What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-11-07 compared with 2023-08-08 · 252 added, 234 removed, 1037 unchanged (32% of the section changed)

4 unchanged sentences

Consolidated Balance Sheets

September 30,

(Dollars in thousands, except share data)

21 unchanged sentences

Less treasury stock, at cost -

at June 30, 2023

at September 30, 2023

and December 31, 2022, respectively

6 unchanged sentences

Consolidated Statements of Earnings

Quarter ended June 30,

Six months ended June 30,

Quarter ended September 30,

Nine months ended September 30,

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

13 unchanged sentences

Bank-owned life insurance

Securities gains, net

Total noninterest income

15 unchanged sentences

Consolidated Statements of Comprehensive Income

Quarter ended June 30,

Six months ended June 30,

Quarter ended September 30,

Nine months ended September 30,

(Dollars in thousands)

Other comprehensive (loss) income, net of tax:

Unrealized net (loss) gain on securities

Other comprehensive (loss) income

Comprehensive (loss) income

Other comprehensive loss, net of tax:

Unrealized net loss on securities

Reclassification adjustment for net gain on securities

recognized in net earnings

Other comprehensive loss

Comprehensive loss

See accompanying notes to consolidated financial statements

6 unchanged sentences

(loss) income

Quarter ended June 30, 2023

Balance, March 31, 2023

Quarter ended September 30, 2023

Balance, June 30, 2023

Other comprehensive loss

2 unchanged sentences

Sale of treasury stock

Balance, September 30, 2023

Quarter ended September 30, 2022

Balance, June 30, 2022

Quarter ended June 30, 2022

Balance, March 31, 2022

Other comprehensive loss

2 unchanged sentences

Sale of treasury stock

Balance, June 30, 2022

Six months ended June 30,2023

Balance, September 30, 2022

Nine months ended September 30, 2023

Balance, December 31, 2022

Cumulative effect of change in accounting

Other comprehensive income

Other comprehensive loss

Cash dividends paid ($

1 unchanged sentence

Sale of treasury stock

Balance, June 30, 2023

Six months ended June 30,2022

Balance, September 30, 2023

Nine months ended September 30, 2022

Balance, December 31, 2021

3 unchanged sentences

Sale of treasury stock

Balance, June 30, 2022

Balance, September 30, 2022

See accompanying notes to consolidated financial statements

3 unchanged sentences

Consolidated Statements of Cash Flows

Six months ended June 30,

Nine months ended September 30,

(Dollars in thousands)

5 unchanged sentences

Premium amortization and discount accretion, net

Net gain on securities available-for-sale

Net gain on sale of loans held for sale

5 unchanged sentences

Net decrease (increase) in other assets

Net (decrease) increase in accrued expenses and other liabilities

Net increase in accrued expenses and other liabilities

Net cash provided by operating activities

2 unchanged sentences

Purchase of securities available-for-sale

(Increase) decrease in loans, net

Increase in loans, net

Net purchases of premises and equipment

Proceeds from bank-owned life insurance death benefit

Decrease (increase) in FHLB stock

Proceeds from surrender of bank-owned life insurance

Increase in FHLB stock

Proceeds from sale of other real estate owned

1 unchanged sentence

Cash flows from financing activities:

Net decrease in noninterest-bearing deposits

Net increase in interest-bearing deposits

Net (decrease) increase in federal funds purchased and securities sold

Net (decrease) increase in noninterest-bearing deposits

Net increase (decrease) in interest-bearing deposits

Net decrease in federal funds purchased and securities sold

under agreements to repurchase

1 unchanged sentence

Dividends paid

Net cash (used in) provided by financing activities

Net cash provided by (used in) financing activities

Net change in cash and cash equivalents

26 unchanged sentences

necessary to present a fair

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

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

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

or the entire year.

information, refer to the consolidated financial statements and footnotes included

in the Company's Annual Report on Form

information, refer to the consolidated financial statements and footnotes included in the Company's

Annual Report on Form

10-K for the year ended December 31, 2022.

11 unchanged sentences

Material estimates that are particularly susceptible to significant change in the near term

include the determination of allowance for credit losses investment securities, the

determination of the allowance for credit

losses on loans, fair value of financial instruments, and the valuation of deferred

tax assets and other real estate owned

include the determination of allowance for credit losses on investment securities

and loans, fair value of financial

instruments, and the valuation of deferred tax assets and other real estate owned (“OREO”).

Revenue Recognition

33 unchanged sentences

is based on various other factors,

including the credit quality of the purchaser, the structure

of the loan, and any

including the credit quality of the purchaser,

the structure of the loan, and any

other factors that we believe may affect collectability.

Subsequent Events

The Company has evaluated the effects of events and transactions

through the date of this filing that have occurred

subsequent to June 30, 2023.

The Company does not believe there were any material subsequent events during this

that would have required further recognition or disclosure in the unaudited

consolidated financial statements included in

The Company has evaluated the effects of events and transactions through

the date of this filing that have occurred

subsequent to September 30, 2023.

The Company does not believe there were any material subsequent events during

period that would have required further recognition or disclosure in the unaudited

consolidated financial statements

included in this report.

Reclassifications

36 unchanged sentences

million, which is recorded within other liabilities.

recorded a net decrease to retained earnings of $0.8 million as of January 1, 2023 for the cumulative

effect of adopting

recorded a net decrease to retained earnings of $

million as of January 1, 2023 for the cumulative effect of adopting

CECL, which reflects the transition adjustments noted above, net of the applicable deferred

28 unchanged sentences

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.

guidance to determine whether a modification results in a new loan or a

continuation of an existing loan.

Additionally,

23 unchanged sentences

business conditions and collection

efforts, that the principal or interest will not be collectible in the normal course

efforts, that the principal or interest will not be collectible in the normal

course of business.

Past due status is based on

16 unchanged sentences

amount expected to be collected on the loans.

Loans are charged

off against the allowance when management believes the

Loans are charged off

against the allowance when management believes the

uncollectibility of a loan balance is confirmed.

10 unchanged sentences

supportable forecasts.

The Company’s loan loss estimation process includes

procedures to appropriately consider the unique characteristics of

The Company’s loan loss estimation process

includes procedures to appropriately consider the unique characteristics of

respective loan segments (commercial and industrial, construction and land development,

commercial real estate,

multifamily, residential real estate,

and consumer loans).

These segments are further disaggregated into loan classes, the

level at which credit quality is monitored.

See Note 5, Loans and Allowance for Credit Losses, for additional information

about our loan portfolio.

residential real estate, and consumer loans).

These segments are further disaggregated into loan classes, the level at

credit quality is monitored.

See Note 5, Loans and Allowance for Credit Losses, for additional information about our

Credit loss assumptions are estimated using a discounted cash flow ("DCF") model

14 unchanged sentences

commercial real estate,

multifamily, and residential real estate

In addition, forecasted changes in the Alabama home

price index is considered in the model for construction and land development and residential

real estate loans;

changes in the national commercial real estate (“CRE”) price index is considered in the

model for commercial real estate

and multifamily loans;

and forecasted changes in the Alabama gross state product

is considered in the model for

multifamily loans.

Projections of these macroeconomic factors, obtained from an independent

third party, are utilized to

predict quarterly rates of default based on the statistical PD models.

Expected credit losses are estimated over the contractual term of the loan, adjusted for

expected prepayments and principal

and residential real estate loans.

In addition, forecasted changes in the Alabama home price index

is considered in the model for construction and land development and residential real

estate loans;

forecasted changes in the

national commercial real estate (“CRE”) price index is considered

in the model for commercial real estate and multifamily

and forecasted changes in the Alabama gross state product is considered

in the model for multifamily loans.

Projections of these macroeconomic factors, obtained from an independent third

party, are utilized to predict

quarterly rates

of default based on the statistical PD models.

Expected credit losses are estimated over the contractual term of the loan, adjusted

for expected prepayments and principal

payments (“curtailments”) when appropriate.

Management's determination

of the contract term excludes expected

determination of the contract term excludes expected

extensions, renewals, and modifications unless the extension or

21 unchanged sentences

These qualitative adjustments may

increase or reduce reserve levels and include adjustments for lending management experience

and risk tolerance, loan

review and audit results, asset quality and portfolio trends, loan portfolio growth, industry

concentrations, trends in

underlying collateral, external factors and economic conditions not already captured.

Loans that do not share risk characteristics are evaluated on an individual basis.

management determines that

foreclosure is probable and the borrower is experiencing financial difficulty,

the expected credit losses are based on the

estimated fair value of collateral held at the reporting date, adjusted for selling costs as

increase reserve levels and include adjustments for lending management experience and

risk tolerance, loan review and

audit results, asset quality and portfolio trends, loan portfolio growth, industry concentrations,

trends in underlying

collateral, external factors and economic conditions not already captured.

Loans secured by real estate with balances equal to or greater than $500 thousand and loans not secured

by real estate with

balances equal to or greater than $250 thousand that do not share risk characteristics

are evaluated on an individual basis.

When management determines that foreclosure is probable and the borrower

is experiencing financial difficulty,

expected credit losses are based on the estimated fair value of collateral held at the reporting

date, adjusted for selling costs

as appropriate.

Allowance for Credit Losses – Unfunded Commitments

7 unchanged sentences

contractual amount of those instruments.

Such financial instruments are recorded

when they are funded.

Such financial instruments are

recorded when they are funded.

The Company records an allowance for credit losses on off-balance

12 unchanged sentences

On January 1, 2023, the Company recorded an adjustment for unfunded commitments of

thousand for the adoption of

At June 30, 2023, the liability for credit losses on off-balance-sheet credit exposures included

in other liabilities

$77 thousand upon the adoption of

At September 30, 2023,

the liability for credit losses on off-balance-sheet credit exposures included in other

liabilities was $

Provision for Credit Losses

1 unchanged sentence

is presented below.

Quarter ended June 30,

Six months ended June 30,

Quarter ended September 30,

Nine months ended September 30,

(Dollars in thousands)

13 unchanged sentences

Company’s common stock.

At June 30, 2023 and 2022,

At September 30, 2023 and

2022, respectively, the Company

1 unchanged sentence

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,

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

presented below

Quarter ended September 30,

Nine months ended September 30,

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

9 unchanged sentences

resources for the entity to support its activities.

At June 30, 2023, the Company did not have any consolidated VIEs to disclose but did

have one nonconsolidated VIE,

discussed below.

At September 30, 2023, the Company did not have any consolidated VIEs to

disclose but did have one nonconsolidated

VIE, discussed below.

New Markets Tax

1 unchanged sentence

The New Markets Tax Credit

(“NMTC”) program provides federal tax incentives to investors to make investments in

(“NMTC”) program provides federal tax incentives to investors to make investments

distressed communities and promotes economic improvement through the development

2 unchanged sentences

during such period.

At June 30, 2023 and December 31, 2022, respectively,

the Company had one such investment in the

amounts of $1.9 million and $2.1 million, respectively,

At September 30, 2023 and December 31, 2022, respectively,

the Company had one such investment in

the amounts of $1.8 million and $2.1 million, respectively,

which was included in other assets in the consolidated balance

11 unchanged sentences

New Markets Tax Credit investment

At June 30, 2023 and December 31, 2022, respectively,

At September 30, 2023 and December 31, 2022, 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 June 30, 2023 and December 31, 2022, respectively,

are presented below.

The fair value and amortized cost for securities available-

for-sale by contractual maturity at September 30, 2023 and December

31, 2022, respectively, are

presented below.

Gross Unrealized

(Dollars in thousands)

June 30, 2023

September 30, 2023

Agency obligations (a)

11 unchanged sentences

million and $

million at June 30, 2023 and December 31, 2022,

million at September 30, 2023 and December 31, 2022,

respectively, were pledged to

2 unchanged sentences

or permitted by law.

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

Other assets on the accompanying consolidated balance sheets include non-marketable

equity investments.

carrying amounts of non-marketable equity investments were $

million at June 30, 2023 and December 31, 2022,

respectively.

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

Reserve Bank of Atlanta

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

amounts of non-marketable equity investments were $

million at September 30, 2023 and $

million at December 31,

Non-marketable equity investments include FHLB of Atlanta tock, Federal 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 June 30, 2023

and December 31, 2022, 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 September 30,

2023 and December 31, 2022, 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)

June 30, 2023:

September 30, 2023:

Agency obligations

8 unchanged sentences

Because the Company currently does not intend to sell those securities that have an

unrealized loss at June 30, 2023 and it

is not more-likely-than-not that the Company will be required

to sell the security before recovery of their amortized cost

bases, which may be maturity,

unrealized loss at September 30, 2023

and it is not more-likely-than-not that the Company will be required to sell the security before

recovery of their amortized

cost bases, which may be maturity,

the Company has determined that no provision for credit loss is necessary.

In addition, the

Company evaluates whether any portion of the decline in fair value of available-for-sale

the Company evaluates whether any portion of the decline in fair value of available-for-sale

securities is the result of credit

5 unchanged sentences

The unrealized losses associated with available-for-

sale securities at June 30, 2023 are driven by changes in market interest rates and are

not due to the credit quality of the

securities, and accordingly, no

allowance for credit losses is considered necessary related to available-for-sale

sale securities at September 30, 2023 are driven by changes in market interest rates and

are not due to the credit quality of

the securities, and accordingly,

no allowance for credit losses is considered necessary for available-for-sale

securities at

June 30, 2023.

September 30, 2023.

These securities will continue to be monitored as a part

4 unchanged sentences

Realized Gains and Losses

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

and six months ended June 30, 2023

and 2022, respectively.

The following table presents the gross realized gains and losses on sales of securities.

Quarter ended September 30,

Nine months ended September 30,

(Dollars in thousands)

Gross realized gains

Realized gains, net

LOANS AND ALLOWANCE

FOR CREDIT LOSSES

September 30,

(Dollars in thousands)

9 unchanged sentences

Consumer installment

Loans secured by real estate were approximately

of the Company’s total loan portfolio

at June 30, 2023.

2023, the Company’s geographic loan

distribution was concentrated primarily in Lee County,

Alabama, and surrounding

The loan portfolio segment is defined as the level at which an entity develops and documents a systematic

Loans secured by real estate were approximately 86.0% of the Company’s

total loan portfolio at September 30, 2023.

September 30, 2023, the Company’s

geographic loan distribution was concentrated primarily in Lee County,

surrounding areas.

The loan portfolio segment is defined as the level at which an entity develops and documents a

systematic method for

determining its allowance for credit losses.

12 unchanged sentences

method for monitoring and determining credit risk.

The following describes the risk characteristics relevant to each of the portfolio segments

The following describes

the risk characteristics relevant to each of the portfolio segments

Commercial and industrial (“C&I”) —

44 unchanged sentences

The underwriting of these loans takes into consideration

the occupancy and rental

the occupancy and rental rates,

as well as the financial health of the borrower.

5 unchanged sentences

These loans are underwritten in

with the Bank’s general loan policies and procedures

which require, among other things, proper documentation of

with the Bank’s general loan policies and

procedures which require, among other things, proper documentation of

each borrower’s financial condition, satisfactory credit history

18 unchanged sentences

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

segment and class as of June

30, 2023 and December 31, 2022.

segment and class as of

September 30, 2023 and December 31, 2022.

(Dollars in thousands)

June 30, 2023:

September 30, 2023:

Commercial and industrial

24 unchanged sentences

The following table presents credit quality

indicators for the loan portfolio segments and classes by year of origination as of June 30,

indicators for the loan portfolio segments and classes by year of origination as of September

These categories are

2 unchanged sentences

environmental factors and are defined as follows:

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

of the obligor (or guarantors, if

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

obligor (or guarantors, if

any) or by the fair value, less cost to acquire and sell, of any underlying collateral.

13 unchanged sentences

(Dollars in thousands)

June 30, 2023:

September 30, 2023:

Commercial and industrial

15 unchanged sentences

(Dollars in thousands)

June 30, 2023:

September 30, 2023:

Special mention

31 unchanged sentences

The following table is a summary of the Company’s

nonaccrual loans by major categories as of June 30, 2023 and

nonaccrual loans by major categories as of September 30, 2023

December 31, 2022.

Incurred Loss

June 30, 2023

September 30, 2023

December 31, 2022

9 unchanged sentences

Business Assets

June 30, 2023:

September 30, 2023:

Commercial and industrial

11 unchanged sentences

the respective periods.

June 30, 2023

September 30, 2023

(Dollars in thousands)

5 unchanged sentences

Ending balance

Six months ended:

Nine months ended:

Beginning balance

3 unchanged sentences

Ending balance

June 30, 2022

September 30, 2022

(Dollars in thousands)

5 unchanged sentences

Ending balance

Six months ended:

Nine months ended:

Beginning balance

Net recoveries (charge-offs)

Net (charge-offs) recoveries

Provision for loan losses

2 unchanged sentences

investment in loans by portfolio

segment and impairment methodology as of June 30, 2022 as determined, prior

segment and impairment methodology as of September 30, 2022 as determined, prior

to the adoption of ASC 326.

2 unchanged sentences

(In thousands)

June 30, 2022:

September 30, 2022:

Commercial and industrial

58 unchanged sentences

troubled debt restructurings (TDRs).

As of June 30, 2023,

the Company had no loans that would have previously required disclosure as TDRs.

As of September 30,

2023, the Company had no loans that would have previously required

disclosure as TDRs.

The following table provides the average recorded investment in impaired loans, if

3 unchanged sentences

segment and class during the quarter

and six months ended June 30, 2023 as determined under ASC 310 prior to the adoption of ASC 326.

Quarter ended June 30, 2022

Six months ended June 30, 2022

and nine months ended September 30, 2022 as determined under ASC 310

prior to the adoption of ASC 326.

Quarter ended September 30, 2022

Nine months ended September 30, 2022

Total interest

11 unchanged sentences

corresponding mortgage loans are sold.

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

is determined using

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

24 unchanged sentences

the respective periods.

Quarter ended June 30,

Six months ended June 30,

Quarter ended September 30,

Nine months ended September 30,

(Dollars in thousands)

11 unchanged sentences

Measurements and Disclosures

, 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

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

GAAP 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:

, and focuses on the exit price, i.e., 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 market in the absence of a principal

market) for an asset or liability at the measurement date.

GAAP 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

Level 1—inputs to the valuation methodology are quoted prices, unadjusted, for identical

17 unchanged sentences

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

For the six months

ended June 30, 2023, there were no

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

assets and liabilities.

months ended September 30, 2023, there

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

financial assets and liabilities.

Assets and liabilities measured at fair value on a recurring

5 unchanged sentences

These third party pricing services consider observable data that

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

13 unchanged sentences

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

on a recurring basis as of June

30, 2023 and December 31, 2022, respectively,

by caption, on the accompanying consolidated balance sheets by ASC 820

valuation hierarchy (as described above).

on a recurring basis as of

September 30, 2023 and December 31, 2022, respectively,

by caption, on the accompanying consolidated balance sheets by

ASC 820 valuation hierarchy (as described above).

Quoted Prices in

2 unchanged sentences

(Dollars in thousands)

June 30, 2023:

September 30, 2023:

Securities available-for-sale:

35 unchanged sentences

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

Periodically, the Company

broker surveys and other market research to validate significant assumptions used

in the model.

The significant

unobservable inputs include prepayment speeds or the constant prepayment rate (“CPR”)

and the weighted average

discount rate.

Because the valuation of MSRs requires the use of significant unobservable

inputs, all of the Company’s

MSRs are classified within Level 3 of the valuation hierarchy.

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

at fair value on a nonrecurring basis as of

June 30, 2023 and December 31, 2022, respectively,

by caption, on the accompanying consolidated balance sheets and by

FASB ASC 820 valuation

hierarchy (as described above):

future net servicing income, including estimates of mortgage prepayment speeds,

discount rates, default rates, costs to

service, escrow account earnings, contractual servicing fee income, ancillary

income, and late fees.

Periodically, the

Company will review broker surveys and other market research to

validate significant assumptions used in the model.

significant unobservable inputs include mortgage prepayment speeds or

the constant prepayment rate (“CPR”) and the

weighted average discount rate.

Because the valuation of MSRs requires the use of significant unobservable inputs, all of

the Company’s MSRs are classified

within Level 3 of the valuation hierarchy.

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

on a nonrecurring basis as of

September 30, 2023 and December 31, 2022, respectively,

by caption, on the accompanying consolidated balance sheets

and by FASB ASC 820

valuation hierarchy (as described above):

Quoted Prices in

2 unchanged sentences

(Dollars in thousands)

June 30, 2023:

September 30, 2023:

Total assets at fair value

10 unchanged sentences

Quantitative Disclosures for Level 3 Fair Value

At June 30, 2023 and December 31, 2022, 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 June 30, 2023

and and December 31, 2022, the

significant unobservable inputs used in the fair value measurements and

the range of such inputs with respect to such assets

are presented below.

At September 30, 2023 and December 31, 2022, the Company had no Level 3 assets

measured at fair value on a recurring

For Level 3 assets measured at fair value on a non-recurring basis at September

30, 2023 and and December 31,

2022, the significant unobservable inputs used in the fair value measurements and

the range of such inputs with respect to

such assets are presented below.

(Dollars in thousands)

1 unchanged sentence

Unobservable Input

June 30, 2023:

September 30, 2023:

Collateral dependent loans

15 unchanged sentences

whether or not

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

recognized on the face of the balance sheet, where it is practicable to

estimate that value.

The assumptions used in the

19 unchanged sentences

loans would be made for the same remaining maturities.

future cash flows were projected based on contractual

Expected future cash

flows were projected based on contractual

cash flows, adjusted for estimated prepayments.

6 unchanged sentences

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

instruments at June 30, 2023 and December 31, 2022 are presented below.

This table excludes financial instruments for

which the carrying amount approximates fair value.

Financial assets for which fair value approximates carrying

instruments at September 30, 2023 and December 31, 2022 are presented below.

This table excludes financial instruments

for which the carrying amount approximates fair value.

Financial assets for which fair value approximates carrying value

included cash and cash equivalents.

Financial liabilities for which fair value approximates carrying value

Financial liabilities for which fair value approximates carrying value included

noninterest-bearing demand deposits,

6 unchanged sentences

and securities sold under agreements to repurchase.

The following table summarizes our fair value estimates:

Fair Value Hierarchy

(Dollars in thousands)

June 30, 2023:

September 30, 2023:

Financial Assets:

11 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