What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-05-13 compared with 2021-11-15 · 150 added, 238 removed, 687 unchanged (36% of the section changed)

3 unchanged sentences

and Subsidiary

September 30,

Consolidated Balance Sheets

8 unchanged sentences

( 7,710,256 )

Deferred net loan fees

( 1,149,278 )

( 1,195,741 )

Deferred net loan cost (fees)

Bank premises and equipment, net

18 unchanged sentences

Shareholders’ Equity

Preferred stock, 1,000,000 shares authorized, 15 shares issued and outstanding

at 09/30/21 and 12/31/20 ($ 100,000 liquidation value, per share)

Preferred stock, 1,000,000 shares authorized, 15 shares issued and outstanding at 03/31/22 and 12/31/21 ($ 100,000 liquidation value, per share)

Common stock - $ 2.50 par value;

15,000,000 shares authorized, 5,575,074

shares issued at 09/30/21 and 5,527,380 shares issued at 12/31/20

15,000,000 shares authorized, 5,602,178 shares issued at 03/31/22 and 5,587,939 shares issued at 12/31/21

Additional paid-in capital

Retained earnings

Accumulated other comprehensive (loss) income

Accumulated other comprehensive loss

( 9,911,608 )

( 1,166,971 )

treasury stock, at cost;

10 unchanged sentences

and Subsidiary

Three Months Ended

September 30,

Consolidated Statements of Income

Interest income

Interest and fees on loans

Interest on taxable debt securities

Interest on federal funds sold and overnight deposits

Total interest income

Interest expense

Interest on deposits

Interest on borrowed funds

Interest on repurchase agreements

Interest on junior subordinated debentures

Total interest expense

Net interest income

Provision for loan losses

Net interest income after provision for loan losses

Non-interest income

Income from sold loans

Other income from loans

Total non-interest income

Non-interest expense

Salaries and wages

Employee benefits

Occupancy expenses, net

Other expenses

Total non-interest expense

Income before income taxes

Income tax expense

Earnings per common share

Weighted average number of common shares used in computing earnings per share

Dividends declared per common share

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

Community Bancorp.

and Subsidiary

Nine Months Ended

September 30,

Three Months Ended March 31,

Consolidated Statements of Income

1 unchanged sentence

Interest and fees on loans

Interest on taxable debt securities

Interest on debt securities

Interest on federal funds sold and overnight deposits

12 unchanged sentences

Other income from loans

Net realized gain on sale of securities AFS

Total non-interest income

14 unchanged sentences

Consolidated Statements of Comprehensive Income

Three Months Ended

September 30,

Three Months Ended March 31,

Other comprehensive loss, net of tax:

Unrealized holding loss on securities AFS arising during the period

( 11,069,161 )

( 1,660,640 )

Other comprehensive loss, net of tax

Total comprehensive income

Nine Months Ended

September 30,

Other comprehensive (loss) income, net of tax:

Unrealized holding (loss) gain on securities AFS arising during the period

( 8,744,637 )

Reclassification adjustment for gain realized in income

Unrealized (loss) gain during the period

( 1,311,905 )

Other comprehensive (loss) income, net of tax

Total comprehensive (loss) income

$ ( 6,339,095 )

Total comprehensive income

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Changes in Shareholders’ Equity

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

shareholders’

January 1, 2022

$ ( 1,166,971 )

$ ( 2,622,777 )

Issuance of common stock

8 unchanged sentences

March 31, 2022

Issuance of common stock

Cash dividends declared

$ ( 9,911,608 )

$ ( 2,622,777 )

Preferred stock

Comprehensive income

Other comprehensive income

June 30, 2021

Issuance of common stock

Cash dividends declared

( 1,176,771 )

Preferred stock

Comprehensive income

Other comprehensive loss

September 30, 2021

*Accumulated other comprehensive (loss) income

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

Nine Months Ended September 30, 2020

Three Months Ended March 31, 2021

shareholders’

3 unchanged sentences

Cash dividends declared

Preferred stock

Comprehensive income

Other comprehensive income

March 31, 2020

( 1,169,555 )

Issuance of common stock

Cash dividends declared

( 1,169,555 )

Preferred stock

Comprehensive income

Other comprehensive income

June 30, 2020

Other comprehensive loss

( 1,311,905 )

Issuance of common stock

Cash dividends declared

( 1,311,905 )

March 31, 2021

$ ( 396,557 )

Preferred stock

Comprehensive income

Other comprehensive loss

September 30, 2020

$ ( 2,622,777 )

*Accumulated other comprehensive income

*Accumulated other comprehensive (loss) income

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Cash Flows

Nine Months Ended September 30,

Three Months Ended March 31,

Cash Flows from Operating Activities:

3 unchanged sentences

Deferred income tax

Net realized gain on sale of securities AFS

Gain on sale of loans

Gain on sale of bank premises and equipment

Gain on sale of OREO

Capital loss on leases

Income from CFS Partners

(Income) loss from CFS Partners

Amortization of bond premium, net

3 unchanged sentences

( 2,435,200 )

Decrease in taxes payable

Decrease (increase) in interest receivable

Decrease (increase) in mortgage servicing rights

Increase in taxes payable

Increase in interest receivable

(Increase) decrease in mortgage servicing rights

Decrease in right-of-use assets

6 unchanged sentences

Decrease in accrued expenses

Decrease in other liabilities

(Decrease) increase in other liabilities

Net cash provided by operating activities

5 unchanged sentences

Proceeds from redemption of restricted equity securities

Purchases of restricted equity securities

Decrease in limited partnership contributions payable

Proceeds of distribution from CFS Partners

Decrease (increase) in loans, net

Increase in loans, net

( 6,998,537 )

Capital expenditures net of proceeds from sales of bank

premises and equipment

Proceeds from sales of OREO

( 20,167,317 )

Capital expenditures net of proceeds from sales of bank premises and equipment

( 2,657,300 )

Recoveries of loans charged off

3 unchanged sentences

Cash Flows from Financing Activities:

Net increase in demand and interest-bearing transaction accounts

Net (decrease) increase in demand and interest-bearing transaction accounts

( 12,916,068 )

Net increase in money market and savings accounts

Net decrease in time deposits

Net increase (decrease) in time deposits

( 3,639,187 )

2 unchanged sentences

( 6,627,854 )

Proceeds from long-term borrowings

Repayments on long-term borrowings

Decrease in finance lease obligations

(Decrease) increase in finance lease obligations

Dividends paid on preferred stock

Dividends paid on common stock

Net cash (used in) provided by financing activities

( 6,931,260 )

Net decrease in cash and cash equivalents

( 25,906,154 )

Net cash provided by financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents:

( 21,855,500 )

Cash and cash equivalents:

Supplemental Schedule of Cash Paid During the Period:

Income taxes, net of refunds

Supplemental Schedule of Noncash Investing and Financing Activities:

Change in unrealized (loss) gain on securities AFS

Change in unrealized loss on securities AFS

$ ( 11,069,161 )

Additions to finance lease obligations

$ ( 1,660,640 )

Common Shares Dividends Paid:

13 unchanged sentences

The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for any other interim period or the full annual period ending December 31, 2022.

There were reclassifications to the consolidated financial statements for the periods presented.

There were no reclassifications to the consolidated financial statements for the periods presented.

The Company is considered a “smaller reporting company” under the disclosure rules of the SEC, as amended in 2018.

5 unchanged sentences

Financial Accounting Standards Board

Atlantic Community Bankers Bank

Federal Deposit Insurance Corporation

Available-for-sale

Federal Home Loan Bank of Boston

Federal Deposit Insurance Corporation

MBS issued by a US government agency

Federal Home Loan Bank of Boston

Federal Home Loan Mortgage Corporation

Federal Open Market Committee

Asset Liability Committee

Federal Reserve Board

Federal Open Market Committee

Allowance for loan losses

Federal Reserve Bank of Boston

Federal Reserve Board

Accumulated other comprehensive income

Generally Accepted Accounting Principles

Federal Reserve Bank of Boston

Accounting Standards Codification

in the United States

Generally Accepted Accounting Principles

Accounting Standards Update

Government sponsored enterprise

Automatic transfer service

Held-to-maturity

in the United States

Community Bancorp.

Insured Cash Sweeps of the Promontory

Government sponsored enterprise

Community National Bank

Interfinancial Network

Bankers Healthcare Group

Internal Revenue Service

Held-to-maturity

Borrower-in-Custody

Jobs for New England

Insured Cash Sweeps of the InterFi Network

Board of Directors

Internal Revenue Service

Bank owned life insurance

Mortgage-backed security

Jobs for New England

Basis point(s)

Mortgage Partnership Finance

Bank Secrecy Act

Mortgage servicing rights

Coronavirus Aid Relief and Economic

Mortgage-backed security

Mortgage servicing rights

Community Bank Leverage Ratio

Net interest income

Certificate of Deposit Accounts Registry

Other amortizing security

Community Bank Leverage Ratio

Service of the InterFi Network

Other comprehensive income (loss)

Certificate of Deposit Accounts Registry

Other real estate owned

Service of the Promontory Interfinancial

Other-than-temporary impairment

Private mortgage insurance

Certificates of deposit

Paycheck Protection Program

Other real estate owned

Core deposit intangible

PPP Liquidity Facility of the FRBB

Other-than-temporary impairment

Current Expected Credit Loss

USDA Rural Development

Private mortgage insurance

Community Financial Services Group, LLC

Small Business Administration

Paycheck Protection Program

CFS Partners:

Community Financial Services Partners,

USDA Rural Development

Small Business Administration

Collateralized Mortgage Obligation

Securities and Exchange Commission

Supplemental Employee Retirement Plan

Collateralize Mortgage Obligation

Troubled-debt restructuring

Community Bancorp.

and Subsidiary

Department of Agriculture

Troubled-debt restructuring

Coronavirus Disease 2019

Veterans Administration

Department of Agriculture

Commercial Real Estate

2017 Tax Act:

Tax Cut and Jobs Act of 2017

Veterans Administration

Demand Deposit Account(s)

5 unchanged sentences

Securities Exchange Act of 1934

Risks and Uncertainties

The COVID-19 pandemic has adversely affected, and may continue to adversely affect, economic activity globally, nationally and locally.

Government actions taken to help mitigate the spread of COVID-19 and its economic effects included restrictions on travel, quarantines in certain areas, forced closures for certain types of public places and businesses, extensions of unemployment benefits and direct stimulus payments to individuals.

Although most COVID-19 related restrictions on businesses have been lifted, the effects of the pandemic and the measures taken in response to it are expected to continue to impact financial markets, consumer confidence, unemployment rates and the economy, including the local economy in the Company’s Vermont and New Hampshire markets, in ways that cannot be predicted.

Moreover, the emergence of new strains of the COVID-19 virus could result in additional responsive government measures and economic disruption.

In addition, due to the COVID-19 pandemic, market interest rates have declined significantly, with the 10-year Treasury bond falling below 1.00 percent on March 3, 2020 for the first time.

On March 3, 2020, the FOMC reduced the targeted federal funds interest rate range by 50 bps to a range of 1.00% to 1.25%.

This range was further reduced to a range of 0 percent to 0.25% on March 16, 2020.

On April 29, 2020, the FOMC indicated that the federal funds target rate range will remain unchanged until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.

Since that time, the FOMC has repeatedly reiterated that position, most recently in November, 2021.

The duration of these reductions in interest rates and other lingering after-effects of the COVID-19 pandemic could adversely affect the Company’s business, financial condition and results of operations in future periods.

It is reasonably possible that estimates made in the Company’s consolidated financial statements could be materially and adversely impacted as a result of the effects of the pandemic, including potential credit losses on loan receivables.

Recent Accounting Developments

10 unchanged sentences

The Company has gathered and is continuing to analyze the historical data to serve as a basis for estimating the ALL under CECL and continues to evaluate the anticipated impact of the adoption of the ASU on its consolidated financial statements.

As initially proposed, the ASU was to be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018, including interim periods within such years.

However, on October 16, 2019, the FASB approved an extended effective date for compliance with the ASU by smaller reporting companies, which are now required to comply with the ASU for fiscal years beginning after December 15, 2022, with early adoption permitted.

The Company qualifies for this extension and does not intend to early adopt the ASU at this time.

Management will continue to evaluate the Company’s CECL compliance and implementation timetable in light of the extension.

The ASU will become effective for the Company beginning with the 2023 fiscal year including interim periods.

Parallel calculations under the existing ALL methodology and the CECL model will be run throughout 2022 in preparation for the transition to CECL.

In March 2022, the FASB issued ASU No.

2022-02, Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures.

The guidance amends Topic 326 (CECL) to eliminate the accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancing and restructuring activities by creditors when a borrower is experiencing financial difficulty.

Specifically, rather than applying TDR recognition and measurement guidance, under the CECL model creditors will determine whether a modification results in a new loan or continuation of existing loan.

These amendments are intended to enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty.

Additionally, the amendments to Topic 326 require that an entity disclose current-period gross write-offs by year of origination within the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination.

The guidance will become effective for the Company beginning with the fiscal year 2023, including interim periods.

The Company is currently assessing the impact of ASU No.

2022-02 but does not expect that its adoption will have a material impact on the consolidated financial statements.

In March 2020, the FASB issued ASU No.

2020-04, Reference Rate Reform (Topic 848):

9 unchanged sentences

310-40, Receivables – Troubled Debt Restructurings by Creditors .

Additionally, a provision of the CARES Act enacted in March 2020 provides that COVID-19 related loan modifications (including modifications that are not short-term) made to a loan between March 1, 2020 and the earlier of December 31, 2020 or the sixtieth day after the end of the COVID-19 emergency declared by the President will not require the loan to be treated as a TDR under GAAP, so long as the modified loan was not past due as of December 31, 2019.

GAAP, so long as the modified loan was not past due as of December 31, 2019.

On December 27, 2020, the Consolidated Appropriations Act 2021 (CAA) extended the date for COVID-19 related loan modifications from December 31, 2020 to January 1, 2022.

2 unchanged sentences

The following tables illustrate the calculation of earnings per common share for the periods presented, as adjusted for the cash dividends declared on the preferred stock:

Three Months Ended September 30,

Net income, as reported

dividends to preferred shareholders

Net income available to common shareholders

Weighted average number of common shares

used in calculating earnings per share

Earnings per common share

Nine Months Ended September 30,

Three Months Ended March 31,

Net income, as reported

6 unchanged sentences

Debt securities AFS as of the balance sheet dates consisted of the following:

September 30, 2021

March 31, 2022

GSE debt securities

Government securities

Taxable Municipal securities

Tax-Exempt Municipal securities

Other investments

3 unchanged sentences

GSE debt securities

Government securities

Taxable Municipal securities

Tax-Exempt Municipal securities

Other investments

$ 183,819,638

$ 182,342,459

Investments pledged as collateral for repurchase agreements consisted of U.S.

2 unchanged sentences

These pledged investments as of the balance sheet dates were as follows:

September 30, 2021

March 31, 2022

December 31, 2021

Proceeds from sales of debt securities were $ 884,137 for the first nine months of 2020, with gains of $ 39,086 .

There were no sales for the first nine months of 2021.

There were no sales of debt securities for the first three months of 2022 or 2021.

The scheduled maturities of debt securities as of the balance sheet dates were as follows:

September 30, 2021

March 31, 2022

Due in one year or less

9 unchanged sentences

Due after ten years

$ 183,819,638

$ 182,342,459

Agency MBS are not due at a single maturity date and have not been allocated to maturity groupings for purposes of the maturity table.

2 unchanged sentences

12 months or more

September 30, 2021

March 31, 2022

GSE debt securities

Government securities

Taxable Municipal securities

Tax-Exempt Municipal securities

Other investments

$ 142,772,046

$ 177,219,513

Less than 12 months

12 months or more

December 31, 2021

GSE debt securities

Government securities

Taxable Municipal securities

Tax-Exempt Municipal securities

Other investments

$ 147,512,619

$ 158,243,491

The unrealized losses for all periods presented were principally attributable to changes in prevailing interest rates for similar types of securities and not deterioration in the creditworthiness of the issuer.

2 unchanged sentences

In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies or other adverse developments in the status of the securities have occurred, and the results of reviews of the issuer’s financial condition.

As of September 30, 2021 and December 31, 2020, there were no declines in the fair value of any of the securities reflected in the table above that were deemed by management to be OTTI.

As of March 31, 2022 and December 31, 2021, there were no declines in the fair value of any of the securities reflected in the table above that were deemed by management to be OTTI.

Loans, Allowance for Loan Losses and Credit Quality

The composition of net loans as of the balance sheet dates was as follows:

September 30,

Commercial & industrial

6 unchanged sentences

( 7,710,256 )

Deferred net loan fees

( 1,149,278 )

( 1,195,741 )

Deferred net loan cost (fees)

$ 688,676,880

1 unchanged sentence

The following is an age analysis of past due loans (including non-accrual) as of the balance sheet dates, by portfolio segment:

September 30, 2021

March 31, 2022

Commercial & industrial

16 unchanged sentences

Number of loans

September 30, 2021

March 31, 2022

December 31, 2021

A Vermont state-imposed moratorium on residential foreclosure proceedings adopted in April 2020 in response to the COVID-19 pandemic, ended on July 15, 2021.

Allowance for loan losses

19 unchanged sentences

During periods of significant expansion or contraction, the Company may appropriately shorten the historical time period.

Due primarily to the effects of COVID-19, during 2020 the Company shortened its look back period to one year, which remained in effect as of September 30, 2021.

Due primarily to the effects of COVID-19, during 2020 the Company shortened its look back period to one year, however, during the first quarter of 2022, the look back period was lengthened to two years.

Qualitative factors include the levels of and trends in delinquencies and non-performing loans, levels of and trends in loan risk groups, trends in volumes and terms of loans, effects of any changes in loan related policies, experience, ability and the depth of management, documentation and credit data exception levels, national and local economic trends, external factors such as competition and regulation and lastly, concentrations of credit risk in a variety of areas, including portfolio product mix, the level of loans to individual borrowers and their related interests, loans to industry segments, and the geographic distribution of CRE loans.

42 unchanged sentences

TDRs may include the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan’s terms, or a combination of the two.

As described above in Note 3, under March 2020 guidance from the federal banking agencies and concurrence by the FASB, certain short-term loan accommodations made in good faith for borrowers experiencing financial difficulties due to the COVID-19 health emergency will not be considered TDRs.

As described above in Note 2, under March 2020 guidance from the federal banking agencies and concurrence by the FASB, certain short-term loan accommodations made in good faith prior to January 1, 2022 for borrowers experiencing financial difficulties due to the COVID-19 health emergency are not considered TDRs.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.

4 unchanged sentences

The tables below summarize changes in the ALL and select loan information, by portfolio segment, for the periods indicated.

As of or for the three months ended September 30, 2021

ALL beginning balance

Provision (credit)

ALL ending balance

As of or for the nine months ended September 30, 2021

As of or for the three months ended March 31, 2022

ALL beginning balance

17 unchanged sentences

$ 689,988,533

As of or for the three months ended September 30, 2020

ALL beginning balance

Provision (credit)

ALL ending balance

As of or for the nine months ended September 30, 2020

As of or for the three months ended March 31, 2021

ALL beginning balance

1 unchanged sentence

ALL ending balance

ALL evaluated for impairment

Loans evaluated for impairment

$ 188,443,623

$ 278,483,091

$ 169,810,218

$ 729,489,639

Impaired loans, by portfolio segment, were as follows:

As of September 30, 2021

Investment(1)

As of March 31, 2022

Investment(1)

10 unchanged sentences

Total impaired loans

Recorded investment in impaired loans as of September 30, 2021 includes accrued interest receivable and deferred net loan costs of $ 34,179 .

For the three months ended September 30, 2021.

For the nine months ended September 30, 2021.

Recorded investment in impaired loans as of March 31, 2022 includes accrued interest receivable of $ 38,479 .

For the three months ended March 31, 2022.

As of December 31, 2021

13 unchanged sentences

For the year ended December 31, 2021.

As of September 30, 2020

Investment(1)

As of March 31, 2021

Investment(1)

10 unchanged sentences

Total impaired loans

Recorded investment in impaired loans as of September 30, 2020 includes accrued interest receivable and deferred net loan costs of $ 34,909 .

For the three months ended September 30, 2020.

For the nine months ended September 30, 2020.

Recorded investment in impaired loans as of March 31, 2021 includes accrued interest receivable and deferred net loan costs of $ 34,764 .

For the three months ended March 31, 2021.

For all loan segments, the accrual of interest is discontinued when a loan is specifically determined to be impaired or when the loan is delinquent 90 days and management believes, after considering collection efforts and other factors, that the borrower’s financial condition is such that collection of interest is considered by management to be doubtful.

37 unchanged sentences

The risk ratings within the loan portfolio, by segment, as of the balance sheet dates were as follows:

As of September 30, 2021

As of March 31, 2022

$ 118,322,106

35 unchanged sentences

Under this guidance, qualifying concessions and modifications are not considered TDRs.

As of September 30, 2021, the Company had granted short term loan concessions and/or modifications within the terms of this guidance to 593 borrowers, with respect to loans having an aggregate principal balance of $ 109.5 million as of September 30, 2021.

These loans may bear a higher risk of default in future periods.

In total, throughout the pandemic, the Company granted short term loan concessions and/or modifications within the terms of this guidance to 595 borrowers.

Of those loans, 351 remained on the books with an aggregate principal balance of $103.2 million as of March 31, 2022.

New TDRs, by portfolio segment, during the periods presented were as follows:

Three months ended September 30, 2021

Nine months ended September 30, 2021

Three months ended March 31, 2022

Residential real estate - 1st lien

Year ended December 31, 2021

Commercial & industrial

Commercial real estate

Year ended December 31, 2020

Residential real estate – 1st lien

Three months ended September 30, 2020

Nine months ended September 30, 2020

Residential real estate

The TDRs for which there was a payment default during the twelve month periods presented below were as follows:

For the twelve months ended September 30, 2021

Three months ended March 31, 2021

Commercial & industrial

The TDRs for which there was a payment default during the twelve month periods presented below were as follows:

For the twelve months ended March 31, 2022

Commercial real estate

For the twelve months ended December 31, 2021

Residential real estate - 1st lien

For the twelve months ended September 30, 2020

Commercial & industrial

Commercial real estate

For the twelve months ended March 31, 2021

Commercial & industrial

Residential real estate - 1st lien

Residential real estate - Jr lien

TDRs are treated as other impaired loans and carry individual specific reserves with respect to the calculation of the ALL.

2 unchanged sentences

The specific allowances within the ALL related to TDRs as of the balance sheet dates are presented in the table below.

September 30,

Specific Allocation

49 unchanged sentences

There were no Level 3 assets or liabilities measured on a recurring basis as of the balance sheet dates presented, nor were there any transfers of assets between Levels during either 2022 or 2021.

September 30,

(market approach)

1 unchanged sentence

GSE debt securities

Taxable Municipal securities

Tax-Exempt Municipal securities

Other investments

Level 2 Total

$ 148,126,167

$ 150,301,418

$ 185,755,566

$ 182,342,459

Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis

3 unchanged sentences

There were no Level 1 or Level 3 assets or liabilities measured on a non-recurring basis as of the balance sheet dates presented, nor were there any transfers of assets between levels during either 2022 or 2021.

September 30,

(market approach)

12 unchanged sentences

The estimated fair values of the Company’s financial instruments as of the balance sheet dates were as follows:

September 30, 2021

March 31, 2022

(Dollars in Thousands)

43 unchanged sentences

The following table shows the changes in the carrying amount of the MSRs, included in other assets in the consolidated balance sheets, for the periods indicated:

Nine Months Ended

September 30, 2021

Three Months Ended

March 31, 2022

December 31, 2021

9 unchanged sentences

The Company has evaluated events and transactions through the date that the financial statements were issued for potential recognition or disclosure in these financial statements, as required by GAAP.

On September 23, 2021, the Company’s Board declared a cash dividend of $ 0.22 per common share, payable November 1, 2021 to shareholders of record as of October 15, 2021.

On March 16, 2022, the Company’s Board declared a cash dividend of $ 0.23 per common share, payable May 1, 2022 to shareholders of record as of April 15, 2022.

This dividend has been recorded in the Company’s consolidated financial statements as of the declaration date, including shares issuable under the DRIP.

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