What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-08-04 compared with 2022-05-05 · 259 added, 214 removed, 1069 unchanged (31% of the section changed)

29 unchanged sentences

Less treasury stock, at cost -

at March 31, 2022

at June 30, 2022

and December 31, 2021, respectively

6 unchanged sentences

Consolidated Statements of Earnings

Quarter ended March 31,

Quarter ended June 30,

Six months ended June 30,

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

29 unchanged sentences

AND SUBSIDIARIES

Consolidated Statements of Comprehensive Loss

Quarter ended March 31,

Consolidated Statements of Comprehensive Income

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

Other comprehensive loss, net of tax:

Unrealized net holding loss on securities

Other comprehensive loss

Comprehensive loss

Other comprehensive (loss) income, net of tax:

Unrealized net (loss) gain on securities

Other comprehensive (loss) income

Comprehensive (loss) income

See accompanying notes to consolidated financial statements

5 unchanged sentences

(Dollars in thousands, except share data)

income (loss)

Quarter ended March 31, 2022

Balance, December 31, 2021

(loss) income

Quarter ended June 30, 2022

Balance, March 31, 2022

Other comprehensive loss

2 unchanged sentences

Sale of treasury stock

Balance, June 30, 2022

Quarter ended June 30, 2021

Balance, March 31, 2021

Quarter ended March 31, 2021

Other comprehensive income

Cash dividends paid ($

Stock repurchases

Sale of treasury stock

Balance, June 30, 2021

Six months ended June 30, 2022

Balance, December 31, 2021

1 unchanged sentence

Cash dividends paid ($

Stock repurchases

Sale of treasury stock

Balance, March 31, 2021

Balance, June 30, 2022

Six months ended June 30, 2021

Balance, December 31, 2020

Other comprehensive loss

Cash dividends paid ($

Stock repurchases

Sale of treasury stock

Balance, June 30, 2021

See accompanying notes to consolidated financial statements

3 unchanged sentences

Consolidated Statements of Cash Flows

Quarter ended March 31,

Six months ended June 30,

(Dollars in thousands)

6 unchanged sentences

Net gain on sale of loans held for sale

Net gain on other real estate owned

Loans originated for sale

2 unchanged sentences

Net (increase) decrease in other assets

Net decrease in accrued expenses and other liabilities

Net increase (decrease) in accrued expenses and other liabilities

Net cash provided by operating activities

2 unchanged sentences

Purchase of securities available-for-sale

Decrease (increase) in loans, net

Increase in loans, net

Net purchases of premises and equipment

(Increase) decrease in FHLB stock

Net cash provided by (used in) investing activities

Proceeds from sale of other real estate owned

Net cash used in investing activities

Cash flows from financing activities:

11 unchanged sentences

Cash paid during the period for:

Supplemental disclosure of non-cash transactions:

Real estate acquired through foreclosure

See accompanying notes to consolidated financial statements

22 unchanged sentences

necessary to present a fair

statement of the financial position and the results of operations for all periods

statement of the financial position and the results of operations for all periods presented.

All such adjustments are of a

normal recurring nature.

The results of operations in the interim statements are not necessarily

indicative of the results of

The results of operations in the interim statements are not

necessarily indicative of the results of

operations that the Company and its subsidiaries may achieve for future interim periods

17 unchanged sentences

the determination of the allowance for loan losses, fair

value of financial instruments, and the valuation of deferred tax assets and other real estate

owned (“OREO”).

value of financial instruments, and the valuation of deferred tax assets and other real

estate owned (“OREO”).

Revenue Recognition

8 unchanged sentences

is generated from

interest income on loans and securities which are outside the

scope of ASC 606.

interest income on loans and securities which are outside the scope of ASC 606.

The Company’s sources of income that

fall within the scope of ASC 606 include service charges on deposits, investment

services, interchange fees and gains and losses on sales of other real estate, all of which are

presented as components of

services, interchange fees and gains and losses on sales of other real estate, all of

which are presented as components of

noninterest income.

14 unchanged sentences

ASC 606 lists several criteria required to conclude that a contract for sale

exists, including a determination that the institution will

collect substantially all of the consideration to which it is

In addition to the loan-to-value, the analysis is based on various other

factors, including the credit quality

of the borrower, the structure of the loan, and any other factors

that may affect collectability.

exists, including a determination that the institution will collect substantially all of the consideration

to which it is

In addition to the loan-to-value ratio, the analysis is based on various other factors

including the credit

quality of the borrower, the structure of the loan, and any other

factors that we believe may affect collectability.

Subsequent Events

1 unchanged sentence

the date of this filing that have occurred

subsequent to March 31, 2022.

The Company does not believe there were any

material subsequent events during this period

subsequent to June 30, 2022.

The Company does not believe there

were any material subsequent events during this period

that would have required further recognition or disclosure in the unaudited

6 unchanged sentences

Accounting Developments

In the first quarter of 2022, the Company did not adopt any new accounting

In the first six months of 2022, the Company did not adopt any new accounting guidance.

BASIC AND DILUTED NET EARNINGS PER SHARE

1 unchanged sentence

common shares outstanding for

the quarters ended March 31, 2022 and 2021, respectively.

Diluted net earnings per share reflect the potential dilution that

could occur upon exercise of securities or other rights for,

or convertible into, shares of the Company’s common

March 31, 2022 and 2021, respectively,

the Company had no such securities or rights issued or outstanding,

and therefore,

no dilutive effect to consider for the diluted net earnings per share calculation.

The basic and diluted net earnings per share computations for the respective periods

are presented below

Quarter ended March 31,

the respective period.

Diluted net earnings per share reflect the potential dilution that could occur

upon exercise of

securities or other rights for, or convertible into, shares of the

Company’s common stock.

At June 30, 2022 and 2021,

respectively, the Company

had no such securities or rights issued or outstanding, and therefore, no dilutive effect

consider for the diluted net earnings per share calculation.

The basic and diluted net earnings per share computations for the respective periods are

presented below

Quarter ended June 30,

Six months ended June 30,

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

9 unchanged sentences

resources for the entity to support its activities.

At March 31, 2022, the Company did not have any consolidated VIEs to disclose but did

At June 30, 2022, the Company did not have any consolidated VIEs to disclose but did

have one nonconsolidated VIE,

8 unchanged sentences

during such period.

At March 31, 2022 and December 31, 2021, respectively,

At June 30, 2022 and December 31, 2021, respectively,

the Company had one such investment in the

amount of $2.2 million, which was included in other assets in the consolidated

balance sheets.

The Company’s equity

investment meets the definition of a VIE.

amounts of $2.1 million and $2.2 million, respectively,

which was included in other assets in the consolidated balance

The Company’s equity investment

meets the definition of a VIE.

While the Company’s

investment exceeds 50% of the outstanding equity

interests, the Company does not consolidate the VIE because it does not

meet the characteristics of a primary beneficiary

since the Company lacks the power to direct the activities of the VIE.

investment exceeds 50% of

the outstanding equity interests, the Company does not consolidate the VIE because

it does not meet the characteristics of a

primary beneficiary since the Company lacks the power to direct the activities of

(Dollars in thousands)

Loss Exposure

Asset Recognized

Classification

New Markets Tax Credit investment

At March 31, 2022 and December 31, 2021, respectively,

At June 30, 2022 and December 31, 2021, respectively,

all securities within the scope of ASC 320,

Investments – Debt

and Equity Securities,

Investments – Debt and

Equity Securities,

were classified as available-for-sale.

The fair value and amortized cost for securities available-for-

sale by contractual maturity at March 31, 2022 and December 31, 2021,

respectively, are presented below.

The fair value and amortized cost for securities available-for-sale

by contractual maturity at June 30, 2022 and December 31, 2021, respectively,

are presented below.

Gross Unrealized

(Dollars in thousands)

March 31, 2022

June 30, 2022

Agency obligations (a)

11 unchanged sentences

million and $

million at March 31, 2022 and December 31, 2021,

million at June 30, 2022 and December 31, 2021,

respectively, were pledged to

secure public deposits, securities sold under agreements to repurchase, Federal Home

Bank (“FHLB”) advances, and for other purposes required or permitted by law.

Bank of Atlanta (“FHLB of Atlanta”) advances, and for other purposes required

or permitted by law.

Included in other assets on the accompanying consolidated balance sheets are non-marketable

1 unchanged sentence

carrying amounts of non-marketable equity investments were $

million at March 31, 2022 and December 31, 2021,

million at June 30, 2022 and December 31, 2021,

respectively.

Non-marketable equity investments include FHLB of Atlanta Stock, Federal

Reserve Bank (“FRB”) stock,

and stock in a privately held financial institution.

Reserve Bank of Atlanta

(“FRB”) stock, and stock in a privately held financial institution.

Gross Unrealized Losses and Fair Value

The fair values and gross unrealized losses on securities at March 31, 2022

and December 31, 2021, respectively,

segregated by those securities that have been in an unrealized loss position for

less than 12 months and 12 months or

longer, are presented below.

The fair values and gross unrealized losses on securities at June 30, 2022

and December 31, 2021, respectively, segregated

by those securities that have been in an unrealized loss position for less than 12

months and 12 months or longer, are

presented below.

Less than 12 Months

1 unchanged sentence

(Dollars in thousands)

March 31, 2022:

June 30, 2022:

Agency obligations

22 unchanged sentences

in the financial

condition of the underlying loan obligors, including changes in technology or the discontinuance of

condition of the underlying loan obligors, including changes in technology or the discontinuance

of a segment of

the business that may affect the future earnings potential of the issuer or

1 unchanged sentence

changes in the quality of the credit enhancement);

the historical and implied volatility of the fair value of the security;

the historical and implied volatility of the security’s

the payment structure of the debt security and the likelihood of the issuer being able to

29 unchanged sentences

securities are guaranteed by a

bond insurer, but management did not rely on the guarantee

in making its investment decision.

bond insurer, but management did not rely on

such guarantees in making its investment decision.

These securities will

10 unchanged sentences

its agencies) deteriorates and the

Company determines it is probable that it will not recover the entire amortized cost

basis for the security,

Company determines it is probable that it will not recover the entire amortized

cost basis for the security,

there is a risk that

7 unchanged sentences

has written down the amortized cost basis of a

security for other-than-temporary impairment and the credit component of the loss is recognized

security for other-than-temporary impairment and the credit

component of the loss is recognized in earnings.

2022 and December 31, 2021, the Company had no credit-impaired debt securities and there

were no additions or

reductions in the credit loss component of credit-impaired debt securities during the quarters

ended March 31, 2022 and

2021, respectively.

reductions in the credit loss component of credit-impaired debt securities during

the quarters and six months ended June 30,

2022 and 2021, respectively.

Realized Gains and Losses

The Company had no realized gains and losses on sale of securities during the first quarters ended

March 31, 2022 and

2021, respectively.

The Company had no realized gains and losses on sale of securities during the quarters and

six months ended June 30, 2022

and 2021, respectively.

LOANS AND ALLOWANCE

15 unchanged sentences

of the Company’s total loan portfolio

at March 31, 2022.

31, 2022, the Company’s geographic

loan distribution was concentrated primarily in Lee County,

surrounding areas.

at June 30, 2022.

2022, the Company’s geographic loan

distribution was concentrated primarily in Lee County,

Alabama, and surrounding

In accordance with ASC 310, a portfolio segment is defined as the level at which an entity

1 unchanged sentence

systematic method for determining its allowance for loan losses.

As part of the

Company’s quarterly assessment

As part of the Company’s quarterly assessment

allowance, the loan portfolio included the following portfolio segments:

2 unchanged sentences

development, commercial real estate, residential real estate, and consumer installment.

Where appropriate, the Company’s

appropriate, the Company’s

loan portfolio segments are further disaggregated into classes.

11 unchanged sentences

the primary source of repayment is the cash flow from business operations and activities

As of March 31, 2022, the Company has 82 PPP loans with an aggregate outstanding principal

balance of $4.1

million included in this category.

The Company had 138 PPP loans with an aggregate principal balance of $8.1

included in this category at December 31, 2021.

As of June 30, 2022, the Company had

PPP loans with an aggregate outstanding principal balance of $

million included in this category, compared

PPP loans with an aggregate principal balance of $

December 31, 2021.

Construction and land development (“C&D”) —

12 unchanged sentences

– includes loans secured by business facilities to finance business operations, equipment and

owner-occupied facilities primarily for small and

medium-sized commercial customers.

owner-occupied facilities primarily for small and medium-sized

commercial customers.

source of repayment is the cash flow from business operations and activities of the borrower,

7 unchanged sentences

Loans in this class

include loans for 5 or more unit residential property and apartments leased to residents.

include loans for 5 or more unit residential property and apartments leased to

source of repayment is dependent upon income generated from the real estate collateral.

46 unchanged sentences

The following is a summary of current, accruing past due, and nonaccrual loans by portfolio

segment and class as of March

segment and class as of June

30, 2022 and December 31, 2021.

(Dollars in thousands)

March 31, 2022:

June 30, 2022:

Commercial and industrial

92 unchanged sentences

make adjustments based, in part, on loss rates of peer bank

At March 31, 2022 and December 31, 2021, and for the periods then ended, the Company adjusted

its historical

loss rates for the commercial real estate portfolio segment based, in part, on loss rates of peer bank groups.

At June 30, 2022 and December 31, 2021, and for the periods then ended, the Company adjusted

its historical loss

rates for the commercial real estate portfolio segment based, in part, on loss rates of peer bank

The estimated loan loss allocation for all five loan portfolio segments is then adjusted for management’s

16 unchanged sentences

The Company’s look-back

period each quarter incorporates the effects of at least one economic downturn

in its loss history.

Company believes

period each quarter incorporates the effects of at least one economic

downturn in its loss history.

The Company believes

this look-back period is appropriate due to the risks inherent in the loan portfolio.

Absent this look-back period,

cycle periods in which the Company experienced significant losses

would be excluded from the determination of the

cycle periods in which the Company experienced significant losses would be excluded

from the determination of the

allowance for loan losses and its balance would decrease.

For the quarter ended March 31, 2022, the Company increased

its look-back period to 52 quarters to continue to include losses incurred by the Company

beginning with the first quarter of

For the quarter ended June 30, 2022, the Company increased its

look-back period to 53 quarters to continue to include losses incurred by the Company beginning

with the first quarter of

The Company will likely continue to increase its look-back period to incorporate

9 unchanged sentences

for the respective periods.

March 31, 2022

June 30, 2022

(Dollars in thousands)

2 unchanged sentences

Beginning balance

Net (charge-offs) recoveries

Provision for loan losses

Ending balance

Six months ended:

Beginning balance

Net recoveries (charge-offs)

1 unchanged sentence

Ending balance

March 31, 2021

June 30, 2021

(Dollars in thousands)

2 unchanged sentences

Beginning balance

Net recoveries (charge-offs)

Net recoveries

Provision for loan losses

Ending balance

Six months ended:

Beginning balance

Net recoveries

Provision for loan losses

Ending balance

The following table presents an analysis of the allowance for loan losses and recorded

investment in loans by portfolio

segment and impairment methodology as of March 31, 2022 and 2021.

segment and impairment methodology as of June 30, 2022 and 2021.

Collectively evaluated (1)

1 unchanged sentence

(Dollars in thousands)

March 31, 2022:

June 30, 2022:

Commercial and industrial (3)

3 unchanged sentences

Consumer installment

March 31, 2021:

June 30, 2021:

Commercial and industrial (4)

17 unchanged sentences

for loan losses was allocated due to 100% SBA guarantee.

See “Impaired Loans” and “Troubled Debt Restructurings”

below for additional information about such loans.

Credit Quality Indicators

6 unchanged sentences

the associated allowance for

loan losses using historical losses adjusted for qualitative and environmental

factors and are defined as follows:

loan losses using historical losses adjusted for qualitative and environmental factors

and are defined as follows:

Pass – loans which are well protected by the current net worth and paying capacity of the

15 unchanged sentences

(Dollars in thousands)

March 31, 2022:

June 30, 2022:

Commercial and industrial

35 unchanged sentences

impaired loans that were individually evaluated

for impairment at March 31, 2022 and December 31, 2021.

March 31, 2022

for impairment at June 30, 2022 and December 31, 2021.

June 30, 2022

(Dollars in thousands)

48 unchanged sentences

respective periods.

Quarter ended March 31, 2022

Quarter ended March 31, 2021

Quarter ended June 30, 2022

Six months ended June 30, 2022

Total interest

7 unchanged sentences

Total residential real estate

Quarter ended June 30, 2021

Six months ended June 30, 2021

Total interest

(Dollars in thousands)

Impaired loans:

Commercial real estate:

Total commercial real estate

Residential real estate:

Investment property

Total residential real estate

Troubled Debt

2 unchanged sentences

Section 4013 of the CARES Act, “Temporary

From Troubled Debt Restructurings,” provides banks the option

to temporarily suspend certain requirements under ASC

From Troubled Debt Restructurings,” provided

banks the option to temporarily suspend certain requirements under ASC

340-10 TDR classifications for a limited period of time to account for the effects

In addition, the Interagency

Statement on COVID-19 Loan Modifications, encourages banks to

work prudently with borrowers and describes the

Statement on COVID-19 Loan Modifications, encouraged

banks to work prudently with borrowers and describes the

agencies’ interpretation of how accounting rules under ASC 310-40,

6 unchanged sentences

COVID-19 Pandemic on Institutions.

If a loan modification is eligible, a bank may elect to account for the loan under

If a loan modification was

eligible, a bank could elect to account for the loan under

section 4013 of the CARES Act.

If a loan modification is not eligible under section 4013,

or if the bank elects not to

account for the loan modification under section 4013, the Revised Statement includes

If a loan modification was

not eligible under section 4013, or if the bank elected not to

account for the loan modification under section 4013, the Revised Statement include

criteria when a bank may presume a

12 unchanged sentences

of the face amount or maturity amount of the debt.

A concession has been granted when, as a result of the restructuring, the Bank does

not expect to collect, when due, all

A concession has been granted when, as a result of the restructuring, the Bank does not expect

to collect, when due, all

amounts owed, including interest at the original stated rate.

2 unchanged sentences

similar to the restructured debt.

the determination of whether a loan modification is a TDR, the Company considers

the individual facts and circumstances

the determination of whether a loan modification is a TDR, the Company considers the

individual facts and circumstances

surrounding each modification.

4 unchanged sentences

the loan’s original effective

interest rate as the discount rate, or the fair value of the collateral, less selling costs if the loan is

interest rate as the discount rate, or the fair value of the collateral, less selling costs if

collateral dependent.

8 unchanged sentences

loan totals, and the

related allowance for loan losses, by portfolio segment and class as of March 31, 2022

and December 31, 2021,

respectively.

related allowance for loan losses, by portfolio segment and class as of June 30, 2022

and December 31, 2021, respectively.

(Dollars in thousands)

March 31, 2022

June 30, 2022

Commercial real estate:

6 unchanged sentences

Total residential real estate

At March 31, 2022 there were no significant outstanding commitments to advance additional

funds to customers whose

loans had been restructured.

There were no loans modified in a TDR during the quarters ended March 31,

2022 and 2021, respectively.

periods, the Company had no loans modified in a TDR within the previous 12

months for which there was a payment

At June 30, 2022 there were no significant outstanding commitments to advance additional

funds to customers whose loans

had been restructured.

There were no loans modified in a TDR during the quarters and six months ended

June 30, 2022 and 2021,

respectively.

For the same periods, the Company had no loans modified in a TDR within the

previous 12 months for which

there was a payment default.

MORTGAGE SERVICING

2 unchanged sentences

corresponding mortgage loans are sold.

An estimate of the Company’s MSRs is determined

using assumptions that market

participants would use in estimating future net servicing income, including estimates

of prepayment speeds, discount rate,

default rates, cost to service, escrow account earnings, contractual servicing

fee income, ancillary income, and late fees.

Subsequent to the date of transfer, the Company

has elected to measure its MSRs under the amortization method.

the amortization method, MSRs are amortized in proportion to, and over the period

An estimate of the fair value of the Company’s MSRs is

determined using

assumptions that market participants would use in estimating future net

servicing income, including estimates of

prepayment speeds, discount rates, default rates, costs to service, escrow account earnings,

contractual servicing fee

income, ancillary income, and late fees.

Subsequent to the date of transfer, the

Company has elected to measure its MSRs

under the amortization method.

Under the amortization method, MSRs are amortized in proportion to, and over the period

of, estimated net servicing income.

Increases in market interest rates generally increase the fair value of MSRs by reducing

prepayments and refinancings and

therefore the prepayment speed.

The Company has recorded MSRs related to loans sold to Fannie Mae.

The Company generally sells conforming, fixed-

rate, closed-end, residential mortgages to Fannie Mae.

MSRs are included in other assets on the accompanying

consolidated balance sheets.

The Company has recorded MSRs related to loans sold without recourse to Fannie Mae.

The Company generally sells

conforming, fixed-rate, closed-end, residential mortgages to Fannie Mae.

MSRs are included in other assets on the

accompanying consolidated balance sheets.

The Company evaluates MSRs for impairment on a quarterly basis.

5 unchanged sentences

as the fair value changes.

Changes in the valuation allowance are recognized in earnings

as a component of mortgage

Changes in the valuation allowance are recognized in earnings as a component

lending income.

The change in amortized MSRs and the related valuation allowance for the quarters

ended March 31, 2022 and 2021 are

presented below.

Quarter ended March 31,

The following table details the changes in amortized MSRs and the related valuation allowance

for the respective periods.

Quarter ended June 30,

Six months ended June 30,

(Dollars in thousands)

12 unchanged sentences

, as the price that would be received to sell

an asset or paid to transfer a liability in an orderly transaction occurring in the principal market

(or most advantageous

an asset or paid to transfer a liability in an orderly transaction occurring in the principal

market (or most advantageous

market in the absence of a principal market) for an asset or liability at the measurement date.

8 unchanged sentences

liabilities in active markets,

quoted prices for identical or similar assets or liabilities in markets that are not active, or

inputs that are observable for the

quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that

are observable for the

asset or liability, either directly or

11 unchanged sentences

that transfers in and out of any level are expected to be infrequent.

For the quarter ended

March 31, 2022, there were no

For the six months

ended June 30, 2022, there were no

transfers between levels and no changes in valuation techniques for the Company’s

2 unchanged sentences

Securities available-for-sale

Fair values of securities available for sale were primarily measured

using Level 2 inputs.

Fair values of securities available for sale were primarily measured using

Level 2 inputs.

For these securities, the Company

1 unchanged sentence

These third party pricing services consider observable data that may

include broker/dealer quotes, market spreads, cash flows, benchmark

yields, reported trades for similar securities, market

include broker/dealer quotes, market spreads, cash flows, benchmark yields, reported

trades for similar securities, market

consensus prepayment speeds, credit information, and the securities’ terms and

On a quarterly basis,

management reviews the pricing received from the third party pricing services for

reasonableness given current market

management reviews the pricing received from the third party pricing services for reasonableness

given current market

As part of its review, management

1 unchanged sentence

measurements.

In addition, management will periodically submit pricing provided

by the third party pricing services to

In addition, management will periodically submit pricing provided by the

third party pricing services to

another independent valuation firm on a sample basis.

This independent valuation firm will compare the price provided by

This independent valuation firm will compare the price provided

the third party pricing service with its own price and will review the significant assumptions

1 unchanged sentence

used with management.

The following table presents the balances of the assets and liabilities measured at fair value

on a recurring basis as of March

The following table presents the balances of the assets and liabilities measured at

fair value on a recurring basis as of June

30, 2022 and December 31, 2021, respectively,

5 unchanged sentences

(Dollars in thousands)

March 31, 2022:

June 30, 2022:

Securities available-for-sale:

47 unchanged sentences

determining fair value.

Impaired loans are reviewed and evaluated on at least a quarterly

basis for additional impairment

Impaired loans are reviewed and evaluated on at least a quarterly basis

for additional impairment

and adjusted accordingly, based

5 unchanged sentences

recorded at the lower of the loan’s carrying amount

or the fair value less costs to sell upon transfer of the loans to other rea.

or the fair value less costs to sell upon transfer of the loans to other real

Subsequently, other real

38 unchanged sentences

at fair value on a nonrecurring basis as of

March 31, 2022 and December 31, 2021, respectively,

June 30, 2022 and December 31, 2021, respectively,

by caption, on the accompanying consolidated balance sheets and by

5 unchanged sentences

(Dollars in thousands)

March 31, 2022:

June 30, 2022:

Loans held for sale

3 unchanged sentences

Total assets at fair value

Loans considered impaired under ASC 310-10-35

Loans considered impaired under ASC 310-10-35 Receivables.

This amount reflects the recorded investment in impaired

1 unchanged sentence

Represents other real estate owned and MSRs, net,

both of which are carried at lower of cost or estimated

carried at lower of cost or estimated fair value.

Quantitative Disclosures for Level 3 Fair Value

At March 31, 2022 and December 31, 2021, the Company had no Level 3 assets measured

At June 30, 2022 and December 31, 2021, the Company had no Level 3 assets measured

at fair value on a recurring basis.

For Level 3 assets measured at fair value on a non-recurring basis at March 31, 2022

and December 31, 2021, the

significant unobservable inputs used in the fair value measurements are presented

For Level 3 assets measured at fair value on a non-recurring basis at June 30, 2022

and December 31, 2021, the significant

unobservable inputs used in the fair value measurements are presented

(Dollars in thousands)

1 unchanged sentence

Unobservable Input

March 31, 2022:

June 30, 2022:

Impaired loans

Appraisal discounts

Other real estate owned

Appraisal discount

Mortgage servicing rights, net

15 unchanged sentences

whether or not

recognized on the face of the balance sheet, for which it is practicable to estimate that value.

recognized on the face of the balance sheet, for which it is practicable to estimate

The assumptions used in the

21 unchanged sentences

cash flows, adjusted for estimated prepayments.

The fair value of loans was measured using an exit price

The fair value of loans was measured using an exit price notion.

Loans held for sale

7 unchanged sentences

related estimated fair value, and placement in the fair value hierarchy of the Company’s

instruments at March 31, 2022 and December 31, 2021 are presented below.

instruments at June 30, 2022 and December 31, 2021 are presented below.

This table excludes financial instruments for

13 unchanged sentences

(Dollars in thousands)

March 31, 2022:

June 30, 2022:

Financial Assets:

13 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements