substandard, (iv) purchased credit deteriorated, (v) doubtful, or (vi) loss.

The classifications of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on credits monthly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each monthly reporting period. The Company’s methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss).

(i) The Company has several pass credit grades that are assigned to loans based on varying levels of credits, ranging from credits that are secured by cash or marketable securities, to watch credits that have all the characteristics of an acceptable credit risk but warrant more than the normal level of supervision.

(ii) Special mention loans are loans that still show sufficient cash flow to service their debt but show a declining financial trend with potential cash flow shortages if trends continue. This category should be treated as a temporary grade. If cash flow deteriorates further to become negative, then a substandard grade should be given. If cash flow trends begin to improve then an upgrade back to pass would be justified. Nonfinancial reasons for rating a credit special mention include management problems, pending litigation, an ineffective loan agreement or other material structure weakness.

(iii) A substandard loan has material weakness in the primary repayment source such as insufficient cash flow from operations to service the debt. However, other weaknesses such as limited paying capacity of the obligor or the collateral pledged could justify a substandard grade. Substandard loans must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt.

(iv) Credits purchased from third parties are recorded at their estimated fair value at the acquisition date and are classified as PCD loans if the loans reflect credit deterioration since origination and it is probable at acquisition that the Company will be unable to collect all contractually required payments. See Note 1 – Nature of Operations and Summary of Significant Accounting Policies - Certain Acquired Loans.

(v) A loan classified as doubtful has all the weaknesses of a substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. A doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Because of high probability of loss, non-accrual status is required on doubtful loans.

(vi) Loans classified as loss are considered uncollectible and of such little value that their continuance as banking assets are not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. With loans classified as loss, the underlying borrowers are often in bankruptcy, have formally suspended debt repayments, or have otherwise ceased normal business operations. Once an asset is classified as loss, there is little prospect of collecting either its principal or interest. When access to collateral, rather than the value of the collateral, is a problem, a less severe classification may be appropriate. However, the Company does not maintain an asset on the balance sheet if realizing its value would require long-term litigation or other lengthy recovery efforts. Losses are to be recorded in the period an obligation becomes uncollectible.

The following tables summarize the Company’s internal ratings of its loans:

 

 

December 31, 2023

 

(Dollars in thousands)

 

Pass

 

 

Special
Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

510,811

 

 

$

5,517

 

 

$

4,494

 

 

$

—

 

 

$

520,822

 

Non-farm non-residential
   non-owner occupied

 

 

580,981

 

 

 

4,409

 

 

 

1,236

 

 

 

—

 

 

 

586,626

 

Residential

 

 

338,619

 

 

 

538

 

 

 

3,432

 

 

 

—

 

 

 

342,589

 

Construction,
   development & other

 

 

692,098

 

 

 

1,208

 

 

 

247

 

 

 

—

 

 

 

693,553

 

Farmland

 

 

29,547

 

 

 

—

 

 

 

849

 

 

 

—

 

 

 

30,396

 

Commercial & industrial

 

 

1,213,303

 

 

 

35,672

 

 

 

13,780

 

 

 

322

 

 

 

1,263,077

 

Consumer

 

 

2,555

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,555

 

Municipal and other

 

 

199,170

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

199,170

 

 

$

3,567,084

 

 

$

47,344

 

 

$

24,038

 

 

$

322

 

 

$

3,638,788

 

 

 

 

 

December 31, 2022

 

(Dollars in thousands)

 

Pass

 

 

Special
Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

487,633

 

 

$

1,885

 

 

$

4,273

 

 

$

—

 

 

$

493,791

 

Non-farm non-residential
   non-owner occupied

 

 

498,987

 

 

 

228

 

 

 

6,797

 

 

 

—

 

 

 

506,012

 

Residential

 

 

307,881

 

 

 

—

 

 

 

894

 

 

 

—

 

 

 

308,775

 

Construction,
   development & other

 

 

559,186

 

 

 

8,620

 

 

 

45

 

 

 

—

 

 

 

567,851

 

Farmland

 

 

22,820

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,820

 

Commercial & industrial

 

 

1,051,365

 

 

 

2,252

 

 

 

5,293

 

 

 

—

 

 

 

1,058,910

 

Consumer

 

 

3,852

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

3,872

 

Municipal and other

 

 

145,520

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

145,520

 

 

$

3,077,244

 

 

$

12,985

 

 

$

17,322

 

 

$

—

 

 

$

3,107,551

 

 

The following tables summarize the Company's loans by risk grades, loan class and vintage, at December 31, 2023 and 2022. Gross charge-offs by origination year and loan class are also presented for the years ended December 31, 2023 and 2022.

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

December 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

55,172

 

 

$

179,776

 

 

$

127,020

 

 

$

70,984

 

 

$

33,439

 

 

$

37,433

 

 

$

6,987

 

 

$

510,811

 

Special Mention

 

 

535

 

 

 

2,350

 

 

 

2,632

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,517

 

Substandard

 

 

157

 

 

 

41

 

 

 

984

 

 

 

—

 

 

 

2,190

 

 

 

659

 

 

 

463

 

 

 

4,494

 

Total Non-farm non-residential owner-occupied

 

$

55,864

 

 

$

182,167

 

 

$

130,636

 

 

$

70,984

 

 

$

35,629

 

 

$

38,092

 

 

$

7,450

 

 

$

520,822

 

Non-farm non-residential
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

105,084

 

 

$

180,054

 

 

$

212,484

 

 

$

26,559

 

 

$

23,112

 

 

$

25,486

 

 

$

8,202

 

 

$

580,981

 

Special Mention

 

 

4,197

 

 

 

—

 

 

 

—

 

 

 

212

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,409

 

Substandard

 

 

—

 

 

 

88

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,148

 

 

 

—

 

 

 

1,236

 

Total Non-farm non-residential non owner-occupied

 

$

109,281

 

 

$

180,142

 

 

$

212,484

 

 

$

26,771

 

 

$

23,112

 

 

$

26,634

 

 

$

8,202

 

 

$

586,626

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

97,867

 

 

$

112,138

 

 

$

86,117

 

 

$

19,178

 

 

$

10,027

 

 

$

7,275

 

 

$

6,017

 

 

$

338,619

 

Special Mention

 

 

94

 

 

 

—

 

 

 

—

 

 

 

444

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

538

 

Substandard

 

 

2,734

 

 

 

253

 

 

 

437

 

 

 

—

 

 

 

—

 

 

 

8

 

 

 

—

 

 

 

3,432

 

Total Residential

 

$

100,695

 

 

$

112,391

 

 

$

86,554

 

 

$

19,622

 

 

$

10,027

 

 

$

7,283

 

 

$

6,017

 

 

$

342,589

 

Construction, development & other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

136,888

 

 

$

110,486

 

 

$

55,938

 

 

$

785

 

 

$

86

 

 

$

529

 

 

$

387,386

 

 

$

692,098

 

Special Mention

 

 

—

 

 

 

—

 

 

 

1,208

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,208

 

Substandard

 

 

244

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

247

 

Total Construction, development & other

 

$

137,132

 

 

$

110,486

 

 

$

57,146

 

 

$

785

 

 

$

86

 

 

$

532

 

 

$

387,386

 

 

$

693,553

 

Farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

11,030

 

 

$

11,328

 

 

$

2,070

 

 

$

96

 

 

$

3,619

 

 

$

818

 

 

$

586

 

 

$

29,547

 

Substandard

 

 

—

 

 

 

849

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

849

 

Total Farmland

 

$

11,030

 

 

$

12,177

 

 

$

2,070

 

 

$

96

 

 

$

3,619

 

 

$

818

 

 

$

586

 

 

$

30,396

 

Commercial & industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

221,392

 

 

$

49,536

 

 

$

79,690

 

 

$

16,843

 

 

$

14,576

 

 

$

1,321

 

 

$

829,945

 

 

$

1,213,303

 

Special Mention

 

 

4,284

 

 

 

4,068

 

 

 

23,916

 

 

 

467

 

 

 

21

 

 

 

55

 

 

 

2,861

 

 

 

35,672

 

Substandard

 

 

483

 

 

 

3,783

 

 

 

4,461

 

 

 

1,276

 

 

 

1,377

 

 

 

82

 

 

 

2,318

 

 

 

13,780

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

322

 

 

 

—

 

 

 

—

 

 

 

322

 

Total Commercial & industrial

 

$

226,159

 

 

$

57,387

 

 

$

108,067

 

 

$

18,586

 

 

$

16,296

 

 

$

1,458

 

 

$

835,124

 

 

$

1,263,077

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(181

)

 

$

(1,523

)

 

$

(120

)

 

$

—

 

 

$

(1,824

)

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

1,061

 

 

$

670

 

 

$

147

 

 

$

183

 

 

$

121

 

 

$

33

 

 

$

340

 

 

$

2,555

 

Total Consumer

 

$

1,061

 

 

$

670

 

 

$

147

 

 

$

183

 

 

$

121

 

 

$

33

 

 

$

340

 

 

$

2,555

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(19

)

 

$

—

 

 

$

(19

)

Municipal and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

86,998

 

 

$

15,406

 

 

$

33,060

 

 

$

3,812

 

 

$

1,011

 

 

$

14

 

 

$

58,869

 

 

$

199,170

 

Total Municipal and other

 

$

86,998

 

 

$

15,406

 

 

$

33,060

 

 

$

3,812

 

 

$

1,011

 

 

$

14

 

 

$

58,869

 

 

$

199,170

 

Current period gross charge-offs

 

$

(10

)

 

$

(6

)

 

$

(2

)

 

$

(2

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(20

)

Total Loans

 

$

728,220

 

 

$

670,826

 

 

$

630,164

 

 

$

140,839

 

 

$

89,901

 

 

$

74,864

 

 

$

1,303,974

 

 

$

3,638,788

 

Total Charge-Offs

 

$

(10

)

 

$

(6

)

 

$

(2

)

 

$

(183

)

 

$

(1,523

)

 

$

(139

)

 

$

—

 

 

$

(1,863

)

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

182,294

 

 

$

125,782

 

 

$

78,148

 

 

$

43,076

 

 

$

27,010

 

 

$

27,060

 

 

$

4,263

 

 

$

487,633

 

Special Mention

 

 

—

 

 

 

1,885

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,885

 

Substandard

 

 

893

 

 

 

473

 

 

 

—

 

 

 

2,213

 

 

 

419

 

 

 

275

 

 

 

—

 

 

 

4,273

 

Total Non-farm non-residential owner-occupied

 

$

183,187

 

 

$

128,140

 

 

$

78,148

 

 

$

45,289

 

 

$

27,429

 

 

$

27,335

 

 

$

4,263

 

 

$

493,791

 

Non-farm non-residential
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

188,662

 

 

$

197,972

 

 

$

39,065

 

 

$

21,051

 

 

$

20,850

 

 

$

21,410

 

 

$

9,977

 

 

$

498,987

 

Special Mention

 

 

—

 

 

 

—

 

 

 

228

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

228

 

Substandard

 

 

192

 

 

 

104

 

 

 

—

 

 

 

5,200

 

 

 

—

 

 

 

1,301

 

 

 

—

 

 

 

6,797

 

Total Non-farm non-residential non owner-occupied

 

$

188,854

 

 

$

198,076

 

 

$

39,293

 

 

$

26,251

 

 

$

20,850

 

 

$

22,711

 

 

$

9,977

 

 

$

506,012

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

121,652

 

 

$

130,924

 

 

$

23,149

 

 

$

13,534

 

 

$

6,115

 

 

$

8,950

 

 

$

3,557

 

 

$

307,881

 

Substandard

 

 

—

 

 

 

878

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16

 

 

 

—

 

 

 

894

 

Total Residential

 

$

121,652

 

 

$

131,802

 

 

$

23,149

 

 

$

13,534

 

 

$

6,115

 

 

$

8,966

 

 

$

3,557

 

 

$

308,775

 

Construction, development & other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

113,261

 

 

$

110,572

 

 

$

1,236

 

 

$

291

 

 

$

70

 

 

$

629

 

 

$

333,127

 

 

$

559,186

 

Special Mention

 

 

—

 

 

 

8,620

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,620

 

Substandard

 

 

40

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

45

 

Total Construction, development & other

 

$

113,301

 

 

$

119,192

 

 

$

1,236

 

 

$

291

 

 

$

70

 

 

$

634

 

 

$

333,127

 

 

$

567,851

 

Farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

12,671

 

 

$

2,736

 

 

$

1,233

 

 

$

3,820

 

 

$

1,216

 

 

$

553

 

 

$

591

 

 

$

22,820

 

Total Farmland

 

$

12,671

 

 

$

2,736

 

 

$

1,233

 

 

$

3,820

 

 

$

1,216

 

 

$

553

 

 

$

591

 

 

$

22,820

 

Commercial & industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

402,799

 

 

$

177,599

 

 

$

34,531

 

 

$

20,509

 

 

$

4,929

 

 

$

1,394

 

 

$

409,604

 

 

$

1,051,365

 

Special Mention

 

 

1,329

 

 

 

700

 

 

 

132

 

 

 

—

 

 

 

—

 

 

 

91

 

 

 

—

 

 

 

2,252

 

Substandard

 

 

495

 

 

 

1,779

 

 

 

1,142

 

 

 

1,733

 

 

 

120

 

 

 

24

 

 

 

—

 

 

 

5,293

 

Total Commercial & industrial

 

$

404,623

 

 

$

180,078

 

 

$

35,805

 

 

$

22,242

 

 

$

5,049

 

 

$

1,509

 

 

$

409,604

 

 

$

1,058,910

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(462

)

 

$

(752

)

 

$

(1,214

)

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

1,550

 

 

$

1,224

 

 

$

338

 

 

$

199

 

 

$

25

 

 

$

93

 

 

$

423

 

 

$

3,852

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

20

 

Total Consumer

 

$

1,550

 

 

$

1,224

 

 

$

338

 

 

$

199

 

 

$

25

 

 

$

113

 

 

$

423

 

 

$

3,872

 

Municipal and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

75,817

 

 

$

25,703

 

 

$

7,542

 

 

$

2,841

 

 

$

412

 

 

$

—

 

 

$

33,205

 

 

$

145,520

 

Total Municipal and other

 

$

75,817

 

 

$

25,703

 

 

$

7,542

 

 

$

2,841

 

 

$

412

 

 

$

—

 

 

$

33,205

 

 

$

145,520

 

Current period gross charge-offs

 

$

—

 

 

$

(18

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(18

)

Total Loans

 

$

1,101,655

 

 

$

786,951

 

 

$

186,744

 

 

$

114,467

 

 

$

61,166

 

 

$

61,821

 

 

$

794,747

 

 

$

3,107,551

 

Total Charge-Offs

 

$

—

 

 

$

(18

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(462

)

 

$

(752

)

 

$

(1,232

)

Allowance for Credit Losses

The allowance for credit losses on loans is a contra-asset valuation account, calculated in accordance with ASC 326, that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The amount of the allowance represents management's best estimate of current expected credit losses on loans considering available information, from internal and external sources, relevant to assessing collectability over the loans' contractual terms, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless (i) management has a reasonable expectation that a loan to an individual borrower that is experiencing financial difficulty will be modified or (ii) such extension or renewal options are not unconditionally cancellable by us and, in such cases, the borrower is likely to meet applicable conditions and likely to request extension or renewal. Relevant available information includes historical credit loss experience, current conditions and reasonable and supportable forecasts, including U.S. Unemployment, GDP and Case-Shiller U.S National Home Price Index. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current portfolio-specific risk characteristics, environmental conditions or other relevant factors. The allowance for credit losses is measured on a collective basis for portfolios of loans when similar risk characteristics exist.

Credit loss expense related to loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications.

In calculating the allowance for credit losses, most loans are segmented into pools based upon similar characteristics and risk profiles. Common characteristics and risk profiles include the type/purpose of loan, underlying collateral, geographical similarity and historical/expected credit loss patterns. In developing these loan pools for the purposes of modeling expected credit losses, we also analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors. For modeling purposes, we use loan call report codes to identify the pools of loans with similar risk characteristics. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. We periodically reassess each pool to ensure the loans within the pool continue to share similar characteristics and risk profiles and to determine whether further segmentation is necessary.

We have elected to use the discounted cash flow (“DCF”) method for estimating accumulated credit losses for all loans except for consumer loans and leases. The DCF method allows for an effective incorporation of reasonable and supportable forecasts that can be applied in a consistent and objective manner. The method also aligns well with other calculations outside the accumulated credit loss estimations which mitigate model risk in other areas such as fair value or exit price notion calculations, interest rate risk calculations, profitability analysis, asset-liability management, and other forms of cash flow analysis. We have elected to use the weighted-average remaining maturity (“WARM”) method for consumer loans and leases. The long-term average loss rate is calculated and applied on a quarterly basis for the remaining life of the pool. Adjustments for economic expectations are made in the qualitative portion of the calculation. The long-term average loss rate is derived using peer data derived from the call report.

There may be certain financial assets for which the expectation of credit loss is zero after evaluating historical loss information, making necessary adjustments for current conditions and reasonable and supportable forecasts, and considering any collateral or guarantee arrangements that are not free-standing contracts. A loan that is fully secured by cash or cash equivalents, such as certificates of deposit issued by the lending institution, would likely have zero credit loss expectations. Similarly, the guaranteed portion of a Small Business Administration (SBA) loan or security purchased on the secondary market through the SBA’s fiscal and transfer agent would likely have zero credit loss expectations because these financial assets are unconditionally guaranteed by the U.S. government. Currently, the Company deducts the SBA guaranteed portion of financial assets from the individual asset balance.

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors (“Q-Factor”) and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (ii) actual and expected changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the loan pools, (iii) changes in the nature and volume of the loan pools and in the terms of the underlying loans, (iv) changes in the experience, ability, and depth of our lending management and staff, (v) changes in volume and severity of past due financial assets, the volume of non-accrual assets, and the volume and severity of adversely classified or graded assets, (vi) changes in the quality of our credit review function, (vii) changes in the value of the underlying collateral for loans that are non-collateral dependent, (viii) the existence, growth, and effect of any concentrations of credit and (ix) other factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters or health pandemics.

In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The fair value of real estate collateral supporting collateral dependent loans is evaluated using a methodology that is consistent with the Uniform Standards of Professional Appraisal Practice. The fair value of collateral supporting non-real estate loans is based on an “as is” valuation.

The following table presents the qualitative and quantitative details of the allowance for credit losses on loans by portfolio segment as of December 31, 2023:

(Dollars in thousands)

 

Non-farm non-residential
   owner occupied

 

 

Non-farm non-residential
   non-owner occupied

 

 

Residential

 

 

Construction, development & other

 

 

Farmland

 

 

Commercial & industrial

 

 

Consumer

 

 

Municipal and other

 

 

Total

 

Modeled expected credit losses

 

$

2,324

 

 

$

2,569

 

 

$

1,474

 

 

$

3,557

 

 

$

166

 

 

$

6,400

 

 

$

8

 

 

$

596

 

 

$

17,094

 

Q-Factor and other qualitative adjustments

 

 

1,952

 

 

 

2,321

 

 

 

867

 

 

 

2,296

 

 

 

78

 

 

 

7,507

 

 

 

6

 

 

 

505

 

 

 

15,532

 

Specific allocations

 

 

35

 

 

 

651

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,710

 

 

 

—

 

 

 

—

 

 

 

4,396

 

 

 

$

4,311

 

 

$

5,541

 

 

$

2,341

 

 

$

5,853

 

 

$

244

 

 

$

17,617

 

 

$

14

 

 

$

1,101

 

 

$

37,022

 

Management believes the allowance for credit losses is adequate to cover expected credit losses on loans at December 31, 2023 and 2022.

The following tables detail the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2023, 2022 and 2021:

 

 

For the Year Ended December 31, 2023

 

(Dollars in thousands)

 

Beginning
balance

 

 

CECL adoption adjustment

 

 

Provision for credit losses on loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
balance

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

3,773

 

 

$

1,324

 

 

$

(786

)

 

$

—

 

 

$

—

 

 

$

4,311

 

Non-farm non-residential
   non-owner occupied

 

 

5,741

 

 

 

2,610

 

 

 

(2,810

)

 

 

—

 

 

 

—

 

 

 

5,541

 

Residential

 

 

1,064

 

 

 

996

 

 

 

281

 

 

 

—

 

 

 

—

 

 

 

2,341

 

Construction, development & other

 

 

3,053

 

 

 

1,608

 

 

 

1,192

 

 

 

—

 

 

 

—

 

 

 

5,853

 

Farmland

 

 

82

 

 

 

12

 

 

 

150

 

 

 

—

 

 

 

—

 

 

 

244

 

Commercial & industrial

 

 

16,269

 

 

 

(2,903

)

 

 

5,449

 

 

 

(1,824

)

 

 

626

 

 

 

17,617

 

Consumer

 

 

6

 

 

 

4

 

 

 

23

 

 

 

(19

)

 

 

—

 

 

 

14

 

Municipal and other

 

 

363

 

 

 

349

 

 

 

409

 

 

 

(20

)

 

 

—

 

 

 

1,101

 

 

 

$

30,351

 

 

$

4,000

 

 

$

3,908

 

 

$

(1,863

)

 

$

626

 

 

$

37,022

 

 

 

 

For the Year Ended December 31, 2022

 

(Dollars in thousands)

 

Beginning
balance

 

 

Provision for credit losses on loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
balance

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

3,456

 

 

$

317

 

 

$

—

 

 

$

—

 

 

$

3,773

 

Non-farm non-residential
   non-owner occupied

 

 

5,935

 

 

 

(194

)

 

 

—

 

 

 

—

 

 

 

5,741

 

Residential

 

 

957

 

 

 

107

 

 

 

—

 

 

 

—

 

 

 

1,064

 

Construction, development & other

 

 

2,064

 

 

 

989

 

 

 

—

 

 

 

—

 

 

 

3,053

 

Farmland

 

 

45

 

 

 

37

 

 

 

—

 

 

 

—

 

 

 

82

 

Commercial & industrial

 

 

6,500

 

 

 

10,911

 

 

 

(1,214

)

 

 

72

 

 

 

16,269

 

Consumer

 

 

6

 

 

 

5

 

 

 

(18

)

 

 

13

 

 

 

6

 

Municipal and other

 

 

332

 

 

 

28

 

 

 

—

 

 

 

3

 

 

 

363

 

 

 

$

19,295

 

 

$

12,200

 

 

$

(1,232

)

 

$

88

 

 

$

30,351

 

 

 

 

 

For the Year Ended December 31, 2021

 

(Dollars in thousands)

 

Beginning
balance

 

 

Provision for
credit losses on loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
balance

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

2,608

 

 

$

848

 

 

$

—

 

 

$

—

 

 

$

3,456

 

Non-farm non-residential
   non-owner occupied

 

 

3,107

 

 

 

2,828

 

 

 

—

 

 

 

—

 

 

 

5,935

 

Residential

 

 

1,218

 

 

 

(261

)

 

 

—

 

 

 

—

 

 

 

957

 

Construction, development & other

 

 

932

 

 

 

1,132

 

 

 

—

 

 

 

—

 

 

 

2,064

 

Farmland

 

 

32

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

45

 

Commercial & industrial

 

 

3,858

 

 

 

5,233

 

 

 

(2,914

)

 

 

323

 

 

 

6,500

 

Consumer

 

 

35

 

 

 

(30

)

 

 

—

 

 

 

1

 

 

 

6

 

Municipal and other

 

 

189

 

 

 

160

 

 

 

(20

)

 

 

3

 

 

 

332

 

 

 

$

11,979

 

 

$

9,923

 

 

$

(2,934

)

 

$

327

 

 

$

19,295

 

The following tables summarize the allocation of the allowance for credit losses, by portfolio segment, for loans evaluated both individually and collectively for expected credit losses as of December 31, 2023 and 2022:

 

 

December 31, 2023

 

 

 

Period end amounts of ACL allocated to loans
evaluated for credit losses:

 

(Dollars in thousands)

 

Individually

 

 

Collectively

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

35

 

 

$

4,276

 

 

$

4,311

 

Non-farm non-residential non-owner occupied

 

 

651

 

 

 

4,890

 

 

 

5,541

 

Residential

 

 

—

 

 

 

2,341

 

 

 

2,341

 

Construction, development & other

 

 

—

 

 

 

5,853

 

 

 

5,853

 

Farmland

 

 

—

 

 

 

244

 

 

 

244

 

Commercial & industrial

 

 

3,710

 

 

 

13,907

 

 

 

17,617

 

Consumer

 

 

—

 

 

 

14

 

 

 

14

 

Municipal and other

 

 

—

 

 

 

1,101

 

 

 

1,101

 

 

 

$

4,396

 

 

$

32,626

 

 

$

37,022

 

 

 

 

December 31, 2022

 

 

 

Period end amounts of ACL allocated to loans
evaluated for credit losses:

 

(Dollars in thousands)

 

Individually

 

 

Collectively

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

—

 

 

$

3,773

 

 

$

3,773

 

Non-farm non-residential non-owner occupied

 

 

—

 

 

 

5,741

 

 

 

5,741

 

Residential

 

 

—

 

 

 

1,064

 

 

 

1,064

 

Construction, development & other

 

 

—

 

 

 

3,053

 

 

 

3,053

 

Farmland

 

 

—

 

 

 

82

 

 

 

82

 

Commercial & industrial

 

 

1,600

 

 

 

14,669

 

 

 

16,269

 

Consumer

 

 

—

 

 

 

6

 

 

 

6

 

Municipal and other

 

 

—

 

 

 

363

 

 

 

363

 

 

 

$

1,600

 

 

$

28,751

 

 

$

30,351

 

 

The company’s recorded investment in loans related to the balance in the allowance for credit losses on the basis of the Company’s expected credit loss methodology is as follows at December 31, 2023 and 2022:

 

 

December 31, 2023

 

 

 

Loans evaluated for credit losses:

 

(Dollars in thousands)

 

Individually

 

 

Collectively

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,054

 

 

$

519,768

 

 

$

520,822

 

Non-farm non-residential non-owner occupied

 

 

1,393

 

 

 

585,233

 

 

 

586,626

 

Residential

 

 

2,940

 

 

 

339,649

 

 

 

342,589

 

Construction, development & other

 

 

247

 

 

 

693,306

 

 

 

693,553

 

Farmland

 

 

—

 

 

 

30,396

 

 

 

30,396

 

Commercial & industrial

 

 

13,340

 

 

 

1,249,737

 

 

 

1,263,077

 

Consumer

 

 

—

 

 

 

2,555

 

 

 

2,555

 

Municipal and other

 

 

—

 

 

 

199,170

 

 

 

199,170

 

 

 

$

18,974

 

 

$

3,619,814

 

 

$

3,638,788

 

 

 

 

December 31, 2022

 

 

 

Loans evaluated for credit losses:

 

(Dollars in thousands)

 

Individually

 

 

Collectively

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,699

 

 

$

492,092

 

 

$

493,791

 

Non-farm non-residential non-owner occupied

 

 

5,496

 

 

 

500,516

 

 

 

506,012

 

Residential

 

 

513

 

 

 

308,262

 

 

 

308,775

 

Construction, development & other

 

 

40

 

 

 

567,811

 

 

 

567,851

 

Farmland

 

 

—

 

 

 

22,820

 

 

 

22,820

 

Commercial & industrial

 

 

11,947

 

 

 

1,046,963

 

 

 

1,058,910

 

Consumer

 

 

20

 

 

 

3,852

 

 

 

3,872

 

Municipal and other

 

 

—

 

 

 

145,520

 

 

 

145,520

 

 

 

$

19,715

 

 

$

3,087,836

 

 

$

3,107,551

 

A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral.

The following table presents the amortized cost basis of collateral dependent loans which have been assessed individually for credit losses:

 

 

December 31, 2023

 

(Dollars in thousands)

 

Real Estate

 

 

Business Assets

 

 

Other

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,054

 

 

$

—

 

 

$

—

 

 

$

1,054

 

Non-farm non-residential non-owner occupied

 

 

1,393

 

 

 

—

 

 

 

—

 

 

 

1,393

 

Residential

 

 

2,940

 

 

 

—

 

 

 

—

 

 

 

2,940

 

Construction, development & other

 

 

247

 

 

 

—

 

 

 

—

 

 

 

247

 

Commercial & industrial

 

 

212

 

 

 

12,439

 

 

 

689

 

 

 

13,340

 

 

 

$

5,846

 

 

$

12,439

 

 

$

689

 

 

$

18,974

 

 
v3.24.0.1
Premises and Equipment
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Premises and Equipment
4.
Premises and Equipment

Premises and equipment in the accompanying consolidated balance sheets consisted of the following:

 

 

Estimated

 

December 31,

 

(Dollars in thousands)

 

Useful Life

 

2023

 

 

2022

 

Building and building improvements

 

30 years and
3 - 10 years

 

$

13,703

 

 

$

13,605

 

Land

 

 

 

 

3,894

 

 

 

3,894

 

Equipment

 

3 - 5 years

 

 

6,277

 

 

 

5,757

 

Leasehold improvements

 

3 - 10 years

 

 

11,678

 

 

 

9,761

 

Furniture and fixtures

 

3 - 5 years

 

 

4,666

 

 

 

4,170

 

Construction in process

 

 

 

 

2,303

 

 

 

1,964

 

 

 

 

 

42,521

 

 

 

39,151

 

Accumulated depreciation

 

 

 

 

(13,967

)

 

 

(10,489

)

 

 

 

$

28,554

 

 

$

28,662

 

Depreciation expense for the years ended December 31, 2023, 2022 and 2021 amounted to $3.5 million, $2.6 million and $1.7 million, respectively. Depreciation expense is included in occupancy and equipment expense in the accompanying consolidated statements of income.
v3.24.0.1
Deposits
 12 Months Ended
Dec. 31, 2023
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract]  
Deposit
5.
Deposits

Deposits in the accompanying consolidated balance sheets consisted of the following:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

Transaction accounts:

 

 

 

 

 

 

Noninterest bearing demand accounts

 

$

459,553

 

 

$

486,114

 

Interest bearing demand accounts

 

 

2,842,668

 

 

 

2,498,325

 

Savings

 

 

24,998

 

 

 

35,677

 

Total transaction accounts

 

 

3,327,219

 

 

 

3,020,116

 

Time deposits

 

 

475,929

 

 

 

216,030

 

Total deposits

 

$

3,803,148

 

 

$

3,236,146

 

The aggregate amount of time deposits in denominations of $250,000 or more totaled $315.4 million and $135.5 million as of December 31, 2023 and 2022, respectively.

Scheduled maturities of time deposits at December 31, 2023 are as follows:

(Dollars in thousands)

 

Maturities by Year

 

2024

 

$

392,822

 

2025

 

 

47,504

 

2026

 

 

31,845

 

2027

 

 

1,149

 

2028 and thereafter

 

 

2,609

 

 

 

$

475,929

 

At December 31, 2023 and 2022, the aggregate amount of demand deposit overdrafts that were reclassified as loans was approximately $101,000 and $31,000, respectively.

Deposits received from related parties at December 31, 2023 and 2022, totaled approximately $19.6 million and $16.0 million, respectively.
v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
6.
Income Taxes

During the years ended December 31, 2023, 2022 and 2021, the Company recorded income tax provision expense of $8.2 million, $4.5 million and $3.1 million, reflecting an effective tax rate of 19.7%, 19.5% and 21.1%, respectively.

The provision for income taxes consisted of the following:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Current income tax expense

 

$

11,102

 

 

$

5,759

 

 

$

3,439

 

Deferred income tax benefit

 

 

(2,891

)

 

 

(1,250

)

 

 

(380

)

Income tax expense as reported

 

$

8,211

 

 

$

4,509

 

 

$

3,059

 

A reconciliation of reported income tax expense to the amount computed by the Company's statutory income tax rate of 21% to income before income taxes is presented below:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Income tax expense computed at statutory rate

 

$

8,738

 

 

$

4,865

 

 

$

3,042

 

Share-based compensation

 

 

114

 

 

 

117

 

 

 

93

 

Bank-owned life insurance

 

 

(441

)

 

 

(276

)

 

 

(119

)

Non-deductible meals, entertainment, and dues

 

 

192

 

 

 

91

 

 

 

57

 

Tax-exempt income

 

 

(535

)

 

 

(283

)

 

 

(2

)

Section 291 depreciation recapture

 

 

211

 

 

 

78

 

 

 

1

 

Other, net

 

 

(68

)

 

 

(83

)

 

 

(13

)

Income tax expense as reported

 

$

8,211

 

 

$

4,509

 

 

$

3,059

 

A summary of deferred taxes is presented below:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for credit losses

 

$

8,451

 

 

$

6,352

 

Accrued expenses

 

 

331

 

 

 

264

 

Stock options and restricted stock

 

 

213

 

 

 

114

 

Phantom stock

 

 

68

 

 

 

—

 

Loan purchase mark-to-market

 

 

77

 

 

 

62

 

Deferred loan origination fees

 

 

2,405

 

 

 

1,564

 

Net unrealized loss on investment securities available-for-sale

 

 

841

 

 

 

1,271

 

Non-accrual interest

 

 

226

 

 

 

241

 

Other

 

 

223

 

 

 

124

 

Total deferred tax assets

 

 

12,835

 

 

 

9,992

 

Deferred tax liabilities:

 

 

 

 

 

 

Premises and equipment

 

 

2,007

 

 

 

2,468

 

Goodwill and core deposit intangibles

 

 

206

 

 

 

237

 

Investments

 

 

87

 

 

 

68

 

Unrealized gain on derivatives

 

 

1,089

 

 

 

712

 

Prepaid expenses and other

 

 

219

 

 

 

204

 

Total deferred tax liabilities

 

 

3,608

 

 

 

3,689

 

Net deferred tax asset

 

$

9,227

 

 

$

6,303

 

GAAP prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the consolidated financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of cumulative benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. GAAP also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties.
v3.24.0.1
FHLB Advances and Other Borrowings
 12 Months Ended
Dec. 31, 2023
Federal Home Loan Banks [Abstract]  
FHLB Advances and Other Borrowings
7.
FHLB Advances and Other Borrowings

FHLB Borrowings

The FHLB allows the Company to borrow on a blanket floating lien status collateralized by FHLB stock and real estate loans. As of December 31, 2023 and 2022, total borrowing capacity available under this arrangement was $565.1 million and $719.1 million, respectively. The Company had no FHLB advances outstanding at December 31, 2023 and 2022. Letters of credit with the FHLB in the amount of $463.1 million were issued at December 31, 2023. The letters of credit are used to collateralize public fund deposit accounts in excess of FDIC insurance limits and have expirations ranging from January 2024 through July 2025.

Line of Credit - Senior Debt

On September 10, 2022, the Company's $30.9 million revolving line of credit facility matured and was renewed and increased to $50.0 million with payment terms similar to the payment terms of the previous agreement. Prior to maturity, the note bore interest at The Wall Street Journal US Prime Rate, as such changes from time to time, with a floor rate of 4.00% per annum. Interest was payable quarterly on the 10th day of March, June, September and December through maturity date. Upon renewal, the note bears interest at The Wall Street Journal US Prime Rate, as such changes from time to time, plus 0.50%, with a floor rate of 5.00% per annum. Interest is payable quarterly on the 10th day of March, June, September and December through maturity date of September 10, 2024. All principal and unpaid interest is due at maturity. The note is secured by 100% of the outstanding stock of the Bank and is senior in rights to the subordinated debt described below. At December 31, 2023 and 2022, the outstanding balance was $38.9 million and $30.9 million, respectively.

Note Payable - Subordinated Debt

On March 31, 2022, the Company entered into Subordinated Note Purchase Agreements (the “Note Purchase Agreements”) with certain qualified institutional buyers and institutional accredited investors (the “Purchasers”) pursuant to which the Company issued and sold $82.3 million in aggregate principal amount of its 5.500% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “Notes”) in a private placement transaction in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) of the Securities Act and Regulation D thereunder. The Notes were issued by the Company to the Purchasers at a price equal to 100% of their face amount. The Note Purchase Agreements contain certain customary representations, warranties and covenants made by the Company, on the one hand, and the Purchasers, severally and not jointly, on the other hand. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes.

The Notes were issued under an Indenture, dated as of March 31, 2022 (the “Indenture”), by and between the Company and UMB Bank, N.A., as trustee. The Notes will mature on April 1, 2032. All principal and unpaid interest is due at maturity. From and including March 31, 2022, to, but excluding, April 1, 2027 or the date of early redemption, the Company will pay interest on the Notes semi-annually in arrears on April 1 and October 1 of each year, commencing on October 1, 2022, at a fixed interest rate of 5.500% per annum. From and including April 1, 2027, to, but excluding, the maturity date or the date of early redemption (the “Floating Rate Period”), the Company will pay interest on the Notes at a floating interest rate. The floating interest rate will be reset quarterly, and the interest rate for any Floating Rate Period shall be equal to the then-current Three-Month Term Secured Overnight Financing Rate (“SOFR”) plus 315 basis points for each quarterly interest period during the Floating Rate Period. Interest payable on the Notes during the Floating Rate Period will be paid quarterly in arrears on January 1, April 1, July 1 and October 1, of each year, commencing on July 1, 2027. Notwithstanding the foregoing, in the event that Three-Month Term SOFR is less than zero, then Three-Month Term SOFR rate shall be deemed to be zero.

On March 31, 2022, in connection with the issuance and sale of the Notes, the Company entered into Registration Rights Agreements with the Purchasers. Under the terms of the Registration Rights Agreements, the Company agreed to take certain actions to provide for the exchange of the Notes for subordinated notes that are registered under the Securities Act and have substantially the same terms as the Notes. The exchange offer under the Registration Rights Agreement was completed on July 19, 2022.

The Company may, at its option, redeem the Notes (i) in whole or in part beginning with the interest payment date on April 1, 2027, and on any interest payment date thereafter, or (ii) in whole, but not in part, upon the occurrence of a “Tier 2 Capital Event,” a “Tax Event,” or “Investment Company Event”. The redemption price for any redemption is 100% of the principal amount of the Notes, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. Any redemption of the Notes will be subject to the receipt of the approval of the Board of Governors of the Federal Reserve System (the “Federal Reserve”) to the extent then required under applicable laws or regulations, including capital adequacy rules or regulations.

There is no right of acceleration of maturity of the Notes in the case of default in the payment of principal of, or interest on, the Notes or in the performance of any other obligation of the Company under the Notes or the Indenture. The Indenture provides that holders of the Notes may accelerate payment of indebtedness only upon the Company’s bankruptcy, insolvency, reorganization, receivership or other similar proceedings.

The Notes are general unsecured, subordinated obligations of the Company and rank junior to all of its existing and future Senior Indebtedness (as defined in the Indenture), including all of its general creditors. The Notes will be equal in right of payment with any of the Company’s existing and future subordinated indebtedness and will be senior to the Company’s obligations relating to any junior subordinated debt securities. In addition, the Notes are effectively subordinated to all secured indebtedness of the Company, including without limitation, the Bank’s liabilities to depositors in connection with deposits in the Bank, to the extent of the value of the collateral securing such indebtedness.

In connection with the above offering, the Company incurred approximately $2.1 million in debt issuance costs which will be amortized to interest expense on a straight-line basis over the ten-year life of the note. As of December 31, 2023 and 2022, the Company had $82.3 million in outstanding principal, and $1.7 million and $1.9 million, respectively, in unamortized debt issuance costs.

Federal Reserve Borrower-in-Custody (BIC) Loan Pledge Arrangement

During June 2023, the Federal Reserve Bank approved the Company to begin pledging, on a blanket floating lien status, its commercial and industrial loans under a Borrower-in-Custody arrangement. The arrangement provides the Company with the ability to secure collateralized contingency funding from the Discount Window of the Federal Reserve Bank of Dallas. As of December 31, 2023, total borrowing capacity under this arrangement was $1.2 billion. The Company had no advances outstanding under these lines as of December 31, 2023.

Federal Funds Lines of Credit

At December 31, 2023 and 2022, the Company had federal funds lines of credit with commercial banks that provide for availability to borrow up to an aggregate of $36.5 million. The Company had no advances outstanding under these lines at December 31, 2023 and 2022.
v3.24.0.1
Stock Options and Warrants
 12 Months Ended
Dec. 31, 2023
Stock Options And Warrants [Abstract]  
Stock Options and Warrants
8.
Stock Options and Warrants

2013 Stock Option Plan

In 2008 upon shareholder approval, the Bank adopted the 2008 Stock Option Plan. In 2013 upon formation of Third Coast Bancshares, Inc., the Company adopted the 2013 Stock Option Plan (the “2013 Plan”). All outstanding options from the 2008 Stock Option Plan were grandfathered into the 2013 Plan. The 2013 Plan permits the grant of stock options for up to 500,000 shares of common stock from time to time during the term of the plan, subject to adjustment upon changes in capitalization. Under the 2013 Plan, the Bank may grant either incentive stock options or nonqualified stock options to eligible directors, executive officers, key employees and non-employee shareholders of the Bank. At December 31, 2023, there were no shares remaining available for grant for future awards as all outstanding options under the 2013 Plan were grandfathered into the 2019 Omnibus Incentive Plan (see 2019 Omnibus Incentive Plan). Awards outstanding under the 2013 Plan remain in full force and effect, according to their respective terms.

2019 Omnibus Incentive Plan

On May 29, 2019, the Company’s shareholders approved the Third Coast Bancshares, Inc. 2019 Omnibus Incentive Plan (the “2019 Plan”), which was previously approved by the Company’s board of directors. Under the 2019 Plan, the Company may issue stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses, other stock-based awards, cash awards, and dividend equivalents. On May 20, 2021, the Company’s shareholders approved an amendment to the plan such that the maximum number of shares reserved for issuance under the Plan was increased by an additional 500,000 shares. The maximum aggregate number of shares of common stock that may be issued under the 2019 Plan is equal to the sum of (i) 800,000 shares of common stock, (ii) the total number of shares remaining available for new awards under the 2013 Plan as of May 29, 2019, which was 152,750 shares of common stock, and (iii) any shares subject to outstanding stock options issued under the 2013 Plan to the extent that (A) any such award is forfeited or otherwise terminates or is canceled without the delivery of shares of common stock, or (B) shares of common stock are withheld from any such award to satisfy any tax or withholding obligation, in which case the shares of common stock covered by such forfeited, terminated or canceled award or which are equal to the number of shares of common stock withheld, will become available for issuance under the 2019 Plan. At December 31, 2023, there were 81,384 shares remaining available for grant for future awards under the 2019 Plan.

2017 Non-Employee Director Stock Option Plan

In December 2017, the Bank adopted the 2017 Non-Employee Director Stock Option Plan (the “Director Plan”). The Director Plan originally authorized the grant of stock options for up to 100,000 shares of common stock to non-employee directors of the Company pursuant to the terms of the Director Plan. During July 2018, the Company's board of directors approved the grant of stock options for 50,000 additional shares of common stock under the Director Plan, such that the Director Plan permitted the grant of stock options for up to 150,000 shares of common stock. On January 1, 2021, the Director Plan was amended and subsequently approved by the Company’s board of directors such that the aggregate number of shares of common stock to be issued pursuant to options shall not

exceed 187,000 shares. Options are generally granted with an exercise price equal to the market price of the Company’s stock at the date of the grant. Option awards generally vest based on 5 years of continuous service and have 10-year contractual terms for non-controlling participants as defined by the Director Plan. Other grant terms can vary for controlling participants as defined by the Director Plan. At December 31, 2023, there were 13,806 shares remaining available for grant for future awards under the Director Plan.

2020 Heritage Stock Option Plan

On January 1, 2020, the Company acquired a stock option plan which originated under Heritage Bancorp, Inc. as part of a merger of the two companies. The options granted to employees must be exercised within 10 years from the date of grant and vesting schedules are determined on an individual basis. At merger date, 109,908 outstanding options became fully vested and were converted to options to purchase 97,821 shares of the Company’s common stock at an exchange ratio of 0.89, which was equal to the acquisition exchange rate for common shares. At December 31, 2023, no shares were available for grant for future awards.

Stock Options

During the year ended December 31, 2023, the Company granted stock options under the 2019 Plan to certain directors, executive officers and other key employees of the Company. These options vest ratably over 5 years and have a 10 year contractual term. Options granted during the year ended December 31, 2023 were granted with an exercise price ranging from $13.95 to $20.17. Options granted during the year ended December 31, 2022 were granted with an exercise price ranging from $17.11 to $25.76.

The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the options granted during the year ended December 31, 2023: risk-free interest rate ranging from 3.42% to 4.75%; dividend yield of 0.00%; estimated volatility ranging from 17.81% to 22.70%; and expected lives of options of 7.5 years. The following assumptions were used for options granted during the year ended December 31, 2022: risk-free interest rate ranging from 1.45% to 4.17%; dividend yield of 0.00%; estimated volatility ranging from 10.00% to 38.00%; and expected lives of options of 7.5 years. The following assumptions were used for options granted during the year ended December 31, 2021: risk-free interest rate ranging from 0.70% to 1.48%; dividend yield of 0.00%; estimated volatility of 10.00%; and expected lives of options of 7.5 years. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer group averages.

For the years ended December 31, 2023, 2022 and 2021, the Company recognized stock-based compensation expense of approximately $472,000, $646,000 and $552,000, respectively, associated with stock options. As of December 31, 2023, there was approximately $1.5 million of unrecognized compensation costs related to non-vested stock options that are expected to be recognized over the remaining vesting periods. Forfeitures are recognized as they occur.

A summary of stock option activity for years ended December 31, 2023 and 2022 is presented below:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

Shares
 Underlying
 Options

 

 

Weighted
Average
 Exercise Price

 

 

Shares
 Underlying
 Options

 

 

Weighted
Average
 Exercise Price

 

Outstanding at beginning of period

 

 

1,203,928

 

 

$

18.05

 

 

 

1,220,428

 

 

$

17.83

 

Granted during the period

 

 

45,500

 

 

 

17.37

 

 

 

136,000

 

 

 

21.15

 

Forfeited during the period

 

 

(122,537

)

 

 

20.89

 

 

 

(105,167

)

 

 

21.18

 

Exercised during the period

 

 

(868

)

 

 

15.45

 

 

 

(47,333

)

 

 

14.38

 

Outstanding at the end of period

 

 

1,126,023

 

 

$

17.72

 

 

 

1,203,928

 

 

$

18.05

 

Options exercisable at end of period

 

 

678,053

 

 

$

16.33

 

 

 

527,658

 

 

$

15.51

 

Weighted-average grant date fair value of options
   granted during the period

 

 

 

 

$

5.00

 

 

 

 

 

$

6.80

 

 

A summary of weighted average remaining life is presented below:

 

 

December 31,

 

 

 

2023

 

 

2022

 

Exercise Price

 

Options Outstanding

 

 

Weighted
Average
Remaining Life (years)

 

 

Options Exercisable

 

 

Options Outstanding

 

 

Weighted
Average
Remaining Life (years)

 

 

Options
 Exercisable

 

$10.00 - $12.99

 

 

144,050

 

 

 

0.95

 

 

 

144,050

 

 

 

146,553

 

 

 

1.96

 

 

 

146,553

 

$13.00 - $16.99

 

 

436,223

 

 

 

5.56

 

 

 

344,353

 

 

 

435,175

 

 

 

6.45

 

 

 

280,905

 

$17.00 - $26.99

 

 

545,750

 

 

 

7.72

 

 

 

189,650

 

 

 

622,200

 

 

 

8.69

 

 

 

100,200

 

 

 

 

1,126,023

 

 

 

6.02

 

 

 

678,053

 

 

 

1,203,928

 

 

 

7.06

 

 

 

527,658

 

Shares issued in connection with stock compensation awards are issued from available authorized shares.

The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $3.1 million and $2.6 million, respectively, at December 31, 2023. The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $2.1 million and $1.8 million, respectively, at December 31, 2022.

The intrinsic value of stock options exercised during the years ended December 31, 2023, 2022 and 2021 was approximately $2,000, $236,000 and $506,000, respectively.

A summary of the activity in the Company’s nonvested shares is as follows:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

 

Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Nonvested at January 1,

 

 

676,270

 

 

$

3.82

 

 

 

858,670

 

 

$

3.15

 

Granted during the period

 

 

45,500

 

 

 

5.00

 

 

 

136,000

 

 

 

6.80

 

Vested during the period

 

 

(188,100

)

 

 

2.90

 

 

 

(219,900

)

 

 

3.07

 

Forfeited during the period

 

 

(85,700

)

 

 

3.54

 

 

 

(98,500

)

 

 

3.70

 

Nonvested at end of period

 

 

447,970

 

 

$

3.94

 

 

 

676,270

 

 

$

3.82

 

For the year ended December 31, 2021, the weighted-average grant date fair value of options granted and vested during the period was $3.15 and $3.17, respectively.

Warrants

The Company had fully vested stock warrants issued in connection with the organization of the Company during 2013, which were exercisable over a ten-year period to purchase one share of common stock for each warrant held. As of December 31, 2023, all stock warrants issued in connection with the organization of the Company were exercised prior to their expiration date of July 1, 2023.

In connection with the preferred stock private placement on September 30, 2022, the Company issued warrants to purchase an aggregate of 175,000 shares of the Company's common stock (or, at the election of the warrant holder in accordance with the terms of the warrant agreement, Series B Convertible Perpetual Preferred Stock, par value $1.00 per share, or non-voting common stock, par value $1.00 per share, of the Company) (the “Preferred Warrants”) to certain investors. The Preferred Warrants have an exercise price of $22.50 per share, are fully vested, and are exercisable over a seven-year period that expires on September 30, 2029. The fair value of the warrants was approximately $380,000 on grant date and is included in additional paid in capital. The weighted average remaining contractual life of these outstanding Preferred Warrants was 5.75 years as of December 31, 2023.

A summary of the Company’s stock warrant activity is presented below:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

Shares
Underlying
Warrants

 

 

Weighted
Average
Exercise
Price

 

 

Shares
Underlying
Warrants

 

 

Weighted
Average
Exercise
Price

 

Outstanding at beginning of period

 

 

179,285

 

 

$

22.23

 

 

 

4,285

 

 

$

11.00

 

Granted

 

 

—

 

 

 

—

 

 

 

175,000

 

 

 

22.50

 

Exercised

 

 

(4,285

)

 

 

11.00

 

 

 

—

 

 

 

—

 

Outstanding at end of period

 

 

175,000

 

 

$

22.50

 

 

 

179,285

 

 

$

22.23

 

Exercisable at end of period

 

 

175,000

 

 

$

22.50

 

 

 

179,285

 

 

$

22.23

 

Restricted Stock Awards

The Company granted restricted stock awards (“RSAs”) to certain directors, executive officers and employees of the Company. Restricted stock is common stock with certain restrictions that relate to trading and the possibility of forfeiture. Holders of restricted stock have full voting rights. Generally, the awards vest ratably over a two-to-four year period but vesting periods may vary. The RSAs have a 10 year contractual term.

A summary of the activity for non-vested RSAs for the years ended December 31, 2023 and 2022 is presented below:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

Shares

 

 

Weighted
Average
Grant Date
 Fair Value

 

 

Shares

 

 

Weighted
Average
Grant Date
 Fair Value

 

Nonvested at beginning of period

 

 

76,094

 

 

$

22.35

 

 

 

49,750

 

 

$

24.00

 

Granted during the period

 

 

75,956

 

 

 

16.18

 

 

 

54,424

 

 

 

21.81

 

Vested during the period

 

 

(34,883

)

 

 

12.88

 

 

 

(18,580

)

 

 

24.00

 

Forfeited during the period

 

 

(6,943

)

 

 

21.98

 

 

 

(9,500

)

 

 

24.67

 

Nonvested at the end of period

 

 

110,224

 

 

$

17.44

 

 

 

76,094

 

 

$

22.35

 

Compensation expense for RSAs is recorded over the vesting period and is determined based on the number of restricted shares granted and the market price of our common stock at issue date. The Company recognized stock-based compensation expense associated with RSAs of approximately $1.1 million, $629,000 and $107,000 during the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, there was $1.3 million of total unrecognized compensation cost related to non-vested RSAs that is expected to be recognized over the remaining vesting period.

v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases
9.
Leases

Operating Leases

The Company leases certain office space, and stand-alone buildings and equipment which are recognized as right-of-use (“ROU”) operating lease assets and operating lease liabilities and are included in the consolidated balance sheets. Lease liabilities represent the Company's liability to make lease payments under these leases, on a discounted basis. For leases with renewal options available, the Company evaluates each lease to determine if exercise of the renewal option is reasonably certain. As of December 31, 2023, the Company's operating lease ROU asset and operating lease liability totaled $21.4 million and $22.3 million, respectively.

In order to calculate its ROU assets and lease liabilities, ASC Topic 842 requires the Company to use the rate of interest implicit in the lease when readily determinable. If the rate implicit in the lease is not readily determinable, the Company is required to use its incremental borrowing rate, which is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term in a similar economic environment. The Company was unable to determine the implicit interest rate in any of the leases and therefore used its incremental borrowing rate.

As of December 31, 2023, the weighted-average discount rate for the Company's operating leases was 4.60%. The Company's lease terms range from five months to one hundred forty-four months. The weighted-average remaining term of the leases was 8.64 years.

Lease costs for the period shown below were as follows:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Operating lease cost

 

$

4,281

 

 

$

2,804

 

 

$

1,605

 

Short-term lease cost

 

 

149

 

 

 

607

 

 

 

—

 

Total lease cost

 

$

4,430

 

 

$

3,411

 

 

$

1,605

 

Total operating lease expense for the years ended December 31, 2023, 2022 and 2021 was $4.4 million, $3.4 million and $1.6 million, respectively.

A schedule of the Company's lease liabilities by contractual maturity for operating leases with initial or remaining terms in excess of one year for each year through 2028 and thereafter is presented below:

(Dollars in thousands)

 

Operating Lease Maturities

 

2024

 

$

3,141

 

2025

 

 

3,250

 

2026

 

 

3,323

 

2027

 

 

3,376

 

2028 and thereafter

 

 

15,032

 

Total undiscounted lease liability

 

 

28,122

 

Less: Discount on cash flows

 

 

(4,732

)

Leases signed, but not yet commenced

 

 

(1,110

)

Total operating lease liability

 

$

22,280

 
v3.24.0.1
Financial Instruments With Off Balance Sheet Risk
 12 Months Ended
Dec. 31, 2023
Financial Instruments With Off Balance Sheet Risk [Abstract]  
Financial Instruments With Off Balance Sheet Risk
10.
Financial Instruments With Off-Balance Sheet Risk

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for unfunded lines of credit, commitments to extend credit and standby letters of credit is represented by the contractual notional amount of these instruments. The Company generally uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

The following financial instruments were outstanding whose contract amounts represent credit risk:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

Commitments to extend credit

 

$

1,352,147

 

 

$

1,148,012

 

Standby letters of credit

 

 

26,850

 

 

 

21,728

 

Total

 

$

1,378,997

 

 

$

1,169,740

 

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Management evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank's policy for obtaining collateral and the nature of such collateral is essentially the same as that involved in making commitments to extend credit.

The allowance for credit losses on off-balance-sheet credit exposures is a liability account, calculated in accordance with ASC 326, representing expected credit losses over the contractual period for which we are exposed to credit risk resulting from a contractual obligation to extend credit. Off-balance sheet credit exposures primarily consist of amounts available under outstanding lines of credit and letters of credit detailed in the table above, less those obligations which the Company has the unconditional right to cancel. No allowance is recognized if the issuer has an unconditional right to cancel the obligation. The amount of the allowance represents management's best estimate of expected credit losses on commitments expected to be funded over the contractual life of the commitment. At December 31, 2023, the allowance for credit losses related to off-balance sheet exposures was $2.4 million.
v3.24.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements
11.
Fair Value Measurements

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

GAAP requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

The fair value hierarchy is as follows:

•
Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
•
Level 2 Inputs – Inputs other than quoted prices included in level 1 that are observable for the asset and liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 investments consist primarily of obligations of U.S. government sponsored enterprises and agencies, obligations of state and municipal subdivisions, corporate bonds and mortgage-backed securities.
•
Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Financial assets and financial liabilities measured at fair value on a recurring and nonrecurring basis include the following:

Investment Securities Available-for-sale. Investment securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information, and the bond’s terms and conditions, among other things.

Loans Held for Sale. Loans held for sale are reported at aggregate cost which has been deemed to be the equivalent of fair value using Level 3 inputs.

Loans Evaluated Individually for Expected Credit Losses. Individually evaluated loans are reported at the estimated fair value of the underlying collateral. Collateral values are estimated using Level 2 inputs based on observable market data or independent appraisals using Level 3 inputs.

Derivative Instruments. The estimated fair value of interest rate derivative positions are obtained from a pricing service that provides the swaps’ unwind value using Level 2 inputs.

There were no transfers between levels during the year ended December 31, 2023 or 2022.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value as of December 31, 2023 and 2022:

 

 

Fair Value Measurements Using

 

 

 

 

(Dollars in thousands)

 

Level 1 Inputs

 

 

Level 2 Inputs

 

 

Level 3 Inputs

 

 

Total Fair Value

 

At December 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

—

 

 

$

3,991

 

 

$

—

 

 

$

3,991

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

—

 

 

 

78,533

 

 

 

—

 

 

 

78,533

 

Corporate bonds

 

 

—

 

 

 

95,563

 

 

 

—

 

 

 

95,563

 

Total investment securities available-for-sale

 

$

—

 

 

$

178,087

 

 

$

—

 

 

$

178,087

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

 

 

Pass-through interest rate swaps

 

$

—

 

 

$

8,774

 

 

$

—

 

 

$

8,774

 

Risk participation agreements

 

 

—

 

 

 

6

 

 

 

—

 

 

 

6

 

Pay-fixed interest rate swaps

 

 

—

 

 

 

48

 

 

 

—

 

 

 

48

 

Total derivative assets

 

$

—

 

 

$

8,828

 

 

$

—

 

 

$

8,828

 

Derivative liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

$

—

 

 

$

1,541

 

 

$

—

 

 

$

1,541

 

Interest rate swaps

 

$

—

 

 

$

8,774

 

 

$

—

 

 

$

8,774

 

Risk participation agreements

 

 

—

 

 

 

20

 

 

 

—

 

 

 

20

 

Pay-fixed interest rate swaps

 

 

—

 

 

 

352

 

 

 

—

 

 

 

352

 

Total derivative liabilities

 

$

—

 

 

$

10,687

 

 

$

—

 

 

$

10,687

 

 

 

 

Fair Value Measurements Using

 

 

 

 

(Dollars in thousands)

 

Level 1 Inputs

 

 

Level 2 Inputs

 

 

Level 3 Inputs

 

 

Total Fair Value

 

At December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal securities

 

$

—

 

 

$

417

 

 

$

—

 

 

$

417

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

—

 

 

 

22,881

 

 

 

—

 

 

 

22,881

 

U.S. Treasury bonds

 

 

—

 

 

 

98,518

 

 

 

—

 

 

 

98,518

 

Corporate bonds

 

 

—

 

 

 

54,251

 

 

 

—

 

 

 

54,251

 

Total investment securities available-for-sale

 

$

—

 

 

$

176,067

 

 

$

—

 

 

$

176,067

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

—

 

 

$

9,213

 

 

$

—

 

 

$

9,213

 

Total derivative assets

 

$

—

 

 

$

9,213

 

 

$

—

 

 

$

9,213

 

Derivative liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

—

 

 

$

9,213

 

 

$

—

 

 

$

9,213

 

Risk participation agreements

 

 

—

 

 

 

8

 

 

 

—

 

 

 

8

 

Total derivative liabilities

 

$

—

 

 

$

9,221

 

 

$

—

 

 

$

9,221

 

Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a non-recurring basis include the following at December 31, 2023 and 2022:

Loans Evaluated Individually for Expected Credit Losses. At December 31, 2023, collateral dependent loans with carrying values of $19.0 million were reduced by specific valuation allowances totaling $4.4 million resulting in a net fair value of $14.6 million based on Level 3 inputs. The collateral on these loans primarily consists of commercial real estate, equipment and accounts receivables. At December 31, 2022, impaired loans with carrying values of $19.7 million were reduced by specific valuation allowances totaling $1.6 million resulting in a net fair value of $18.1 million based on Level 3 inputs.

Non-financial assets measured at fair value on a non-recurring basis include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for credit losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in current earnings. The fair value of a foreclosed asset is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. The Company had no foreclosed assets as of December 31, 2023 and 2022.

For the Company, as for most financial institutions, substantially all its assets and liabilities are considered financial instruments as defined. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction.

The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

Financial instruments with stated maturities have been valued using a present value discounted cash flow with a discount rate approximating current market rates for similar assets and liabilities. Financial instrument assets with variable rates and financial instrument liabilities with no stated maturities have an estimated fair value equal to both the amount payable on demand and the carrying value.

The carrying value and the estimated fair value of the Company’s contractual off-balance sheet unfunded lines of credit, loan commitments and letters of credit are generally priced at market at the time of funding.

The estimated fair values and carrying values of all financial instruments under current authoritative guidance, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value are as follows:

 

December 31, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

Carrying
 Value

 

 

Estimated
Fair Value

 

 

Carrying
   Value

 

 

Estimated
Fair Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

Level 2 inputs

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

411,845

 

 

$

411,845

 

 

$

332,014

 

 

$

332,014

 

Investment securities available-for-sale

 

178,087

 

 

 

178,087

 

 

 

176,067

 

 

 

176,067

 

Non-marketable securities

 

16,041

 

 

 

16,041

 

 

 

14,618

 

 

 

14,618

 

Accrued interest receivable

 

23,120

 

 

 

23,120

 

 

 

18,340

 

 

 

18,340

 

Bank-owned life insurance

 

65,861

 

 

 

65,861

 

 

 

60,761

 

 

 

60,761

 

Derivative assets

 

8,828

 

 

 

8,828

 

 

 

9,213

 

 

 

9,213

 

$

703,782

 

 

$

703,782

 

 

$

611,013

 

 

$

611,013

 

Level 3 inputs

 

 

 

 

 

 

 

 

 

 

 

Loans, net

$

3,601,766

 

 

$

3,532,270

 

 

$

3,077,200

 

 

$

2,920,213

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

Level 2 inputs

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

3,803,148

 

 

$

3,821,744

 

 

$

3,236,146

 

 

$

3,238,857

 

Accrued interest payable

 

4,794

 

 

 

4,794

 

 

 

2,545

 

 

 

2,545

 

Note payable and line of credit

 

119,428

 

 

 

119,428

 

 

 

111,223

 

 

 

111,223

 

Derivative liabilities

 

10,687

 

 

 

10,687

 

 

 

9,221

 

 

 

9,221

 

$

3,938,057

 

 

$

3,956,653

 

 

$

3,359,135

 

 

$

3,361,846

 
v3.24.0.1
Significant Group Concentrations of Credit Risk
 12 Months Ended
Dec. 31, 2023
Risks and Uncertainties [Abstract]  
Significant Group Concentrations of Credit Risk
12.
Significant Group Concentrations of Credit Risk

The Company’s principal business activities are with customers primarily located within Texas. Such customers are normally also depositors of the Company. In addition, the Company employs a national wholesale deposit strategy to attract and maintain large, relatively low-cost stable deposits through a number of core, fiduciary and institutional deposit programs.

The distribution of commitments to extend credit approximates the distribution of loans outstanding. The contractual amounts of credit related financial instruments such as commitments to extend credit and credit card arrangements represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless.

At December 31, 2023 and 2022, the Company had federal funds sold aggregating approximately $114.9 million and $2.1 million, respectively, which represents concentrations of credit risk. The Company also maintains deposit balances with other financial institutions that exceed FDIC coverage and also represent credit risk. These balances were approximately $262.1 million and $279.1 million, respectively, at December 31, 2023 and 2022. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.
v3.24.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Postemployment Benefits [Abstract]  
Employee Benefit Plans
13.
Employee Benefit Plans

In 2009, the Company adopted the Third Coast Bank, SSB 401(k) Plan (the “Plan”) covering substantially all employees. Employees may elect to defer a percentage of their compensation subject to certain limits based on federal tax laws. The Company may make a discretionary match of employees’ contributions based on a percentage of salary contributed by participants.

Effective January 1, 2018, discretionary contributions made by the Company were invested in the common stock of the Company in accordance with the Third Coast Bank, SSB Employee Stock Ownership Plan (“ESOP”), which was established and became effective on January 1, 2018 for the exclusive benefit of the participants and their beneficiaries. Benefits under the ESOP generally were distributed in the form of cash. In addition, until the Company’s common stock was actively traded on an established securities market, the participant could demand (in accordance with the terms of the ESOP and applicable laws) that the Company repurchase shares of common stock distributed to the participant at the estimated fair value. This put option terminated upon the consummation of the Company's initial public offering (“IPO”) and listing of its common stock on the Nasdaq Global Select Market in November 2021.

Prior to the IPO, the fair value of shares of common stock held by the ESOP was deducted from permanent shareholders’ equity in the consolidated balance sheets, and was reflected in a line item below liabilities and above shareholders’ equity. This presentation was necessary in order to recognize the put option within the ESOP, consistent with SEC guidelines, because the Company was not publicly traded. At December 31, 2021, the $2.3 million estimated fair value of the cash obligation for stock allocated under the ESOP plan was eliminated upon completion of the IPO.

ESOP Plan Merged Into 401-K Plan

Effective July 1, 2022, the Company merged the ESOP into the Plan, herein known as the Third Coast Bank, SSB 401(k) and Employee Stock Ownership Plan (the “Merged Plan”). In connection with the plan merger on July 1, 2022, the Company registered an aggregate of 400,000 shares of the Company's common stock, par value $1.00 per share, for issuance to the Merged Plan in connection with elections by participants to allocate a portion of their plan account balances (up to the limits prescribed under the Merged Plan) to the Company stock fund investment option. The number of shares held by the ESOP immediately prior to the plan merger was 149,461 shares. Under the Merged Plan, discretionary contributions made by the Company will be invested at the direction of the plan participant, in accordance with participant plan elections.

For the years ended December 31, 2023 and 2022, Company contributions to the Merged Plan were approximately $1.5 million and $1.4 million, respectively. Administrative expenses related to the Merged Plan for the same twelve month periods totaled approximately $53,000 and $59,000. The costs are included in salaries and employee benefits in the accompanying consolidated statements of income.

For the year ended December 31, 2021, Company contributions to the ESOP, and administrative expenses related to the ESOP and the Plan were approximately $936,000 and $41,000, respectively. The costs are included in salaries and employee benefits in the accompanying consolidated statements of income.

Phantom Stock Appreciation Plan

On May 3, 2023, the Board of Directors approved the Third Coast Bancshares, Inc. Phantom Stock Appreciation Plan (the “Phantom Stock Plan”). Under the Phantom Stock Plan, participants are granted phantom stock units (“PSUs”) which vest ratably over a three-year period through March 15, 2026. The PSU confers to the participant the benefits of owning stock without the actual ownership or transfer of shares. Each stock unit entitles the participant to receive, upon vesting of each PSU, an amount equal to the sum of (a) the opening value and (b) the bonus amounts applicable to each PSU, as calculated pursuant to the terms of the Phantom Stock Plan and the Award Agreement. Settlement is payable to participants within 30 days of the vesting date.

The Phantom Stock Plan is an unfunded plan whereby benefits are paid by the Company from its general assets, and participants have the rights of a general, unsecured creditor against the Company for any payments due hereunder. If a participant ceases, for any reason other than death or disability, to be a service provider, then the participant forfeits all rights to his or her outstanding PSUs. If the participant ceases to be a service provider due to the participant’s death or disability, then all unvested PSUs become fully vested on the date the participant ceases to be a service provider. For the year ended December 31, 2023, the Company had expensed $378,000 in deferred compensation related to the Phantom Stock Plan.
v3.24.0.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Related Party Transactions
14.
Related Party Transactions

During the normal course of business, the Company may enter into transactions with significant stockholders, directors and principal officers and their affiliates (collectively referred to herein as “related parties”). It is the Company’s policy that all such transactions are on substantially the same terms as those prevailing at the time for comparable transactions with third parties. At December 31, 2023 and 2022, the aggregate amount of loans to related parties was approximately $1.4 million and $1.5 million, respectively. During the year ended December 31, 2023, loan originations to related parties totaled $570,000 and repayments from related party loans totaled $682,000. Related party unfunded commitments at December 31, 2023 and 2022, were $402,000 and $587,000, respectively. Deposits received from related parties at December 31, 2023 and 2022, totaled approximately $19.6 million and $16.0 million, respectively.
v3.24.0.1
Shareholders’ Equity and Regulatory Matters
 12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Shareholders’ Equity and Regulatory Matters
15.
Shareholders’ Equity and Regulatory Matters

Amendment to Certificate of Formation

On May 25, 2023, the shareholders of the Company approved the amendment and restatement (the “Amendment”) of Article VI of the Company's first amended and restated certificate of formation to authorize a new class of non-voting common stock, par value $1.00 per share. Under the terms of the Amendment, the Company is authorized to issue 54,500,000 shares of capital stock, consisting of 50,000,000 shares of common stock, par value $1.00 per share, 3,500,000 shares of non-voting common stock, par value $1.00 per share, and 1,000,000 shares of preferred stock, par value $1.00 per share. The shares of capital stock may be issued as authorized by the board of directors of the Company without the approval of its shareholders, except as otherwise provided by governing law, rule or regulation or as set forth in the certificate of formation, as amended. The Amendment became effective upon the filing of the Certificate of Amendment to the Certificate of Formation of the Company with the Secretary of State of the State of Texas on May 25, 2023.

Preferred Stock

On September 30, 2022, the Company adopted resolutions creating Series A Convertible Non-Cumulative Preferred Stock (“Series A Preferred Stock”) and Series B Convertible Perpetual Preferred Stock, with 69,400 shares authorized for each series.

Preferred Stock - Private Placement

On September 30, 2022, the Company completed a private placement of (i) 69,400 shares of Series A Preferred Stock with a liquidation preference of $1,000 per share, and (ii) the Preferred Warrants at an exercise price equal to $22.50 per share, for aggregate gross proceeds of $69.4 million before deducting placement fees and offering expenses. Aggregate net proceeds were $66.2 million after deducting placement fees and offering expenses of $3.2 million. The Company used the net proceeds of the private placement for general corporate purposes.

The securities sold in the private placement were sold only to accredited investors and were issued without registration under the Securities Act, in reliance upon the exemption provided under Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder as securities offered and sold only to accredited investors (as defined in Rule 501(a) of Regulation D under the Securities Act) in a transaction not involving any public offering. Officers and directors of the Company purchased $2.7 million of the Series A Preferred Stock.

Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory (and possibly additional discretionary) actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 capital, and Common Equity Tier 1 capital (as defined in the regulations) to risk-weighted

assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2023 and 2022 the Bank meets all capital adequacy requirements to which it is subject.

Financial institutions are categorized as well capitalized or adequately capitalized, based on minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the tables below. As shown below, the Bank’s capital ratios exceed the regulatory definition of well capitalized as of December 31, 2023 and 2022. Based upon the information in its most recently filed call report, the Bank continues to meet the capital ratios necessary to be well capitalized under the regulatory framework for prompt corrective action.

There are no conditions or events since December 31, 2023, that management believes have changed the Bank’s category.

A comparison of the Bank’s actual capital amounts and ratios to required capital amounts and ratios are presented in the following table. The Company began reporting ratios beginning March 31, 2023 in accordance with the regulatory framework. Capital levels required to be well capitalized are based upon prompt corrective action regulations, as amended, to reflect the changes under the Basel III Capital Rules.

 

 

Actual

 

 

For Capital Adequacy
Purposes

 

 

To Be Well Capitalized
Under Prompt Corrective
Action Provisions

 

(Dollars in thousands)

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

THIRD COAST BANCSHARES, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Consolidated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

$

512,024

 

 

 

12.66

%

 

≥

$

424,563

 

 

≥

 

10.50

%

 

 

N/A

 

 

 

N/A

 

Tier 1 capital (to risk weighted assets)

 

$

392,037

 

 

 

9.70

%

 

≥

$

343,694

 

 

≥

 

8.50

%

 

 

N/A

 

 

 

N/A

 

Tier 1 capital (to average assets)

 

$

392,037

 

 

 

9.23

%

 

≥

$

169,917

 

 

≥

 

4.00

%

 

 

N/A

 

 

 

N/A

 

Common equity tier 1 (to risk weighted assets)

 

$

325,812

 

 

 

8.06

%

 

≥

$

283,042

 

 

≥

 

7.00

%

 

 

N/A

 

 

 

N/A

 

THIRD COAST BANK, SSB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

$

544,624

 

 

 

13.49

%

 

≥

$

423,829

 

 

≥

 

10.50

%

 

≥

$

403,647

 

 

≥

 

10.00

%

Tier 1 capital (to risk weighted assets)

 

$

505,190

 

 

 

12.52

%

 

≥

$

343,100

 

 

≥

 

8.50

%

 

≥

$

322,918

 

 

≥

 

8.00

%

Tier 1 capital (to average assets)

 

$

505,190

 

 

 

11.91

%

 

≥

$

169,649

 

 

≥

 

4.00

%

 

≥

$

212,062

 

 

≥

 

5.00

%

Common equity tier 1 (to risk weighted assets)

 

$

505,190

 

 

 

12.52

%

 

≥

$

282,553

 

 

≥

 

7.00

%

 

≥

$

262,371

 

 

≥

 

6.50

%

As of December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

$

496,222

 

 

 

13.79

%

 

≥

$

377,782

 

 

≥

 

10.50

%

 

≥

$

359,793

 

 

≥

 

10.00

%

Tier 1 capital (to risk weighted assets)

 

$

465,871

 

 

 

12.95

%

 

≥

$

305,824

 

 

≥

 

8.50

%

 

≥

$

287,834

 

 

≥

 

8.00

%

Tier 1 capital (to average assets)

 

$

465,871

 

 

 

13.11

%

 

≥

$

142,188

 

 

≥

 

4.00

%

 

≥

$

177,734

 

 

≥

 

5.00

%

Common equity tier 1 (to risk weighted assets)

 

$

465,871

 

 

 

12.95

%

 

≥

$

251,855

 

 

≥

 

7.00

%

 

≥

$

233,865

 

 

≥

 

6.50

%
v3.24.0.1
Earnings Per Common Share
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Earnings Per Common Share
16.
Earnings Per Common Share

Basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per common share is computed by using the net earnings allocated to common stock plus dividends on dilutive convertible preferred stock, divided by the sum of 1) the weighted-average number of shares determined for the basic earnings per common share computation, 2) the dilutive effect of stock compensation using the treasury stock method, and 3) the dilutive effect of convertible preferred stock using the if-converted method. At December 31, 2022, the dilutive effects of convertible preferred stock were excluded from diluted earnings per share due to their anti-dilutive effects on the computation.

The following table presents a reconciliation of net income available to common shareholders and the number of shares used in the calculation of basic and diluted earnings per common share shown on the consolidated statements of income.

 

 

For the Years Ended December 31,

 

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

 

2023

 

 

2022

 

 

2021

 

Net income

 

$

33,401

 

 

$

18,659

 

 

$

11,424

 

Less dividends declared, Preferred Series A stock

 

 

4,736

 

 

 

1,418

 

 

 

—

 

Net income available to common shareholders

 

$

28,665

 

 

$

17,241

 

 

$

11,424

 

Weighted-average shares outstanding for basic earnings per common share

 

 

13,583,553

 

 

 

13,465,196

 

 

 

7,874,110

 

Dilutive effect of stock compensation

 

 

209,894

 

 

 

289,414

 

 

 

264,714

 

Dilutive effect of Preferred Series A stock

 

 

3,084,444

 

 

 

—

 

 

 

—

 

Weighted-average shares outstanding for diluted earnings per common share

 

 

16,877,891

 

 

 

13,754,610

 

 

 

8,138,824

 

Basic earnings per share

 

$

2.11

 

 

$

1.28

 

 

$

1.45

 

Diluted earnings per share

 

$

1.98

 

 

$

1.25

 

 

$

1.40

 
v3.24.0.1
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
17.
Derivative Financial Instruments

Cash Flow Hedges

As part of its hedging strategy, the Company entered into two five-year pay-fixed interest rate swap agreements during December 2023. The instruments have notional amounts of $100 million each with pay-fixed interest rates of 3.718% and 3.473%, respectively. The instruments are designated as cash flow hedges, and changes in fair value are recognized in other comprehensive income. The facilities are scheduled to mature on December 6, 2028 and December 21, 2028, respectively.

During March 2023 and as part of its hedging strategy, the Company entered into a five-year pay-fixed interest rate swap agreement with a notional amount of $200 million. The facility, which was scheduled to mature on March 31, 2028, was discontinued on May 26, 2023, and a gain of $5.0 million was recognized by the Company. The gain is being accreted from other comprehensive income (loss), net of deferred taxes, into interest expense through the maturity date of the contract.

During July 2022 and as part of its hedging strategy, the Company entered into a five-year pay-fixed interest rate swap agreement with a notional amount of $200 million on its floating rate deposits. The facility, which was designated as a cash flow hedge, was discontinued on August 24, 2022, and a gain on the terminated hedge of $3.0 million was recognized by the Company. The gain is being accreted from other comprehensive income (loss), net of deferred taxes, into interest expense through the maturity date of the contract, or July 9, 2027.

On February 18, 2021, a $100.0 million pay-fixed interest rate swap facility designated as a cash flow hedge was discontinued and a gain on the terminated hedge of $945,000 was recognized by the Company. The gain is being accreted from other comprehensive income (loss), net of deferred taxes, into interest expense through the maturity date of the contract, or September 4, 2025.

For the years ended December 31, 2023, 2022 and 2021, approximately $1.7 million, $401,000 and $180,000, respectively, was reclassified out of accumulated other comprehensive income and recognized as a reduction of interest expense on discontinued hedges.

Fair Value Hedges

The Company offers certain interest rate swap products directly to its qualified commercial banking customers. These financial instruments are not designated as hedging instruments. The interest rate swap derivative positions relate to transactions in which the Company enters into an interest rate swap with a customer, while at the same time entering into an offsetting interest rate swap with another financial institution. An interest rate swap transaction allows customers to effectively convert a variable rate loan to a fixed rate. In connection with each swap, the Company agrees to pay interest on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount.

Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts are designed to offset each other and would not significantly impact the Company’s operating results except in certain situations where there is a significant deterioration in the customer’s credit worthiness or that of the counterparties. At December 31, 2023, no such deterioration was determined by management.

The Company also offers one-way interest rate swap products to its customers. Under this type of arrangement, the Company extends a conventional fixed-rate loan to the borrower and then subsequently hedges the interest rate risk of that loan by entering into a swap for its own balance sheet to convert the fixed-rate loan to a synthetic floating rate asset. These types of swaps lock in the Company's spread over its cost of funds for the life of the loan.

For some of its loan participation facilities, the Company enters into RPAs with other banks in order to hedge or share a portion of the risk of borrower default related to the interest rate swap on a participated loan.

All derivatives are carried at fair value in either derivative assets or derivative liabilities in the accompanying consolidated balance sheets. At December 31, 2023, the Company's derivative assets and liabilities each totaled $8.8 million and $10.7 million, respectively.

The following tables provide the outstanding notional balances and fair values of outstanding derivative positions at December 31, 2023 and 2022.

(Dollars in thousands)

 

Outstanding
Notional
 Balance

 

 

Asset
 Derivative
Fair Value

 

 

Liability
 Derivative
Fair Value

 

 

Pay
Rate (1)

 

Receive
Rate (1)

 

Remaining
Term (2)

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pay-fixed interest rate swap

 

$

200,000

 

 

$

—

 

 

$

1,541

 

 

3.60%

 

USD Fed
Funds-H.15

 

 

5.0

 

Total cash flow hedges

 

 

200,000

 

 

 

—

 

 

 

1,541

 

 

 

 

 

 

 

 

Fair value hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk participation agreements purchased

 

$

13,935

 

 

$

—

 

 

$

20

 

 

—

 

5.80%

 

 

2.5

 

Risk participation agreements sold

 

 

54,383

 

 

 

6

 

 

 

—

 

 

—

 

5.06%

 

 

3.9

 

Commercial loan one-way interest rate swaps

 

 

32,477

 

 

 

48

 

 

 

352

 

 

7.02%

 

—

 

 

3.1

 

Commercial loan pass-through interest rate swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan customer counterparty

 

 

216,766

 

 

 

2,327

 

 

 

6,447

 

 

—

 

5.86%

 

 

3.7

 

Financial institution counterparty

 

 

216,766

 

 

 

6,447

 

 

 

2,327

 

 

5.86%

 

—

 

 

3.7

 

Total fair value hedges

 

 

534,327

 

 

 

8,828

 

 

 

9,146

 

 

 

 

 

 

 

 

Total derivatives

 

$

734,327

 

 

$

8,828

 

 

$

10,687

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Outstanding
Notional
 Balance

 

 

Asset
 Derivative
Fair Value

 

 

Liability
 Derivative
Fair Value

 

 

Pay
Rate (1)

 

Receive
Rate (1)

 

Remaining
Term (2)

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk participation agreements purchased

 

$

10,621

 

 

$

—

 

 

$

—

 

 

—

 

4.87%

 

 

2.2

 

Risk participation agreements sold

 

 

29,360

 

 

 

—

 

 

 

8

 

 

—

 

5.54%

 

 

4.2

 

Commercial loan pass-through interest rate swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan customer counterparty

 

 

147,560

 

 

 

—

 

 

 

9,213

 

 

—

 

4.77%

 

 

4.5

 

Financial institution counterparty

 

 

147,560

 

 

 

9,213

 

 

 

—

 

 

4.77%

 

—

 

 

4.5

 

Total fair value hedges

 

 

335,101

 

 

 

9,213

 

 

 

9,221

 

 

 

 

 

 

 

 

Total derivatives

 

$

335,101

 

 

$

9,213

 

 

$

9,221

 

 

 

 

 

 

 

 

 

(1) Weighted average rate.

(2) Weighted average life (in years).
v3.24.0.1
Core Deposit Intangibles, Net
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Core Deposit Intangibles, Net
18.
Core Deposit Intangibles, Net

Amortization expense of the core deposit intangible (“CDI”) was approximately $162,000 for each of the years ended December 31, 2023, 2022 and 2021. The remaining weighted average life is 6 years at December 31, 2023.

Scheduled amortization of CDI at December 31, 2023 are as follows:

(Dollars in thousands)

 

CDI
Amortization

 

2024

 

$

162

 

2025

 

 

162

 

2026

 

 

162

 

2027

 

 

162

 

2028 and thereafter

 

 

321

 

 

 

$

969

 
v3.24.0.1
Contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Contingencies

19. Contingencies

Litigation

In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, all liability resulting from such proceedings is not considered material and has been accounted for in the consolidated financial statements.
v3.24.0.1
Parent Company Financial Statements
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Parent Company Financial Statements
20.
Parent Company Financial Statements

The following balance sheets, statements of income and statements of cash flows for Third Coast Bancshares, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto.

Condensed Balance Sheets of the Company (Parent company only) for the periods presented are as follows:

(Dollars in thousands)

 

December 31,

 

ASSETS

 

2023

 

 

2022

 

Cash and cash equivalents

 

$

1,890

 

 

$

8,752

 

Investment in subsidiary

 

 

525,127

 

 

 

482,933

 

Other assets

 

 

6,988

 

 

 

3,795

 

Total assets

 

$

534,005

 

 

$

495,480

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Other borrowings

 

$

119,428

 

 

$

111,223

 

Other liabilities

 

 

2,603

 

 

 

2,477

 

Total liabilities

 

 

122,031

 

 

 

113,700

 

Shareholders' equity:

 

 

 

 

 

 

Series A Convertible Non-Cumulative Preferred Stock

 

 

69

 

 

 

69

 

Series B Convertible Perpetual Preferred Stock

 

 

—

 

 

 

—

 

Common stock

 

 

13,683

 

 

 

13,610

 

Common stock - non-voting

 

 

—

 

 

 

—

 

Additional paid-in capital

 

 

319,613

 

 

 

318,033

 

Retained earnings

 

 

78,775

 

 

 

53,270

 

Accumulated other comprehensive income (loss)

 

 

933

 

 

 

(2,103

)

Treasury stock: at cost

 

 

(1,099

)

 

 

(1,099

)

Total shareholders' equity

 

 

411,974

 

 

 

381,780

 

Total liabilities & shareholders' equity

 

$

534,005

 

 

$

495,480

 

 

Condensed Statements of Income and Comprehensive Income of the Company (Parent company only) for the periods are as follows:

 

 

For the Years Ended December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Interest expense:

 

 

 

 

 

 

 

 

 

Interest on notes payable

 

$

7,657

 

 

$

4,605

 

 

$

1,091

 

Total interest expense

 

 

7,657

 

 

 

4,605

 

 

 

1,091

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Legal and professional

 

 

760

 

 

 

302

 

 

 

680

 

Other

 

 

836

 

 

 

230

 

 

 

23

 

Total noninterest expense

 

 

1,596

 

 

 

532

 

 

 

703

 

Loss before income tax expense and equity in undistributed earnings of subsidiaries

 

 

(9,253

)

 

 

(5,137

)

 

 

(1,794

)

Income tax benefit

 

 

1,943

 

 

 

1,087

 

 

 

359

 

Loss before equity in undistributed earnings of subsidiaries

 

 

(7,310

)

 

 

(4,050

)

 

 

(1,435

)

Equity in undistributed earnings of subsidiaries

 

 

40,711

 

 

 

22,709

 

 

 

12,859

 

Net income

 

$

33,401

 

 

$

18,659

 

 

$

11,424

 

Comprehensive income

 

$

36,437

 

 

$

15,163

 

 

$

12,538

 

Condensed Statements of Cash Flows of the Company (Parent company only) for the periods presented are as follows:

 

 

For the Years Ended December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

33,401

 

 

$

18,659

 

 

$

11,424

 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

Equity in undistributed net income of subsidiaries

 

 

(40,711

)

 

 

(22,709

)

 

 

(12,859

)

Amortization of subordinated debt issuance costs

 

 

205

 

 

 

154

 

 

 

—

 

Net change in other assets

 

 

(3,193

)

 

 

(1,938

)

 

 

(359

)

Net change in other liabilities

 

 

125

 

 

 

1,278

 

 

 

(150

)

Net cash used in operating activities

 

 

(10,173

)

 

 

(4,556

)

 

 

(1,944

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Capital investment in subsidiaries

 

 

—

 

 

 

(173,000

)

 

 

(125,800

)

Net cash used in investing activities

 

 

—

 

 

 

(173,000

)

 

 

(125,800

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Repayment of subordinated notes payable - related party

 

 

—

 

 

 

—

 

 

 

(13,000

)

Proceeds from (repayment of) line of credit - senior debt

 

 

8,000

 

 

 

29,875

 

 

 

(19,875

)

Net proceeds from subordinated debt issuance

 

 

—

 

 

 

80,194

 

 

 

—

 

Net proceeds from issuance of preferred stock

 

 

—

 

 

 

66,225

 

 

 

—

 

Net proceeds from issuance of common stock

 

 

—

 

 

 

856

 

 

 

163,199

 

Dividends paid on Series A preferred stock

 

 

(4,736

)

 

 

(221

)

 

 

—

 

Proceeds from stock warrants exercised

 

 

47

 

 

 

—

 

 

 

19

 

Proceeds from stock options exercised

 

 

—

 

 

 

672

 

 

 

995

 

Net redemption of treasury stock

 

 

—

 

 

 

—

 

 

 

(121

)

Net cash provided by financing activities

 

 

3,311

 

 

 

177,601

 

 

 

131,217

 

Change in cash and cash equivalents

 

 

(6,862

)

 

 

45

 

 

 

3,473

 

Cash and cash equivalents at beginning of period

 

 

8,752

 

 

 

8,707

 

 

 

5,234

 

Cash and cash equivalents at end of period

 

$

1,890

 

 

$

8,752

 

 

$

8,707

 
v3.24.0.1
Quarterly Financial Data (UNAUDITED)
 12 Months Ended
Dec. 31, 2023
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Data (UNAUDITED)
21.
Quarterly Financial Data (UNAUDITED)

The summary quarterly financial information set forth below for each of the last eight quarters has been derived from the Company's unaudited interim consolidated financial statements and other financial information. The summary historical quarterly financial information includes all adjustments consisting of normal recurring accruals that the Company considers necessary for a fair presentation of the financial position and the results of operations for the periods.

The information below is only a summary and should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated historical financial statements and the related notes thereto included in this Annual Report on Form 10-K.

 

 

For the Quarters Ended December 31, 2023

 

(Dollars in thousands)

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Selected income statement data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

77,067

 

 

$

69,385

 

 

$

62,713

 

 

$

57,379

 

Interest expense

 

 

39,736

 

 

 

34,117

 

 

 

28,617

 

 

 

24,549

 

Net interest income

 

 

37,331

 

 

 

35,268

 

 

 

34,096

 

 

 

32,830

 

Provision for credit losses

 

 

1,100

 

 

 

2,620

 

 

 

1,400

 

 

 

1,200

 

Net interest income after provision for credit losses

 

 

36,231

 

 

 

32,648

 

 

 

32,696

 

 

 

31,630

 

Noninterest income

 

 

2,157

 

 

 

1,866

 

 

 

2,280

 

 

 

1,902

 

Noninterest expense

 

 

26,414

 

 

 

27,505

 

 

 

23,835

 

 

 

22,044

 

Income before income tax expense

 

 

11,974

 

 

 

7,009

 

 

 

11,141

 

 

 

11,488

 

Income tax expense

 

 

2,285

 

 

 

1,431

 

 

 

2,250

 

 

 

2,245

 

Net income

 

$

9,689

 

 

$

5,578

 

 

$

8,891

 

 

$

9,243

 

 

 

 

For the Quarters Ended December 31, 2022

 

(Dollars in thousands)

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Selected income statement data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

51,151

 

 

$

43,102

 

 

$

32,509

 

 

$

27,184

 

Interest expense

 

 

19,000

 

 

 

11,747

 

 

 

4,771

 

 

 

1,974

 

Net interest income

 

 

32,151

 

 

 

31,355

 

 

 

27,738

 

 

 

25,210

 

Provision for credit losses

 

 

1,950

 

 

 

2,900

 

 

 

3,350

 

 

 

4,000

 

Net interest income after provision for credit losses

 

 

30,201

 

 

 

28,455

 

 

 

24,388

 

 

 

21,210

 

Noninterest income

 

 

1,753

 

 

 

2,538

 

 

 

1,266

 

 

 

1,666

 

Noninterest expense

 

 

22,627

 

 

 

22,728

 

 

 

22,773

 

 

 

20,181

 

Income before income tax expense

 

 

9,327

 

 

 

8,265

 

 

 

2,881

 

 

 

2,695

 

Income tax expense

 

 

1,802

 

 

 

1,495

 

 

 

604

 

 

 

608

 

Net income

 

$

7,525

 

 

$

6,770

 

 

$

2,277

 

 

$

2,087

 
v3.24.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
Subsequent Events

22. Subsequent Events

Conversion to State Bank

On October 26, 2023, the Bank was notified that the Federal Reserve Bank of Dallas granted approval of our application to convert to a state bank under the name of Third Coast Bank. On January 11, 2024, the Bank was notified that the Texas Department of Banking and the Texas Department of Savings and Mortgage Lending had approved the conversion. The effective date of the conversion is expected to be March 13, 2024.

v3.24.0.1
Nature of Operations and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Nature of Operations

Nature of Operations

Third Coast Bancshares, Inc. (“Bancshares”), through its subsidiary, Third Coast Bank, SSB, a Texas state savings bank (the “Bank”), and the Bank’s subsidiary, Third Coast Commercial Capital, Inc. (“TCCC”), (collectively known as the “Company,” “we,” “us” or “our”), provide general consumer and commercial banking services through 16 branch offices located in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets. Branch locations include: Humble, Kingwood, Beaumont, Port Arthur, Houston-Galleria, Conroe, Pearland, Lake Jackson, Dallas, Fort Worth, Plano, Detroit, La Vernia, Nixon, Georgetown and San Antonio. The Bank is engaged in traditional community banking activities, which include commercial and retail lending, deposit gathering, and investment and liquidity management activities. The Bank’s primary deposit products are demand deposits, money market accounts and certificates of deposit; its primary lending products are commercial business and real estate, residential construction, real estate mortgage and consumer loans. TCCC engages in accounts receivable factoring activities. The Company is subject to the regulations of certain government agencies and undergoes periodic examinations by those regulatory authorities.
Basis of Presentation

Basis of Presentation

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), reporting practices prescribed by the financial services industry, and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments that were recurring in nature and considered necessary have been included for fair presentation of the Company’s financial position and results of operations.

The accompanying consolidated financial statements include the accounts of Bancshares, the Bank, and TCCC. All significant intercompany transactions and balances have been eliminated in consolidation.

The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the consolidated financial statements were issued.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and of the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Material estimates that are included in the financial statements include the allowance for credit losses, the valuation of goodwill and other intangible assets and the fair value of financial instruments.
Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash, deposits with other financial institutions that have initial maturities of less than 90 days when acquired by the Company and federal funds sold.
Investment Securities Available For Sale

Investment Securities Available-For-Sale

Investment securities available-for-sale consist of bonds, notes, and debentures that are not classified as trading securities or held-to-maturity securities. Investment securities available-for-sale are held for indefinite periods of time and carried at fair value, with the unrealized holding gains and losses reported as a component of other comprehensive income (loss), net of tax. Management determines the appropriate classification of investment securities at the time of purchase.
Loans

Loans

Loans are stated at the amount of unpaid principal, reduced by unearned income and an allowance for credit losses (“ACL”). Interest on loans is recognized using the effective interest method and includes amortization of deferred loan origination fees and costs over the life of the loans.

The accrual of interest on loans is discontinued when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. A loan is placed back on accrual status when both principal and interest are current and it is probable that the Company will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement.

From time to time, the Company modifies its loan agreement with a borrower. The loan refinancing and restructuring guidance is considered for each loan modified to determine whether a modification results in a new loan or a continuation of an existing loan. In

some cases, the loan may be considered restructured if the borrower is experiencing financial difficulties and the loan has been modified. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension or a combination thereof, among other things.

The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, non-performing, and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees.

Real estate loans are also subject to underwriting standards and processes similar to commercial and agricultural loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location primarily throughout the Greater Houston, Dallas, and Austin-San Antonio metropolitan areas. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. Generally, real estate loans are owner occupied which further reduces the Company’s risk.

Agricultural loans are subject to underwriting standards and processes similar to commercial loans. Agricultural loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most agricultural loans are secured by the agriculture related assets being financed, such as farmland, cattle, or equipment, and include personal guarantees.

The Company utilizes methodical credit standards and analysis to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk.
Allowance for Credit Losses

Allowance for Credit Losses

As further discussed below, we adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” on January 1, 2023. Accounting Standards Codification (“ASC”) Topic 326 (“ASC 326”) replaced the previous “incurred loss” model for measuring credit losses, which encompassed allowances for current known and inherent losses within the portfolio, with an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. The new current expected credit loss (“CECL”) model requires the measurement of all expected credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures based on historical experience, current conditions, and reasonable and supportable forecasts. In connection with the adoption of ASC 326, we revised certain accounting policies and implemented certain accounting policy elections. The revised accounting policies are described below.

Allowance For Credit Losses - Available-for-Sale Securities: For available-for-sale securities in an unrealized loss position, we first assess whether (i) we intend to sell or (ii) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either case is affirmative, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither case is affirmative, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any 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 is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, 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. Adjustments to the allowance are reported in our income statement as a component of provision for credit loss expense. Management has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance,

written down through income when deemed uncollectible by management or when either of the aforementioned criteria regarding intent or requirement to sell is met. Further information regarding our policies and methodology used to estimate the allowance for credit losses on available-for-sale securities is presented in Note 2 – Investment Securities Available-for-Sale.

Prior to the adoption of ASU 2016-13, declines in the fair value of available-for-sale securities below their cost that were deemed to be other than temporary were reflected in earnings as realized losses. In estimating other-than-temporary impairment losses prior to January 1, 2023, management considered, among other things, (i) the length of time and the extent to which the fair value had been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Allowance for Credit Losses - Loans: The allowance for credit losses on loans is a contra-asset valuation account, calculated in accordance with ASC 326, that is deducted from the amortized cost basis of loans to present management's best estimate of the net amount expected to be collected. Loans are charged-off against the allowance when deemed uncollectible by management. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Adjustments to the allowance are reported in our income statement as a component of provision for credit loss expense. Management has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. Further information regarding our policies and methodology used to estimate the allowance for credit losses on loans is presented in Note 3 – Loans and Allowance for Credit Losses.

Allowance For Credit Losses - Off-Balance Sheet Credit Exposures: The allowance for credit losses on off-balance sheet credit exposures is a liability account, calculated in accordance with ASC 326, representing expected credit losses over the contractual period for which we are exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if we have the unconditional right to cancel the obligation. The allowance is reported as a component of other liabilities in our consolidated balance sheets. Adjustments to the allowance are reported in our income statement as a component of provision for credit loss expense. Further information regarding our policies and methodology used to estimate the allowance for credit losses on off-balance sheet credit exposures is presented in Note 10 – Financial Instruments with Off-Balance Sheet Risk.
Servicing Assets

Servicing Assets

Certain Small Business Administration (“SBA”) loans are originated and intended for sale in the secondary market. They are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains or losses recognized upon the sale of loans are determined on a specific identification basis and are included in non-interest income. SBA loan transfers are accounted for as sales when control over the loan has been surrendered. Control over such loans is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) 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 (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

The Company applies guidance issued by the FASB that clarifies the accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities, in which, after a transfer of financial assets, an entity recognizes the financial and servicing assets it controls and liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. To calculate the gain or loss on sale of loans, the Company’s investment in the loan is allocated among the retained portion of the loan, the servicing retained, the interest-only strip and the sold portion of the loan, based on the relative fair value of each portion. The gain or loss on the sold portion of the loan is recognized based on the difference between the sale proceeds and the allocated investment. As a result of the relative fair value allocation, the carrying value of the retained portion is discounted, with the discount accreted to interest income over the life of the loan.

Servicing assets are amortized over an estimated life using a method that is in proportion to the estimated future servicing income. In the event future prepayments exceed management’s estimates and future cash flows are inadequate to cover the servicing asset, additional amortization would be recognized. The portion of servicing fees in excess of the contracted servicing fees is reflected as interest-only strips receivable, which are classified as available for sale and are carried at fair value. At December 31, 2023 and 2022, the Company was servicing loans previously sold of approximately $4.8 million and $8.3 million, respectively. The related servicing assets receivable were not material to the consolidated financial statements at December 31, 2023 and 2022.
Premises and Equipment

Premises and Equipment

Buildings, leasehold improvements, furniture and fixtures, and equipment are carried at cost, less accumulated depreciation, computed principally by the straight-line method based on the estimated useful lives of the related asset. Land is not depreciated. Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in income as incurred. A small portion of building floor space is currently leased out to tenants and recognized in income when earned.
Operating Leases

Operating Leases

The Company leases certain office space and stand-alone buildings and equipment which are recognized as operating lease right-of-use assets and operating lease liabilities in the consolidated balance sheets. Lease liabilities represent the Company's liability to make lease payments under these leases on a discounted basis and are amortized on a straight-line basis over the lease term for each related lease agreement. Right-of-use assets represent the Company's right to use, or control the use of, leased assets for their lease term and are amortized over the lease term of the related lease agreement. See further discussion of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) below. The Company does not recognize short-term operating leases on the consolidated balance sheets. A short-term lease has a term of 12 months or less and does not have a purchase option that is likely to be exercised.
Other Real Estate Owned

Other Real Estate Owned

Other real estate owned represents properties acquired through or in lieu of loan foreclosure and are initially recorded at fair value less estimated costs to sell. Any write-down to fair value at the time of transfer to other real estate owned is charged to the allowance for credit losses. Costs of improvements are capitalized, whereas costs relating to holding other real estate owned and subsequent adjustments to the value are expensed. Operating and holding expenses of such properties, net of related income, are included in loan operations and other real estate owned expense on the accompanying consolidated statements of income. Gains or losses on dispositions are reflected in income as incurred. At December 31, 2023 and 2022, the Company had no other real estate owned.
Bank Owned Life Insurance

Bank-Owned Life Insurance

The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (“BOLI”) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are reported in the accompanying consolidated statements of income.
Non-Marketable Securities

Non-Marketable Securities

The Company has restricted non-marketable securities which represent investment in Federal Home Loan Bank (“FHLB”) stock, Federal Reserve Bank (“FRB”) stock and Texas Independent Bank (“TIB”) stock. These investments are not readily marketable and are carried at cost, which approximates fair value. As a member of the FHLB, FRB and TIB systems, the Company is required to maintain minimum level of investments in stock, based on the level of borrowings and other factors. Both cash and stock dividends are reported as income.
Goodwill and Core Deposit Intangibles

Goodwill and Core Deposit Intangibles

Goodwill represents the excess of cost over fair value of net assets acquired in a business combination. Goodwill is not amortized and is evaluated for impairment at least annually and on an interim basis if an event triggering impairment may have occurred.

Core deposit intangibles are acquired customer relationships arising from bank acquisitions and are amortized on a straight-line basis over their estimated useful life of ten years. Core deposit intangibles are tested for impairment whenever events or changes in circumstances indicate the carrying amount of assets may not be recoverable from future undiscounted cash flows.
Derivative Financial Instruments

Derivative Financial Instruments

Derivatives are recorded on our consolidated balance sheets as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of the derivatives and whether the derivatives qualify for hedge accounting. At inception of the derivative, we designate the derivative as one of two types based on our intention and belief as to the likely effectiveness as a hedge. These two types are (1) a hedge of the fair value of a recognized asset or liability (“Fair Value Hedge”), and (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“Cash Flow Hedge”).

For certain Fair Value Hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in noninterest income or expense in our consolidated statements of income. Fair Value Hedge instruments offered by the Company which are included in noninterest income or expense include pass-through interest rate swap products to qualified commercial banking customers. Under this type of contract, the Company enters into an interest rate swap contract with a customer, while at the same time entering into an offsetting interest rate swap contract with a financial institution counterparty. Changes in the fair value of the underlying derivatives are designed to offset each other so they would not significantly impact the Company's operating results.

The Company also enters into Risk Participation Agreements (“RPAs”) with other banks, primarily to share a portion of the risk of borrower default related to the interest rate swap on certain participated loans. Gains or losses on these types of derivatives are also included in noninterest income in our consolidated statements of income.

A one-way interest rate swap is another type of Fair Value Hedge instrument offered to our customers. Under this type of arrangement, the Company extends a conventional fixed-rate loan to the borrower and then subsequently hedges the interest rate risk of that loan by entering into a swap for its own balance sheet to convert the fixed-rate loan to a synthetic floating rate asset. These types of swaps lock

in the Company's spread over its cost of funds for the life of the loan. The gain or loss on this type of derivative is included in interest income in our consolidated statements of income.

For a Cash Flow Hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Cash Flow Hedge instruments include pay-fixed interest rate swap agreements with a financial institution counterparty.

Net cash settlements on cash flow hedges are recorded in interest expense in the consolidated statements of income. Net cash settlements on one-way swap derivatives are recorded in interest income in the consolidated statements of income. Net cash settlements on pass-through interest rate swaps and RPAs are reported in noninterest income in the consolidated statements of income. Cash flows on hedges are classified in the cash flow statement the same as the items being hedged.

When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains and/or losses accumulated in other comprehensive income are amortized into earnings over the same period which the hedged transaction will affect earnings.

We formally document the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking Cash Flow Hedges to specific assets and liabilities on the Consolidated Statements of Financial Condition or to forecasted transactions. See Note 17 – Derivative Financial Instruments.

Business Combinations

Business Combinations

The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Adjustments identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. Acquisition related costs are expensed as incurred.
Comprehensive Income

Comprehensive Income

Comprehensive income includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Other than net income, comprehensive income includes the net effect of changes in the fair value of securities available-for-sale and certain derivative instruments designated as cash flow hedges.
Revenue from Contract with Customers

Revenues from Contracts with Customers

The Company’s revenues from services such as deposit related fees, wire transfer fees, interchange fees on debit cards, ATM fees, and merchant fee income are presented within the service charges and fees category in the accompanying consolidated statements of income and are recognized as revenue as the Company satisfies its obligation to the customer.

Advertising and Marketing Expenses

Advertising and Marketing Expenses

Advertising and marketing expenses consist of the Company’s advertising in its local market area and are expensed as incurred. For the years ended December 31, 2023, 2022 and 2021, advertising and marketing expenses were $2.6 million, $1.9 million and $1.9 million, respectively, and are included within noninterest expense in the accompanying consolidated statements of income.
Income Taxes

Income Taxes

The Company files a consolidated income tax return with its subsidiary. Federal income tax expense or benefit is allocated on a separate return basis.

Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
Share-Based Compensation

Share-Based Compensation

Compensation expense for stock options is based on the fair value of the award on the measurement date, which, for the Company, is the date of the grant and is recognized ratably over the service period of the award. The fair value of stock options is estimated using the Black-Scholes option-pricing model.
Basic and Diluted Earnings Per Common Share

Basic and Diluted Earnings Per Common Share

Earnings per common share is computed in accordance with ASC Topic 260, “Earnings Per Share.” Basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per common share is computed by using the net earnings allocated to common stock plus dividends on dilutive convertible preferred stock, divided by the sum of 1) the weighted-average number of shares determined for the basic earnings per common share computation, 2) the dilutive effect of stock compensation using the treasury stock method, and 3) the dilutive effect of convertible preferred stock using the if-converted method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 16 – Earnings Per Common Share.

Reclassification

Reclassification

Certain amounts in prior period consolidated financial statements may have been reclassified to conform to current period presentation. These reclassifications are immaterial and have no effect on net income, total assets or shareholders’ equity.
Recently Adopted and Issued Accounting Standards

Recently Adopted Accounting Standards: ASU 2016-02 - Leases

The Company adopted ASU 2016-02 - “Leases” (Topic 842) on January 1, 2022 using the effective date as the date of initial adoption. The Company elected to apply certain practical expedients for transition, and under those expedients the Company did not reassess prior accounting decisions regarding the identification, classification and initial direct costs of leases existing at the effective date. The Company also elected to use hindsight in determining the lease term when considering options to extend the lease and excluded short-term leases (defined as lease terms of 12 months or less). The Company elected to separate non-lease components from lease components in its application of ASU 2016-02. At adoption, the Company recorded right-of-use assets totaling $11.0 million, which represented the Company's right to use, or control the use of, specified assets for their lease terms, and the Company recorded lease liabilities totaling $10.9 million, which represented the Company's liability to make lease payments under these leases. The ASU 2016-02 standard applied to all leases existing at the date of initial adoption. The Company's financial statements and related footnotes were not updated for ASU 2016-02 for dates and periods before the date of adoption. See Note 9 – Leases.

Recently Adopted Accounting Standards: ASU 2016-13 - Current Expected Credit Losses

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 is effective for fiscal years beginning after December 15, 2022. ASU 2016-13 is intended to replace the incurred loss model for loans and other financial assets with an expected loss model, which is known as the current expected credit loss, or CECL, model. The change is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. 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 debt securities. It also applies to off-balance sheet credit exposures such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments. ASC 326 also made changes to the accounting for available-for-sale debt securities, specifically requiring credit losses for available-for-sale debt securities to be presented as an allowance rather than a write-down on available-for-sale debt securities.

The Company adopted ASC 326 using the modified retrospective method for financial instruments measured at amortized cost and off-balance sheet credit exposure which requires reporting periods beginning after January 1, 2023 to be presented under ASC 326 guidance while prior period amounts continue to be reported in accordance with previously applicable inherent risk methodology. Effective January 1, 2023, the Company adopted the standard and recorded an increase in the allowance for credit losses of $4.0 million and a net after-tax adjustment to retained earnings of $3.2 million for the cumulative effect of adopting ASC 326 for its loan portfolio.

The following table illustrates the impact of ASC 326 on the allowance for credit losses by loan category at the January 1, 2023 adoption date:

 

 

January 1, 2023

 

(Dollars in thousands)

 

Post-ASC 326 Adoption

 

 

Pre-ASC 326 Adoption

 

 

Impact of ASC 326 Adoption

 

Real estate loans:

 

 

 

 

 

 

 

 

 

   Non-farm non-residential owner occupied

 

$

5,097

 

 

$

3,773

 

 

$

1,324

 

   Non-farm non-residential non-owner occupied

 

 

8,351

 

 

 

5,741

 

 

 

2,610

 

   Residential

 

 

2,060

 

 

 

1,064

 

 

 

996

 

   Construction, development & other

 

 

4,661

 

 

 

3,053

 

 

 

1,608

 

   Farmland

 

 

94

 

 

 

82

 

 

 

12

 

Commercial & industrial

 

 

13,366

 

 

 

16,269

 

 

 

(2,903

)

Consumer

 

 

10

 

 

 

6

 

 

 

4

 

Municipal and other

 

 

712

 

 

 

363

 

 

 

349

 

 

 

$

34,351

 

 

$

30,351

 

 

$

4,000

 

Recently Adopted Accounting Standards: ASU 2022-02 - Troubled Debt Restructurings and Vintage Disclosures

The Company adopted ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” on January 1, 2023. The amendments in this update eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors in Subtopic 310-40, “Receivables-Troubled Debt Restructurings by Creditors,” while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan.

The amendments of this update also require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments-Credit Losses-Measured at Amortized Cost.” Gross write-off information must be included in the vintage disclosures and include the amortized cost basis of the financing receivable by credit-quality indicator and the class of the financing receivable by year or origination. See Note 3 - Loans and Allowance for Credit Losses for the vintage disclosures.

Recently Issued Accounting Standards - Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 720), Improvements to Income Tax Disclosures." ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions.
v3.24.0.1
Nature of Operations and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Schedule of Impact of ASC 326 on Allowance for Credit Losses by Loan Category

The following table illustrates the impact of ASC 326 on the allowance for credit losses by loan category at the January 1, 2023 adoption date:

 

 

January 1, 2023

 

(Dollars in thousands)

 

Post-ASC 326 Adoption

 

 

Pre-ASC 326 Adoption

 

 

Impact of ASC 326 Adoption

 

Real estate loans:

 

 

 

 

 

 

 

 

 

   Non-farm non-residential owner occupied

 

$

5,097

 

 

$

3,773

 

 

$

1,324

 

   Non-farm non-residential non-owner occupied

 

 

8,351

 

 

 

5,741

 

 

 

2,610

 

   Residential

 

 

2,060

 

 

 

1,064

 

 

 

996

 

   Construction, development & other

 

 

4,661

 

 

 

3,053

 

 

 

1,608

 

   Farmland

 

 

94

 

 

 

82

 

 

 

12

 

Commercial & industrial

 

 

13,366

 

 

 

16,269

 

 

 

(2,903

)

Consumer

 

 

10

 

 

 

6

 

 

 

4

 

Municipal and other

 

 

712

 

 

 

363

 

 

 

349

 

 

 

$

34,351

 

 

$

30,351

 

 

$

4,000

 
v3.24.0.1
Investment Securities Available for Sale (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Carrying Amount and Fair Values of Investment Securities Available For Sale

The carrying amount of securities and their approximate fair values as of December 31, 2023 and 2022 are as follows:

 

 

December 31, 2023

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
 Losses

 

 

Estimated
Fair Value

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

4,017

 

 

$

—

 

 

$

26

 

 

$

3,991

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

77,703

 

 

 

1,599

 

 

 

769

 

 

 

78,533

 

Corporate bonds

 

 

100,371

 

 

 

861

 

 

 

5,669

 

 

 

95,563

 

 

$

182,091

 

 

$

2,460

 

 

$

6,464

 

 

$

178,087

 

 

 

 

December 31, 2022

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
 Losses

 

 

Estimated
Fair Value

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal securities

 

$

422

 

 

$

—

 

 

$

5

 

 

$

417

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

23,522

 

 

 

238

 

 

 

879

 

 

 

22,881

 

U.S. Treasury bonds

 

 

100,567

 

 

 

—

 

 

 

2,049

 

 

 

98,518

 

Corporate bonds

 

 

57,607

 

 

 

59

 

 

 

3,415

 

 

 

54,251

 

 

$

182,118

 

 

$

297

 

 

$

6,348

 

 

$

176,067

 
Schedule of Amortized Cost and Fair Value of Securities by Contractual Maturity

The amortized cost and estimated fair value of securities available for sale at December 31, 2023, by contractual maturity, are shown below.

 

 

December 31, 2023

 

 

 

Investment Securities
Available-for-Sale

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Estimated
Fair Value

 

Due in one year or less

 

$

2,905

 

 

$

2,937

 

Due from one year to five years

 

 

9,340

 

 

 

9,547

 

Due from five to ten years

 

 

83,068

 

 

 

77,960

 

Over ten years

 

 

9,075

 

 

 

9,110

 

 

 

104,388

 

 

 

99,554

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

77,703

 

 

 

78,533

 

 

$

182,091

 

 

$

178,087

 

 
Summary of Securities with Unrealized Losses

The following table summarizes securities with unrealized losses at December 31, 2023 and 2022, aggregated by major security type and length of time in a continuous unrealized loss position:

 

 

December 31, 2023

 

(Dollars in thousands)

 

Less Than 12
Months in a
Loss Position

 

 

Greater Than 12
Months in a
 Loss Position

 

 

Total
Unrealized
Loss

 

 

Estimated
Fair Value

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

26

 

 

$

—

 

 

$

26

 

 

$

3,991

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

—

 

 

 

769

 

 

 

769

 

 

 

16,001

 

Corporate bonds

 

 

128

 

 

 

5,541

 

 

 

5,669

 

 

 

64,143

 

 

$

154

 

 

$

6,310

 

 

$

6,464

 

 

$

84,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

(Dollars in thousands)

 

Less Than 12
Months in a
Loss Position

 

 

Greater Than 12
Months in a
 Loss Position

 

 

Total
Unrealized
Loss

 

 

Estimated
Fair Value

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal securities

 

$

5

 

 

$

—

 

 

$

5

 

 

$

417

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

879

 

 

 

—

 

 

 

879

 

 

 

18,376

 

U.S. Treasury bonds

 

 

2,049

 

 

 

—

 

 

 

2,049

 

 

 

98,518

 

Corporate bonds

 

 

3,415

 

 

 

—

 

 

 

3,415

 

 

 

50,413

 

 

$

6,348

 

 

$

—

 

 

$

6,348

 

 

$

167,724

 
v3.24.0.1
Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Amounts Recognized in Balance Sheet

Loans in the accompanying consolidated balance sheets consisted of the following:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

Real estate loans:

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

520,822

 

 

$

493,791

 

Non-farm non-residential non-owner occupied

 

 

586,626

 

 

 

506,012

 

Residential

 

 

342,589

 

 

 

308,775

 

Construction, development & other

 

 

693,553

 

 

 

567,851

 

Farmland

 

 

30,396

 

 

 

22,820

 

Commercial & industrial

 

 

1,263,077

 

 

 

1,058,910

 

Consumer

 

 

2,555

 

 

 

3,872

 

Municipal and other

 

 

199,170

 

 

 

145,520

 

 

 

3,638,788

 

 

 

3,107,551

 

Allowance for credit losses

 

 

(37,022

)

 

 

(30,351

)

Loans, net

 

$

3,601,766

 

 

$

3,077,200

 
Schedule of Non-accrual and Accruing Past Due Loans, Segregated by Class of Loans

Non-accrual loans and accruing loans past due more than 90 days segregated by class of loans were as follows:

 

 

December 31,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Non-accrual

 

 

Accruing loans
past due more
than 90 days

 

 

Non-accrual

 

 

Accruing loans
past due more
than 90 days

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,211

 

 

$

—

 

 

$

1,699

 

 

$

157

 

Non-farm non-residential non-owner occupied

 

 

1,235

 

 

 

—

 

 

 

296

 

 

 

—

 

Residential

 

 

2,938

 

 

 

—

 

 

 

513

 

 

 

—

 

Construction, development & other

 

 

247

 

 

 

—

 

 

 

45

 

 

 

—

 

Commercial & industrial

 

 

11,018

 

 

 

670

 

 

 

8,390

 

 

 

361

 

Consumer

 

 

—

 

 

 

—

 

 

 

20

 

 

 

—

 

 

$

16,649

 

 

$

670

 

 

$

10,963

 

 

$

518

 

Of the non-accrual loans disclosed above, $8.8 million did not have an allowance for credit loss at December 31,2023.
Schedule of Aging Past Due Loans, Segregated by Class of Loans

An age analysis of past due loans, segregated by class of loans, were as follows:

 

 

December 31, 2023

 

(Dollars in thousands)

 

30-59
days

 

 

60-89
days

 

 

Over 90
days

 

 

Total
past due

 

 

Total
current

 

 

Total
loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

—

 

 

$

—

 

 

$

1,211

 

 

$

1,211

 

 

$

519,611

 

 

$

520,822

 

Non-farm non-residential
   non-owner occupied

 

 

—

 

 

 

212

 

 

 

1,235

 

 

 

1,447

 

 

 

585,179

 

 

 

586,626

 

Residential

 

 

312

 

 

 

495

 

 

 

2,938

 

 

 

3,745

 

 

 

338,844

 

 

 

342,589

 

Construction,
   development & other

 

 

428

 

 

 

177

 

 

 

247

 

 

 

852

 

 

 

692,701

 

 

 

693,553

 

Farmland

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

30,396

 

 

 

30,396

 

Commercial & industrial

 

 

4,467

 

 

 

659

 

 

 

11,688

 

 

 

16,814

 

 

 

1,246,263

 

 

 

1,263,077

 

Consumer

 

 

2

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

2,553

 

 

 

2,555

 

Municipal and other

 

 

88

 

 

 

—

 

 

 

—

 

 

 

88

 

 

 

199,082

 

 

 

199,170

 

 

$

5,297

 

 

$

1,543

 

 

$

17,319

 

 

$

24,159

 

 

$

3,614,629

 

 

$

3,638,788

 

 

 

 

December 31, 2022

 

(Dollars in thousands)

 

30-59
days

 

 

60-89
days

 

 

Over 90
days

 

 

Total
past due

 

 

Total
current

 

 

Total
loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

2,996

 

 

$

—

 

 

$

1,856

 

 

$

4,852

 

 

$

488,939

 

 

$

493,791

 

Non-farm non-residential
   non-owner occupied

 

 

132

 

 

 

—

 

 

 

296

 

 

 

428

 

 

 

505,584

 

 

 

506,012

 

Residential

 

 

2,356

 

 

 

—

 

 

 

513

 

 

 

2,869

 

 

 

305,906

 

 

 

308,775

 

Construction,
   development & other

 

 

130

 

 

 

—

 

 

 

45

 

 

 

175

 

 

 

567,676

 

 

 

567,851

 

Farmland

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,820

 

 

 

22,820

 

Commercial & industrial

 

 

791

 

 

 

613

 

 

 

8,751

 

 

 

10,155

 

 

 

1,048,755

 

 

 

1,058,910

 

Consumer

 

 

—

 

 

 

—

 

 

 

20

 

 

 

20

 

 

 

3,852

 

 

 

3,872

 

Municipal and other

 

 

162

 

 

 

—

 

 

 

—

 

 

 

162

 

 

 

145,358

 

 

 

145,520

 

 

$

6,567

 

 

$

613

 

 

$

11,481

 

 

$

18,661

 

 

$

3,088,890

 

 

$

3,107,551

 
Summary of Loans Modified for Borrowers Experiencing Financial Difficulty

The table below presents the amortized cost basis of loans at period end that were both experiencing financial difficulty and modified during the year ended December 31, 2023, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented.

 

 

December 31, 2023

 

 

 

Loan modifications

 

(Dollars in thousands)

 

Number
 of
 loans

 

 

Post-
restructured
recorded
investment

 

 

Principal forgiveness

 

 

Adjusted
interest
rate

 

 

Payment
deferral

 

 

Combined
rate and
payment
deferral

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

 

3

 

 

$

6,970

 

 

 

—

 

 

 

—

 

 

$

63

 

 

$

63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Schedule of Impaired Loans by Class of Loans

 

 

December 31, 2022

 

(Dollars in thousands)

 

Unpaid
contractual
principal
balance

 

 

Recorded
investment
with no
allowance

 

 

Recorded
investment
with
allowance

 

 

Total
recorded
investment

 

 

Related
allowance

 

 

Average
recorded
investment
during year

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

1,694

 

 

$

1,699

 

 

$

—

 

 

$

1,699

 

 

$

—

 

 

$

1,751

 

Non-farm non-residential
   non-owner occupied

 

 

5,497

 

 

 

5,496

 

 

 

—

 

 

 

5,496

 

 

 

—

 

 

 

5,563

 

Residential

 

 

516

 

 

 

513

 

 

 

—

 

 

 

513

 

 

 

—

 

 

 

524

 

Construction,
   development & other

 

 

40

 

 

 

40

 

 

 

—

 

 

 

40

 

 

 

—

 

 

 

51

 

Commercial & industrial

 

 

11,942

 

 

 

7,734

 

 

 

4,213

 

 

 

11,947

 

 

 

1,600

 

 

 

10,749

 

Consumer

 

 

19

 

 

 

20

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

21

 

 

$

19,708

 

 

$

15,502

 

 

$

4,213

 

 

$

19,715

 

 

$

1,600

 

 

$

18,659

 
Summary of Internal Ratings of Loans

The following tables summarize the Company’s internal ratings of its loans:

 

 

December 31, 2023

 

(Dollars in thousands)

 

Pass

 

 

Special
Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

510,811

 

 

$

5,517

 

 

$

4,494

 

 

$

—

 

 

$

520,822

 

Non-farm non-residential
   non-owner occupied

 

 

580,981

 

 

 

4,409

 

 

 

1,236

 

 

 

—

 

 

 

586,626

 

Residential

 

 

338,619

 

 

 

538

 

 

 

3,432

 

 

 

—

 

 

 

342,589

 

Construction,
   development & other

 

 

692,098

 

 

 

1,208

 

 

 

247

 

 

 

—

 

 

 

693,553

 

Farmland

 

 

29,547

 

 

 

—

 

 

 

849

 

 

 

—

 

 

 

30,396

 

Commercial & industrial

 

 

1,213,303

 

 

 

35,672

 

 

 

13,780

 

 

 

322

 

 

 

1,263,077

 

Consumer

 

 

2,555

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,555

 

Municipal and other

 

 

199,170

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

199,170

 

 

$

3,567,084

 

 

$

47,344

 

 

$

24,038

 

 

$

322

 

 

$

3,638,788

 

 

 

 

 

December 31, 2022

 

(Dollars in thousands)

 

Pass

 

 

Special
Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

487,633

 

 

$

1,885

 

 

$

4,273

 

 

$

—

 

 

$

493,791

 

Non-farm non-residential
   non-owner occupied

 

 

498,987

 

 

 

228

 

 

 

6,797

 

 

 

—

 

 

 

506,012

 

Residential

 

 

307,881

 

 

 

—

 

 

 

894

 

 

 

—

 

 

 

308,775

 

Construction,
   development & other

 

 

559,186

 

 

 

8,620

 

 

 

45

 

 

 

—

 

 

 

567,851

 

Farmland

 

 

22,820

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,820

 

Commercial & industrial

 

 

1,051,365

 

 

 

2,252

 

 

 

5,293

 

 

 

—

 

 

 

1,058,910

 

Consumer

 

 

3,852

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

3,872

 

Municipal and other

 

 

145,520

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

145,520

 

 

$

3,077,244

 

 

$

12,985

 

 

$

17,322

 

 

$

—

 

 

$

3,107,551

 

 

The following tables summarize the Company's loans by risk grades, loan class and vintage, at December 31, 2023 and 2022. Gross charge-offs by origination year and loan class are also presented for the years ended December 31, 2023 and 2022.

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

December 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

55,172

 

 

$

179,776

 

 

$

127,020

 

 

$

70,984

 

 

$

33,439

 

 

$

37,433

 

 

$

6,987

 

 

$

510,811

 

Special Mention

 

 

535

 

 

 

2,350

 

 

 

2,632

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,517

 

Substandard

 

 

157

 

 

 

41

 

 

 

984

 

 

 

—

 

 

 

2,190

 

 

 

659

 

 

 

463

 

 

 

4,494

 

Total Non-farm non-residential owner-occupied

 

$

55,864

 

 

$

182,167

 

 

$

130,636

 

 

$

70,984

 

 

$

35,629

 

 

$

38,092

 

 

$

7,450

 

 

$

520,822

 

Non-farm non-residential
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

105,084

 

 

$

180,054

 

 

$

212,484

 

 

$

26,559

 

 

$

23,112

 

 

$

25,486

 

 

$

8,202

 

 

$

580,981

 

Special Mention

 

 

4,197

 

 

 

—

 

 

 

—

 

 

 

212

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,409

 

Substandard

 

 

—

 

 

 

88

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,148

 

 

 

—

 

 

 

1,236

 

Total Non-farm non-residential non owner-occupied

 

$

109,281

 

 

$

180,142

 

 

$

212,484

 

 

$

26,771

 

 

$

23,112

 

 

$

26,634

 

 

$

8,202

 

 

$

586,626

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

97,867

 

 

$

112,138

 

 

$

86,117

 

 

$

19,178

 

 

$

10,027

 

 

$

7,275

 

 

$

6,017

 

 

$

338,619

 

Special Mention

 

 

94

 

 

 

—

 

 

 

—

 

 

 

444

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

538

 

Substandard

 

 

2,734

 

 

 

253

 

 

 

437

 

 

 

—

 

 

 

—

 

 

 

8

 

 

 

—

 

 

 

3,432

 

Total Residential

 

$

100,695

 

 

$

112,391

 

 

$

86,554

 

 

$

19,622

 

 

$

10,027

 

 

$

7,283

 

 

$

6,017

 

 

$

342,589

 

Construction, development & other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

136,888

 

 

$

110,486

 

 

$

55,938

 

 

$

785

 

 

$

86

 

 

$

529

 

 

$

387,386

 

 

$

692,098

 

Special Mention

 

 

—

 

 

 

—

 

 

 

1,208

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,208

 

Substandard

 

 

244

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

247

 

Total Construction, development & other

 

$

137,132

 

 

$

110,486

 

 

$

57,146

 

 

$

785

 

 

$

86

 

 

$

532

 

 

$

387,386

 

 

$

693,553

 

Farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

11,030

 

 

$

11,328

 

 

$

2,070

 

 

$

96

 

 

$

3,619

 

 

$

818

 

 

$

586

 

 

$

29,547

 

Substandard

 

 

—

 

 

 

849

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

849

 

Total Farmland

 

$

11,030

 

 

$

12,177

 

 

$

2,070

 

 

$

96

 

 

$

3,619

 

 

$

818

 

 

$

586

 

 

$

30,396

 

Commercial & industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

221,392

 

 

$

49,536

 

 

$

79,690

 

 

$

16,843

 

 

$

14,576

 

 

$

1,321

 

 

$

829,945

 

 

$

1,213,303

 

Special Mention

 

 

4,284

 

 

 

4,068

 

 

 

23,916

 

 

 

467

 

 

 

21

 

 

 

55

 

 

 

2,861

 

 

 

35,672

 

Substandard

 

 

483

 

 

 

3,783

 

 

 

4,461

 

 

 

1,276

 

 

 

1,377

 

 

 

82

 

 

 

2,318

 

 

 

13,780

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

322

 

 

 

—

 

 

 

—

 

 

 

322

 

Total Commercial & industrial

 

$

226,159

 

 

$

57,387

 

 

$

108,067

 

 

$

18,586

 

 

$

16,296

 

 

$

1,458

 

 

$

835,124

 

 

$

1,263,077

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(181

)

 

$

(1,523

)

 

$

(120

)

 

$

—

 

 

$

(1,824

)

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

1,061

 

 

$

670

 

 

$

147

 

 

$

183

 

 

$

121

 

 

$

33

 

 

$

340

 

 

$

2,555

 

Total Consumer

 

$

1,061

 

 

$

670

 

 

$

147

 

 

$

183

 

 

$

121

 

 

$

33

 

 

$

340

 

 

$

2,555

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(19

)

 

$

—

 

 

$

(19

)

Municipal and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

86,998

 

 

$

15,406

 

 

$

33,060

 

 

$

3,812

 

 

$

1,011

 

 

$

14

 

 

$

58,869

 

 

$

199,170

 

Total Municipal and other

 

$

86,998

 

 

$

15,406

 

 

$

33,060

 

 

$

3,812

 

 

$

1,011

 

 

$

14

 

 

$

58,869

 

 

$

199,170

 

Current period gross charge-offs

 

$

(10

)

 

$

(6

)

 

$

(2

)

 

$

(2

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(20

)

Total Loans

 

$

728,220

 

 

$

670,826

 

 

$

630,164

 

 

$

140,839

 

 

$

89,901

 

 

$

74,864

 

 

$

1,303,974

 

 

$

3,638,788

 

Total Charge-Offs

 

$

(10

)

 

$

(6

)

 

$

(2

)

 

$

(183

)

 

$

(1,523

)

 

$

(139

)

 

$

—

 

 

$

(1,863

)

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

182,294

 

 

$

125,782

 

 

$

78,148

 

 

$

43,076

 

 

$

27,010

 

 

$

27,060

 

 

$

4,263

 

 

$

487,633

 

Special Mention

 

 

—

 

 

 

1,885

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,885

 

Substandard

 

 

893

 

 

 

473

 

 

 

—

 

 

 

2,213

 

 

 

419

 

 

 

275

 

 

 

—

 

 

 

4,273

 

Total Non-farm non-residential owner-occupied

 

$

183,187

 

 

$

128,140

 

 

$

78,148

 

 

$

45,289

 

 

$

27,429

 

 

$

27,335

 

 

$

4,263

 

 

$

493,791

 

Non-farm non-residential
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

188,662

 

 

$

197,972

 

 

$

39,065

 

 

$

21,051

 

 

$

20,850

 

 

$

21,410

 

 

$

9,977

 

 

$

498,987

 

Special Mention

 

 

—

 

 

 

—

 

 

 

228

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

228

 

Substandard

 

 

192

 

 

 

104

 

 

 

—

 

 

 

5,200

 

 

 

—

 

 

 

1,301

 

 

 

—

 

 

 

6,797

 

Total Non-farm non-residential non owner-occupied

 

$

188,854

 

 

$

198,076

 

 

$

39,293

 

 

$

26,251

 

 

$

20,850

 

 

$

22,711

 

 

$

9,977

 

 

$

506,012

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

121,652

 

 

$

130,924

 

 

$

23,149

 

 

$

13,534

 

 

$

6,115

 

 

$

8,950

 

 

$

3,557

 

 

$

307,881

 

Substandard

 

 

—

 

 

 

878

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16

 

 

 

—

 

 

 

894

 

Total Residential

 

$

121,652

 

 

$

131,802

 

 

$

23,149

 

 

$

13,534

 

 

$

6,115

 

 

$

8,966

 

 

$

3,557

 

 

$

308,775

 

Construction, development & other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

113,261

 

 

$

110,572

 

 

$

1,236

 

 

$

291

 

 

$

70

 

 

$

629

 

 

$

333,127

 

 

$

559,186

 

Special Mention

 

 

—

 

 

 

8,620

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,620

 

Substandard

 

 

40

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

45

 

Total Construction, development & other

 

$

113,301

 

 

$

119,192

 

 

$

1,236

 

 

$

291

 

 

$

70

 

 

$

634

 

 

$

333,127

 

 

$

567,851

 

Farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

12,671

 

 

$

2,736

 

 

$

1,233

 

 

$

3,820

 

 

$

1,216

 

 

$

553

 

 

$

591

 

 

$

22,820

 

Total Farmland

 

$

12,671

 

 

$

2,736

 

 

$

1,233

 

 

$

3,820

 

 

$

1,216

 

 

$

553

 

 

$

591

 

 

$

22,820

 

Commercial & industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

402,799

 

 

$

177,599

 

 

$

34,531

 

 

$

20,509

 

 

$

4,929

 

 

$

1,394

 

 

$

409,604

 

 

$

1,051,365

 

Special Mention

 

 

1,329

 

 

 

700

 

 

 

132

 

 

 

—

 

 

 

—

 

 

 

91

 

 

 

—

 

 

 

2,252

 

Substandard

 

 

495

 

 

 

1,779

 

 

 

1,142

 

 

 

1,733

 

 

 

120

 

 

 

24

 

 

 

—

 

 

 

5,293

 

Total Commercial & industrial

 

$

404,623

 

 

$

180,078

 

 

$

35,805

 

 

$

22,242

 

 

$

5,049

 

 

$

1,509

 

 

$

409,604

 

 

$

1,058,910

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(462

)

 

$

(752

)

 

$

(1,214

)

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

1,550

 

 

$

1,224

 

 

$

338

 

 

$

199

 

 

$

25

 

 

$

93

 

 

$

423

 

 

$

3,852

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

20

 

Total Consumer

 

$

1,550

 

 

$

1,224

 

 

$

338

 

 

$

199

 

 

$

25

 

 

$

113

 

 

$

423

 

 

$

3,872

 

Municipal and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

75,817

 

 

$

25,703

 

 

$

7,542

 

 

$

2,841

 

 

$

412

 

 

$

—

 

 

$

33,205

 

 

$

145,520

 

Total Municipal and other

 

$

75,817

 

 

$

25,703

 

 

$

7,542

 

 

$

2,841

 

 

$

412

 

 

$

—

 

 

$

33,205

 

 

$

145,520

 

Current period gross charge-offs

 

$

—

 

 

$

(18

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(18

)

Total Loans

 

$

1,101,655

 

 

$

786,951

 

 

$

186,744

 

 

$

114,467

 

 

$

61,166

 

 

$

61,821

 

 

$

794,747

 

 

$

3,107,551

 

Total Charge-Offs

 

$

—

 

 

$

(18

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(462

)

 

$

(752

)

 

$

(1,232

)
Schedule of Allowance for Credit Losses

The following table presents the qualitative and quantitative details of the allowance for credit losses on loans by portfolio segment as of December 31, 2023:

(Dollars in thousands)

 

Non-farm non-residential
   owner occupied

 

 

Non-farm non-residential
   non-owner occupied

 

 

Residential

 

 

Construction, development & other

 

 

Farmland

 

 

Commercial & industrial

 

 

Consumer

 

 

Municipal and other

 

 

Total

 

Modeled expected credit losses

 

$

2,324

 

 

$

2,569

 

 

$

1,474

 

 

$

3,557

 

 

$

166

 

 

$

6,400

 

 

$

8

 

 

$

596

 

 

$

17,094

 

Q-Factor and other qualitative adjustments

 

 

1,952

 

 

 

2,321

 

 

 

867

 

 

 

2,296

 

 

 

78

 

 

 

7,507

 

 

 

6

 

 

 

505

 

 

 

15,532

 

Specific allocations

 

 

35

 

 

 

651

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,710

 

 

 

—

 

 

 

—

 

 

 

4,396

 

 

 

$

4,311

 

 

$

5,541

 

 

$

2,341

 

 

$

5,853

 

 

$

244

 

 

$

17,617

 

 

$

14

 

 

$

1,101

 

 

$

37,022

 

Management believes the allowance for credit losses is adequate to cover expected credit losses on loans at December 31, 2023 and 2022.

The following tables detail the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2023, 2022 and 2021:

 

 

For the Year Ended December 31, 2023

 

(Dollars in thousands)

 

Beginning
balance

 

 

CECL adoption adjustment

 

 

Provision for credit losses on loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
balance

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

3,773

 

 

$

1,324

 

 

$

(786

)

 

$

—

 

 

$

—

 

 

$

4,311

 

Non-farm non-residential
   non-owner occupied

 

 

5,741

 

 

 

2,610

 

 

 

(2,810

)

 

 

—

 

 

 

—

 

 

 

5,541

 

Residential

 

 

1,064

 

 

 

996

 

 

 

281

 

 

 

—

 

 

 

—

 

 

 

2,341

 

Construction, development & other

 

 

3,053

 

 

 

1,608

 

 

 

1,192

 

 

 

—

 

 

 

—

 

 

 

5,853

 

Farmland

 

 

82

 

 

 

12

 

 

 

150

 

 

 

—

 

 

 

—

 

 

 

244

 

Commercial & industrial

 

 

16,269

 

 

 

(2,903

)

 

 

5,449

 

 

 

(1,824

)

 

 

626

 

 

 

17,617

 

Consumer

 

 

6

 

 

 

4

 

 

 

23

 

 

 

(19

)

 

 

—

 

 

 

14

 

Municipal and other

 

 

363

 

 

 

349

 

 

 

409

 

 

 

(20

)

 

 

—

 

 

 

1,101

 

 

 

$

30,351

 

 

$

4,000

 

 

$

3,908

 

 

$

(1,863

)

 

$

626

 

 

$

37,022

 

 

 

 

For the Year Ended December 31, 2022

 

(Dollars in thousands)

 

Beginning
balance

 

 

Provision for credit losses on loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
balance

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

3,456

 

 

$

317

 

 

$

—

 

 

$

—

 

 

$

3,773

 

Non-farm non-residential
   non-owner occupied

 

 

5,935

 

 

 

(194

)

 

 

—

 

 

 

—

 

 

 

5,741

 

Residential

 

 

957

 

 

 

107

 

 

 

—

 

 

 

—

 

 

 

1,064

 

Construction, development & other

 

 

2,064

 

 

 

989

 

 

 

—

 

 

 

—

 

 

 

3,053

 

Farmland

 

 

45

 

 

 

37

 

 

 

—

 

 

 

—

 

 

 

82

 

Commercial & industrial

 

 

6,500

 

 

 

10,911

 

 

 

(1,214

)

 

 

72

 

 

 

16,269

 

Consumer

 

 

6

 

 

 

5

 

 

 

(18

)

 

 

13

 

 

 

6

 

Municipal and other

 

 

332

 

 

 

28

 

 

 

—

 

 

 

3

 

 

 

363

 

 

 

$

19,295

 

 

$

12,200

 

 

$

(1,232

)

 

$

88

 

 

$

30,351

 

 

 

 

 

For the Year Ended December 31, 2021

 

(Dollars in thousands)

 

Beginning
balance

 

 

Provision for
credit losses on loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
balance

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

2,608

 

 

$

848

 

 

$

—

 

 

$

—

 

 

$

3,456

 

Non-farm non-residential
   non-owner occupied

 

 

3,107

 

 

 

2,828

 

 

 

—

 

 

 

—

 

 

 

5,935

 

Residential

 

 

1,218

 

 

 

(261

)

 

 

—

 

 

 

—

 

 

 

957

 

Construction, development & other

 

 

932

 

 

 

1,132

 

 

 

—

 

 

 

—

 

 

 

2,064

 

Farmland

 

 

32

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

45

 

Commercial & industrial

 

 

3,858

 

 

 

5,233

 

 

 

(2,914

)

 

 

323

 

 

 

6,500

 

Consumer

 

 

35

 

 

 

(30

)

 

 

—

 

 

 

1

 

 

 

6

 

Municipal and other

 

 

189

 

 

 

160

 

 

 

(20

)

 

 

3

 

 

 

332

 

 

 

$

11,979

 

 

$

9,923

 

 

$

(2,934

)

 

$

327

 

 

$

19,295

 
Schedule of Allowance for Credit Losses for Loans Evaluated both Individually and Collectively for Expected Credit Losses

The following tables summarize the allocation of the allowance for credit losses, by portfolio segment, for loans evaluated both individually and collectively for expected credit losses as of December 31, 2023 and 2022:

 

 

December 31, 2023

 

 

 

Period end amounts of ACL allocated to loans
evaluated for credit losses:

 

(Dollars in thousands)

 

Individually

 

 

Collectively

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

35

 

 

$

4,276

 

 

$

4,311

 

Non-farm non-residential non-owner occupied

 

 

651

 

 

 

4,890

 

 

 

5,541

 

Residential

 

 

—

 

 

 

2,341

 

 

 

2,341

 

Construction, development & other

 

 

—

 

 

 

5,853

 

 

 

5,853

 

Farmland

 

 

—

 

 

 

244

 

 

 

244

 

Commercial & industrial

 

 

3,710

 

 

 

13,907

 

 

 

17,617

 

Consumer

 

 

—

 

 

 

14

 

 

 

14

 

Municipal and other

 

 

—

 

 

 

1,101

 

 

 

1,101

 

 

 

$

4,396

 

 

$

32,626

 

 

$

37,022

 

 

 

 

December 31, 2022

 

 

 

Period end amounts of ACL allocated to loans
evaluated for credit losses:

 

(Dollars in thousands)

 

Individually

 

 

Collectively

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

—

 

 

$

3,773

 

 

$

3,773

 

Non-farm non-residential non-owner occupied

 

 

—

 

 

 

5,741

 

 

 

5,741

 

Residential

 

 

—

 

 

 

1,064

 

 

 

1,064

 

Construction, development & other

 

 

—

 

 

 

3,053

 

 

 

3,053

 

Farmland

 

 

—

 

 

 

82

 

 

 

82

 

Commercial & industrial

 

 

1,600

 

 

 

14,669

 

 

 

16,269

 

Consumer

 

 

—

 

 

 

6

 

 

 

6

 

Municipal and other

 

 

—

 

 

 

363

 

 

 

363

 

 

 

$

1,600

 

 

$

28,751

 

 

$

30,351

 

 
Schedule of Allowance for Credit Losses on Basis of Expected Credit Loss Methodology

The company’s recorded investment in loans related to the balance in the allowance for credit losses on the basis of the Company’s expected credit loss methodology is as follows at December 31, 2023 and 2022:

 

 

December 31, 2023

 

 

 

Loans evaluated for credit losses:

 

(Dollars in thousands)

 

Individually

 

 

Collectively

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,054

 

 

$

519,768

 

 

$

520,822

 

Non-farm non-residential non-owner occupied

 

 

1,393

 

 

 

585,233

 

 

 

586,626

 

Residential

 

 

2,940

 

 

 

339,649

 

 

 

342,589

 

Construction, development & other

 

 

247

 

 

 

693,306

 

 

 

693,553

 

Farmland

 

 

—

 

 

 

30,396

 

 

 

30,396

 

Commercial & industrial

 

 

13,340

 

 

 

1,249,737

 

 

 

1,263,077

 

Consumer

 

 

—

 

 

 

2,555

 

 

 

2,555

 

Municipal and other

 

 

—

 

 

 

199,170

 

 

 

199,170

 

 

 

$

18,974

 

 

$

3,619,814

 

 

$

3,638,788

 

 

 

 

December 31, 2022

 

 

 

Loans evaluated for credit losses:

 

(Dollars in thousands)

 

Individually

 

 

Collectively

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,699

 

 

$

492,092

 

 

$

493,791

 

Non-farm non-residential non-owner occupied

 

 

5,496

 

 

 

500,516

 

 

 

506,012

 

Residential

 

 

513

 

 

 

308,262

 

 

 

308,775

 

Construction, development & other

 

 

40

 

 

 

567,811

 

 

 

567,851

 

Farmland

 

 

—

 

 

 

22,820

 

 

 

22,820

 

Commercial & industrial

 

 

11,947

 

 

 

1,046,963

 

 

 

1,058,910

 

Consumer

 

 

20

 

 

 

3,852

 

 

 

3,872

 

Municipal and other

 

 

—

 

 

 

145,520

 

 

 

145,520

 

 

 

$

19,715

 

 

$

3,087,836

 

 

$

3,107,551

 
Schedule of allowance for credit losses on amortized cost basis of collateral dependent assessed individually for credit losses

The following table presents the amortized cost basis of collateral dependent loans which have been assessed individually for credit losses:

 

 

December 31, 2023

 

(Dollars in thousands)

 

Real Estate

 

 

Business Assets

 

 

Other

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,054

 

 

$

—

 

 

$

—

 

 

$

1,054

 

Non-farm non-residential non-owner occupied

 

 

1,393

 

 

 

—

 

 

 

—

 

 

 

1,393

 

Residential

 

 

2,940

 

 

 

—

 

 

 

—

 

 

 

2,940

 

Construction, development & other

 

 

247

 

 

 

—

 

 

 

—

 

 

 

247

 

Commercial & industrial

 

 

212

 

 

 

12,439

 

 

 

689

 

 

 

13,340

 

 

 

$

5,846

 

 

$

12,439

 

 

$

689

 

 

$

18,974

 

 
v3.24.0.1
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Premises and Equipment

Premises and equipment in the accompanying consolidated balance sheets consisted of the following:

 

 

Estimated

 

December 31,

 

(Dollars in thousands)

 

Useful Life

 

2023

 

 

2022

 

Building and building improvements

 

30 years and
3 - 10 years

 

$

13,703

 

 

$

13,605

 

Land

 

 

 

 

3,894

 

 

 

3,894

 

Equipment

 

3 - 5 years

 

 

6,277

 

 

 

5,757

 

Leasehold improvements

 

3 - 10 years

 

 

11,678

 

 

 

9,761

 

Furniture and fixtures

 

3 - 5 years

 

 

4,666

 

 

 

4,170

 

Construction in process

 

 

 

 

2,303

 

 

 

1,964

 

 

 

 

 

42,521

 

 

 

39,151

 

Accumulated depreciation

 

 

 

 

(13,967

)

 

 

(10,489

)

 

 

 

$

28,554

 

 

$

28,662

 
v3.24.0.1
Deposits (Tables)
 12 Months Ended
Dec. 31, 2023
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract]  
Schedule of Deposit Liabilities

Deposits in the accompanying consolidated balance sheets consisted of the following:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

Transaction accounts:

 

 

 

 

 

 

Noninterest bearing demand accounts

 

$

459,553

 

 

$

486,114

 

Interest bearing demand accounts

 

 

2,842,668

 

 

 

2,498,325

 

Savings

 

 

24,998

 

 

 

35,677

 

Total transaction accounts

 

 

3,327,219

 

 

 

3,020,116

 

Time deposits

 

 

475,929

 

 

 

216,030

 

Total deposits

 

$

3,803,148

 

 

$

3,236,146

 
Schedule Maturities of time deposit

Scheduled maturities of time deposits at December 31, 2023 are as follows:

(Dollars in thousands)

 

Maturities by Year

 

2024

 

$

392,822

 

2025

 

 

47,504

 

2026

 

 

31,845

 

2027

 

 

1,149

 

2028 and thereafter

 

 

2,609

 

 

 

$

475,929

 
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Summary of Provision for Income Taxes

The provision for income taxes consisted of the following:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Current income tax expense

 

$

11,102

 

 

$

5,759

 

 

$

3,439

 

Deferred income tax benefit

 

 

(2,891

)

 

 

(1,250

)

 

 

(380

)

Income tax expense as reported

 

$

8,211

 

 

$

4,509

 

 

$

3,059

 
Reconciliation of Reported Income Tax Expense

A reconciliation of reported income tax expense to the amount computed by the Company's statutory income tax rate of 21% to income before income taxes is presented below:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Income tax expense computed at statutory rate

 

$

8,738

 

 

$

4,865

 

 

$

3,042

 

Share-based compensation

 

 

114

 

 

 

117

 

 

 

93

 

Bank-owned life insurance

 

 

(441

)

 

 

(276

)

 

 

(119

)

Non-deductible meals, entertainment, and dues

 

 

192

 

 

 

91

 

 

 

57

 

Tax-exempt income

 

 

(535

)

 

 

(283

)

 

 

(2

)

Section 291 depreciation recapture

 

 

211

 

 

 

78

 

 

 

1

 

Other, net

 

 

(68

)

 

 

(83

)

 

 

(13

)

Income tax expense as reported

 

$

8,211

 

 

$

4,509

 

 

$

3,059

 
Summary of Deferred Taxes

A summary of deferred taxes is presented below:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for credit losses

 

$

8,451

 

 

$

6,352

 

Accrued expenses

 

 

331

 

 

 

264

 

Stock options and restricted stock

 

 

213

 

 

 

114

 

Phantom stock

 

 

68

 

 

 

—

 

Loan purchase mark-to-market

 

 

77

 

 

 

62

 

Deferred loan origination fees

 

 

2,405

 

 

 

1,564

 

Net unrealized loss on investment securities available-for-sale

 

 

841

 

 

 

1,271

 

Non-accrual interest

 

 

226

 

 

 

241

 

Other

 

 

223

 

 

 

124

 

Total deferred tax assets

 

 

12,835

 

 

 

9,992

 

Deferred tax liabilities:

 

 

 

 

 

 

Premises and equipment

 

 

2,007

 

 

 

2,468

 

Goodwill and core deposit intangibles

 

 

206

 

 

 

237

 

Investments

 

 

87

 

 

 

68

 

Unrealized gain on derivatives

 

 

1,089

 

 

 

712

 

Prepaid expenses and other

 

 

219

 

 

 

204

 

Total deferred tax liabilities

 

 

3,608

 

 

 

3,689

 

Net deferred tax asset

 

$

9,227

 

 

$

6,303

 
v3.24.0.1
Stock Options and Warrants (Table)
 12 Months Ended
Dec. 31, 2023
Stock Options And Warrants [Abstract]  
Summary of Stock Option Activity

A summary of stock option activity for years ended December 31, 2023 and 2022 is presented below:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

Shares
 Underlying
 Options

 

 

Weighted
Average
 Exercise Price

 

 

Shares
 Underlying
 Options

 

 

Weighted
Average
 Exercise Price

 

Outstanding at beginning of period

 

 

1,203,928

 

 

$

18.05

 

 

 

1,220,428

 

 

$

17.83

 

Granted during the period

 

 

45,500

 

 

 

17.37

 

 

 

136,000

 

 

 

21.15

 

Forfeited during the period

 

 

(122,537

)

 

 

20.89

 

 

 

(105,167

)

 

 

21.18

 

Exercised during the period

 

 

(868

)

 

 

15.45

 

 

 

(47,333

)

 

 

14.38

 

Outstanding at the end of period

 

 

1,126,023

 

 

$

17.72

 

 

 

1,203,928

 

 

$

18.05

 

Options exercisable at end of period

 

 

678,053

 

 

$

16.33

 

 

 

527,658

 

 

$

15.51

 

Weighted-average grant date fair value of options
   granted during the period

 

 

 

 

$

5.00

 

 

 

 

 

$

6.80

 

 
Schedule of Weighted Average Remaining life

A summary of weighted average remaining life is presented below:

 

 

December 31,

 

 

 

2023

 

 

2022

 

Exercise Price

 

Options Outstanding

 

 

Weighted
Average
Remaining Life (years)

 

 

Options Exercisable

 

 

Options Outstanding

 

 

Weighted
Average
Remaining Life (years)

 

 

Options
 Exercisable

 

$10.00 - $12.99

 

 

144,050

 

 

 

0.95

 

 

 

144,050

 

 

 

146,553

 

 

 

1.96

 

 

 

146,553

 

$13.00 - $16.99

 

 

436,223

 

 

 

5.56

 

 

 

344,353

 

 

 

435,175

 

 

 

6.45

 

 

 

280,905

 

$17.00 - $26.99

 

 

545,750

 

 

 

7.72

 

 

 

189,650

 

 

 

622,200

 

 

 

8.69

 

 

 

100,200

 

 

 

 

1,126,023

 

 

 

6.02

 

 

 

678,053

 

 

 

1,203,928

 

 

 

7.06

 

 

 

527,658

 
Schedule of Nonvested Share Activity

A summary of the activity in the Company’s nonvested shares is as follows:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

 

Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Nonvested at January 1,

 

 

676,270

 

 

$

3.82

 

 

 

858,670

 

 

$

3.15

 

Granted during the period

 

 

45,500

 

 

 

5.00

 

 

 

136,000

 

 

 

6.80

 

Vested during the period

 

 

(188,100

)

 

 

2.90

 

 

 

(219,900

)

 

 

3.07

 

Forfeited during the period

 

 

(85,700

)

 

 

3.54

 

 

 

(98,500

)

 

 

3.70

 

Nonvested at end of period

 

 

447,970

 

 

$

3.94

 

 

 

676,270

 

 

$

3.82

 
Schedule Of Stock Warrant Activity

A summary of the Company’s stock warrant activity is presented below:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

Shares
Underlying
Warrants

 

 

Weighted
Average
Exercise
Price

 

 

Shares
Underlying
Warrants

 

 

Weighted
Average
Exercise
Price

 

Outstanding at beginning of period

 

 

179,285

 

 

$

22.23

 

 

 

4,285

 

 

$

11.00

 

Granted

 

 

—

 

 

 

—

 

 

 

175,000

 

 

 

22.50

 

Exercised

 

 

(4,285

)

 

 

11.00

 

 

 

—

 

 

 

—

 

Outstanding at end of period

 

 

175,000

 

 

$

22.50

 

 

 

179,285

 

 

$

22.23

 

Exercisable at end of period

 

 

175,000

 

 

$

22.50

 

 

 

179,285

 

 

$

22.23

 
Summary of Activity for Nonvested RSAs

A summary of the activity for non-vested RSAs for the years ended December 31, 2023 and 2022 is presented below:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

Shares

 

 

Weighted
Average
Grant Date
 Fair Value

 

 

Shares

 

 

Weighted
Average
Grant Date
 Fair Value

 

Nonvested at beginning of period

 

 

76,094

 

 

$

22.35

 

 

 

49,750

 

 

$

24.00

 

Granted during the period

 

 

75,956

 

 

 

16.18

 

 

 

54,424

 

 

 

21.81

 

Vested during the period

 

 

(34,883

)

 

 

12.88

 

 

 

(18,580

)

 

 

24.00

 

Forfeited during the period

 

 

(6,943

)

 

 

21.98

 

 

 

(9,500

)

 

 

24.67

 

Nonvested at the end of period

 

 

110,224

 

 

$

17.44

 

 

 

76,094

 

 

$

22.35

 
Compensation expense for RSAs is recorded over the vesting period and is determined based on the number of restricted shares granted and the market price of our common stock at issue date.
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Schedule of Lease cost

Lease costs for the period shown below were as follows:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Operating lease cost

 

$

4,281

 

 

$

2,804

 

 

$

1,605

 

Short-term lease cost

 

 

149

 

 

 

607

 

 

 

—

 

Total lease cost

 

$

4,430

 

 

$

3,411

 

 

$

1,605

 
Schedule of maturities of operating leases

A schedule of the Company's lease liabilities by contractual maturity for operating leases with initial or remaining terms in excess of one year for each year through 2028 and thereafter is presented below:

(Dollars in thousands)

 

Operating Lease Maturities

 

2024

 

$

3,141

 

2025

 

 

3,250

 

2026

 

 

3,323

 

2027

 

 

3,376

 

2028 and thereafter

 

 

15,032

 

Total undiscounted lease liability

 

 

28,122

 

Less: Discount on cash flows

 

 

(4,732

)

Leases signed, but not yet commenced

 

 

(1,110

)

Total operating lease liability

 

$

22,280

 
v3.24.0.1
Financial Instruments With Off Balance Sheet Risk (Table)
 12 Months Ended
Dec. 31, 2023
Financial Instruments With Off Balance Sheet Risk [Abstract]  
Schedule of Financial Instruments Outstanding Whose Contract Amounts Represent Credit Risk

The following financial instruments were outstanding whose contract amounts represent credit risk:

 

 

December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

Commitments to extend credit

 

$

1,352,147

 

 

$

1,148,012

 

Standby letters of credit

 

 

26,850

 

 

 

21,728

 

Total

 

$

1,378,997

 

 

$

1,169,740

 
v3.24.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Summary of Financial Assets and Financial Liabilities Measured at Fair Value

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value as of December 31, 2023 and 2022:

 

 

Fair Value Measurements Using

 

 

 

 

(Dollars in thousands)

 

Level 1 Inputs

 

 

Level 2 Inputs

 

 

Level 3 Inputs

 

 

Total Fair Value

 

At December 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

—

 

 

$

3,991

 

 

$

—

 

 

$

3,991

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

—

 

 

 

78,533

 

 

 

—

 

 

 

78,533

 

Corporate bonds

 

 

—

 

 

 

95,563

 

 

 

—

 

 

 

95,563

 

Total investment securities available-for-sale

 

$

—

 

 

$

178,087

 

 

$

—

 

 

$

178,087

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

 

 

Pass-through interest rate swaps

 

$

—

 

 

$

8,774

 

 

$

—

 

 

$

8,774

 

Risk participation agreements

 

 

—

 

 

 

6

 

 

 

—

 

 

 

6

 

Pay-fixed interest rate swaps

 

 

—

 

 

 

48

 

 

 

—

 

 

 

48

 

Total derivative assets

 

$

—

 

 

$

8,828

 

 

$

—

 

 

$

8,828

 

Derivative liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

$

—

 

 

$

1,541

 

 

$

—

 

 

$

1,541

 

Interest rate swaps

 

$

—

 

 

$

8,774

 

 

$

—

 

 

$

8,774

 

Risk participation agreements

 

 

—

 

 

 

20

 

 

 

—

 

 

 

20

 

Pay-fixed interest rate swaps

 

 

—

 

 

 

352

 

 

 

—

 

 

 

352

 

Total derivative liabilities

 

$

—

 

 

$

10,687

 

 

$

—

 

 

$

10,687

 

 

 

 

Fair Value Measurements Using

 

 

 

 

(Dollars in thousands)

 

Level 1 Inputs

 

 

Level 2 Inputs

 

 

Level 3 Inputs

 

 

Total Fair Value

 

At December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal securities

 

$

—

 

 

$

417

 

 

$

—

 

 

$

417

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

—

 

 

 

22,881

 

 

 

—

 

 

 

22,881

 

U.S. Treasury bonds

 

 

—

 

 

 

98,518

 

 

 

—

 

 

 

98,518

 

Corporate bonds

 

 

—

 

 

 

54,251

 

 

 

—

 

 

 

54,251

 

Total investment securities available-for-sale

 

$

—

 

 

$

176,067

 

 

$

—

 

 

$

176,067

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

—

 

 

$

9,213

 

 

$

—

 

 

$

9,213

 

Total derivative assets

 

$

—

 

 

$

9,213

 

 

$

—

 

 

$

9,213

 

Derivative liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

—

 

 

$

9,213

 

 

$

—

 

 

$

9,213

 

Risk participation agreements

 

 

—

 

 

 

8

 

 

 

—

 

 

 

8

 

Total derivative liabilities

 

$

—

 

 

$

9,221

 

 

$

—

 

 

$

9,221

 
Summary of Estimated Fair Values and Carrying Values of Financial Instruments

The estimated fair values and carrying values of all financial instruments under current authoritative guidance, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value are as follows:

 

December 31, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

Carrying
 Value

 

 

Estimated
Fair Value

 

 

Carrying
   Value

 

 

Estimated
Fair Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

Level 2 inputs

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

411,845

 

 

$

411,845

 

 

$

332,014

 

 

$

332,014

 

Investment securities available-for-sale

 

178,087

 

 

 

178,087

 

 

 

176,067

 

 

 

176,067

 

Non-marketable securities

 

16,041

 

 

 

16,041

 

 

 

14,618

 

 

 

14,618

 

Accrued interest receivable

 

23,120

 

 

 

23,120

 

 

 

18,340

 

 

 

18,340

 

Bank-owned life insurance

 

65,861

 

 

 

65,861

 

 

 

60,761

 

 

 

60,761

 

Derivative assets

 

8,828

 

 

 

8,828

 

 

 

9,213

 

 

 

9,213

 

$

703,782

 

 

$

703,782

 

 

$

611,013

 

 

$

611,013

 

Level 3 inputs

 

 

 

 

 

 

 

 

 

 

 

Loans, net

$

3,601,766

 

 

$

3,532,270

 

 

$

3,077,200

 

 

$

2,920,213

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

Level 2 inputs

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

3,803,148

 

 

$

3,821,744

 

 

$

3,236,146

 

 

$

3,238,857

 

Accrued interest payable

 

4,794

 

 

 

4,794

 

 

 

2,545

 

 

 

2,545

 

Note payable and line of credit

 

119,428

 

 

 

119,428

 

 

 

111,223

 

 

 

111,223

 

Derivative liabilities

 

10,687

 

 

 

10,687

 

 

 

9,221

 

 

 

9,221

 

$

3,938,057

 

 

$

3,956,653

 

 

$

3,359,135

 

 

$

3,361,846

 
v3.24.0.1
Shareholders’ Equity and Regulatory Matters (Tables)
 12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Schedule of Comparison of the Actual Capital Amounts and Ratios

A comparison of the Bank’s actual capital amounts and ratios to required capital amounts and ratios are presented in the following table. The Company began reporting ratios beginning March 31, 2023 in accordance with the regulatory framework. Capital levels required to be well capitalized are based upon prompt corrective action regulations, as amended, to reflect the changes under the Basel III Capital Rules.

 

 

Actual

 

 

For Capital Adequacy
Purposes

 

 

To Be Well Capitalized
Under Prompt Corrective
Action Provisions

 

(Dollars in thousands)

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

THIRD COAST BANCSHARES, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Consolidated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

$

512,024

 

 

 

12.66

%

 

≥

$

424,563

 

 

≥

 

10.50

%

 

 

N/A

 

 

 

N/A

 

Tier 1 capital (to risk weighted assets)

 

$

392,037

 

 

 

9.70

%

 

≥

$

343,694

 

 

≥

 

8.50

%

 

 

N/A

 

 

 

N/A

 

Tier 1 capital (to average assets)

 

$

392,037

 

 

 

9.23

%

 

≥

$

169,917

 

 

≥

 

4.00

%

 

 

N/A

 

 

 

N/A

 

Common equity tier 1 (to risk weighted assets)

 

$

325,812

 

 

 

8.06

%

 

≥

$

283,042

 

 

≥

 

7.00

%

 

 

N/A

 

 

 

N/A

 

THIRD COAST BANK, SSB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

$

544,624

 

 

 

13.49

%

 

≥

$

423,829

 

 

≥

 

10.50

%

 

≥

$

403,647

 

 

≥

 

10.00

%

Tier 1 capital (to risk weighted assets)

 

$

505,190

 

 

 

12.52

%

 

≥

$

343,100

 

 

≥

 

8.50

%

 

≥

$

322,918

 

 

≥

 

8.00

%

Tier 1 capital (to average assets)

 

$

505,190

 

 

 

11.91

%

 

≥

$

169,649

 

 

≥

 

4.00

%

 

≥

$

212,062

 

 

≥

 

5.00

%

Common equity tier 1 (to risk weighted assets)

 

$

505,190

 

 

 

12.52

%

 

≥

$

282,553

 

 

≥

 

7.00

%

 

≥

$

262,371

 

 

≥

 

6.50

%

As of December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

$

496,222

 

 

 

13.79

%

 

≥

$

377,782

 

 

≥

 

10.50

%

 

≥

$

359,793

 

 

≥

 

10.00

%

Tier 1 capital (to risk weighted assets)

 

$

465,871

 

 

 

12.95

%

 

≥

$

305,824

 

 

≥

 

8.50

%

 

≥

$

287,834

 

 

≥

 

8.00

%

Tier 1 capital (to average assets)

 

$

465,871

 

 

 

13.11

%

 

≥

$

142,188

 

 

≥

 

4.00

%

 

≥

$

177,734

 

 

≥

 

5.00

%

Common equity tier 1 (to risk weighted assets)

 

$

465,871

 

 

 

12.95

%

 

≥

$

251,855

 

 

≥

 

7.00

%

 

≥

$

233,865

 

 

≥

 

6.50

%
v3.24.0.1
Earnings Per Common Share (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule Of Earnings Per Share Basic And Diluted

The following table presents a reconciliation of net income available to common shareholders and the number of shares used in the calculation of basic and diluted earnings per common share shown on the consolidated statements of income.

 

 

For the Years Ended December 31,

 

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

 

2023

 

 

2022

 

 

2021

 

Net income

 

$

33,401

 

 

$

18,659

 

 

$

11,424

 

Less dividends declared, Preferred Series A stock

 

 

4,736

 

 

 

1,418

 

 

 

—

 

Net income available to common shareholders

 

$

28,665

 

 

$

17,241

 

 

$

11,424

 

Weighted-average shares outstanding for basic earnings per common share

 

 

13,583,553

 

 

 

13,465,196

 

 

 

7,874,110

 

Dilutive effect of stock compensation

 

 

209,894

 

 

 

289,414

 

 

 

264,714

 

Dilutive effect of Preferred Series A stock

 

 

3,084,444

 

 

 

—

 

 

 

—

 

Weighted-average shares outstanding for diluted earnings per common share

 

 

16,877,891

 

 

 

13,754,610

 

 

 

8,138,824

 

Basic earnings per share

 

$

2.11

 

 

$

1.28

 

 

$

1.45

 

Diluted earnings per share

 

$

1.98

 

 

$

1.25

 

 

$

1.40

 
v3.24.0.1
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Outstanding Notional Balances and Fair Values of Outstanding Derivative Positions

The following tables provide the outstanding notional balances and fair values of outstanding derivative positions at December 31, 2023 and 2022.

(Dollars in thousands)

 

Outstanding
Notional
 Balance

 

 

Asset
 Derivative
Fair Value

 

 

Liability
 Derivative
Fair Value

 

 

Pay
Rate (1)

 

Receive
Rate (1)

 

Remaining
Term (2)

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pay-fixed interest rate swap

 

$

200,000

 

 

$

—

 

 

$

1,541

 

 

3.60%

 

USD Fed
Funds-H.15

 

 

5.0

 

Total cash flow hedges

 

 

200,000

 

 

 

—

 

 

 

1,541

 

 

 

 

 

 

 

 

Fair value hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk participation agreements purchased

 

$

13,935

 

 

$

—

 

 

$

20

 

 

—

 

5.80%

 

 

2.5

 

Risk participation agreements sold

 

 

54,383

 

 

 

6

 

 

 

—

 

 

—

 

5.06%

 

 

3.9

 

Commercial loan one-way interest rate swaps

 

 

32,477

 

 

 

48

 

 

 

352

 

 

7.02%

 

—

 

 

3.1

 

Commercial loan pass-through interest rate swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan customer counterparty

 

 

216,766

 

 

 

2,327

 

 

 

6,447

 

 

—

 

5.86%

 

 

3.7

 

Financial institution counterparty

 

 

216,766

 

 

 

6,447

 

 

 

2,327

 

 

5.86%

 

—

 

 

3.7

 

Total fair value hedges

 

 

534,327

 

 

 

8,828

 

 

 

9,146

 

 

 

 

 

 

 

 

Total derivatives

 

$

734,327

 

 

$

8,828

 

 

$

10,687

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Outstanding
Notional
 Balance

 

 

Asset
 Derivative
Fair Value

 

 

Liability
 Derivative
Fair Value

 

 

Pay
Rate (1)

 

Receive
Rate (1)

 

Remaining
Term (2)

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk participation agreements purchased

 

$

10,621

 

 

$

—

 

 

$

—

 

 

—

 

4.87%

 

 

2.2

 

Risk participation agreements sold

 

 

29,360

 

 

 

—

 

 

 

8

 

 

—

 

5.54%

 

 

4.2

 

Commercial loan pass-through interest rate swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan customer counterparty

 

 

147,560

 

 

 

—

 

 

 

9,213

 

 

—

 

4.77%

 

 

4.5

 

Financial institution counterparty

 

 

147,560

 

 

 

9,213

 

 

 

—

 

 

4.77%

 

—

 

 

4.5

 

Total fair value hedges

 

 

335,101

 

 

 

9,213

 

 

 

9,221

 

 

 

 

 

 

 

 

Total derivatives

 

$

335,101

 

 

$

9,213

 

 

$

9,221

 

 

 

 

 

 

 

 

 

(1) Weighted average rate.

(2) Weighted average life (in years).
v3.24.0.1
Core Deposit Intangibles, Net (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Amortization of Core Deposit Intangible

Scheduled amortization of CDI at December 31, 2023 are as follows:

(Dollars in thousands)

 

CDI
Amortization

 

2024

 

$

162

 

2025

 

 

162

 

2026

 

 

162

 

2027

 

 

162

 

2028 and thereafter

 

 

321

 

 

 

$

969

 
v3.24.0.1
Parent Company Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Schedule of Condensed Balance Sheets

Condensed Balance Sheets of the Company (Parent company only) for the periods presented are as follows:

(Dollars in thousands)

 

December 31,

 

ASSETS

 

2023

 

 

2022

 

Cash and cash equivalents

 

$

1,890

 

 

$

8,752

 

Investment in subsidiary

 

 

525,127

 

 

 

482,933

 

Other assets

 

 

6,988

 

 

 

3,795

 

Total assets

 

$

534,005

 

 

$

495,480

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Other borrowings

 

$

119,428

 

 

$

111,223

 

Other liabilities

 

 

2,603

 

 

 

2,477

 

Total liabilities

 

 

122,031

 

 

 

113,700

 

Shareholders' equity:

 

 

 

 

 

 

Series A Convertible Non-Cumulative Preferred Stock

 

 

69

 

 

 

69

 

Series B Convertible Perpetual Preferred Stock

 

 

—

 

 

 

—

 

Common stock

 

 

13,683

 

 

 

13,610

 

Common stock - non-voting

 

 

—

 

 

 

—

 

Additional paid-in capital

 

 

319,613

 

 

 

318,033

 

Retained earnings

 

 

78,775

 

 

 

53,270

 

Accumulated other comprehensive income (loss)

 

 

933

 

 

 

(2,103

)

Treasury stock: at cost

 

 

(1,099

)

 

 

(1,099

)

Total shareholders' equity

 

 

411,974

 

 

 

381,780

 

Total liabilities & shareholders' equity

 

$

534,005

 

 

$

495,480

 

 
Schedule of Condensed Statements of Income and Comprehensive Income

Condensed Statements of Income and Comprehensive Income of the Company (Parent company only) for the periods are as follows:

 

 

For the Years Ended December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Interest expense:

 

 

 

 

 

 

 

 

 

Interest on notes payable

 

$

7,657

 

 

$

4,605

 

 

$

1,091

 

Total interest expense

 

 

7,657

 

 

 

4,605

 

 

 

1,091

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Legal and professional

 

 

760

 

 

 

302

 

 

 

680

 

Other

 

 

836

 

 

 

230

 

 

 

23

 

Total noninterest expense

 

 

1,596

 

 

 

532

 

 

 

703

 

Loss before income tax expense and equity in undistributed earnings of subsidiaries

 

 

(9,253

)

 

 

(5,137

)

 

 

(1,794

)

Income tax benefit

 

 

1,943

 

 

 

1,087

 

 

 

359

 

Loss before equity in undistributed earnings of subsidiaries

 

 

(7,310

)

 

 

(4,050

)

 

 

(1,435

)

Equity in undistributed earnings of subsidiaries

 

 

40,711

 

 

 

22,709

 

 

 

12,859

 

Net income

 

$

33,401

 

 

$

18,659

 

 

$

11,424

 

Comprehensive income

 

$

36,437

 

 

$

15,163

 

 

$

12,538

 
Schedule of Condensed Statements of Cash Flows

Condensed Statements of Cash Flows of the Company (Parent company only) for the periods presented are as follows:

 

 

For the Years Ended December 31,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

33,401

 

 

$

18,659

 

 

$

11,424

 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

Equity in undistributed net income of subsidiaries

 

 

(40,711

)

 

 

(22,709

)

 

 

(12,859

)

Amortization of subordinated debt issuance costs

 

 

205

 

 

 

154

 

 

 

—

 

Net change in other assets

 

 

(3,193

)

 

 

(1,938

)

 

 

(359

)

Net change in other liabilities

 

 

125

 

 

 

1,278

 

 

 

(150

)

Net cash used in operating activities

 

 

(10,173

)

 

 

(4,556

)

 

 

(1,944

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Capital investment in subsidiaries

 

 

—

 

 

 

(173,000

)

 

 

(125,800

)

Net cash used in investing activities

 

 

—

 

 

 

(173,000

)

 

 

(125,800

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Repayment of subordinated notes payable - related party

 

 

—

 

 

 

—

 

 

 

(13,000

)

Proceeds from (repayment of) line of credit - senior debt

 

 

8,000

 

 

 

29,875

 

 

 

(19,875

)

Net proceeds from subordinated debt issuance

 

 

—

 

 

 

80,194

 

 

 

—

 

Net proceeds from issuance of preferred stock

 

 

—

 

 

 

66,225

 

 

 

—

 

Net proceeds from issuance of common stock

 

 

—

 

 

 

856

 

 

 

163,199

 

Dividends paid on Series A preferred stock

 

 

(4,736

)

 

 

(221

)

 

 

—

 

Proceeds from stock warrants exercised

 

 

47

 

 

 

—

 

 

 

19

 

Proceeds from stock options exercised

 

 

—

 

 

 

672

 

 

 

995

 

Net redemption of treasury stock

 

 

—

 

 

 

—

 

 

 

(121

)

Net cash provided by financing activities

 

 

3,311

 

 

 

177,601

 

 

 

131,217

 

Change in cash and cash equivalents

 

 

(6,862

)

 

 

45

 

 

 

3,473

 

Cash and cash equivalents at beginning of period

 

 

8,752

 

 

 

8,707

 

 

 

5,234

 

Cash and cash equivalents at end of period

 

$

1,890

 

 

$

8,752

 

 

$

8,707

 
v3.24.0.1
Quarterly Financial Data (UNAUDITED) (Tables)
 12 Months Ended
Dec. 31, 2023
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Financial Information

The information below is only a summary and should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated historical financial statements and the related notes thereto included in this Annual Report on Form 10-K.

 

 

For the Quarters Ended December 31, 2023

 

(Dollars in thousands)

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Selected income statement data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

77,067

 

 

$

69,385

 

 

$

62,713

 

 

$

57,379

 

Interest expense

 

 

39,736

 

 

 

34,117

 

 

 

28,617

 

 

 

24,549

 

Net interest income

 

 

37,331

 

 

 

35,268

 

 

 

34,096

 

 

 

32,830

 

Provision for credit losses

 

 

1,100

 

 

 

2,620

 

 

 

1,400

 

 

 

1,200

 

Net interest income after provision for credit losses

 

 

36,231

 

 

 

32,648

 

 

 

32,696

 

 

 

31,630

 

Noninterest income

 

 

2,157

 

 

 

1,866

 

 

 

2,280

 

 

 

1,902

 

Noninterest expense

 

 

26,414

 

 

 

27,505

 

 

 

23,835

 

 

 

22,044

 

Income before income tax expense

 

 

11,974

 

 

 

7,009

 

 

 

11,141

 

 

 

11,488

 

Income tax expense

 

 

2,285

 

 

 

1,431

 

 

 

2,250

 

 

 

2,245

 

Net income

 

$

9,689

 

 

$

5,578

 

 

$

8,891

 

 

$

9,243

 

 

 

 

For the Quarters Ended December 31, 2022

 

(Dollars in thousands)

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Selected income statement data:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

51,151

 

 

$

43,102

 

 

$

32,509

 

 

$

27,184

 

Interest expense

 

 

19,000

 

 

 

11,747

 

 

 

4,771

 

 

 

1,974

 

Net interest income

 

 

32,151

 

 

 

31,355

 

 

 

27,738

 

 

 

25,210

 

Provision for credit losses

 

 

1,950

 

 

 

2,900

 

 

 

3,350

 

 

 

4,000

 

Net interest income after provision for credit losses

 

 

30,201

 

 

 

28,455

 

 

 

24,388

 

 

 

21,210

 

Noninterest income

 

 

1,753

 

 

 

2,538

 

 

 

1,266

 

 

 

1,666

 

Noninterest expense

 

 

22,627

 

 

 

22,728

 

 

 

22,773

 

 

 

20,181

 

Income before income tax expense

 

 

9,327

 

 

 

8,265

 

 

 

2,881

 

 

 

2,695

 

Income tax expense

 

 

1,802

 

 

 

1,495

 

 

 

604

 

 

 

608

 

Net income

 

$

7,525

 

 

$

6,770

 

 

$

2,277

 

 

$

2,087

 
v3.24.0.1
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details)
$ in Thousands
 12 Months Ended
Jan. 01, 2023
USD ($)
Dec. 31, 2023
USD ($)
Branch
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Number of branch offices | Branch   16    
Servicing loans previously sold   $ 4,800 $ 8,300  
Advertising and marketing expenses   2,627 1,912 $ 1,889
Decrease to retained earnings   78,775 53,270  
Right-of-use assets   21,439 17,872  
Lease liabilities   $ 22,280 $ 18,209  
ASU 2016-02        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Change in accounting principle, ASU, Adopted [true false]   true    
Change in accounting principle, ASU, Adoption date   Jan. 01, 2022    
Right-of-use assets   $ 11,000    
Lease liabilities   $ 10,900    
ASU 2016-13        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Change in accounting principle, ASU, Adopted [true false]   true    
Change in accounting principle, ASU, Adoption date   Jan. 01, 2023    
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Increase in allowance for credit losses $ 4,000      
Decrease to retained earnings $ 3,200      
ASU 2022-02        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Change in accounting principle, ASU, Adopted [true false]   true    
Change in accounting principle, ASU, Adoption date   Jan. 01, 2023    
v3.24.0.1
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Impact of ASC 326 on Allowance for Credit Losses by Loan Category (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jan. 01, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses $ 37,022 $ 30,351 $ 30,351 $ 19,295 $ 11,979
ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   34,351      
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses $ 4,000 4,000      
Non-Farm Non-Residential Owner Occupied | Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   3,773      
Non-Farm Non-Residential Owner Occupied | Real Estate | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   5,097      
Non-Farm Non-Residential Owner Occupied | Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   1,324      
Non-Farm Non-Residential Non-Owner Occupied | Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   5,741      
Non-Farm Non-Residential Non-Owner Occupied | Real Estate | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   8,351      
Non-Farm Non-Residential Non-Owner Occupied | Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   2,610      
Residential | Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   1,064      
Residential | Real Estate | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   2,060      
Residential | Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   996      
Construction, Development & Other | Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   3,053      
Construction, Development & Other | Real Estate | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   4,661      
Construction, Development & Other | Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   1,608      
Farmland | Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   82      
Farmland | Real Estate | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   94      
Farmland | Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   12      
Commercial & Industrial          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   16,269      
Commercial & Industrial | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   13,366      
Commercial & Industrial | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   (2,903)      
Consumer          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   6      
Consumer | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   10      
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   4      
Municipal and Other          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   363      
Municipal and Other | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   712      
Municipal and Other | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for credit losses   $ 349      
v3.24.0.1
Investment Securities Available for Sale - Carrying Amount and Fair Values of Investment Securities Available For Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost $ 182,091 $ 182,118
Gross Unrealized Gains 2,460 297
Gross Unrealized Losses 6,464 6,348
Estimated Fair Value 178,087 176,067
U.S. Government and Agency Securities    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 4,017  
Gross Unrealized Losses 26  
Estimated Fair Value 3,991  
State and Muncipal Securities    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost   422
Gross Unrealized Losses   5
Estimated Fair Value   417
Mortgage-Backed Securities and Collateralized Mortgage Obligations    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 77,703 23,522
Gross Unrealized Gains 1,599 238
Gross Unrealized Losses 769 879
Estimated Fair Value 78,533 22,881
U.S. Treasury Bonds    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost   100,567
Gross Unrealized Losses   2,049
Estimated Fair Value   98,518
Corporate Bonds    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 100,371 57,607
Gross Unrealized Gains 861 59
Gross Unrealized Losses 5,669 3,415
Estimated Fair Value $ 95,563 $ 54,251
v3.24.0.1
Investment Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Securities Available-for-sale Amortized cost    
Due in one year or less $ 2,905  
Due from one year to five years 9,340  
Due from five to ten years 83,068  
Over ten years 9,075  
Debt securities, available-for-sale, maturity, amortized Cost 104,388  
Mortgage-backed securities and other agency obligations 77,703  
Amortized Cost 182,091 $ 182,118
Securities Available-for-sale, Estimated Fair Value    
Due in one year or less 2,937  
Due from one year to five years 9,547  
Due from five to ten years 77,960  
Over ten years 9,110  
Debt securities, available-for-sale, maturity, estimated fair value 99,554  
Mortgage-backed securities and other agency obligations 78,533  
Estimated Fair Value $ 178,087 $ 176,067
v3.24.0.1
Investment Securities Available for Sale - Summary of Securities with Unrealized Losses (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Marketable Securities [Line Items]    
Less Than 12 Months in a Loss Position $ 154 $ 6,348
Greater Than 12 Months in a Loss Position 6,310  
Total Unrealized Loss 6,464 6,348
Estimated Fair Value 84,135 167,724
U.S. Government and Agency Securities    
Marketable Securities [Line Items]    
Less Than 12 Months in a Loss Position 26  
Total Unrealized Loss 26  
Estimated Fair Value 3,991  
State and Muncipal Securities    
Marketable Securities [Line Items]    
Less Than 12 Months in a Loss Position   5
Total Unrealized Loss   5
Estimated Fair Value   417
Mortgage-Backed Securities and Collateralized Mortgage Obligations    
Marketable Securities [Line Items]    
Less Than 12 Months in a Loss Position   879
Greater Than 12 Months in a Loss Position 769  
Total Unrealized Loss 769 879
Estimated Fair Value 16,001 18,376
U.S. Treasury Bonds    
Marketable Securities [Line Items]    
Less Than 12 Months in a Loss Position   2,049
Total Unrealized Loss   2,049
Estimated Fair Value   98,518
Corporate Bonds    
Marketable Securities [Line Items]    
Less Than 12 Months in a Loss Position 128 3,415
Greater Than 12 Months in a Loss Position 5,541  
Total Unrealized Loss 5,669 3,415
Estimated Fair Value $ 64,143 $ 50,413
v3.24.0.1
Investment Securities Available for Sale - Additional Information (Details)
 12 Months Ended
Dec. 31, 2023
USD ($)
Security
Investment
Dec. 31, 2022
Security
Investment
Investments, Debt and Equity Securities [Abstract]    
Number of unrealized loss positions | Investment 37 35
Allowance for credit losses recognized on available for sale securities in unrealized loss position $ 0  
Number of securities pledged as collateral | Security 0 0
Proceeds from sale of securities $ 13,939,000  
Gross gain from sale of securities 482,000  
Loss on sale of securities $ 0  
v3.24.0.1
Loans and Allowance for Loan Losses - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jan. 01, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts Notes And Loans Receivable [Line Items]          
Total $ 3,638,788   $ 3,107,551    
Allowance for loan losses (37,022) $ (30,351) (30,351) $ (19,295) $ (11,979)
Loans, net 3,601,766   3,077,200    
Real Estate | Non-Farm Non-Residential Owner Occupied          
Accounts Notes And Loans Receivable [Line Items]          
Total 520,822   493,791    
Allowance for loan losses   (3,773)      
Real Estate | Non-Farm Non-Residential Non-Owner Occupied          
Accounts Notes And Loans Receivable [Line Items]          
Total 586,626   506,012    
Allowance for loan losses   (5,741)      
Real Estate | Residential          
Accounts Notes And Loans Receivable [Line Items]          
Total 342,589   308,775    
Allowance for loan losses   (1,064)      
Real Estate | Construction, Development & Other          
Accounts Notes And Loans Receivable [Line Items]          
Total 693,553   567,851    
Allowance for loan losses   (3,053)      
Real Estate | Farmland          
Accounts Notes And Loans Receivable [Line Items]          
Total 30,396   22,820    
Allowance for loan losses   $ (82)      
Commercial & Industrial          
Accounts Notes And Loans Receivable [Line Items]          
Total 1,263,077   1,058,910    
Allowance for loan losses (17,617)   (16,269) (6,500) (3,858)
Consumer          
Accounts Notes And Loans Receivable [Line Items]          
Total 2,555   3,872    
Allowance for loan losses (14)   (6) (6) (35)
Municipal and Other          
Accounts Notes And Loans Receivable [Line Items]          
Total 199,170   145,520    
Allowance for loan losses $ (1,101)   $ (363) $ (332) $ (189)
v3.24.0.1
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2023
Dec. 31, 2020
Accounts Notes And Loans Receivable [Line Items]          
Non-accrual $ 16,649,000 $ 10,963,000      
Loans unaccreted discounts and deferred fees net of deferred costs 11,800,000 7,800,000      
Allowance for credit loss 37,022,000 30,351,000 $ 19,295,000 $ 30,351,000 $ 11,979,000
Amount of interest income collected on impaired loans   368,000 248,000    
Restructured loans subsequent payment default 0        
Outstanding loan balances 3,638,788,000 3,107,551,000      
Amount of income that would have been accrued for loans on non-accrual $ 1,100,000 600,000 500,000    
ASU 2022-02          
Accounts Notes And Loans Receivable [Line Items]          
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true        
Change in Accounting Principle, Accounting Standards Update, Adoption Date Jan. 01, 2023        
Commercial & Industrial          
Accounts Notes And Loans Receivable [Line Items]          
Non-accrual $ 11,018,000 8,390,000      
Allowance for credit loss 17,617,000 16,269,000 $ 6,500,000   $ 3,858,000
Outstanding loan balances 1,263,077,000 $ 1,058,910,000      
Without Deterioration Credit Quality          
Accounts Notes And Loans Receivable [Line Items]          
Non-accrual $ 8,800,000        
v3.24.0.1
Loans and Allowance for Loan Losses - Schedule of Non-accrual and Accruing Past Due Loans, Segregated by Class of Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Accounts Notes And Loans Receivable [Line Items]    
Non-accrual $ 16,649 $ 10,963
Accruing loans past due more than 90 days 670 518
Real Estate | Non-Farm Non-Residential Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Non-accrual 1,211 1,699
Accruing loans past due more than 90 days   157
Real Estate | Non-Farm Non-Residential Non-Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Non-accrual 1,235 296
Real Estate | Residential    
Accounts Notes And Loans Receivable [Line Items]    
Non-accrual 2,938 513
Real Estate | Construction, Development & Other    
Accounts Notes And Loans Receivable [Line Items]    
Non-accrual 247 45
Commercial & Industrial    
Accounts Notes And Loans Receivable [Line Items]    
Non-accrual 11,018 8,390
Accruing loans past due more than 90 days $ 670 361
Consumer    
Accounts Notes And Loans Receivable [Line Items]    
Non-accrual   $ 20
v3.24.0.1
Loans and Allowance for Loan Losses - Schedule of Aging Past Due Loans, Segregated by Class of Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Accounts Notes And Loans Receivable [Line Items]    
Total loans $ 3,638,788 $ 3,107,551
30-59 Days    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 5,297 6,567
60-89 Days    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,543 613
Over 90 Days    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 17,319 11,481
Total Past Due    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 24,159 18,661
Current    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 3,614,629 3,088,890
Real Estate | Non-Farm Non-Residential Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 520,822 493,791
Real Estate | Non-Farm Non-Residential Owner Occupied | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 520,822 493,791
Real Estate | Non-Farm Non-Residential Owner Occupied | 30-59 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans   2,996
Real Estate | Non-Farm Non-Residential Owner Occupied | Over 90 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,211 1,856
Real Estate | Non-Farm Non-Residential Owner Occupied | Total Past Due | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,211 4,852
Real Estate | Non-Farm Non-Residential Owner Occupied | Current | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 519,611 488,939
Real Estate | Non-Farm Non-Residential Non-Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 586,626 506,012
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 586,626 506,012
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | 30-59 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans   132
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | 60-89 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 212  
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Over 90 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,235 296
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Total Past Due | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,447 428
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Current | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 585,179 505,584
Real Estate | Residential    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 342,589 308,775
Real Estate | Residential | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 342,589 308,775
Real Estate | Residential | 30-59 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 312 2,356
Real Estate | Residential | 60-89 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 495  
Real Estate | Residential | Over 90 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 2,938 513
Real Estate | Residential | Total Past Due | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 3,745 2,869
Real Estate | Residential | Current | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 338,844 305,906
Real Estate | Construction, Development & Other    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 693,553 567,851
Real Estate | Construction, Development & Other | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 693,553 567,851
Real Estate | Construction, Development & Other | 30-59 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 428 130
Real Estate | Construction, Development & Other | 60-89 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 177  
Real Estate | Construction, Development & Other | Over 90 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 247 45
Real Estate | Construction, Development & Other | Total Past Due | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 852 175
Real Estate | Construction, Development & Other | Current | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 692,701 567,676
Real Estate | Farmland    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 30,396 22,820
Real Estate | Farmland | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 30,396 22,820
Real Estate | Farmland | Current | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 30,396 22,820
Commercial & Industrial    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,263,077 1,058,910
Commercial & Industrial | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,263,077 1,058,910
Commercial & Industrial | 30-59 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 4,467 791
Commercial & Industrial | 60-89 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 659 613
Commercial & Industrial | Over 90 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 11,688 8,751
Commercial & Industrial | Total Past Due | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 16,814 10,155
Commercial & Industrial | Current | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,246,263 1,048,755
Consumer    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 2,555 3,872
Consumer | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 2,555 3,872
Consumer | 30-59 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 2  
Consumer | Over 90 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans   20
Consumer | Total Past Due | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 2 20
Consumer | Current | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 2,553 3,852
Municipal and Other    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 199,170 145,520
Municipal and Other | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 199,170 145,520
Municipal and Other | 30-59 Days | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 88 162
Municipal and Other | Total Past Due | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 88 162
Municipal and Other | Current | With or Without Deterioration Credit Quality    
Accounts Notes And Loans Receivable [Line Items]    
Total loans $ 199,082 $ 145,358
v3.24.0.1
Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructuring (Details) - Commercial & Industrial
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Loan
Accounts Notes And Loans Receivable [Line Items]  
Number of loans | Loan 3
Post- restructuring recorded investment $ 6,970
Payment deferral 63
Combined rate and payment deferral $ 63
v3.24.0.1
Loans and Allowance for Loan Losses - Schedule of Impaired Loans by Class of Loans (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Accounts Notes And Loans Receivable [Line Items]  
Unpaid contractual principal balance $ 19,708
Recorded investment with no allowance 15,502
Recorded investment with allowance 4,213
Total recorded investment 19,715
Related allowance 1,600
Average recorded investment during year 18,659
Real Estate | Non-Farm Non-Residential Owner Occupied  
Accounts Notes And Loans Receivable [Line Items]  
Unpaid contractual principal balance 1,694
Recorded investment with no allowance 1,699
Total recorded investment 1,699
Average recorded investment during year 1,751
Real Estate | Non-Farm Non-Residential Non-Owner Occupied  
Accounts Notes And Loans Receivable [Line Items]  
Unpaid contractual principal balance 5,497
Recorded investment with no allowance 5,496
Total recorded investment 5,496
Average recorded investment during year 5,563
Real Estate | Residential  
Accounts Notes And Loans Receivable [Line Items]  
Unpaid contractual principal balance 516
Recorded investment with no allowance 513
Total recorded investment 513
Average recorded investment during year 524
Real Estate | Construction, Development & Other  
Accounts Notes And Loans Receivable [Line Items]  
Unpaid contractual principal balance 40
Recorded investment with no allowance 40
Total recorded investment 40
Average recorded investment during year 51
Commercial & Industrial  
Accounts Notes And Loans Receivable [Line Items]  
Unpaid contractual principal balance 11,942
Recorded investment with no allowance 7,734
Recorded investment with allowance 4,213
Total recorded investment 11,947
Related allowance 1,600
Average recorded investment during year 10,749
Consumer  
Accounts Notes And Loans Receivable [Line Items]  
Unpaid contractual principal balance 19
Recorded investment with no allowance 20
Total recorded investment 20
Average recorded investment during year $ 21
v3.24.0.1
Loans and Allowance for Credit Losses - Summary of Internal Ratings of Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Accounts Notes And Loans Receivable [Line Items]    
Total loans $ 3,638,788 $ 3,107,551
Pass    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 3,567,084 3,077,244
Special Mention    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 47,344 12,985
Substandard    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 24,038 17,322
Doubtful    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 322  
Real Estate | Non-Farm Non-Residential Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 520,822 493,791
Real Estate | Non-Farm Non-Residential Owner Occupied | Pass    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 510,811 487,633
Real Estate | Non-Farm Non-Residential Owner Occupied | Special Mention    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 5,517 1,885
Real Estate | Non-Farm Non-Residential Owner Occupied | Substandard    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 4,494 4,273
Real Estate | Non-Farm Non-Residential Non-Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 586,626 506,012
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Pass    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 580,981 498,987
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Special Mention    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 4,409 228
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Substandard    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,236 6,797
Real Estate | Residential    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 342,589 308,775
Real Estate | Residential | Pass    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 338,619 307,881
Real Estate | Residential | Special Mention    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 538  
Real Estate | Residential | Substandard    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 3,432 894
Real Estate | Construction, Development & Other    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 693,553 567,851
Real Estate | Construction, Development & Other | Pass    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 692,098 559,186
Real Estate | Construction, Development & Other | Special Mention    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,208 8,620
Real Estate | Construction, Development & Other | Substandard    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 247 45
Real Estate | Farmland    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 30,396 22,820
Real Estate | Farmland | Pass    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 29,547 22,820
Real Estate | Farmland | Substandard    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 849  
Commercial & Industrial    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,263,077 1,058,910
Commercial & Industrial | Pass    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 1,213,303 1,051,365
Commercial & Industrial | Special Mention    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 35,672 2,252
Commercial & Industrial | Substandard    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 13,780 5,293
Commercial & Industrial | Doubtful    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 322  
Consumer    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 2,555 3,872
Consumer | Pass    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 2,555 3,852
Consumer | Substandard    
Accounts Notes And Loans Receivable [Line Items]    
Total loans   20
Municipal and Other    
Accounts Notes And Loans Receivable [Line Items]    
Total loans 199,170 145,520
Municipal and Other | Pass    
Accounts Notes And Loans Receivable [Line Items]    
Total loans $ 199,170 $ 145,520
v3.24.0.1
Loans and Allowance for Credit Losses - Summary of Loans by Risk Grades, Loan Class and Vintage (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 $ 728,220 $ 1,101,655
2022 670,826 786,951
2021 630,164 186,744
2020 140,839 114,467
2019 89,901 61,166
Prior Years 74,864 61,821
Revolving Loans Amortized Cost Basis 1,303,974 794,747
Total Loans 3,638,788 3,107,551
Current period gross charge-offs, 2023 (10)  
Current period gross charge-offs, 2022 (6) (18)
Current period gross charge-offs, 2021 (2)  
Current period gross charge-offs, 2020 (183)  
Current period gross charge-offs, 2019 (1,523)  
Current period gross charge-offs, Prior Years (139) (462)
Current period gross charge-offs, revolving loans amortized cost basis   (752)
Current period gross charge-offs (1,863) (1,232)
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total Loans 3,567,084 3,077,244
Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total Loans 47,344 12,985
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total Loans 24,038 17,322
Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total Loans 322  
Real Estate | Non-Farm Non-Residential Owner Occupied    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 55,864 183,187
2022 182,167 128,140
2021 130,636 78,148
2020 70,984 45,289
2019 35,629 27,429
Prior Years 38,092 27,335
Revolving Loans Amortized Cost Basis 7,450 4,263
Total Loans 520,822 493,791
Real Estate | Non-Farm Non-Residential Owner Occupied | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 55,172 182,294
2022 179,776 125,782
2021 127,020 78,148
2020 70,984 43,076
2019 33,439 27,010
Prior Years 37,433 27,060
Revolving Loans Amortized Cost Basis 6,987 4,263
Total Loans 510,811 487,633
Real Estate | Non-Farm Non-Residential Owner Occupied | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 535  
2022 2,350 1,885
2021 2,632  
Total Loans 5,517 1,885
Real Estate | Non-Farm Non-Residential Owner Occupied | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 157 893
2022 41 473
2021 984  
2020   2,213
2019 2,190 419
Prior Years 659 275
Revolving Loans Amortized Cost Basis 463  
Total Loans 4,494 4,273
Real Estate | Non-Farm Non-Residential Non-Owner Occupied    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 109,281 188,854
2022 180,142 198,076
2021 212,484 39,293
2020 26,771 26,251
2019 23,112 20,850
Prior Years 26,634 22,711
Revolving Loans Amortized Cost Basis 8,202 9,977
Total Loans 586,626 506,012
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 105,084 188,662
2022 180,054 197,972
2021 212,484 39,065
2020 26,559 21,051
2019 23,112 20,850
Prior Years 25,486 21,410
Revolving Loans Amortized Cost Basis 8,202 9,977
Total Loans 580,981 498,987
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 4,197  
2021   228
2020 212  
Total Loans 4,409 228
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023   192
2022 88 104
2020   5,200
Prior Years 1,148 1,301
Total Loans 1,236 6,797
Real Estate | Residential    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 100,695 121,652
2022 112,391 131,802
2021 86,554 23,149
2020 19,622 13,534
2019 10,027 6,115
Prior Years 7,283 8,966
Revolving Loans Amortized Cost Basis 6,017 3,557
Total Loans 342,589 308,775
Real Estate | Residential | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 97,867 121,652
2022 112,138 130,924
2021 86,117 23,149
2020 19,178 13,534
2019 10,027 6,115
Prior Years 7,275 8,950
Revolving Loans Amortized Cost Basis 6,017 3,557
Total Loans 338,619 307,881
Real Estate | Residential | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 94  
2020 444  
Total Loans 538  
Real Estate | Residential | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 2,734  
2022 253 878
2021 437  
Prior Years 8 16
Total Loans 3,432 894
Real Estate | Construction, Development & Other    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 137,132 113,301
2022 110,486 119,192
2021 57,146 1,236
2020 785 291
2019 86 70
Prior Years 532 634
Revolving Loans Amortized Cost Basis 387,386 333,127
Total Loans 693,553 567,851
Real Estate | Construction, Development & Other | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 136,888 113,261
2022 110,486 110,572
2021 55,938 1,236
2020 785 291
2019 86 70
Prior Years 529 629
Revolving Loans Amortized Cost Basis 387,386 333,127
Total Loans 692,098 559,186
Real Estate | Construction, Development & Other | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022   8,620
2021 1,208  
Total Loans 1,208 8,620
Real Estate | Construction, Development & Other | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 244 40
Prior Years 3 5
Total Loans 247 45
Real Estate | Farmland    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 11,030 12,671
2022 12,177 2,736
2021 2,070 1,233
2020 96 3,820
2019 3,619 1,216
Prior Years 818 553
Revolving Loans Amortized Cost Basis 586 591
Total Loans 30,396 22,820
Real Estate | Farmland | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 11,030 12,671
2022 11,328 2,736
2021 2,070 1,233
2020 96 3,820
2019 3,619 1,216
Prior Years 818 553
Revolving Loans Amortized Cost Basis 586 591
Total Loans 29,547 22,820
Real Estate | Farmland | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 849  
Total Loans 849  
Commercial & Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 226,159 404,623
2022 57,387 180,078
2021 108,067 35,805
2020 18,586 22,242
2019 16,296 5,049
Prior Years 1,458 1,509
Revolving Loans Amortized Cost Basis 835,124 409,604
Total Loans 1,263,077 1,058,910
Current period gross charge-offs, 2020 (181)  
Current period gross charge-offs, 2019 (1,523)  
Current period gross charge-offs, Prior Years (120) (462)
Current period gross charge-offs, revolving loans amortized cost basis   (752)
Current period gross charge-offs (1,824) (1,214)
Commercial & Industrial | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 221,392 402,799
2022 49,536 177,599
2021 79,690 34,531
2020 16,843 20,509
2019 14,576 4,929
Prior Years 1,321 1,394
Revolving Loans Amortized Cost Basis 829,945 409,604
Total Loans 1,213,303 1,051,365
Commercial & Industrial | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 4,284 1,329
2022 4,068 700
2021 23,916 132
2020 467  
2019 21  
Prior Years 55 91
Revolving Loans Amortized Cost Basis 2,861  
Total Loans 35,672 2,252
Commercial & Industrial | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 483 495
2022 3,783 1,779
2021 4,461 1,142
2020 1,276 1,733
2019 1,377 120
Prior Years 82 24
Revolving Loans Amortized Cost Basis 2,318  
Total Loans 13,780 5,293
Commercial & Industrial | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2019 322  
Total Loans 322  
Consumer    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,061 1,550
2022 670 1,224
2021 147 338
2020 183 199
2019 121 25
Prior Years 33 113
Revolving Loans Amortized Cost Basis 340 423
Total Loans 2,555 3,872
Current period gross charge-offs, Prior Years (19)  
Current period gross charge-offs (19)  
Consumer | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,061 1,550
2022 670 1,224
2021 147 338
2020 183 199
2019 121 25
Prior Years 33 93
Revolving Loans Amortized Cost Basis 340 423
Total Loans 2,555 3,852
Consumer | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Prior Years   20
Total Loans   20
Municipal and Other    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 86,998 75,817
2022 15,406 25,703
2021 33,060 7,542
2020 3,812 2,841
2019 1,011 412
Prior Years 14  
Revolving Loans Amortized Cost Basis 58,869 33,205
Total Loans 199,170 145,520
Current period gross charge-offs, 2023 (10)  
Current period gross charge-offs, 2022 (6) (18)
Current period gross charge-offs, 2021 (2)  
Current period gross charge-offs, 2020 (2)  
Current period gross charge-offs (20) (18)
Municipal and Other | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 86,998 75,817
2022 15,406 25,703
2021 33,060 7,542
2020 3,812 2,841
2019 1,011 412
Prior Years 14  
Revolving Loans Amortized Cost Basis 58,869 33,205
Total Loans $ 199,170 $ 145,520
v3.24.0.1
Loans and Allowance for Credit Losses - Summary of Allowance for Credit Losses on Loans by Portfolio Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jan. 01, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss $ 37,022 $ 30,351 $ 30,351 $ 19,295 $ 11,979
Modeled Expected Credit Losses          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 17,094        
Q-Factor and Other Qualitative Adjustments          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 15,532        
Specific Allocations          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 4,396        
Real Estate | Non-Farm Non-Residential Owner Occupied          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 4,311   3,773 3,456 2,608
Real Estate | Non-Farm Non-Residential Owner Occupied | Modeled Expected Credit Losses          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 2,324        
Real Estate | Non-Farm Non-Residential Owner Occupied | Q-Factor and Other Qualitative Adjustments          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 1,952        
Real Estate | Non-Farm Non-Residential Owner Occupied | Specific Allocations          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 35        
Real Estate | Non-Farm Non-Residential Non-Owner Occupied          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 5,541   5,741 5,935 3,107
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Modeled Expected Credit Losses          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 2,569        
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Q-Factor and Other Qualitative Adjustments          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 2,321        
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Specific Allocations          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 651        
Real Estate | Residential          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 2,341   1,064 957 1,218
Real Estate | Residential | Modeled Expected Credit Losses          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 1,474        
Real Estate | Residential | Q-Factor and Other Qualitative Adjustments          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 867        
Real Estate | Construction, Development & Other          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 5,853   3,053 2,064 932
Real Estate | Construction, Development & Other | Modeled Expected Credit Losses          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 3,557        
Real Estate | Construction, Development & Other | Q-Factor and Other Qualitative Adjustments          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 2,296        
Real Estate | Farmland          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 244   82 45 32
Real Estate | Farmland | Modeled Expected Credit Losses          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 166        
Real Estate | Farmland | Q-Factor and Other Qualitative Adjustments          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 78        
Commercial & Industrial          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 17,617   16,269 6,500 3,858
Commercial & Industrial | Modeled Expected Credit Losses          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 6,400        
Commercial & Industrial | Q-Factor and Other Qualitative Adjustments          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 7,507        
Commercial & Industrial | Specific Allocations          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 3,710        
Consumer          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 14   6 6 35
Consumer | Modeled Expected Credit Losses          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 8        
Consumer | Q-Factor and Other Qualitative Adjustments          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 6        
Municipal and Other          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 1,101   $ 363 $ 332 $ 189
Municipal and Other | Modeled Expected Credit Losses          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss 596        
Municipal and Other | Q-Factor and Other Qualitative Adjustments          
Financing Receivable Allowance For Credit Losses [Line Items]          
Allowance for credit loss $ 505        
v3.24.0.1
Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable Allowance For Credit Losses [Line Items]      
Beginning balance $ 30,351 $ 19,295 $ 11,979
Provision for credit losses on loans 3,908 12,200 9,923
Charge-offs (1,863) (1,232) (2,934)
Recoveries 626 88 327
Ending balance 37,022 30,351 19,295
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13      
Financing Receivable Allowance For Credit Losses [Line Items]      
Ending balance 4,000    
Real Estate | Non-Farm Non-Residential Owner Occupied      
Financing Receivable Allowance For Credit Losses [Line Items]      
Beginning balance 3,773 3,456 2,608
Provision for credit losses on loans (786) 317 848
Ending balance 4,311 3,773 3,456
Real Estate | Non-Farm Non-Residential Owner Occupied | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13      
Financing Receivable Allowance For Credit Losses [Line Items]      
Ending balance 1,324    
Real Estate | Non-Farm Non-Residential Non-Owner Occupied      
Financing Receivable Allowance For Credit Losses [Line Items]      
Beginning balance 5,741 5,935 3,107
Provision for credit losses on loans (2,810) (194) 2,828
Ending balance 5,541 5,741 5,935
Real Estate | Non-Farm Non-Residential Non-Owner Occupied | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13      
Financing Receivable Allowance For Credit Losses [Line Items]      
Ending balance 2,610    
Real Estate | Residential      
Financing Receivable Allowance For Credit Losses [Line Items]      
Beginning balance 1,064 957 1,218
Provision for credit losses on loans 281 107 (261)
Ending balance 2,341 1,064 957
Real Estate | Residential | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13      
Financing Receivable Allowance For Credit Losses [Line Items]      
Ending balance 996    
Real Estate | Construction, Development & Other      
Financing Receivable Allowance For Credit Losses [Line Items]      
Beginning balance 3,053 2,064 932
Provision for credit losses on loans 1,192 989 1,132
Ending balance 5,853 3,053 2,064
Real Estate | Construction, Development & Other | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13      
Financing Receivable Allowance For Credit Losses [Line Items]      
Ending balance 1,608    
Real Estate | Farmland      
Financing Receivable Allowance For Credit Losses [Line Items]      
Beginning balance 82 45 32
Provision for credit losses on loans 150 37 13
Ending balance 244 82 45
Real Estate | Farmland | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13      
Financing Receivable Allowance For Credit Losses [Line Items]      
Ending balance 12    
Commercial & Industrial      
Financing Receivable Allowance For Credit Losses [Line Items]      
Beginning balance 16,269 6,500 3,858
Provision for credit losses on loans 5,449 10,911 5,233
Charge-offs (1,824) (1,214) (2,914)
Recoveries 626 72 323
Ending balance 17,617 16,269 6,500
Commercial & Industrial | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13      
Financing Receivable Allowance For Credit Losses [Line Items]      
Ending balance (2,903)    
Consumer      
Financing Receivable Allowance For Credit Losses [Line Items]      
Beginning balance 6 6 35
Provision for credit losses on loans 23 5 (30)
Charge-offs (19) (18)  
Recoveries   13 1
Ending balance 14 6 6
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13      
Financing Receivable Allowance For Credit Losses [Line Items]      
Ending balance 4    
Municipal and Other      
Financing Receivable Allowance For Credit Losses [Line Items]      
Beginning balance 363 332 189
Provision for credit losses on loans 409 28 160
Charge-offs (20)   (20)
Recoveries   3 3
Ending balance 1,101 $ 363 $ 332
Municipal and Other | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13      
Financing Receivable Allowance For Credit Losses [Line Items]      
Ending balance $ 349    
v3.24.0.1
Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses for Loans Evaluated both Individually and Collectively for Expected Credit Losses (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jan. 01, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts Notes And Loans Receivable [Line Items]          
Allowance for loan losses, individually evaluated for credit losses $ 4,396   $ 1,600    
Allowance for loan losses, collectively evaluated for credit losses 32,626   28,751    
Allowance for loan losses, total 37,022 $ 30,351 30,351 $ 19,295 $ 11,979
Real Estate | Non-Farm Non-Residential Owner Occupied          
Accounts Notes And Loans Receivable [Line Items]          
Allowance for loan losses, individually evaluated for credit losses 35        
Allowance for loan losses, collectively evaluated for credit losses 4,276   3,773    
Allowance for loan losses, total 4,311   3,773 3,456 2,608
Real Estate | Non-Farm Non-Residential Non-Owner Occupied          
Accounts Notes And Loans Receivable [Line Items]          
Allowance for loan losses, individually evaluated for credit losses 651        
Allowance for loan losses, collectively evaluated for credit losses 4,890   5,741    
Allowance for loan losses, total 5,541   5,741 5,935 3,107
Real Estate | Residential          
Accounts Notes And Loans Receivable [Line Items]          
Allowance for loan losses, collectively evaluated for credit losses 2,341   1,064    
Allowance for loan losses, total 2,341   1,064 957 1,218
Real Estate | Construction, Development & Other          
Accounts Notes And Loans Receivable [Line Items]          
Allowance for loan losses, collectively evaluated for credit losses 5,853   3,053    
Allowance for loan losses, total 5,853   3,053 2,064 932
Real Estate | Farmland          
Accounts Notes And Loans Receivable [Line Items]          
Allowance for loan losses, collectively evaluated for credit losses 244   82    
Allowance for loan losses, total 244   82 45 32
Commercial & Industrial          
Accounts Notes And Loans Receivable [Line Items]          
Allowance for loan losses, individually evaluated for credit losses 3,710   1,600    
Allowance for loan losses, collectively evaluated for credit losses 13,907   14,669    
Allowance for loan losses, total 17,617   16,269 6,500 3,858
Consumer          
Accounts Notes And Loans Receivable [Line Items]          
Allowance for loan losses, collectively evaluated for credit losses 14   6    
Allowance for loan losses, total 14   6 6 35
Municipal and Other          
Accounts Notes And Loans Receivable [Line Items]          
Allowance for loan losses, collectively evaluated for credit losses 1,101   363    
Allowance for loan losses, total $ 1,101   $ 363 $ 332 $ 189
v3.24.0.1
Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses on Basis of Expected Credit Loss Methodology (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses individually $ 18,974  
Total Loans 3,638,788 $ 3,107,551
Loan Impairment Methodology    
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses individually 18,974 19,715
Loans evaluated for credit losses collectively 3,619,814 3,087,836
Total Loans 3,638,788 3,107,551
Loan Impairment Methodology | Consumer    
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses individually   20
Loans evaluated for credit losses collectively 2,555 3,852
Total Loans 2,555 3,872
Loan Impairment Methodology | Real Estate Loans | Non-Farm Non-Residential Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses individually 1,054 1,699
Loans evaluated for credit losses collectively 519,768 492,092
Total Loans 520,822 493,791
Loan Impairment Methodology | Real Estate Loans | Non-Farm Non-Residential Non-Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses individually 1,393 5,496
Loans evaluated for credit losses collectively 585,233 500,516
Total Loans 586,626 506,012
Loan Impairment Methodology | Real Estate Loans | Residential    
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses individually 2,940 513
Loans evaluated for credit losses collectively 339,649 308,262
Total Loans 342,589 308,775
Loan Impairment Methodology | Real Estate Loans | Construction, Development & Other    
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses individually 247 40
Loans evaluated for credit losses collectively 693,306 567,811
Total Loans 693,553 567,851
Loan Impairment Methodology | Real Estate Loans | Farmland    
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses collectively 30,396 22,820
Total Loans 30,396 22,820
Loan Impairment Methodology | Commercial And Industrial Loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses individually 13,340 11,947
Loans evaluated for credit losses collectively 1,249,737 1,046,963
Total Loans 1,263,077 1,058,910
Loan Impairment Methodology | Municipal and Other    
Accounts Notes And Loans Receivable [Line Items]    
Loans evaluated for credit losses collectively 199,170 145,520
Total Loans $ 199,170 $ 145,520
v3.24.0.1
Loans and Allowance for Loan Losses - Schedule of Allowance for Credit Losses on Amortized Cost Basis of Collateral Dependent Assessed Individually for Credit Losses (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans $ 18,974
Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 5,846
Business Assets  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 12,439
Other  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 689
Commercial & Industrial  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 13,340
Commercial & Industrial | Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 212
Commercial & Industrial | Business Assets  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 12,439
Commercial & Industrial | Other  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 689
Non-Farm Non-Residential Owner Occupied | Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 1,054
Non-Farm Non-Residential Owner Occupied | Real Estate | Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 1,054
Non-Farm Non-Residential Non-Owner Occupied | Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 1,393
Non-Farm Non-Residential Non-Owner Occupied | Real Estate | Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 1,393
Residential | Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 2,940
Residential | Real Estate | Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 2,940
Construction, Development & Other | Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans 247
Construction, Development & Other | Real Estate | Real Estate  
Accounts Notes And Loans Receivable [Line Items]  
Collateral dependent loans $ 247
v3.24.0.1
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property Plant And Equipment [Line Items]    
Premises and equipment, gross $ 42,521 $ 39,151
Accumulated depreciation (13,967) (10,489)
Premises and equipment, Net $ 28,554 28,662
Building and Building Improvements    
Property Plant And Equipment [Line Items]    
Premises and equipment, useful life 30 years  
Premises and equipment, gross $ 13,703 13,605
Building and Building Improvements | Minimum    
Property Plant And Equipment [Line Items]    
Premises and equipment, useful life 3 years  
Building and Building Improvements | Maximum    
Property Plant And Equipment [Line Items]    
Premises and equipment, useful life 10 years  
Land    
Property Plant And Equipment [Line Items]    
Premises and equipment, gross $ 3,894 3,894
Equipment    
Property Plant And Equipment [Line Items]    
Premises and equipment, gross $ 6,277 5,757
Equipment | Minimum    
Property Plant And Equipment [Line Items]    
Premises and equipment, useful life 3 years  
Equipment | Maximum    
Property Plant And Equipment [Line Items]    
Premises and equipment, useful life 5 years  
Leasehold Improvements    
Property Plant And Equipment [Line Items]    
Premises and equipment, gross $ 11,678 9,761
Leasehold Improvements | Minimum    
Property Plant And Equipment [Line Items]    
Premises and equipment, useful life 3 years  
Leasehold Improvements | Maximum    
Property Plant And Equipment [Line Items]    
Premises and equipment, useful life 10 years  
Furniture and Fixtures    
Property Plant And Equipment [Line Items]    
Premises and equipment, gross $ 4,666 4,170
Furniture and Fixtures | Minimum    
Property Plant And Equipment [Line Items]    
Premises and equipment, useful life 3 years  
Furniture and Fixtures | Maximum    
Property Plant And Equipment [Line Items]    
Premises and equipment, useful life 5 years  
Construction in Progress    
Property Plant And Equipment [Line Items]    
Premises and equipment, gross $ 2,303 $ 1,964
v3.24.0.1
Premises and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 3.5 $ 2.6 $ 1.7
v3.24.0.1
Deposits - Schedule of Deposit Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Transaction accounts:    
Noninterest bearing demand accounts $ 459,553 $ 486,114
Interest bearing demand accounts 2,842,668 2,498,325
Savings 24,998 35,677
Total transaction accounts 3,327,219 3,020,116
Time deposits 475,929 216,030
Total deposits $ 3,803,148 $ 3,236,146
v3.24.0.1
Deposits - Additional Information (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Deposits [Abstract]    
Time deposits in denominations of $250,000 or more $ 315,400,000 $ 135,500,000
Aggregate amount of demand time deposits overdrafts 101,000 31,000
Deposits received from related parties $ 19,600,000 $ 16,000,000
v3.24.0.1
Deposit - Schedule Maturities of time deposit (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Maturities of Time Deposits [Abstract]    
2024 $ 392,822  
2025 47,504  
2026 31,845  
2027 1,149  
2028 and thereafter 2,609  
Time deposits $ 475,929 $ 216,030
v3.24.0.1
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]                      
Current income tax expense                 $ 11,102 $ 5,759 $ 3,439
Deferred income tax benefit                 (2,891) (1,250) (380)
Income tax expense as reported $ 2,285 $ 1,431 $ 2,250 $ 2,245 $ 1,802 $ 1,495 $ 604 $ 608 $ 8,211 $ 4,509 $ 3,059
v3.24.0.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]                      
Income tax provision expense $ 2,285 $ 1,431 $ 2,250 $ 2,245 $ 1,802 $ 1,495 $ 604 $ 608 $ 8,211 $ 4,509 $ 3,059
Effective tax rate                 19.70% 19.50% 21.10%
Statutory income tax rate                 21.00%    
v3.24.0.1
Income Taxes - Reconciliation of Reported Income Tax Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]                      
Income tax expense computed at statutory rate                 $ 8,738 $ 4,865 $ 3,042
Stock-based compensation                 114 117 93
Bank-owned life insurance                 (441) (276) (119)
Non-deductible meals, entertainment, and dues                 192 91 57
Tax-exempt income                 (535) (283) (2)
Section 291 depreciation recapture                 211 78 1
Other, net                 (68) (83) (13)
Income tax expense as reported $ 2,285 $ 1,431 $ 2,250 $ 2,245 $ 1,802 $ 1,495 $ 604 $ 608 $ 8,211 $ 4,509 $ 3,059
v3.24.0.1
Income Taxes - Summary of Deferred Taxes (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Allowance for loan losses $ 8,451 $ 6,352
Accrued expenses 331 264
Stock options and restricted stock 213 114
Phantom stock 68  
Loan purchase mark-to-mark 77 62
Deferred loan origination fees 2,405 1,564
Net unrealized loss on securities available for sale 841 1,271
Non-accrual interest 226 241
Other 223 124
Total deferred tax assets 12,835 9,992
Deferred tax liabilities:    
Premises and equipment 2,007 2,468
Goodwill and core deposit intangibles 206 237
Investments 87 68
Unrealized gain on derivatives 1,089 712
Prepaid expenses and other 219 204
Total deferred tax liabilities 3,608 3,689
Net deferred tax asset $ 9,227 $ 6,303
v3.24.0.1
FHLB Advances and Other Borrowings - Additional Information (Details) - USD ($)
 12 Months Ended
Sep. 10, 2022
Mar. 31, 2022
Mar. 10, 2021
Dec. 31, 2023
Dec. 31, 2022
Federal Home Loan Bank Advances [Line Items]          
Revolving line of credit facility       $ 38,875,000 $ 30,875,000
Borrowing capacity available under federal home loan bank stock and real estate loans       565,100,000 719,100,000
Borrowing capacity available under federal reserve borrower in custody loan pledge arrangement       1,200,000,000  
Letters Of credit amount issued       463,100,000  
Federal funds       0  
Maximum borrowing capacity under federal fund line of credit       $ 36,500,000 36,500,000
FHLB advances outstanding         0
Minimum          
Federal Home Loan Bank Advances [Line Items]          
Federal home loan bank letter of credit expiration date       2024-01  
Maximum          
Federal Home Loan Bank Advances [Line Items]          
Federal home loan bank letter of credit expiration date       2025-07  
Line of Credit          
Federal Home Loan Bank Advances [Line Items]          
Federal reserve borrower in custody loan pledge arrangement amount of advances outstanding       $ 0  
Senior Secured Promissory Notes          
Federal Home Loan Bank Advances [Line Items]          
Promissory note       $ 38,900,000 30,900,000
Promissory note maturity date Sep. 10, 2024        
Interest rate 5.00%        
Frequency of periodic interest payment Interest is payable quarterly on the 10th day of March, June, September and December through maturity date of September 10, 2024.     Interest was payable quarterly on the 10th day of March, June, September and December through maturity date.  
Secured percentage of debt       100.00%  
Senior Secured Promissory Notes | US Prime Rate          
Federal Home Loan Bank Advances [Line Items]          
Interest rate     4.00%    
Debt instrument, basis spread on variable rate 0.50%        
Senior Secured Promissory Note One          
Federal Home Loan Bank Advances [Line Items]          
Matured and renewed note amount $ 30,900,000        
Line of credit facility, current borrowing capacity $ 50,000,000        
Subordinated Notes due 2032          
Federal Home Loan Bank Advances [Line Items]          
Promissory note maturity date       Apr. 01, 2032  
Debt instrument fixed interest rate   5.50%   5.50%  
Frequency of periodic interest payment       the Company will pay interest on the Notes semi-annually in arrears on April 1 and October 1 of each year, commencing on October 1, 2022, at a fixed interest rate of 5.500% per annum.  
Subordinated notes aggregate principal amount   $ 82,300,000      
Unamortized debt issuance costs   $ 2,100,000   $ 1,700,000 $ 1,900,000
Outstanding principal       $ 82,300,000  
Amortization period for debt issuance costs       10 years  
Deb instrument, redemption price       100.00%  
Debt redemption start date       Apr. 01, 2027  
Subordinated notes description       The floating interest rate will be reset quarterly, and the interest rate for any Floating Rate Period shall be equal to the then-current Three-Month Term Secured Overnight Financing Rate (“SOFR”) plus 315 basis points for each quarterly interest period during the Floating Rate Period. Interest payable on the Notes during the Floating Rate Period will be paid quarterly in arrears on January 1, April 1, July 1 and October 1, of each year, commencing on July 1, 2027. Notwithstanding the foregoing, in the event that Three-Month Term SOFR is less than zero, then Three-Month Term SOFR rate shall be deemed to be zero.  
Subordinated notes variable interest rate percentage       plus 315 basis points  
Subordinated notes commencement date       Oct. 01, 2022  
Debt instrument purchasers price equal to face amount   100.00%      
v3.24.0.1
FHLB Advances and Other Borrowings - Summary of Contractual Maturities of FHLB Advances and Other Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Federal Home Loan Banks [Abstract]    
Senior Debt Borrowings, Total $ 38,875 $ 30,875
Subordinated Debt Borrowings, Total $ 80,553 $ 80,348
v3.24.0.1
Stock Options and Warrants - Additional Information (Details)
 1 Months Ended 12 Months Ended
May 20, 2021
shares
Jan. 01, 2020
shares
Jul. 31, 2018
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
May 25, 2023
$ / shares
Sep. 30, 2022
$ / shares
shares
Jul. 01, 2022
$ / shares
Jan. 01, 2021
shares
May 29, 2019
shares
Dec. 31, 2017
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Expiration period   10 years                    
Exchange ratio   0.89                    
Vested options outstanding   109,908                    
Converted options of common stock   97,821                    
Remaining available for grant for future awards       0                
Risk-free interest rate minimum       3.42% 1.45% 0.70%            
Risk-free interest rate maximum       4.75% 4.17% 1.48%            
Dividend yield rate       0.00% 0.00% 0.00%            
Estimated volatility rate           10.00%            
Estimated volatility rate, minimum       17.81% 10.00%              
Estimated volatility rate, maximum       22.70% 38.00%              
Expected lives of options       7 years 6 months 7 years 6 months 7 years 6 months            
Stock-based compensation expense | $       $ 472,000 $ 646,000 $ 552,000            
Unrecognized compensation costs related non-vested stock | $       1,500,000                
Total intrinsic value of outstanding in-the-money stock options | $       3,100,000 2,100,000              
Intrinsic value outstanding in-the-money exercisable stock options | $       2,600,000 1,800,000              
Intrinsic value of stock options exercised | $       $ 2,000 236,000 506,000            
Stock options exercised | $         $ 672,000 $ 995,000            
Weighted average remaining contractual life of outstanding stock warrants       5 years 9 months                
Preferred stock, par value | $ / shares       $ 1 $ 1   $ 1          
Common stock, par value | $ / shares       $ 1 1   $ 1   $ 1      
Fair value of warrants included in additional-paid-in capital | $       $ 380,000                
Weighted-average grant date fair value of options granted during the period | $ / shares       $ 5.00 6.80 $ 3.15            
Weighted Average Grant Date Fair Value 'Vested during the period | $ / shares       2.90 3.07 $ 3.17            
Series B Preferred Stock                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Preferred stock, par value | $ / shares       1 $ 1              
Private Placement Offering                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Warrants to purchase               175,000        
Warrant exercise price of common stock per share | $ / shares       $ 22.5       $ 22.5        
Private Placement Offering | Series B Preferred Stock                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Preferred stock, par value | $ / shares               1        
Private Placement Offering | Non-Voting Common Stock                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Common stock, par value | $ / shares               $ 1        
Directors, Executive Officers and Other Key Employees                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Expiration period       10 years                
Vesting period       5 years                
RSAs                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Contractual term       10 years                
Stock-based compensation expense | $       $ 1,100,000 $ 629,000 $ 107,000            
Total unrecognized compensation cost related to nonvested restricted stock awards | $       $ 1,300,000                
Warrants Expiring July 1, 2023                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Warrants exercisable year       10 years                
Warrants expires date       Jul. 01, 2023                
Warrants Expiring September 30, 2029                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Warrants exercisable year       7 years                
Warrants expires date       Sep. 30, 2029                
Minimum | Directors, Executive Officers and Other Key Employees                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Granted exercise price | $ / shares       $ 13.95 $ 17.11              
Minimum | RSAs                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Vesting period       2 years                
Maximum | Directors, Executive Officers and Other Key Employees                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Granted exercise price | $ / shares       $ 20.17 $ 25.76              
Maximum | RSAs                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Vesting period       4 years                
2013 Plan                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Number of shares authorized to grant       500,000                
Additional issuance shares                     152,750  
Remaining available for grant for future awards       0                
2019 Plan                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Additional issuance shares 800,000                      
Additional options shares grant in period 500,000                      
Remaining available for grant for future awards       81,384                
2017 Non-Employee Director Stock Option Plan                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Number of shares authorized to grant                       100,000
Additional options shares grant in period     50,000                  
Description of the plan       Options are generally granted with an exercise price equal to the market price of the Company’s stock at the date of the grant. Option awards generally vest based on 5 years of continuous service and have 10-year contractual terms for non-controlling participants as defined by the Director Plan. Other grant terms can vary for controlling participants as defined by the Director Plan.                
Expiration period       10 years                
Remaining available for grant for future awards       13,806                
Vesting period       5 years                
2017 Non-Employee Director Stock Option Plan | Common Stock                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Number of shares authorized to grant     150,000                  
2017 Non-Employee Director Stock Option Plan | Maximum                        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                        
Number of shares authorized to grant                   187,000    
v3.24.0.1
Stock Options and Warrants - Summary of Stock Option Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Stock options grant 45,500 136,000  
Weighted-average grant date fair value of options granted during the period $ 5.00 $ 6.80 $ 3.15
Underlying Options Shares      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Outstanding at beginning of period 1,203,928 1,220,428  
Stock options grant 45,500 136,000  
Forfeited during the period (122,537) (105,167)  
Exercised during the period (868) (47,333)  
Outstanding at the end of period 1,126,023 1,203,928 1,220,428
Options exercisable at end of period 678,053 527,658  
Outstanding at beginning of period $ 18.05 $ 17.83  
Granted during the period 17.37 21.15  
Forfeited during the period 20.89 21.18  
Exercised during the period 15.45 14.38  
Outstanding at the end of period 17.72 18.05 $ 17.83
Options exercisable at end of period 16.33 15.51  
Weighted-average grant date fair value of options granted during the period $ 5.00 $ 6.80  
v3.24.0.1
Stock Options and Warrants - Schedule of Weighted Average Remaining life (Details) - Underlying Options Shares - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Options Outstanding 1,126,023 1,203,928 1,220,428
Weighted Average Remaining Life (years) 6 years 7 days 7 years 21 days  
Options Exercisable 678,053 527,658  
$10.00 - $12.99      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price, Lower Range Limit $ 10.00    
Exercise Price, Upper Range Limit $ 12.99    
Options Outstanding 144,050 146,553  
Weighted Average Remaining Life (years) 11 months 12 days 1 year 11 months 15 days  
Options Exercisable 144,050 146,553  
$13.00 - $16.99      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price, Lower Range Limit $ 13.00    
Exercise Price, Upper Range Limit $ 16.99    
Options Outstanding 436,223 435,175  
Weighted Average Remaining Life (years) 5 years 6 months 21 days 6 years 5 months 12 days  
Options Exercisable 344,353 280,905  
$17.00 - $26.99      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price, Lower Range Limit $ 17.00    
Exercise Price, Upper Range Limit $ 26.99    
Options Outstanding 545,750 622,200  
Weighted Average Remaining Life (years) 7 years 8 months 19 days 8 years 8 months 8 days  
Options Exercisable 189,650 100,200  
v3.24.0.1
Stock Options and Warrants - Schedule of Nonvested Share Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]      
Shares Nonvested at January 1, 676,270 858,670  
Shares Granted during the period 45,500 136,000  
Shares Vested during the period (188,100) (219,900)  
Shares Forfeited during the period (85,700) (98,500)  
Shares Nonvested at end of period 447,970 676,270 858,670
Weighted Average Grant Date Fair Value Nonvested at January 1 $ 3.82 $ 3.15  
Weighted Average Grant Date Fair Value Granted during the period 5.00 6.80 $ 3.15
Weighted Average Grant Date Fair Value 'Vested during the period 2.90 3.07 3.17
Weighted Average Grant Date Fair Value Forfeited during the period 3.54 3.70  
Weighted Average Grant Date Fair Value Nonvested at end of period $ 3.94 $ 3.82 $ 3.15
v3.24.0.1
Stock Options and Warrants - Schedule Of Stock Warrant Activity (Details) - Warrants Expiring September 30, 2029 - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Shares Underlying Warrants Outstanding at beginning of period 179,285 4,285
Shares Underlying Warrants Granted   175,000
Shares Underlying Warrants Exercised (4,285)  
Shares Underlying Warrants Outstanding at end of period 175,000 179,285
Shares Underlying Warrants Exercisable at end of period 175,000 179,285
Weighted Average Exercise Price, Outstanding at beginning of period $ 22.23 $ 11
Weighted Average Exercise Price, Granted   22.5
Weighted Average Exercise Price, Exercised 11  
Weighted Average Exercise Price, Outstanding at end of period 22.5 22.23
Weighted Average Exercise Price, Exercisable at end of period $ 22.5 $ 22.23
v3.24.0.1
Stock Options and Warrants - Summary of Activity for Non-vested RSAs (Details) - RSAs - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Shares Nonvested at beginning of period 76,094 49,750
Shares Granted during the period 75,956 54,424
Shares Vested during the period (34,883) (18,580)
Shares Forfeited during the period (6,943) (9,500)
Shares Nonvested at the end of period 110,224 76,094
Weighted Average Grant Date Fair Value, Nonvested at the beginning of period $ 22.35 $ 24
Weighted Average Grant Date Fair Value, Granted during the period 16.18 21.81
Weighted Average Grant Date Fair Value, Vested during the period 12.88 24
Weighted Average Grant Date Fair Value, Forfeited during the period 21.98 24.67
Weighted Average Grant Date Fair Value, Nonvested at the end of period $ 17.44 $ 22.35
v3.24.0.1
Leases - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Lessee, Lease, Description [Line Items]      
Operating lease ROU asset $ 21,439 $ 17,872  
Lease liability - operating leases $ 22,280 18,209  
Weighted average discount rate 4.60%    
Weighted average remaining lease term 8 years 7 months 20 days    
Operating lease expense $ 4,400 $ 3,400 $ 1,600
Minimum      
Lessee, Lease, Description [Line Items]      
Operating leases term 5 months    
Maximum      
Lessee, Lease, Description [Line Items]      
Operating leases term 144 months    
v3.24.0.1
Leases - Schedule of Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating lease cost $ 4,281 $ 2,804 $ 1,605
Short-term lease cost 149 607  
Total lease cost $ 4,430 $ 3,411 $ 1,605
v3.24.0.1
Leases - Contractual Maturity for Operating Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
2024 $ 3,141  
2025 3,250  
2026 3,323  
2027 3,376  
2028 and thereafter 15,032  
Total undiscounted lease liability 28,122  
Less: Discount on cash flows (4,732)  
Leases signed, but not yet commenced (1,110)  
Total operating lease liability $ 22,280 $ 18,209
v3.24.0.1
Commitments and Contingencies - Additional Information (Details)
Dec. 31, 2023
Minimum  
Lessee, Lease, Description [Line Items]  
Operating leases term 5 months
Maximum  
Lessee, Lease, Description [Line Items]  
Operating leases term 144 months
v3.24.0.1
Financial Instruments With Off Balance Sheet Risk - Schedule of Financial Instruments Outstanding Whose Contract Amounts Represent Credit Risk (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Total $ 1,378,997 $ 1,169,740
Standby Letters of Credit    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Total 26,850 21,728
Commitments to Extend Credit    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Total $ 1,352,147 $ 1,148,012
v3.24.0.1
Financial Instruments With Off Balance Sheet Risk - Additional Information (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Financial Instruments With Off Balance Sheet Risk [Abstract]  
Allowance off-balance sheet credit loss liability $ 2.4
v3.24.0.1
Fair Value Measurements - Additional Information (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collateral dependent loans with carrying values $ 18,974,000  
Collateral dependent loans valuation allowances 4,396,000 $ 1,600,000
Impaired loans with carrying value   19,715,000
Valuation allowances   1,600,000
Net fair value   18,100,000
Foreclosed asset 0 0
Fair value, assets, transfers between levels 0 0
Fair value, liabilities, transfers between levels 0 $ 0
Collateral Pledged    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collateral dependent loans with carrying values 19,000,000  
Collateral dependent loans valuation allowances 4,400,000  
Net fair value $ 14,600,000  
v3.24.0.1
Fair Value Measurements - Summary of Financial Assets and Financial Liabilities Measured at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Securities available for sale:    
Total investment securities available for sale $ 178,087 $ 176,067
Derivative assets:    
Derivative assets 8,828 9,213
Derivative liabilities:    
Derivative liabilities 10,687 9,221
State and Muncipal Securities    
Securities available for sale:    
Total investment securities available for sale   417
U.S. Treasury Bonds    
Securities available for sale:    
Total investment securities available for sale   98,518
Corporate Bonds    
Securities available for sale:    
Total investment securities available for sale 95,563 54,251
Fair Value, Recurring    
Securities available for sale:    
Total investment securities available for sale 178,087 176,067
Derivative assets:    
Derivative assets 8,828 9,213
Derivative liabilities:    
Derivative liabilities 10,687 9,221
Fair Value, Recurring | State and Muncipal Securities    
Securities available for sale:    
Total investment securities available for sale   417
Fair Value, Recurring | U.S. Government And Agency Securities    
Securities available for sale:    
Total investment securities available for sale 3,991  
Fair Value, Recurring | Mortgage-Backed Securities and Other Agency Obligations    
Securities available for sale:    
Total investment securities available for sale 78,533 22,881
Fair Value, Recurring | U.S. Treasury Bonds    
Securities available for sale:    
Total investment securities available for sale   98,518
Fair Value, Recurring | Corporate Bonds    
Securities available for sale:    
Total investment securities available for sale 95,563 54,251
Fair Value, Recurring | Cash Flow Hedges    
Derivative liabilities:    
Derivative liabilities 1,541  
Fair Value, Recurring | Interest Rate Swaps    
Derivative assets:    
Derivative assets 8,774 9,213
Derivative liabilities:    
Derivative liabilities 8,774 9,213
Fair Value, Recurring | Risk Participation Agreements    
Derivative assets:    
Derivative assets 6  
Derivative liabilities:    
Derivative liabilities 20 8
Fair Value, Recurring | Pay-fixed Interest Rate Swaps    
Derivative assets:    
Derivative assets 48  
Derivative liabilities:    
Derivative liabilities 352  
Fair Value, Recurring | Level 2 Inputs    
Securities available for sale:    
Total investment securities available for sale 178,087 176,067
Derivative assets:    
Derivative assets 8,828 9,213
Derivative liabilities:    
Derivative liabilities 10,687 9,221
Fair Value, Recurring | Level 2 Inputs | State and Muncipal Securities    
Securities available for sale:    
Total investment securities available for sale   417
Fair Value, Recurring | Level 2 Inputs | U.S. Government And Agency Securities    
Securities available for sale:    
Total investment securities available for sale 3,991  
Fair Value, Recurring | Level 2 Inputs | Mortgage-Backed Securities and Other Agency Obligations    
Securities available for sale:    
Total investment securities available for sale 78,533 22,881
Fair Value, Recurring | Level 2 Inputs | U.S. Treasury Bonds    
Securities available for sale:    
Total investment securities available for sale   98,518
Fair Value, Recurring | Level 2 Inputs | Corporate Bonds    
Securities available for sale:    
Total investment securities available for sale 95,563 54,251
Fair Value, Recurring | Level 2 Inputs | Cash Flow Hedges    
Derivative liabilities:    
Derivative liabilities 1,541  
Fair Value, Recurring | Level 2 Inputs | Interest Rate Swaps    
Derivative assets:    
Derivative assets 8,774 9,213
Derivative liabilities:    
Derivative liabilities 8,774 9,213
Fair Value, Recurring | Level 2 Inputs | Risk Participation Agreements    
Derivative assets:    
Derivative assets 6  
Derivative liabilities:    
Derivative liabilities 20 $ 8
Fair Value, Recurring | Level 2 Inputs | Pay-fixed Interest Rate Swaps    
Derivative assets:    
Derivative assets 48  
Derivative liabilities:    
Derivative liabilities $ 352  
v3.24.0.1
Fair Value Measurements - Summary of Estimated Fair Values and Carrying Values of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financial assets    
Cash and cash equivalents $ 411,845 $ 332,014
Investment securities available for sale 178,087 176,067
Non-marketable securities 16,041 14,618
Accrued interest receivable 23,120 18,340
Bank-owned life insurance 65,861 60,761
Derivative assets 8,828 9,213
Total assets 4,396,074 3,773,148
Loans, net 3,601,766 3,077,200
Financial liabilities    
Deposits 3,803,148 3,236,146
Accrued interest payable 4,794 2,545
Derivative liabilities 10,687 9,221
Total liabilities 3,984,100 3,391,368
Carrying Value | Level 2 Inputs    
Financial assets    
Cash and cash equivalents 411,845 332,014
Investment securities available for sale 178,087 176,067
Non-marketable securities 16,041 14,618
Accrued interest receivable 23,120 18,340
Bank-owned life insurance 65,861 60,761
Derivative assets 8,828 9,213
Total assets 703,782 611,013
Financial liabilities    
Deposits 3,803,148 3,236,146
Accrued interest payable 4,794 2,545
Notes payable 119,428 111,223
Derivative liabilities 10,687 9,221
Total liabilities 3,938,057 3,359,135
Carrying Value | Level 3 Inputs    
Financial assets    
Loans, net 3,601,766 3,077,200
Estimated Fair Value | Level 2 Inputs    
Financial assets    
Cash and cash equivalents 411,845 332,014
Investment securities available for sale 178,087 176,067
Non-marketable securities 16,041 14,618
Accrued interest receivable 23,120 18,340
Bank-owned life insurance 65,861 60,761
Derivative assets 8,828 9,213
Total assets 703,782 611,013
Financial liabilities    
Deposits 3,821,744 3,238,857
Accrued interest payable 4,794 2,545
Notes payable 119,428 111,223
Derivative liabilities 10,687 9,221
Total liabilities 3,956,653 3,361,846
Estimated Fair Value | Level 3 Inputs    
Financial assets    
Loans, net $ 3,532,270 $ 2,920,213
v3.24.0.1
Significant Group Concentrations of Credit Risk - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Risks and Uncertainties [Abstract]    
Federal funds sold $ 114,919 $ 2,150
Deposit balances with other financial institutions $ 262,100 $ 279,100
v3.24.0.1
Employee Benefit Plans - Additional Information (Details) - USD ($)
 12 Months Ended
May 03, 2023
Jul. 01, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
May 25, 2023
Postemployment Benefits [Abstract]            
Estimated fair value of cash obligation         $ 2,300,000  
Number of shares held by ESOP   149,461        
Contributions to ESOP     $ 1,500,000 $ 1,400,000 936,000  
Administrative expenses related to ESOP     $ 53,000 $ 59,000 $ 41,000  
Stock issued during period, shares   400,000        
Common stock, par value   $ 1 $ 1 $ 1   $ 1
Vesting period 30 days          
Deferred compensation expense     $ 378,000      
v3.24.0.1
Related Party Transactions - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Related Party Transactions [Abstract]    
Aggregate amounts of loans to related parties $ 1,400,000 $ 1,500,000
Loan originations to related parties 570,000  
Repayments from related party loans 682,000  
Related party unfunded commitments 402,000 587,000
Deposits received from related parties $ 19,600,000 $ 16,000,000
v3.24.0.1
Shareholders' Equity and Regulatory Matters - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
Sep. 30, 2022
Dec. 31, 2023
May 25, 2023
Dec. 31, 2022
Jul. 01, 2022
Subsidiary, Sale of Stock [Line Items]          
Preferred stock, shares authorized   1,000,000 1,000,000 1,000,000  
Common stock, par value   $ 1 $ 1 $ 1 $ 1
Preferred stock, par value   $ 1 $ 1 $ 1  
Capital stock, shares authorized     54,500,000    
Common stock, shares authorized   50,000,000   50,000,000  
Common Stock [Member]          
Subsidiary, Sale of Stock [Line Items]          
Common stock, shares authorized     50,000,000    
Nonvoting Common Stock          
Subsidiary, Sale of Stock [Line Items]          
Common stock, par value   $ 1 $ 1 $ 1  
Common stock, shares authorized   3,500,000 3,500,000 0  
Series A Convertible Non-cumulative Preferred Stock          
Subsidiary, Sale of Stock [Line Items]          
Preferred stock, shares authorized   69,400   69,400  
Preferred stock, par value   $ 1   $ 1  
Series B Convertible Perpetual Preferred Stock          
Subsidiary, Sale of Stock [Line Items]          
Preferred stock, shares authorized 69,400 69,400   69,400  
Preferred stock, par value   $ 1   $ 1  
Director and Officers [Member] | Series A Preferred Stock          
Subsidiary, Sale of Stock [Line Items]          
Purchase of preferred stock shares $ 2.7        
Private Placement Offering          
Subsidiary, Sale of Stock [Line Items]          
Liquidation preference per share $ 1,000        
Warrant exercise price of common stock per share $ 22.5 $ 22.5      
Gross proceeds before deducting placement fees and offering expenses $ 69.4        
Placement fees and offering expenses 3.2        
Net proceeds after deducting placement fees and offering expenses $ 66.2        
Private Placement Offering | Series B Convertible Perpetual Preferred Stock          
Subsidiary, Sale of Stock [Line Items]          
Preferred stock, par value $ 1        
Private Placement Offering | Series A Preferred Stock          
Subsidiary, Sale of Stock [Line Items]          
Preferred stock, shares authorized 69,400        
v3.24.0.1
Shareholders Equity and Regulatory Matters - Schedule of comparison of the actual capital amounts and ratios (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Total capital (to risk weighted assets), Actual, Amount $ 512,024  
Total capital (to risk weighted assets), Actual, Ratio 0.1266  
Total capital (to risk weighted assets), For Capital Adequacy Purposes, Amount $ 424,563  
Total capital (to risk weighted assets), For Capital Adequacy Purposes, Ratio 0.105  
Tier 1 capital (to risk weighted assets), Actual, Amount $ 392,037  
Tier 1 capital (to risk weighted assets), Actual, Ratio 0.097  
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes, Amount $ 343,694  
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes, Ratio 0.085  
Tier 1 capital (to average assets), Actual, Amount $ 392,037  
Tier 1 capital (to average assets), Actual, Ratio 0.0923  
Tier 1 capital (to average assets), For Capital Adequacy Purposes, Amount $ 169,917  
Tier 1 capital (to average assets), For Capital Adequacy Purposes, Ratio 0.04  
Common equity tier 1 (to risk weighted assets), Actual, Amount $ 325,812  
Common equity tier 1 (to risk weighted assets), Actual, Ratio 0.0806  
Common equity tier 1 (to risk weighted assets), For Capital Adequacy Purposes, Amount $ 283,042  
Common equity tier 1 (to risk weighted assets), For Capital Adequacy Purposes, Ratio 0.07  
THIRD COAST BANK, SSB    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Total capital (to risk weighted assets), Actual, Amount $ 544,624 $ 496,222
Total capital (to risk weighted assets), Actual, Ratio 0.1349 0.1379
Total capital (to risk weighted assets), For Capital Adequacy Purposes, Amount $ 423,829 $ 377,782
Total capital (to risk weighted assets), For Capital Adequacy Purposes, Ratio 0.105 0.105
Total capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount $ 403,647 $ 359,793
Total capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio 0.10 0.10
Tier 1 capital (to risk weighted assets), Actual, Amount $ 505,190 $ 465,871
Tier 1 capital (to risk weighted assets), Actual, Ratio 0.1252 0.1295
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes, Amount $ 343,100 $ 305,824
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes, Ratio 0.085 0.085
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount $ 322,918 $ 287,834
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio 0.08 0.08
Tier 1 capital (to average assets), Actual, Amount $ 505,190 $ 465,871
Tier 1 capital (to average assets), Actual, Ratio 0.1191 0.1311
Tier 1 capital (to average assets), For Capital Adequacy Purposes, Amount $ 169,649 $ 142,188
Tier 1 capital (to average assets), For Capital Adequacy Purposes, Ratio 0.04 0.04
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount $ 212,062 $ 177,734
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio 0.05 0.05
Common equity tier 1 (to risk weighted assets), Actual, Amount $ 505,190 $ 465,871
Common equity tier 1 (to risk weighted assets), Actual, Ratio 0.1252 0.1295
Common equity tier 1 (to risk weighted assets), For Capital Adequacy Purposes, Amount $ 282,553 $ 251,855
Common equity tier 1 (to risk weighted assets), For Capital Adequacy Purposes, Ratio 0.07 0.07
Common equity tier 1 (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount $ 262,371 $ 233,865
Common equity tier 1 (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio 0.065 0.065
v3.24.0.1
Earnings Per Common Share - Schedule Of Earnings Per Share Basic And Diluted (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share [Abstract]                      
Net Income (Loss) $ 9,689 $ 5,578 $ 8,891 $ 9,243 $ 7,525 $ 6,770 $ 2,277 $ 2,087 $ 33,401 $ 18,659 $ 11,424
Less dividends declared, Preferred Series A stock                 4,736 1,418  
Net income available to common shareholders                 $ 28,665 $ 17,241 $ 11,424
Weighted-average shares outstanding for basic earnings per common share                 13,583,553 13,465,196 7,874,110
Dilutive effect of stock compensation                 209,894 289,414 264,714
Dilutive effect of Preferred Series A stock                 3,084,444    
Weighted-average shares outstanding for diluted earnings per common share                 16,877,891 13,754,610 8,138,824
Basic earnings per share                 $ 2.11 $ 1.28 $ 1.45
Diluted earnings per share                 $ 1.98 $ 1.25 $ 1.40
v3.24.0.1
Derivative Financial Instruments - Additional Information (Details) - USD ($)
 1 Months Ended 12 Months Ended
May 26, 2023
Feb. 18, 2021
Dec. 31, 2023
Mar. 31, 2023
Jul. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Gain on terminated hedge $ 5,000,000              
Derivative assets     $ 8,828,000     $ 8,828,000 $ 9,213,000  
Derivative liabilities     $ 10,687,000     10,687,000 $ 9,221,000  
Cash Flow Hedges                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Term of swap agreement       5 years 5 years      
Notional amount       $ 200,000,000 $ 200,000,000      
Pay fixed interest rate swap   $ 100,000,000            
Gain on terminated hedge   $ 945,000     $ 3,000,000      
Contract maturity date       Mar. 31, 2028 Jul. 09, 2027   Sep. 04, 2025  
Reduction of interest expense           1,700,000 $ 401,000 $ 180,000
Cash Flow Hedges | Interest Rate Swap Agreements One                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Term of swap agreement     5 years          
Notional amount     $ 100,000,000     $ 100,000,000    
Derivative fixed interest rate     3.718%     3.718%    
Contract maturity date     Dec. 06, 2028          
Cash Flow Hedges | Interest Rate Swap Agreements Two                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Term of swap agreement     5 years          
Notional amount     $ 100,000,000     $ 100,000,000    
Derivative fixed interest rate     3.473%     3.473%    
Contract maturity date     Dec. 21, 2028          
Fair Value Hedges                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Derivative assets     $ 8,800,000     $ 8,800,000    
Derivative liabilities     $ 10,700,000     $ 10,700,000    
v3.24.0.1
Derivative Financial Instruments - Schedule of Outstanding Notional Balances and Fair Values of Outstanding Derivative Positions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Derivatives Fair Value [Line Items]    
Outstanding Notional Balance $ 734,327 $ 335,101
Asset Derivative Fair Value 8,828 9,213
Liability Derivative Fair Value 10,687 9,221
Fair Value Hedges    
Derivatives Fair Value [Line Items]    
Outstanding Notional Balance 534,327 335,101
Asset Derivative Fair Value 8,828 9,213
Liability Derivative Fair Value 9,146 9,221
Cash Flow Hedges    
Derivatives Fair Value [Line Items]    
Outstanding Notional Balance 200,000  
Liability Derivative Fair Value 1,541  
Pay Fixed Interest Rate Swap | Cash Flow Hedges    
Derivatives Fair Value [Line Items]    
Outstanding Notional Balance 200,000  
Liability Derivative Fair Value $ 1,541  
Pay Rate [1] 3.60%  
Receive Rate 15.00%  
Remaining Term [2] 5 years  
Risk Participation Agreements Purchased | Fair Value Hedges    
Derivatives Fair Value [Line Items]    
Outstanding Notional Balance $ 13,935 $ 10,621
Liability Derivative Fair Value $ 20  
Receive Rate [1] 5.80% 4.87%
Remaining Term [2] 2 years 6 months 2 years 2 months 12 days
Risk Participation Agreements Sold | Fair Value Hedges    
Derivatives Fair Value [Line Items]    
Outstanding Notional Balance $ 54,383 $ 29,360
Asset Derivative Fair Value 6  
Liability Derivative Fair Value $ 0 $ 8
Receive Rate [1] 5.06% 5.54%
Remaining Term [2] 3 years 10 months 24 days 4 years 2 months 12 days
Commercial Loan Interest Rate Swaps | Fair Value Hedges    
Derivatives Fair Value [Line Items]    
Outstanding Notional Balance $ 32,477  
Asset Derivative Fair Value 48  
Liability Derivative Fair Value $ 352  
Pay Rate [1] 7.02%  
Remaining Term [2] 3 years 1 month 6 days  
Commercial Loan Interest Rate Swaps | Loan Customer Counterparty | Not Designated as Hedging Instrument | Fair Value Hedges    
Derivatives Fair Value [Line Items]    
Outstanding Notional Balance $ 216,766 $ 147,560
Asset Derivative Fair Value 2,327  
Liability Derivative Fair Value $ 6,447 $ 9,213
Receive Rate [1] 5.86% 4.77%
Remaining Term [2] 3 years 8 months 12 days 4 years 6 months
Commercial Loan Interest Rate Swaps | Financial Institution Counterparty | Not Designated as Hedging Instrument | Fair Value Hedges    
Derivatives Fair Value [Line Items]    
Outstanding Notional Balance $ 216,766 $ 147,560
Asset Derivative Fair Value 6,447 $ 9,213
Liability Derivative Fair Value $ 2,327  
Pay Rate [1] 5.86% 4.77%
Remaining Term [2] 3 years 8 months 12 days 4 years 6 months
[1] Weighted average rate.
[2] Weighted average life (in years).
v3.24.0.1
Core Deposit Intangibles, Net - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]      
Amortization expense $ 162,000 $ 162,000 $ 162,000
Weighted average life 6 years    
v3.24.0.1
Core Deposit Intangibles, Net - Schedule of Amortization of Core Deposit Intangibles (Details) - Core Deposits
$ in Thousands
Dec. 31, 2023
USD ($)
Finite-Lived Intangible Assets [Line Items]  
2024 $ 162
2025 162
2026 162
2027 162
2028 and thereafter 321
Total $ 969
v3.24.0.1
Business Combinations - Additional Information (Details)
Jul. 01, 2022
shares
Business Acquisition [Line Items]  
Stock issued during period, shares 400,000
v3.24.0.1
Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Assets of acquired bank:    
Goodwill $ 18,034 $ 18,034
v3.24.0.1
Parent Company Financial Statements - Schedule of Condensed Balance Sheets (Details) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Assets [Abstract]    
Cash and cash equivalents $ 411,845 $ 332,014
Other assets 12,303 12,933
Total assets 4,396,074 3,773,148
LIABILITIES AND SHAREHOLDERS' EQUITY    
Other liabilities 23,763 14,024
Total liabilities 3,984,100 3,391,368
Shareholders' equity:    
Series A Convertible Non-Cumulative Preferred Stock 69 69
Common stock 13,683 13,610
Additional paid-in capital 319,613 318,033
Retained earnings 78,775 53,270
Accumulated other comprehensive income (loss) 933 (2,103)
Treasury stock: at cost (1,099) (1,099)
Total shareholders' equity 411,974 381,780
Total liabilities & shareholders' equity 4,396,074 3,773,148
Parent    
Assets [Abstract]    
Cash and cash equivalents 1,890 8,752
Investment in subsidiary 525,127 482,933
Other assets 6,988 3,795
Total assets 534,005 495,480
LIABILITIES AND SHAREHOLDERS' EQUITY    
Other borrowings 119,428 111,223
Other liabilities 2,603 2,477
Total liabilities 122,031 113,700
Shareholders' equity:    
Series A Convertible Non-Cumulative Preferred Stock 69 69
Common stock 13,683 13,610
Additional paid-in capital 319,613 318,033
Retained earnings 78,775 53,270
Accumulated other comprehensive income (loss) 933 (2,103)
Treasury stock: at cost (1,099) (1,099)
Total shareholders' equity 411,974 381,780
Total liabilities & shareholders' equity $ 534,005 $ 495,480
v3.24.0.1
Parent Company Financial Statements - Schedule of Condensed Statements of Income and Comprehensive Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Interest expense:                      
Total interest expense $ 39,736 $ 34,117 $ 28,617 $ 24,549 $ 19,000 $ 11,747 $ 4,771 $ 1,974 $ 127,019 $ 37,492 $ 10,062
Noninterest expense:                      
Legal and professional                 7,783 6,987 5,293
Other                 4,995 4,117 1,919
Total noninterest expense 26,414 27,505 23,835 22,044 22,627 22,728 22,773 20,181 99,798 88,309 71,025
Income tax benefit (2,285) (1,431) (2,250) (2,245) (1,802) (1,495) (604) (608) (8,211) (4,509) (3,059)
Net income $ 9,689 $ 5,578 $ 8,891 $ 9,243 $ 7,525 $ 6,770 $ 2,277 $ 2,087 33,401 18,659 11,424
Comprehensive income                 36,437 15,163 12,538
Parent                      
Interest expense:                      
Interest on notes payable                 7,657 4,605 1,091
Total interest expense                 7,657 4,605 1,091
Noninterest expense:                      
Legal and professional                 760 302 680
Other                 836 230 23
Total noninterest expense                 1,596 532 703
Loss before income tax expense and equity in undistributed earnings of subsidiaries                 (9,253) (5,137) (1,794)
Income tax benefit                 1,943 1,087 359
Loss before equity in undistributed earnings in subsidiaries                 (7,310) (4,050) (1,435)
Equity in undistributed earnings of subsidiaries                 40,711 22,709 12,859
Net income                 33,401 18,659 11,424
Comprehensive income                 $ 36,437 $ 15,163 $ 12,538
v3.24.0.1
Parent Company Financial Statements - Schedule of Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:      
Net income $ 33,401 $ 18,659 $ 11,424
Adjustments to reconcile net income to net cash provided by operating activities:      
Amortization of subordinated debt issuance costs 205 154  
Net cash provided by operating activities 39,075 21,791 4,584
Cash flows from investing activities:      
Net cash used in investing activities (529,535) (1,239,530) (500,062)
Cash flows from financing activities:      
Repayment of subordinated notes payable - related party     (13,000)
Proceeds from (repayment of) line of credit - senior debt 8,000 29,875 (19,875)
Net proceeds from subordinated debt issuance   80,194  
Dividends paid on Series A preferred stock (4,736) (221)  
Proceeds from stock warrants exercised 47   19
Proceeds from stock options exercised   672 995
Net redemption of treasury stock     (121)
Net cash provided by financing activities 570,291 1,222,728 618,943
Change in cash and cash equivalents 79,831 4,989 123,465
Cash and cash equivalents at beginning of period 332,014 327,025 203,560
Cash and cash equivalents at end of period 411,845 332,014 327,025
Parent      
Cash flows from operating activities:      
Net income 33,401 18,659 11,424
Adjustments to reconcile net income to net cash provided by operating activities:      
Equity in undistributed net income of subsidiaries (40,711) (22,709) (12,859)
Amortization of subordinated debt issuance costs 205 154  
Net change in other assets (3,193) (1,938) (359)
Net change in other liabilities 125 1,278 (150)
Net cash provided by operating activities (10,173) (4,556) (1,944)
Cash flows from investing activities:      
Capital investments in subsidiaries   (173,000) (125,800)
Net cash used in investing activities   (173,000) (125,800)
Cash flows from financing activities:      
Repayment of subordinated notes payable - related party     (13,000)
Proceeds from (repayment of) line of credit - senior debt 8,000 29,875 (19,875)
Net proceeds from subordinated debt issuance   80,194  
Net proceeds from issuance of preferred stock   66,225  
Net proceeds from issuance of common stock   856 163,199
Dividends paid on Series A preferred stock (4,736) (221)  
Proceeds from stock warrants exercised 47   19
Proceeds from stock options exercised   672 995
Net redemption of treasury stock     (121)
Net cash provided by financing activities 3,311 177,601 131,217
Change in cash and cash equivalents (6,862) 45 3,473
Cash and cash equivalents at beginning of period 8,752 8,707 5,234
Cash and cash equivalents at end of period $ 1,890 $ 8,752 $ 8,707
v3.24.0.1
Quarterly Financial Data (UNAUDITED) - Summary of Quarterly Financial Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]                      
Interest income $ 77,067 $ 69,385 $ 62,713 $ 57,379 $ 51,151 $ 43,102 $ 32,509 $ 27,184 $ 266,544 $ 153,946 $ 100,615
Interest expense 39,736 34,117 28,617 24,549 19,000 11,747 4,771 1,974 127,019 37,492 10,062
Net interest income 37,331 35,268 34,096 32,830 32,151 31,355 27,738 25,210 139,525 116,454 90,553
Provision for credit losses 1,100 2,620 1,400 1,200 1,950 2,900 3,350 4,000 6,320 12,200 9,923
Net interest income after provision for credit losses 36,231 32,648 32,696 31,630 30,201 28,455 24,388 21,210 133,205 104,254 80,630
Noninterest income 2,157 1,866 2,280 1,902 1,753 2,538 1,266 1,666 8,205 7,223 4,878
Noninterest expense 26,414 27,505 23,835 22,044 22,627 22,728 22,773 20,181 99,798 88,309 71,025
Net income before income tax expense 11,974 7,009 11,141 11,488 9,327 8,265 2,881 2,695 41,612 23,168 14,483
Income tax expense 2,285 1,431 2,250 2,245 1,802 1,495 604 608 8,211 4,509 3,059
Net income $ 9,689 $ 5,578 $ 8,891 $ 9,243 $ 7,525 $ 6,770 $ 2,277 $ 2,087 $ 33,401 $ 18,659 $ 11,424